Current Report — Form 8-K Filing Table of Contents
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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
28
J.P. Morgan Wealth Management
Reorganization
29
Glossary of Terms and Acronyms (a)
(a) 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, 2019 (the “2019 Form 10-K”) and the Glossary of Terms and Acronyms and Line of Business Metrics on pages 192-197 and pages 198-200, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020.
JPMORGAN
CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share and ratio data)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
SELECTED INCOME STATEMENT DATA
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
Reported
Basis
Total net revenue (a)
$
29,224
$
29,147
$
32,980
$
28,192
$
28,285
—
%
3
%
$
119,543
$
115,399
4
%
Total
noninterest expense (a)
16,048
16,875
16,942
16,791
16,293
(5)
(2)
66,656
65,269
2
Pre-provision
profit (b)
13,176
12,272
16,038
11,401
11,992
7
10
52,887
50,130
5
Provision
for credit losses
(1,889)
611
10,473
8,285
1,427
NM
NM
17,480
5,585
213
NET
INCOME
12,136
9,443
4,687
2,865
8,520
29
42
29,131
36,431
(20)
Managed
Basis (c)
Total net revenue (a)
30,161
29,941
33,817
29,010
29,165
1
3
122,929
118,464
4
Total
noninterest expense (a)
16,048
16,875
16,942
16,791
16,293
(5)
(2)
66,656
65,269
2
Pre-provision
profit (b)
14,113
13,066
16,875
12,219
12,872
8
10
56,273
53,195
6
Provision
for credit losses
(1,889)
611
10,473
8,285
1,427
NM
NM
17,480
5,585
213
NET
INCOME
12,136
9,443
4,687
2,865
8,520
29
42
29,131
36,431
(20)
EARNINGS
PER SHARE DATA
Net income: Basic
$
3.80
$
2.93
$
1.39
$
0.79
$
2.58
30
47
$
8.89
$
10.75
(17)
Diluted
3.79
2.92
1.38
0.78
2.57
30
47
8.88
10.72
(17)
Average
shares: Basic
3,079.7
3,077.8
3,076.3
3,095.8
3,140.7
—
(2)
3,082.4
3,221.5
(4)
Diluted
3,085.1
3,082.8
3,081.0
3,100.7
3,148.5
—
(2)
3,087.4
3,230.4
(4)
MARKET
AND PER COMMON SHARE DATA
Market capitalization
$
387,492
$
293,451
$
286,658
$
274,323
$
429,913
32
(10)
$
387,492
$
429,913
(10)
Common
shares at period-end
3,049.4
3,048.2
3,047.6
3,047.0
3,084.0
—
(1)
3,049.4
3,084.0
(1)
Book
value per share
81.75
79.08
76.91
75.88
75.98
3
8
81.75
75.98
8
Tangible
book value per share (“TBVPS”) (b)
66.11
63.93
61.76
60.71
60.98
3
8
66.11
60.98
8
Cash
dividends declared per share
0.90
0.90
0.90
0.90
0.90
—
—
3.60
3.40
6
FINANCIAL
RATIOS (d)
Return on common equity (“ROE”)
19
%
15
%
7
%
4
%
14
%
12
%
15
%
Return
on tangible common equity (“ROTCE”) (b)
24
19
9
5
17
14
19
Return
on assets
1.42
1.14
0.58
0.40
1.22
0.91
1.33
CAPITAL
RATIOS (e)
Common equity Tier 1 (“CET1”) capital ratio
13.1
%
(f)
13.1
%
12.4
%
11.5
%
12.4
%
13.1
%
(f)
12.4
%
Tier
1 capital ratio
15.0
(f)
15.0
14.3
13.3
14.1
15.0
(f)
14.1
Total
capital ratio
17.3
(f)
17.3
16.7
15.5
16.0
17.3
(f)
16.0
Tier
1 leverage ratio
7.0
(f)
7.0
6.9
7.5
7.9
7.0
(f)
7.9
Supplementary
leverage ratio (“SLR”)
6.9
(f)
7.0
6.8
6.0
6.3
6.9
(f)
6.3
Effective
January 1, 2020, the Firm adopted the Financial Instruments – Credit Losses (“CECL”) accounting guidance, which resulted in a net increase to the allowance for credit losses of $4.3 billion and a decrease to retained earnings of $2.7 billion. Refer to Note 1 – Basis of Presentation on pages 85-86 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.
(a)In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation.
(b)Pre-provision profit, TBVPS and ROTCE are each non-GAAP
financial measures. Tangible common equity (“TCE”) is also a non-GAAP financial measure; refer to page 9 for a reconciliation of common stockholders’ equity to TCE. Refer to page 28 for a further discussion of these measures.
(c)Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.
(d)Quarterly ratios are based upon annualized amounts.
(e)The capital metrics reflect the relief provided by the Federal Reserve Board (the “Federal Reserve”) in response to the COVID-19 pandemic, including the CECL capital transition provisions that became effective in the first quarter of 2020. For the periods ended December 31, 2020, September
30, 2020, June 30, 2020 and March 31, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $5.7 billion, $6.4 billion, $6.5 billion and $4.3 billion, respectively. The SLR reflects the temporary exclusions of U.S. Treasury securities and deposits at Federal Reserve Banks that became effective in the second quarter of 2020. Refer to Regulatory Developments Relating to the COVID-19 Pandemic on pages 11-12 and Capital Risk Management on pages 49-54 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020 for additional information. Refer to Capital Risk Management on pages 85-92 of the Firm’s 2019 Form 10-K for additional information on the Firm’s
capital metrics.
(f)Estimated.
Page 2
JPMORGAN
CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
SELECTED
BALANCE SHEET DATA (period-end)
Total assets
$
3,386,071
$
3,246,076
$
3,213,616
(f)
$
3,139,431
$
2,687,379
4
%
26
%
$
3,386,071
$
2,687,379
26
%
Loans:
Consumer,
excluding credit card loans (a)(b)
318,579
322,098
323,198
311,508
317,817
(1)
—
318,579
317,817
—
Credit
card loans
144,216
140,377
141,656
154,021
168,924
3
(15)
144,216
168,924
(15)
Wholesale
loans (a)(b)
550,058
527,265
544,528
584,081
510,879
4
8
550,058
510,879
8
Total
Loans
1,012,853
989,740
1,009,382
1,049,610
997,620
2
2
1,012,853
997,620
2
Deposits:
U.S.
offices:
Noninterest-bearing
572,711
540,116
529,729
448,195
395,667
6
45
572,711
395,667
45
Interest-bearing
1,197,032
1,117,149
1,061,093
1,026,603
876,156
7
37
1,197,032
876,156
37
Non-U.S.
offices:
Noninterest-bearing
23,435
21,406
22,752
22,192
20,087
9
17
23,435
20,087
17
Interest-bearing
351,079
322,745
317,455
339,019
270,521
9
30
351,079
270,521
30
Total
deposits
2,144,257
2,001,416
1,931,029
1,836,009
1,562,431
7
37
2,144,257
1,562,431
37
Long-term
debt
281,685
279,175
317,003
299,344
291,498
1
(3)
281,685
291,498
(3)
Common
stockholders’ equity
249,291
241,050
234,403
231,199
234,337
3
6
249,291
234,337
6
Total
stockholders’ equity
279,354
271,113
264,466
261,262
261,330
3
7
279,354
261,330
7
Loans-to-deposits
ratio (b)
47
%
49
%
52
%
57
%
64
%
47
%
64
%
Headcount
255,351
256,358
256,710
256,720
256,981
—
(1)
255,351
256,981
(1)
95%
CONFIDENCE LEVEL - TOTAL VaR (c)
Average VaR
$
96
$
90
$
130
$
59
$
37
7
159
LINE
OF BUSINESS NET REVENUE (d)
Consumer & Community Banking (e)
$
12,728
$
12,895
$
12,358
$
13,287
$
13,880
(1)
(8)
$
51,268
$
55,133
(7)
Corporate
& Investment Bank
11,352
11,546
16,383
10,003
9,703
(2)
17
49,284
39,265
26
Commercial
Banking
2,463
2,285
2,400
2,165
2,296
8
7
9,313
9,264
1
Asset
& Wealth Management
3,867
3,554
3,430
3,389
3,514
9
10
14,240
13,591
5
Corporate
(249)
(339)
(754)
166
(228)
27
(9)
(1,176)
1,211
NM
TOTAL
NET REVENUE
$
30,161
$
29,941
$
33,817
$
29,010
$
29,165
1
3
$
122,929
$
118,464
4
LINE
OF BUSINESS NET INCOME/(LOSS)
Consumer & Community Banking
$
4,325
$
3,871
$
(176)
$
197
$
4,200
12
3
$
8,217
$
16,541
(50)
Corporate
& Investment Bank
5,349
4,309
5,451
1,985
2,935
24
82
17,094
11,954
43
Commercial
Banking
2,034
1,086
(681)
139
945
87
115
2,578
3,958
(35)
Asset
& Wealth Management
786
876
661
669
801
(10)
(2)
2,992
2,867
4
Corporate
(358)
(699)
(568)
(125)
(361)
49
1
(1,750)
1,111
NM
NET
INCOME
$
12,136
$
9,443
$
4,687
$
2,865
$
8,520
29
42
$
29,131
$
36,431
(20)
In
the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 21 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to page 29 for further information.
(a)In conjunction with the adoption of CECL on January 1, 2020, the Firm reclassified risk-rated business banking and auto dealer
loans held in CCB from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment. Prior-period amounts have been revised to conform with the current presentation.
(b)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation.
(c)Effective January 1, 2020, the Firm refined the scope of VaR to exclude positions related to the risk management of interest rate exposure from changes in the Firm’s own credit spread on fair value option elected liabilities, and included these positions in other sensitivity-based measures. Additionally, effective July 1, 2020,
the Firm refined the scope of VaR to exclude certain asset-backed fair value option elected loans, and included them in other sensitivity-based measures to more effectively measure the risk from these loans. In the absence of these refinements, the average Total VaR for the three months ended December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020 would have been different by $27 million, $11 million, $(8) million and $6 million, respectively.
(d)Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.
(e)In the second quarter of 2020, the Firm reclassified certain spend-based
credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation.
(f)Prior-period amounts have been revised to conform with the current presentation.
Page 3
JPMORGAN
CHASE & CO.
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share and ratio data)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
REVENUE
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
Investment
banking fees
$
2,583
$
2,187
$
2,850
$
1,866
$
1,843
18
%
40
%
$
9,486
$
7,501
26
%
Principal
transactions
3,321
4,142
7,621
2,937
2,779
(20)
20
18,021
14,018
29
Lending-
and deposit-related fees (a)
1,727
1,647
1,431
1,706
1,772
5
(3)
6,511
6,626
(2)
Asset
management, administration and commissions (a)
4,901
4,470
4,266
4,540
4,301
10
14
18,177
16,908
8
Investment
securities gains
70
473
26
233
123
(85)
(43)
802
258
211
Mortgage
fees and related income
767
1,087
917
320
474
(29)
62
3,091
2,036
52
Card
income (b)
1,297
1,169
974
995
1,335
11
(3)
4,435
5,076
(13)
Other
income
1,300
959
1,042
1,156
1,492
36
(13)
4,457
5,731
(22)
Noninterest
revenue
15,966
16,134
19,127
13,753
14,119
(1)
13
64,980
58,154
12
Interest
income
14,550
14,700
16,112
19,161
19,927
(1)
(27)
64,523
84,040
(23)
Interest
expense
1,292
1,687
2,259
4,722
5,761
(23)
(78)
9,960
26,795
(63)
Net
interest income
13,258
13,013
13,853
14,439
14,166
2
(6)
54,563
57,245
(5)
TOTAL
NET REVENUE
29,224
29,147
32,980
28,192
28,285
—
3
119,543
115,399
4
Provision
for credit losses
(1,889)
611
10,473
8,285
1,427
NM
NM
17,480
5,585
213
NONINTEREST
EXPENSE
Compensation expense
7,954
8,630
9,509
8,895
8,088
(8)
(2)
34,988
34,155
2
Occupancy
expense
1,161
1,142
1,080
1,066
1,084
2
7
4,449
4,322
3
Technology,
communications and equipment expense
2,606
2,564
2,590
2,578
2,585
2
1
10,338
9,821
5
Professional
and outside services
2,259
2,178
1,999
2,028
2,226
4
1
8,464
8,533
(1)
Marketing
(b)
725
470
481
800
847
54
(14)
2,476
3,351
(26)
Other
expense (c)
1,343
1,891
1,283
1,424
1,463
(29)
(8)
5,941
5,087
17
TOTAL
NONINTEREST EXPENSE
16,048
16,875
16,942
16,791
16,293
(5)
(2)
66,656
65,269
2
Income
before income tax expense
15,065
11,661
5,565
3,116
10,565
29
43
35,407
44,545
(21)
Income
tax expense
2,929
2,218
878
251
2,045
32
43
6,276
8,114
(f)
(23)
NET
INCOME
$
12,136
$
9,443
$
4,687
$
2,865
$
8,520
29
42
$
29,131
$
36,431
(20)
NET
INCOME PER COMMON SHARE DATA
Basic earnings per share
$
3.80
$
2.93
$
1.39
$
0.79
$
2.58
30
47
$
8.89
$
10.75
(17)
Diluted
earnings per share
3.79
2.92
1.38
0.78
2.57
30
47
8.88
10.72
(17)
FINANCIAL
RATIOS
Return on common equity (d)
19
%
15
%
7
%
4
%
14
%
12
%
15
%
Return
on tangible common equity (d)(e)
24
19
9
5
17
14
19
Return
on assets (d)
1.42
1.14
0.58
0.40
1.22
0.91
1.33
Effective
income tax rate
19.4
19.0
15.8
8.1
19.4
17.7
18.2
(f)
Overhead
ratio
55
58
51
60
58
56
57
(a)In
the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts have been revised to conform with the current presentation.
(b)In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation.
(c)Included Firmwide legal expense/(benefit) of $276 million, $524 million, $118 million, $197 million and $241 million for the three months ended December 31, 2020, September 30, 2020, June 30,
2020, March 31, 2020, and December 31, 2019, respectively, and $1.1 billion and $239 million for the full year 2020 and 2019 respectively.
(d)Quarterly ratios are based upon annualized amounts.
(e)Refer to page 28 for further discussion of ROTCE.
(f)The full year 2019 included income tax benefits of $1.1 billion due to the resolution of certain tax audits.
Page 4
JPMORGAN
CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
Dec
31, 2020
Change
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep
30,
Dec 31,
2020
2020
2020
2020
2019
2020
2019
ASSETS
Cash
and due from banks
$
24,874
$
20,816
$
20,544
$
24,001
$
21,704
19
%
15
%
Deposits
with banks
502,735
466,706
473,185
343,533
241,927
8
108
Federal
funds sold and securities purchased under
resale agreements
296,284
319,849
256,980
248,580
249,157
(7)
19
Securities
borrowed
160,635
142,441
142,704
139,839
139,758
13
15
Trading assets:
Debt
and equity instruments (a)
423,496
429,196
416,870
429,275
319,921
(1)
32
Derivative receivables
79,630
76,626
74,846
81,648
49,766
4
60
Available-for-sale
(“AFS”) securities
388,178
389,583
485,883
399,944
350,699
—
11
Held-to-maturity (”HTM”) securities, net of allowance for credit losses (b)
201,821
141,553
72,908
71,200
47,540
43
325
Investment
securities, net of allowance for credit losses (b)
589,999
531,136
558,791
471,144
398,239
11
48
Loans (a)
1,012,853
989,740
1,009,382
1,049,610
997,620
2
2
Less:
Allowance for loan losses
28,328
30,814
31,591
(c)
23,244
13,123
(8)
116
Loans, net of allowance for loan losses
984,525
958,926
977,791
1,026,366
984,497
3
—
Accrued
interest and accounts receivable
90,503
76,945
72,260
122,064
72,861
18
24
Premises and equipment
27,109
26,672
26,301
25,882
25,813
2
5
Goodwill,
MSRs and other intangible assets
53,428
51,594
51,669
51,867
53,341
4
—
Other assets (a)
152,853
145,169
141,675
175,232
130,395
5
17
TOTAL
ASSETS
$
3,386,071
$
3,246,076
$
3,213,616
$
3,139,431
$
2,687,379
4
26
LIABILITIES
Deposits
$
2,144,257
$
2,001,416
$
1,931,029
$
1,836,009
$
1,562,431
7
37
Federal
funds purchased and securities loaned or sold
under repurchase agreements
215,209
236,440
235,647
233,207
183,675
(9)
17
Short-term
borrowings
45,208
41,992
48,014
51,909
40,920
8
10
Trading liabilities:
Debt
and equity instruments
99,558
104,835
107,735
119,109
75,569
(5)
32
Derivative payables
70,623
57,658
57,477
65,087
43,708
22
62
Accounts
payable and other liabilities
232,599
234,256
231,417
(c)
253,874
210,407
(1)
11
Beneficial interests issued by consolidated VIEs
17,578
19,191
20,828
19,630
17,841
(8)
(1)
Long-term
debt
281,685
279,175
317,003
299,344
291,498
1
(3)
TOTAL LIABILITIES
3,106,717
2,974,963
2,949,150
2,878,169
2,426,049
4
28
STOCKHOLDERS’
EQUITY
Preferred stock
30,063
30,063
30,063
30,063
26,993
—
11
Common
stock
4,105
4,105
4,105
4,105
4,105
—
—
Additional paid-in capital
88,394
88,289
88,125
87,857
88,522
—
—
Retained
earnings
236,990
228,014
221,732
220,226
223,211
4
6
Accumulated other comprehensive income/(loss)
7,986
8,940
8,789
7,418
1,569
(11)
409
Shares
held in RSU Trust, at cost
—
(11)
(11)
(21)
(21)
NM
NM
Treasury stock, at cost
(88,184)
(88,287)
(88,337)
(88,386)
(83,049)
—
(6)
TOTAL
STOCKHOLDERS’ EQUITY
279,354
271,113
264,466
261,262
261,330
3
7
TOTAL LIABILITIES
AND STOCKHOLDERS’ EQUITY
$
3,386,071
$
3,246,076
$
3,213,616
$
3,139,431
$
2,687,379
4
26
(a)In
the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation.
(b)Upon adoption of the CECL accounting guidance, HTM securities are presented net of an allowance for credit losses. At December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, the allowance for credit losses on HTM securities was $78 million, $120 million, $23 million and $19 million, respectively.
(c)Prior-period amounts have been revised to conform with the current presentation.
Page 5
JPMORGAN
CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
QUARTERLY TRENDS
FULL YEAR
4Q20
Change
2020 Change
AVERAGE BALANCES
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
ASSETS
Deposits
with banks
$
507,194
$
509,979
$
477,895
$
279,748
$
272,648
(1)
%
86
%
$
444,058
$
280,004
59
%
Federal
funds sold and securities purchased under resale agreements
327,504
277,899
244,306
253,403
248,170
18
32
275,926
275,429
—
Securities
borrowed
149,146
147,184
141,328
136,127
135,374
1
10
143,472
131,291
9
Trading
assets - debt instruments (a)
319,585
322,321
345,073
304,808
280,487
(1)
14
322,936
294,958
9
Investment
securities
568,354
548,544
500,254
421,529
394,002
4
44
509,937
319,875
59
Loans
(a)
996,367
991,241
1,029,513
1,001,504
987,606
1
1
1,004,597
989,943
1
All
other interest-earning assets (a)(b)
87,496
77,806
81,320
68,430
59,257
12
48
78,784
53,779
46
Total
interest-earning assets
2,955,646
2,874,974
2,819,689
2,465,549
2,377,544
3
24
2,779,710
2,345,279
19
Trading
assets - equity and other instruments
138,477
119,905
99,115
114,479
114,112
15
21
118,055
114,323
3
Trading
assets - derivative receivables
79,300
81,300
79,298
66,309
52,860
(2)
50
76,572
53,786
42
All
other noninterest-earning assets (a)
226,395
213,978
231,166
243,895
232,754
6
(3)
228,811
228,453
—
TOTAL
ASSETS
$
3,399,818
$
3,290,157
$
3,229,268
$
2,890,232
$
2,777,270
3
22
$
3,203,148
$
2,741,841
17
LIABILITIES
Interest-bearing
deposits
$
1,529,066
$
1,434,034
$
1,375,213
$
1,216,555
$
1,154,716
7
32
$
1,389,224
$
1,115,848
24
Federal
funds purchased and securities loaned or
sold under repurchase agreements
247,276
253,779
276,815
243,922
235,481
(3)
5
255,421
227,994
12
Short-term
borrowings (c)
36,183
36,697
45,297
37,288
39,936
(1)
(9)
38,853
52,426
(26)
Trading
liabilities - debt and other interest-bearing liabilities (d)
213,989
206,643
207,322
192,950
170,049
4
26
205,255
182,105
13
Beneficial
interests issued by consolidated VIEs
18,647
19,838
20,331
18,048
19,390
(6)
(4)
19,216
22,501
(15)
Long-term
debt
237,144
267,175
269,336
243,996
248,521
(11)
(5)
254,400
247,968
3
Total
interest-bearing liabilities
2,282,305
2,218,166
2,194,314
1,952,759
1,868,093
3
22
2,162,369
1,848,842
17
Noninterest-bearing
deposits
582,517
551,565
515,304
419,631
413,582
6
41
517,527
407,219
27
Trading
liabilities - equity and other instruments
33,732
32,256
33,797
30,721
28,197
5
20
32,628
31,085
5
Trading
liabilities - derivative payables
63,551
64,599
63,178
54,990
44,361
(2)
43
61,593
42,560
45
All
other noninterest-bearing liabilities
165,978
156,711
158,204
168,195
162,490
6
2
162,267
151,717
7
TOTAL
LIABILITIES
3,128,083
3,023,297
2,964,797
2,626,296
2,516,723
3
24
2,936,384
2,481,423
18
Preferred
stock
30,063
30,063
30,063
29,406
27,669
—
9
29,899
27,511
9
Common
stockholders’ equity
241,672
236,797
234,408
234,530
232,878
2
4
236,865
232,907
2
TOTAL
STOCKHOLDERS’ EQUITY
271,735
266,860
264,471
263,936
260,547
2
4
266,764
260,418
2
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
$
3,399,818
$
3,290,157
$
3,229,268
$
2,890,232
$
2,777,270
3
22
$
3,203,148
$
2,741,841
17
AVERAGE
RATES (e)
INTEREST-EARNING ASSETS
Deposits
with banks
0.03
%
0.05
%
0.06
%
0.82
%
1.00
%
0.17
%
1.39
%
Federal
funds sold and securities purchased under resale agreements
0.41
0.57
0.99
1.74
2.05
0.88
2.23
Securities
borrowed (f)
(0.40)
(0.35)
(0.50)
0.45
0.81
(0.21)
1.20
Trading
assets - debt instruments (a)
2.32
2.29
2.42
2.74
2.87
2.44
3.12
Investment
securities
1.39
1.58
2.03
2.48
2.65
1.82
3.01
Loans
(a)
4.14
4.11
4.27
4.96
5.07
4.37
5.25
All
other interest-earning assets (a)(b)
0.89
0.94
0.99
2.60
3.49
1.30
3.99
Total
interest-earning assets
1.97
2.05
2.31
3.14
3.35
2.34
3.61
INTEREST-BEARING
LIABILITIES
Interest-bearing deposits
0.05
0.07
0.10
0.52
0.67
0.17
0.80
Federal
funds purchased and securities loaned or
sold under repurchase agreements
0.06
0.17
0.19
1.30
1.77
0.41
2.03
Short-term
borrowings (c)
0.40
0.65
1.11
1.63
1.97
0.96
2.38
Trading
liabilities - debt and other interest-bearing liabilities (d)(f)
(0.15)
(0.10)
(0.08)
0.77
1.04
0.10
1.42
Beneficial
interests issued by consolidated VIEs
0.65
0.71
1.15
2.02
2.22
1.12
2.52
Long-term
debt
1.82
1.93
2.45
2.88
3.21
2.27
3.55
Total
interest-bearing liabilities
0.23
0.30
0.41
0.97
1.22
0.46
1.45
INTEREST
RATE SPREAD
1.74
%
1.75
%
1.90
%
2.17
%
2.13
%
1.88
%
2.16
%
NET
YIELD ON INTEREST-EARNING ASSETS
1.80
%
1.82
%
1.99
%
2.37
%
2.38
%
1.98
%
2.46
%
Memo:
Net yield on interest-earning assets excluding CIB Markets (g)
2.01
%
2.05
%
2.27
%
3.01
%
3.06
%
2.30
%
3.27
%
(a) In
the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation.
(b) Includes brokerage-related held-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.
(c) Includes commercial paper.
(d) All other interest-bearing liabilities include brokerage-related customer payables.
(e) Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(f) Negative interest
income and yields are related to the impact of current interest rates combined with the fees paid on client-driven securities borrowed balances. The negative interest expense related to prime brokerage customer payables is recognized in interest expense and reported within trading liabilities - debt and all other liabilities.
(g) Net yield on interest-earning assets excluding CIB Markets is a non-GAAP financial measure. Refer to page 28 for a further discussion of this measure.
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. Refer to the notes on Non-GAAP Financial Measures on page 28 for additional information on managed basis.
The following summary table provides a reconciliation from reported U.S. GAAP results
to managed basis.
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
OTHER
INCOME
Other income - reported
$
1,300
$
959
$
1,042
$
1,156
$
1,492
36
%
(13)
%
$
4,457
$
5,731
(22)
%
Fully
taxable-equivalent adjustments (a)
840
690
730
708
757
22
11
2,968
2,534
17
Other
income - managed
$
2,140
$
1,649
$
1,772
$
1,864
$
2,249
30
(5)
$
7,425
$
8,265
(10)
TOTAL
NONINTEREST REVENUE (b)
Total noninterest revenue - reported
$
15,966
$
16,134
$
19,127
$
13,753
$
14,119
(1)
13
$
64,980
$
58,154
12
Fully
taxable-equivalent adjustments (a)
840
690
730
708
757
22
11
2,968
2,534
17
Total
noninterest revenue - managed
$
16,806
$
16,824
$
19,857
$
14,461
$
14,876
—
13
$
67,948
$
60,688
12
NET
INTEREST INCOME
Net interest income - reported
$
13,258
$
13,013
$
13,853
$
14,439
$
14,166
2
(6)
$
54,563
$
57,245
(5)
Fully
taxable-equivalent adjustments (a)
97
104
107
110
123
(7)
(21)
418
531
(21)
Net
interest income - managed
$
13,355
$
13,117
$
13,960
$
14,549
$
14,289
2
(7)
$
54,981
$
57,776
(5)
TOTAL
NET REVENUE (b)
Total net revenue - reported
$
29,224
$
29,147
$
32,980
$
28,192
$
28,285
—
3
$
119,543
$
115,399
4
Fully
taxable-equivalent adjustments (a)
937
794
837
818
880
18
6
3,386
3,065
10
Total
net revenue - managed
$
30,161
$
29,941
$
33,817
$
29,010
$
29,165
1
3
$
122,929
$
118,464
4
PRE-PROVISION
PROFIT
Pre-provision profit - reported
$
13,176
$
12,272
$
16,038
$
11,401
$
11,992
7
10
$
52,887
$
50,130
5
Fully
taxable-equivalent adjustments (a)
937
794
837
818
880
18
6
3,386
3,065
10
Pre-provision
profit - managed
$
14,113
$
13,066
$
16,875
$
12,219
$
12,872
8
10
$
56,273
$
53,195
6
INCOME
BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported
$
15,065
$
11,661
$
5,565
$
3,116
$
10,565
29
43
$
35,407
$
44,545
(21)
Fully
taxable-equivalent adjustments (a)
937
794
837
818
880
18
6
3,386
3,065
10
Income
before income tax expense - managed
$
16,002
$
12,455
$
6,402
$
3,934
$
11,445
28
40
$
38,793
$
47,610
(19)
INCOME
TAX EXPENSE
Income tax expense - reported
$
2,929
$
2,218
$
878
$
251
$
2,045
32
43
$
6,276
$
8,114
(23)
Fully
taxable-equivalent adjustments (a)
937
794
837
818
880
18
6
3,386
3,065
10
Income
tax expense - managed
$
3,866
$
3,012
$
1,715
$
1,069
$
2,925
28
32
$
9,662
$
11,179
(14)
OVERHEAD
RATIO
Overhead ratio - reported
55
%
58
%
51
%
60
%
58
%
56
%
57
%
Overhead
ratio - managed
53
56
50
58
56
54
55
(a)Predominantly
recognized in CIB, CB and Corporate.
(b)In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation.
Page 7
JPMORGAN
CHASE & CO.
SEGMENT RESULTS - MANAGED BASIS
(in millions)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
TOTAL
NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking (a)
$
12,728
$
12,895
$
12,358
$
13,287
$
13,880
(1)
%
(8)
%
$
51,268
$
55,133
(7)
%
Corporate
& Investment Bank
11,352
11,546
16,383
10,003
9,703
(2)
17
49,284
39,265
26
Commercial
Banking
2,463
2,285
2,400
2,165
2,296
8
7
9,313
9,264
1
Asset
& Wealth Management
3,867
3,554
3,430
3,389
3,514
9
10
14,240
13,591
5
Corporate
(249)
(339)
(754)
166
(228)
27
(9)
(1,176)
1,211
NM
TOTAL
NET REVENUE
$
30,161
$
29,941
$
33,817
$
29,010
$
29,165
1
3
$
122,929
$
118,464
4
TOTAL
NONINTEREST EXPENSE
Consumer & Community Banking (a)
$
7,042
$
6,912
$
6,767
$
7,269
$
7,116
2
(1)
$
27,990
$
28,276
(1)
Corporate
& Investment Bank
4,939
5,832
6,812
5,955
5,451
(15)
(9)
23,538
22,444
5
Commercial
Banking
950
969
893
986
941
(2)
1
3,798
3,735
2
Asset &
Wealth Management
2,756
2,443
2,323
2,435
2,442
13
13
9,957
9,747
2
Corporate
361
719
147
146
343
(50)
5
1,373
1,067
29
TOTAL
NONINTEREST EXPENSE
$
16,048
$
16,875
$
16,942
$
16,791
$
16,293
(5)
(2)
$
66,656
$
65,269
2
PRE-PROVISION
PROFIT/(LOSS)
Consumer & Community Banking
$
5,686
$
5,983
$
5,591
$
6,018
$
6,764
(5)
(16)
$
23,278
$
26,857
(13)
Corporate
& Investment Bank
6,413
5,714
9,571
4,048
4,252
12
51
25,746
16,821
53
Commercial
Banking
1,513
1,316
1,507
1,179
1,355
15
12
5,515
5,529
—
Asset
& Wealth Management
1,111
1,111
1,107
954
1,072
—
4
4,283
3,844
11
Corporate
(610)
(1,058)
(901)
20
(571)
42
(7)
(2,549)
144
NM
PRE-PROVISION
PROFIT
$
14,113
$
13,066
$
16,875
$
12,219
$
12,872
8
10
$
56,273
$
53,195
6
PROVISION
FOR CREDIT LOSSES
Consumer & Community Banking
$
(83)
$
795
$
5,828
$
5,772
$
1,207
NM
NM
$
12,312
$
4,954
149
Corporate
& Investment Bank
(581)
(81)
1,987
1,401
98
NM
NM
2,726
277
NM
Commercial
Banking
(1,181)
(147)
2,431
1,010
110
NM
NM
2,113
296
NM
Asset &
Wealth Management
(2)
(52)
223
94
13
96
NM
263
59
346
Corporate
(42)
96
4
8
(1)
NM
NM
66
(1)
NM
PROVISION
FOR CREDIT LOSSES
$
(1,889)
$
611
$
10,473
$
8,285
$
1,427
NM
NM
$
17,480
$
5,585
213
NET
INCOME/(LOSS)
Consumer & Community Banking
$
4,325
$
3,871
$
(176)
$
197
$
4,200
12
3
$
8,217
$
16,541
(50)
Corporate
& Investment Bank
5,349
4,309
5,451
1,985
2,935
24
82
17,094
11,954
43
Commercial
Banking
2,034
1,086
(681)
139
945
87
115
2,578
3,958
(35)
Asset
& Wealth Management
786
876
661
669
801
(10)
(2)
2,992
2,867
4
Corporate
(358)
(699)
(568)
(125)
(361)
49
1
(1,750)
1,111
NM
TOTAL
NET INCOME
$
12,136
$
9,443
$
4,687
$
2,865
$
8,520
29
42
$
29,131
$
36,431
(20)
In
the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 21 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to page 29 for further information.
(a)In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on
net income. Prior-period amounts have been revised to conform with the current presentation.
Page 8
JPMORGAN
CHASE & CO.
CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS
(in millions, except ratio data)
Dec
31, 2020
Change
FULL YEAR
Dec 31,
Sep 30,
Jun
30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2020 Change
2020
2020
2020
2020
2019
2020
2019
2020
2019
2019
CAPITAL
(a)
Risk-based capital metrics
Standardized
CET1
capital
$
205,066
(e)
$
197,719
$
190,867
$
183,591
$
187,753
4
%
9
%
Tier
1 capital
234,835
(e)
227,486
220,674
213,406
214,432
3
10
Total
capital
269,933
(e)
262,397
256,667
247,541
242,589
3
11
Risk-weighted
assets
1,562,381
(e)
1,514,509
1,541,365
1,598,828
1,515,869
3
3
CET1
capital ratio
13.1
%
(e)
13.1
%
12.4
%
11.5
%
12.4
%
Tier
1 capital ratio
15.0
(e)
15.0
14.3
13.3
14.1
Total capital ratio
17.3
(e)
17.3
16.7
15.5
16.0
Advanced
CET1
capital
$
205,066
(e)
$
197,719
$
190,867
$
183,591
$
187,753
4
9
Tier
1 capital
234,835
(e)
227,486
220,674
213,406
214,432
3
10
Total
capital
257,222
(e)
249,947
244,112
234,434
232,112
3
11
Risk-weighted
assets
1,485,654
(e)
1,429,334
1,450,587
1,489,134
1,397,878
4
6
CET1
capital ratio
13.8
%
(e)
13.8
%
13.2
%
12.3
%
13.4
%
Tier
1 capital ratio
15.8
(e)
15.9
15.2
14.3
15.3
Total capital ratio
17.3
(e)
17.5
16.8
15.7
16.6
Leverage-based
capital metrics
Adjusted average assets (b)
$
3,353,310
(e)
$
3,243,290
$
3,176,729
$
2,842,244
$
2,730,239
3
23
Tier
1 leverage ratio
7.0
%
(e)
7.0
%
6.9
%
7.5
%
7.9
%
Total
leverage exposure
3,396,447
(e)
3,247,392
3,228,424
3,535,822
3,423,431
5
(1)
SLR
6.9
%
(e)
7.0
%
6.8
%
6.0
%
6.3
%
TANGIBLE
COMMON EQUITY (period-end) (c)
Common stockholders’ equity
$
249,291
$
241,050
$
234,403
$
231,199
$
234,337
3
6
Less:
Goodwill
49,248
47,819
47,811
47,800
47,823
3
3
Less:
Other intangible assets
904
759
778
800
819
19
10
Add:
Certain deferred tax liabilities (d)
2,453
2,405
2,397
2,389
2,381
2
3
Total
tangible common equity
$
201,592
$
194,877
$
188,211
$
184,988
$
188,076
3
7
TANGIBLE
COMMON EQUITY (average) (c)
Common stockholders’ equity
$
241,672
$
236,797
$
234,408
$
234,530
$
232,878
2
4
$
236,865
$
232,907
2
%
Less:
Goodwill
47,842
47,820
47,805
47,812
47,819
—
—
47,820
47,620
—
Less:
Other intangible assets
752
769
791
812
831
(2)
(10)
781
789
(1)
Add:
Certain deferred tax liabilities (d)
2,416
2,401
2,393
2,385
2,375
1
2
2,399
2,328
3
Total
tangible common equity
$
195,494
$
190,609
$
188,205
$
188,291
$
186,603
3
5
$
190,663
$
186,826
2
INTANGIBLE
ASSETS (period-end)
Goodwill
$
49,248
$
47,819
$
47,811
$
47,800
$
47,823
3
3
Mortgage
servicing rights
3,276
3,016
3,080
3,267
4,699
9
(30)
Other
intangible assets
904
759
778
800
819
19
10
Total
intangible assets
$
53,428
$
51,594
$
51,669
$
51,867
$
53,341
4
—
(a)The
capital metrics reflect the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the CECL capital transition provisions that became effective in the first quarter of 2020. For the periods ended December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $5.7 billion, $6.4 billion, $6.5 billion and $4.3 billion, respectively. The SLR reflects the temporary exclusions of U.S. Treasury securities and deposits at Federal Reserve Banks that became effective in the second quarter of 2020. Refer to Regulatory Developments Relating to the COVID-19 Pandemic on pages 11-12 and Capital Risk Management on pages 49-54
of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020 for additional information. Refer to Capital Risk Management on pages 85-92 of the Firm’s 2019 Form 10-K for additional information on the Firm’s capital metrics.
(b)Adjusted average assets, for purposes of calculating the 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.
(c)Refer to page 28 for further discussion of TCE.
(d)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against
goodwill and other intangibles when calculating TCE.
(e)Estimated.
Page 9
JPMORGAN
CHASE & CO.
EARNINGS PER SHARE AND RELATED INFORMATION
(in millions, except per share and ratio data)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
EARNINGS
PER SHARE
Basic earnings per share
Net
income
$
12,136
$
9,443
$
4,687
$
2,865
$
8,520
29
%
42
%
$
29,131
$
36,431
(20)
%
Less:
Preferred stock dividends
380
381
401
421
386
—
(2)
1,583
1,587
—
Net
income applicable to common equity
11,756
9,062
4,286
2,444
8,134
30
45
27,548
34,844
(21)
Less:
Dividends and undistributed earnings allocated to
participating securities
57
47
21
13
44
21
30
138
202
(32)
Net
income applicable to common stockholders
$
11,699
$
9,015
$
4,265
$
2,431
$
8,090
30
45
$
27,410
$
34,642
(21)
Total
weighted-average basic shares outstanding
3,079.7
3,077.8
3,076.3
3,095.8
3,140.7
—
(2)
3,082.4
3,221.5
(4)
Net
income per share
$
3.80
$
2.93
$
1.39
$
0.79
$
2.58
30
47
$
8.89
$
10.75
(17)
Diluted
earnings per share
Net income applicable to common stockholders
$
11,699
$
9,015
$
4,265
$
2,431
$
8,090
30
45
$
27,410
$
34,642
(21)
Total
weighted-average basic shares outstanding
3,079.7
3,077.8
3,076.3
3,095.8
3,140.7
—
(2)
3,082.4
3,221.5
(4)
Add:
Dilutive impact of stock appreciation rights (“SARs”) and employee stock options, unvested performance share units (“PSUs”) and nondividend-earning restricted stock units (“RSUs”)
5.4
5.0
4.7
4.9
7.8
8
(31)
5.0
8.9
(44)
Total
weighted-average diluted shares outstanding
3,085.1
3,082.8
3,081.0
3,100.7
3,148.5
—
(2)
3,087.4
3,230.4
(4)
Net
income per share
$
3.79
$
2.92
$
1.38
$
0.78
$
2.57
30
47
$
8.88
$
10.72
(17)
COMMON
DIVIDENDS
Cash dividends declared per share
$
0.90
$
0.90
$
0.90
$
0.90
$
0.90
—
—
$
3.60
$
3.40
6
Dividend
payout ratio
24
%
31
%
65
%
114
%
35
%
40
%
31
%
COMMON
SHARE REPURCHASE PROGRAM (a)
Total shares of common stock repurchased
—
—
—
50.0
54.0
—
NM
50.0
213.0
(77)
Average
price paid per share of common stock
$
—
$
—
$
—
$
127.92
$
127.24
—
NM
$
127.92
$
113.26
13
Aggregate
repurchases of common stock
—
—
—
6,397
6,871
—
NM
6,397
24,121
(73)
EMPLOYEE
ISSUANCE
Shares issued from treasury stock related to employee
stock-based
compensation awards and employee stock
purchase plans
1.5
0.6
0.8
13.0
1.5
150
—
15.9
21.2
(25)
Net
impact of employee issuances on stockholders’ equity (b)
$
217
$
263
$
325
$
398
$
132
(17)
64
$
1,203
$
970
24
(a)On
March 15, 2020, in response to the COVID-19 pandemic, the Firm temporarily suspended repurchases of its common stock. Subsequently, the Federal Reserve directed all large banks, including the Firm, to discontinue net share repurchases through the end of 2020. On December 18, 2020, the Federal Reserve announced that all large banks, including the Firm, could resume share repurchases commencing in the first quarter of 2021, subject to certain restrictions. As a result, the Firm announced that its Board of Directors authorized a new common share repurchase program of $30 billion.
(b)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.
Page 10
JPMORGAN
CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
INCOME
STATEMENT
REVENUE
Lending-
and deposit-related fees (a)
$
806
$
771
$
617
$
972
$
1,032
5
%
(22)
%
$
3,166
$
3,938
(20)
%
Asset
management, administration and commissions (a)
735
703
634
708
711
5
3
2,780
2,808
(1)
Mortgage
fees and related income
766
1,076
917
320
474
(29)
62
3,079
2,035
51
Card
income (b)
923
826
667
652
905
12
2
3,068
3,412
(10)
All
other income
1,328
1,487
1,387
1,445
1,469
(11)
(10)
5,647
5,603
1
Noninterest
revenue
4,558
4,863
4,222
4,097
4,591
(6)
(1)
17,740
17,796
—
Net
interest income
8,170
8,032
8,136
9,190
9,289
2
(12)
33,528
37,337
(10)
TOTAL
NET REVENUE
12,728
12,895
12,358
13,287
13,880
(1)
(8)
51,268
55,133
(7)
Provision
for credit losses
(83)
795
5,828
5,772
1,207
NM
NM
12,312
4,954
149
NONINTEREST
EXPENSE
Compensation expense
2,734
2,804
2,694
2,782
2,668
(2)
2
11,014
10,815
2
Noncompensation
expense (b)(c)
4,308
4,108
4,073
4,487
4,448
5
(3)
16,976
17,461
(3)
TOTAL
NONINTEREST EXPENSE
7,042
6,912
6,767
7,269
7,116
2
(1)
27,990
28,276
(1)
Income/(loss)
before income tax expense/(benefit)
5,769
5,188
(237)
246
5,557
11
4
10,966
21,903
(50)
Income
tax expense/(benefit)
1,444
1,317
(61)
49
1,357
10
6
2,749
5,362
(49)
NET
INCOME/(LOSS)
$
4,325
$
3,871
$
(176)
$
197
$
4,200
12
3
$
8,217
$
16,541
(50)
REVENUE
BY LINE OF BUSINESS
Consumer & Business Banking
$
5,744
$
5,697
$
5,248
$
6,266
$
6,668
1
(14)
$
22,955
$
27,376
(16)
Home
Lending
1,456
1,714
1,687
1,161
1,250
(15)
16
6,018
5,179
16
Card
& Auto (b)
5,528
5,484
5,423
5,860
5,962
1
(7)
22,295
22,578
(1)
MORTGAGE
FEES AND RELATED INCOME DETAILS:
Net production revenue
803
765
742
319
327
5
146
2,629
1,618
62
Net
mortgage servicing revenue (d)
(37)
311
175
1
147
NM
NM
450
417
8
Mortgage
fees and related income
$
766
$
1,076
$
917
$
320
$
474
(29)
62
$
3,079
$
2,035
51
FINANCIAL
RATIOS
ROE
32
%
29
%
(2)
%
1
%
31
%
15
%
31
%
Overhead
ratio
55
54
55
55
51
55
51
In
the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 21 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to page 29 for further information.
(a)In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts
have been revised to conform with the current presentation.
(b)In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation.
(c)Included depreciation expense on leased assets of $975 million and $1.0 billion for the three months ended December 31, 2020 and September 30, 2020, and $1.1 billion for the three months ended June 30, 2020, March 31, 2020 and December 31, 2019, respectively,
and $4.2 billion and $4.0 billion for the full year 2020 and 2019, respectively.
(d)Included MSR risk management results of $(152) million, $145 million, $79 million, $(90) million and $35 million for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019, respectively, and $(18) million and $(165) million for the full year 2020 and 2019, respectively.
Page 11
JPMORGAN
CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount data)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
SELECTED
BALANCE SHEET DATA (period-end)
Total assets
$
496,654
$
487,012
$
498,607
$
513,301
$
541,316
2
%
(8)
%
$
496,654
$
541,316
(8)
%
Loans:
Consumer
& Business Banking
48,810
(d)
49,646
(d)
49,305
(d)
30,004
29,585
(2)
65
48,810
(d)
29,585
65
Home
Lending (a)(b)
182,121
188,561
195,664
205,318
213,445
(3)
(15)
182,121
213,445
(15)
Card
144,216
140,377
141,656
154,021
168,924
3
(15)
144,216
168,924
(15)
Auto
66,432
62,304
59,287
61,468
61,522
7
8
66,432
61,522
8
Total
loans
441,579
440,888
445,912
450,811
473,476
—
(7)
441,579
473,476
(7)
Deposits
958,706
909,198
885,535
783,398
723,418
5
33
958,706
723,418
33
Equity
52,000
52,000
52,000
52,000
52,000
—
—
52,000
52,000
—
SELECTED
BALANCE SHEET DATA (average)
Total assets
$
486,221
$
490,043
$
504,520
$
525,644
$
534,596
(1)
(9)
$
501,533
$
543,076
(8)
Loans:
Consumer
& Business Banking
49,506
49,596
43,442
29,570
29,192
—
70
43,064
28,859
49
Home
Lending (a)(c)
185,733
192,172
199,532
211,333
216,921
(3)
(14)
197,148
230,662
(15)
Card
141,236
140,386
142,377
162,660
162,112
1
(13)
146,633
156,325
(6)
Auto
64,342
60,345
60,306
60,893
61,100
7
5
61,476
61,862
(1)
Total
loans
440,817
442,499
445,657
464,456
469,325
—
(6)
448,321
477,708
(6)
Deposits
928,518
895,535
840,467
739,709
712,829
4
30
851,390
698,378
22
Equity
52,000
52,000
52,000
52,000
52,000
—
—
52,000
52,000
—
Headcount
122,894
122,905
123,765
124,609
125,756
—
(2)
122,894
125,756
(2)
In
the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 21 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to page 29 for further information.
(a)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised
to conform with the current presentation.
(c)Average Home Lending loans held-for sale and loans at fair value were $10.7 billion, $9.2 billion, $8.7 billion, $15.8 billion, and $19.1 billion for the three months ended December 31, 2020, September 30,
2020, June 30, 2020, March 31, 2020 and December 31, 2019, respectively, and were $11.1 billion and $14.1 billion for the full year 2020 and 2019, respectively.
(d)At December 31, 2020, September 30, 2020 and June 30, 2020, included $19.2 billion, $20.3 billion and $19.9 billion of loans, respectively, in Business Banking under the Paycheck Protection Program (“PPP”). Refer to page 61 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020 for further information on the PPP.
Page 12
JPMORGAN
CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in
millions, except ratio data)
QUARTERLY TRENDS
FULL YEAR
4Q20 Change
2020
Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
CREDIT
DATA AND QUALITY STATISTICS
Nonaccrual
loans (a)(b)(c)
$
5,675
(f)
$
5,162
(f)(i)
$
4,429
(f)
$
4,022
$
3,027
10
%
87
%
$
5,675
(f)
$
3,027
87
%
Net
charge-offs/(recoveries)
Consumer
& Business Banking
75
54
60
74
93
39
(19)
263
298
(12)
Home
Lending
(50)
8
(5)
(122)
(23)
NM
(117)
(169)
(98)
(72)
Card
767
1,028
1,178
1,313
1,231
(25)
(38)
4,286
4,848
(12)
Auto
25
5
45
48
57
400
(56)
123
206
(40)
Total
net charge-offs/(recoveries)
$
817
$
1,095
$
1,278
$
1,313
$
1,358
(25)
(40)
$
4,503
$
5,254
(14)
Net
charge-off/(recovery) rate
Consumer
& Business Banking
0.60
%
(g)
0.43
%
(g)
0.56
%
(g)
1.01
%
1.26
%
0.61
%
(g)
1.03
%
Home
Lending
(0.11)
0.02
(0.01)
(0.25)
(0.05)
(0.09)
(0.05)
Card
2.17
2.92
3.33
3.25
3.01
2.93
3.10
Auto
0.15
0.03
0.30
0.32
0.37
0.20
0.33
Total
net charge-off/(recovery) rate
0.76
1.01
1.18
1.18
1.20
1.03
1.13
30+
day delinquency rate
Home
Lending (d)(e)
1.15
%
(h)
1.62
%
(h)
1.30
%
(h)
1.48
%
1.58
%
1.15
%
(h)
1.58
%
Card
1.68
(h)
1.57
(h)
1.71
(h)
1.96
1.87
1.68
(h)
1.87
Auto
0.69
(h)
0.54
(h)
0.54
(h)
0.89
0.94
0.69
(h)
0.94
90+
day delinquency rate - Card
0.92
(h)
0.69
(h)
0.93
(h)
1.02
0.95
0.92
(h)
0.95
Allowance
for loan losses
Consumer
& Business Banking
$
1,372
$
1,372
$
1,372
$
884
$
750
—
83
$
1,372
$
750
83
Home
Lending
1,813
2,685
2,957
2,137
1,890
(32)
(4)
1,813
1,890
(4)
Card
17,800
17,800
17,800
14,950
5,683
—
213
17,800
5,683
213
Auto
1,042
1,044
1,044
732
465
—
124
1,042
465
124
Total
allowance for loan losses
$
22,027
$
22,901
$
23,173
$
18,703
$
8,788
(4)
151
$
22,027
$
8,788
151
In
the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to page 29 for further information.
(a)At December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, nonaccrual loans included $1.6 billion, $1.5 billion, $1.3 billion and $970 million of PCD loans, respectively. Prior to the adoption of CECL, nonaccrual loans excluded PCI loans as the Firm recognized interest income on each pool of PCI loans as each of the pools was performing.
(b)At December 31,
2020, September 30, 2020, June 30, 2020, March 31, 2020 and December 31, 2019, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $558 million, $851 million, $561 million, $616 million and $963 million, respectively. These amounts have been excluded based upon the government guarantee. Prior-period amounts of mortgage loans 90 or more days past due and insured by U.S. government agencies excluded from nonaccrual loans have been revised to conform with the current presentation, refer to footnote (c) for additional information.
(c)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from
trading assets to loans. Prior-period amounts have been revised to conform with the current presentation.
(e)At December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020
and December 31, 2019, excluded mortgage loans 30 or more days past due and insured by U.S. government agencies of $744 million, $1.1 billion, $826 million, $1.0 billion and $1.7 billion, respectively. These amounts have been excluded based upon the government guarantee. Prior-period amounts of mortgage loans 30 or more days past due and insured by U.S. government agencies excluded from 30+ day delinquency rate have been revised to conform with the current presentation, refer to footnote (c) for additional information.
(f)Generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic. Includes loans to customers that have exited COVID-19 payment deferral programs and are 90 or more days past due, predominantly all of which were considered collateral-dependent and charged down to the lower of amortized cost
or fair value of the underlying collateral less costs to sell.
(g)At December 31, 2020, September 30, 2020 and June 30, 2020, included $19.2 billion, $20.3 billion and $19.9 billion of loans, respectively, under the PPP. Given that PPP loans are guaranteed by the SBA, the Firm does not expect to realize material credit losses on these loans. Refer to page 61 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020 for further information on the PPP.
(h)At December 31, 2020, September 30, 2020 and June
30, 2020, the principal balance of loans under payment deferral programs offered in response to the COVID-19 pandemic were as follows: (1) $9.1 billion, $10.2 billion and $18.2 billion in Home Lending, respectively; (2) $264 million, $368 million and $4.4 billion in Card, respectively; and (3) $376 million, $411 million and $12.3 billion in Auto, respectively. Loans that are performing according to their modified terms are generally not considered delinquent.
(i)Prior-period amount has been revised to conform with the current presentation.
Page 13
JPMORGAN
CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
BUSINESS
METRICS
Number of:
Branches
4,908
4,960
4,923
4,967
4,976
(1)
%
(1)
%
4,908
4,976
(1)
%
Active
digital customers (in thousands) (a)
55,274
54,779
54,505
53,833
52,453
1
5
55,274
52,453
5
Active
mobile customers (in thousands) (b)
40,899
40,164
39,044
38,256
37,315
2
10
40,899
37,315
10
Debit
and credit card sales volume (in billions)
$
299.4
$
278.2
$
237.6
$
266.0
$
295.6
8
1
$
1,081.2
$
1,114.4
(3)
Consumer
& Business Banking
Average deposits
$
907,884
$
874,325
$
821,624
$
724,970
$
696,572
4
30
$
832,523
$
683,707
22
Deposit
margin
1.41
%
1.43
%
1.52
%
2.05
%
2.27
%
1.58
%
2.48
%
Business
banking origination volume
$
722
$
1,352
(f)
$
23,042
(f)
$
1,491
$
1,827
(47)
(60)
$
26,607
(f)
$
6,598
303
Client
investment assets
588,403
529,196
494,390
442,634
501,360
11
17
588,403
501,360
17
Home
Lending (in billions)
Mortgage origination volume by channel
Retail
$
20.1
$
20.7
$
18.0
$
14.1
$
16.4
(3)
23
$
72.9
$
51.0
43
Correspondent
12.4
8.3
6.2
14.0
16.9
49
(27)
40.9
54.2
(25)
Total
mortgage origination volume (c)
$
32.5
$
29.0
$
24.2
$
28.1
$
33.3
12
(2)
$
113.8
$
105.2
8
Total
loans serviced (period-end)
$
626.3
$
654.0
$
683.7
$
737.8
$
761.4
(4)
(18)
$
626.3
$
761.4
(18)
Third-party
mortgage loans serviced (period-end)
447.3
454.8
482.4
505.0
520.8
(2)
(14)
447.3
520.8
(14)
MSR
carrying value (period-end)
3.3
3.0
3.1
3.3
4.7
10
(30)
3.3
4.7
(30)
Ratio
of MSR carrying value (period-end) to third-party
mortgage loans serviced (period-end)
0.74
%
0.66
%
0.64
%
0.65
%
0.90
%
0.74
%
0.90
%
MSR
revenue multiple (d)
2.64
x
2.28
x
2.29
x
2.10
x
2.73
x
2.55
x
2.65
x
Credit
Card
Credit card sales volume, excluding Commercial Card (in billions)
$
197.0
$
178.1
$
148.5
$
179.1
$
204.2
11
(4)
702.7
762.8
(8)
Net
revenue rate (e)
11.22
%
10.96
%
11.02
%
10.54
%
10.65
%
10.92
%
10.48
%
Auto
Loan
and lease origination volume (in billions)
$
11.0
$
11.4
$
7.7
$
8.3
$
8.5
(4)
29
$
38.4
$
34.0
13
Average
auto operating lease assets
20,810
21,684
22,579
23,081
22,427
(4)
(7)
22,034
21,589
2
In
the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to page 29 for further information.
(a)Users of all web and/or mobile platforms who have logged in within the past 90 days.
(b)Users of all mobile platforms who have logged in within the past 90 days.
(c)Firmwide mortgage origination volume was $37.0 billion, $36.2 billion, $28.3 billion, $31.9 billion and $37.4 billion for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March
31, 2020 and December 31, 2019, respectively, and $133.4 billion and $115.9 billion for the full year 2020 and 2019, respectively.
(d)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).
(e)In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation.
(f)Included $396 million and $21.5 billion of origination volume under the PPP for the three
months ended September 30, 2020 and June 30, 2020, respectively, and $21.9 billion for the full year 2020. Refer to page 61 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020 for further information on the PPP.
Page 14
JPMORGAN
CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
INCOME
STATEMENT
REVENUE
Investment
banking fees
$
2,558
$
2,165
$
2,847
$
1,907
$
1,904
18
%
34
%
$
9,477
$
7,575
25
%
Principal
transactions
2,982
3,990
7,400
3,188
2,932
(25)
2
17,560
14,399
22
Lending-
and deposit-related fees (a)
574
546
500
450
462
5
24
2,070
1,668
24
Asset
management, administration and commissions (a)
1,226
1,086
1,148
1,261
1,059
13
16
4,721
4,400
7
All
other income
462
331
409
90
678
40
(32)
1,292
2,018
(36)
Noninterest
revenue
7,802
8,118
12,304
6,896
7,035
(4)
11
35,120
30,060
17
Net
interest income
3,550
3,428
4,079
3,107
2,668
4
33
14,164
9,205
54
TOTAL
NET REVENUE (b)
11,352
11,546
16,383
10,003
9,703
(2)
17
49,284
39,265
26
Provision
for credit losses
(581)
(81)
1,987
1,401
98
NM
NM
2,726
277
NM
NONINTEREST
EXPENSE
Compensation expense
1,958
2,651
3,997
3,006
2,377
(26)
(18)
11,612
11,180
4
Noncompensation
expense
2,981
3,181
2,815
2,949
3,074
(6)
(3)
11,926
11,264
6
TOTAL
NONINTEREST EXPENSE
4,939
5,832
6,812
5,955
5,451
(15)
(9)
23,538
22,444
5
Income
before income tax expense
6,994
5,795
7,584
2,647
4,154
21
68
23,020
16,544
39
Income
tax expense
1,645
1,486
2,133
662
1,219
11
35
5,926
4,590
29
NET
INCOME
$
5,349
$
4,309
$
5,451
$
1,985
$
2,935
24
82
$
17,094
$
11,954
43
FINANCIAL
RATIOS
ROE
26
%
21
%
27
%
9
%
14
%
20
%
14
%
Overhead
ratio
44
51
42
60
56
48
57
Compensation
expense as percentage of total net revenue
17
23
24
30
24
24
28
REVENUE
BY BUSINESS
Investment Banking
$
2,497
$
2,087
$
3,401
$
886
$
1,823
20
37
$
8,871
$
7,215
23
Wholesale
Payments
1,427
1,332
1,387
1,414
1,489
7
(4)
5,560
5,842
(5)
Lending
193
333
270
350
250
(42)
(23)
1,146
1,021
12
Total
Banking
4,117
3,752
5,058
2,650
3,562
10
16
15,577
14,078
11
Fixed
Income Markets
3,950
4,597
7,338
4,993
3,446
(14)
15
20,878
14,418
45
Equity
Markets
1,989
1,999
2,380
2,237
1,508
(1)
32
8,605
6,494
33
Securities
Services
1,053
1,029
1,097
1,074
1,061
2
(1)
4,253
4,154
2
Credit
Adjustments & Other (c)
243
169
510
(951)
126
44
93
(29)
121
NM
Total
Markets & Securities Services
7,235
7,794
11,325
7,353
6,141
(7)
18
33,707
25,187
34
TOTAL
NET REVENUE
$
11,352
$
11,546
$
16,383
$
10,003
$
9,703
(2)
17
$
49,284
$
39,265
26
In
the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 21 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.
(a)In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts have been revised to conform with the current presentation.
(b)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 $765 million, $641 million, $686 million, $667 million and $646 million for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019, respectively and $2.8 billion and $2.3 billion for the full year 2020 and 2019, respectively.
(c)Consists primarily of credit valuation adjustments (“CVA”) managed centrally within CIB and funding valuation adjustments (“FVA”) on derivatives and certain components of fair value option elected liabilities. Results are presented
net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.
Page 15
JPMORGAN
CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
SELECTED
BALANCE SHEET DATA (period-end)
Assets
$
1,097,219
$
1,089,293
$
1,081,162
(g)
$
1,217,459
$
914,705
1
%
20
%
$
1,097,219
$
914,705
20
%
Loans:
Loans
retained (a)
133,296
126,841
140,770
165,376
121,733
5
9
133,296
121,733
9
Loans
held-for-sale and loans at fair value (b)
39,588
33,046
34,017
34,644
34,317
20
15
39,588
34,317
15
Total
loans
172,884
159,887
174,787
200,020
156,050
8
11
172,884
156,050
11
Equity
80,000
80,000
80,000
80,000
80,000
—
—
80,000
80,000
—
SELECTED
BALANCE SHEET DATA (average)
Assets
$
1,140,524
$
1,100,657
$
1,167,807
$
1,082,820
$
994,152
4
15
1,122,939
$
993,508
13
Trading
assets - debt and equity instruments (b)
442,443
425,789
421,953
398,504
370,859
4
19
422,237
376,182
12
Trading
assets - derivative receivables
77,946
78,339
76,710
55,133
45,153
(1)
73
72,065
48,196
50
Loans:
Loans
retained (a)
128,765
131,187
154,038
128,838
119,412
(2)
8
135,676
122,371
11
Loans
held-for-sale and loans at fair value (b)
36,228
30,205
33,538
35,211
33,694
20
8
33,792
32,884
3
Total
loans
164,993
161,392
187,576
164,049
153,106
2
8
169,468
155,255
9
Equity
80,000
80,000
80,000
80,000
80,000
—
—
80,000
80,000
—
Headcount
61,733
61,830
60,950
60,245
60,013
—
3
61,733
60,013
3
CREDIT
DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
88
$
23
$
204
$
55
$
43
283
105
$
370
$
183
102
Nonperforming
assets:
Nonaccrual loans:
Nonaccrual
loans retained (c)
1,008
1,178
1,195
689
308
(14)
227
1,008
308
227
Nonaccrual
loans held-for-sale and loans at fair value (b)(d)
1,662
2,111
1,510
766
644
(21)
158
1,662
644
158
Total
nonaccrual loans
2,670
3,289
2,705
1,455
952
(19)
180
2,670
952
180
Derivative
receivables
56
140
108
85
30
(60)
87
56
30
87
Assets
acquired in loan satisfactions
85
88
35
43
70
(3)
21
85
70
21
Total
nonperforming assets
2,811
3,517
2,848
1,583
1,052
(20)
167
2,811
1,052
167
Allowance
for credit losses:
Allowance for loan losses
2,366
2,863
3,039
(g)
1,422
1,202
(17)
97
2,366
1,202
97
Allowance
for lending-related commitments
1,534
1,706
1,634
(g)
1,468
848
(10)
81
1,534
848
81
Total
allowance for credit losses
3,900
4,569
4,673
2,890
2,050
(15)
90
3,900
2,050
90
Net
charge-off/(recovery) rate (a)(e)
0.27
%
0.07
%
0.53
%
0.17
%
0.14
%
0.27
%
0.15
%
Allowance
for loan losses to period-end loans retained (a)
1.77
2.26
2.16
(g)
0.86
0.99
1.77
0.99
Allowance
for loan losses to period-end loans retained,
excluding trade finance and conduits (f)
2.54
3.15
2.87
(g)
1.11
1.31
2.54
1.31
Allowance
for loan losses to nonaccrual loans retained (a)(c)
235
243
254
(g)
206
390
235
390
Nonaccrual
loans to total period-end loans (b)
1.54
2.06
1.55
0.73
0.61
1.54
0.61
In
the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 21 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.
(a)Loans retained includes credit portfolio loans, loans held by consolidated Firm-administered multi-seller conduits, trade finance loans, other held-for-investment loans and overdrafts.
(b)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been
revised to conform with the current presentation.
(d)At December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020 and December
31, 2019, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $316 million, $297 million, $135 million, $124 million and $127 million, respectively. These amounts have been excluded based upon the government guarantee.
(e)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
(f)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.
(g)Prior-period amounts have been revised to conform with the current presentation.
Page 16
JPMORGAN
CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
BUSINESS
METRICS
Advisory
$
835
$
428
$
602
$
503
$
702
95
%
19
%
$
2,368
$
2,377
—
%
Equity
underwriting
718
732
977
331
382
(2)
88
2,758
1,666
66
Debt
underwriting
1,005
1,005
1,268
1,073
820
—
23
4,351
3,532
23
Total
investment banking fees
$
2,558
$
2,165
$
2,847
$
1,907
$
1,904
18
34
$
9,477
$
7,575
25
Client
deposits and other third-party liabilities (average) (a)
683,818
634,961
607,902
514,464
485,037
8
41
610,555
464,795
31
Merchant
processing volume (in billions) (b)
444.5
406.1
371.9
374.8
402.9
9
10
$
1,597.3
$
1,511.5
6
Assets
under custody (“AUC”) (period-end) (in billions)
$
30,980
$
28,628
$
27,447
$
24,409
$
26,831
8
15
$
30,980
$
26,831
15
95%
Confidence Level - Total CIB VaR (average) (c)
CIB trading VaR by risk type: (d)
Fixed
income
$
106
$
93
$
129
$
60
$
39
14
172
Foreign
exchange
12
13
9
7
5
(8)
140
Equities
23
26
27
20
18
(12)
28
Commodities
and other
36
33
32
10
7
9
414
Diversification
benefit to CIB trading VaR (e)
(85)
(76)
(69)
(40)
(32)
(12)
(166)
CIB
trading VaR (d)
92
89
128
57
37
3
149
Credit
portfolio VaR (f)
12
15
22
9
5
(20)
140
Diversification
benefit to CIB VaR (e)
(13)
(14)
(23)
(8)
(5)
7
(160)
CIB
VaR
$
91
$
90
$
127
$
58
$
37
1
146
(a)Client
deposits and other third-party liabilities pertain to the Wholesale Payments and Securities Services businesses.
(b)Represents total merchant processing volume across CIB, CCB and CB.
(c)Effective January 1, 2020, the Firm refined the scope of VaR to exclude positions related to the risk management of interest rate exposure from changes in the Firm’s own credit spread on fair value option elected liabilities, and included these positions in other sensitivity-based measures. Additionally, effective July 1, 2020, the Firm refined the scope of VaR to exclude certain asset-backed fair value option elected loans, and included them in other sensitivity-based measures to more effectively measure the risk from these loans. In the absence of these
refinements, the average VaR for each of the following reported components would have been different by the following amounts: CIB fixed income of $33 million, $15 million, $(11) million and $4 million, CIB Trading VaR of $30 million, $11 million, $(11) million and $5 million and CIB VaR of $29 million, $11 million, $(8) million and $6 million for the three months ended December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020, respectively.
(d)CIB trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in CIB, including credit spread sensitivity to CVA. Refer to VaR measurement on pages 121–123 of the Firm’s 2019 Form
10-K, and pages 80–82 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020 for further information.
(e)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.
(f)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
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
INCOME
STATEMENT
REVENUE
Lending-
and deposit-related fees (a)
$
325
$
304
$
297
$
261
$
256
7
%
27
%
$
1,187
$
941
26
%
All
other income (a)
550
457
526
347
436
20
26
1,880
1,769
6
Noninterest
revenue
875
761
823
608
692
15
26
3,067
2,710
13
Net
interest income
1,588
1,524
1,577
1,557
1,604
4
(1)
6,246
6,554
(5)
TOTAL
NET REVENUE (b)
2,463
2,285
2,400
2,165
2,296
8
7
9,313
9,264
1
Provision
for credit losses
(1,181)
(147)
2,431
1,010
110
NM
NM
2,113
296
NM
NONINTEREST
EXPENSE
Compensation expense
460
492
430
472
444
(7)
4
1,854
1,785
4
Noncompensation
expense
490
477
463
514
497
3
(1)
1,944
1,950
—
TOTAL
NONINTEREST EXPENSE
950
969
893
986
941
(2)
1
3,798
3,735
2
Income/(loss)
before income tax expense/(benefit)
2,694
1,463
(924)
169
1,245
84
116
3,402
5,233
(35)
Income
tax expense/(benefit)
660
377
(243)
30
300
75
120
824
1,275
(35)
NET
INCOME/(LOSS)
$
2,034
$
1,086
$
(681)
$
139
$
945
87
115
$
2,578
$
3,958
(35)
Revenue
by product
Lending
$
1,177
$
1,138
$
1,127
$
954
$
1,027
3
15
$
4,396
$
4,057
8
Wholesale
payments
945
867
925
978
1,020
9
(7)
3,715
4,200
(12)
Investment
banking (c)
318
260
256
235
211
22
51
1,069
919
16
Other
23
20
92
(2)
38
15
(39)
133
88
51
Total
Commercial Banking net revenue (b)
$
2,463
$
2,285
$
2,400
$
2,165
$
2,296
8
7
$
9,313
$
9,264
1
Investment
banking revenue, gross (d)
$
971
$
840
$
851
$
686
$
634
16
53
$
3,348
$
2,744
22
Revenue
by client segment
Middle Market Banking
$
947
$
880
$
870
$
943
$
937
8
1
$
3,640
$
3,805
(4)
Corporate
Client Banking
856
808
866
673
758
6
13
3,203
3,119
3
Commercial
Real Estate Banking
630
576
566
541
537
9
17
2,313
2,169
7
Other
30
21
98
8
64
43
(53)
157
171
(8)
Total
Commercial Banking net revenue (b)
$
2,463
$
2,285
$
2,400
$
2,165
$
2,296
8
7
$
9,313
$
9,264
1
FINANCIAL
RATIOS
ROE
36
%
19
%
(13)
%
2
%
16
%
11
%
17
%
Overhead
ratio
39
42
37
46
41
41
40
In
the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 21 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.
(a)In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions (which are included in all other income) to lending- and deposit-related fees. Prior-period amounts have been revised to conform with the current presentation.
(b)Total net revenue included tax-equivalent adjustments from income tax credits related to equity
investments in designated community development entities and in entities established for rehabilitation of historic properties, as well as tax-exempt income related to municipal financing activities of $108 million, $82 million, $80 million, $81 million and $152 million for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019, respectively, and $351 million and $460 million for the full year 2020 and 2019, respectively.
(c)Includes CB’s share of revenue from investment banking products sold to CB clients through the CIB.
(d)Refer
to page 60 of the Firm’s 2019 Form 10-K for discussion of revenue sharing.
Page 18
JPMORGAN
CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)
QUARTERLY TRENDS
FULL
YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
SELECTED
BALANCE SHEET DATA (period-end)
Total assets
$
228,932
$
228,587
$
235,034
(d)
$
247,786
$
220,514
—
%
4
%
$
228,932
$
220,514
4
%
Loans:
Loans
retained
207,880
214,352
223,192
232,254
207,287
(3)
—
207,880
207,287
—
Loans
held-for-sale and loans at fair value
2,245
349
917
1,112
1,009
NM
122
2,245
1,009
122
Total
loans
$
210,125
$
214,701
$
224,109
$
233,366
$
208,296
(2)
1
$
210,125
$
208,296
1
Equity
22,000
22,000
22,000
22,000
22,000
—
—
22,000
22,000
—
Period-end
loans by client segment
Middle Market Banking
$
61,115
(c)
$
61,812
(c)
$
64,211
(c)
$
60,317
$
54,188
(1)
13
$
61,115
(c)
$
54,188
13
Corporate
Client Banking
47,420
49,857
56,182
69,540
51,165
(5)
(7)
47,420
51,165
(7)
Commercial
Real Estate Banking
101,146
102,484
103,117
102,799
101,951
(1)
(1)
101,146
101,951
(1)
Other
444
548
599
710
992
(19)
(55)
444
992
(55)
Total
Commercial Banking loans
$
210,125
(c)
$
214,701
(c)
$
224,109
(c)
$
233,366
$
208,296
(2)
1
$
210,125
(c)
$
208,296
1
SELECTED
BALANCE SHEET DATA (average)
Total assets
$
227,435
$
231,691
$
247,512
$
226,071
$
219,891
(2)
3
$
233,158
$
218,896
7
Loans:
Loans
retained
210,621
217,498
233,044
209,988
208,776
(3)
1
217,767
206,837
5
Loans
held-for-sale and loans at fair value
1,554
629
502
1,831
1,036
147
50
1,129
1,082
4
Total
loans
$
212,175
$
218,127
$
233,546
$
211,819
$
209,812
(3)
1
$
218,896
$
207,919
5
Client
deposits and other third-party liabilities
276,694
248,289
236,968
188,808
182,546
11
52
237,825
172,734
38
Equity
22,000
22,000
22,000
22,000
22,000
—
—
22,000
22,000
—
Average
loans by client segment
Middle Market Banking
$
60,869
$
63,029
$
66,279
$
56,045
$
54,114
(3)
12
$
61,558
$
55,690
11
Corporate
Client Banking
48,825
51,608
63,308
53,032
53,187
(5)
(8)
54,172
50,360
8
Commercial
Real Estate Banking
101,969
102,905
103,516
101,526
101,542
(1)
—
102,479
100,884
2
Other
512
585
443
1,216
969
(12)
(47)
687
985
(30)
Total
Commercial Banking loans
$
212,175
$
218,127
$
233,546
$
211,819
$
209,812
(3)
1
$
218,896
$
207,919
5
Headcount
11,675
11,704
11,802
11,779
11,629
—
—
11,675
11,629
—
CREDIT
DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)
$
162
$
60
$
79
$
100
$
89
170
82
$
401
$
160
151
Nonperforming
assets
Nonaccrual loans:
Nonaccrual
loans retained (a)
1,286
1,468
1,252
(d)
793
498
(12)
158
1,286
498
158
Nonaccrual
loans held-for-sale and loans
at fair value
120
85
125
(d)
—
—
41
NM
120
—
NM
Total
nonaccrual loans
1,406
1,553
1,377
793
498
(9)
182
1,406
498
182
Assets
acquired in loan satisfactions
24
24
24
24
25
—
(4)
24
25
(4)
Total
nonperforming assets
1,430
1,577
1,401
817
523
(9)
173
1,430
523
173
Allowance
for credit losses:
Allowance for loan losses
3,335
4,466
4,730
(d)
2,680
2,780
(25)
20
3,335
2,780
20
Allowance
for lending-related commitments
651
864
807
(d)
505
293
(25)
122
651
293
122
Total
allowance for credit losses
3,986
5,330
5,537
3,185
3,073
(25)
30
3,986
3,073
30
Net
charge-off/(recovery) rate (b)
0.31
%
0.11
%
0.14
%
0.19
%
0.17
%
0.18
%
0.08
%
Allowance
for loan losses to period-end loans retained
1.60
2.08
2.12
(d)
1.15
1.34
1.60
1.34
Allowance
for loan losses to nonaccrual loans retained (a)
(b)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
(c)At December 31, 2020, September 30, 2020 and June 30, 2020, total loans included $6.6
billion, $6.6 billion and $6.5 billion of loans, respectively, under the PPP, of which $6.4 billion, $6.4 billion and $6.3 billion was in Middle Market Banking. Refer to page 61 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2020 for further information on the PPP.
(d)Prior-period amounts have been revised to conform with the current presentation.
Page 19
JPMORGAN
CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
INCOME
STATEMENT
REVENUE
Asset
management, administration and commissions
$
2,892
$
2,646
$
2,489
$
2,583
$
2,552
9
%
13
%
$
10,610
$
9,818
8
%
All
other income
87
93
86
(54)
123
(6)
(29)
212
418
(49)
Noninterest
revenue
2,979
2,739
2,575
2,529
2,675
9
11
10,822
10,236
6
Net
interest income
888
815
855
860
839
9
6
3,418
3,355
2
TOTAL
NET REVENUE
3,867
3,554
3,430
3,389
3,514
9
10
14,240
13,591
5
Provision
for credit losses
(2)
(52)
223
94
13
96
NM
263
59
346
NONINTEREST
EXPENSE
Compensation expense
1,323
1,232
1,178
1,226
1,275
7
4
4,959
5,028
(1)
Noncompensation
expense
1,433
1,211
1,145
1,209
1,167
18
23
4,998
4,719
6
TOTAL
NONINTEREST EXPENSE
2,756
2,443
2,323
2,435
2,442
13
13
9,957
9,747
2
Income
before income tax expense
1,113
1,163
884
860
1,059
(4)
5
4,020
3,785
6
Income
tax expense
327
287
223
191
258
14
27
1,028
918
12
NET
INCOME
$
786
$
876
$
661
$
669
$
801
(10)
(2)
$
2,992
$
2,867
4
REVENUE
BY LINE OF BUSINESS
Asset Management
$
2,210
$
1,924
$
1,780
$
1,740
$
1,892
15
17
$
7,654
$
7,254
6
Wealth
Management
1,657
1,630
1,650
1,649
1,622
2
2
6,586
6,337
4
TOTAL
NET REVENUE
$
3,867
$
3,554
$
3,430
$
3,389
$
3,514
9
10
$
14,240
$
13,591
5
FINANCIAL
RATIOS
ROE
29
%
32
%
24
%
25
%
29
%
28
%
26
%
Overhead
ratio
71
69
68
72
69
70
72
Pretax
margin ratio:
Asset Management
31
30
30
24
30
29
26
Wealth
Management
26
35
21
27
30
27
30
Asset
& Wealth Management
29
33
26
25
30
28
28
Headcount
20,683
21,058
21,273
21,302
21,550
(2)
(4)
20,683
21,550
(4)
Number
of Wealth Management client advisors
2,462
2,520
2,409
2,418
2,419
(2)
2
2,462
2,419
2
In
the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to page 29 for further information.
Page 20
JPMORGAN
CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
SELECTED
BALANCE SHEET DATA (period-end)
Total assets
$
203,435
$
187,909
$
176,833
$
178,948
$
173,226
8
%
17
%
$
203,435
$
173,226
17
%
Loans
186,608
172,695
162,904
163,763
158,149
8
18
186,608
158,149
18
Deposits
198,755
166,049
160,993
160,231
142,740
20
39
198,755
142,740
39
Equity
10,500
10,500
10,500
10,500
10,500
—
—
10,500
10,500
—
SELECTED
BALANCE SHEET DATA (average)
Total assets
$
193,077
$
181,901
$
175,938
$
174,885
$
168,192
6
15
$
181,483
$
161,914
12
Loans
176,758
167,645
161,196
159,513
153,734
5
15
166,311
147,404
13
Deposits
180,348
162,589
160,102
144,570
138,182
11
31
161,955
135,265
20
Equity
10,500
10,500
10,500
10,500
10,500
—
—
10,500
10,500
—
CREDIT
DATA AND QUALITY STATISTICS
Net charge-offs
$
(16)
$
2
$
(2)
$
2
$
3
NM
NM
$
(14)
$
29
NM
Nonaccrual
loans
785
956
768
303
115
(18)
NM
785
115
NM
Allowance
for credit losses:
Allowance for loan losses
598
580
646
436
350
3
71
598
350
71
Allowance
for lending-related commitments
38
41
28
14
19
(7)
100
38
19
100
Total
allowance for credit losses
636
621
674
450
369
2
72
636
369
72
Net
charge-off/(recovery) rate
(0.04)
%
—
%
—
%
0.01
%
0.01
%
(0.01)
%
0.02
%
Allowance
for loan losses to period-end loans
0.32
0.34
0.40
0.27
0.22
0.32
0.22
Allowance
for loan losses to nonaccrual loans
76
61
84
144
304
76
304
Nonaccrual
loans to period-end loans
0.42
0.55
0.47
0.19
0.07
0.42
0.07
In
the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to page 29 for further information.
Page 21
JPMORGAN
CHASE & CO.
ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)
Dec
31, 2020
Change
FULL YEAR
Dec 31,
Sep 30,
Jun
30,
Mar 31,
Dec 31,
Sep 30,
Dec 31,
2020 Change
CLIENT ASSETS
2020
2020
2020
2020
2019
2020
2019
2020
2019
2019
Assets
by asset class
Liquidity
$
641
$
674
$
704
$
619
$
539
(5)
%
19
%
$
641
$
539
19
%
Fixed
income
671
650
618
574
591
3
14
671
591
14
Equity
595
499
448
361
463
19
29
595
463
29
Multi-asset
656
593
566
517
596
11
10
656
596
10
Alternatives
153
144
140
139
139
6
10
153
139
10
TOTAL
ASSETS UNDER MANAGEMENT
2,716
2,560
2,476
2,210
2,328
6
17
2,716
2,328
17
Custody/brokerage/administration/deposits
936
810
765
681
761
16
23
936
761
23
TOTAL
CLIENT ASSETS
$
3,652
$
3,370
$
3,241
$
2,891
$
3,089
8
18
$
3,652
$
3,089
18
Assets
by client segment
Private Banking
$
689
$
650
$
631
$
577
$
628
6
10
$
689
$
628
10
Institutional
1,273
1,245
1,228
1,107
1,081
2
18
1,273
1,081
18
Retail
754
665
617
526
619
13
22
754
619
22
TOTAL
ASSETS UNDER MANAGEMENT
$
2,716
$
2,560
$
2,476
$
2,210
$
2,328
6
17
$
2,716
$
2,328
17
Private
Banking
$
1,581
$
1,422
$
1,360
$
1,233
$
1,359
11
16
$
1,581
$
1,359
16
Institutional
1,311
1,278
1,259
1,128
1,106
3
19
1,311
1,106
19
Retail
760
670
622
530
624
13
22
760
624
22
TOTAL
CLIENT ASSETS
$
3,652
$
3,370
$
3,241
$
2,891
$
3,089
8
18
$
3,652
$
3,089
18
Assets
under management rollforward
Beginning balance
$
2,560
$
2,476
$
2,210
$
2,328
$
2,210
$
2,328
$
1,958
Net
asset flows:
Liquidity
(36)
(30)
93
77
38
104
61
Fixed
income
8
22
18
—
9
48
104
Equity
14
9
11
(1)
(1)
33
(11)
Multi-asset
10
(1)
(2)
(2)
5
5
2
Alternatives
1
2
3
—
1
6
2
Market/performance/other
impacts
159
82
143
(192)
66
192
212
Ending
balance
$
2,716
$
2,560
$
2,476
$
2,210
$
2,328
$
2,716
$
2,328
Client
assets rollforward
Beginning balance
$
3,370
$
3,241
$
2,891
$
3,089
$
2,930
$
3,089
$
2,619
Net
asset flows
39
11
135
91
59
276
176
Market/performance/other
impacts
243
118
215
(289)
100
287
294
Ending
balance
$
3,652
$
3,370
$
3,241
$
2,891
$
3,089
$
3,652
$
3,089
In
the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to page 29 for further information.
Page 22
JPMORGAN
CHASE & CO.
CORPORATE
FINANCIAL HIGHLIGHTS
(in millions, except headcount data)
QUARTERLY
TRENDS
FULL YEAR
4Q20 Change
2020 Change
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
INCOME
STATEMENT
REVENUE
Principal
transactions
$
273
$
87
$
(2)
$
(113)
$
(234)
214
%
NM
$
245
$
(461)
NM
Investment
securities gains
70
466
26
233
123
(85)
(43)
%
795
258
208
%
All
other income
249
(210)
(91)
211
(6)
NM
NM
159
89
79
Noninterest
revenue
592
343
(67)
331
(117)
73
NM
1,199
(114)
NM
Net
interest income
(841)
(682)
(687)
(165)
(111)
(23)
NM
(2,375)
1,325
NM
TOTAL
NET REVENUE (a)
(249)
(339)
(754)
166
(228)
27
(9)
(1,176)
1,211
NM
Provision
for credit losses
(42)
96
4
8
(1)
NM
NM
66
(1)
NM
NONINTEREST
EXPENSE
361
719
147
146
343
(50)
5
1,373
1,067
29
Income/(loss)
before income tax expense/(benefit)
(568)
(1,154)
(905)
12
(570)
51
—
(2,615)
145
NM
Income
tax expense/(benefit)
(210)
(455)
(337)
137
(209)
54
—
(865)
(966)
(d)
10
NET
INCOME/(LOSS)
$
(358)
$
(699)
$
(568)
$
(125)
$
(361)
49
1
$
(1,750)
$
1,111
NM
MEMO:
TOTAL
NET REVENUE
Treasury and CIO
(623)
(243)
(671)
169
102
(156)
NM
(1,368)
2,032
NM
Other
Corporate
374
(96)
(83)
(3)
(330)
NM
NM
192
(821)
NM
TOTAL
NET REVENUE
$
(249)
$
(339)
$
(754)
$
166
$
(228)
27
(9)
$
(1,176)
$
1,211
NM
NET
INCOME/(LOSS)
Treasury and CIO
(587)
(349)
(550)
83
22
(68)
NM
(1,403)
1,394
NM
Other
Corporate
229
(350)
(18)
(208)
(383)
NM
NM
(347)
(283)
(23)
TOTAL
NET INCOME/(LOSS)
$
(358)
$
(699)
$
(568)
$
(125)
$
(361)
49
1
$
(1,750)
$
1,111
NM
SELECTED
BALANCE SHEET DATA (period-end)
Total assets
$
1,359,831
$
1,253,275
$
1,221,980
$
981,937
$
837,618
9
62
$
1,359,831
$
837,618
62
Loans
1,657
1,569
1,670
1,650
1,649
6
—
1,657
1,649
—
Headcount
38,366
38,861
38,920
38,785
38,033
(1)
1
38,366
38,033
1
SUPPLEMENTAL
INFORMATION
TREASURY and CIO
Investment
securities gains
$
70
$
466
$
26
$
233
$
123
(85)
(43)
$
795
$
258
208
Available-for-sale
securities (average)
410,803
442,943
426,470
372,954
350,100
(7)
17
413,367
283,205
46
Held-to-maturity
securities (average)
155,525
103,596
71,713
46,673
42,125
50
269
94,569
34,939
171
Investment
securities portfolio (average)
$
566,328
$
546,539
$
498,183
$
419,627
$
392,225
4
44
$
507,936
$
318,144
60
Available-for-sale
securities (period-end)
386,065
387,663
483,752
397,891
348,876
—
11
386,065
348,876
11
Held-to-maturity
securities, net of allowance for credit losses (period-end) (b)(c)
201,821
141,553
72,908
71,200
47,540
43
325
201,821
47,540
325
Investment
securities portfolio, net of allowance for credit losses (period-end) (b)
$
587,886
$
529,216
$
556,660
$
469,091
$
396,416
11
48
$
587,886
$
396,416
48
(a)Included
tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of $55 million, $62 million, $63 million, $61 million and $73 million for the three months ended December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019, respectively, and $241 million and $314 million for the full year 2020 and 2019, respectively.
(b)Upon adoption of the CECL accounting guidance, HTM securities are presented net of an allowance for credit losses. At December 31, 2020, September 30, 2020, June
30, 2020, and March 31, 2020, the allowance for credit losses on HTM securities was $78 million, $120 million, $23 million and $19 million, respectively.
(c)During 2020, the Firm transferred $164.2 billion of investment securities from AFS to HTM for capital management purposes, comprised of $63.7 billion, $74.4 billion and $26.1 billion in the fourth, third and first quarters of 2020, respectively.
(d)The full year 2019 included income tax benefits of $1.1 billion due to the resolution of certain tax audits.
Page 23
JPMORGAN
CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
Dec
31, 2020
Change
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep
30,
Dec 31,
2020
2020
2020
2020
2019
2020
2019
CREDIT EXPOSURE
Consumer,
excluding credit card loans (a)
Loans retained
$
302,127
$
305,106
$
307,005
$
293,779
$
294,999
(1)
%
2
%
Loans
held-for-sale and loans at fair value (b)
16,452
16,992
16,193
17,729
22,818
(3)
(28)
Total consumer, excluding credit card loans
318,579
322,098
323,198
311,508
317,817
(1)
—
Credit
card loans
Loans retained
143,432
139,590
141,656
154,021
168,924
3
(15)
Loans
held-for-sale
784
787
—
—
—
—
NM
Total credit card loans
144,216
140,377
141,656
154,021
168,924
3
(15)
Total
consumer loans
462,795
462,475
464,854
465,529
486,741
—
(5)
Wholesale
loans (c)
Loans retained
514,947
500,841
516,787
555,289
481,678
3
7
Loans
held-for-sale and loans at fair value (b)
35,111
26,424
27,741
28,792
29,201
33
20
Total wholesale loans
550,058
527,265
544,528
584,081
510,879
4
8
Total
loans
1,012,853
989,740
1,009,382
1,049,610
997,620
2
2
Derivative receivables
79,630
76,626
74,846
81,648
49,766
4
60
Receivables
from customers (d)
47,710
30,847
22,403
33,376
33,706
55
42
Total credit-related assets
1,140,193
1,097,213
1,106,631
1,164,634
1,081,092
4
5
Lending-related
commitments
Consumer, excluding credit card
47,910
46,425
45,348
41,535
40,169
3
19
Credit
card (e)
658,506
662,860
673,836
681,442
650,720
(1)
1
Wholesale (b)
449,863
441,235
413,357
363,245
417,510
2
8
Total
lending-related commitments
1,156,279
1,150,520
1,132,541
1,086,222
1,108,399
1
4
Total
credit exposure
$
2,296,472
$
2,247,733
$
2,239,172
$
2,250,856
$
2,189,491
2
5
Memo:
Total by category
Consumer exposure (b)(f)
$
1,169,211
$
1,171,760
$
1,184,038
$
1,188,506
$
1,177,630
—
(1)
Wholesale
exposures (b)(g)
1,127,261
1,075,973
1,055,134
1,062,350
1,011,861
5
11
Total credit exposure
$
2,296,472
$
2,247,733
$
2,239,172
$
2,250,856
$
2,189,491
2
5
Effective
January 1, 2020, the Firm adopted the CECL accounting guidance. In conjunction with the adoption of CECL, the Firm reclassified risk-rated business banking and auto dealer loans and commitments held in CCB from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment. Prior-period amounts have been revised to conform with the current presentation.
(a)Includes scored loans held in CCB, scored mortgage and home equity loans held in AWM, and scored mortgage loans held in CIB and Corporate.
(b)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation.
(c)Includes
loans held in CIB, CB, AWM, Corporate as well as risk-rated business banking and auto dealer loans held in CCB for which the wholesale methodology is applied when determining the allowance for loan losses.
(d)Receivables from customers reflect brokerage-related held-for-investment customer receivables; these are classified in accrued interest and accounts receivable on the Consolidated balance sheets.
(e)Also includes commercial card lending-related commitments primarily in CB and CIB.
(f)Represents total consumer loans and lending-related commitments.
(g)Represents total wholesale loans, lending-related commitments, derivative receivables, and receivables from customers.
Page 24
JPMORGAN
CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
Dec
31, 2020
Change
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep
30,
Dec 31,
2020
2020
2020
2020
2019
2020
2019
NONPERFORMING ASSETS (a)
Consumer
nonaccrual loans
Loans retained (b)
$
5,464
$
5,047
(f)
$
4,246
$
3,877
$
2,926
8
%
87
%
Loans
held-for-sale and loans at fair value (c)
1,003
1,358
1,001
522
440
(26)
128
Total
consumer nonaccrual loans
6,467
6,405
5,247
4,399
3,366
1
92
Wholesale
nonaccrual loans
Loans retained
3,318
3,745
3,423
1,957
1,057
(11)
214
Loans
held-for-sale and loans at fair value (c)
788
852
649
257
214
(8)
268
Total wholesale nonaccrual loans
4,106
4,597
4,072
2,214
1,271
(11)
223
Total
nonaccrual loans
10,573
(e)
11,002
(e)
9,319
(e)
6,613
4,637
(4)
128
Derivative
receivables
56
140
108
85
30
(60)
87
Assets acquired in loan satisfactions
277
320
288
364
387
(13)
(28)
Total
nonperforming assets
10,906
11,462
9,715
7,062
5,054
(5)
116
Wholesale lending-related
commitments (c)(d)
577
607
765
619
474
(f)
(5)
22
Total nonperforming exposure
$
11,483
$
12,069
$
10,480
$
7,681
$
5,528
(5)
108
NONACCRUAL
LOAN-RELATED RATIOS (e)
Total nonaccrual loans to total loans (b)(c)
1.04
%
1.11
%
0.92
%
0.63
%
0.46
%
Total
consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans (b)(c)
2.03
1.99
(f)
1.62
1.41
1.06
Total
wholesale nonaccrual loans to total
wholesale loans (c)
0.75
0.87
0.75
0.38
0.25
(a)At
December 31, 2020, September 30, 2020, June 30, 2020, March 31, 2020, and December 31, 2019, nonperforming assets excluded: (1) mortgage loans 90 or more days past due and insured by U.S. government agencies of $874 million, $1.1 billion, $696 million, $740 million and $1.1 billion, respectively; and (2) real estate owned (“REO”) insured by U.S. government agencies of $9 million, $10 million, $13 million, $29 million and $41 million, respectively. Prior-period amounts of mortgage loans 90 or more days past due and insured by U.S. government agencies excluded from nonperforming assets have been revised to conform with the current presentation, refer to footnote (c) below for additional information. 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. Refer to Note 12 of the Firm’s 2019 Form 10-K for additional information on the Firm’s credit card nonaccrual and charge-off policies.
(b)At December 31, 2020, September 30, 2020, June 30, 2020 and March 31, 2020 nonaccrual loans included $1.6 billion, $1.5 billion, $1.3 billion and $970 million of PCD loans, respectively. Prior to the adoption of CECL, nonaccrual loans excluded PCI loans as the Firm recognized interest income on each pool of PCI loans as each of the pools was performing.
(c)In
the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation.
(d)Represents commitments that are risk rated as nonaccrual.
(e)Generally excludes loans that were under payment deferral or granted other assistance, including amendments or waivers of financial covenants in response to the COVID-19 pandemic.
(f)Prior-period amounts have been revised to conform with the current presentation.
(b)Prior-period amounts have been revised to conform
with the current presentation.
(c)Upon the adoption of the CECL accounting guidance on January 1, 2020, the Firm recognized a net increase of $4.3 billion (“day 1 impact”) to the allowance for credit losses, of which $4.2 billion related to the allowance for loan losses and $98 million related to the allowance for lending-related commitments.
(d)Prior to the adoption of CECL, write-offs of PCI loans were recorded against the allowance for loan losses when actual losses for a pool exceeded estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan was recognized when the underlying loan was removed from a pool.
Page 26
JPMORGAN
CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
Dec
31, 2020
Change
Dec 31,
Sep 30,
Jun 30,
Mar 31,
Dec 31,
Sep
30,
Dec 31,
2020
2020
2020
2020
2019
2020
2019
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE
FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific
(a)
$
(7)
$
228
$
263
$
223
$
75
NM
NM
Portfolio-based
3,643
4,274
4,609
3,231
1,476
(15)
%
147
%
PCI
NA
NA
NA
NA
987
NM
NM
Total
consumer, excluding credit card
3,636
4,502
4,872
3,454
2,538
(19)
43
Credit card
Asset-specific
(b)
633
652
642
530
477
(3)
33
Portfolio-based
17,167
17,148
17,158
14,420
5,206
—
230
Total
credit card
17,800
17,800
17,800
14,950
5,683
—
213
Total consumer
21,436
22,302
22,672
18,404
8,221
(4)
161
Wholesale
Asset-specific
(c)
682
792
757
556
295
(14)
131
Portfolio-based
6,210
7,720
8,162
(g)
4,284
4,607
(20)
35
Total
wholesale
6,892
8,512
8,919
4,840
4,902
(19)
41
Total allowance for loan losses
28,328
30,814
31,591
23,244
13,123
(8)
116
Allowance
for lending-related commitments
2,409
2,823
2,710
(g)
2,147
1,191
(15)
102
Total allowance for credit losses (d)
$
30,737
$
33,637
$
34,301
$
25,391
$
14,314
(9)
115
CREDIT
RATIOS
Consumer, excluding credit card allowance, to total
consumer,
excluding credit card retained loans
1.20
%
1.48
%
1.59
%
1.18
%
0.86
%
Credit card allowance to total credit card retained loans
12.41
12.75
12.57
9.71
3.36
Wholesale
allowance to total wholesale retained loans
1.34
1.70
1.73
(g)
0.87
1.02
Wholesale allowance to total wholesale retained loans,
excluding
trade finance and conduits (e)
1.45
1.83
1.84
(g)
0.93
1.08
Total allowance to total retained loans
2.95
3.26
3.27
2.32
1.39
Consumer,
excluding credit card allowance, to consumer,
Wholesale
allowance to wholesale retained nonaccrual loans
208
227
261
(g)
247
464
Total allowance to total retained nonaccrual loans
323
350
(g)
412
398
329
(a)Includes
modified PCD loans and loans that have been modified or are reasonably expected to be modified in a troubled debt restructuring (“TDR”).
(b)The asset-specific credit card allowance for loan losses relates to loans that have been modified or are reasonably expected to be modified in a TDR; the Firm calculates this allowance based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
(c)Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified or are reasonably expected to be modified in a TDR.
(e)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.
(f)Refer to footnote (a) on page 25 for information on the Firm’s nonaccrual policy for credit card loans.
(g)Prior-period amounts have been revised to conform with the current presentation.
Page 27
JPMORGAN
CHASE & CO.
NON-GAAP FINANCIAL MEASURES
Non-GAAP Financial Measures
(a)In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews
the results of the lines of business on a managed basis. The Firm’s definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm and each of the 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.
(b)Pre-provision profit is a non-GAAP financial measure which
represents total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.
(c)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.
(d)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-seller conduits, as well as their related allowances, to provide a more meaningful assessment of the respective allowance coverage ratio.
(e)In addition to reviewing net interest income and the net yield on a managed basis, management also reviews these metrics excluding CIB Markets 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 Markets 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
FULL YEAR
4Q20 Change
2020 Change
(in millions, except rates)
4Q20
3Q20
2Q20
1Q20
4Q19
3Q20
4Q19
2020
2019
2019
Net
interest income - reported
$
13,258
$
13,013
$
13,853
$
14,439
$
14,166
2
%
(6)
%
$
54,563
$
57,245
(5)
%
Fully
taxable-equivalent adjustments
97
104
107
110
123
(7)
(21)
418
531
(21)
Net
interest income - managed basis (a)
$
13,355
$
13,117
$
13,960
$
14,549
$
14,289
2
(7)
$
54,981
$
57,776
(5)
Less:
CIB Markets net interest income
2,166
2,076
2,536
1,596
1,149
4
89
8,374
3,120
168
Net
interest income excluding CIB Markets (a)
$
11,189
$
11,041
$
11,424
$
12,953
$
13,140
1
(15)
$
46,607
$
54,656
(15)
Average
interest-earning assets (b)
$
2,955,646
$
2,874,974
$
2,819,689
$
2,465,549
$
2,377,544
3
24
$
2,779,710
$
2,345,279
19
Less:
Average CIB Markets interest-earning assets (b)
743,337
730,141
795,511
735,852
676,566
2
10
751,131
672,417
12
Average
interest-earning assets excluding CIB Markets
$
2,212,309
$
2,144,833
$
2,024,178
$
1,729,697
$
1,700,978
3
30
$
2,028,579
$
1,672,862
21
Net
yield on average interest-earning assets - managed basis
1.80
%
1.82
%
1.99
%
2.37
%
2.38
%
1.98
%
2.46
%
Net
yield on average CIB Markets interest-earning assets
1.16
1.13
1.28
0.87
0.67
1.11
0.46
Net
yield on average interest-earning assets excluding CIB Markets
2.01
2.05
2.27
3.01
3.06
2.30
3.27
(a)
Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
(b) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation.
Page 28
JPMORGAN
CHASE & CO.
J.P. MORGAN WEALTH MANAGEMENT REORGANIZATION
In the fourth quarter of 2020, the Firm transferred certain assets, liabilities, revenue, expense and headcount associated with certain wealth management clients from AWM to the J.P. Morgan Wealth Management
business unit within CCB. Prior-period amounts have been revised to conform with current presentation, including technology and support staff of approximately 850 and 800 that were transferred during the second and third quarter of 2020, respectively.
The table below represents select data realigned to CCB from AWM.
(in millions, except headcount data)
3Q20
2Q20
1Q20
4Q19
SELECTED
DATA
Net revenue
$
183
$
180
$
217
$
186
Client
investment assets (period-end)
153,128
138,247
119,635
143,324
Headcount
946
1,676
2,528
2,641
The
chart below provides a mapping of the Firm’s prior reporting to the current presentation for the impacted business segments.
(a)Effective in the first quarter of 2021, Asset & Wealth Management’s Wealth Management business was renamed Global Private Bank.
Page 29
Dates Referenced Herein and Documents Incorporated by Reference
