EARNINGS RELEASE FINANCIAL SUPPLEMENT

THIRD QUARTER 2019

JPMORGAN CHASE & CO.

TABLE OF CONTENTS

Consolidated Results

Page(s)

Consolidated Financial Highlights

2-3

Consolidated Statements of Income

4

Consolidated Balance Sheets

5

Condensed Average Balance Sheets and Annualized Yields

6

Reconciliation from Reported to Managed Basis

7

Segment Results - Managed Basis

8

Capital and Other Selected Balance Sheet Items

9

Earnings Per Share and Related Information

10

Business Segment Results

Consumer & Community Banking ("CCB")

11-14

Corporate & Investment Bank ("CIB")

15-17

Commercial Banking ("CB")

18-19

Asset & Wealth Management ("AWM")

20-22

Corporate

23

Credit-Related Information

24-27

Non-GAAP Financial Measures and Key Performance Measures

28

Glossary of Terms and Acronyms (a)

  1. Refer to the Glossary of Terms and Acronyms on pages 293-299 of JPMorgan Chase & Co.'s (the "Firm's") Annual Report on Form 10-K for the year ended December 31, 2018 (the "2018 Form 10-K") and the Glossary of Terms and Acronyms and Line of Business Metrics on pages 168-172 and pages 173-175, respectively, of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019.

JPMORGAN CHASE & CO.

CONSOLIDATED FINANCIAL HIGHLIGHTS (in millions, except per share and ratio data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

SELECTED INCOME STATEMENT DATA

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

Reported Basis

Total net revenue

$

29,341

$

28,832

$

29,123

$

26,109

$

27,260

2%

8%

$

87,296

$

82,920

5%

Total noninterest expense

16,422

16,341

16,395

15,720

15,623

-

5

49,158

47,674

3

Pre-provision profit

12,919

12,491

12,728

10,389

11,637

3

11

38,138

35,246

8

Provision for credit losses

1,514

1,149

1,495

1,548

948

32

60

4,158

3,323

25

NET INCOME

9,080

9,652

9,179

7,066

8,380

(6)

8

27,911

25,408

10

Managed Basis (a)

Total net revenue

30,064

29,566

29,851

26,804

27,822

2

8

89,481

84,730

6

Total noninterest expense

16,422

16,341

16,395

15,720

15,623

-

5

49,158

47,674

3

Pre-provision profit

13,642

13,225

13,456

11,084

12,199

3

12

40,323

37,056

9

Provision for credit losses

1,514

1,149

1,495

1,548

948

32

60

4,158

3,323

25

NET INCOME

9,080

9,652

9,179

7,066

8,380

(6)

8

27,911

25,408

10

EARNINGS PER SHARE DATA

Net income:

Basic

$

2.69

$

2.83

$

2.65

$

1.99

$

2.35

(5)

14

$

8.17

$

7.04

16

Diluted

2.68

2.82

2.65

1.98

2.34

(5)

15

8.15

7.00

16

Average shares:

Basic

3,198.5

3,250.6

3,298.0

3,335.8

3,376.1

(2)

(5)

3,248.7

3,416.5

(5)

Diluted

3,207.2

3,259.7

3,308.2

3,347.3

3,394.3

(2)

(6)

3,258.0

3,436.2

(5)

MARKET AND PER COMMON SHARE DATA

Market capitalization

$

369,133

$

357,479

$

328,387

$

319,780

$

375,239

3

(2)

$

369,133

$

375,239

(2)

Common shares at period-end

3,136.5

3,197.5

3,244.0

3,275.8

3,325.4

(2)

(6)

3,136.5

3,325.4

(6)

Book value per share

75.24

73.88

71.78

70.35

69.52

2

8

75.24

69.52

8

Tangible book value per share ("TBVPS") (b)

60.48

59.52

57.62

56.33

55.68

2

9

60.48

55.68

9

Cash dividends declared per share

0.90

(e)

0.80

0.80

0.80

0.80

13

13

2.50

1.92

30

FINANCIAL RATIOS (c)

Return on common equity ("ROE")

15%

16%

16%

12%

14%

15%

14%

Return on tangible common equity ("ROTCE") (b)

18

20

19

14

17

19

18

Return on assets

1.30

1.41

1.39

1.06

1.28

1.37

1.31

CAPITAL RATIOS

Common equity Tier 1 ("CET1") capital ratio (d)

12.3%

(f)

12.2%

12.1%

12.0%

12.0%

12.3%

(f)

12.0%

Tier 1 capital ratio (d)

14.1

(f)

14.0

13.8

13.7

13.6

14.1

(f)

13.6

Total capital ratio (d)

15.9

(f)

15.8

15.7

15.5

15.4

15.9

(f)

15.4

Tier 1 leverage ratio (d)

7.9

(f)

8.0

8.1

8.1

8.2

7.9

(f)

8.2

Supplementary leverage ratio ("SLR")

6.3

(f)

6.4

6.4

6.4

6.5

6.3

(f)

6.5

  1. For a further discussion of managed basis, refer to Reconciliation from Reported to Managed Basis on page 7.
  2. TBVPS and ROTCE are each non-GAAP financial measures. TBVPS represents tangible common equity ("TCE") divided by common shares at period-end. ROTCE measures the Firm's net income applicable to common equity as a percentage of average TCE. TCE is also a non-GAAP financial measure; for a reconciliation of common stockholders' equity to TCE, refer to page 9. For a further discussion of these measures, refer to page 28.
  3. Quarterly ratios are based upon annualized amounts.
  4. The Basel III capital rules became fully phased-in effective January 1, 2019. During 2018, the required capital measures were subject to the transitional rules and as of December 31, 2018 and September 30, 2018, were the same on a fully phased-in and on a transitional basis. For additional information, refer to Key performance measures on page 59 and Capital Risk Management on pages 85-94 of the Firm's 2018 Form 10-K and pages 44-48 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019.
  5. On September 17, 2019, the Board of Directors declared a quarterly common stock dividend of $0.90 per share.
  6. Estimated.

Page 2

JPMORGAN CHASE & CO.

CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED (in millions, except ratio and headcount data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

SELECTED BALANCE SHEET DATA (period-end)

Total assets

$

2,764,661

$

2,727,379

$

2,737,188

$

2,622,532

$

2,615,183

1%

6%

$

2,764,661

$

2,615,183

6%

Loans:

Consumer, excluding credit card loans

336,630

352,722

363,914

373,732

376,062

(5)

(10)

336,630

376,062

(10)

Credit card loans

159,571

157,576

150,527

156,632

147,881

1

8

159,571

147,881

8

Wholesale loans

449,017

446,591

441,804

454,190

430,375

1

4

449,017

430,375

4

Total Loans

945,218

956,889

956,245

984,554

954,318

(1)

(1)

945,218

954,318

(1)

Core loans (a)

899,572

908,971

905,943

931,856

899,006

(1)

-

899,572

899,006

-

Core loans (average) (a)

900,567

905,786

916,567

907,271

894,279

(1)

1

907,581

877,774

3

Deposits:

U.S. offices:

Noninterest-bearing (b)

393,522

394,237

388,572

386,709

388,686

-

1

393,522

388,686

1

Interest-bearing (b)

844,137

841,397

826,723

813,881

800,905

-

5

844,137

800,905

5

Non-U.S. offices:

Noninterest-bearing (b)

21,455

20,419

21,090

21,459

21,438

5

-

21,455

21,438

-

Interest-bearing (b)

266,147

268,308

257,056

248,617

247,733

(1)

7

266,147

247,733

7

Total deposits

1,525,261

1,524,361

1,493,441

1,470,666

1,458,762

-

5

1,525,261

1,458,762

5

Long-term debt

296,472

288,869

290,893

282,031

270,124

3

10

296,472

270,124

10

Common stockholders' equity

235,985

236,222

232,844

230,447

231,192

-

2

235,985

231,192

2

Total stockholders' equity

264,348

263,215

259,837

256,515

258,956

-

2

264,348

258,956

2

Loans-to-deposits ratio

62%

63%

64%

67%

65%

62%

65%

Headcount

257,444

254,983

255,998

256,105

255,313

1

1

257,444

255,313

1

95% CONFIDENCE LEVEL - TOTAL VaR

Average VaR

$

39

$

46

$

52

$

51

$

35

(15)

11

LINE OF BUSINESS NET REVENUE (c)

Consumer & Community Banking

$

14,259

$

13,833

$

13,751

$

13,695

$

13,290

3

7

$

41,843

$

38,384

9

Corporate & Investment Bank

9,338

9,641

9,848

7,237

8,805

(3)

6

28,827

29,211

(1)

Commercial Banking

2,207

2,211

2,338

2,306

2,271

-

(3)

6,756

6,753

-

Asset & Wealth Management

3,568

3,559

3,489

3,439

3,559

-

-

10,616

10,637

-

Corporate

692

322

425

127

(103)

115

NM

1,439

(255)

NM

TOTAL NET REVENUE

$

30,064

$

29,566

$

29,851

$

26,804

$

27,822

2

8

$

89,481

$

84,730

6

LINE OF BUSINESS NET INCOME

Consumer & Community Banking

$

4,273

$

4,174

$

3,963

$

4,028

$

4,086

2

5

$

12,410

$

10,824

15

Corporate & Investment Bank

2,809

2,935

3,251

1,975

2,626

(4)

7

8,995

9,798

(8)

Commercial Banking

937

996

1,053

1,036

1,089

(6)

(14)

2,986

3,201

(7)

Asset & Wealth Management

668

719

661

604

724

(7)

(8)

2,048

2,249

(9)

Corporate

393

828

251

(577)

(145)

(53)

NM

1,472

(664)

NM

NET INCOME

$

9,080

$

9,652

$

9,179

$

7,066

$

8,380

(6)

8

$

27,911

$

25,408

10

  1. Loans considered central to the Firm's ongoing businesses. For further discussion of core loans, refer to page 28.
  2. In the second quarter of 2019, the Firm reclassified balances related to certain structured notes from interest-bearing to noninterest-bearing deposits as the associated returns are recorded in principal transactions revenue and not in net interest income. This change was applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.
  3. For a further discussion of managed basis, refer to Reconciliation from Reported to Managed Basis on page 7.

Page 3

JPMORGAN CHASE & CO.

CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share and ratio data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

REVENUE

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

Investment banking fees

$

1,967

$

1,851

$

1,840

$

1,814

$

1,832

6%

7%

$

5,658

$

5,736

(1)%

Principal transactions

3,449

3,714

4,076

1,361

2,964

(7)

16

11,239

10,698

5

Lending- and deposit-related fees

1,626

1,535

1,482

1,538

1,542

6

5

4,643

4,514

3

Asset management, administration and commissions

4,351

4,353

4,114

4,195

4,310

-

1

12,818

12,923

(1)

Investment securities gains/(losses)

78

44

13

(24)

(46)

77

NM

135

(371)

NM

Mortgage fees and related income

887

279

396

203

262

218

239

1,562

1,051

49

Card income

1,283

1,366

1,274

1,366

1,328

(6)

(3)

3,923

3,623

8

Other income

1,472

1,292

1,475

1,302

1,160

14

27

4,239

4,041

5

Noninterest revenue

15,113

14,434

14,670

11,755

13,352

5

13

44,217

42,215

5

Interest income (a)

21,121

21,603

21,389

20,601

19,439

(2)

9

64,113

55,499

16

Interest expense (a)

6,893

7,205

6,936

6,247

5,531

(4)

25

21,034

14,794

42

Net interest income

14,228

14,398

14,453

14,354

13,908

(1)

2

43,079

40,705

6

TOTAL NET REVENUE

29,341

28,832

29,123

26,109

27,260

2

8

87,296

82,920

5

Provision for credit losses

1,514

1,149

1,495

1,548

948

32

60

4,158

3,323

25

NONINTEREST EXPENSE

Compensation expense

8,583

8,547

8,937

7,809

8,108

-

6

26,067

25,308

3

Occupancy expense

1,110

1,060

1,068

1,069

1,014

5

9

3,238

2,883

12

Technology, communications and equipment expense

2,494

2,378

2,364

2,361

2,219

5

12

7,236

6,441

12

Professional and outside services

2,056

2,212

2,039

2,169

2,086

(7)

(1)

6,307

6,333

-

Marketing

945

862

879

894

798

10

18

2,686

2,396

12

Other expense (b)

1,234

1,282

1,108

1,418

1,398

(4)

(12)

3,624

4,313

(16)

TOTAL NONINTEREST EXPENSE

16,422

16,341

16,395

15,720

15,623

-

5

49,158

47,674

3

Income before income tax expense

11,405

11,342

11,233

8,841

10,689

1

7

33,980

31,923

6

Income tax expense/(benefit)

2,325

1,690

(e)

2,054

1,775

2,309

38

1

6,069

(e)

6,515

(7)

NET INCOME

$

9,080

$

9,652

$

9,179

$

7,066

$

8,380

(6)

8

$

27,911

$

25,408

10

NET INCOME PER COMMON SHARE DATA

Basic earnings per share

$

2.69

$

2.83

$

2.65

$

1.99

$

2.35

(5)

14

$

8.17

$

7.04

16

Diluted earnings per share

2.68

2.82

2.65

1.98

2.34

(5)

15

8.15

7.00

16

FINANCIAL RATIOS

Return on common equity (c)

15%

16%

16%

12%

14%

15%

14%

Return on tangible common equity (c)(d)

18

20

19

14

17

19

18

Return on assets (c)

1.30

1.41

1.39

1.06

1.28

1.37

1.31

Effective income tax rate

20.4

14.9

(e)

18.3

20.1

21.6

17.9

(e)

20.4

Overhead ratio

56

57

56

60

57

56

57

  1. In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect on net interest income. These changes were made to align the accounting treatment between the balance sheet and the related interest income or expense, primarily by offsetting interest income and expense for certain prime brokerage-relatedheld-for-investment customer receivables and payables that are currently presented as a single margin account on the balance sheet. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.
  2. Included Firmwide legal expense/(benefit) of $10 million, $69 million, $(81) million, $(18) million and $20 million for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively; and $(2) million and $90 million for the nine months ended September 30, 2019 and 2018, respectively.
  3. Quarterly ratios are based upon annualized amounts.
  4. For further discussion of ROTCE, refer to page 28.
  5. The three months ended June 30, 2019 and nine months ended September 30, 2019 included income tax benefits of $768 million and $1.0 billion, respectively, due to the resolution of certain tax audits.

Page 4

JPMORGAN CHASE & CO. CONSOLIDATED BALANCE SHEETS (in millions)

Sep 30, 2019

Change

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Sep 30,

2019

2019

2019

2018

2018

2019

2018

ASSETS

Cash and due from banks

$

21,215

$

23,164

$

21,946

$

22,324

$

23,225

(8)%

(9)%

Deposits with banks

235,382

244,874

280,658

256,469

395,872

(4)

(41)

Federal funds sold and securities purchased under

resale agreements

257,391

267,864

299,140

321,588

217,632

(4)

18

Securities borrowed

138,336

130,661

123,186

111,995

122,434

6

13

Trading assets:

Debt and equity instruments

440,298

470,495

483,069

359,501

359,765

(6)

22

Derivative receivables

55,577

52,878

50,333

54,213

60,062

5

(7)

Investment securities

394,251

307,264

267,365

261,828

231,398

28

70

Loans

945,218

956,889

956,245

984,554

954,318

(1)

(1)

Less: Allowance for loan losses

13,235

13,166

13,533

13,445

13,128

1

1

Loans, net of allowance for loan losses

931,983

943,723

942,712

971,109

941,190

(1)

(1)

Accrued interest and accounts receivable

88,988

88,399

72,240

73,200

78,792

1

13

Premises and equipment

25,117

24,665

24,160

(b)

14,934

14,180

2

77

Goodwill, MSRs and other intangible assets

53,078

53,302

54,168

54,349

54,697

-

(3)

Other assets

123,045

120,090

118,211

121,022

115,936

2

6

TOTAL ASSETS

$

2,764,661

$

2,727,379

$

2,737,188

$

2,622,532

$

2,615,183

1

6

LIABILITIES

Deposits

$

1,525,261

$

1,524,361

$

1,493,441

$

1,470,666

$

1,458,762

-

5

Federal funds purchased and securities loaned or sold

under repurchase agreements

247,766

201,683

222,677

182,320

181,608

23

36

Short-term borrowings

48,893

59,890

71,305

69,276

64,635

(18)

(24)

Trading liabilities:

Debt and equity instruments

90,553

106,160

117,904

103,004

109,457

(15)

(17)

Derivative payables

47,790

41,479

39,003

41,769

41,693

15

15

Accounts payable and other liabilities

225,063

216,137

216,173

(b)

196,710

209,707

4

7

Beneficial interests issued by consolidated VIEs

18,515

25,585

25,955

20,241

20,241

(28)

(9)

Long-term debt

296,472

288,869

290,893

282,031

270,124

3

10

TOTAL LIABILITIES

2,500,313

2,464,164

2,477,351

2,366,017

2,356,227

1

6

STOCKHOLDERS' EQUITY

Preferred stock

28,363

(a)

26,993

26,993

26,068

27,764

(c)

5

2

Common stock

4,105

4,105

4,105

4,105

4,105

-

-

Additional paid-in capital

88,512

88,359

88,170

89,162

89,333

-

(1)

Retained earnings

217,888

212,093

205,437

199,202

195,180

3

12

Accumulated other comprehensive income/(loss)

1,800

1,114

(558)

(1,507)

(2,425)

62

NM

Shares held in RSU Trust, at cost

(21)

(21)

(21)

(21)

(21)

-

-

Treasury stock, at cost

(76,299)

(69,428)

(64,289)

(60,494)

(54,980)

(10)

(39)

TOTAL STOCKHOLDERS' EQUITY

264,348

263,215

259,837

256,515

258,956

-

2

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

2,764,661

$

2,727,379

$

2,737,188

$

2,622,532

$

2,615,183

1

6

  1. Included $1.4 billion to be redeemed on October 30, 2019 as previously announced on September 26, 2019.
  2. Effective January 1, 2019, the Firm adopted new accounting guidance that requires lessees to recognize on the Consolidated balance sheets all leases with lease terms greater than twelve months as a lease liability with a corresponding right-of-use ("ROU") asset. Accordingly, the Firm recognized operating lease liabilities in Accounts payable and other liabilities and ROU assets in Premises and equipment of $8.2 billion and $8.1 billion, respectively, predominantly in Corporate and CCB.
  3. Included $1.7 billion, which was redeemed on October 30, 2018.

Page 5

JPMORGAN CHASE & CO.

CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS (in millions, except rates)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

AVERAGE BALANCES

3Q19

2Q19

1Q19

4Q18

3Q18

3Q19 Change

2019

2018

2019 Change

2Q19

3Q18

2018

ASSETS

Deposits with banks

$

267,578

$

289,838

$

290,281

$

364,332

$

408,595

(8)%

(35)%

$

282,483

$

419,392

(33)%

Federal funds sold and securities purchased under

resale agreements

276,721

288,781

288,478

256,258

208,439

(4)

33

284,616

203,969

40

Securities borrowed

139,939

126,157

123,467

120,930

117,057

11

20

129,915

113,112

15

Trading assets - debt instruments (a)

339,198

351,716

322,541

257,733

241,074

(4)

41

337,879

240,404

41

Investment securities

343,134

281,232

259,400

245,020

229,987

22

49

294,896

233,881

26

Loans

947,280

954,854

968,019

961,138

951,724

(1)

-

956,641

939,408

2

All other interest-earning assets (b)

51,304

46,516

46,708

49,038

46,429

10

10

48,193

48,743

(1)

Total interest-earning assets (a)

2,365,154

2,339,094

2,298,894

2,254,449

2,203,305

1

7

2,334,623

2,198,909

6

Trading assets - equity and other instruments (a)

113,980

120,545

108,598

100,655

119,915

(5)

(5)

114,394

124,048

(8)

Trading assets - derivative receivables

57,062

52,659

52,522

59,386

62,075

8

(8)

54,098

61,188

(12)

All other noninterest-earning assets

228,856

226,757

224,700

222,015

214,326

1

7

226,786

215,449

5

TOTAL ASSETS

$

2,765,052

$

2,739,055

$

2,684,714

$

2,636,505

$

2,599,621

1

6

$

2,729,901

$

2,599,594

5

LIABILITIES

Interest-bearing deposits (a)

$

1,123,452

$

1,104,051

$

1,080,274

$

1,061,038

$

1,041,896

2

8

$

1,102,751

$

1,039,646

6

Federal funds purchased and securities loaned or

sold under repurchase agreements

239,698

227,313

209,065

184,684

184,377

5

30

225,471

190,832

18

Short-term borrowings (a)(c)

44,814

58,262

67,074

65,804

52,779

(23)

(15)

56,635

51,349

10

Trading liabilities - debt and other interest-bearing liabilities (a)(d)

183,369

191,655

183,478

182,784

176,795

(4)

4

186,167

176,104

6

Beneficial interests issued by consolidated VIEs

21,123

26,713

22,829

19,982

19,921

(21)

6

23,549

21,449

10

Long-term debt (a)

248,985

246,053

248,302

240,095

241,878

1

3

247,782

244,307

1

Total interest-bearing liabilities (a)

1,861,441

1,854,047

1,811,022

1,754,387

1,717,646

-

8

1,842,355

1,723,687

7

Noninterest-bearing deposits (a)

407,428

408,243

399,468

405,255

410,966

-

(1)

405,075

413,501

(2)

Trading liabilities - equity and other instruments (a)

31,310

30,170

34,734

37,812

36,605

4

(14)

32,059

33,607

(5)

Trading liabilities - derivative payables

45,987

40,233

39,567

43,538

44,810

14

3

41,952

42,919

(2)

All other noninterest-bearing liabilities (a)

155,032

146,343

142,746

139,015

132,903

6

17

148,086

130,755

13

TOTAL LIABILITIES

2,501,198

2,479,036

2,427,537

2,380,007

2,342,930

1

7

2,469,527

2,344,469

5

Preferred stock

28,241

26,993

27,126

26,602

26,252

5

8

27,457

26,130

5

Common stockholders' equity

235,613

233,026

230,051

229,896

230,439

1

2

232,917

228,995

2

TOTAL STOCKHOLDERS' EQUITY

263,854

260,019

257,177

256,498

256,691

1

3

260,374

255,125

2

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

2,765,052

$

2,739,055

$

2,684,714

$

2,636,505

$

2,599,621

1

6

$

2,729,901

$

2,599,594

5

AVERAGE RATES (e)

INTEREST-EARNING ASSETS

Deposits with banks

1.33

%

1.57

%

1.64

%

1.59

%

1.54

%

1.51

%

1.42

%

Federal funds sold and securities purchased under

resale agreements

2.21

2.33

2.32

2.06

1.81

2.29

1.63

Securities borrowed (a)

1.23

1.48

1.30

1.19

0.84

1.34

0.65

Trading assets - debt instruments (a)

3.12

3.34

3.50

3.62

3.57

3.32

3.57

Investment securities

2.92

3.28

3.37

3.32

3.26

3.17

3.20

Loans

5.29

5.36

5.41

5.26

5.11

5.35

4.99

All other interest-earning assets (a)(b)

4.27

4.07

3.98

3.73

4.23

4.11

3.92

Total interest-earning assets (a)

3.56

3.73

3.80

3.65

3.53

3.69

3.40

INTEREST-BEARING LIABILITIES

Interest-bearing deposits (a)

0.85

0.88

0.82

0.73

0.62

0.85

0.52

Federal funds purchased and securities loaned or

sold under repurchase agreements

2.05

2.16

2.15

1.94

1.78

2.12

1.52

Short-term borrowings (a)(c)

2.31

2.49

2.59

2.34

2.17

2.48

1.97

Trading liabilities - debt and other interest-bearing liabilities (a)(d)

1.43

1.60

1.59

1.55

1.39

1.54

1.27

Beneficial interests issued by consolidated VIEs

2.53

2.63

2.66

2.53

2.41

2.61

2.28

Long-term debt (a)

3.49

3.69

3.82

3.58

3.37

3.67

3.18

Total interest-bearing liabilities (a)

1.47

1.56

1.55

1.41

1.28

1.53

1.15

INTEREST RATE SPREAD (a)

2.09

%

2.17

%

2.25

%

2.24

%

2.25

%

2.16

%

2.25

%

NET YIELD ON INTEREST-EARNING ASSETS (a)

2.41

%

2.49

%

2.57

%

2.55

%

2.53

%

2.49

%

2.50

%

Memo: Net yield on interest-earning assets excluding CIB Markets (f)

3.23

%

3.35

%

3.43

%

3.35

%

3.30

%

3.34

%

3.21

%

  1. In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect on net interest income. These changes were made to align the accounting treatment between the balance sheet and the related interest income or expense, primarily by offsetting interest income and expense for certain prime brokerage-relatedheld-for-investment customer receivables and payables that are currently presented as a single margin account on the balance sheet. In addition, the Firm reclassified balances related to certain instruments and structured notes from interest-earning/bearing to noninterest-earning/bearing assets and liabilities as the associated returns are recorded in principal transactions revenue and not in net interest income. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.
  2. Includes prime brokerage-relatedheld-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated Balance Sheets.
  3. Includes commercial paper.
  4. Other interest-bearing liabilities include prime brokerage-related customer payables.
  5. Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
  6. Net yield on interest-earning assets excluding CIB Markets is a non-GAAP financial measure. For further discussion of the net yield on interest-earning assets excluding CIB Markets, refer to page 28.

Page 6

JPMORGAN CHASE & CO.

RECONCILIATION FROM REPORTED TO MANAGED BASIS

(in millions, except ratios)

The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the U.S. ("U.S. GAAP"). That presentation, which is referred to as "reported" basis, provides the reader with an understanding of the Firm's results that can be tracked consistently from year-to-year and enables a comparison of the Firm's performance with other companies' U.S. GAAP financial statements. 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. For additional information on managed basis, refer to the notes on Non-GAAP Financial Measures on page 28.

The following summary table provides a reconciliation from reported U.S. GAAP results to managed basis.

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

OTHER INCOME

Other income - reported

$

1,472

$

1,292

$

1,475

$

Fully taxable-equivalent adjustments (a)

596

596

585

Other income - managed

$

2,068

$

1,888

$

2,060

$

TOTAL NONINTEREST REVENUE

Total noninterest revenue - reported

$

15,113

$

14,434

$

14,670

$

Fully taxable-equivalent adjustments (a)

596

596

585

Total noninterest revenue - managed

$

15,709

$

15,030

$

15,255

$

NET INTEREST INCOME

Net interest income - reported

$

14,228

$

14,398

$

14,453

$

Fully taxable-equivalent adjustments (a)

127

138

143

Net interest income - managed

$

14,355

$

14,536

$

14,596

$

TOTAL NET REVENUE

Total net revenue - reported

$

29,341

$

28,832

$

29,123

$

Fully taxable-equivalent adjustments (a)

723

734

728

Total net revenue - managed

$

30,064

$

29,566

$

29,851

$

PRE-PROVISION PROFIT

Pre-provision profit - reported

$

12,919

$

12,491

$

12,728

$

Fully taxable-equivalent adjustments (a)

723

734

728

Pre-provision profit - managed

$

13,642

$

13,225

$

13,456

$

INCOME BEFORE INCOME TAX EXPENSE

Income before income tax expense - reported

$

11,405

$

11,342

$

11,233

$

Fully taxable-equivalent adjustments (a)

723

734

728

Income before income tax expense - managed

$

12,128

$

12,076

$

11,961

$

INCOME TAX EXPENSE

Income tax expense - reported

$

2,325

$

1,690

$

2,054

$

Fully taxable-equivalent adjustments (a)

723

734

728

Income tax expense - managed

$

3,048

$

2,424

$

2,782

$

OVERHEAD RATIO

Overhead ratio - reported

56

%

57

%

56

%

Overhead ratio - managed

55

55

55

1,302

$

1,160

14%

27%

$

4,239

$

4,041

5%

540

408

-

46

1,777

1,337

33

1,842

$

1,568

10

32

$

6,016

$

5,378

12

11,755

$

13,352

5

13

$

44,217

$

42,215

5

540

408

-

46

1,777

1,337

33

12,295

$

13,760

5

14

$

45,994

$

43,552

6

14,354

$

13,908

(1)

2

$

43,079

$

40,705

6

155

154

(8)

(18)

408

473

(14)

14,509

$

14,062

(1)

2

$

43,487

$

41,178

6

26,109

$

27,260

2

8

$

87,296

$

82,920

5

695

562

(1)

29

2,185

1,810

21

26,804

$

27,822

2

8

$

89,481

$

84,730

6

10,389

$

11,637

3

11

$

38,138

$

35,246

8

695

562

(1)

29

2,185

1,810

21

11,084

$

12,199

3

12

$

40,323

$

37,056

9

8,841

$

10,689

1

7

$

33,980

$

31,923

6

695

562

(1)

29

2,185

1,810

21

9,536

$

11,251

-

8

$

36,165

$

33,733

7

1,775

$

2,309

38

1

$

6,069

$

6,515

(7)

695

562

(1)

29

2,185

1,810

21

2,470

$

2,871

26

6

$

8,254

$

8,325

(1)

60

%

57

%

56

%

57

%

59

56

55

56

  1. Predominantly recognized in CIB, CB and Corporate.

Page 7

JPMORGAN CHASE & CO.

SEGMENT RESULTS - MANAGED BASIS (in millions)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

TOTAL NET REVENUE (fully taxable-equivalent ("FTE"))

Consumer & Community Banking

$

14,259

$

13,833

$

13,751

$

13,695

$

13,290

3%

7%

$

41,843

$

38,384

9%

Corporate & Investment Bank

9,338

9,641

9,848

7,237

8,805

(3)

6

28,827

29,211

(1)

Commercial Banking

2,207

2,211

2,338

2,306

2,271

-

(3)

6,756

6,753

-

Asset & Wealth Management

3,568

3,559

3,489

3,439

3,559

-

-

10,616

10,637

-

Corporate

692

322

425

127

(103)

115

NM

1,439

(255)

NM

TOTAL NET REVENUE

$

30,064

$

29,566

$

29,851

$

26,804

$

27,822

2

8

$

89,481

$

84,730

6

TOTAL NONINTEREST EXPENSE

Consumer & Community Banking

$

7,290

$

7,162

$

7,211

$

7,065

$

6,982

2

4

$

21,663

$

20,770

4

Corporate & Investment Bank

5,348

5,487

5,453

4,681

5,175

(3)

3

16,288

16,237

-

Commercial Banking

881

864

873

845

853

2

3

2,618

2,541

3

Asset & Wealth Management

2,622

2,596

2,647

2,621

2,585

1

1

7,865

7,732

2

Corporate

281

232

211

508

28

21

NM

724

394

84

TOTAL NONINTEREST EXPENSE

$

16,422

$

16,341

$

16,395

$

15,720

$

15,623

-

5

$

49,158

$

47,674

3

PRE-PROVISION PROFIT/(LOSS)

Consumer & Community Banking

$

6,969

$

6,671

$

6,540

$

6,630

$

6,308

4

10

$

20,180

$

17,614

15

Corporate & Investment Bank

3,990

4,154

4,395

2,556

3,630

(4)

10

12,539

12,974

(3)

Commercial Banking

1,326

1,347

1,465

1,461

1,418

(2)

(6)

4,138

4,212

(2)

Asset & Wealth Management

946

963

842

818

974

(2)

(3)

2,751

2,905

(5)

Corporate

411

90

214

(381)

(131)

357

NM

715

(649)

NM

PRE-PROVISION PROFIT

$

13,642

$

13,225

$

13,456

$

11,084

$

12,199

3

12

$

40,323

$

37,056

9

PROVISION FOR CREDIT LOSSES

Consumer & Community Banking

$

1,311

$

1,120

$

1,314

$

1,348

$

980

17

34

$

3,745

$

3,405

10

Corporate & Investment Bank

92

-

87

82

(42)

NM

NM

179

(142)

NM

Commercial Banking

67

29

90

106

(15)

131

NM

186

23

NM

Asset & Wealth Management

44

2

2

13

23

NM

91

48

40

20

Corporate

-

(2)

2

(1)

2

NM

NM

-

(3)

NM

PROVISION FOR CREDIT LOSSES

$

1,514

$

1,149

$

1,495

$

1,548

$

948

32

60

$

4,158

$

3,323

25

NET INCOME/(LOSS)

Consumer & Community Banking

$

4,273

$

4,174

$

3,963

$

4,028

$

4,086

2

5

$

12,410

$

10,824

15

Corporate & Investment Bank

2,809

2,935

3,251

1,975

2,626

(4)

7

8,995

9,798

(8)

Commercial Banking

937

996

1,053

1,036

1,089

(6)

(14)

2,986

3,201

(7)

Asset & Wealth Management

668

719

661

604

724

(7)

(8)

2,048

2,249

(9)

Corporate

393

828

251

(577)

(145)

(53)

NM

1,472

(664)

NM

TOTAL NET INCOME

$

9,080

$

9,652

$

9,179

$

7,066

$

8,380

(6)

8

$

27,911

$

25,408

10

Page 8

JPMORGAN CHASE & CO.

CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS (in millions, except ratio data)

Sep 30, 2019

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Change

NINE MONTHS ENDED SEPTEMBER 30,

Jun 30,

Sep 30,

2019 Change

CAPITAL (a)

2019

2019

2019

2018

2018

2019

2018

2019

2018

2018

Risk-based capital metrics

Standardized

CET1 capital

$

188,151

(e)

$

189,169

$

186,116

$

183,474

$

184,972

(1)%

2%

Tier 1 capital

214,762

(e)

215,808

212,644

209,093

210,589

-

2

Total capital

243,432

(e)

244,490

241,483

237,511

238,303

-

2

Risk-weighted assets

1,528,367

(e)

1,545,101

1,542,903

1,528,916

1,545,326

(1)

(1)

CET1 capital ratio

12.3% (e)

12.2%

12.1%

12.0%

12.0%

Tier 1 capital ratio

14.1

(e)

14.0

13.8

13.7

13.6

Total capital ratio

15.9

(e)

15.8

15.7

15.5

15.4

Advanced

CET1 capital

$

188,151

(e)

$

189,169

$

186,116

$

183,474

$

184,972

(1)

2

Tier 1 capital

214,762

(e)

215,808

212,644

209,093

210,589

-

2

Total capital

232,972

(e)

234,507

231,454

227,435

228,574

(1)

2

Risk-weighted assets

1,435,854

(e)

1,449,211

1,432,526

1,421,205

1,438,529

(1)

-

CET1 capital ratio

13.1% (e)

13.1%

13.0%

12.9%

12.9%

Tier 1 capital ratio

15.0

(e)

14.9

14.8

14.7

14.6

Total capital ratio

16.2

(e)

16.2

16.2

16.0

15.9

Leverage-based capital metrics

Adjusted average assets (b)

$

2,717,783

(e)

$

2,692,225

$

2,637,741

$

2,589,887

$

2,552,612

1

6

Tier 1 leverage ratio

7.9% (e)

8.0%

8.1%

8.1%

8.2%

Total leverage exposure

3,404,624

(e)

3,367,154

3,309,501

3,269,988

3,235,518

1

5

SLR

6.3% (e)

6.4%

6.4%

6.4%

6.5%

TANGIBLE COMMON EQUITY (period-end) (c)

Common stockholders' equity

$

235,985

$

236,222

$

232,844

$

230,447

$

231,192

-

2

Less: Goodwill

47,818

47,477

47,474

47,471

47,483

1

1

Less: Other intangible assets

841

732

737

748

781

15

8

Add: Deferred tax liabilities (d)

2,371

2,316

2,293

2,280

2,239

2

6

Total tangible common equity

$

189,697

$

190,329

$

186,926

$

184,508

$

185,167

-

2

TANGIBLE COMMON EQUITY (average) (c)

Common stockholders' equity

$

235,613

$

233,026

$

230,051

$

229,896

$

230,439

1

2

$

232,917

$

228,995

2%

Less: Goodwill

47,707

47,472

47,475

47,478

47,490

-

-

47,552

47,496

-

Less: Other intangible assets

842

741

744

765

795

14

6

776

820

(5)

Add: Deferred tax liabilities (d)

2,344

2,304

2,287

2,260

2,233

2

5

2,311

2,221

4

Total tangible common equity

$

189,408

$

187,117

$

184,119

$

183,913

$

184,387

1

3

$

186,900

$

182,900

2

INTANGIBLE ASSETS (period-end)

Goodwill

$

47,818

$

47,477

$

47,474

$

47,471

$

47,483

1

1

Mortgage servicing rights

4,419

5,093

5,957

6,130

6,433

(13)

(31)

Other intangible assets

841

732

737

748

781

15

8

Total intangible assets

$

53,078

$

53,302

$

54,168

$

54,349

$

54,697

-

(3)

  1. The Basel III capital rules became fully phased-in effective January 1, 2019. During 2018, the required capital measures were subject to the transitional rules and as of December 31, 2018 and September 30, 2018, were the same on a fully phased-in and on a transitional basis. For additional information, refer to Key performance measures on page 59 and Capital Risk Management on pages 85-94 of the Firm's 2018 Form 10-K and pages 44-48 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019.
  2. Adjusted average assets, for purposes of calculating leverage ratios, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill and other intangible assets.
  3. For further discussion of TCE, refer to page 28.
  4. Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted against goodwill and other intangibles when calculating TCE.
  5. Estimated.

Page 9

JPMORGAN CHASE & CO.

EARNINGS PER SHARE AND RELATED INFORMATION (in millions, except per share and ratio data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

EARNINGS PER SHARE

Basic earnings per share

Net income

$

9,080

$

9,652

$

9,179

$

7,066

$

8,380

(6)%

8%

$

27,911

$

25,408

10%

Less: Preferred stock dividends

423

404

374

384

379

5

12

1,201

1,167

3

Net income applicable to common equity

8,657

9,248

8,805

6,682

8,001

(6)

8

26,710

24,241

10

Less: Dividends and undistributed earnings allocated to

participating securities

51

56

52

41

53

(9)

(4)

159

174

(9)

Net income applicable to common stockholders

$

8,606

$

9,192

$

8,753

$

6,641

$

7,948

(6)

8

$

26,551

$

24,067

10

Total weighted-average basic shares outstanding

3,198.5

3,250.6

3,298.0

3,335.8

3,376.1

(2)

(5)

3,248.7

3,416.5

(5)

Net income per share

$

2.69

$

2.83

$

2.65

$

1.99

$

2.35

(5)

14

$

8.17

$

7.04

16

Diluted earnings per share

Net income applicable to common stockholders

$

8,606

$

9,192

$

8,753

$

6,641

$

7,948

(6)

8

$

26,551

$

24,067

10

Total weighted-average basic shares outstanding

3,198.5

3,250.6

3,298.0

3,335.8

3,376.1

(2)

(5)

3,248.7

3,416.5

(5)

Add: Employee stock options, stock appreciation rights ("SARs"),

8.7

9.1

10.2

11.5

18.2

(4)

(52)

9.3

19.7

(53)

warrants and unvested performance share units ("PSUs")

Total weighted-average diluted shares outstanding

3,207.2

3,259.7

3,308.2

3,347.3

3,394.3

(2)

(6)

3,258.0

3,436.2

(5)

Net income per share

$

2.68

$

2.82

$

2.65

$

1.98

$

2.34

(5)

15

$

8.15

$

7.00

16

COMMON DIVIDENDS

Cash dividends declared per share

$

0.90 (c)

$

0.80

$

0.80

$

0.80

$

0.80

13

13

$

2.50

$

1.92

30

Dividend payout ratio

33%

28%

30%

40%

34%

30%

27%

COMMON EQUITY REPURCHASE PROGRAM (a)

Total shares of common stock repurchased

62.0

47.5

49.5

55.5

39.3

31

58

159.0

126.0

26

Average price paid per share of common stock

$

112.07

$

109.83

$

102.78

$

106.80

$

112.41

2

-

$

108.51

$

111.55

(3)

Aggregate repurchases of common equity

6,949

5,210

5,091

5,928

4,416

33

57

17,250

14,055

23

EMPLOYEE ISSUANCE

Shares issued from treasury stock related to employee

stock-based compensation awards and employee stock

purchase plans

1.0

1.0

17.7

1.2

1.0

-

-

19.7

21.4

(8)

Net impact of employee issuances on stockholders' equity (b)

$

232

$

258

$

348

$

240

$

244

(10)

(5)

$

838

$

447

87

  1. On June 27, 2019, the Firm announced that it is authorized to repurchase up to $29.4 billion of common equity between July 1, 2019 and June 30, 2020, under a new equity repurchase program.
  2. The net impact of employee issuances on stockholders' equity is driven by the cost of equity compensation awards that is recognized over the applicable vesting periods. The cost is partially offset by tax impacts related to the distribution of shares and the exercise of employee stock options and SARs.
  3. On September 17, 2019, the Board of Directors declared a quarterly common stock dividend of $0.90 per share.

Page 10

JPMORGAN CHASE & CO.

CONSUMER & COMMUNITY BANKING

FINANCIAL HIGHLIGHTS

(in millions, except ratio data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

INCOME STATEMENT

REVENUE

Lending- and deposit-related fees

$

1,026

$

928

$

873

$

956

$

936

11%

10%

$

2,827

$

2,668

6%

Asset management, administration and commissions

608

664

618

610

626

(8)

(3)

1,890

1,792

5

Mortgage fees and related income (a)

886

279

396

203

260

218

241

1,561

1,049

49

Card income

1,176

1,257

1,168

1,255

1,219

(6)

(4)

3,601

3,299

9

All other income

1,399

1,312

1,278

1,173

1,135

7

23

3,989

3,255

23

Noninterest revenue

5,095

4,440

4,333

4,197

4,176

15

22

13,868

12,063

15

Net interest income (a)

9,164

9,393

9,418

9,498

9,114

(2)

1

27,975

26,321

6

TOTAL NET REVENUE

14,259

13,833

13,751

13,695

13,290

3

7

41,843

38,384

9

Provision for credit losses

1,311

1,120

1,314

1,348

980

17

34

3,745

3,405

10

NONINTEREST EXPENSE

Compensation expense

2,683

2,672

2,708

2,618

2,635

-

2

8,063

7,916

2

Noncompensation expense (b)

4,607

4,490

4,503

4,447

4,347

3

6

13,600

12,854

6

TOTAL NONINTEREST EXPENSE

7,290

7,162

7,211

7,065

6,982

2

4

21,663

20,770

4

Income before income tax expense

5,658

5,551

5,226

5,282

5,328

2

6

16,435

14,209

16

Income tax expense

1,385

1,377

1,263

1,254

1,242

1

12

4,025

3,385

19

NET INCOME

$

4,273

$

4,174

$

3,963

$

4,028

$

4,086

2

5

$

12,410

$

10,824

15

REVENUE BY LINE OF BUSINESS

Consumer & Business Banking

$

6,688

$

6,797

$

6,568

$

6,567

$

6,385

(2)

5

$

20,053

$

18,238

10

Home Lending (a)

1,465

1,118

1,346

1,322

1,306

31

12

3,929

4,162

(6)

Card, Merchant Services & Auto

6,106

5,918

5,837

5,806

5,599

3

9

17,861

15,984

12

MORTGAGE FEES AND RELATED INCOME DETAILS:

Net production revenue (a)

738

353

200

(28)

108

109

NM

1,291

296

336

Net mortgage servicing revenue (c)

148

(74)

196

231

152

NM

(3)

270

753

(64)

Mortgage fees and related income

$

886

$

279

$

396

$

203

$

260

218

241

$

1,561

$

1,049

49

FINANCIAL RATIOS

ROE

32

%

31

%

30

%

30

%

31

%

31

%

27

%

Overhead ratio

51

52

52

52

53

52

54

  1. Net production revenue in the third quarter of 2019 included approximately $350 million of gains on the sale of mortgage loans that were predominantly offset by a charge in net interest income for the unwind of the related internal funding from Treasury and Chief Investment Office ("CIO") associated with these loans. The charge reflects the net present value of that funding and is recognized as interest income in Treasury and CIO. For further information, refer to footnote (a) in Corporate on page 23 and Funds Transfer Pricing ("FTP") on page 60 of the Firm's 2018 Form 10-K.
  2. Included operating lease depreciation expense of $1.0 billion, $959 million, $969 million, $927 million and $862 million for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively, and $3.0 billion and $2.5 billion for the nine months ended September 30, 2019 and 2018, respectively.
  3. Included MSR risk management results of $53 million, $(244) million, $(9) million, $(17) million and $(88) million for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively, and $(200) million and $(94) million for the nine months ended September 30, 2019 and 2018, respectively.

Page 11

JPMORGAN CHASE & CO.

CONSUMER & COMMUNITY BANKING FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except headcount data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

SELECTED BALANCE SHEET DATA (period-end)

Total assets

$

532,487

$

550,690

$

552,486

$

557,441

$

560,432

(3)%

(5)%

$

532,487

$

560,432

(5)%

Loans:

Consumer & Business Banking

26,699

26,616

26,492

26,612

26,451

-

1

26,699

26,451

1

Home equity

31,552

32,958

34,417

36,013

37,461

(4)

(16)

31,552

37,461

(16)

Residential mortgage

171,787

186,575

196,182

203,859

205,389

(8)

(16)

171,787

205,389

(16)

Home Lending

203,339

219,533

230,599

239,872

242,850

(7)

(16)

203,339

242,850

(16)

Card

159,571

157,576

150,527

156,632

147,881

1

8

159,571

147,881

8

Auto

61,410

62,073

62,786

63,573

63,619

(1)

(3)

61,410

63,619

(3)

Total loans

451,019

465,798

470,404

486,689

480,801

(3)

(6)

451,019

480,801

(6)

Core loans

405,662

418,177

420,417

434,466

425,917

(3)

(5)

405,662

425,917

(5)

Deposits

701,170

695,100

702,587

678,854

677,260

1

4

701,170

677,260

4

Equity

52,000

52,000

52,000

51,000

51,000

-

2

52,000

51,000

2

SELECTED BALANCE SHEET DATA (average)

Total assets

$

538,500

$

542,337

$

553,832

$

554,600

$

551,080

(1)

(2)

$

544,833

$

544,931

-

Loans:

Consumer & Business Banking

26,550

26,570

26,488

26,474

26,351

-

1

26,537

26,104

2

Home equity

32,215

33,676

35,224

36,703

38,211

(4)

(16)

33,694

39,951

(16)

Residential mortgage

181,157

191,009

203,725

205,471

204,689

(5)

(11)

191,881

201,665

(5)

Home Lending

213,372

224,685

238,949

242,174

242,900

(5)

(12)

225,575

241,616

(7)

Card

158,168

153,746

151,134

150,594

146,272

3

8

154,375

143,986

7

Auto

61,371

62,236

62,763

63,426

64,060

(1)

(4)

62,118

65,096

(5)

Total loans

459,461

467,237

479,334

482,668

479,583

(2)

(4)

468,605

476,802

(2)

Core loans

413,036

418,470

428,215

429,167

422,582

(1)

(2)

419,851

415,662

1

Deposits

693,980

690,892

681,013

673,782

674,211

-

3

688,676

669,244

3

Equity

52,000

52,000

52,000

51,000

51,000

-

2

52,000

51,000

2

Headcount

127,687

127,732

128,419

129,518

129,891

-

(2)

127,687

129,891

(2)

Page 12

JPMORGAN CHASE & CO.

CONSUMER & COMMUNITY BANKING

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

CREDIT DATA AND QUALITY STATISTICS

Nonaccrual loans (a)(b)

$

3,099

$

3,142

$

3,265

$

3,339

$

3,520

(1)%

(12)%

$

3,099

$

3,520

(12)%

Net charge-offs/(recoveries) (c)

Consumer & Business Banking

79

66

59

65

68

20

16

204

171

19

Home equity

(25)

(16)

-

(4)

(12)

(56)

(108)

(41)

(3)

NM

Residential mortgage

(17)

(12)

(5)

(35)

(105)

(42)

84

(34)

(252)

87

Home Lending

(42)

(28)

(5)

(39)

(117)

(50)

64

(75)

(255)

71

Card

1,175

1,240

1,202

1,111

1,073

(5)

10

3,617

3,407

6

Auto

49

42

58

61

56

17

(13)

149

182

(18)

Total net charge-offs/(recoveries)

$

1,261

$

1,320

$

1,314

$

1,198

$

1,080

(4)

17

$

3,895

$

3,505

11

Net charge-off/(recovery) rate (c)

Consumer & Business Banking

1.18

%

1.00

%

0.90

%

0.97

%

1.02

%

1.03

%

0.88

%

Home equity (d)

(0.41)

(0.25)

-

(0.06)

(0.17)

(0.22)

(0.01)

Residential mortgage (d)

(0.04)

(0.03)

(0.01)

(0.07)

(0.22)

(0.03)

(0.18)

Home Lending (d)

(0.09)

(0.06)

(0.01)

(0.07)

(0.21)

(0.05)

(0.16)

Card

2.95

3.24

3.23

2.93

2.91

3.13

3.16

Auto

0.32

0.27

0.37

0.38

0.35

0.32

0.37

Total net charge-off/(recovery) rate (d)

1.16

1.19

1.17

1.04

0.95

1.17

1.05

30+ day delinquency rate

Home Lending (e)(f)

0.78

%

0.71

%

0.77

%

0.77

%

0.81

%

0.78

%

0.81

%

Card

1.84

1.71

1.85

1.83

1.75

1.84

1.75

Auto

0.88

0.82

0.63

0.93

0.82

0.88

0.82

90+ day delinquency rate - Card

0.90

0.87

0.97

0.92

0.85

0.90

0.85

Allowance for loan losses

Consumer & Business Banking

$

746

$

796

$

796

$

796

$

796

(6)

(6)

$

746

$

796

(6)

Home Lending, excluding PCI loans

903

1,003

1,003

1,003

1,003

(10)

(10)

903

1,003

(10)

Home Lending - PCI loans (c)

1,256

1,299

1,738

1,788

1,824

(3)

(31)

1,256

1,824

(31)

Card

5,583

5,383

5,183

5,184

5,034

4

11

5,583

5,034

11

Auto

465

465

465

464

464

-

-

465

464

-

Total allowance for loan losses (c)

$

8,953

$

8,946

$

9,185

$

9,235

$

9,121

-

(2)

$

8,953

$

9,121

(2)

Note : CCB provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, refer to page 28.

  1. Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as each of the pools is performing.
  2. At September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $1.6 billion, $1.8 billion, $2.2 billion, $2.6 billion and $2.9 billion, respectively. These amounts have been excluded based upon the government guarantee.
  3. Net charge-offs/(recoveries) and the net charge-off/(recovery) rates for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, excluded write-offs in the PCI portfolio of $43 million, $39 million, $50 million, $36 million and $58 million, respectively, and for the nine months ended September 30, 2019 and 2018 excluded $132 million and $151 million, respectively. These write-offs decreased the allowance for loan losses for PCI loans. For further information on PCI write-offs, refer to Summary of Changes in the Allowances on page 26.
  4. Excludes the impact of PCI loans. For the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of (0.31)%, (0.19)%, -%, (0.04)% and (0.12)%, respectively; (2) residential mortgage of (0.04)%, (0.03)%, (0.01)%, (0.07)% and (0.20)%, respectively; (3) Home Lending of (0.08)%, (0.05)%, (0.01)%, (0.06)% and (0.19)%, respectively; and (4) total CCB of 1.10%, 1.14%, 1.11%, 0.99% and 0.89%, respectively. For the nine months ended September 30, 2019 and 2018, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of (0.16)% and (0.01)%, respectively; (2) residential mortgage of (0.02)% and (0.17)%, respectively; (3) Home Lending of (0.04)% and (0.14)%, respectively; and (4) total CCB of 1.12% and 0.98%, respectively.
  5. At September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, excluded mortgage loans insured by U.S. government agencies of $2.7 billion, $2.9 billion, $3.2 billion, $4.1 billion and $4.5 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
  6. Excludes PCI loans. The 30+ day delinquency rate for PCI loans was 8.56%, 8.71%, 8.90%, 9.16% and 9.39% at September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively.

Page 13

JPMORGAN CHASE & CO.

CONSUMER & COMMUNITY BANKING

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data and where otherwise noted)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

BUSINESS METRICS

Number of:

Branches

4,949

4,970

5,028

5,036

5,066

- %

(2)%

4,949

5,066

(2)%

Active digital customers (in thousands) (a)

51,843

51,032

50,651

49,254

48,664

2

7

51,843

48,664

7

Active mobile customers (in thousands) (b)

36,510

35,392

34,371

33,260

32,538

3

12

36,510

32,538

12

Debit and credit card sales volume (in billions)

$

282.2

$

281.5

$

255.1

$

270.5

$

259.0

-

9

$

818.8

$

746.4

10

Consumer & Business Banking

Average deposits

$

678,281

$

676,663

$

668,526

$

660,279

$

659,513

-

3

$

674,526

$

655,276

3

Deposit margin

2.47

%

2.60

%

2.62

%

2.55

%

2.43

%

2.56

%

2.33

%

Business banking origination volume

$

1,550

$

1,741

$

1,480

$

1,477

$

1,629

(11)

(5)

$

4,771

$

5,206

(8)

Client investment assets

337,915

328,141

312,310

282,463

298,405

3

13

337,915

298,405

13

Home Lending (in billions)

Mortgage origination volume by channel

Retail

$

14.2

$

12.5

$

7.9

$

9.0

$

10.6

14

34

$

34.6

$

29.3

18

Correspondent

18.2

12.0

7.1

8.2

11.9

52

53

37.3

32.9

13

Total mortgage origination volume (c)

$

32.4

$

24.5

$

15.0

$

17.2

$

22.5

32

44

$

71.9

$

62.2

16

Total loans serviced (period-end)

$

774.8

$

780.1

$

791.5

$

789.8

$

798.6

(1)

(3)

$

774.8

$

798.6

(3)

Third-party mortgage loans serviced (period-end)

535.8

526.6

529.6

519.6

526.5

2

2

535.8

526.5

2

MSR carrying value (period-end)

4.4

5.1

6.0

6.1

6.4

(14)

(31)

4.4

6.4

(31)

Ratio of MSR carrying value (period-end) to third-party

mortgage loans serviced (period-end)

0.82

%

0.97

%

1.13

%

1.17

%

1.22

%

0.82

%

1.22

%

MSR revenue multiple (d)

2.41x

2.69x

3.32x

3.34x

3.49x

2.34x

3.49x

Card, excluding Commercial Card

Credit card sales volume (in billions)

$

193.6

$

192.5

$

172.5

$

185.3

$

176.0

1

10

$

558.6

$

507.1

10

Card Services

Net revenue rate

11.40

%

11.48

%

11.63

%

11.57

%

11.50

%

11.50

%

11.17

%

Merchant Services

Merchant processing volume (in billions)

$

380.5

$

371.6

$

356.5

$

375.2

$

343.8

2

11

$

1,108.6

$

990.9

12

Auto

Loan and lease origination volume (in billions)

$

9.1

$

8.5

$

7.9

$

7.0

$

8.1

7

12

$

25.5

$

24.8

3

Average auto operating lease assets

21,765

21,314

20,831

20,041

19,176

2

14

21,307

18,394

16

  1. Users of all web and/or mobile platforms who have logged in within the past 90 days.
  2. Users of all mobile platforms who have logged in within the past 90 days.
  3. Firmwide mortgage origination volume was $35.8 billion, $26.3 billion, $16.4 billion, $18.7 billion and $24.5 billion for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively, and $78.5 billion and $68.2 billion for the nine months ended September 30, 2019 and 2018, respectively.
  4. Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average).

Page 14

JPMORGAN CHASE & CO.

CORPORATE & INVESTMENT BANK

FINANCIAL HIGHLIGHTS

(in millions, except ratio data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

INCOME STATEMENT

REVENUE

Investment banking fees

$

1,981

$

1,846

$

1,844

$

1,815

$

1,823

7%

9%

$

5,671

$

5,658

-%

Principal transactions

3,418

3,885

4,163

1,485

3,091

(12)

11

11,466

10,786

6

Lending- and deposit-related fees

360

374

361

361

373

(4)

(3)

1,095

1,136

(4)

Asset management, administration and commissions

1,197

1,149

1,101

1,072

1,130

4

6

3,447

3,416

1

All other income

226

229

194

281

88

(1)

157

649

958

(c)

(32)

Noninterest revenue

7,182

7,483

7,663

5,014

6,505

(4)

10

22,328

21,954

2

Net interest income

2,156

2,158

2,185

2,223

2,300

-

(6)

6,499

7,257

(10)

TOTAL NET REVENUE (a)

9,338

9,641

9,848

7,237

8,805

(3)

6

28,827

29,211

(1)

Provision for credit losses

92

-

87

82

(42)

NM

NM

179

(142)

NM

NONINTEREST EXPENSE

Compensation expense

2,734

2,698

2,949

2,057

2,402

1

14

8,381

8,158

3

Noncompensation expense

2,614

2,789

2,504

2,624

2,773

(6)

(6)

7,907

8,079

(2)

TOTAL NONINTEREST EXPENSE

5,348

5,487

5,453

4,681

5,175

(3)

3

16,288

16,237

-

Income before income tax expense

3,898

4,154

4,308

2,474

3,672

(6)

6

12,360

13,116

(6)

Income tax expense

1,089

1,219

1,057

499

1,046

(11)

4

3,365

3,318

1

NET INCOME

$

2,809

$

2,935

$

3,251

$

1,975

$

2,626

(4)

7

$

8,995

$

9,798

(8)

FINANCIAL RATIOS

ROE

13%

14%

16%

10%

14%

14%

18%

Overhead ratio

57

57

55

65

59

57

56

Compensation expense as percentage of total net revenue

29

28

30

28

27

29

28

REVENUE BY BUSINESS

Investment Banking

$

1,871

$

1,776

$

1,745

$

1,720

$

1,731

5

8

$

5,392

$

5,267

2

Treasury Services

1,101

1,135

1,147

1,217

1,183

(3)

(7)

3,383

3,480

(3)

Lending

329

337

340

344

331

(2)

(1)

1,006

954

5

Total Banking

3,301

3,248

3,232

3,281

3,245

2

2

9,781

9,701

1

Fixed Income Markets

3,557

3,690

3,725

1,856

2,844

(4)

25

10,972

10,850

1

Equity Markets

1,517

1,728

1,741

1,317

1,595

(12)

(5)

4,986

5,571

(11)

Securities Services

1,034

1,045

1,014

1,026

1,057

(1)

(2)

3,093

3,219

(4)

Credit Adjustments & Other (b)

(71)

(70)

136

(243)

64

(1)

NM

(5)

(130)

96

Total Markets & Securities Services

6,037

6,393

6,616

3,956

5,560

(6)

9

19,046

19,510

(c)

(2)

TOTAL NET REVENUE

$

9,338

$

9,641

$

9,848

$

7,237

$

8,805

(3)

6

$

28,827

$

29,211

(1)

  1. Includes tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; as well as tax-exempt income from municipal bonds of $527 million, $547 million, $539 million, $465 million and $354 million for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively and $1.6 billion and $1.2 billion for the nine months ended September 30, 2019 and 2018, respectively.
  2. Consists primarily of credit valuation adjustments ("CVA") managed centrally within CIB and funding valuation adjustments ("FVA") on derivatives. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.
  3. Included $505 million of fair value gains related to the adoption of the recognition and measurement accounting guidance in the first quarter of 2018 for certain equity investments previously held at cost.

Page 15

JPMORGAN CHASE & CO.

CORPORATE & INVESTMENT BANK

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio and headcount data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

SELECTED BALANCE SHEET DATA (period-end)

Assets

$

1,023,132

$

962,498

$

1,006,111

$

903,051

$

928,148

6%

10%

$

1,023,132

$

928,148

10%

Loans:

Loans retained (a)

118,290

123,074

127,086

129,389

117,084

(4)

1

118,290

117,084

1

Loans held-for-sale and loans at fair value

8,324

6,838

7,783

13,050

6,133

22

36

8,324

6,133

36

Total loans

126,614

129,912

134,869

142,439

123,217

(3)

3

126,614

123,217

3

Core loans

126,445

129,747

134,692

142,122

122,953

(3)

3

126,445

122,953

3

Equity

80,000

80,000

80,000

70,000

70,000

-

14

80,000

70,000

14

SELECTED BALANCE SHEET DATA (average)

Assets

$

1,003,395

$

992,792

$

959,842

$

918,643

$

924,909

1

8

985,503

$

924,145

7

Trading assets - debt and equity instruments

415,450

421,775

381,312

334,033

349,390

(1)

19

406,304

354,270

15

Trading assets - derivative receivables

48,266

48,815

50,609

59,393

62,025

(1)

(22)

49,221

60,943

(19)

Loans:

Loans retained (a)

119,007

124,194

126,990

118,857

115,390

(4)

3

123,368

112,921

9

Loans held-for-sale and loans at fair value

8,344

7,763

8,615

6,852

7,328

7

14

8,239

6,263

32

Total loans

127,351

131,957

135,605

125,709

122,718

(3)

4

131,607

119,184

10

Core loans

127,187

131,792

135,420

125,505

122,442

(3)

4

131,436

118,877

11

Equity

80,000

80,000

80,000

70,000

70,000

-

14

80,000

70,000

14

Headcount

55,873

54,959

54,697

54,480

54,052

2

3

55,873

54,052

3

CREDIT DATA AND QUALITY STATISTICS

Net charge-offs/(recoveries)

$

38

$

72

$

30

$

(1)

$

(40)

(47)

NM

$

140

$

94

49

Nonperforming assets:

Nonaccrual loans:

Nonaccrual loans retained (b)

712

569

812

443

318

25

124

712

318

124

Nonaccrual loans held-for-sale and loans at fair value

262

370

313

220

9

(29)

NM

262

9

NM

Total nonaccrual loans

974

939

1,125

663

327

4

198

974

327

198

Derivative receivables

26

39

44

60

90

(33)

(71)

26

90

(71)

Assets acquired in loan satisfactions

75

58

58

57

61

29

23

75

61

23

Total nonperforming assets

1,075

1,036

1,227

780

478

4

125

1,075

478

125

Allowance for credit losses:

Allowance for loan losses

1,171

1,131

1,252

1,199

1,068

4

10

1,171

1,068

10

Allowance for lending-related commitments

824

807

758

754

802

2

3

824

802

3

Total allowance for credit losses

1,995

1,938

2,010

1,953

1,870

3

7

1,995

1,870

7

Net charge-off/(recovery) rate (a)(c)

0.13%

0.23%

0.10%

- %

(0.14)%

0.15%

0.11%

Allowance for loan losses to period-end loans retained (a)

0.99

0.92

0.99

0.93

0.91

0.99

0.91

Allowance for loan losses to period-end loans retained,

excluding trade finance and conduits (d)

1.33

1.27

1.34

1.24

1.27

1.33

1.27

Allowance for loan losses to nonaccrual loans retained (a)(b)

164

199

154

271

336

164

336

Nonaccrual loans to total period-end loans

0.77

0.72

0.83

0.47

0.27

0.77

0.27

  1. Loans retained includes credit portfolio loans, loans held by consolidated Firm-administeredmulti-seller conduits, trade finance loans, other held-for-investment loans and overdrafts.
  2. Allowance for loan losses of $207 million, $147 million, $252 million, $174 million and $145 million were held against nonaccrual loans at September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively.
  3. Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
  4. Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB's allowance coverage ratio.

Page 16

JPMORGAN CHASE & CO.

CORPORATE & INVESTMENT BANK

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except where otherwise noted)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

BUSINESS METRICS

Advisory

$

506

$

525

$

644

$

727

$

581

(4)%

(13)%

$

1,675

$

1,782

(6)%

Equity underwriting

514

505

265

348

420

2

22

1,284

1,336

(4)

Debt underwriting

961

816

935

740

822

18

17

2,712

2,540

7

Total investment banking fees

$

1,981

$

1,846

$

1,844

$

1,815

$

1,823

7

9

$

5,671

$

5,658

-

Assets under custody ("AUC") (period-end) (in billions)

$

25,695

$

25,450

$

24,716

$

23,217

$

24,403

1

5

$

25,695

$

24,403

5

Client deposits and other third-party liabilities (average) (a)

471,291

458,237

444,055

445,642

434,847

3

8

457,961

430,640

6

95% Confidence Level - Total CIB VaR (average)

CIB trading VaR by risk type: (b)

Fixed income

$

37

$

39

$

44

$

37

$

30

(5)

23

Foreign exchange

6

7

9

6

5

(14)

20

Equities

22

25

16

20

16

(12)

38

Commodities and other

8

9

10

11

9

(11)

(11)

Diversification benefit to CIB trading VaR (c)

(34)

(36)

(32)

(25)

(27)

6

(26)

CIB trading VaR (b)

39

44

47

49

33

(11)

18

Credit portfolio VaR (d)

5

5

5

4

3

-

67

Diversification benefit to CIB VaR (c)

(6)

(5)

(4)

(4)

(3)

(20)

(100)

CIB VaR

$

38

$

44

$

48

$

49

$

33

(14)

15

  1. Client deposits and other third-party liabilities pertain to the Treasury Services and Securities Services businesses.
  2. 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. For further information, refer to VaR measurement on pages 126-128 of the Firm's 2018 Form 10-K, and pages 70-72 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2019.
  3. Average portfolio VaR was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated.
  4. Credit portfolio VaR includes the derivative CVA, hedges of the CVA and hedges of the retained loan portfolio, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value.

Page 17

JPMORGAN CHASE & CO. COMMERCIAL BANKING FINANCIAL HIGHLIGHTS

(in millions, except ratio data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

INCOME STATEMENT

REVENUE

Lending- and deposit-related fees

$

221

$

216

$

227

$

204

$

216

2%

2%

$

664

$

666

- %

All other income (a)

378

333

431

381

360

14

5

1,142

1,092

5

Noninterest revenue

599

549

658

585

576

9

4

1,806

1,758

3

Net interest income

1,608

1,662

1,680

1,721

1,695

(3)

(5)

4,950

4,995

(1)

TOTAL NET REVENUE (b)

2,207

2,211

2,338

2,306

2,271

-

(3)

6,756

6,753

-

Provision for credit losses

67

29

90

106

(15)

131

NM

186

23

NM

NONINTEREST EXPENSE

Compensation expense

454

438

449

426

432

4

5

1,341

1,268

6

Noncompensation expense

427

426

424

419

421

-

1

1,277

1,273

-

TOTAL NONINTEREST EXPENSE

881

864

873

845

853

2

3

2,618

2,541

3

Income before income tax expense

1,259

1,318

1,375

1,355

1,433

(4)

(12)

3,952

4,189

(6)

Income tax expense

322

322

322

319

344

-

(6)

966

988

(2)

NET INCOME

$

937

$

996

$

1,053

$

1,036

$

1,089

(6)

(14)

$

2,986

$

3,201

(7)

Revenue by product

Lending

$

1,006

$

1,012

$

1,012

$

997

$

1,027

(1)

(2)

$

3,030

$

3,052

(1)

Treasury services

950

989

1,029

1,055

1,021

(4)

(7)

2,968

3,019

(2)

Investment banking (c)

226

193

289

208

206

17

10

708

644

10

Other

25

17

8

46

17

47

47

50

38

32

Total Commercial Banking net revenue (b)

$

2,207

$

2,211

$

2,338

$

2,306

$

2,271

-

(3)

$

6,756

$

6,753

-

Investment banking revenue, gross (d)

$

700

$

592

$

818

$

602

$

581

18

20

$

2,110

$

1,889

12

Revenue by client segment

Middle Market Banking

$

903

$

939

$

951

$

959

$

935

(4)

(3)

$

2,793

$

2,749

2

Corporate Client Banking

739

709

816

741

749

4

(1)

2,264

2,243

1

Commercial Real Estate Banking (e)

547

538

547

568

562

2

(3)

1,632

1,681

(3)

Other (e)

18

25

24

38

25

(28)

(28)

67

80

(16)

Total Commercial Banking net revenue (b)

$

2,207

$

2,211

$

2,338

$

2,306

$

2,271

-

(3)

$

6,756

$

6,753

-

FINANCIAL RATIOS

ROE

16

%

17

%

19

%

20

%

21

%

17

%

20

%

Overhead ratio

40

39

37

37

38

39

38

  1. Effective in the first quarter of 2019, includes revenue from investment banking products, commercial card transactions and asset management fees. The prior period amounts have been revised to conform with the current period presentation.
  2. Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities, as well as tax-exempt income related to municipal financing activities of $114 million, $100 million, $94 million, $128 million and $107 million for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively and $308 million and $316 million for the nine months ended September 30, 2019 and 2018, respectively
  3. Includes CB's share of revenue from investment banking products sold to CB clients through the CIB.
  4. For discussion of revenue sharing, refer to page 60 of the Firm's 2018 Form 10-K.
  5. Effective in the first quarter of 2019, client segment data includes Commercial Real Estate Banking which comprises the former Commercial Term Lending and Real Estate Banking client segments, and Community Development Banking (previously part of Other). The prior period amounts have been revised to conform with the current period presentation.

Page 18

JPMORGAN CHASE & CO.

COMMERCIAL BANKING

FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except headcount and ratio data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

SELECTED BALANCE SHEET DATA (period-end)

Total assets

$

222,483

$

220,712

$

216,111

$

220,229

$

217,194

1%

2%

$

222,483

$

217,194

2%

Loans:

Loans retained

209,448

208,323

204,927

204,219

205,177

1

2

209,448

205,177

2

Loans held-for-sale and loans at fair value

3,187

1,284

410

1,978

405

148

NM

3,187

405

NM

Total loans

$

212,635

$

209,607

$

205,337

$

206,197

$

205,582

1

3

$

212,635

$

205,582

3

Core loans

212,514

209,475

205,199

206,039

205,418

1

3

212,514

205,418

3

Equity

22,000

22,000

22,000

20,000

20,000

-

10

22,000

20,000

10

Period-end loans by client segment

Middle Market Banking

$

54,298

$

56,346

$

56,846

$

56,656

$

57,324

(4)

(5)

$

54,298

$

57,324

(5)

Corporate Client Banking

55,976

51,500

46,897

48,343

46,890

9

19

55,976

46,890

19

Commercial Real Estate Banking (a)

101,326

100,751

100,622

100,088

100,072

1

1

101,326

100,072

1

Other (a)

1,035

1,010

972

1,110

1,296

2

(20)

1,035

1,296

(20)

Total Commercial Banking loans

$

212,635

$

209,607

$

205,337

$

206,197

$

205,582

1

3

$

212,635

$

205,582

3

SELECTED BALANCE SHEET DATA (average)

Total assets

$

218,620

$

218,760

$

218,297

$

218,227

$

219,232

-

-

$

218,560

$

218,270

-

Loans:

Loans retained

207,286

206,771

204,462

205,113

205,603

-

1

206,183

203,950

1

Loans held-for-sale and loans at fair value

963

701

1,634

1,610

1,617

37

(40)

1,097

1,139

(4)

Total loans

$

208,249

$

207,472

$

206,096

$

206,723

$

207,220

-

-

$

207,280

$

205,089

1

Core loans

208,125

207,336

205,949

206,561

207,052

-

1

207,145

204,902

1

Client deposits and other third-party liabilities

172,714

168,247

167,260

169,174

168,169

3

3

169,427

171,483

(1)

Equity

22,000

22,000

22,000

20,000

20,000

-

10

22,000

20,000

10

Average loans by client segment

Middle Market Banking

$

54,806

$

57,155

$

56,723

$

57,004

$

57,258

(4)

(4)

$

56,221

$

57,121

(2)

Corporate Client Banking

51,389

48,656

48,141

48,167

49,004

6

5

49,407

47,650

4

Commercial Real Estate Banking (a)

101,044

100,671

100,264

100,320

99,627

-

1

100,663

98,880

2

Other (a)

1,010

990

968

1,232

1,331

2

(24)

989

1,438

(31)

Total Commercial Banking loans

$

208,249

$

207,472

$

206,096

$

206,723

$

207,220

-

-

$

207,280

$

205,089

1

Headcount

11,501

11,248

11,033

11,042

10,937

2

5

11,501

10,937

5

CREDIT DATA AND QUALITY STATISTICS

Net charge-offs/(recoveries)

$

45

$

15

$

11

$

37

$

(18)

200

NM

$

71

$

16

344

Nonperforming assets

Nonaccrual loans:

Nonaccrual loans retained (b)

659

614

544

511

452

7

46

659

452

46

Nonaccrual loans held-for-sale and loans

at fair value

-

-

-

-

5

-

NM

-

5

NM

Total nonaccrual loans

659

614

544

511

457

7

44

659

457

44

Assets acquired in loan satisfactions

19

20

-

2

2

(5)

NM

19

2

NM

Total nonperforming assets

678

634

544

513

459

7

48

678

459

48

Allowance for credit losses:

Allowance for loan losses

2,759

2,756

2,766

2,682

2,619

-

5

2,759

2,619

5

Allowance for lending-related commitments

293

274

250

254

249

7

18

293

249

18

Total allowance for credit losses

3,052

3,030

3,016

2,936

2,868

1

6

3,052

2,868

6

Net charge-off/(recovery) rate (c)

0.09

%

0.03

%

0.02

%

0.07

%

(0.03)

%

0.05

%

0.01

%

Allowance for loan losses to period-end loans retained

1.32

1.32

1.35

1.31

1.28

1.32

1.28

Allowance for loan losses to nonaccrual loans retained (b)

419

449

508

525

579

419

579

Nonaccrual loans to period-end total loans

0.31

0.29

0.26

0.25

0.22

0.31

0.22

  1. Effective in the first quarter of 2019, client segment data includes Commercial Real Estate Banking which comprises the former Commercial Term Lending and Real Estate Banking client segments, and Community Development Banking (previously part of Other). The prior period amounts have been revised to conform with the current period presentation.
  2. Allowance for loan losses of $119 million, $125 million, $132 million, $92 million and $105 million was held against nonaccrual loans retained at September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively.
  3. Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.

Page 19

JPMORGAN CHASE & CO.

ASSET & WEALTH MANAGEMENT

FINANCIAL HIGHLIGHTS

(in millions, except ratio and headcount data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

INCOME STATEMENT

REVENUE

Asset management, administration and commissions

$

2,574

$

2,568

$

2,416

$

2,548

$

2,563

-%

-%

$

7,558

$

7,623

(1)%

All other income

139

115

177

(6)

117

21

19

431

374

15

Noninterest revenue

2,713

2,683

2,593

2,542

2,680

1

1

7,989

7,997

-

Net interest income

855

876

896

897

879

(2)

(3)

2,627

2,640

-

TOTAL NET REVENUE

3,568

3,559

3,489

3,439

3,559

-

-

10,616

10,637

-

Provision for credit losses

44

2

2

13

23

NM

91

48

40

20

NONINTEREST EXPENSE

Compensation expense

1,391

1,406

1,462

1,383

1,391

(1)

-

4,259

4,112

4

Noncompensation expense

1,231

1,190

1,185

1,238

1,194

3

3

3,606

3,620

-

TOTAL NONINTEREST EXPENSE

2,622

2,596

2,647

2,621

2,585

1

1

7,865

7,732

2

Income before income tax expense

902

961

840

805

951

(6)

(5)

2,703

2,865

(6)

Income tax expense

234

242

179

201

227

(3)

3

655

616

6

NET INCOME

$

668

$

719

$

661

$

604

$

724

(7)

(8)

$

2,048

$

2,249

(9)

REVENUE BY LINE OF BUSINESS

Asset Management

$

1,816

$

1,785

$

1,761

$

1,723

$

1,827

2

(1)

$

5,362

$

5,440

(1)

Wealth Management

1,752

1,774

1,728

1,716

1,732

(1)

1

5,254

5,197

1

TOTAL NET REVENUE

$

3,568

$

3,559

$

3,489

$

3,439

$

3,559

-

-

$

10,616

$

10,637

-

FINANCIAL RATIOS

ROE

24

%

27

%

25

%

26

%

31

%

25

%

32

%

Overhead ratio

73

73

76

76

73

74

73

Pretax margin ratio:

Asset Management

25

25

23

25

27

25

27

Wealth Management

25

29

25

22

26

26

27

Asset & Wealth Management

25

27

24

23

27

25

27

Headcount

24,228

23,683

24,347

23,920

23,747

2

2

24,228

23,747

2

Number of Wealth Management client advisors

2,872

2,735

2,877

2,865

2,808

5

2

2,872

2,808

2

Page 20

JPMORGAN CHASE & CO.

ASSET & WEALTH MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED

(in millions, except ratio data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

SELECTED BALANCE SHEET DATA (period-end)

Total assets

$

174,226

$

172,149

$

165,865

$

170,024

$

166,716

1%

5%

$

174,226

$

166,716

5%

Loans

153,245

149,877

143,750

147,632

143,162

2

7

153,245

143,162

7

Core loans

153,245

149,877

143,750

147,632

143,162

2

7

153,245

143,162

7

Deposits

138,439

136,225

143,348

138,546

130,497

2

6

138,439

130,497

6

Equity

10,500

10,500

10,500

9,000

9,000

-

17

10,500

9,000

17

SELECTED BALANCE SHEET DATA (average)

Total assets

$

171,121

$

167,544

$

167,358

$

166,353

$

161,982

2

6

$

168,688

$

158,218

7

Loans

150,486

146,494

145,406

144,434

140,558

3

7

147,481

136,663

8

Core loans

150,486

146,494

145,406

144,434

140,558

3

7

147,481

136,663

8

Deposits

138,822

140,317

138,235

132,486

133,021

(1)

4

139,127

138,885

-

Equity

10,500

10,500

10,500

9,000

9,000

-

17

10,500

9,000

17

CREDIT DATA AND QUALITY STATISTICS

Net charge-offs

26

$

(3)

$

4

$

3

$

11

NM

136

$

27

$

7

286

Nonaccrual loans

176

127

285

263

285

39

(38)

176

285

(38)

Allowance for credit losses:

Allowance for loan losses

350

331

325

326

317

6

10

350

317

10

Allowance for lending-related commitments

16

17

18

16

15

(6)

7

16

15

7

Total allowance for credit losses

366

348

343

342

332

5

10

366

332

10

Net charge-off/(recovery) rate

0.07

%

(0.01) %

0.01

%

0.01 %

0.03

%

0.02

%

0.01

%

Allowance for loan losses to period-end loans

0.23

0.22

0.23

0.22

0.22

0.23

0.22

Allowance for loan losses to nonaccrual loans

199

261

114

124

111

199

111

Nonaccrual loans to period-end loans

0.11

0.08

0.20

0.18

0.20

0.11

0.20

Page 21

JPMORGAN CHASE & CO.

ASSET & WEALTH MANAGEMENT FINANCIAL HIGHLIGHTS, CONTINUED

(in billions)

Sep 30, 2019

Change

NINE MONTHS ENDED SEPTEMBER 30,

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Sep 30,

2019 Change

CLIENT ASSETS

2019

2019

2019

2018

2018

2019

2018

2019

2018

2018

Assets by asset class

Liquidity

$

505

$

481

$

476

$

480

$

463

5%

9%

$

505

$

463

9%

Fixed income

590

543

495

464

457

9

29

590

457

29

Equity

437

441

427

384

452

(1)

(3)

437

452

(3)

Multi-asset and alternatives

714

713

698

659

705

-

1

714

705

1

TOTAL ASSETS UNDER MANAGEMENT

2,246

2,178

2,096

1,987

2,077

3

8

2,246

2,077

8

Custody/brokerage/administration/deposits

815

820

801

746

790

(1)

3

815

790

3

TOTAL CLIENT ASSETS

$

3,061

$

2,998

$

2,897

$

2,733

$

2,867

2

7

$

3,061

$

2,867

7

Memo:

Alternatives client assets (a)

$

183

$

177

$

172

$

171

$

172

3

6

$

183

$

172

6

Assets by client segment

Private Banking

$

636

$

617

$

597

$

552

$

576

3

10

$

636

$

576

10

Institutional

1,029

991

943

926

945

4

9

1,029

945

9

Retail

581

570

556

509

556

2

4

581

556

4

TOTAL ASSETS UNDER MANAGEMENT

$

2,246

$

2,178

$

2,096

$

1,987

$

2,077

3

8

$

2,246

$

2,077

8

Private Banking

$

1,424

$

1,410

$

1,371

$

1,274

$

1,339

1

6

$

1,424

$

1,339

6

Institutional

1,051

1,013

965

946

967

4

9

1,051

967

9

Retail

586

575

561

513

561

2

4

586

561

4

TOTAL CLIENT ASSETS

$

3,061

$

2,998

$

2,897

$

2,733

$

2,867

2

7

$

3,061

$

2,867

7

Assets under management rollforward

Beginning balance

$

2,178

$

2,096

$

1,987

$

2,077

$

2,028

$

1,987

$

2,034

Net asset flows:

Liquidity

24

4

(5)

21

14

23

10

Fixed income

41

37

19

8

3

97

(9)

Equity

(2)

(1)

(6)

(6)

1

(9)

8

Multi-asset and alternatives

1

-

(3)

(5)

4

(2)

29

Market/performance/other impacts

4

42

104

(108)

27

150

5

Ending balance

$

2,246

$

2,178

$

2,096

$

1,987

$

2,077

$

2,246

$

2,077

Client assets rollforward

Beginning balance

$

2,998

$

2,897

$

2,733

$

2,867

$

2,799

$

2,733

$

2,789

Net asset flows

59

52

9

30

33

120

58

Market/performance/other impacts

4

49

155

(164)

35

208

20

Ending balance

$

3,061

$

2,998

$

2,897

$

2,733

$

2,867

$

3,061

$

2,867

  1. Represents assets under management, as well as client balances in brokerage accounts.

Page 22

JPMORGAN CHASE & CO. CORPORATE FINANCIAL HIGHLIGHTS

(in millions, except headcount data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

INCOME STATEMENT

REVENUE

Principal transactions

$

10

$

(175)

$

(62)

$

(204)

$

(161)

NM

NM

$

(227)

$

(222)

(2)%

Investment securities gains/(losses)

78

44

13

(24)

(46)

77

NM

135

(371)

NM

All other income

32

6

57

185

30

433

7

95

373

(75)

Noninterest revenue

120

(125)

8

(43)

(177)

NM

NM

3

(220)

NM

Net interest income (a)

572

447

417

170

74

28

NM

1,436

(35)

NM

TOTAL NET REVENUE (b)

692

322

425

127

(103)

115

NM

1,439

(255)

NM

Provision for credit losses

-

(2)

2

(1)

2

NM

NM

-

(3)

NM

NONINTEREST EXPENSE (c)

281

232

211

508

28

21

NM

724

394

84

Income/(loss) before income tax expense/(benefit)

411

92

212

(380)

(133)

347

NM

715

(646)

NM

Income tax expense/(benefit)

18

(736) (e)

(39)

197

12

NM

50

(757) (e)

18

NM

NET INCOME/(LOSS)

$

393

$

828

$

251

$

(577)

$

(145)

(53)

NM

$

1,472

$

(664)

NM

MEMO:

TOTAL NET REVENUE

Treasury and Chief Investment Office ("CIO") (a)

801

618

511

275

186

30

331

1,930

235

NM

Other Corporate

(109)

(296)

(86)

(148)

(289)

63

62

(491)

(490)

-

TOTAL NET REVENUE

$

692

$

322

$

425

$

127

$

(103)

115

NM

$

1,439

$

(255)

NM

NET INCOME/(LOSS)

Treasury and CIO

576

462

334

175

96

25

500

1,372

(244)

NM

Other Corporate

(183)

366

(83)

(752)

(241)

NM

24

100

(420)

NM

TOTAL NET INCOME/(LOSS)

$

393

$

828

$

251

$

(577)

$

(145)

(53)

NM

$

1,472

$

(664)

NM

SELECTED BALANCE SHEET DATA (period-end)

Total assets

$

812,333

$

821,330

$

796,615

$

771,787

$

742,693

(1)

9

$

812,333

$

742,693

9

Loans

1,705

1,695

1,885

1,597

1,556

1

10

1,705

1,556

10

Core loans (d)

1,706

1,695

1,885

1,597

1,556

1

10

1,706

1,556

10

Headcount

38,155

37,361

37,502

37,145

36,686

2

4

38,155

36,686

4

SUPPLEMENTAL INFORMATION

TREASURY and CIO

Investment securities gains/(losses)

$

78

$

44

$

13

$

(24)

$

(46)

77%

NM

$

135

$

(371)

NM

Available-for-sale ("AFS") investment securities (average)

305,894

248,612

226,605

211,997

197,230

23

55

260,661

200,569

30

Held-to-maturity ("HTM") investment securities (average)

35,494

30,929

31,082

31,466

31,232

15

14

32,518

31,842

2

Investment securities portfolio (average)

$

341,388

$

279,541

$

257,687

$

243,463

$

228,462

22

49

$

293,179

$

232,411

26

AFS investment securities (period-end)

351,599

274,533

234,832

228,681

198,523

28

77

351,599

198,523

77

HTM investment securities (period-end)

40,830

30,907

30,849

31,434

31,368

32

30

40,830

31,368

30

Investment securities portfolio (period-end)

$

392,429

$

305,440

$

265,681

$

260,115

$

229,891

28

71

$

392,429

$

229,891

71

  1. Net interest income in the third quarter of 2019 included income related to the unwind of the internal funding provided by Treasury and CIO to CCB upon the sale of certain mortgage loans. For further information, refer to footnote (a) in CCB on page 11.
  2. Included tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of $74 million, $81 million, $86 million, $95 million and $94 million for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively, and $241 million and $287 million for the nine months ended September 30, 2019 and 2018, respectively.
  3. Included legal expense/(benefit) of $(32) million, $(67) million, $(90) million, $(16) million and $(175) million for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, respectively, and $(189) million and $(225) million for the nine months ended September 30, 2019 and 2018, respectively.
  4. Average core loans were $1.7 billion for the three months ended September 30, 2019 and June 30, 2019, respectively, and $1.6 billion for the three months ended March 31, 2019, December 31, 2018, and September 30, 2018, respectively, and $1.7 billion for both the nine months ended September 30, 2019 and 2018.
  5. The three months ended June 30, 2019 and the nine months ended September 30, 2019 included income tax benefits of $742 million and $957 million, respectively, due to the resolution of certain tax audits.

Page 23

JPMORGAN CHASE & CO. CREDIT-RELATEDINFORMATION (in millions)

Sep 30, 2019

Change

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Sep 30,

2019

2019

2019

2018

2018

2019

2018

CREDIT EXPOSURE

Consumer, excluding credit card loans (a)

Loans retained, excluding PCI loans

$

310,519

$

329,450

$

336,508

$

349,603

$

350,749

(6)%

(11)%

Loans - PCI

21,290

22,242

23,207

24,034

25,209

(4)

(16)

Total loans retained

331,809

351,692

359,715

373,637

375,958

(6)

(12)

Loans held-for-sale

4,821

1,030

4,199

95

104

368

NM

Total consumer, excluding credit card loans

336,630

352,722

363,914

373,732

376,062

(5)

(10)

Credit card loans

Loans retained

159,571

157,568

150,515

156,616

147,856

1

8

Loans held-for-sale

-

8

12

16

25

NM

NM

Total credit card loans

159,571

157,576

150,527

156,632

147,881

1

8

Total consumer loans

496,201

510,298

514,441

530,364

523,943

(3)

(5)

Wholesale loans (b)

Loans retained

437,507

438,468

433,611

439,162

423,837

-

3

Loans held-for-sale and loans at fair value

11,510

8,123

8,193

15,028

6,538

42

76

Total wholesale loans

449,017

446,591

441,804

454,190

430,375

1

4

Total loans

945,218

956,889

956,245

984,554

954,318

(1)

(1)

Derivative receivables

55,577

52,878

50,333

54,213

60,062

5

(7)

Receivables from customers and other (c)

32,236

27,414

20,952

30,217

26,137

18

23

Total credit-related assets

1,033,031

1,037,181

1,027,530

1,068,984

1,040,517

-

(1)

Lending-related commitments

Consumer, excluding credit card

53,591

51,491

48,922

46,066

50,630

4

6

Credit card

645,880

633,970

626,922

605,379

600,728

2

8

Wholesale

395,619

394,301

384,957

387,813

397,316

(f)

-

-

Total lending-related commitments

1,095,090

1,079,762

1,060,801

1,039,258

1,048,674

1

4

Total credit exposure

1

2

$

2,128,121

$

2,116,943

$

2,088,331

$

2,108,242

$

2,089,191

Memo: Total by category

Consumer exposure (d)

$

1,195,690

$

1,195,780

$

1,190,305

$

1,181,963

$

1,175,456

-

2

Wholesale exposures (e)

932,431

921,163

898,026

926,279

913,735

1

2

Total credit exposure

$

2,128,121

$

2,116,943

$

2,088,331

$

2,108,242

$

2,089,191

1

2

Note: The Firm provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, refer to page 28.

  1. Includes loans reported in CCB, prime mortgage and home equity loans reported in AWM, and prime mortgage loans reported in Corporate.
  2. Includes loans reported in CIB, CB and AWM business segments and Corporate.
  3. Primarily represents prime brokerage-relatedheld-for-investment customer receivables, which are classified in accrued interest and accounts receivable on the Consolidated balance sheets.
  4. Represents total consumer loans, lending-related commitments, and receivables from customers and other.
  5. Represents total wholesale loans, lending-related commitments, derivative receivables, and receivables from customers and other.
  6. The prior period amount has been revised to conform with the current period presentation.

Page 24

JPMORGAN CHASE & CO.

CREDIT-RELATEDINFORMATION, CONTINUED (in millions, except ratio data)

Sep 30, 2019

Change

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Sep 30,

2019

2019

2019

2018

2018

2019

2018

NONPERFORMING ASSETS (a)

Consumer nonaccrual loans (b)(c)

$

3,219

$

3,262

$

3,389

$

3,461

$

3,636

(1)%

(11)%

Wholesale nonaccrual loans

Loans retained

1,470

1,238

1,570

1,150

994

19

48

Loans held-for-sale and loans at fair value

262

370

313

220

14

(29)

NM

Total wholesale nonaccrual loans

1,732

1,608

1,883

1,370

1,008

8

72

Total nonaccrual loans

2

7

4,951

4,870

5,272

4,831

4,644

Derivative receivables

26

39

44

60

90

(33)

(71)

Assets acquired in loan satisfactions

366

351

300

299

300

4

22

Total nonperforming assets

5,343

5,260

5,616

5,190

5,034

2

6

Wholesale lending-related commitments (d)

446

465

455

469

252

(4)

77

Total nonperforming exposure

$

5,789

$

5,725

$

6,071

$

5,659

$

5,286

1

10

NONACCRUAL LOAN-RELATED RATIOS

Total nonaccrual loans to total loans

0.52%

0.51%

0.55%

0.49%

0.49%

Total consumer, excluding credit card nonaccrual loans to

total consumer, excluding credit card loans

0.96

0.92

0.93

0.93

0.97

Total wholesale nonaccrual loans to total

wholesale loans

0.39

0.36

0.43

0.30

0.23

  1. At September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018, and September 30, 2018, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $1.6 billion, $1.8 billion, $2.2 billion, $2.6 billion and $2.9 billion, respectively, that are 90 or more days past due; and (2) real estate owned ("REO") insured by U.S. government agencies of $50 million, $56 million, $69 million, $75 million and $78 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm's policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council ("FFIEC"). For additional information on the Firm's credit card nonaccrual and charge-off policies, refer to Note 12 of the Firm's 2018 Form 10-K.
  2. Included nonaccrual loans held-for-sale of $2 million and $31 million at September 30, 2019, and June 30, 2019, respectively. There were no nonaccrual loans held-for-sale in all other periods presented.
  3. Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.
  4. Represents commitments that are risk rated as nonaccrual.

Page 25

JPMORGAN CHASE & CO.

CREDIT-RELATEDINFORMATION, CONTINUED (in millions, except ratio data)

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

SUMMARY OF CHANGES IN THE ALLOWANCES

ALLOWANCE FOR LOAN LOSSES

Beginning balance

$

13,166

$

13,533

$

13,445

$

13,128

$

13,250

(3)%

(1)%

$

13,445

$

13,604

(1)%

Net charge-offs:

Gross charge-offs

1,676

1,704

1,642

1,532

1,459

(2)

15

5,022

4,817

4

Gross recoveries

(305)

(301)

(281)

(296)

(426)

(1)

28

(887)

(1,197)

26

Net charge-offs

1,371

1,403

1,361

1,236

1,033

(2)

33

4,135

3,620

14

Write-offs of PCI loans (a)

43

39

50

36

58

10

(26)

132

151

(13)

Provision for loan losses

1,479

1,077

1,492

1,591

968

37

53

4,048

3,294

23

Other

4

(2)

7

(2)

1

NM

300

9

1

NM

Ending balance

$

13,235

$

13,166

$

13,533

$

13,445

$

13,128

1

1

$

13,235

$

13,128

1

ALLOWANCE FOR LENDING-RELATED COMMITMENTS

Beginning balance

$

1,129

$

1,058

$

1,055

$

1,097

$

1,117

7

1

$

1,055

$

1,068

(1)

Provision for lending-related commitments

35

72

3

(43)

(20)

(51)

NM

110

29

279

Other

1

(1)

-

1

-

NM

NM

-

-

-

Ending balance

$

1,165

$

1,129

$

1,058

$

1,055

$

1,097

3

6

$

1,165

$

1,097

6

Total allowance for credit losses

$

14,400

$

14,295

$

14,591

$

14,500

$

14,225

1

1

$

14,400

$

14,225

1

NET CHARGE-OFF/(RECOVERY)RATES(b)

Consumer retained, excluding credit card loans

0.10%

0.09%

0.13%

0.09%

0.01%

0.11%

0.03%

Credit card retained loans

2.95

3.24

3.23

2.93

2.91

3.13

3.16

Total consumer retained loans

1.00

1.04

1.02

0.91

0.82

1.02

0.90

Wholesale retained loans

0.10

0.08

0.04

0.03

(0.04)

0.07

0.04

Total retained loans

0.58

0.60

0.58

0.52

0.43

0.59

0.52

Consumer retained loans, excluding credit card and

PCI loans

0.11

0.09

0.13

0.10

0.01

0.11

0.04

Consumer retained loans, excluding PCI loans

1.05

1.09

1.07

0.95

0.86

1.07

0.96

Total retained, excluding PCI loans

0.60

0.61

0.59

0.53

0.45

0.60

0.54

Memo: Average retained loans

Consumer retained, excluding credit card loans

$

340,583

$

356,568

$

370,777

$

374,686

$

375,742

(4)

(9)

$

355,865

$

374,298

(5)

Credit card retained loans

158,166

153,736

151,120

150,574

146,244

3

8

154,367

143,931

7

Total average retained consumer loans

498,749

510,304

521,897

525,260

521,986

(2)

(4)

510,232

518,229

(2)

Wholesale retained loans

433,744

434,905

434,660

426,594

420,597

-

3

434,434

413,537

5

Total average retained loans

$

932,493

$

945,209

$

956,557

$

951,854

$

942,583

(1)

(1)

$

944,666

$

931,766

1

Consumer retained, excluding credit card and

PCI loans

$

318,843

$

333,854

$

347,145

$

350,053

$

349,367

(4)

(9)

$

333,177

$

345,912

(4)

Consumer retained, excluding PCI loans

477,009

487,590

498,265

500,627

495,611

(2)

(4)

487,544

489,843

-

Total retained, excluding PCI loans

910,753

922,495

932,925

927,218

916,205

(1)

(1)

921,978

903,377

2

  1. Write-offsof PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool.
  2. The net charge-off rates exclude the write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans.

Page 26

JPMORGAN CHASE & CO.

CREDIT-RELATEDINFORMATION, CONTINUED (in millions, except ratio data)

Sep 30, 2019

Change

Sep 30,

Jun 30,

Mar 31,

Dec 31,

Sep 30,

Jun 30,

Sep 30,

2019

2019

2019

2018

2018

2019

2018

ALLOWANCE COMPONENTS AND RATIOS

ALLOWANCE FOR LOAN LOSSES

Consumer, excluding credit card

Asset-specific (a)

$

145

$

145

$

151

$

196

$

204

-%

(29)%

Formula-based

2,066

2,215

2,208

2,162

2,154

(7)

(4)

PCI

1,256

1,299

1,738

1,788

1,824

(3)

(31)

Total consumer, excluding credit card

3,467

3,659

4,097

4,146

4,182

(5)

(17)

Credit card

Asset-specific (b)

488

472

461

440

421

3

16

Formula-based

5,095

4,911

4,722

4,744

4,613

4

10

Total credit card

5,583

5,383

5,183

5,184

5,034

4

11

Total consumer

9,050

9,042

9,280

9,330

9,216

-

(2)

Wholesale

Asset-specific (a)

342

288

417

297

280

19

22

Formula-based

3,843

3,836

3,836

3,818

3,632

-

6

Total wholesale

4,185

4,124

4,253

4,115

3,912

1

7

Total allowance for loan losses

13,235

13,166

13,533

13,445

13,128

1

1

Allowance for lending-related commitments

1,165

1,129

1,058

1,055

1,097

3

6

Total allowance for credit losses

$

14,400

$

14,295

$

14,591

$

14,500

$

14,225

1

1

CREDIT RATIOS

Consumer, excluding credit card allowance, to total

consumer, excluding credit card retained loans

1.04%

1.04%

1.14%

1.11%

1.11%

Credit card allowance to total credit card retained loans

3.50

3.42

3.44

3.31

3.40

Wholesale allowance to total wholesale retained loans

0.96

0.94

0.98

0.94

0.92

Wholesale allowance to total wholesale retained loans,

excluding trade finance and conduits (c)

1.02

1.02

1.06

1.01

0.99

Total allowance to total retained loans

1.42

1.39

1.43

1.39

1.39

Consumer, excluding credit card allowance, to consumer,

excluding credit card retained nonaccrual loans (d)

108

113

121

120

115

Total allowance, excluding credit card allowance, to retained

nonaccrual loans, excluding credit card nonaccrual loans (d)

163

174

168

179

175

Wholesale allowance to wholesale retained nonaccrual loans

285

333

271

358

394

Total allowance to total retained nonaccrual loans

282

295

273

292

284

CREDIT RATIOS, excluding PCI loans

Consumer, excluding credit card allowance, to total

consumer, excluding credit card retained loans

0.71

0.72

0.70

0.67

0.67

Total allowance to total retained loans

1.32

1.28

1.28

1.23

1.23

Consumer, excluding credit card allowance, to consumer,

excluding credit card retained nonaccrual loans (d)

69

73

70

68

65

Allowance, excluding credit card allowance, to retained non-

accrual loans, excluding credit card nonaccrual loans (d)

136

145

133

140

135

Total allowance to total retained nonaccrual loans

256

266

238

253

244

  1. Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a troubled debt restructuring ("TDR").
  2. The asset-specific credit card allowance for loan losses relates to loans that have been modified in a TDR; the Firm calculates such allowance based on the loans' original contractual interest rates and does not consider any incremental penalty rates.
  3. Management uses allowance for loan losses to period-end loans retained, excluding CIB's trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of the wholesale allowance coverage ratio.
  4. For information on the Firm's nonaccrual policy for credit card loans, refer to footnote (a) on page 25.

Page 27

JPMORGAN CHASE & CO.

NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES

Non-GAAP Financial Measures

  1. 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 reportable business segments on a FTE 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 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 the lines of business.
  2. TCE, ROTCE, and TBVPS are each non-GAAP financial measures. TCE represents the Firm's common stockholders' equity (i.e., total stockholders' equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm's net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm's TCE at period-end divided by common shares at period-end. TCE, ROTCE, and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm's use of equity.
  3. The ratios of the allowance for loan losses to period-end loans retained, the allowance for loan losses to nonaccrual loans retained, and nonaccrual loans to total period-end loans excluding credit card and PCI loans, exclude the following: loans accounted for at fair value and loans held-for-sale;PCI loans; and the allowance for loan losses related to PCI loans. Additionally, net charge-offsand net charge-offrates exclude the impact of PCI loans. The ratio of the wholesale and CIB's allowance for loan losses to period-end loans retained, excluding trade finance and conduits, is calculated excluding loans accounted for at fair value, loans held-for-sale,CIB's trade finance loans and consolidated Firm- administered multi-sellerconduits, as well as their related allowances, to provide a more meaningful assessment of the respective allowance coverage ratio.
  4. In addition to reviewing net interest income and the net interest yield on a managed basis, management also reviews these metrics excluding CIB's Markets businesses to assess the performance of the Firm's lending, investing (including asset-liability management) and deposit-raising activities. The resulting metrics are referred to as non-markets related net interest income and net yield. CIB's Markets businesses are Fixed Income Markets and Equity Markets. Management believes that disclosure of non-markets related net interest income and net yield provide investors and analysts with other measures by which to analyze the non-markets-related business trends of the Firm and provides a comparable measure to other financial institutions that are primarily focused on lending, investing and deposit-raising activities.

QUARTERLY TRENDS

NINE MONTHS ENDED SEPTEMBER 30,

3Q19 Change

2019 Change

3Q19

2Q19

1Q19

4Q18

3Q18

2Q19

3Q18

2019

2018

2018

NET INTEREST INCOME EXCLUDING CIB's MARKETS

Net interest income - managed basis (a)(b)

$

14,355

$

14,536

$

14,596

$

14,509

$

14,062

(1)%

2%

$

43,487

$

41,178

6%

Less: CIB Markets net interest income

723

624

624

599

704

16

3

1,971

2,488

(21)

Net interest income excluding CIB Markets (a)

$

13,632

$

13,912

$

13,972

$

13,910

$

13,358

(2)

2

$

41,516

$

38,690

7

Average interest-earning assets (c)

$

2,365,154

$

2,339,094

$

2,298,894

$

2,254,449

$

2,203,305

1

7

$

2,334,623

2,198,909

6

Less: Average CIB Markets interest-earning assets (c)

690,593

673,480

649,180

605,730

596,784

3

16

671,236

$

589,185

14

Average interest-earning assets excluding CIB Markets

$

1,674,561

$

1,665,614

$

1,649,714

$

1,648,719

$

1,606,521

1

4

$

1,663,387

$

1,609,724

3

Net interest yield on average interest-earning assets

2.41%

2.49%

2.57%

2.55%

2.53%

2.49%

2.50%

- managed basis (c)

Net interest yield on average CIB Markets interest-earning assets (c)

0.42%

0.37%

0.39%

0.39%

0.47%

0.39%

0.56%

Net interest yield on average interest-earning assets excluding

3.23%

3.35%

3.43%

3.35%

3.30%

3.34%

3.21%

CIB Markets

  1. Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
  2. For a reconciliation of net interest income on a reported and managed basis, refer to Reconciliation from Reported to Managed Basis on page 7.
  3. In the second quarter of 2019, the Firm reclassified balances related to certain instruments from interest-earning to noninterest-earning assets, as the associated returns are recorded in principal transactions revenue and not in net interest income. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.

Key Performance Measures

  1. Core loans represent loans considered central to the Firm's ongoing businesses; core loans exclude loans classified as trading assets, runoff portfolios, discontinued portfolios and portfolios the Firm has an intent to exit.

Page 28

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JPMorgan Chase & Co. published this content on 15 October 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 October 2019 10:56:20 UTC