UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): May 15, 2024
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. employer identification no.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
Registrant’s telephone number, including area code: (212 ) 270-6000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 7.01 Regulation FD Disclosure
JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) is furnishing this Current Report on Form 8-K to provide supplemental financial information reflecting the reorganization of the Firm's reportable business segments that became effective in the second quarter of 2024, resulting in:
•The combination of the Corporate & Investment Bank and Commercial Banking business segments to form one segment called Commercial & Investment Bank ("CIB"); and
•No impact to the Firm’s other segments.
The information contained in this Current Report on Form 8-K is being furnished pursuant to Regulation FD in order to assist investors in understanding how the Firm's business segment results would have been presented in previously-filed reports had the Firm's activities been organized for management reporting purposes in the manner in which the Firm's business segments are being managed commencing in the second quarter of 2024. This Current Report on Form 8-K includes only the financial information affected by the reorganization, does not represent a restatement of previously-issued financial statements, and had no effect on the Firm’s previously-reported consolidated financial information.
A copy of the supplemental financial information is attached hereto as Exhibit 99.1. This information is being furnished pursuant to Item 7.01 and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities under that Section. Furthermore, the information contained in Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Firm under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
| Exhibit No. | Description of Exhibit | |||||||
| 99.1 | ||||||||
| 101 | Pursuant to Rule 406 of Regulation S-T, the cover page is formatted in Inline XBRL (Inline eXtensible Business Reporting Language). | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101). | |||||||
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| JPMorgan Chase & Co. | ||
| (Registrant) | ||
| By: | /s/ Elena Korablina | ||||
Elena Korablina | |||||
Managing Director and Firmwide Controller | |||||
(Principal Accounting Officer) | |||||
| Dated: | May 15, 2024 | ||||
3
Exhibit 99.1
SUPPLEMENTAL FINANCIAL INFORMATION
(Related to the Reportable Business Segment Reorganization)
FIVE QUARTER TREND THROUGH 1Q24
AND FULL YEAR 2023 & 2022
| JPMORGAN CHASE & CO. | | |||||||||||||||||||||||||
| TABLE OF CONTENTS | ||||||||||||||||||||||||||
| Page(s) | ||||||||||||||||||||||||||
Summary of the Reportable Business Segment Reorganization | 2 | |||||||||||||||||||||||||
| Business Segment Results - Managed Basis (a) | ||||||||||||||||||||||||||
| Commercial & Investment Bank (“CIB”) | 3-6 | |||||||||||||||||||||||||
| Non-GAAP Financial Measures | 7 | |||||||||||||||||||||||||
(a) Refer to page 7 for a further discussion of managed basis.
| JPMORGAN CHASE & CO. | | |||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF THE REPORTABLE BUSINESS SEGMENT REORGANIZATION | ||||||||||||||||||||||||||||||||||||||||||||
JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) is furnishing this supplemental financial information reflecting the reorganization of the Firm’s reportable business segments that became effective in the second quarter of 2024, resulting in:
•The combination of the Corporate & Investment Bank and Commercial Banking business segments to form one segment called Commercial & Investment Bank (“CIB”); and
•No impact to the Firm’s other segments.
The following table provides a summary of the Firm’s impacted business segments prior to and after the reorganization.
The pages that follow provide supplemental financial information in order to assist investors in understanding how the Firm’s business segment results would have been presented in previously-filed reports had the Firm’s activities been organized for management reporting purposes in the manner in which the Firm’s business segments are being managed commencing in the second quarter of 2024. Only the financial information of the newly combined CIB is included in this document as the other segments were not impacted.
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| JPMORGAN CHASE & CO. | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL & INVESTMENT BANK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except ratio data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| QUARTERLY TRENDS | FULL YEAR | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q24 Change | 2023 Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q24 | 4Q23 | 3Q23 | 2Q23 | 1Q23 | 4Q23 | 1Q23 | 2023 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INCOME STATEMENT | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| REVENUE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment banking fees | $ | 2,014 | $ | 1,667 | $ | 1,729 | $ | 1,569 | $ | 1,666 | 21 | % | 21 | % | $ | 6,631 | $ | 6,977 | (5) | % | |||||||||||||||||||||||||||||||||||||||||||||
| Principal transactions | 6,634 | 3,649 | 5,971 | 6,742 | 7,432 | 82 | (11) | 23,794 | 19,792 | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lending- and deposit-related fees | 973 | 909 | 966 | 782 | 766 | 7 | 27 | 3,423 | 3,662 | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commissions and other fees | 1,272 | 1,208 | 1,184 | 1,238 | 1,249 | 5 | 2 | 4,879 | 5,113 | (5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Card income | 525 | 552 | 572 | 601 | 488 | (5) | 8 | 2,213 | 1,934 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| All other income | 743 | 1,041 | 420 | 705 | 703 | (29) | 6 | 2,869 | 2,060 | 39 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest revenue | 12,161 | 9,026 | 10,842 | 11,637 | 12,304 | 35 | (1) | 43,809 | 39,538 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income | 5,423 | 5,948 | 4,919 | 4,870 | 4,807 | (9) | 13 | 20,544 | 20,097 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL NET REVENUE (a) | 17,584 | 14,974 | 15,761 | 16,507 | 17,111 | 17 | 3 | 64,353 | 59,635 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for credit losses | 1 | 576 | (95) | 1,135 | 475 | (100) | (100) | 2,091 | 2,426 | (14) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NONINTEREST EXPENSE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Compensation expense | 4,896 | 4,107 | 4,155 | 4,117 | 4,726 | 19 | 4 | 17,105 | 16,214 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncompensation expense | 3,828 | 4,062 | 4,663 | 4,077 | 4,065 | (6) | (6) | 16,867 | 15,855 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL NONINTEREST EXPENSE | 8,724 | 8,169 | 8,818 | 8,194 | 8,791 | 7 | (1) | 33,972 | 32,069 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income tax expense | 8,859 | 6,229 | 7,038 | 7,178 | 7,845 | 42 | 13 | 28,290 | 25,140 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income tax expense | 2,237 | 2,052 | 2,011 | 1,878 | 2,077 | 9 | 8 | 8,018 | 6,002 | 34 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| NET INCOME | $ | 6,622 | $ | 4,177 | $ | 5,027 | $ | 5,300 | $ | 5,768 | 59 | 15 | $ | 20,272 | $ | 19,138 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCIAL RATIOS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ROE | 20 | % | 11 | % | 14 | % | 15 | % | 17 | % | 14 | % | 14 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Overhead ratio | 50 | 55 | 56 | 50 | 51 | 53 | 54 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Compensation expense as percentage of total net revenue | 28 | 27 | 26 | 25 | 28 | 27 | 27 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| REVENUE BY BUSINESS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Banking | $ | 2,216 | $ | 1,783 | $ | 1,818 | $ | 1,687 | $ | 1,788 | 24 | 24 | $ | 7,076 | $ | 7,205 | (2) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Lending | 1,724 | 1,763 | 1,934 | 1,749 | 1,450 | (2) | 19 | 6,896 | 5,882 | 17 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Payments | 4,466 | 4,456 | 4,217 | 4,714 | 4,431 | — | 1 | 17,818 | 13,490 | 32 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | (3) | 36 | 24 | 38 | 9 | NM | NM | 107 | 244 | (56) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Banking & Payments | 8,403 | 8,038 | 7,993 | 8,188 | 7,678 | 5 | 9 | 31,897 | 26,821 | 19 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed Income Markets | 5,327 | 4,068 | 4,548 | 4,608 | 5,753 | 31 | (7) | 18,977 | 18,784 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity Markets | 2,686 | 1,779 | 2,069 | 2,454 | 2,685 | 51 | — | 8,987 | 10,378 | (13) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities Services | 1,183 | 1,191 | 1,212 | 1,221 | 1,148 | (1) | 3 | 4,772 | 4,488 | 6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Adjustments & Other (b) | (15) | (102) | (61) | 36 | (153) | 85 | 90 | (280) | (836) | 67 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Markets & Securities Services | 9,181 | 6,936 | 7,768 | 8,319 | 9,433 | 32 | (3) | 32,456 | 32,814 | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL NET REVENUE | $ | 17,584 | $ | 14,974 | $ | 15,761 | $ | 16,507 | $ | 17,111 | 17 | 3 | $ | 64,353 | $ | 59,635 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||
Banking & Payments revenue by client coverage segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Corporate Banking & Global Investment Banking (c) | $ | 5,820 | $ | 5,415 | $ | 5,469 | $ | 5,452 | $ | 5,364 | 7 | % | 9 | % | $ | 21,700 | $ | 19,325 | 12 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Commercial Banking (d) | 2,837 | 2,949 | 2,874 | 2,801 | 2,426 | (4) | 17 | 11,050 | 7,906 | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Middle Market Banking | 1,927 | 2,010 | 1,949 | 1,996 | 1,785 | (4) | 8 | $ | 7,740 | $ | 5,443 | 42 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Real Estate Banking | 910 | 939 | 925 | 805 | 641 | (3) | 42 | 3,310 | 2,463 | 34 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other (e) | (254) | (326) | (350) | (65) | (112) | 22 | (127) | (853) | (410) | (108) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Banking & Payments revenue | $ | 8,403 | $ | 8,038 | $ | 7,993 | $ | 8,188 | $ | 7,678 | 5 | 9 | $ | 31,897 | $ | 26,821 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||
(a)Included tax equivalent adjustments primarily from income tax credits from investments in alternative energy, affordable housing and new markets, income from tax-exempt securities and loans, as well as the related amortization and other tax benefits of the investments in alternative energy and affordable housing of $557 million, $1.3 billion, $746 million, $1.0 billion and $921 million for the three months ended March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, respectively, and $4.0 billion and $3.3 billion for the full year 2023 and 2022, respectively. Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 5 and 13 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024, for further information.
(b)Consists primarily of centrally managed credit valuation adjustments (“CVA”), funding valuation adjustments (“FVA”) on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.
(c)Global Corporate Banking & Global Investment Banking provides banking products and services generally to large corporations, financial institutions and merchants.
(d)Commercial Banking provides banking products and services generally to middle market clients, including start-ups, small and midsized companies, local governments, municipalities, and nonprofits, as well as to commercial real estate clients.
(e)Other includes amounts related to credit protection purchased against certain retained loans and lending-related commitments in Lending, the impact of equity investments in Payments and balances not aligned with a primary client coverage segment.
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| JPMORGAN CHASE & CO. | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL & INVESTMENT BANK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions, except ratio and employee data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| QUARTERLY TRENDS | FULL YEAR | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q24 Change | 2023 Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q24 | 4Q23 | 3Q23 | 2Q23 | 1Q23 | 4Q23 | 1Q23 | 2023 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SELECTED BALANCE SHEET DATA (period-end) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 1,898,251 | $ | 1,638,493 | $ | 1,746,598 | $ | 1,737,334 | $ | 1,697,418 | 16 | % | 12 | % | $ | 1,638,493 | $ | 1,591,402 | 3 | % | |||||||||||||||||||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans retained | 475,454 | 475,186 | 475,644 | 476,574 | 425,885 | — | 12 | 475,186 | 421,521 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans held-for-sale and loans at fair value (a) | 40,746 | 39,464 | 39,984 | 40,499 | 39,873 | 3 | 2 | 39,464 | 43,011 | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | 516,200 | 514,650 | 515,628 | 517,073 | 465,758 | — | 11 | 514,650 | 464,532 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity | 132,000 | 138,000 | 138,000 | 138,000 | 136,500 | (4) | (3) | 138,000 | 128,000 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking & Payments loans by client coverage segment (period-end) (b) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Corporate Banking & Global Investment Banking | $ | 129,179 | $ | 128,097 | $ | 130,133 | $ | 133,535 | $ | 132,646 | 1 | (3) | $ | 128,097 | $ | 128,165 | — | ||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Banking | 223,474 | 221,550 | 222,368 | 222,782 | 181,911 | 1 | 23 | 221,550 | 180,624 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Middle Market Banking | 79,207 | 78,043 | 78,955 | 79,885 | 73,329 | 1 | 8 | 78,043 | 72,625 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Real Estate Banking | 144,267 | 143,507 | 143,413 | 142,897 | 108,582 | 1 | 33 | 143,507 | 107,999 | 33 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 588 | 526 | 291 | 371 | 123 | 12 | 378 | 526 | 122 | 331 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Banking & Payments loans | 353,241 | 350,173 | 352,792 | 356,688 | 314,680 | 1 | 12 | 350,173 | 308,911 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SELECTED BALANCE SHEET DATA (average) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 1,794,118 | $ | 1,703,717 | $ | 1,725,146 | $ | 1,752,732 | $ | 1,685,130 | 5 | 6 | $ | 1,716,755 | $ | 1,649,358 | 4 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Trading assets - debt and equity instruments | 580,899 | 490,268 | 522,843 | 533,092 | 488,796 | 18 | 19 | 508,792 | 405,948 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Trading assets - derivative receivables | 57,268 | 62,481 | 65,800 | 63,118 | 64,044 | (8) | (11) | 63,862 | 77,822 | (18) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans retained | 471,187 | 473,879 | 475,285 | 459,244 | 422,380 | (1) | 12 | 457,886 | 395,015 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans held-for-sale and loans at fair value (a) | 43,537 | 40,415 | 40,605 | 38,858 | 43,724 | 8 | — | 40,891 | 48,196 | (15) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total loans | 514,724 | 514,294 | 515,890 | 498,102 | 466,104 | — | 10 | 498,777 | 443,211 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deposits | 1,045,788 | 1,032,226 | 988,765 | 998,014 | 965,529 | 1 | 8 | 996,295 | 1,033,880 | (4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity | 132,000 | 138,000 | 138,000 | 137,505 | 136,500 | (4) | (3) | 137,507 | 128,000 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Banking & Payments loans by client coverage segment (average) (b) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Corporate Banking & Global Investment Banking | $ | 127,403 | $ | 130,287 | $ | 132,394 | $ | 131,852 | $ | 130,375 | (2) | (2) | $ | 131,230 | $ | 122,174 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Banking | 222,323 | 222,057 | 221,729 | 211,431 | 181,173 | — | 23 | 209,244 | 173,289 | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Middle Market Banking | 78,364 | 78,601 | 78,774 | 78,037 | 73,030 | — | 7 | 77,130 | 67,830 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commercial Real Estate Banking | 143,959 | 143,456 | 142,955 | 133,394 | 108,143 | — | 33 | 132,114 | 105,459 | 25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | 590 | 449 | 435 | 227 | 209 | 31 | 182 | 331 | 168 | 97 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Banking & Payments loans | 350,316 | 352,793 | 354,558 | 343,510 | 311,757 | (1) | 12 | 340,805 | 295,631 | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employees | 92,478 | 92,271 | 92,181 | 90,813 | 89,378 | — | 3 | 92,271 | 88,139 | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a)Loans held-for-sale and loans at fair value primarily reflect lending-related positions originated and purchased in Markets, including loans held for securitization.
(b)Refer to page 3 for the definition of client coverage segments.
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| JPMORGAN CHASE & CO. | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL & INVESTMENT BANK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except ratio data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| QUARTERLY TRENDS | FULL YEAR | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q24 Change | 2023 Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q24 | 4Q23 | 3Q23 | 2Q23 | 1Q23 | 4Q23 | 1Q23 | 2023 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CREDIT DATA AND QUALITY STATISTICS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs/(recoveries) | $ | 69 | $ | 247 | $ | 98 | $ | 156 | $ | 87 | (72) | (21) | $ | 588 | $ | 166 | 254 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Nonperforming assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual loans retained (a) | 2,146 | 1,675 | 1,867 | 1,992 | 1,750 | 28 | 23 | 1,675 | 1,484 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual loans held-for-sale and loans at fair value (b) | 1,093 | 828 | 825 | 818 | 808 | 32 | 35 | 828 | 848 | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total nonaccrual loans | 3,239 | 2,503 | 2,692 | 2,810 | 2,558 | 29 | 27 | 2,503 | 2,332 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative receivables | 293 | 364 | 293 | 286 | 291 | (20) | 1 | 364 | 296 | 23 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets acquired in loan satisfactions | 159 | 169 | 173 | 133 | 86 | (6) | 85 | 169 | 87 | 94 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total nonperforming assets | 3,691 | 3,036 | 3,158 | 3,229 | 2,935 | 22 | 26 | 3,036 | 2,715 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan losses | 7,291 | 7,326 | 7,135 | 7,260 | 6,020 | — | 21 | 7,326 | 5,616 | 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for lending-related commitments | 1,785 | 1,849 | 1,940 | 2,008 | 2,267 | (3) | (21) | 1,849 | 2,278 | (19) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total allowance for credit losses | 9,076 | 9,175 | 9,075 | 9,268 | 8,287 | (1) | 10 | 9,175 | 7,894 | 16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net charge-off/(recovery) rate (c) | 0.06 | % | 0.21 | % | 0.08 | % | 0.14 | % | 0.08 | % | 0.13 | % | 0.04 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan losses to period-end loans retained | 1.53 | 1.54 | 1.50 | 1.52 | 1.41 | 1.54 | 1.33 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan losses to nonaccrual loans retained (a) | 340 | 437 | 382 | 364 | 344 | 437 | 378 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual loans to total period-end loans | 0.63 | 0.49 | 0.52 | 0.54 | 0.55 | 0.49 | 0.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a)Allowance for loan losses of $375 million, $251 million, $346 million, $350 million and $323 million were held against these nonaccrual loans at March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, respectively, and $251 million and $257 million at December 31, 2023 and 2022, respectively.
(b)At March 31, 2024, December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $50 million, $59 million, $65 million, $76 million and $99 million, respectively, and $59 million and $115 million at December 31, 2023 and 2022, respectively. These amounts have been excluded based upon the government guarantee.
(c)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
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| JPMORGAN CHASE & CO. | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| COMMERCIAL & INVESTMENT BANK | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except where otherwise noted) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| QUARTERLY TRENDS | FULL YEAR | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q24 Change | 2023 Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q24 | 4Q23 | 3Q23 | 2Q23 | 1Q23 | 4Q23 | 1Q23 | 2023 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BUSINESS METRICS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Advisory | $ | 598 | $ | 751 | $ | 767 | $ | 540 | $ | 756 | (20) | % | (21) | % | $ | 2,814 | $ | 3,051 | (8) | % | |||||||||||||||||||||||||||||||||||||||||||||
| Equity underwriting | 355 | 324 | 274 | 318 | 235 | 10 | 51 | 1,151 | 1,034 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt underwriting | 1,061 | 592 | 688 | 711 | 675 | 79 | 57 | 2,666 | 2,892 | (8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total investment banking fees | $ | 2,014 | $ | 1,667 | $ | 1,729 | $ | 1,569 | $ | 1,666 | 21 | 21 | $ | 6,631 | $ | 6,977 | (5) | ||||||||||||||||||||||||||||||||||||||||||||||||
| Client deposits and other third-party liabilities (average) (a) | 931,603 | 928,561 | 900,292 | 922,702 | 899,700 | — | 4 | 912,859 | 981,653 | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets under custody (“AUC”) (period-end) (in billions) | $ | 33,985 | $ | 32,392 | $ | 29,725 | $ | 30,424 | $ | 29,725 | 5 | 14 | $ | 32,392 | $ | 28,635 | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||
| 95% Confidence Level - Total CIB VaR (average) (b) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CIB trading VaR by risk type: (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fixed income | $ | 35 | $ | 35 | $ | 49 | $ | 57 | $ | 56 | — | (38) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Foreign exchange | 13 | 10 | 17 | 12 | 10 | 30 | 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equities | 6 | 5 | 7 | 8 | 7 | 20 | (14) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commodities and other | 7 | 8 | 10 | 12 | 15 | (13) | (53) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diversification benefit to CIB trading VaR (d) | (29) | (29) | (48) | (48) | (44) | — | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CIB trading VaR (c) | 32 | 29 | 35 | 41 | 44 | 10 | (27) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Portfolio VaR (e) | 24 | 16 | 15 | 14 | 11 | 50 | 118 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diversification benefit to CIB VaR (d) | (15) | (13) | (12) | (11) | (10) | (15) | (50) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| CIB VaR | $ | 41 | $ | 32 | $ | 38 | $ | 44 | $ | 45 | 28 | (9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(a)Client deposits and other third-party liabilities pertain to the Payments and Securities Services businesses.
(b)The impact of the business segment reorganization was not material to Total CIB VaR. Prior periods have not been revised.
(c)CIB trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in CIB, including credit spread sensitivity to CVA. Refer to VaR measurement on pages 137–139 of the Firm’s 2023 Form 10-K for further information.
(d)Diversification benefit represents the difference between the portfolio VaR and the sum of its individual components. This reflects the non-additive nature of VaR due to imperfect correlation across CIB risks.
(e)Credit Portfolio VaR includes the derivative CVA, hedges of the CVA and credit protection purchased against certain retained loans and lending-related commitments, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value. In line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also removed to maintain consistency. This exposure is now reflected in other sensitivity-based measures.
Page 6
| JPMORGAN CHASE & CO. | | |||||||||||||||||||||||||||||||||||||||||||
| NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP Financial Measures
(a)In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. The Firm’s definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm and each of the segments on a fully taxable-equivalent basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These financial measures allow management to assess the comparability of revenue from year-to-year arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by its lines of business.
In addition to reviewing net interest income (“NII”), net yield, and noninterest revenue (“NIR”) on a managed basis, management also reviews these metrics excluding Markets, which is composed of Fixed Income Markets and Equity Markets, as shown below. Markets revenue consists of principal transactions, fees, commissions and other income, as well as net interest income. These metrics, which exclude Markets, are non-GAAP financial measures. Management reviews these metrics to assess the performance of the Firm’s lending, investing (including asset-liability management) and deposit-raising activities, apart from any volatility associated with Markets activities. In addition, management also assesses Markets business performance on a total revenue basis as offsets may occur across revenue lines. For example, securities that generate net interest income may be risk-managed by derivatives that are reflected at fair value in principal transactions revenue. Management believes these measures provide investors and analysts with alternative measures to analyze the revenue trends of the Firm. For additional information on Markets revenue, refer to page 75 of the Firm’s 2023 Form 10-K.
| QUARTERLY TRENDS | FULL YEAR | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1Q24 Change | 2023 Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (in millions, except rates) | 1Q24 | 4Q23 | 3Q23 | 2Q23 | 1Q23 | 4Q23 | 1Q23 | 2023 | 2022 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income - reported | $ | 23,082 | $ | 24,051 | $ | 22,726 | $ | 21,779 | $ | 20,711 | (4) | % | 11 | % | $ | 89,267 | $ | 66,710 | 34 | % | ||||||||||||||||||||||||||||||||||||||||||
| Fully taxable-equivalent adjustments | 121 | 126 | 130 | 104 | 120 | (4) | 1 | 480 | 434 | 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income - managed basis (a) | $ | 23,203 | $ | 24,177 | $ | 22,856 | $ | 21,883 | $ | 20,831 | (4) | 11 | $ | 89,747 | $ | 67,144 | 34 | |||||||||||||||||||||||||||||||||||||||||||||
| Less: Markets net interest income | 183 | 615 | (317) | (487) | (105) | (70) | NM | (294) | 4,789 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest income excluding Markets (a) | $ | 23,020 | $ | 23,562 | $ | 23,173 | $ | 22,370 | $ | 20,936 | (2) | 10 | $ | 90,041 | $ | 62,355 | 44 | |||||||||||||||||||||||||||||||||||||||||||||
| Average interest-earning assets | $ | 3,445,515 | $ | 3,408,395 | $ | 3,331,728 | $ | 3,343,780 | $ | 3,216,757 | 1 | 7 | $ | 3,325,708 | $ | 3,349,079 | (1) | |||||||||||||||||||||||||||||||||||||||||||||
Less: Average Markets interest-earning assets | 1,031,075 | 985,997 | 970,789 | 1,003,877 | 982,572 | 5 | 5 | 985,777 | 953,195 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Average interest-earning assets excluding Markets | $ | 2,414,440 | $ | 2,422,398 | $ | 2,360,939 | $ | 2,339,903 | $ | 2,234,185 | — | 8 | $ | 2,339,931 | $ | 2,395,884 | (2) | |||||||||||||||||||||||||||||||||||||||||||||
| Net yield on average interest-earning assets - managed basis | 2.71 | % | 2.81 | % | 2.72 | % | 2.62 | % | 2.63 | % | 2.70 | % | 2.00 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Net yield on average Markets interest-earning assets | 0.07 | 0.25 | (0.13) | (0.19) | (0.04) | (0.03) | 0.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net yield on average interest-earning assets excluding Markets | 3.83 | 3.86 | 3.89 | 3.83 | 3.80 | 3.85 | 2.60 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest revenue - reported (b) | $ | 18,852 | $ | 14,523 | $ | 17,148 | $ | 19,528 | $ | 17,638 | 30 | 7 | $ | 68,837 | $ | 61,985 | 11 | |||||||||||||||||||||||||||||||||||||||||||||
| Fully taxable-equivalent adjustments (b) | 493 | 1,243 | 682 | 990 | 867 | (60) | (43) | 3,782 | 3,148 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest revenue - managed basis | $ | 19,345 | $ | 15,766 | $ | 17,830 | $ | 20,518 | $ | 18,505 | 23 | 5 | $ | 72,619 | $ | 65,133 | 11 | |||||||||||||||||||||||||||||||||||||||||||||
| Less: Markets noninterest revenue (c) | 7,830 | 5,232 | 6,934 | 7,549 | 8,543 | 50 | (8) | 28,258 | 24,373 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noninterest revenue excluding Markets | $ | 11,515 | $ | 10,534 | $ | 10,896 | $ | 12,969 | $ | 9,962 | 9 | 16 | $ | 44,361 | $ | 40,760 | 9 | |||||||||||||||||||||||||||||||||||||||||||||
| Memo: Markets total net revenue | $ | 8,013 | $ | 5,847 | $ | 6,617 | $ | 7,062 | $ | 8,438 | 37 | (5) | $ | 27,964 | $ | 29,162 | (4) | |||||||||||||||||||||||||||||||||||||||||||||
(a) Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
(b) Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, under the modified retrospective method. Refer to Notes 1, 5 and 13 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024, for further information.
(c) Includes the markets-related revenues of the former Commercial Banking business segment.
Page 7