JPMorgan Chase : JPMC&Co. 1Q 2024 Form 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly report pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

For the quarterly period ended	Commission file
March 31, 2024	number 1-5805

JPMorgan Chase & Co.

(Exact name of registrant as specified in its charter)

Delaware	13-2624428
(State or other jurisdiction of	(I.R.S. employer
incorporation or organization)	identification no.)
383 Madison Avenue,
New York, New York	10179
(Address of principal executive offices)	(Zip Code)
Registrant's telephone number, including area code: [phone]
Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which
		registered
Common stock	JPM	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-	JPM PR D	The New York Stock Exchange
Cumulative Preferred Stock, Series DD
Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-	JPM PR C	The New York Stock Exchange
Cumulative Preferred Stock, Series EE
Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-	JPM PR J	The New York Stock Exchange
Cumulative Preferred Stock, Series GG
Depositary Shares, each representing a one-four hundredth interest in a share of 4.55% Non-	JPM PR K	The New York Stock Exchange
Cumulative Preferred Stock, Series JJ
Depositary Shares, each representing a one-four hundredth interest in a share of 4.625% Non-	JPM PR L	The New York Stock Exchange
Cumulative Preferred Stock, Series LL
Depositary Shares, each representing a one-four hundredth interest in a share of 4.20% Non-	JPM PR M	The New York Stock Exchange
Cumulative Preferred Stock, Series MM
Alerian MLP Index ETNs due May 24, 2024	AMJ	NYSE Arca, Inc.
Guarantee of Callable Fixed Rate Notes due June 10, 2032 of JPMorgan Chase Financial Company	JPM/32	The New York Stock Exchange
LLC
Guarantee of Alerian MLP Index ETNs due January 28, 2044 of JPMorgan Chase Financial	AMJB	NYSE Arca, Inc.
Company LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Number of shares of common stock outstanding as of March 31, 2024: 2,871,667,879

FORM 10-Q

TABLE OF CONTENTS

Part I - Financial information	Page
Item 1.	Financial Statements.
	Consolidated Financial Statements - JPMorgan Chase & Co.:
	Consolidated statements of income (unaudited) for the three months ended March 31, 2024 and 2023	83
	Consolidated statements of comprehensive income (unaudited) for the three months ended March 31, 2024 and 2023	84
	Consolidated balance sheets (unaudited) at March 31, 2024 and December 31, 2023	85
	Consolidated statements of changes in stockholders' equity (unaudited) for the three months ended March 31, 2024 and	86
	2023
	Consolidated statements of cash flows (unaudited) for the three months ended March 31, 2024 and 2023	87
	Notes to Consolidated Financial Statements (unaudited)	88
	Report of Independent Registered Public Accounting Firm	174
	Consolidated Average Balance Sheets, Interest and Rates (unaudited) for the three months ended March 31, 2024 and 2023	175
	Glossary of Terms and Acronyms and Line of Business Metrics	176
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.
	Consolidated Financial Highlights	3
	Introduction	4
	Executive Overview	5
	Consolidated Results of Operations	10
	Consolidated Balance Sheets and Cash Flows Analysis	13
	Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures	16
	Business Segment Results	18
	Firmwide Risk Management	37
	Capital Risk Management	38
	Liquidity Risk Management	44
	Consumer Credit Portfolio	54
	Wholesale Credit Portfolio	58
	Investment Portfolio Risk Management	70
	Market Risk Management	71
	Country Risk Management	77
	Critical Accounting Estimates Used by the Firm	78
	Accounting and Reporting Developments	81
	Forward-Looking Statements	82
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	185
Item 4.	Controls and Procedures.	185
Part II - Other information
Item 1.	Legal Proceedings.	185
Item 1A.	Risk Factors.	185
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	185
Item 3.	Defaults Upon Senior Securities.	186
Item 4.	Mine Safety Disclosures.	186
Item 5.	Other Information.	186
Item 6.	Exhibits.	187

2

JPMorgan Chase & Co.

Consolidated financial highlights (unaudited)

As of or for the period ended, (in millions, except per share, ratio,		1Q24		4Q23		3Q23		2Q23		1Q23
employee data and where otherwise noted)
Selected income statement data
Total net revenue	$	41,934	$	38,574	$	39,874	$	41,307	$	38,349
Total noninterest expense		22,757		24,486		21,757		20,822		20,107
Pre-provision profit(a)		19,177		14,088		18,117		20,485		18,242
Provision for credit losses		1,884		2,762		1,384		2,899		2,275
Income before income tax expense		17,293		11,326		16,733		17,586		15,967
Income tax expense		3,874		2,019		3,582		3,114		3,345
Net income	$	13,419	$	9,307	$	13,151	$	14,472	$	12,622
Earnings per share data
Net income: Basic	$	4.45	$	3.04	$	4.33	$	4.76	$	4.11
Diluted		4.44		3.04		4.33		4.75		4.10
Average shares: Basic		2,908.3		2,914.4		2,927.5		2,943.8		2,968.5
Diluted		2,912.8		2,919.1		2,932.1		2,948.3		2,972.7
Market and per common share data
Market capitalization		575,195		489,320		419,254		422,661		380,803
Common shares at period-end		2,871.6		2,876.6		2,891.0		2,906.1		2,922.3
Book value per share		106.81		104.45		100.30		98.11		94.34
Tangible book value per share ("TBVPS")(a)		88.43		86.08		82.04		79.90		76.69
Cash dividends declared per share		1.15		1.05		1.05		1.00		1.00
Selected ratios and metrics
Return on common equity ("ROE")(b)		17 %		12 %	18 %	20 %	18 %
Return on tangible common equity ("ROTCE")(a)(b)		21		15		22		25		23
Return on assets(b)		1.36		0.95		1.36		1.51		1.38
Overhead ratio		54		63		55		50		52
Loans-to-deposits ratio		54		55		55		54		47
Firm Liquidity coverage ratio ("LCR") (average)		112		113		112		112		114
JPMorgan Chase Bank, N.A. LCR (average)		129		129		123		129		140
Common equity Tier 1 ("CET1") capital ratio (c)(d)		15.0		15.0		14.3		13.8		13.8
Tier 1 capital ratio(c)(d)		16.4		16.6		15.9		15.4		15.4
Total capital ratio(c)(d)		18.2		18.5		17.8		17.3		17.4
Tier 1 leverage ratio(c)		7.2		7.2		7.1		6.9		6.9
Supplementary leverage ratio ("SLR")(c)		6.1		6.1		6.0		5.8		5.9
Selected balance sheet data (period-end)
Trading assets	$	754,409	$	540,607	$	601,993	$	636,996	$	578,892
Investment securities, net of allowance for credit losses		570,679		571,552		585,380		612,203		610,075
Loans		1,309,616		1,323,706		1,310,059		1,300,069		1,128,896
Total assets		4,090,727		3,875,393		3,898,333		3,868,240		3,744,305
Deposits		2,428,409		2,400,688		2,379,526		2,398,962		2,377,253
Long-term debt		395,872		391,825		362,793		364,078		295,489
Common stockholders' equity		306,737		300,474		289,967		285,112		275,678
Total stockholders' equity		336,637		327,878		317,371		312,516		303,082
Employees		311,921		309,926		308,669		300,066		296,877
Credit quality metrics
Allowances for credit losses	$	24,695	$	24,765	$	24,155	$	24,288	$	22,774
Allowance for loan losses to total retained loans		1.77 %		1.75	%	1.73	%	1.75	%	1.85	%
Nonperforming assets	$	8,265	$	7,597	$	8,131	$	7,838	$	7,418
Net charge-offs		1,956		2,164		1,497		1,411		1,137
Net charge-off rate		0.62 %		0.68 %	0.47 %	0.47 %	0.43 %

Since the second quarter of 2023, the results of the Firm include the impact of First Republic. Refer to Business Segment Results on page 20 and Note 26 for additional information.

1. Pre-provisionprofit, TBVPS and ROTCE are each non-GAAP financial measures. Tangible common equity ("TCE") is also a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 16-17 for a further discussion of these measures.
2. Ratios are based upon annualized amounts.
3. The ratios reflect the Current Expected Credit Losses ("CECL") capital transition provisions. Refer to Note 21 of this Form 10-Q and Note 27 of JPMorgan Chase's 2023 Form 10-K for additional information.
4. Reflects the Firm's ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 38-43 for additional information.

3

INTRODUCTION

The following is Management's discussion and analysis of the financial condition and results of operations ("MD&A") of JPMorgan Chase & Co. ("JPMorgan Chase" or the "Firm") for the first quarter of 2024.

This Quarterly Report on Form 10-Q for the first quarter of 2024 ("Form 10-Q") should be read together with JPMorgan Chase's Annual Report on Form 10-K for the year ended December 31, 2023 ("2023 Form 10-K"). Refer to the Glossary of terms and acronyms and line of business metrics on pages 176-184 for definitions of terms and acronyms used throughout this Form 10-Q.

This Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase's management, speak only as of the date of this Form 10-Q and are subject to significant risks and uncertainties. Refer to Forward-looking Statements on page 82 of this Form 10-Q and Part I, Item 1A, Risk Factors on pages 9-33 of the 2023 Form 10-K for a discussion of certain of those risks and uncertainties and the factors that could cause JPMorgan Chase's actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results will be in line with any outlook information set forth herein, and the Firm does not undertake to update any forward-looking statements.

JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America ("U.S."), with operations worldwide. JPMorgan Chase had $4.1 trillion in assets and $336.6 billion in stockholders' equity as of March 31, 2024. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers, predominantly in the U.S., and many of the world's most prominent corporate, institutional and government clients globally.

JPMorgan Chase's principal bank subsidiary is JPMorgan Chase Bank, National Association ("JPMorgan Chase Bank, N.A."), a national banking association with U.S. branches in 48 states and Washington, D.C. JPMorgan Chase's principal non-bank subsidiary is J.P. Morgan Securities LLC ("J.P. Morgan Securities"), a U.S. broker-dealer. The bank and non-bank subsidiaries of JPMorgan Chase operate nationally as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. The Firm's principal operating subsidiaries outside the U.S. are J.P. Morgan Securities plc and J.P. Morgan SE ("JPMSE"), which are subsidiaries of JPMorgan Chase Bank, N.A. and are based in the United Kingdom ("U.K.") and Germany, respectively.

For management reporting purposes, the Firm's activities are organized into four major reportable business segments, as well as a Corporate segment. The Firm's consumer business is the Consumer & Community Banking ("CCB") segment. The Firm's wholesale businesses are the Corporate & Investment Bank ("CIB"), Commercial Banking ("CB"), and Asset & Wealth Management ("AWM") segments. Refer to Business Segment Results on pages 18-36 and Note 25 of this Form 10-Q, and Note 32 of JPMorgan Chase's 2023 Form 10-K, for a description of the Firm's business segments and the products and services they provide to their respective client bases. As a result of the organizational changes announced on January 25, 2024, the Firm will be reorganizing its business segments to reflect the manner in which the segments will be managed. The reorganization of the business segments will be effective in the second quarter of 2024. Refer to Recent events on page 52 of JPMorgan Chase's 2023 Form 10-K for additional information.

On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation ("FDIC"). All references in this Form 10-Q to "excluding First Republic," "including First Republic," "associated with First Republic" or "attributable to First Republic" refer to excluding or including the relevant effects of the First Republic acquisition, as well as subsequent related business and activities, as applicable. Refer to Note 26 for additional information.

The Firm's website is www.jpmorganchase.com. JPMorgan Chase makes available on its website, free of charge, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after it electronically files or furnishes such material to the U.S. Securities and Exchange Commission (the "SEC") at www.sec.gov. JPMorgan Chase makes new and important information about the Firm available on its website at https://www.jpmorganchase.com, including on the Investor Relations section of its website at https://www.jpmorganchase.com/ir. Information on the Firm's website, including documents on the website that are referenced in this Form 10-Q, is not incorporated by reference into this Form 10- Q or the Firm's other filings with the SEC.

4

EXECUTIVE OVERVIEW

This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of this Form 10-Q. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, this Form 10-Q and the 2023 Form 10-K should be read together and in their entirety.

Financial performance of JPMorgan Chase
(unaudited)		Three months ended March 31,
As of or for the period ended,
(in millions, except per share
data and ratios)		2024		2023		Change
Selected income statement
data
Noninterest revenue	$	18,852	$	17,638		7 %
Net interest income		23,082		20,711		11
Total net revenue		41,934		38,349		9
Total noninterest expense		22,757		20,107		13
Pre-provision profit		19,177		18,242		5
Provision for credit losses		1,884		2,275		(17)
Net income		13,419		12,622		6
Diluted earnings per share		4.44		4.10		8
Selected ratios and metrics
Return on common equity		17 %		18 %
Return on tangible common		21		23
equity
Book value per share	$	106.81	$	94.34		13
Tangible book value per share		88.43		76.69		15
Capital ratios(a)(b)
CET1 capital		15.0 %		13.8 %
Tier 1 capital		16.4		15.4
Total capital		18.2		17.4
Memo:
NII excluding Markets(c)	$	23,020	$	20,936		10
NIR excluding Markets(c)		11,546		10,018		15
Markets(c)		7,982		8,382		(5)
Total net revenue - managed	$	42,548	$	39,336		8
basis

As of and for the period ended March 31, 2024, the results of the Firm include the impact of First Republic. Refer to page 20 and Note 26 for additional information.

1. The ratios reflect the CECL capital transition provisions. Refer to Note 21 of this Form 10-Q and Note 27 of JPMorgan Chase's 2023 Form 10-K for additional information.
2. Reflects the Firm's ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 38-43 for additional information.
3. NII and NIR refer to net interest income and noninterest revenue, respectively. Markets consists of CIB's Fixed Income Markets and Equity Markets businesses.

Comparisons noted in the sections below are for the first quarter of 2024 versus the first quarter of 2023, unless otherwise specified.

Firmwide overview

For the first quarter of 2024, JPMorgan Chase reported net income of $13.4 billion, up 6%, earnings per share of $4.44, ROE of 17% and ROTCE of 21%. The Firm's results included a $725 million increase to the FDIC special assessment in Corporate.

• Total net revenue was $41.9 billion, up 9%, reflecting:
• • Net interest income ("NII") of $23.1 billion, up 11%, driven by the acquisition of First Republic, the impact of balance sheet mix and higher rates, as well as higher revolving balances in Card Services, partially offset by deposit margin compression, and lower average deposit balances in CCB. NII excluding Markets was $23.0 billion, up 10%.
  • Noninterest revenue ("NIR") was $18.9 billion, up 7%, driven by higher asset management fees, lower net investment securities losses in Treasury and CIO, the impact of First Republic and higher investment banking fees, partially offset by lower Markets noninterest revenue.
• Noninterest expense was $22.8 billion, up 13%, driven by higher compensation expense, including an increase in employees, the impact of First Republic and the $725 million increase to the FDIC special assessment in Corporate.
• The provision for credit losses was $1.9 billion, reflecting $2.0 billion of net charge-offs. Net charge-offs increased $819 million, predominantly driven by CCB, primarily Card Services.
  The prior year included net charge-offs of $1.1 billion and a $1.1 billion net addition to the allowance for credit losses.
• The total allowance for credit losses was $24.7 billion at March 31, 2024. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.77%, compared with 1.85% in the prior year.
• The Firm's nonperforming assets totaled $8.3 billion at March 31, 2024, up 11%, driven by wholesale nonaccrual loans, which reflects downgrades in Real Estate, concentrated in Office, and the impact of First Republic. Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 58-66 and pages 54- 57, respectively, for additional information.
• Firmwide average loans of $1.3 trillion were up 16%, predominantly driven by higher loans in CCB and CB, primarily as a result of First Republic.

5

• Firmwide average deposits of $2.4 trillion were up 2%, driven by:
• • growth in CIB due to net issuances of structured notes as a result of client demand, and net inflows in Payments and Securities Services,
  • the impact of First Republic, and
  • an increase in Corporate related to the Firm's international consumer initiatives,

largely offset by

• a decline in CCB and AWM as clients seek higher-yielding investments; in CCB, the decline in deposits was also driven by increased customer spending; and in CB, the decline was due to continued deposit attrition.

Refer to Liquidity Risk Management on pages 44-51 for additional information.

Selected capital and other metrics

• CET1 capital was $258 billion, and the Standardized and Advanced CET1 ratios were 15.0% and 15.3%, respectively.
• SLR was 6.1%.
• TBVPS grew 15%, ending the first quarter of 2024 at $88.43.
• As of March 31, 2024, the Firm had eligible end-of-periodHigh Quality Liquid Assets ("HQLA") of approximately $823 billion and unencumbered marketable securities with a fair value of approximately $673 billion, resulting in approximately $1.5 trillion of liquidity sources. Refer to Liquidity Risk Management on pages 44-51 for additional information.

Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 10-12 and pages 13-14, respectively, for a further discussion of the Firm's results, including the provision for credit losses; and Business Segment Results on page 20; and Note 5 and 26 for additional information on the FDIC special assessment and the First Republic acquisition, respectively.

Pre-provision profit, ROTCE, TCE, TBVPS, NII and NIR excluding Markets, and total net revenue on a managed basis are non- GAAP financial measures. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 16- 17 for a further discussion of each of these measures.

6

Business segment highlights

Selected business metrics for each of the Firm's four lines of business ("LOB") are presented below for the first quarter of 2024, and include the impact of First Republic, unless otherwise specified.

• Average deposits down 3%, or down 7% excluding

Credit provided and capital raised

JPMorgan Chase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during the first three months of 2024, consisting of approximately:

		First Republic; client investment assets up 46%, or
		up 25% excluding First Republic
CCB	• Average loans up 27%, or up 6% excluding First
ROE 35%		Republic; Card Services net charge-off rate of
		3.32%
	•	Debit and credit card sales volume(a) up 9%
	• Active mobile customers(b) up 7%
	•	#1 ranking for Global Investment Banking fees with
CIB		9.1% wallet share in 1Q24
ROE 18%	• Markets revenue down 5%, with Fixed Income
		Markets down 7% and Equity Markets flat
	• Gross Investment Banking and Markets(c) revenue
CB		of $913 million, up 4%
•	Average loans up 17%, or up 1% excluding First

$655 billion

$55

billion

$10

billion

$575 billion

$15 billion

Total credit provided and capital raised (including loans and commitments)

Credit for consumers

Credit for U.S. small businesses

Credit and capital for corporations and non-U.S. government entities(a)

Credit and capital for nonprofit and U.S. government entities(b)

ROE 24%		Republic; average deposits flat, or down 3%
		excluding First Republic
	•	Assets under management ("AUM") of $3.6 trillion,
AWM		up 19%
•	Average loans up 6%, or up 1% excluding First
ROE 33%
	Republic; average deposits up 2%, or down 4%
		excluding First Republic

1. Excludes Commercial Card.
2. Users of all mobile platforms who have logged in within the past 90 days. Excludes First Republic.
3. Includes gross revenues earned by the Firm that are subject to a revenue sharing arrangement between CB and the CIB for Investment Banking and Markets products sold to CB clients. This includes revenues related to fixed income and equity markets products. Refer to page 65 of the Firm's 2023 Form 10-K for a discussion of revenue sharing.

Refer to the Business Segment Results on pages 18-36 for a detailed discussion of results by business segment.

1. Credit and capital for corporations and non-U.S. government entities include Individuals and Individual Entities primarily consisting of Global Private Bank clients within AWM.
2. Includes states, municipalities, hospitals and universities.

7

Recent events

• On April 8, 2024, JPMorgan Chase announced that two of its directors, Timothy P. Flynn and Michael A. Neal, had decided to retire from the Board of Directors of the Firm when their terms expire.
• On April 8, 2024, Visa commenced an initial exchange offer expiring on May 3, 2024, for any and all outstanding shares of Visa Class B-1 common stock ("Visa B-1 shares"). Holders participating in the exchange offer would receive a combination of Visa Class B-2 common stock ("Visa B-2 shares") and Visa Class C common stock ("Visa C shares") in exchange for Visa B- 1 shares that are validly tendered and accepted for exchange by Visa. The Firm has tendered its 37.2 million Visa B-1 shares, and that tender is pending Visa's acceptance. Upon acceptance by Visa of the Firm's tender, the Visa C shares received by the Firm would be recognized at fair value, which is expected to result in a gain that may be recorded as early as the second quarter of 2024. Refer to Note 2 for additional information.

Outlook

These current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase's management, speak only as of the date of this Form 10-Q, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 82 of this Form 10-Q and Part I, Item 1A, Risk Factors on pages 9-33 of the 2023 Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorgan Chase's actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2024 will be in line with the outlook information set forth below, and the Firm does not undertake to update any forward-looking statements.

JPMorgan Chase's current outlook for full-year 2024 should be viewed against the backdrop of the global and U.S. economies, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the U.S. and other countries where the Firm does business. Each of these factors will affect the performance of the Firm. The Firm will continue to make appropriate adjustments to its businesses and operations in response to ongoing developments in the business, economic, regulatory and legal environments in which it operates.

Full-year 2024

• Management expects net interest income to be approximately $90 billion and net interest income excluding Markets to be approximately $89 billion, market dependent.
• Management expects adjusted expense to be approximately $91 billion, market dependent.
• Management expects the net charge-off rate in Card Services to be less than 3.50%.

Net interest income excluding Markets and adjusted expense are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 16-17.

8

Business Developments

First Republic acquisition

On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the FDIC, as receiver.

JPMorgan Chase's Consolidated Financial Statements as of and for the period ended March 31, 2024 reflect the impact of First Republic. Where meaningful to the disclosure, the impact of the First Republic acquisition, as well as subsequent related business and activities, are disclosed in various sections of this Form 10-Q. The Firm continues to convert certain operations, and to integrate clients, products and services, associated with the First Republic acquisition to align with the Firm's businesses and operations. The Firm expects that these actions will be largely completed by the end of 2024.

Refer to Note 26 and page 20 for additional information related to First Republic.

Regulatory developments

On March 5, 2024, the Consumer Financial Protection Bureau issued a final rule that lowers the threshold at or below which large credit card issuers, including the Firm, can charge late fees to customers on a "safe harbor" basis. The final rule also eliminates an automatic annual inflation adjustment for large credit card issuers. The effective date of this rule is May 14, 2024. The Firm does not expect a material impact to Firmwide net interest income.

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CONSOLIDATED RESULTS OF OPERATIONS

This section provides a comparative discussion of JPMorgan Chase's Consolidated Results of Operations on a reported basis for the three months ended March 31, 2024 and 2023, unless otherwise specified. Factors that relate primarily to a single business segment are discussed in more detail within that business segment's results. Refer to pages 78-80 of this Form 10-Q and pages 155-158 of JPMorgan Chase's 2023 Form 10-K for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.

Revenue

		Three months ended March 31,
(in millions)		2024		2023	Change
Investment banking fees	$	1,954	$	1,649	18 %
Principal transactions		6,790		7,615	(11)
Lending- and deposit-related fees		1,902		1,620	17
Asset management fees		4,146		3,465	20
Commissions and other fees		1,805		1,695	6
Investment securities losses		(366)		(868)	58
Mortgage fees and related income		275		221	24
Card income		1,218		1,234	(1)
Other income(a)(b)		1,128		1,007	12
Noninterest revenue		18,852		17,638	7
Net interest income		23,082		20,711	11
Total net revenue	$	41,934	$	38,349	9 %

1. Included operating lease income of $672 million and $755 million for the three months ended March 31, 2024 and 2023, respectively.
2. Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now being recognized in income tax expense. Refer to Notes 1, 5 and 13 for additional information.

Quarterly results

Investment banking fees increased, reflecting in CIB:

• higher underwriting fees that benefited from improved market conditions, and consisted of
• • an increase in debt underwriting fees predominantly driven by higher industry-wide issuance in leveraged loans and high- yield bonds, as well as higher issuance in high grade bonds reflecting wallet share gains, and
  • an increase in equity underwriting fees driven by IPO and convertible securities offerings, reflecting wallet share gains,

partially offset by

• lower advisory fees driven by a lower number of large completed transactions.

Refer to CIB segment results on pages 24-28 and Note 5 for additional information.

Principal transactions revenue decreased, reflecting in CIB the net impact of:

• lower Fixed Income Markets revenue in Rates and Commodities, partially offset by higher revenue in Securitized Products,
• higher Equity Markets revenue in Equity Derivatives and Prime Finance, and
• lower losses of $15 million in Credit Adjustments & Other compared with losses of $153 million in the prior year.

Principal transactions revenue in CIB generally has offsets across other revenue lines, including net interest income. The Firm assesses the performance of its Markets business on a total net revenue basis.

Refer to CIB results on pages 24-28 and Note 5 for additional information.

Lending- and deposit-related fees increased, reflecting:

• higher lending-related revenue predominantly driven by the amortization of the purchase discount on certain acquired lending-related commitments associated with First Republic, predominantly in AWM and CB, and
• higher other lending- and deposit-related fees in CIB and CB.

Refer to CIB, CB and AWM segment results on pages 24-28, pages 29-31 and pages 32-34, respectively, and Note 5 for additional information.

Asset management fees increased driven by strong net inflows and higher average market levels in AWM and CCB, as well as the impact of First Republic in CCB. Refer to CCB and AWM segment results on pages 21-23 and pages 32-34, respectively, and Note 5 for additional information.

Commissions and other fees increased predominantly due to higher commissions from annuity sales in CCB and higher custody fees associated with a higher level of assets under custody in CIB. Refer to CCB and CIB Segment results on pages 21-23 and pages 24-28, respectively, and Note 5 for additional information.

Investment securities losses reflected lower net losses on sales of U.S. GSE, government agency MBS and U.S. Treasuries associated with repositioning the investment securities portfolio in Treasury and CIO. Refer to Corporate segment results on pages 35-36 and Note 9 for additional information.

Mortgage fees and related income increased in Home Lending, reflecting higher production revenue, which included the impact of First Republic. Refer to CCB segment results on pages 21-23and Notes 5 and 14 for additional information.

Card income decreased due to an increase in new account origination costs, largely offset by higher annual fees, reflecting continued growth in the portfolio, in CCB.

Refer to CCB and CB segment results on pages 21-23 and page 29, respectively, and Note 5 for additional information.

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