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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

the Securities Exchange Act of 1934

For the quarterly period ended

Commission file

~~September~~June 30, ~~2022~~2023

number

1-5805

JPMorgan Chase & Co.

(Exact name of registrant as specified in its charter)


Delaware		13-2624428
(State or other jurisdiction of incorporation or organization)		(I.R.S. employer identification no.)

383 Madison Avenue,
New York,	New York	10179
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (212) 270-6000

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	JPM	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-Cumulative Preferred Stock, Series DD	JPM PR D	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-Cumulative Preferred Stock, Series EE	JPM PR C	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-Cumulative Preferred Stock, Series GG	JPM PR J	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.55% Non-Cumulative Preferred Stock, Series JJ	JPM PR K	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.625% Non-Cumulative Preferred Stock, Series LL	JPM PR L	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.20% Non-Cumulative Preferred Stock, Series MM	JPM PR M	The New York Stock Exchange
Alerian MLP Index ETNs due May 24, 2024	AMJ	NYSE Arca, Inc.
Guarantee of Callable Fixed Rate Notes due June 10, 2032 of JPMorgan Chase Financial Company LLC	JPM/32	The New York Stock Exchange

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

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

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


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

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

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

Number of shares of common stock outstanding as of ~~September~~June 30, ~~2022: 2,933,204,888~~2023: 2,906,085,273

FORM 10-Q

TABLE OF CONTENTS


Part I – Financial information		Page
Item 1.	Financial Statements.
	Consolidated Financial Statements – JPMorgan Chase & Co.:
	Consolidated statements of income (unaudited) for the three and ~~nine~~six months ended ~~September~~June ~~30,~~3 0 , 2023 and 2022 ~~and 2021~~	9096
	Consolidated statements of comprehensive income (unaudited) for the three and six ~~nine~~months ended ~~September~~June ~~30,~~3 0 , 2023 and 2022 ~~and 2021~~	9197
	Consolidated balance sheets (unaudited) at ~~September~~June ~~30, 2022~~3 0 , 2023 and December 31, ~~2021~~2022	9298
	Consolidated statements of changes in stockholders’ equity (unaudited) for the three and ~~nine~~six months ended ~~September~~June ~~30,~~3 0 , 2023 and 2022 ~~and 2021~~	9399
	Consolidated statements of cash flows (unaudited) for the ~~nine~~six months ended ~~September~~June ~~30,~~3 0 , 2023 and 2022 ~~and 2021~~	94100
	Notes to Consolidated Financial Statements (unaudited)	95101
	Report of Independent Registered Public Accounting Firm	~~181~~197
	Consolidated Average Balance Sheets, Interest and Rates (unaudited) for the three ~~and~~ ~~nine~~months ended ~~September~~June ~~30,~~3 0 , 2023 and 2022 ~~and 2021~~	~~182~~198
	Glossary of Terms and Acronyms and Line of Business Metrics	~~184~~200
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.
	Consolidated Financial Highlights	3
	Introduction	4
	Executive Overview	5
	Consolidated Results of Operations	10
	Consolidated Balance Sheets and Cash Flows Analysis	16
	Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures	1920
	Business Segment Results	2122
	Firmwide Risk Management	4447
	Capital Risk Management	4548
	Liquidity Risk Management	5154
	Consumer Credit Portfolio	5965
	Wholesale Credit Portfolio	6470
	Investment Portfolio Risk Management	7683
	Market Risk Management	7784
	Country Risk Management	82
	~~Operational Risk Management~~90	84
	Critical Accounting Estimates Used by the Firm	8591
	Accounting and Reporting Developments	8894
	Forward-Looking Statements	8995
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	~~193~~209
Item 4.	Controls and Procedures.	~~193~~209
Part II – Other information
Item 1.	Legal Proceedings.	~~193~~209
Item 1A.	Risk Factors.	~~193~~209
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	~~193~~209
Item 3.	Defaults Upon Senior Securities.	~~194~~210
Item 4.	Mine Safety Disclosures.	~~194~~210
Item 5.	Other Information.	~~194~~210
Item 6.	Exhibits.	~~194~~211

JPMorgan Chase & Co.

Consolidated financial highlights (unaudited)


As of or for the period ended, (in millions, except per share, ratio, headcount data and where otherwise noted)	As of or for the period ended, (in millions, except per share, ratio, headcount data and where otherwise noted)																Nine months ended Sept 30,						As of or for the period ended, (in millions, except per share, ratio, headcount data and where otherwise noted)																	Six months ended June 30,
		3Q22			2Q22			1Q22			4Q21			3Q21			2022			2021				2Q23				1Q23			4Q22			3Q22			2Q22			2023				2022
Selected income statement data	Selected income statement data																						Selected income statement data
Total net revenue	Total net revenue	$	32,716		$	30,715		$	30,717		$	29,257		$	29,647		$	94,148		$	92,392		Total net revenue	$	41,307			$	38,349		$	34,547		$	32,716		$	30,715		$	79,656			$	61,432
Total noninterest expense	Total noninterest expense	19,178			18,749			19,191			17,888			17,063			57,118			53,455			Total noninterest expense	20,822				20,107			19,022			19,178			18,749			40,929				37,940
Pre-provision profit(a)	Pre-provision profit(a)	13,538			11,966			11,526			11,369			12,584			37,030			38,937			Pre-provision profit(a)	20,485				18,242			15,525			13,538			11,966			38,727				23,492
Provision for credit losses	Provision for credit losses	1,537			1,101			1,463			(1,288)			(1,527)			4,101			(7,968)			Provision for credit losses	2,899				2,275			2,288			1,537			1,101			5,174				2,564
Income before income tax expense	Income before income tax expense	12,001			10,865			10,063			12,657			14,111			32,929			46,905			Income before income tax expense	17,586				15,967			13,237			12,001			10,865			33,553				20,928
Income tax expense	Income tax expense	2,264			2,216			1,781			2,258			2,424			6,261			8,970			Income tax expense	3,114				3,345			2,229			2,264			2,216			6,459				3,997
Net income	Net income	$	9,737		$	8,649		$	8,282		$	10,399		$	11,687		$	26,668		$	37,935		Net income	$	14,472			$	12,622		$	11,008		$	9,737		$	8,649		$	27,094			$	16,931

Earnings per share data	Earnings per share data																						Earnings per share data
Net income: Basic	Net income: Basic	$	3.13		$	2.77		$	2.64		$	3.33		$	3.74		$	8.53		$	12.05		Net income: Basic	$	4.76			$	4.11		$	3.58		$	3.13		$	2.77		$	8.86			$	5.40
Diluted	Diluted	3.12			2.76			2.63			3.33			3.74			8.51			12.02			Diluted	4.75				4.10			3.57			3.12			2.76			8.85				5.39
Average shares: Basic	Average shares: Basic	2,961.2			2,962.2			2,977.0			2,977.3			2,999.9			2,966.8			3,036.4			Average shares: Basic	2,943.8				2,968.5			2,962.9			2,961.2			2,962.2			2,956.1				2,969.6
Diluted	Diluted	2,965.4			2,966.3			2,981.0			2,981.8			3,005.1			2,970.9			3,041.7			Diluted	2,948.3				2,972.7			2,967.1			2,965.4			2,966.3			2,960.5				2,973.7

Market and per common share data	Market and per common share data																						Market and per common share data
Market capitalization	Market capitalization	306,520			330,237			400,379			466,206			483,748			306,520			483,748			Market capitalization	422,661				380,803			393,484			306,520			330,237			422,661				330,237
Common shares at period-end	Common shares at period-end	2,933.2			2,932.6			2,937.1			2,944.1			2,955.3			2,933.2			2,955.3			Common shares at period-end	2,906.1				2,922.3			2,934.3			2,933.2			2,932.6			2,906.1				2,932.6
Book value per share	Book value per share	87.00			86.38			86.16			88.07			86.36			87.00			86.36			Book value per share	98.11				94.34			90.29			87.00			86.38			98.11				86.38
Tangible book value per share (“TBVPS”)(a)	Tangible book value per share (“TBVPS”)(a)	69.90			69.53			69.58			71.53			69.87			69.90			69.87			Tangible book value per share (“TBVPS”)(a)	79.90				76.69			73.12			69.90			69.53			79.90				69.53
Cash dividends declared per share	Cash dividends declared per share	1.00			1.00			1.00			1.00			1.00			3.00			2.80			Cash dividends declared per share	1.00				1.00			1.00			1.00			1.00			2.00				2.00

Selected ratios and metrics	Selected ratios and metrics																						Selected ratios and metrics
Return on common equity (“ROE”)(b)	Return on common equity (“ROE”)(b)	15		%	13		%	13		%	16		%	18		%	14		%	20		%	Return on common equity (“ROE”)(b)	20		%		18		%	16		%	15		%	13		%	19		%		13		%
Return on tangible common equity (“ROTCE”)(a)(b)	Return on tangible common equity (“ROTCE”)(a)(b)	18			17			16			19			22			17			24			Return on tangible common equity (“ROTCE”)(a)(b)	25				23			20			18			17			24				16
Return on assets(b)	Return on assets(b)	1.01			0.89			0.86			1.08			1.24			0.92			1.37			Return on assets(b)	1.51				1.38			1.16			1.01			0.89			1.45				0.87
Overhead ratio	Overhead ratio	59			61			62			61			58			61			58			Overhead ratio	50				52			55			59			61			51				62
Loans-to-deposits ratio	Loans-to-deposits ratio	46			45			42			44			43			46			43			Loans-to-deposits ratio	54				47			49			46			45			54				45
Firm Liquidity coverage ratio (“LCR”) (average)(c)	Firm Liquidity coverage ratio (“LCR”) (average)(c)	113			110			110			111			112			113			112			Firm Liquidity coverage ratio (“LCR”) (average)(c)	112				114			112			113			110			112				110
JPMorgan Chase Bank, N.A. LCR (average)(c)	JPMorgan Chase Bank, N.A. LCR (average)(c)	165			169			181			178			174			165			174			JPMorgan Chase Bank, N.A. LCR (average)(c)	129				140			151			165			169			129				169
Common equity Tier 1 (“CET1”) capital ratio(d)	Common equity Tier 1 (“CET1”) capital ratio(d)	12.5			12.2			11.9			13.1			12.9			12.5			12.9			Common equity Tier 1 (“CET1”) capital ratio(d)	13.8				13.8			13.2			12.5			12.2			13.8				12.2
Tier 1 capital ratio(d)	Tier 1 capital ratio(d)	14.1			14.1			13.7			15.0			15.0			14.1			15.0			Tier 1 capital ratio(d)	15.4				15.4			14.9			14.1			14.1			15.4				14.1
Total capital ratio(d)	Total capital ratio(d)	16.0			15.7			15.4			16.8			16.9			16.0			16.9			Total capital ratio(d)	17.3				17.4			16.8			16.0			15.7			17.3				15.7
Tier 1 leverage ratio(c)(d)	Tier 1 leverage ratio(c)(d)	6.2			6.2			6.2			6.5			6.6			6.2			6.6			Tier 1 leverage ratio(c)(d)	6.9				6.9			6.6			6.2			6.2			6.9				6.2
Supplementary leverage ratio (“SLR”)(c)(d)	Supplementary leverage ratio (“SLR”)(c)(d)	5.3			5.3			5.2			5.4			5.5			5.3			5.5			Supplementary leverage ratio (“SLR”)(c)(d)	5.8				5.9			5.6			5.3			5.3			5.8				5.3

Selected balance sheet data (period-end)	Selected balance sheet data (period-end)																						Selected balance sheet data (period-end)
Trading assets	Trading assets	$	506,487		$	465,577		$	511,528		$	433,575		$	515,901		$	506,487		$	515,901		Trading assets	$	636,996			$	578,892		$	453,799		$	506,487		$	465,577		$	636,996			$	465,577
Investment securities, net of allowance for credit losses	Investment securities, net of allowance for credit losses	618,246			663,718			679,460			672,232			595,132			618,246			595,132			Investment securities, net of allowance for credit losses	612,203				610,075			631,162			618,246			663,718			612,203				663,718
Loans	Loans	1,112,633			1,104,155			1,073,285			1,077,714			1,044,615			1,112,633			1,044,615			Loans	1,300,069				1,128,896			1,135,647			1,112,633			1,104,155			1,300,069				1,104,155
Total assets	Total assets	3,773,884			3,841,314			3,954,687			3,743,567			3,757,576			3,773,884			3,757,576			Total assets	3,868,240				3,744,305			3,665,743			3,773,884			3,841,314			3,868,240				3,841,314
Deposits	Deposits	2,408,615			2,471,544			2,561,207			2,462,303			2,402,353			2,408,615			2,402,353			Deposits	2,398,962				2,377,253			2,340,179			2,408,615			2,471,544			2,398,962				2,471,544
Long-term debt	Long-term debt	287,473			288,212			293,239			301,005			298,465			287,473			298,465			Long-term debt	364,078				295,489			295,865			287,473			288,212			364,078				288,212
Common stockholders’ equity	Common stockholders’ equity	255,180			253,305			253,061			259,289			255,203			255,180			255,203			Common stockholders’ equity	285,112				275,678			264,928			255,180			253,305			285,112				253,305
Total stockholders’ equity	Total stockholders’ equity	288,018			286,143			285,899			294,127			290,041			288,018			290,041			Total stockholders’ equity	312,516				303,082			292,332			288,018			286,143			312,516				286,143
Headcount	Headcount	288,474			278,494			273,948			271,025			265,790			288,474			265,790			Headcount	300,066			(e)	296,877			293,723			288,474			278,494			300,066			(e)	278,494

Credit quality metrics	Credit quality metrics																						Credit quality metrics
Allowances for credit losses	Allowances for credit losses	$	20,797		$	20,019		$	19,591		$	18,689		$	20,528		$	20,797		$	20,528		Allowances for credit losses	$	24,288			$	22,774		$	22,204		$	20,797		$	20,019		$	24,288			$	20,019
Allowance for loan losses to total retained loans	Allowance for loan losses to total retained loans	1.70		%	1.69		%	1.69		%	1.62		%	1.86		%	1.70		%	1.86		%	Allowance for loan losses to total retained loans	1.75		%		1.85		%	1.81		%	1.70		%	1.69		%	1.75		%		1.69		%
Nonperforming assets	Nonperforming assets	$	7,243		$	7,845		$	8,605		$	8,346		$	8,882		$	7,243		$	8,882		Nonperforming assets	$	7,838			$	7,418		$	7,247		$	7,243		$	7,845		$	7,838			$	7,845
Net charge-offs	Net charge-offs	727			657			582			550			524			1,966			2,315			Net charge-offs	1,411				1,137			887			727			657			2,548				1,239
Net charge-off rate	Net charge-off rate	0.27		%	0.25		%	0.24		%	0.22		%	0.21		%	0.25		%	0.32		%	Net charge-off rate	0.47		%		0.43		%	0.33		%	0.27		%	0.25		%	0.45		%		0.24		%

As of and for the period ended June 30, 2023, the results of the Firm include the impact of the First Republic acquisition. Refer to page 24 and Note 28 for additional information.

(a)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 Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages ~~19-20~~20-21 for a further discussion of these measures.

(b)Quarterly ratios are based upon annualized amounts.

(c)For the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, the percentage represents average ratios for the three months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022.

(d)The ~~capital metrics~~ratios reflect ~~the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including~~ the Current Expected Credit Losses (“CECL”) capital transition provisions. Refer to Capital Risk Management on pages ~~45-50~~48-53 of this Form 10-Q and pages 86-96 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for additional information.

(e)Excluded 5,132 individuals associated with the First Republic acquisition who became employees effective July 2, 2023.

INTRODUCTION

The following is Management’s discussion and analysis of the financial condition and results of operations (“MD&A”) of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) for the ~~third~~second quarter of ~~2022.~~2023.

This Quarterly Report on Form 10-Q for the ~~third~~second quarter of ~~2022~~2023 (“Form 10-Q”) should be read together with JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022 (“~~2021~~2022 Form 10-K”). Refer to the Glossary of terms and acronyms and line of business metrics on pages ~~184-192~~200–208 for definitions of terms and acronyms used throughout this Form 10-Q.

This Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-Q and are subject to significant risks and uncertainties. Refer to Forward-looking Statements on page 8995 of this Form ~~10-Q and~~10-Q; Part I, Item 1A, Risk Factors on pages ~~9-33~~9-32 of the ~~2021~~2022 Form ~~10-K~~10-K; and Part II, Item 1A, Risk Factors on page 209 of this Form 10-Q for a discussion of certain of those risks and uncertainties and the factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results will be in line with any outlook information set forth herein, and the Firm does not undertake to update any forward-looking statements.

JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had ~~$3.8~~$3.9 trillion in assets and ~~$288.0~~$312.5 billion in stockholders’ equity as of ~~September~~June 30, ~~2022.~~2023. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers, predominantly in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally.

JPMorgan Chase’s principal bank subsidiary is JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank, N.A.”), a national banking association with U.S. branches in 48 states and Washington, D.C. ~~as of September 30, 2022.~~ JPMorgan Chase’s principal non-bank subsidiary is J.P. Morgan Securities LLC (“J.P. Morgan Securities”), a U.S. broker-dealer. The bank and non-bank subsidiaries of JPMorgan Chase operate nationally as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. The Firm’s principal operating subsidiaries outside the U.S. are J.P. Morgan Securities plc and J.P. Morgan SE (“JPMSE”), which are subsidiaries of JPMorgan Chase Bank, N.A. and are based in the United Kingdom (“U.K.”) and Germany, respectively.

For management reporting purposes, the Firm’s activities are organized into four major reportable business segments, as well as a Corporate segment. The Firm’s consumer business segment is Consumer & Community Banking (“CCB”). The Firm’s wholesale business segments are the Corporate & Investment Bank (“CIB”), Commercial Banking (“CB”), and Asset & Wealth Management (“AWM”). Refer to Business Segment Results on pages 22-46 and Note 2527 of this Form 10-Q, and Note 32 of JPMorgan Chase’s ~~2021~~2022 Form 10-K, for a description of the Firm’s business segments and the products and services they provide to their respective client bases. On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the “First Republic acquisition”) from the Federal Deposit Insurance Corporation (“FDIC”). Refer to Note 28 for additional information.

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

EXECUTIVE OVERVIEW

This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of this Form 10-Q. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, this Form 10-Q and the ~~2021~~2022 Form 10-K should be read together and in their entirety.


Financial performance of JPMorgan Chase	Financial performance of JPMorgan Chase											Financial performance of JPMorgan Chase
(unaudited) As of or for the period ended, (in millions, except per share data and ratios)	(unaudited) As of or for the period ended, (in millions, except per share data and ratios)	Three months ended September 30,					Nine months ended September 30,					(unaudited) As of or for the period ended, (in millions, except per share data and ratios)	Three months ended June 30,							Six months ended June 30,
		2022		2021		Change	2022		2021		Change		2023			2022			Change	2023			2022			Change
Selected income statement data	Selected income statement data											Selected income statement data
Noninterest revenue	Noninterest revenue	$	15,198	$	16,567	(8)%	$	47,630	$	53,682	(11)%	Noninterest revenue	$	19,528		$	15,587		25%	$	37,166		$	32,432		15%
Net interest income	Net interest income	17,518		13,080		34	46,518		38,710		20	Net interest income	21,779			15,128			44	42,490			29,000			47
Total net revenue	Total net revenue	$	32,716	$	29,647	10	$	94,148	$	92,392	2	Total net revenue	41,307			30,715			34	79,656			61,432			30
Total noninterest expense	Total noninterest expense	19,178		17,063		12	57,118		53,455		7	Total noninterest expense	20,822			18,749			11	40,929			37,940			8
Pre-provision profit	Pre-provision profit	13,538		12,584		8	37,030		38,937		(5)	Pre-provision profit	20,485			11,966			71	38,727			23,492			65
Provision for credit losses	Provision for credit losses	1,537		(1,527)		NM	4,101		(7,968)		NM	Provision for credit losses	2,899			1,101			163	5,174			2,564			102
Net income	Net income	9,737		11,687		(17)	26,668		37,935		(30)	Net income	14,472			8,649			67	27,094			16,931			60
Diluted earnings per share	Diluted earnings per share	$	3.12	$	3.74	(17)	$	8.51	$	12.02	(29)	Diluted earnings per share	4.75			2.76			72	8.85			5.39			64
Selected ratios and metrics	Selected ratios and metrics											Selected ratios and metrics
Return on common equity	Return on common equity	15%		18%			14%		20%			Return on common equity	20		%	13		%		19		%	13		%
Return on tangible common equity	Return on tangible common equity	18		22			17		24			Return on tangible common equity	25			17				24			16
Book value per share	Book value per share	$	87.00	$	86.36	1	$	87.00	$	86.36	1	Book value per share	$	98.11		$	86.38		14	$	98.11		$	86.38		14
Tangible book value per share	Tangible book value per share	69.90		69.87		—	69.90		69.87		—	Tangible book value per share	79.90			69.53			15	79.90			69.53			15
Capital ratios(a)	Capital ratios(a)											Capital ratios(a)
CET1 capital	CET1 capital	12.5%		12.9%			12.5%		12.9%			CET1 capital	13.8		%	12.2		%		13.8		%	12.2		%
Tier 1 capital	Tier 1 capital	14.1		15.0			14.1		15.0			Tier 1 capital	15.4			14.1				15.4			14.1
Total capital	Total capital	16.0		16.9			16.0		16.9			Total capital	17.3			15.7				17.3			15.7
Memo:	Memo:											Memo:
NII excluding Markets(b)	NII excluding Markets(b)	$	16,923	$	11,217	51	$	42,357	$	32,855	29	NII excluding Markets(b)	$	22,370		$	13,682		63	$	43,306		$	25,434		70
NIR excluding Markets(b)	NIR excluding Markets(b)	9,797		12,955		(24)	31,040		39,994		(22)	NIR excluding Markets(b)	13,013			10,158			28	23,031			21,243			8
Markets(b)	Markets(b)	6,771		6,269		8	23,314		22,106		5	Markets(b)	7,018			7,790			(10)	15,400			16,543			(7)
Total net revenue - managed basis	Total net revenue - managed basis	$	33,491	$	30,441	10	$	96,711	$	94,955	2	Total net revenue - managed basis	$	42,401		$	31,630		34	$	81,737		$	63,220		29

(a)The ~~capital metrics~~ratios reflect ~~the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including~~ the CECL capital transition provisions. Refer to Capital Risk Management on pages ~~45-50~~48-53 of this Form 10-Q and pages 86-96 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for additional information.

(b)NII and NIR refer to net interest income and noninterest revenue, respectively. Markets consists of CIB's Fixed Income Markets and Equity Markets businesses.

Comparisons noted in the sections below are for the ~~third~~second quarter of ~~2022~~2023 versus the ~~third~~second quarter of ~~2021,~~2022, unless otherwise specified.

Firmwide overview

For the ~~third~~second quarter of ~~2022,~~2023, JPMorgan Chase reported net income of ~~$9.7~~$14.5 billion, ~~down 17%~~up 67%, earnings per share of ~~$3.12, an~~$4.75, ROE of ~~15%~~20% and ROTCE of ~~18%~~25%. The Firm's results for the second quarter of 2023 included an estimated bargain purchase gain of $2.7 billion in Corporate and a net addition to the allowance for credit losses of $1.2 billion associated with the First Republic acquisition. The Firm's results also included investment securities losses of $900 million in Treasury and CIO.

•Total net revenue was $41.3 billion, up ~~10%~~34%, ~~and reflected:~~reflecting:

•–Net interest income of ~~$17.5~~$21.8 billion, up ~~34%~~44%, driven by higher rates and, to a lesser extent, the impact of the First Republic acquisition, partially offset by lower Markets net interest ~~income.~~income and lower average deposit

balances. Net interest income excluding Markets was ~~$16.9~~$22.4 billion, up ~~51%~~63%.

•–Noninterest revenue was ~~$15.2~~$19.5 billion, ~~down 8%~~up 25%, driven by

–~~lower Investment Banking fees,~~

–~~$959 million~~ the impact of the First Republic acquisition, higher Markets noninterest revenue and the absence of losses on equity investments in Payments in the prior year, partially offset by higher net investment securities losses in ~~Corporate,~~Treasury and

–~~lower net production revenue~~ CIO. The impact of the First Republic acquisition included a $2.7 billion estimated bargain purchase gain in ~~Home Lending,~~Corporate.

~~largely offset by~~

–Total Markets revenue declined reflecting lower Markets NII, largely offset by higher ~~CIB Markets revenue.~~NIR.

•Noninterest expense was ~~$19.2~~$20.8 billion, up ~~12%~~11%, driven by higher ~~structural~~compensation expense ~~and continued investments in the business, including compensation, technology and marketing.~~

~~The~~ ~~provision for credit losses~~ ~~was $1.5 billion, reflecting:~~

•~~a net addition of $808 million~~due to ~~the allowance for credit losses, consisting of a net addition of $937 million in wholesale, driven by loan growth~~additional headcount and ~~lending-related commitment activity, as well as~~ the impact of ~~updates to~~wage inflation, $599 million expense associated with the ~~Firm's macroeconomic scenarios, partially offset by a net reduction of $143 million in consumer, driven by Home Lending,~~First Republic acquisition, higher technology and

•~~$727 million of net charge-offs, up $203 million, predominantly driven by CCB.~~ marketing investments and higher legal expense.

•The ~~prior year~~ provision for credit losseswas ~~a net benefit of $1.5~~$2.9 billion, reflecting a $1.5 billion net ~~reduction in~~addition to the allowance for credit losses and $1.4 billion of ~~$2.1~~net charge-offs. The net addition to the allowance for credit losses included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments. The net addition also reflected:

–$233 million in consumer predominantly inCard Services, and

–$79 million in wholesale reflecting $389 million in CB, largely offset by a $243 million reduction in Corporate.

Net charge-offs increased $754 million, predominantly driven by CCB, primarily Card Services, as 30+ day delinquencies have returned to pre-pandemic levels.

The prior year included a $428 million net addition to the allowance for credit losses and net charge-offs of ~~$524~~$657 million.

•The total allowance for credit losses was ~~$20.8~~$24.3 billion at ~~September~~June 30, ~~2022.~~2023. The Firm had an allowance for loan losses to retained loans coverage ratio of ~~1.70%~~1.75%, compared with ~~1.86%~~1.69% in the prior year.

•The Firm’s nonperforming assets totaled ~~$7.2~~$7.8 billion at ~~September~~June 30, ~~2022, a net decrease of $1.6 billion~~2023, relatively flat from the prior year, ~~driven~~as lower consumer nonaccrual loans due to loan sales in the prior year were offset by ~~lower~~higher wholesale nonaccrual loans, reflecting ~~loan sales and improved credit performance in consumer, and paydowns in wholesale.~~client-specific downgrades. Refer to Wholesale Credit Portfolio on pages 70-79 for additional information.

•Firmwide average loans of ~~$1.1~~$1.2 trillion were up 7%13%, driven by higher loans ~~across~~in CCB and CB, largely as a result of the ~~lines of business.~~First Republic acquisition.

•Firmwide average deposits of $2.4 trillion were ~~up 3%~~down 6%, ~~reflecting~~driven by:

–the continued migration into higher-yielding investments in AWM; declines in CIB and CB primarily due to continued deposit attrition, which for CIB included actions to reduce certain deposits; and a net decline in CCB primarily from existing accounts due to increased customer spending,

partially offset by

–the impact of the First Republic acquisition in CCB, and an increase in ~~CCB driven by growth from~~ ~~new and existing accounts across both~~Corporate related to the Firm's international consumer ~~and small busines~~initiatives.

Refer to Liquidity Risk Management on pages 54-61 for additional information.

~~s customers, and growth in time deposits in AWM, partially offset by declines in both Payments and Securities Services in CIB and in non-operating deposits in CB.~~

Selected capital and other metrics

~~The Firm’s~~ •CET1 capital was ~~$210~~$236 billion, and the Standardized and Advanced CET1 ratios were ~~12.5%~~13.8% and ~~13.0%~~13.9%, respectively.

~~The Firm’s~~ •SLR was ~~5.3%~~5.8%.

~~The Firm's~~ •TBVPS ~~was $69.90, relatively flat versus~~grew 15%, ending the ~~prior year.~~second quarter of 2023 at $79.90.

•As of ~~September~~June 30, ~~2022,~~2023, the Firm had ~~average~~ eligible end-of-period High Quality Liquid Assets (“HQLA”) of approximately ~~$716~~$792 billion and unencumbered marketable securities with a fair value of approximately ~~$771~~$620 billion, resulting in approximately ~~$1.5~~$1.4 trillion of liquidity sources. Refer to Liquidity Risk Management on pages ~~51-56~~54-61 for additional information.

Refer to Consolidated ~~Result~~Results of Operations and Consolidated Balance Sheets Analysis on pages 10-15 and pages ~~16-17,~~16-19, respectively, for a further discussion of the Firm's ~~results.~~results; and Business Segment Results on page 24 and Note 28 for additional information on the First Republic acquisition.

Pre-provision profit, ROTCE, TCE, TBVPS, NII and NIR excluding Markets, and total net revenue on a managed basis are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages ~~19-20~~20-21 for a further discussion of each of these measures.

Business segment highlights

Selected business metrics for each of the Firm’s four lines of business ("LOB") are presented below for the ~~third~~second quarter of ~~2022.~~2023.


CCB ROE ~~33%~~ 38%						•Average deposits ~~up 9%~~down 2%; client investment assets ~~down 10%~~up 42% •Average loans up 2%19% year-over-year ("YoY") and ~~up 1%~~15% quarter-over-quarter ("QoQ"); Card Services net charge-off rate of ~~1.40%~~2.41% •Debit and credit card sales volume(a) up ~~13%~~7% •Active mobile customers(b) up 10%
CIB ROE ~~13%~~ 15%						•#1 ranking for Global Investment Banking fees with ~~8.1%~~8.4% wallet share year-to-date •Total Markets revenue of ~~$6.8~~$7.0 billion, ~~up 8%~~down 10%, with Fixed Income Markets ~~up 22%~~down 3% and Equity Markets down ~~11%~~20%
CB ROE ~~14%~~ 16%						•Gross Investment Banking and Markets revenue of ~~$761~~$767 million, down ~~43%~~3% •Average loans up ~~13%~~23% YoY and ~~up 4%~~14% QoQ; average deposits down 6%8%
AWM ROE ~~28%~~ 29%						•Assets under management ("AUM") of ~~$2.6~~$3.2 trillion, ~~down 13%~~up 16% •Average loans up 8%1% YoY and ~~flat~~4% QoQ; average deposits ~~up 10%~~down 21%

(a)Excludes Commercial Card.

(b)Users of all mobile platforms who have logged in within the past 90 days. As of June 30, 2023, excludes the impact of the First Republic acquisition.

Refer to the Business Segment Results on pages ~~21-43~~22-46 for a detailed discussion of results by business segment.

Credit provided and capital raised

JPMorgan Chase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during the first ~~nine~~six months of ~~2022,~~2023, consisting of:


$~~1.9~~ 1.2 trillion						Total credit provided and capital raised (including loans and commitments)~~(a)~~

$~~196~~120 billion						Credit for consumers

$2417 billion						Credit for U.S. small businesses

$~~799~~520 billion						Credit for corporations

$~~799~~535 billion						Capital raised for corporate clients and non-U.S. government entities

$5124 billion						Credit and capital raised for nonprofit and U.S. government entities(a)

(a)Includes states, municipalities, hospitals and universities.

Recent events

~~On September 12, 2022, JPMorgan Chase announced that it had signed~~•Basel III Finalization: In July 2023, the Federal Reserve, the Office of the Comptroller of the Currency ("OCC") and the FDIC released a proposal to amend the risk-based capital framework, entitled "Regulatory capital rule: Amendments applicable to large banking organizations and to banking organizations with significant trading activity". Under the proposal, changes would include replacement of the advanced approach with an ~~agreement~~expanded risk-based approach, which would not permit the use of internal models for the calculation of risk-weighted assets, other than for Market risk. In addition, the stress capital buffer requirement would be applicable to ~~acquire Renovite Technologies, Inc. (“Renovite”~~both the expanded risk-based approach and the standardized approach. The proposal would significantly revise risk-based capital requirements for all banks with assets of $100 billion or more, including the Firm and other U.S. global systemically important banks ("GSIBs"),. The proposed effective date is July 1, 2025 with a ~~cloud-native payments technology company.~~three year transition period applicable to the expanded risk-based approach.

•GSIB Surcharge: In July 2023, the Federal Reserve also released a proposal to amend the calculation of the GSIB surcharge. If adopted as proposed, these amendments would require the Firm to assess its GSIB surcharge on an annual basis, using the average of the quarterly surcharge calculations throughout the calendar year, with daily averaging required for certain measures within the surcharge calculation. Surcharge increments would be reduced from 50bp to 10bp and there would also be other technical amendments to the Method 2 calculation. The proposed amendments would revise risk-based capital requirements for the Firm and other U.S. GSIBs, and would become effective on two calendar quarters after the adoption of the final rule.

Refer to Capital Risk Management on pages 48-53 for additional information.

Outlook

These current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-Q, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 8995 of this Form 10-Q; Part I, Item 1A, Risk Factors on pages 9-32 of the 2022 Form 10-K; and Part II, Item 1A, Risk Factors on page ~~155~~209 of ~~JPMorgan Chase’s 2021~~this Form ~~10-K~~10-Q for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2023 will be in line with the outlook information set forth below, and the Firm does not undertake to update any forward-looking statements.

JPMorgan Chase’s current outlook for ~~the fourth quarter of 2022 and~~ full-year ~~2022~~2023 should be viewed against the backdrop of the global and U.S. economies, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the U.S. and other countries where the Firm does business. Each of these factors will affect the performance of the Firm. The Firm will continue to make appropriate adjustments to its businesses and operations in response to ongoing developments in the business, economic, regulatory and legal environments in which it operates.

~~Fourth~~In May 2023, the FDIC issued a notice of proposed rulemaking recommending a special assessment related to the systemic risk determination made on March 12, 2023, to recover losses to the Deposit Insurance Fund ("DIF") arising from the protection of uninsured depositors resulting from recent bank resolutions. In its current form, the rule would impose a special assessment at an annual rate of 12.5 basis points on certain banks’ estimated uninsured deposits reported as of December 31, 2022. If this rule is finalized as proposed, the Firm expects to recognize an estimated assessment expense of approximately $3 billion (pre-tax) in the quarter ~~and full-year 2022~~in which the rule is finalized, which is expected to occur in the second half of 2023.

Full-year 2023

•Management expects both net interest income ~~to be approximately $19 billion in the fourth quarter of 2022, which would result in approximately $66 billion for full-year 2022, market dependent.~~

~~Management expects~~and net interest income excluding Markets to ~~also~~ be approximately ~~$19~~$87 billion, ~~in the fourth quarter of 2022, with Markets NII expected to be around zero, which would result in approximately $61.5 billion for full-year 2022,~~ market dependent.

•Management expects ~~full-year 2022~~ adjusted expense to be approximately ~~$77~~$84.5 billion, ~~which includes increased investments in technology, distribution~~market dependent and ~~marketing, and higher structural expense.~~excluding any FDIC special assessment.

•Management expects the ~~full-year 2022~~ net charge-off rate in Card Services to be approximately ~~1.5%~~2.6%.

Net interest income excluding Markets and adjusted expense are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages ~~19-20~~20-21.

Business Developments

~~War~~First Republic acquisition

On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the "First Republic acquisition") from the Federal Deposit Insurance Corporation (“FDIC”), as receiver, for $67.9 billion, resulting in ~~Ukraine~~an estimated bargain purchase gain of $2.7 billion recorded in other income. In connection with the First Republic acquisition, the Firm issued a five-year, $50 billion secured note to the FDIC (the "Purchase Money Note"), and entered into shared-loss agreements with the FDIC with respect to certain loans acquired and lending-related commitments assumed in the acquisition. Refer to Note 28 for additional information.

~~The duration~~JPMorgan Chase’s Consolidated Financial Statements as of and ~~potential outcomes~~for the period ended June 30, 2023 reflect the impact of the ~~war~~First Republic acquisition. Where meaningful to the disclosure, the impact of the First Republic acquisition is disclosed in ~~Ukraine remain uncertain.~~various sections of this Form 10-Q. The Firm ~~has taken steps~~continues to ~~close positions~~convert certain operations, and ~~reduce exposures connected~~to integrate clients, products and services, associated with the ~~war, and continues~~First Republic acquisition, to ~~assist clients~~align with ~~fulfilling or terminating pre-existing obligations and managing their Russia-related risks.~~

The Firm’s exposure to Russia and Russia-associated clients and counterparties is not material to its financial condition or results of operations. However, the secondary impacts of the war in Ukraine, including increased market volatility, inflationary pressures and the effects of financial and economic sanctions imposed by various governments, could have adverse effects on the Firm’s ~~businesses.~~

businesses and operations. The Firm also continues to ~~monitor~~evaluate to which segments certain clients, products and ~~manage the operational risks~~services associated with the ~~war,~~First Republic acquisition, including ~~compliance with~~deposits, should be allocated. Accordingly, reporting classifications and allocations may change in future periods, including across the ~~financial~~Firm's segments.

Current market and economic ~~sanctions and the increased risk of cyber attacks.~~conditions

Refer to ~~Wholesale Credit Portfolio~~Part I, Item 1A, Risk Factors on pages ~~64-72, Allowance for Credit Losses~~9-32 of JPMorgan Chase's 2022 Form 10-K and Part II, Item 1A, Risk Factors on ~~pages 73-75, Market Risk Management on pages 77-81, Country Risk Management on pages 82-83 and Operational Risk Management on~~ page ~~84 for additional information.~~

~~For purposes~~209 of this Form 10-Q ~~“Russia” refers~~for a discussion of material risk factors that could affect the Firm. These risk factors include potential impacts to ~~exposure to clients~~the Firm associated with current market and ~~counterparties~~economic conditions, including inflationary pressures, higher interest rates and geopolitical tensions (including secondary effects of the ~~Firm for~~war in Ukraine), any or all of which ~~the largest proportion of their assets is located, or the largest proportion of their revenue is derived,~~could result in ~~Russia, based on the Firm’s internal country risk management framework; and “Russia-associated” refers to exposure to clients and counterparties of the Firm~~additional market disruption, government actions (including with respect to ~~which economic or financial sanctions relating~~monetary policies), ongoing impacts to ~~the war in Ukraine have been imposed or which have close association with Russia.~~global supply chains, and other geopolitical risks.

Interbank Offered Rate (“IBOR”) transition

JPMorgan Chase and other market participants continue to make progress with respect to the transition from the use of the London Interbank Offered Rate (“LIBOR”) and other IBORs to comply with the International Organization of Securities Commission's standards for transaction-based benchmark rates. The ~~cessation of the~~ publication of the remaining principal tenors of ~~the~~ U.S. dollar LIBOR (i.e., overnight, one-month, three-month, six-month and 12-month LIBOR) ~~is scheduled for~~ceased on June 30, ~~2023.~~2023 (“LIBOR Cessation”). The one-month, three-month and six-month tenors of U.S. dollar LIBOR will continue to be published on a "synthetic" basis, which will allow market participants to use such rates for certain legacy LIBOR-linked contracts through September 30, 2024.

In the second quarter of 2023, the Firm successfully converted predominantly all of its cleared derivatives contracts linked to U.S. dollar LIBOR to the Secured Overnight Financing Rate (SOFR) as part of initiatives by the principal central counterparties (“CCPs”) to convert cleared derivatives prior to LIBOR Cessation. Nearly all of the Firm’s other U.S. dollar LIBOR-linked products that remained outstanding at LIBOR Cessation will be remediated through contractual fallback provisions or through the framework provided by the Adjustable Interest Rate (LIBOR) Act (“LIBOR Act”). The Firm continues its client outreach activities with respect to the limited amount of contracts that continue to reference “synthetic” U.S. dollar ~~LIBOR-linked loans and continues~~LIBOR in order to ~~monitor and evaluate client, industry, market, regulatory and legislative developments.~~ complete remediation by September 30, 2024.

Refer to Business Developments on ~~pages 50-51~~page 50 of JPMorgan Chase's ~~2021~~2022 Form 10-K for additional information.

CONSOLIDATED RESULTS OF OPERATIONS

This section provides a comparative discussion of JPMorgan Chase’s Consolidated Results of Operations on a reported basis for the three and ~~nine~~six months ended ~~September~~ June 30, ~~2022~~2023 and ~~2021,~~2022, unless otherwise specified. Factors that relate primarily to a single business segment are discussed in more detail within that business segment's results. Refer to pages ~~85-87~~91-93 of this Form 10-Q and pages ~~150-153~~149-152 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.

Revenue
Three months ended September 30, Nine months ended September 30,
(in millions) 2022 2021 Change 2022 2021 Change
Investment banking fees $ 1,674 $ 3,282 (49) % $ 5,268 $ 9,722 (46) %
Principal transactions 5,383 3,546 52 15,478 14,122 10
Lending- and deposit-related fees 1,731 1,801 (4) 5,443 5,248 4
Asset management, administration and commissions 5,069 5,257 (4) 15,671 15,480 1
Investment securities losses (959) (256) (275) (1,506) (397) (279)
Mortgage fees and related income 314 600 (48) 1,152 1,855 (38)
Card income 1,086 1,005 8 3,194 4,002 (20)
Other income(a)
900 1,332 (32) 2,930 3,650 (20)
Noninterest revenue 15,198 16,567 (8) 47,630 53,682 (11)
Net interest income 17,518 13,080 34 46,518 38,710 20
Total net revenue $ 32,716 $ 29,647 10 % $ 94,148 $ 92,392 2 %


Revenue
	Three months ended June 30,						Six months ended June 30,
(in millions)	2023		2022		Change		2023		2022		Change
Investment banking fees	$	1,513	$	1,586	(5)	%	$	3,162	$	3,594	(12)	%
Principal transactions	6,910		4,990		38		14,525		10,095		44
Lending- and deposit-related fees	1,828		1,873		(2)		3,448		3,712		(7)
Asset management fees	3,774		3,517		7		7,239		7,169		1
Commissions and other fees	1,739		1,723		1		3,434		3,433		—

Investment securities losses	(900)		(153)		(488)		(1,768)		(547)		(223)
Mortgage fees and related income	278		378		(26)		499		838		(40)
Card income	1,094		1,133		(3)		2,328		2,108		10
Other income(a)(b)	3,292		540		NM		4,299		2,030		112
Noninterest revenue	19,528		15,587		25		37,166		32,432		15
Net interest income	21,779		15,128		44		42,490		29,000		47
Total net revenue	$	41,307	$	30,715	34	%	$	79,656	$	61,432	30	%

(a) Included operating lease income of ~~$870~~$716 million and ~~$1.2 billion~~$945 million for the three months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, and ~~$2.9~~$1.5 billion and ~~$3.8~~$2.0 billion for the ~~nine~~six months ended ~~September~~June 30, 2023 and 2022, respectively, and ~~2021, respectively.~~an estimated bargain purchase gain of $2.7 billion associated with the First Republic acquisition in Corporate for the three and six months ended June 30, 2023. Refer to Business Segment Results on page 24, and Notes 6 and 28 for additional information.

(b) Includes losses on tax-oriented investments. Refer to Note 6 for additional information.

Quarterly results

Investment banking fees decreased in CIB, reflecting:

•lower ~~equity and debt underwriting fees as volatile market conditions continued to have a negative impact on issuance activity, and~~

•~~lower~~ advisory fees ~~driven by~~due to a lower level of announced ~~deals.~~deals in prior periods amid a challenging environment,

largely offset by

•higher equity underwriting fees primarily due to higher convertible securities offerings and, in the second half of the quarter, follow-on offerings that benefited from the lower equity market volatility.

Refer to CIB segment results on pages ~~28-33~~30-36 and Note 56 for additional information.

Principal transactions revenue increased, ~~primarily in CIB,~~ reflecting:

•higher Equity Markets revenue in principal transactions, primarily in Prime Finance,

•higher Fixed Income Markets ~~as elevated volatility drove a strong performance~~revenue in ~~the macro businesses, particularly~~principal transactions, driven by Securitized Products and Fixed Income Financing, partially offset by lower revenue in Rates and Currencies & Emerging Markets,

–the increase in Markets principal transactions revenue was more than offset by a decline in Markets NII, primarily due to higher funding costs

•the absence of $337 million of markdowns in the prior year on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio in CIB and CB,

•a gain of $36 million in Credit Adjustments & Other in CIB, compared with a loss of $218 million in the prior year, and

•higher revenue ~~associated with Derivatives~~related to cash deployment transactions in ~~Equity Markets.~~Treasury and CIO,

partially offset by

~~Credit Ad~~•~~justments & Other was~~ ~~a loss of $31 million~~,net losses on certain legacy private equity investments in Corporate, compared with ~~a gain of $108 million~~net gains in the prior year.

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

Refer to CIB, CB and Corporate segment results on pages ~~28-33,~~30-36, pages 37-40 and pages 45-46, respectively, and Note 56 for additional information.

Lending- and deposit-related fees ~~decreased as a result of lower~~decreased due to:

•lower cash management fees onin CIB and CB associated with the higher level of credits earned by clients ~~in CB and CIB.~~ ~~Refer to CIB and CB segment results on pages 28-33, pages 34-37 and Note 5 for additional information.~~

~~Asset management, administration and commissions revenue~~ ~~decreased, reflecting:~~that reduce such fees,

•~~lower asset management fees in AWM resulting from lower average market levels,~~ largely ~~offset by the removal of most money market fund fee waivers,~~

•~~lower brokerage commissions largely in AWM reflecting reduced volumes, and~~

•~~lower administration fees in CIB on reduced assets under custody reflecting lower market levels,~~

~~partially~~ offset by

•higher ~~travel-related commissions~~lending-related fees driven by the impact of the First Republic acquisition in AWM and CCB.

Refer to CIB, CB and AWM segment results on pages 30-36, pages 37-40 and pages 41-44, respectively, and Note 6 for additional information.

Asset management fees increased driven by:

•higher management fees on strong net inflows in AWM, and

•the impact of the First Republic acquisition in CCB.

Refer to CCB ~~CIB~~ and AWM segment results on pages ~~23-27,~~ 25-29 and

pages ~~28-33 and pages 38-41~~41-44, respectively, and Note 56 for additional ~~information.~~information; and Business Segment Results on page 24 for additional information on the First Republic acquisition.

Investment securities losses reflected higher net losses on on sales of U.S. Treasuries and U.S. GSE and government agency MBS, ~~and U.S. Treasuries~~ associated withrepositioning the investment securities ~~portfolios~~portfolio in Treasury and CIO. Refer to Corporate segment results on pages ~~42-43~~45-46 and Note 910 for additional information.

Mortgage fees and related incomedecreased ~~due to:~~

•in Home Lending, reflecting lower production ~~revenue from lower margins and volume,~~

~~partially offset by~~

•~~higher net mortgage servicing~~ revenue due to a decline in volume, and lower net ~~gain in MSR risk management, compared with a net loss in the prior year driven by updates to model inputs.~~mortgage servicing revenue.

Refer to CCB segment results on pages ~~23-27~~25-29 and Notes 56 and 1415 for additional information.

Card income ~~increased, reflecting~~ decreased driven by:

•lower net interchange income as a result of an increase to the rewards liability due to adjustments to the terms of certain reward programs in CCB,

largely offset by

•higher payments-related revenue, ~~on volume~~reflecting growth in ~~commercial card and merchant processing~~Commercial Card in CIB and CB.

~~Card~~ ~~income in CCB was relatively flat as the impact from the increase in debit and credit card sales volume was offset by higher amortization related to new account origination costs.~~ Refer to CCB, CIB and CB segment results on pages ~~23-27,~~25-29, pages ~~28-33~~30-36 and pages ~~34-37~~37-40, respectively, Critical Accounting Estimates on pages 91-93, and Note 56 for additional information.

Other income deincre~~creased~~ased, reflecting:

•the $2.7 billion estimated bargain purchase gain associated with the First Republic acquisition in Corporate,

•the absence of losses on equity investments in Payments in the prior year, and

•the impact of net investment hedges in Treasury and CIO,

partially offset by

•lower auto operating lease income in CCB ~~as a result of~~due to a decline in volume, and

•~~net losses on equity investments in CIB, compared with~~ the absence of a gain in the prior year on an equity-method investment received in partial satisfaction of a loan in CB,

~~partially offset by~~

•~~the impact of movements in foreign exchange rates related to net investment hedges in Treasury and CIO, primarily as a result of the strengthening of the U.S. dollar.~~.

Refer to Business Segment Results on page 24 and Note 28 for additional information on the First Republic acquisition; and Note 45 for additional information on net investment hedges.

Net interest income increased driven by higher rates and, to a lesser extent, ,the impact from the First Republic acquisition, partially offset by lower Markets ~~NII.~~net interest income and lower average deposit balances.

The Firm’s average interest-earning assets were $3.3 trillion, ~~up $125~~down $42 billion, and the yield was ~~3.05%~~5.01%, up ~~125~~279 basis points (“bps”). The net yield on these assets, on an FTE basis, was ~~2.09%~~2.62%, an increase of 4782 bps. The net yield excluding Markets was ~~2.81%~~3.83%, up 90157 bps.

Refer to the Consolidated average balance sheets, interest and rates schedule on page ~~182~~198 for further ~~information.~~ information; and Business Segment Results on page 24 and Note 28 for additional i

nformation on the First Republic acquisition.

Net yield excluding Markets is a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages ~~19-20~~20-21 for a further discussion of Net yield excluding Markets.

Year-to-date results

Investment banking fees decreased in CIB, reflecting:

•lower ~~equity and~~ debt underwriting fees as ~~volatile~~challenging market conditions resulted in lower issuance activity in acquisition financing, and

•lower advisory fees ~~driven by~~due to a lower level of announced ~~deals.~~deals in prior periods amid a challenging environment,

partially offset by

•higher equity underwriting fees primarily due to higher convertible securities offerings and, in the second half of the second quarter, follow-on offerings that benefited from the lower equity market volatility.

Principal transactions revenue increased, reflecting:

•higher Fixed Income Markets net revenue in principal transactions, driven by Securitized Products and Fixed Income ~~Markets, driven by a strong performance in the macro businesses, particularly Currencies & Emerging Markets and Rates,~~Financing, partially offset by lower revenue in ~~Securitized Products~~Currencies & Emerging Markets and ~~Credit, and~~Rates,

•higher ~~revenue associated with Derivatives and Prime Brokerage in~~ Equity Markets revenue in principal transactions, primarily in Prime Finance,

~~largely~~–the increase in Markets principal transactions revenue was more than offset by a decline in Markets NII, primarily due to higher funding costs

•~~a loss~~losses of ~~$773~~$117 million in Credit Adjustments & Other in CIB, driven by losses on certain components of fair value option elected liabilities,compared with ~~a gain~~losses of ~~$338~~$742 million in the prior ~~year. The loss in the current~~ year, ~~reflected funding spread widening and, to a lesser extent, losses on exposures relating to commodities and Russia and Russia-associated counterparties,~~

•~~net markdowns predominantly recorded in the second quarter of 2022 on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio in CIB and CB,~~

•~~net losses on certain legacy private equity investments in Corporate, compared with net gains in the prior year,~~ and

•~~net losses in Treasury and CIO~~higher revenue related to cash deployment transactions ~~which were more than offset by the related net interest income earned on these transactions.~~in Treasury and CIO.

Lending- and deposit-related fees ~~increased~~decreased due to to:

•lower cash management fees in CB and CIB associated with the higher level of credits earned by clients that reduce such fees,

partially offset by

•higher ~~service fee volume~~lending-related fees driven by the impact of the First Republic acquisition in ~~CCB.~~ ~~Refer to CCB segment results on pages 23-27~~AWM and ~~Note 5 for additional information.~~CCB.

Asset management ~~administration and commissions revenue~~fees ~~increased, predominantly~~increased driven ~~by:~~by the impact of the First Republic acquisition in CCB.

•A~~higher~~ ~~travel-related commissions in CCB,~~

•~~higher asset management~~sset management fees ~~including~~ in AWM ~~due to~~was relatively flat, as the decline in market levels was predominantly offset by the removal of most money market fund fee waivers and the impact of net ~~inflows, largely offset by lower market levels and~~inflows.

•Commissions and other fees~~higher annuity sales in CCB,~~

~~partially offset by~~

• was relatively flat. ~~lower administration fees in~~Refer to CIB and AWM segment results on ~~reduced assets under custody reflecting lower market levels.~~pages 30-36 and pages 41-44, respectively, and Note 6 for additional information.

Investment securities losses reflected higher net losses on sales of U.S. Treasuries and U.S. GSE and government agency MBS, ~~and U.S. Treasuries,~~ associated with repositioning the investment securities ~~portfolios~~portfolio in both periods in Treasury and CIO.

Mortgage fees and related income decreased driven by

~~Mortgage fees and related income~~ ~~decreased due to:~~

•Home Lending, reflecting lower production revenue ~~from~~due to a decline in volume, and lower ~~margins and volume,~~

~~largely offset by~~

•~~higher~~ net mortgage servicing revenue ~~resulting from~~

–adue to lower net ~~gain~~gains in MSR risk ~~management, compared with a net loss in the prior year driven by updates to model inputs, and~~

–~~higher operating revenue on a higher level of third-party loans serviced.~~management.

Card income ~~decreased due to~~ ~~higher amortization related to new account origination costs in Card, partially offset~~increased driven by higher payments-related revenue, ~~on volume~~reflecting growth in ~~commercial card and merchant processing~~Commercial Card in CIB and CB.

Net interchange income in CCB was relatively flat as the benefit in partner payments in the first quarter of 2023 related to a periodic tax refund on airline miles redeemed was offset by an increase to the rewards liability due to adjustments to the terms of certain reward programs.

Other income deincreased, reflecting:

•the $2.7 billion estimated bargain purchase gain associated with the First Republic acquisition in Corporate,

•the impact of net investment hedges in Treasury and CIO, and

•a gain of $339 million recognized in first quarter of 2023 in AWM on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% interest in the entity,

partially offset by

•lower auto operating lease income in CCB ~~as a result of~~due to a decline in volume,

,•the absence of proceeds in the prior year from an insurance settlement,

•~~net losses on certain investments in CIB and AWM, compared with net gains~~the absence of a gain in the prior year

~~partially offset by~~

•~~proceeds from an insurance settlement in the first quarter of 2022 in Corporate~~,

•~~higher net gains related to certain other Corporate investments,~~

•~~a gain~~ on an equity-method investment received in partial satisfaction of a loan in CB, and

•~~the absence of weather-related write-downs recorded in the prior year on~~lower net gains related to certain ~~renewable energy~~other Corporate investments ~~in CIB.~~.

Net interest income increased driven by higher rates and, to a lesser extent, higher revolving balances in Card Services and ~~balance sheet growth,~~the impact from the First Republic acquisition, partially offset by lower Markets ~~NII, as well as~~net interest income and lower ~~NII from PPP loans.~~average deposit balances.

The Firm’s average interest-earning assets were ~~$3.4~~$3.3 trillion, ~~up $203~~down $113 billion, and the yield was ~~2.38%~~4.85%, up 56281 basis points (“bps”). The net yield on these assets, on an FTE basis, was ~~1.85%~~2.63%, an increase of 2189 bps. The net yield excluding Markets was ~~2.34%~~3.82%, up 42171 bps.


Provision for credit losses	Provision for credit losses												Provision for credit losses
		Three months ended September 30,						Nine months ended September 30,						Three months ended June 30,						Six months ended June 30,
(in millions)	(in millions)	2022		2021		Change		2022		2021		Change	(in millions)	2023		2022		Change		2023		2022		Change
Consumer, excluding credit card	Consumer, excluding credit card	$	(69)	$	(31)	(123)	%	$	166	$	(1,823)	NM	Consumer, excluding credit card	$	555	$	62	NM		$	803	$	235	242	%
Credit card	Credit card	592		(355)		NM		1,828		(3,917)		NM	Credit card	1,324		730		81	%	2,546		1,236		106
Total consumer	Total consumer	523		(386)		NM		1,994		(5,740)		NM	Total consumer	1,879		792		137		3,349		1,471		128
Wholesale	Wholesale	1,000		(1,127)		NM		2,088		(2,223)		NM	Wholesale	1,007		303		232		1,811		1,088		66
Investment securities	Investment securities	14		(14)		NM		19		(5)		NM	Investment securities	13		6		117		14		5		180
Total provision for credit losses	Total provision for credit losses	$	1,537	$	(1,527)	NM		$	4,101��	$	(7,968)	NM	Total provision for credit losses	$	2,899	$	1,101	163	%	$	5,174	$	2,564	102	%

Quarterly results

The provision for credit losses was ~~$1.5~~$2.9 billion, reflecting a $1.5 billion net addition ~~of $808 million~~ to the allowance for credit losses and ~~$727 million~~$1.4 billion of net charge-offs.

The net addition to the allowance for credit losses ~~consisted of:~~

•~~$937~~included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments, composed of $763 million in wholesale~~driven by loan growth~~ and ~~lending-related commitment activity, as well as the impact of updates to the Firm's macroeconomic scenarios,~~

~~partially offset by~~

•~~a net reduction of $143~~$400 million in consumer ~~driven by Home Lending.~~.

The ~~allowance for loan losses~~net addition also reflected:

•$233 million in consumer predominantly inCard ~~was flat as the addition to the allowance resulting from higher outstanding balances was~~Services, and

•$79 million in wholesale reflecting $389 million in CB, largely offset by a $243 million reduction ~~related to a decrease~~ in ~~uncertainty associated with borrower behavior as the effects of the pandemic gradually recede.~~Corporate.

Net charge-offs increased ~~$203~~$754 million, predominantly driven by ~~CCB.~~CCB, primarily Card Services, as 30+ day delinquencies have returned to pre-pandemic levels.

The prior year included a ~~$2.1 billion~~$428 million net ~~reduction in~~addition to the allowance for credit losses and net charge-offs of ~~$524~~$657 million.

Refer to CCBCCB segment results on pages ~~23-27~~,25-29, CIB on pages ~~28-33,~~30-36, CB on pages ~~34-37,~~37-40, AWM on pages ~~38-41,~~41-44, Corporate on pages 45-46; Allowance for Credit Losses on pages ~~73-75,~~80-82; Notes 10 and ~~Notes 9 and 12~~13 for additional information on the credit portfolio and the allowance for credit ~~losses.~~losses; and Business segment results on page 24 for additional information on the First Republic acquisition.

Year-to-date results

The provision for credit losses was ~~$4.1~~$5.2 billion, reflecting a $2.6 billion net addition ~~of $2.1 billion~~ to the allowance for credit losses and ~~$2.0~~$2.5 billion of net charge-offs.

The net addition to the allowance for credit losses ~~consisted~~included $1.5 billion, consisting of:

•$~~1.9 billion~~800 million in wholesale, predominantly driven by

–~~loan growth predominantly~~ net downgrade activity, updates to certain assumptions related to office real estate in CB ~~and CIB, and~~

–~~updates to the Firm's macroeconomic forecast, including deterioration~~ in the ~~macroeconomic scenarios~~second quarter of 2023, and the ~~increased~~impact of the additional weight placed on the adverse scenarios ~~beginning~~ in the first quarter of ~~2022;~~2023, and

•$~~168~~649 million in consumer ~~primarily~~, predominantly driven by Card Services, reflecting ~~higher outstanding balances, predominantly~~loan growth, the net effect of changes in the Firm's macroeconomic outlook, including the impact from the weighted average U.S. unemployment rate peaking in the third quarter of 2024, and the additional weight placed on the adverse scenarios in the first quarter of 2023, partially offset by ~~a reduction~~reduced borrower uncertainty.

The net addition also included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments, in the ~~allowance related to a decrease in uncertainty associated with borrower behavior as the effects~~second quarter of ~~the pandemic gradually recede.~~2023.

Net charge-offs ~~decreased~~ ~~$349 million~~increased $1.3 billion, predominantly driven by CCB, primarily Card ~~reflecting the ongoing financial strength of U.S. consumers. However, median deposit balances continue~~Services, as 30+ day delinquencies have returned to ~~decline, impacted by the growth in consumer spending.~~pre-pandemic levels.

TheThe prior year included a ~~$10.3~~$1.3 billion net ~~reduction in~~addition to the allowance for credit losses and net charge-offs of ~~$2.3~~$1.2 billion.

Noninterest expense
(in millions) Three months ended September 30, Nine months ended September 30,
2022 2021 Change 2022 2021 Change
Compensation expense $ 10,539 $ 9,087 16 % $ 31,627 $ 29,502 7 %
Noncompensation expense:
Occupancy 1,162 1,109 5 3,425 3,314 3
Technology, communications and equipment(a)
2,366 2,473 (4) 7,102 7,480 (5)
Professional and outside services 2,481 2,523 (2) 7,522 7,111 6
Marketing 1,017 712 43 2,818 2,089 35
Other expense(b)
1,613 1,159 39 4,624 3,959 17
Total noncompensation expense 8,639 7,976 8 25,491 23,953 6
Total noninterest expense $ 19,178 $ 17,063 12 % $ 57,118 $ 53,455 7 %


Noninterest expense
(in millions)	Three months ended June 30,						Six months ended June 30,
	2023		2022		Change		2023		2022		Change
Compensation expense	$	11,216	$	10,301	9	%	$	22,892	$	21,088	9	%
Noncompensation expense:
Occupancy	1,070		1,129		(5)		2,185		2,263		(3)
Technology, communications and equipment(a)	2,267		2,376		(5)		4,451		4,736		(6)
Professional and outside services	2,561		2,469		4		5,009		5,041		(1)
Marketing	1,122		881		27		2,167		1,801		20
Other expense(b)(c)	2,586		1,593		62		4,225		3,011		40
Total noncompensation expense	9,606		8,448		14		18,037		16,852		7
Total noninterest expense	$	20,822	$	18,749	11	%	$	40,929	$	37,940	8	%

(a)Includes depreciation expense associated with auto operating lease assets.

(b)Included Firmwide legal expense of ~~$47~~$420 million and ~~$76~~$73 million for the three months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, and ~~$239~~$596 million and ~~$289~~$192 million for the ~~nine~~six months ended ~~September~~June 30, 2023 and 2022, respectively; as well as FDIC-related expense of $338 million and ~~2021,~~$216 million for the three months ended June 30, 2023 and 2022, respectively, and $655 million and $414 million for the six months ended June 30, 2023 and 2022, respectively. Refer to Note 6 for additional information.

(c)Included expense associated with the First Republic acquisition of $599 million for the three and six months ended June 30, 2023. Refer to Business Segment Results on page 24 for additional information.

Quarterly results

Compensation expense increased driven ~~by higher structural expense~~by:

•additional headcount, primarily in technology and ~~investments in the business,~~front office, as well as the impact of wage inflation, and

•higher revenue-related ~~expense~~compensation in AWM, partially offset by a decline in revenue-related compensation in CIB.

Noncompensation expense increased as a result ~~of:~~of:

•$599 million expense associated with the First Republic acquisition, substantially all of which is in Corporate,

•higher investments in the ~~business,~~businesses, including marketing ~~in CCB,~~ and technology,

•higher legal expense, largely in Corporate, and

•higher structural expense, including ~~travel and entertainment and regulatory assessments,~~the impact of the increase in the FDIC assessment that was announced in October 2022,

partially offset by

•lower volume-related expense, ~~primarily~~reflecting lower depreciation expense ~~in CCB~~ on lower ~~auto~~Auto lease assets.

Refer to Business Segment Results on page 24 for additional information on the First Republic acquisition.

Year-to-date results

Compensation expense increased driven by by:

•additional headcount, primarily in technology and front office, as well as the impact of wage inflation, and

•higher ~~structural expense and investments~~revenue-related compensation in ~~the business,~~AWM, partially offset by ~~lower~~a decline in revenue-related compensation in CIB.

Noncompensation expense increased as a result ~~of:~~of:

•expense associated with the First Republic acquisition, substantially all of which is in Corporate,

•higher investments in the business, including marketing ~~in CCB,~~ and technology,

•higher legal expense across the LOBs and Corporate, and

•higher structural expense, including the impact of the increase in the FDIC assessment that was announced in October 2022, and higher travel and entertainment ~~regulatory assessments, outside services and other employee-related~~ expense,

partially offset by

•lower volume-related expense, ~~predominantly driven by CCB,~~ reflecting lower depreciation expense on lower ~~auto~~Auto lease ~~assets, partially offset by higher operating losses.~~assets.

~~The prior year included a $550 million contribution to the Firm's Foundation.~~

Income tax expense
(in millions) Three months ended September 30, Nine months ended September 30,
2022 2021 Change 2022 2021 Change
Income before income tax expense $ 12,001 $ 14,111 (15) % $ 32,929 $ 46,905 (30) %
Income tax expense 2,264 2,424 (7) 6,261 8,970 (30)
Effective tax rate 18.9 % 17.2 % 19.0 % 19.1 %


Income tax expense
(in millions)	Three months ended June 30,								Six months ended June 30,
	2023			2022			Change		2023			2022			Change
Income before income tax expense	$	17,586		$	10,865		62	%	$	33,553		$	20,928		60	%
Income tax expense	3,114			2,216			41		6,459			3,997			62
Effective tax rate	17.7		%	20.4		%			19.3		%	19.1		%

Quarterly results

The effective tax rate ~~increased and reflects~~ decreased, reflecting:

•the ~~absence~~impact of anthe income tax ~~benefit~~expense associated with the First Republic acquisition that was reflected in the ~~prior year related to~~estimated bargain purchase gain, which resulted in a reduction in the ~~Firm's 2020 U.S federal~~Firm’s effective tax ~~return, largely~~rate of 3.4 percentage points,

partially offset by ~~benefits related to tax audit settlements~~

•the higher level of pre-tax income and changes in the ~~level and~~ mix of income and expenses subject to U.S. federal and state and local ~~taxes in the current year.~~taxes.

Year-to-date results

The effective tax rate was relatively flat, ~~compared to~~ reflecting:

•the ~~nine months ended September 30, 2021, as benefits from tax audit settlements~~higher level of pre-tax income and changes in the ~~current year were~~mix of income and expenses subject to U.S. federal and state and local taxes, as well as the lower benefits related to vesting of employee stock based awards,

predominantly offset by

CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS

Consolidated balance sheets analysis

The following is a discussion of the significant changes between ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021.~~2022.


Selected Consolidated balance sheets data	Selected Consolidated balance sheets data							Selected Consolidated balance sheets data
(in millions)	(in millions)	September 30, 2022		December 31, 2021		Change		(in millions)	June 30, 2023		December 31, 2022		Change
Assets	Assets							Assets
Cash and due from banks	Cash and due from banks	$	24,654	$	26,438	(7)	%	Cash and due from banks	$	26,064	$	27,697	(6)	%
Deposits with banks	Deposits with banks	619,533		714,396		(13)		Deposits with banks	469,059		539,537		(13)
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	301,878		261,698		15		Federal funds sold and securities purchased under resale agreements	325,628		315,592		3
Securities borrowed	Securities borrowed	193,216		206,071		(6)		Securities borrowed	163,563		185,369		(12)
Trading assets	Trading assets	506,487		433,575		17		Trading assets	636,996		453,799		40
Available-for-sale securities	Available-for-sale securities	188,140		308,525		(39)		Available-for-sale securities	203,262		205,857		(1)
Held-to-maturity securities, net of allowance for credit losses		430,106		363,707		18
Held-to-maturity securities								Held-to-maturity securities	408,941		425,305		(4)
Investment securities, net of allowance for credit losses	Investment securities, net of allowance for credit losses	618,246		672,232		(8)		Investment securities, net of allowance for credit losses	612,203		631,162		(3)
Loans	Loans	1,112,633		1,077,714		3		Loans	1,300,069		1,135,647		14
Allowance for loan losses	Allowance for loan losses	(18,185)		(16,386)		11		Allowance for loan losses	(21,980)		(19,726)		(11)
Loans, net of allowance for loan losses	Loans, net of allowance for loan losses	1,094,448		1,061,328		3		Loans, net of allowance for loan losses	1,278,089		1,115,921		15
Accrued interest and accounts receivable	Accrued interest and accounts receivable	143,905		102,570		40		Accrued interest and accounts receivable	111,561		125,189		(11)
Premises and equipment	Premises and equipment	27,199		27,070		—		Premises and equipment	29,493		27,734		6
Goodwill, MSRs and other intangible assets	Goodwill, MSRs and other intangible assets	60,806		56,691		7		Goodwill, MSRs and other intangible assets	64,238		60,859		6
Other assets	Other assets	183,512		181,498		1		Other assets	151,346		182,884		(17)
Total assets	Total assets	$	3,773,884	$	3,743,567	1	%	Total assets	$	3,868,240	$	3,665,743	6	%

Cash and due from banks and deposits with banks decreased primarily as a result of ~~lower~~the First Republic acquisition, which included the impact of the repayment of deposits provided to First Republic Bank in March 2023 by the consortium of large U.S. banks and ~~loan growth.~~amounts paid to the FDIC, as well as CIB Markets activities. Deposits with banks reflect the Firm’s placement of its excess cash with various central banks, including the Federal Reserve Banks.

Federal funds sold and securities purchased under resale agreements in~~creased driven by Markets, reflecting:~~

•increased due to the impact of a lower level of netting on ~~client-driven market-making activities and collateral requirements, as well as~~

•~~higher demand for securities to cover short positions~~.a reduced level of resale balances in Markets.

Securities borrowed de~~creased~~decreased driven by Markets, reflecting lower client-driven activities ~~partially offset by higher~~and lower demand for securities to cover short ~~positions~~.positions.

Refer to Note 1011 for additional information on securities purchased under resale agreements and securities borrowed.

Trading assets increased ~~driven by:~~

•~~higher derivative receivables, primarily foreign exchange and commodities as a result of market movements, as well as~~due to higher levels of debt and equity instruments ~~related~~in Markets, in response to demand from client-driven market-making activities, ~~in Fixed Income Markets, and~~

•~~higher deployment of funds in Treasury~~ and ~~CIO.~~

when compared with the seasonally lower levels at year-end. Refer to Notes 2 and 45 for additional information.

Investment securities ~~reflects~~decreased due to:

•lower available-for-sale ("AFS") securities driven by paydowns, maturities and net sales, partially offset by $25.8 billion of securities associated with the First Republic acquisition as well as the transfer of ~~$73.2 billion of~~ securities from held-to-maturity in the ~~available-for-sale (“AFS”) portfolio to the held-to-maturity~~first quarter of 2023 (“HTM”) ~~portfolio in the second quarter of 2022.~~, and

•~~The decrease in AFS~~lower HTM securities ~~was also due~~driven by paydowns, maturities and the transfer of securities to ~~paydowns, as well as~~ ~~unrealized losses, which are recognized in accumulated other comprehensive income (~~“~~AOCI~~”),

~~largely offset by net purchases~~

•T~~he increase in HTM was also due to purchases, partially offset by~~ ~~paydowns.~~AFS.

Refer to Corporate segment results on pages ~~42-43,~~ 45-46,

Investment Portfolio Risk Management on page ~~76,~~83, and Notes 2 and 910 for additional information.

Loans increased, reflecting~~, reflecting:~~:

•~~higher originations~~$150 billion of loans associated with the First Republic acquisition, primarily reflected in CCB, CB and ~~revolver utilization in CB,~~AWM.

The increase also included:

•~~higher~~growth in new accounts and revolving balances which continued to normalize to pre-pandemic levels in Card ~~driven by growth in revolving balances on higher consumer spending and net new originations,~~Services, and

•higher ~~wholesale loans~~revolver utilization and originations in ~~CIB,~~CB,

partially offset by

•lower ~~mortgage warehouse loans~~securities-based lending in ~~Home Lending as sales outpaced originations due to higher interest rates, and~~

•~~the impact from PPP loan forgiveness in CBB.~~AWM.

The allowance for loan losses increased, ~~reflecting~~ reflecting:

•a net addition ~~of $1.8 billion~~ to the allowance for loan losses ~~consisting~~of $1.8 billion, consisting of:

•–$~~1.6~~1.1 billion in wholesale,~~, resulting from~~

–~~loan growth~~ predominantly driven by net downgrade activity, updates to certain assumptions related to office real estate in CB ~~and CIB, and~~

–$620 million in consumer, predominantly driven by Card Services, reflecting loan growth, the net effect of changes in the Firm's macroeconomic outlook, including the impact from the weighted average U.S. unemployment rate peaking in the third quarter of 2024, and the additional weight placed on the adverse scenarios in the first quarter of 2023, partially offset by reduced borrower uncertainty, and

•$~~204 million in~~ ~~consumerdriven by Card, reflecting higher outstanding balances, predominantly offset by a reduction~~1.1 billion to establish the allowance for the First Republic loans in the ~~allowance related to a decrease in uncertainty associated with borrower behavior as the~~second quarter of 2023.

~~effects~~The allowance for loan losses also reflected a reduction of $587 million, on January 1, 2023, as a result of the ~~pandemic gradually recede.~~adoption of the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance. References in this Form 10-Q to "changes to the TDR accounting guidance" pertain to the Firm's adoption of this guidance.

There was also a ~~$290~~$196 million ~~addition to~~net reduction in the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance ~~sheets.~~sheets, which included a $97 million addition to establish the allowance for the First Republic lending-related commitments.

Refer to Credit and Investment Risk Management on pages ~~57-76,~~62-83, and Notes 2, 3, 1112 and 1213 for ~~a more detailed discussion of~~additional information on loans and the total allowance for ~~loan losses.~~credit losses; and Business Segment Results on page 24 and Note 28 for additional information on the First Republic acquisition.

Accrued interest and accounts receivable ~~increased predominantly~~decreased primarily due to ~~higher~~lower client receivables related to client-driven activities in ~~Markets, including prime brokerage.~~Markets.

Premises and equipment increased as a result of the First Republic acquisition, largely lease right-of-use assets, and the construction-in-process associated with the Firm's headquarters. Refer to Note 17 for information on leases.

Goodwill, MSRs and other intangible assetsincreased predominantly due to the other intangibles and goodwill related to the Firm's acquisition of the remaining 51% interest in CIFM, and the core deposit intangibles associated with the First Republic acquisition. Refer to Note 15 and 28 for additional information.

Other assets decreased reflecting lower cash collateral placed with central counterparties ("CCPs").


Selected Consolidated balance sheets data (continued)
(in millions)	June 30, 2023		December 31, 2022		Change
Liabilities
Deposits	$	2,398,962	$	2,340,179	3	%
Federal funds purchased and securities loaned or sold under repurchase agreements	266,272		202,613		31
Short-term borrowings	41,022		44,027		(7)
Trading liabilities	178,809		177,976		—
Accounts payable and other liabilities	286,934		300,141		(4)
Beneficial interests issued by consolidated variable interest entities (“VIEs”)	19,647		12,610		56
Long-term debt	364,078		295,865		23
Total liabilities	3,555,724		3,373,411		5
Stockholders’ equity	312,516		292,332		7
Total liabilities and stockholders’ equity	$	3,868,240	$	3,665,743	6	%

Deposits increased, reflecting:

•~~higher MSRs~~increases in CIB due to deposit inflows related to client-driven activities and net issuances of structured notes as a result of ~~higher market interest rates and net additions,~~client demand,

•$68 billion of deposits in CCB associated with the First Republic acquisition, partially offset by ~~the realization of expected cash flows,~~a net decline primarily in existing accounts due to increased customer spending, and

•~~additions~~an increase in Corporate related to ~~goodwill associated with~~ the ~~acquisitions of~~ ~~Global Shares PLC and Figg, Inc. in~~ ~~the third quarter of 2022, and Frosch Travel Group, LLC and Volkswagen Payments S.A. in the second quarter of 2022.~~Firm's international consumer initiatives,

~~Refer to Note 14 for additional information.~~

Selected Consolidated balance sheets data (continued)
(in millions) September 30,
2022 December 31,
2021 Change
Liabilities
Deposits $ 2,408,615 $ 2,462,303 (2) %
Federal funds purchased and securities loaned or sold under repurchase agreements 239,939 194,340 23
Short-term borrowings 47,866 53,594 (11)
Trading liabilities 189,878 164,693 15
Accounts payable and other liabilities 300,016 262,755 14
Beneficial interests issued by consolidated variable interest entities (“VIEs”) 12,079 10,750 12
Long-term debt 287,473 301,005 (4)
Total liabilities 3,485,866 3,449,440 1
Stockholders’ equity 288,018 294,127 (2)
Total liabilities and stockholders’ equity $ 3,773,884 $ 3,743,567 1 %

~~Deposits~~ ~~decreased reflecting:~~partially offset by

•~~a reduction~~the continued migration into higher-yielding investments in ~~non-operating deposits in CB, and in~~ AWM ~~net outflows into investments~~ as a result of the rising interest rate environment

~~partially offset by~~

•~~growth from new consumer and small business accounts in CCB that more than offset the decline in deposits in existing accounts~~ ~~as spending continued to grow~~, and

•~~an increase~~ongoing attrition in ~~Corporate~~CB driven by higher rates and seasonal outflows, predominantly offset by inflows as a result of disruptions in the ~~Firm's international consumer growth initiatives.~~market in the first quarter of 2023

~~Refer to Liquidity Risk Management on pages 51-56 and Notes 2 and 15 for additional information.~~.

Federal funds purchased and securities loaned or sold under repurchase agreements increased due ~~to:~~

•to higher secured financing of trading assets and the impact of a lower level of netting on client-driven market-making activities in ~~Markets,~~Markets.

Short-term borrowings decreased predominantly as a result of lower financing requirements in Markets, partially offset by

•~~lower secured financing of AFS investment securities~~ short-term FHLB advances associated with the First Republic acquisition in Treasury and CIO.

Refer to Liquidity Risk Management on pages ~~51-56~~54-61 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; Notes 2 and 16 for deposits and Note 1011 for federal funds purchased and securities loaned or sold under repurchase agreements; Business Segment Results on page 24 and Note 28 for additional information on the First Republic acquisition.

Trading liabilities: refer to Notes 2 and 5 for additional information.

~~Short-term borrowings~~ ~~decreased as a result of~~ ~~lower financing requirements in Markets. Refer to Liquidity Risk Management on pages 51-56 for additional information.~~

~~Trading liabilities~~ increased due to client-driven market-making activities, which resulted in higher levels of short positions in debt instruments, as well as higher derivative payables as a result of market movements in Markets. ~~Refer to Notes 2 and 4 for additional information.~~

Accounts payable and other liabilities~~increased predominantly~~ decreased primarily due to ~~higher~~lower client payables related to client-driven activities ~~primarily~~ in ~~Markets, including prime brokerage.~~Markets.

Beneficial interests issued by consolidated VIEs increased driven by higher levels of Firm-administered multi-seller conduit commercial paper ~~issued to~~held by third ~~parties.~~parties, reflecting changes in the Firm’s short-term liquidity management, and an increase in loans in the conduits in CIB. Refer to Liquidity Risk Management on pages ~~51-56~~54-61 and Notes 1314 and 2224 for additional information, specifically Firm-sponsored VIEs and loan securitization trusts.

Long-term debt ~~decreased~~ ~~driven by:~~

•~~a decline in~~increased, reflecting the ~~fair value~~impact of ~~structured notes in Markets,~~the First Republic acquisition, which included the Purchase Money Note issued to the FDIC, and ~~fair value hedge accounting adjustments~~$25 billion of FHLB advances, partially offset by maturities and redemptions in Treasury and ~~CIO related to higher rates,~~

~~largely offset by~~

•~~net issuances in Markets and Treasury and CIO~~.

~~Refe~~rCIO. Refer to Liquidity Risk Management on pages ~~51-56~~54-61; and Note 28 for additional ~~information.~~information on the First Republic acquisition.

Stockholders’ equity ~~decreased as a result of net unrealized losses in AOCI, which were predominantly driven by the impact of higher rates on the AFS portfolio and cash flow hedges in Treasury and CIO. Refer~~: refer to Consolidated statements of changes in stockholders’ equity on page ~~93,~~ 99, Capital Actions on page 52, and Note 1921 for additional information.

1718

Consolidated cash flows analysis

The following is a discussion of cash flow activities during the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022.


(in millions)	(in millions)	Nine months ended September 30,			(in millions)				Six months ended June 30,
			2022			2021		(in millions)		2023		2022
Net cash provided by/(used in)	Net cash provided by/(used in)
Operating activities	Operating activities		$	5,897		$	(7,011)	Operating activities		$	(92,376)	$	24,101
Investing activities	Investing activities		(86,289)			(29,186)		Investing activities		5,551		(125,811)
Financing activities	Financing activities		16,087			278,015		Financing activities		14,642		48,970
Effect of exchange rate changes on cash	Effect of exchange rate changes on cash		(32,342)			(9,558)		Effect of exchange rate changes on cash		72		(18,834)
Net increase/(decrease) in cash and due from banks and deposits with banks	Net increase/(decrease) in cash and due from banks and deposits with banks		$	(96,647)		$	232,260	Net increase/(decrease) in cash and due from banks and deposits with banks		$	(72,111)	$	(71,574)

Operating activities

•In 2023, cash used resulted from higher trading assets and lower accounts payable, partially offset by lower other assets, securities borrowed and accrued interest and accounts receivable.

•In 2022, cash provided reflected higher accounts payable and other liabilities, trading liabilities, and net proceeds from loans held-for-sale, predominantly offset by higher trading ~~assets.~~

•~~In 2021, cash used resulted from higher securities borrowed~~assets and accrued interest and accounts ~~receivable, partially~~receivable.

Investing activities

•In 2023, cash provided reflected net proceeds from investment securities, largely offset by higher ~~accounts payable~~net originations of loans, higher securities purchased under resale agreements, and ~~other liabilities.~~net cash used in the First Republic acquisition.

~~Investing activities~~

•In 2022, cash used resulted from ~~net loan originations and~~ higher securities purchased under resale agreements, ~~partially offset by~~ net ~~proceeds~~originations of ~~investment securities.~~

•~~In 2021, cash used resulted from net loan originations~~loans, and net purchases of investment ~~securities, partially offset by lower securities purchased under resale agreements.~~securities.

Financing activities

•In ~~2022,~~2023, cash provided reflected higher securities loaned or sold under repurchase agreements, ~~and~~largely offset by net ~~proceeds from~~activity in deposits, which included the impact of the repayment of the deposits provided to First Republic Bank by the consortium of large U.S. banks that the Firm assumed as part of the First Republic acquisition, as well as net payments on long- and short-term ~~borrowings, largely offset by lower deposits.~~borrowings.

•In ~~2021,~~2022, cash provided reflected higher ~~deposits and~~ securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings.

•For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock.

* * *

Refer to Consolidated Balance Sheets Analysis on pages ~~16-17,~~16-19, Capital Risk Management on pages ~~45-50,~~48-53, and Liquidity Risk Management on pages ~~51-56,~~54-61, and the Consolidated Statements of Cash Flows on page 94100 of this Form 10-Q, and pages 97-104 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further discussion of the activities affecting the Firm’s cash flows.

1819


EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES

The Firm prepares its Consolidated Financial Statements in accordance with U.S. GAAP and this presentation is referred to as “reported” basis; these financial statements appear on pages ~~90-94.~~96-100.

In addition to analyzing the Firm’s results on a reported basis, the Firm also reviews and uses certain non-GAAP financial measures at the Firmwide and segment level. These non-GAAP measures include:

•Firmwide “managed” basis results, including the overhead ratio, which include certain reclassifications to present total net revenue from investments that receive tax credits and tax-exempt securities on a basis comparable to taxable investments and securities (“FTE” basis);

•Pre-provision profit, which represents total net revenue less total noninterest expense;

•Net interest income, net yield, and noninterest revenue excluding Markets;

•TCE, ROTCE, and TBVPS;

•Adjusted expense, which represents noninterest expense excluding Firmwide legal expense; and

•Allowance for loan losses to period-end loans retained, excluding trade finance and conduits.

Refer to Explanation and Reconciliation of the Firm’s Use Of Non-GAAP Financial Measures and Key Performance Measures on pages 58-60 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further discussion of management’s use of non-GAAP financial measures.

The following summary tables provide a reconciliation from the Firm’s reported U.S. GAAP results to managed basis.


		Three months ended September 30,																	Three months ended June 30,
		2022								2021									2023								2022
(in millions, except ratios)	(in millions, except ratios)	Reported			Fully taxable-equivalent adjustments(a)		Managed basis			Reported			Fully taxable-equivalent adjustments(a)		Managed basis			(in millions, except ratios)	Reported			Fully taxable-equivalent adjustments(a)		Managed basis			Reported			Fully taxable-equivalent adjustments(a)		Managed basis
Other income	Other income	$	900		$	663	$	1,563		$	1,332		$	690	$	2,022		Other income	$	3,292		$	990	$	4,282		$	540		$	812	$	1,352
Total noninterest revenue	Total noninterest revenue	15,198			663		15,861			16,567			690		17,257			Total noninterest revenue	19,528			990		20,518			15,587			812		16,399
Net interest income	Net interest income	17,518			112		17,630			13,080			104��		13,184			Net interest income	21,779			104		21,883			15,128			103		15,231
Total net revenue	Total net revenue	32,716			775		33,491			29,647			794		30,441			Total net revenue	41,307			1,094		42,401			30,715			915		31,630
Total noninterest expense	Total noninterest expense	19,178			NA		19,178			17,063			NA		17,063			Total noninterest expense	20,822			NA		20,822			18,749			NA		18,749
Pre-provision profit	Pre-provision profit	13,538			775		14,313			12,584			794		13,378			Pre-provision profit	20,485			1,094		21,579			11,966			915		12,881
Provision for credit losses	Provision for credit losses	1,537			NA		1,537			(1,527)			NA		(1,527)			Provision for credit losses	2,899			NA		2,899			1,101			NA		1,101
Income before income tax expense	Income before income tax expense	12,001			775		12,776			14,111			794		14,905			Income before income tax expense	17,586			1,094		18,680			10,865			915		11,780
Income tax expense	Income tax expense	2,264			775		3,039			2,424			794		3,218			Income tax expense	3,114			1,094		4,208			2,216			915		3,131
Net income	Net income	$	9,737		NA		$	9,737		$	11,687		NA		$	11,687		Net income	$	14,472		NA		$	14,472		$	8,649		NA		$	8,649

Overhead ratio	Overhead ratio	59		%	NM		57		%	58		%	NM		56		%	Overhead ratio	50		%	NM		49		%	61		%	NM		59		%

		Nine months ended September 30,																	Six months ended June 30,
		2022								2021									2023								2022
(in millions, except ratios)	(in millions, except ratios)	Reported			Fully taxable-equivalent adjustments(a)		Managed basis			Reported			Fully taxable-equivalent adjustments(a)		Managed basis			(in millions, except ratios)	Reported			Fully taxable-equivalent adjustments(a)		Managed basis			Reported			Fully taxable-equivalent adjustments(a)		Managed basis
Other income	Other income	$	2,930		$	2,250	$	5,180		$	3,650		$	2,241	$	5,891		Other income	$	4,299		$	1,857	$	6,156		$	2,030		$	1,587	$	3,617
Total noninterest revenue	Total noninterest revenue	47,630			2,250		49,880			53,682			2,241		55,923			Total noninterest revenue	37,166			1,857		39,023			32,432			1,587		34,019
Net interest income	Net interest income	46,518			313		46,831			38,710			322		39,032			Net interest income	42,490			224		42,714			29,000			201		29,201
Total net revenue	Total net revenue	94,148			2,563		96,711			92,392			2,563		94,955			Total net revenue	79,656			2,081		81,737			61,432			1,788		63,220
Total noninterest expense	Total noninterest expense	57,118			NA		57,118			53,455			NA		53,455			Total noninterest expense	40,929			NA		40,929			37,940			NA		37,940
Pre-provision profit	Pre-provision profit	37,030			2,563		39,593			38,937			2,563		41,500			Pre-provision profit	38,727			2,081		40,808			23,492			1,788		25,280
Provision for credit losses	Provision for credit losses	4,101			NA		4,101			(7,968)			NA		(7,968)			Provision for credit losses	5,174			NA		5,174			2,564			NA		2,564
Income before income tax expense	Income before income tax expense	32,929			2,563		35,492			46,905			2,563		49,468			Income before income tax expense	33,553			2,081		35,634			20,928			1,788		22,716
Income tax expense	Income tax expense	6,261			2,563		8,824			8,970			2,563		11,533			Income tax expense	6,459			2,081		8,540			3,997			1,788		5,785
Net Income	Net Income	$	26,668		NA		$	26,668		$	37,935		NA		$	37,935		Net Income	$	27,094		NA		$	27,094		$	16,931		NA		$	16,931

Overhead ratio	Overhead ratio	61		%	NM		59		%	58		%	NM		56		%	Overhead ratio	51		%	NM		50		%	62		%	NM		60		%

(a)Predominantly recognized in CIB, CB and Corporate.

1920

The following table provides information on net interest income, net yield, and noninterest revenue excluding Markets.


(in millions, except rates)	(in millions, except rates)	Three months ended September 30,								Nine months ended September 30,								(in millions, except rates)	Three months ended June 30,								Six months ended June 30,
		2022			2021			Change		2022			2021			Change			2023			2022			Change		2023			2022			Change
Net interest income – reported	Net interest income – reported	$	17,518		$	13,080		34	%	$	46,518		$	38,710		20	%	Net interest income – reported	$	21,779		$	15,128		44	%	$	42,490		$	29,000		47	%
Fully taxable-equivalent adjustments	Fully taxable-equivalent adjustments	112			104			8		313			322			(3)		Fully taxable-equivalent adjustments	104			103			1		224			201			11
Net interest income – managed basis(a)	Net interest income – managed basis(a)	$	17,630		$	13,184		34		$	46,831		$	39,032		20		Net interest income – managed basis(a)	$	21,883		$	15,231		44		$	42,714		$	29,201		46
Less: Markets net interest income(b)	Less: Markets net interest income(b)	707			1,967			(64)		4,474			6,177			(28)		Less: Markets net interest income(b)	(487)			1,549			NM		(592)			3,767			NM
Net interest income excluding Markets(a)	Net interest income excluding Markets(a)	$	16,923		$	11,217		51		$	42,357		$	32,855		29		Net interest income excluding Markets(a)	$	22,370		$	13,682		63		$	43,306		$	25,434		70

Average interest-earning assets	Average interest-earning assets	$	3,344,949		$	3,219,786		4		$	3,377,390		$	3,174,858		6		Average interest-earning assets	$	3,343,780		$	3,385,894		(1)		$	3,280,619		$	3,393,879		(3)
Less: Average Markets interest-earning assets(b)	Less: Average Markets interest-earning assets(b)	952,488			894,892			6		957,837			881,547			9		Less: Average Markets interest-earning assets(b)	1,003,877			957,304			5		993,283			960,556			3
Average interest-earning assets excluding Markets	Average interest-earning assets excluding Markets	$	2,392,461		$	2,324,894		3	%	$	2,419,553		$	2,293,311		6	%	Average interest-earning assets excluding Markets	$	2,339,903		$	2,428,590		(4)	%	$	2,287,336		$	2,433,323		(6)	%
Net yield on average interest-earning assets – managed basis	Net yield on average interest-earning assets – managed basis	2.09		%	1.62		%			1.85		%	1.64		%			Net yield on average interest-earning assets – managed basis	2.62		%	1.80		%			2.63		%	1.74		%
Net yield on average Markets interest-earning assets(b)	Net yield on average Markets interest-earning assets(b)	0.29			0.87					0.62			0.94					Net yield on average Markets interest-earning assets(b)	(0.19)			0.65					(0.12)			0.79
Net yield on average interest-earning assets excluding Markets	Net yield on average interest-earning assets excluding Markets	2.81		%	1.91		%			2.34		%	1.92		%			Net yield on average interest-earning assets excluding Markets	3.83		%	2.26		%			3.82		%	2.11		%


Noninterest revenue – reported	Noninterest revenue – reported	$	15,198	$	16,567	(8)	%	$	47,630	$	53,682	(11)	%	Noninterest revenue – reported	$	19,528	$	15,587	25	%	$	37,166	$	32,432	15	%
Fully taxable-equivalent adjustments	Fully taxable-equivalent adjustments	663		690		(4)		2,250		2,241		—		Fully taxable-equivalent adjustments	990		812		22		1,857		1,587		17
Noninterest revenue – managed basis	Noninterest revenue – managed basis	$	15,861	$	17,257	(8)		$	49,880	$	55,923	(11)		Noninterest revenue – managed basis	$	20,518	$	16,399	25		$	39,023	$	34,019	15
Less: Markets noninterest revenue(b)	Less: Markets noninterest revenue(b)	6,064		4,302		41		18,840		15,929		18		Less: Markets noninterest revenue(b)	7,505		6,241		20		15,992		12,776		25
Noninterest revenue excluding Markets	Noninterest revenue excluding Markets	$	9,797	$	12,955	(24)		$	31,040	$	39,994	(22)		Noninterest revenue excluding Markets	$	13,013	$	10,158	28		$	23,031	$	21,243	8

Memo: Total Markets net revenue(b)	Memo: Total Markets net revenue(b)	$	6,771	$	6,269	8		$	23,314	$	22,106	5		Memo: Total Markets net revenue(b)	$	7,018	$	7,790	(10)		$	15,400	$	16,543	(7)

(a)Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.

(b)Refer to page 3235 for further information on Markets.

The following summary table provides a reconciliation from the Firm’s common stockholders’ equity to TCE.


		Period-end				Average													Period-end				Average
(in millions, except per share and ratio data)	(in millions, except per share and ratio data)	Sep 30, 2022		Dec 31, 2021		Three months ended September 30,						Nine months ended September 30,						(in millions, except per share and ratio data)	Jun 30, 2023		Dec 31, 2022		Three months ended June 30,						Six months ended June 30,
						2022			2021			2022			2021								2023			2022			2023			2022
Common stockholders’ equity	Common stockholders’ equity	$	255,180	$	259,289	$	252,944		$	253,556		$	251,147		$	250,011		Common stockholders’ equity	$	285,112	$	264,928	$	277,885		$	247,986		$	274,560		$	250,234
Less: Goodwill	Less: Goodwill	51,461		50,315		51,323			49,457			50,739			49,323			Less: Goodwill	52,380		51,662		52,342			50,575			52,031			50,442
Less: Other intangible assets	Less: Other intangible assets	1,205		882		1,208			849			1,076			868			Less: Other intangible assets	3,629		1,224		2,191			1,119			1,746			1,007
Add: Certain deferred tax liabilities(a)	Add: Certain deferred tax liabilities(a)	2,509		2,499		2,512			2,480			2,504			2,465			Add: Certain deferred tax liabilities(a)	3,097		2,510		2,902			2,503			2,727			2,500
Tangible common equity	Tangible common equity	$	205,023	$	210,591	$	202,925		$	205,730		$	201,836		$	202,285		Tangible common equity	$	232,200	$	214,552	$	226,254		$	198,795		$	223,510		$	201,285

Return on tangible common equity	Return on tangible common equity	NA		NA		18		%	22		%	17		%	24		%	Return on tangible common equity	NA		NA		25		%	17		%	24		%	16		%
Tangible book value per share	Tangible book value per share	$	69.90	$	71.53	NA			NA			NA			NA			Tangible book value per share	$	79.90	$	73.12	NA			NA			NA			NA

(a)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.

2021

BUSINESS SEGMENT RESULTS

The Firm is managed on an LOB basis. There are four major reportable business segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. In addition, there is a Corporate segment.

The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by the Firm’s Operating Committee. Segment results are presented on a managed basis. Refer to Explanation and Reconciliation of the Firm’s use of Non-GAAP Financial Measures on pages ~~19-20~~20-21 for a definition of managed basis.

Description of business segment reporting methodology

Results of the business segments are intended to present each segment as if it were a stand-alone business. The management reporting process that derives business segment results includes the allocation of certain income and expense items. The Firm periodically assesses the assumptions, methodologies and reporting classifications used for segment reporting, and further refinements may be implemented in future periods. The Firm also assesses the level of capital required for each LOB on at least an annual basis. The Firm’s LOBs also provide various business metrics which are utilized by the Firm and its investors and analysts in assessing performance.

Revenue sharing

When business segments join efforts to sell products and services to the Firm’s clients and customers, the participating business segments may agree to share revenue from those transactions. Revenue is generally recognized in the segment responsible for the related product or service, with allocations to the other segment(s) involved in the transaction. The segment results reflect these revenue-sharing agreements.

Funds transfer pricing

Funds transfer pricing (“FTP”) is the process by which the Firm allocates interest income and expense to the LOBs and Other Corporate and transfers the primary interest rate risk and liquidity risk to Treasury and CIO.

The funds transfer pricing process considers the interest rate risk and liquidity risk characteristics of assets and liabilities and off-balance sheet products. Periodically the methodology and assumptions utilized in the FTP process are adjusted to reflect economic conditions and other factors, which may impact the allocation of net interest income to the segments.

Foreign exchange risk

Foreign exchange risk is transferred from the LOBs and Other Corporate to Treasury and CIO for certain revenues and expenses. Treasury and CIO manages these risks centrally and reports the impact of foreign exchange rate movements related to the transferred risk in its results. Refer to Market Risk Management on pages 84-89 for additional information.

Capital allocation

The amount of capital assigned to each business segment is referred to as equity. ~~Periodically,~~At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs may change. As of June 30, 2023, the Firm updated its line of business capital allocations to reflect the impact of the First Republic acquisition. Refer to Line of business equity on page ~~48,~~51, and page 93 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for additional information on capital allocation.

Refer to Business Segment Results – Description of business segment reporting methodology on pages 61-62 and Note 32 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further discussion of those methodologies.

2122

Segment results – managed basis

The following tables summarize the Firm’s results by segment for the periods indicated.


Three months ended September 30,		Consumer & Community Banking						Corporate & Investment Bank							Commercial Banking
Three months ended June 30,																						Three months ended June 30,	Consumer & Community Banking									Corporate & Investment Bank								Commercial Banking
(in millions, except ratios)	(in millions, except ratios)	2022		2021			Change	2022			2021			Change	2022			2021			Change	(in millions, except ratios)	2023			2022				Change		2023			2022				Change	2023			2022			Change
Total net revenue	Total net revenue	$	14,331	$	12,521		14%	$	11,875		$	12,396		(4)%	$	3,048		$	2,520		21%	Total net revenue	$	17,233		$	12,558		(a)	37	%	$	12,519		$	12,003		(a)	4%	$	3,988		$	2,683		49	%
Total noninterest expense	Total noninterest expense	8,047		7,238			11	6,618			5,871			13	1,180			1,032			14	Total noninterest expense	8,313			7,658			(a)	9		6,894			6,810			(a)	1	1,300			1,156			12
Pre-provision profit/(loss)	Pre-provision profit/(loss)	6,284		5,283			19	5,257			6,525			(19)	1,868			1,488			26	Pre-provision profit/(loss)	8,920			4,900				82		5,625			5,193				8	2,688			1,527			76
Provision for credit losses	Provision for credit losses	529		(459)			NM	513			(638)			NM	618			(363)			NM	Provision for credit losses	1,862			761				145		38			59				(36)	1,097			209			425
Net income/(loss)	Net income/(loss)	4,334		4,351		(a)	—	3,532			5,647		(a)	(37)	946			1,409		(a)	(33)	Net income/(loss)	5,306			3,108			(a)	71		4,092			3,717			(a)	10	1,208			994			22
Return on equity (“ROE”)	Return on equity (“ROE”)	33%		34%				13		%	26%				14		%	22%				Return on equity (“ROE”)	38		%	24		%				15		%	14		%			16		%	15		%


Three months ended September 30,		Asset & Wealth Management							Corporate						Total
Three months ended June 30,																					Three months ended June 30,	Asset & Wealth Management								Corporate					Total
(in millions, except ratios)	(in millions, except ratios)	2022			2021			Change	2022		2021			Change	2022			2021		Change	(in millions, except ratios)	2023			2022			Change		2023		2022		Change	2023			2022			Change
Total net revenue	Total net revenue	$	4,539		$	4,300		6%	$	(302)	$	(1,296)		77%	$	33,491		$	30,441	10%	Total net revenue	$	4,943		$	4,306		15	%	$	3,718	$	80	NM	$	42,401		$	31,630		34	%
Total noninterest expense	Total noninterest expense	3,028			2,762			10	305		160			91	19,178			17,063		12	Total noninterest expense	3,163			2,919			8		1,152		206		459	20,822			18,749			11
Pre-provision profit/(loss)	Pre-provision profit/(loss)	1,511			1,538			(2)	(607)		(1,456)			58	14,313			13,378		7	Pre-provision profit/(loss)	1,780			1,387			28		2,566		(126)		NM	21,579			12,881			68
Provision for credit losses	Provision for credit losses	(102)			(60)			(70)	(21)		(7)			(200)	1,537			(1,527)		NM	Provision for credit losses	145			44			230		(243)		28		NM	2,899			1,101			163
Net income/(loss)	Net income/(loss)	1,219			1,196		(a)	2	(294)		(916)		(a)	68	9,737			11,687		(17)	Net income/(loss)	1,226			1,004			22		2,640		(174)		NM	14,472			8,649			67
ROE	ROE	28		%	33%				NM		NM				15		%	18%			ROE	29		%	23		%			NM		NM			20		%	13		%


Nine months ended September 30,		Consumer & Community Banking						Corporate & Investment Bank							Commercial Banking
Six months ended June 30,																						Six months ended June 30,	Consumer & Community Banking									Corporate & Investment Bank								Commercial Banking
(in millions, except ratios)	(in millions, except ratios)	2022		2021			Change	2022			2021			Change	2022			2021			Change	(in millions, except ratios)	2023			2022				Change		2023			2022				Change	2023			2022			Change
Total net revenue	Total net revenue	$	39,174	$	37,798		4%	$	37,351		$	40,215		(7)%	$	8,129		$	7,396		10%	Total net revenue	$	33,689		$	24,740		(a)	36	%	$	26,119		$	25,579		(a)	2%	$	7,499		$	5,081		48	%
Total noninterest expense	Total noninterest expense	23,490		21,502			9	20,661			19,498			6	3,465			2,982			16	Total noninterest expense	16,378			15,313			(a)	7		14,377			14,173			(a)	1	2,608			2,285			14
Pre-provision profit/(loss)	Pre-provision profit/(loss)	15,684		16,296			(4)	16,690			20,717			(19)	4,664			4,414			6	Pre-provision profit/(loss)	17,311			9,427				84		11,742			11,406				3	4,891			2,796			75
Provision for credit losses	Provision for credit losses	1,968		(5,929)			NM	1,017			(1,048)			NM	984			(858)			NM	Provision for credit losses	3,264			1,439				127		96			504				(81)	1,514			366			314
Net income/(loss)	Net income/(loss)	10,329		16,783		(a)	(38)	11,642			16,591		(a)	(30)	2,790			4,012		(a)	(30)	Net income/(loss)	10,549			6,016			(a)	75		8,513			8,089			(a)	5	2,555			1,844			39
ROE	ROE	27%		44%				14		%	26%		(a)		14		%	21%				ROE	39		%	23		%				15		%	15		%			17		%	14		%


Nine months ended September 30,		Asset & Wealth Management							Corporate						Total
Six months ended June 30,																				Six months ended June 30,	Asset & Wealth Management								Corporate					Total
(in millions, except ratios)	(in millions, except ratios)	2022			2021			Change	2022		2021			Change	2022		2021		Change	(in millions, except ratios)	2023			2022			Change		2023		2022		Change	2023			2022			Change
Total net revenue	Total net revenue	$	13,160		$	12,484		5%	$	(1,103)	$	(2,938)		62%	$	96,711	$	94,955	2%	Total net revenue	$	9,727		$	8,621		13	%	$	4,703	$	(801)	NM	$	81,737		$	63,220		29	%
Total noninterest expense	Total noninterest expense	8,807			7,922			11	695		1,551			(55)	57,118		53,455		7	Total noninterest expense	6,254			5,779			8		1,312		390		236	40,929			37,940			8
Pre-provision profit/(loss)	Pre-provision profit/(loss)	4,353			4,562			(5)	(1,798)		(4,489)			60	39,593		41,500		(5)	Pre-provision profit/(loss)	3,473			2,842			22		3,391		(1,191)		NM	40,808			25,280			61
Provision for credit losses	Provision for credit losses	96			(191)			NM	36		58			(38)	4,101		(7,968)		NM	Provision for credit losses	173			198			(13)		127		57		123	5,174			2,564			102
Net income/(loss)	Net income/(loss)	3,231			3,612		(a)	(11)	(1,324)		(3,063)		(a)	57	26,668		37,935		(30)	Net income/(loss)	2,593			2,012			29		2,884		(1,030)		NM	27,094			16,931			60
ROE	ROE	25		%	34%				NM		NM				14%		20%			ROE	31		%	23		%			NM		NM			19		%	13		%

(a)In the first quarter of ~~2022,~~2023, the ~~Firm changed its methodology for allocating income taxes~~allocations of revenue and expense to ~~the LOBs,~~CCB associated with ~~no impact to Firmwide net income.~~a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.

The following sections provide a comparative discussion of the Firm’s results by segment as of or for the three and six months ended June 30, 2023 versus the corresponding period in the prior year, unless otherwise specified.

Selected Firmwide Metrics

The following tables present key metrics for Wealth Management, which consists of the Global Private Bank in AWM and J.P. Morgan Wealth Management in CCB; and total revenue and key metrics for J.P. Morgan Payments, which consists of payments activities in CIB and CB. This presentation is intended to provide investors with additional information concerning Wealth Management and J.P. Morgan Payments, each of which consists of similar business activities conducted across LOBs to serve different types of clients and customers.

Selected metrics - Wealth Management


	June 30, 2023			June 30, 2022
Client assets (in billions)(a)	$	2,862	(b)	$	2,177
Number of client advisors	8,367			7,756

(a) Consists of Global Private Bank in AWM and client investment assets in J.P. Morgan Wealth Management in CCB.

(b)As of June 30, 2023, included $150.9 billion of client investment assets associated with the First Republic acquisition.

Selected metrics - J.P. Morgan Payments


(in millions, except where otherwise noted)	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Total net revenue(a)	$	4,729	$	3,130	$	9,187	$	5,725
Merchant processing volume (in billions)	600.1		539.6		1,158.9		1,029.8
Average deposits (in billions)	720		816		714		819

(a) Excludes the net impact of equity investments.

Segment information related to the First Republic acquisition

The following table presents selected impacts to CCB, CB, AWM and Corporate associated with the First Republic acquisition.


	As of or for the three and six months ended June 30, 2023
(in millions)	Consumer & Community Banking		Commercial Banking		Asset & Wealth Management		Corporate			Total
Selected Income Statement Data
Revenue
Asset management fees	$	107	$	—	$	—	$	—		$	107
All other income	105		—		174		2,762		(a)	3,041
Noninterest revenue	212		—		174		2,762			3,148
Net interest income	619		178		129		(29)			897
Total net revenue	831		178		303		2,733			4,045

Provision for credit losses	408		608		146		—			1,162
Noninterest expense	37		—		—		562			599
Net income	293		(327)		119		2,301			2,386

Selected Balance Sheet Data (period-end)
Loans	$	94,721	$	39,500	$	13,696	$	—		$	147,917	(b)
Deposits	68,351		—		—		—			68,351

(a)Reflects the estimated bargain purchase gain of $2.7 billion recorded in other income. Refer to Note 28 for additional information.

(b)Excluded $1.9 billion of loans transferred to the CIB.

The following sections provide a comparative discussion of the Firm’s results by segment as of or for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022 versus the corresponding period in the prior year, unless otherwise specified.~~2023 and 2022.

2224

CONSUMER & COMMUNITY BANKING

Refer to pages 63-66 of JPMorgan Chase's ~~2021~~2022 Form 10-K and Line of Business Metrics on page ~~190~~206 for a further discussion of the business profile of CCB.


Selected income statement data	Selected income statement data																	Selected income statement data
		Three months ended September 30,								Nine months ended September 30,									Three months ended June 30,										Six months ended June 30,
(in millions, except ratios)	(in millions, except ratios)	2022			2021				Change	2022			2021				Change	(in millions, except ratios)	2023				2022				Change		2023				2022				Change
Revenue	Revenue																	Revenue
Lending- and deposit-related fees	Lending- and deposit-related fees	$	822		$	786			5%	$	2,482		$	2,281			9%	Lending- and deposit-related fees	$	841			$	855			(2)	%	$	1,664			$	1,660			—	%
Asset management, administration and commissions		939			893				5	2,815			2,564				10
Asset management fees																		Asset management fees	816			(d)	684				19		1,492			(d)	1,410				6
Mortgage fees and related income	Mortgage fees and related income	313			596				(47)	1,146			1,847				(38)	Mortgage fees and related income	274				377				(27)		497				833				(40)
Card income	Card income	665			651				2	1,933			2,888				(33)	Card income	483				621			(f)	(22)		1,222				1,162			(f)	5
All other income(a)	All other income(a)	1,023			1,212				(16)	3,194			3,872				(18)	All other income(a)	1,129			(d)	1,313			(f)	(14)		2,291			(d)	2,640			(f)	(13)
Noninterest revenue	Noninterest revenue	3,762			4,138				(9)	11,570			13,452				(14)	Noninterest revenue	3,543				3,850				(8)		7,166				7,705				(7)
Net interest income	Net interest income	10,569			8,383				26	27,604			24,346				13	Net interest income	13,690			(d)	8,708				57		26,523			(d)	17,035				56
Total net revenue	Total net revenue	14,331			12,521				14	39,174			37,798				4	Total net revenue	17,233				12,558				37		33,689				24,740				36

Provision for credit losses	Provision for credit losses	529			(459)				NM	1,968			(5,929)				NM	Provision for credit losses	1,862			(d)	761				145		3,264			(d)	1,439				127

Noninterest expense	Noninterest expense																	Noninterest expense
Compensation expense	Compensation expense	3,345			3,012				11	9,753			8,965				9	Compensation expense	3,628				3,237				12		7,173				6,408				12
Noncompensation expense~~(a)~~(b)	Noncompensation expense~~(a)~~(b)	4,702			4,226				11	13,737			12,537				10	Noncompensation expense~~(a)~~(b)	4,685			(d)	4,421			(f)	6		9,205			(d)	8,905			(f)	3
Total noninterest expense	Total noninterest expense	8,047			7,238				11	23,490			21,502				9	Total noninterest expense	8,313				7,658				9		16,378				15,313				7
Income before income tax expense	Income before income tax expense	5,755			5,742				—	13,716			22,225				(38)	Income before income tax expense	7,058				4,139				71		14,047				7,988				76
Income tax expense	Income tax expense	1,421			1,391			(d)	2	3,387			5,442			(d)	(38)	Income tax expense	1,752				1,031			(f)	70		3,498				1,972			(f)	77
Net income	Net income	$	4,334		$	4,351		(d)	—	$	10,329		$	16,783		(d)	(38)	Net income	$	5,306			$	3,108			71		$	10,549			$	6,016			75

Revenue by line of business	Revenue by line of business																	Revenue by line of business
Consumer & Business Banking(b)		$	8,010		$	6,157			30	$	20,630		$	17,808			16
Banking & Wealth Management																		Banking & Wealth Management	$	10,936		(e)	$	6,502		(f)	68		$	20,977		(e)	$	12,517		(f)	68
Home Lending	Home Lending	920			1,400				(34)	3,090			4,207				(27)	Home Lending	1,007			(e)	1,001				1		1,727			(e)	2,170				(20)
Card & Auto		5,401			4,964				9	15,454			15,783				(2)
Card Services & Auto																		Card Services & Auto	5,290				5,055				5		10,985				10,053				9

Mortgage fees and related income details:	Mortgage fees and related income details:																	Mortgage fees and related income details:
Production revenue	Production revenue	93			614				(85)	454			1,888				(76)	Production revenue	102				150				(32)		177				361				(51)
Net mortgage servicing revenue(c)	Net mortgage servicing revenue(c)	220			(18)				NM	692			(41)				NM	Net mortgage servicing revenue(c)	172				227				(24)		320				472				(32)
Mortgage fees and related income	Mortgage fees and related income	$	313		$	596			(47)%	$	1,146		$	1,847			(38)%	Mortgage fees and related income	$	274			$	377			(27)	%	$	497			$	833			(40)	%

Financial ratios	Financial ratios																	Financial ratios
Return on equity	Return on equity	33		%	34		%			27		%	44		%			Return on equity	38		%		24		%				39		%		23		%
Overhead ratio	Overhead ratio	56			58					60			57					Overhead ratio	48				61						49				62

(a)Primarily includes operating lease income and commissions and other fees. For the three months ended June 30, 2023 and 2022, operating lease income was $704 million and $929 million, respectively, and $1.4 billion and $2.0 billion for the six months ended June 30, 2023 and 2022, respectively.

(b)Included depreciation expense on leased assets of ~~$605~~$445 million and ~~$769~~$652 million for the three months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, and ~~$2.0 billion~~$852 million and ~~$2.5~~$1.3 billion for the ~~nine~~six months ended ~~September~~June 30, 2023 and 2022, ~~and 2021,~~ respectively.

~~(b)Effective in the fourth quarter of 2022, Consumer & Business Banking was renamed Banking & Wealth Management.~~

(c)Included MSR risk management results of ~~$54~~$25 million and ~~$(145)~~$28 million for the three months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, and ~~$191~~$13 million and ~~$(363)~~$137 million for the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.

(d)Includes the impact of the First Republic acquisition. Refer to page 24 for additional information.

(e)For the three and six months ended June 30, 2023, included $596 million and $235 million for Banking & Wealth Management and Home Lending, respectively, associated with the First Republic acquisition.

(f)In the first quarter of ~~2022,~~2023, the ~~Firm changed its methodology for allocating income taxes~~allocations of revenue and expense to ~~the LOBs,~~CCB associated with ~~no impact to Firmwide net income.~~a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.

2325

Quarterly results

Net income was ~~$4.3~~$5.3 billion, ~~relatively flat compared to the prior year.~~up 71%.

Net revenue was ~~$14.3~~$17.2 billion, an increase of ~~14%~~37%.

Net interest income was ~~$10.6~~$13.7 billion, up ~~26%~~57%, driven by:

•deposit margin expansion on higher ~~margins~~rates in Banking & Wealth Management ("BWM"), and ~~growth in deposits in CBB, and higher revolving loans in Card,~~

~~partially offset by~~

•~~a reduction associated with PPP loan forgiveness in CBB and lower~~higher NII in ~~Home Lending predominantly due to tighter loan spreads.~~Card Services driven by increased revolving balances.

Noninterest revenue was ~~$3.8~~$3.5 billion, down 9%8%, driven by:

•~~lower production revenue from lower margins and volume in Home Lending, and~~

•lower auto operating lease income as a result of a decline in volume, and

•a decrease in card income driven by lower net interchange, as a result of an increase to the rewards liability due to adjustments to certain reward program terms,

partially offset by

•higher ~~net mortgage servicing revenue due to a net gain~~asset management fees in ~~MSR risk management compared with a net loss in the prior year~~BWM predominantly driven by ~~updates to model inputs,~~

•~~higher travel-related commissions,~~

•~~a gain on warrants associated with an equity investment, and~~

•~~card income was relatively flat as~~ the impact ~~from~~of the ~~increase in debit and credit card sales volume was offset by higher amortization related to new account origination costs.~~First Republic acquisition.

Refer to Note 146 for additional information on card income, asset management fees, and commissions and other fees; and Critical Accounting Estimates on pages 91-93 for card income.

Refer to Note 15 for further information regarding changes in the value of the MSR asset and related hedges, and mortgage fees and related income. ~~Refer to Note 5 for additional information on card income.~~

Noninterest expense was ~~$8.0~~$8.3 billion, up ~~11%~~9%, ~~reflecting:~~driven by:

•~~investments in the business~~higher compensation expense, including wage inflation and ~~increased structural expenses, predominantly driven by compensation,~~headcount growth, as well as higher marketing and technology,

partially offset by

•lower ~~volume- and revenue-related expenses driven by lower~~auto lease depreciation ~~expense~~ on lower auto lease assets.

The provision for credit losses was ~~$529 million, reflecting:~~$1.9 billion, and included:

•net charge-offs of ~~$679~~$1.3 billion, up $640 million, ~~up $188 million, largely~~predominantly driven by ~~loan growth in~~ Card Services, as 30+ day delinquencies have returned to pre-pandemic levels, and

~~partially offset by~~

•a ~~$150~~$611 million ~~reserve release in Home Lending.~~

~~The allowance for loan losses in Card was flat as the~~net addition to the allowance ~~resulting~~for credit losses, reflecting $408 million to establish the allowance for the First Republic loans and lending-related commitments. The net addition also included $203 million driven by Card Services, reflecting loan growth, and the net effect of changes in the Firm's macroeconomic outlook, including the impact from ~~higher outstanding balances was~~the weighted average U.S. unemployment rate peaking in the third quarter of 2024, largely offset by ~~a reduction related to a decrease in uncertainty associated with~~reduced borrower ~~behavior as the effects of the pandemic gradually recede.~~uncertainty.

The prior year included a ~~$950~~$150 million ~~reduction in~~addition to the allowance for credit losses ~~across CCB.~~in Card Services.

Refer to Credit and Investment Risk Management on pages ~~57-76~~62-83 and Allowance for Credit Losses on pages ~~73-75~~80-82 for a further discussion of the credit portfolios and the allowance for credit losses.

Year-to-date results

Net income was ~~$10.3~~$10.5 billion, ~~down 38%, predominantly driven by a net increase in the provision for credit losses compared with a net benefit in the prior year.~~up 75%.

Net revenue was ~~$39.2~~$33.7 billion, an increase of 4%36%.

Net interest income was ~~$27.6~~$26.5 billion, up ~~13%~~56%, ~~predominantly~~ driven by:

•~~growth~~deposit margin expansion on higher rates, partially offset by lower average deposits in ~~deposits~~BWM, and

•higher ~~margins in CBB, and higher revolving loans~~NII in Card Services driven by increased revolving balances,

partially offset by

•~~a reduction associated with~~the impact of lower PPP loan forgiveness in ~~CBB, and lower NII in Home Lending driven by tighter loan spreads.~~BWM.

Noninterest revenue was ~~$11.6~~$7.2 billion, down ~~14%~~7%, driven by:

•~~lower production revenue from lower margins and volume in Home Lending,~~

•~~lower card income reflecting higher amortization related to new account origination costs, and~~

•lower auto operating lease income as a result of a decline in volume and

•in Home Lending, lower production revenue from a decline in volume and lower net mortgage servicing revenue predominantly driven by lower net gains on MSR risk management,

partially offset by

•higher ~~net mortgage servicing revenue due to a net gain~~travel-related commissions in ~~MSR risk management compared with a net loss in the prior year driven by updates to model inputs and higher operating revenue on a higher level of third-party loans serviced,~~Card Services,

•higher asset management ~~administration and commissions revenue predominantly~~fees in BWM driven by ~~travel-related commissions~~the impact of the First Republic acquisition.

Card income was relatively flat as the increase in net interchange in the first quarter of 2023 due to a reduction in rewards costs and ~~increased annuity sales, and~~partner payments related to a periodic tax refund on airline miles redeemed was offset by an increase to the rewards liability due to adjustments to certain reward program terms in the second quarter of 2023.

Noninterest expense was $16.4 billion, up 7%, driven by:

•higher ~~deposit-related fees due to~~compensation expense, including wage inflation and headcount growth, as well as higher ~~service fee volume.~~

~~Noninterest expense was $23.5 billion, up 9%, reflecting:~~

•~~investments in the business and increased structural expenses, largely driven by compensation,~~ marketing and technology,

partially offset by

•lower ~~volume- and revenue-related expenses, largely driven by lower~~auto lease depreciation ~~expense~~ on lower auto lease ~~assets, partially offset by higher operating losses.~~assets.

The provision for credit losses was ~~$2.0~~$3.3 billion, ~~reflecting:~~and included:

•net charge-offs of ~~$1.8~~$2.3 billion, ~~down $403 million,~~up $1.1 billion, predominantly driven by Card ~~reflecting the ongoing financial strength of U.S. consumers. However, median deposit balances continue~~Services, as 30+ day delinquencies have returned to ~~decline, impacted by the growth in consumer spending,~~pre-pandemic levels, and

•a ~~$125~~$553 million net addition, predominantly driven by Card Services, reflecting loan growth, the net effect of changes in the Firm's macroeconomic outlook, including the impact from the weighted average U.S. unemployment rate peaking in the third quarter of 2024, and the additional weight placed on the adverse scenarios in the first quarter of 2023, partially offset by reduced borrower uncertainty, and

•a $408 million net addition to the allowance for credit losses ~~driven by Card, reflecting higher outstanding balances, predominantly offset by a reduction related~~ to ~~a decrease~~establish the allowance for the First Republic loans and lending-related commitments, in ~~uncertainty associated with borrower behavior as~~ the ~~effects~~second quarter of ~~the pandemic gradually recede.~~2023.

The prior year included ~~an $8.2 billion reduction in~~a $275 million addition to the allowance for credit losses ~~across CCB.~~

in Card Services and Home Lending.

2426


Selected metrics	Selected metrics												Selected metrics
		As of or for the three months ended September 30,					As of or for the nine months ended September 30,							As of or for the three months ended June 30,							As of or for the six months ended June 30,
(in millions, except headcount)	(in millions, except headcount)	2022		2021		Change	2022		2021		Change		(in millions, except headcount)	2023			2022		Change		2023			2022		Change
Selected balance sheet data (period-end)	Selected balance sheet data (period-end)												Selected balance sheet data (period-end)
Total assets	Total assets	$	500,752	$	493,169	2%	$	500,752	$	493,169	2	%	Total assets	$	620,193		$	500,219	24	%	$	620,193		$	500,219	24	%
Loans:	Loans:												Loans:
Consumer & Business Banking(a)		30,230		40,659		(26)	30,230		40,659		(26)
Banking & Wealth Management(a)													Banking & Wealth Management(a)	30,959		(d)	31,494		(2)		30,959		(d)	31,494		(2)
Home Lending(b)	Home Lending(b)	174,618		179,489		(3)	174,618		179,489		(3)		Home Lending(b)	262,432		(d)	176,939		48		262,432		(d)	176,939		48
Card		170,462		143,166		19	170,462		143,166		19
Card Services													Card Services	191,353			165,494		16		191,353			165,494		16
Auto	Auto	67,201		68,391		(2)	67,201		68,391		(2)		Auto	73,587			67,842		8		73,587			67,842		8
Total loans	Total loans	442,511		431,705		3	442,511		431,705		3		Total loans	558,331			441,769		26		558,331			441,769		26
Deposits	Deposits	1,173,241		1,093,852		7	1,173,241		1,093,852		7		Deposits	1,173,514		(e)	1,178,825		—		1,173,514		(e)	1,178,825		—
Equity	Equity	50,000		50,000		—	50,000		50,000		—		Equity	55,500��			50,000		11		55,500			50,000		11
Selected balance sheet data (average)	Selected balance sheet data (average)												Selected balance sheet data (average)
Total assets	Total assets	$	498,858	$	491,512	1	$	494,704	$	487,107	2		Total assets	$	576,417		$	496,177	16		$	541,788		$	492,592	10
Loans:	Loans:												Loans:
Consumer & Business Banking		30,788		43,256		(29)	32,264		47,469		(32)
Banking & Wealth Management													Banking & Wealth Management	30,628		(f)	32,294		(5)		29,572		(f)	33,014		(10)
Home Lending(c)	Home Lending(c)	176,852		181,150		(2)	176,891		180,276		(2)		Home Lending(c)	229,569		(f)	177,330		29		201,005		(f)	176,911		14
Card		168,125		141,950		18	158,721		137,687		15
Card Services													Card Services	187,028			158,434		18		183,758			153,941		19
Auto	Auto	66,979		67,785		(1)	68,258		67,313		1		Auto	71,083			68,569		4		69,920			68,908		1
Total loans	Total loans	442,744		434,141		2	436,134		432,745		1		Total loans	518,308			436,627		19		484,255			432,774		12
Deposits	Deposits	1,174,227		1,076,323		9	1,169,474		1,034,947		13		Deposits	1,157,309		(g)	1,180,453		(2)		1,135,261		(g)	1,167,057		(3)
Equity	Equity	50,000		50,000		—	50,000		50,000		—		Equity	54,346			50,000		9		53,180			50,000		6

Headcount	Headcount	133,803		126,586		6%	133,803		126,586		6	%	Headcount	137,087			130,907		5	%	137,087			130,907		5	%

(a)At ~~September~~June 30, 2023 and 2022, ~~and 2021,~~ included ~~$791~~$163 million and ~~$11.1~~$1.5 billion of loans, respectively, in Business Banking under the PPP. Refer to Credit Portfolio on ~~page 109~~pages 108-109 of JPMorgan Chase's ~~2021~~2022 Form 10-K for a further discussion onof the PPP.

(b)At ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, Home Lending loans held-for-sale and loans at fair value were ~~$4.1~~$3.9 billion and ~~$14.5~~$5.2 billion, respectively.

(c)Average Home Lending loans held-for sale and loans at fair value were ~~$5.9~~$5.3 billion and ~~$17.1~~$8.1 billion for the three months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, and ~~$8.3~~$4.4 billion and ~~$14.6~~$9.5 billion for the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.

(d)As of June 30, 2023, included $3.4 billion and $91.3 billion for Banking & Wealth Management and Home Lending, respectively, associated with the First Republic acquisition.

(e)Includes the impact of the First Republic acquisition. Refer to page 24 for additional information.

(f)For the three months ended June 30, 2023, included $2.7 billion and $57.2 billion for Banking & Wealth Management and Home Lending, respectively, and for the six months ended June 30, 2023, included $1.4 billion and $28.7 billion for Banking & Wealth Management and Home Lending, respectively, associated with the First Republic acquisition.

(g)For the three and six months ended June 30, 2023, included $47.2 billion and $23.7 billion, respectively, associated with the First Republic acquisition.

2527


Selected metrics	Selected metrics															Selected metrics
		As of or for the three months ended September 30,							As of or for the nine months ended September 30,								As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except ratio data)	(in millions, except ratio data)	2022			2021			Change	2022			2021			Change	(in millions, except ratio data)	2023			2022			Change		2023			2022			Change
Credit data and quality statistics	Credit data and quality statistics															Credit data and quality statistics
Nonaccrual loans~~(c)~~(b)	Nonaccrual loans~~(c)~~(b)	$	3,936		$	5,000		(21)%	$	3,936		$	5,000		(21)%	Nonaccrual loans~~(c)~~(b)	$	3,823		$	4,217		(9)	%	$	3,823		$	4,217		(9)	%
Net charge-offs/(recoveries)	Net charge-offs/(recoveries)															Net charge-offs/(recoveries)
Consumer & Business Banking		105			66			59	275			203			35
Banking & Wealth Management																Banking & Wealth Management	92			81			14		171			170			1
Home Lending	Home Lending	(59)			(74)			20	(196)			(204)			4	Home Lending	(28)			(68)			59		(46)			(137)			66
Card		592			495			20	1,678			2,233			(25)
Card Services																Card Services	1,124			580			94		2,046			1,086			88
Auto	Auto	41			4			NM	86			14			NM	Auto	63			18			250		132			45			193
Total net charge-offs/(recoveries)	Total net charge-offs/(recoveries)	$	679		$	491		38	$	1,843		$	2,246		(18)	Total net charge-offs/(recoveries)	$	1,251		$	611		105		$	2,303		$	1,164		98

Net charge-off/(recovery) rate	Net charge-off/(recovery) rate															Net charge-off/(recovery) rate
Consumer & Business Banking(d)		1.35		%	0.61		%		1.14		%	0.57		%
Banking & Wealth Management(c)																Banking & Wealth Management(c)	1.20		%	1.01		%			1.17		%	1.04		%
Home Lending	Home Lending	(0.14)			(0.18)				(0.16)			(0.16)				Home Lending	(0.05)			(0.16)					(0.05)			(0.16)
Card		1.40			1.39				1.41			2.18
Card Services																Card Services	2.41			1.47					2.25			1.42
Auto	Auto	0.24			0.02				0.17			0.03				Auto	0.36			0.11					0.38			0.13
Total net charge-off/(recovery) rate	Total net charge-off/(recovery) rate	0.62		%	0.47		%		0.58		%	0.72		%		Total net charge-off/(recovery) rate	0.98		%	0.57		%			0.97		%	0.55		%

30+ day delinquency rate	30+ day delinquency rate															30+ day delinquency rate
Home Lending~~(f)~~(e)	Home Lending~~(f)~~(e)	0.78		%	1.06		%		0.78		%	1.06		%		Home Lending~~(f)~~(e)	0.58		%	0.85		%			0.58		%	0.85		%
Card		1.23			1.00				1.23			1.00
Card Services																Card Services	1.70			1.05					1.70			1.05
Auto	Auto	0.75			0.46				0.75			0.46				Auto	0.92			0.69					0.92			0.69

90+ day delinquency rate - Card		0.57		%	0.49		%		0.57		%	0.49		%
90+ day delinquency rate - Card Services																90+ day delinquency rate - Card Services	0.84		%	0.51		%			0.84		%	0.51		%

Allowance for loan losses	Allowance for loan losses															Allowance for loan losses
Consumer & Business Banking		$	722		$	797		(9)	$	722		$	797		(9)
Banking & Wealth Management																Banking & Wealth Management	$	731		$	697		5		$	731		$	697		5
Home Lending	Home Lending	667			630			6	667			630			6	Home Lending	777		(f)	785			(1)		777		(f)	785			(1)
Card		10,400			11,650			(11)	10,400			11,650			(11)
Card Services																Card Services	11,600			10,400			12		11,600			10,400			12
Auto	Auto	715			813			(12)	715			813			(12)	Auto	717			740			(3)		717			740			(3)
Total allowance for loan losses	Total allowance for loan losses	$	12,504		$	13,890		(10)%	$	12,504		$	13,890		(10)%	Total allowance for loan losses	$	13,825	(g)	$	12,622		10	%	$	13,825	(g)	$	12,622		10	%

(a)At ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of ~~$219~~$139 million and ~~$355~~$257 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

(b)At ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic. Refer to ~~Consumer~~ Credit Portfolio on pages ~~110-116~~108-109 of JPMorgan Chase's ~~2021~~2022 Form 10-K for further information on consumer payment assistance activity. Includes loans to customers that have exited COVID-19 related payment deferral programs and are 90 or more days past due, predominantly all of which were considered collateral-dependent at time of exit.assistance.

(c)At ~~September~~June 30, 2023 and 2022, ~~and 2021, nonaccrual loans excluded $57~~included $163 million and ~~$5 million of PPP loans 90 or more days past due and guaranteed by the SBA, respectively.~~

~~(d)At September 30, 2022 and 2021, included $791 million and $11.1~~$1.5 billion of loans, respectively, in Business Banking under the PPP. The Firm does not expect to realize material credit losses on PPP loans because the loans are guaranteed by the SBA. Refer to Credit Portfolio on ~~page 109~~pages 108-109 of JPMorgan Chase's ~~2021~~2022 Form 10-K for a further discussion of the PPP.

~~(e)~~(d)At ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, the principal balance of loans under payment deferral programs offered in response to the COVID-19 pandemic was ~~$454~~$177 million and ~~$3.1 billion~~$513 million in Home Lending, respectively. Loans that are performing according to their modified terms are generally not considered delinquent. Refer to ~~Consumer~~ Credit Portfolio on pages ~~110-116~~108-109 of JPMorgan Chase's ~~2021~~2022 Form 10-K for further information on consumer ~~payment assistance activity.~~assistance.

~~(f)~~(e)At ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, excluded mortgage loans insured by U.S. government agencies of ~~$284~~$195 million and ~~$432~~$315 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.

(f)As of June 30, 2023, included a $377 million allowance established as part of the First Republic acquisition.

(g)On January 1, 2023, the Firm adopted changes to the TDR accounting guidance. The adoption of this guidance resulted in a net decrease in the allowance for loan losses of $591 million, driven by residential real estate and credit card. Refer to Note 1 for further information.


Selected metrics	Selected metrics																Selected metrics
		As of or for the three months ended September 30,							As of or for the nine months ended September 30,									As of or for the three months ended June 30,									As of or for the six months ended June 30,
(in billions, except ratios and where otherwise noted)	(in billions, except ratios and where otherwise noted)	2022			2021			Change	2022			2021				Change	(in billions, except ratios and where otherwise noted)	2023				2022			Change		2023				2022			Change
Business Metrics	Business Metrics																Business Metrics
Number of branches	Number of branches	4,802			4,854			(1)%	4,802			4,854				(1)%	Number of branches	4,874				4,822			1	%	4,874				4,822			1	%
Active digital customers (in thousands)(a)	Active digital customers (in thousands)(a)	61,985			57,961			7	61,985			57,961				7	Active digital customers (in thousands)(a)	65,559			(f)	60,735			8		65,559			(f)	60,735			8
Active mobile customers (in thousands)(b)	Active mobile customers (in thousands)(b)	48,904			44,333			10	48,904			44,333				10	Active mobile customers (in thousands)(b)	51,963			(f)	47,436			10		51,963			(f)	47,436			10
Debit and credit card sales volume	Debit and credit card sales volume	$	395.8		$	349.9		13	$	1,144.3		$	984.5			16	Debit and credit card sales volume	$	424.0			$	397.0		7		$	811.3			$	748.5		8
Total payments transaction volume (in trillions)(c)																	Total payments transaction volume (in trillions)(c)	1.5			(f)	1.5			—		2.9			(f)	2.8			4

Consumer & Business Banking
Banking & Wealth Management																	Banking & Wealth Management
Average deposits	Average deposits	$	1,156.9		$	1,056.3		10	$	1,152.2		$	1,015.5			13	Average deposits	$	1,142.8		(g)	$	1,163.4		(2)		$	1,120.7		(g)	$	1,149.8		(3)
Deposit margin	Deposit margin	1.83		%	1.29		%		1.46		%	1.29		%			Deposit margin	2.83		%		1.31		%			2.81		%		1.27		%
Business Banking average loans																	Business Banking average loans	$	19.6			$	22.8		(14)		$	19.8			$	23.8		(17)
Business banking origination volume	Business banking origination volume	$	1.0		$	0.8		17	$	3.2		$	13.1		(f)	(75)	Business banking origination volume	1.3				1.2			7		2.3				2.2			4
Client investment assets(c)		615.0			681.5			(10)	615.0			681.5				(10)
Client investment assets(d)																	Client investment assets(d)	892.9				628.5			42		892.9				628.5			42
Number of client advisors	Number of client advisors	5,017			4,689			7	5,017			4,689				7	Number of client advisors	5,153				4,890			5		5,153				4,890			5

Home Lending	Home Lending																Home Lending
Mortgage origination volume by channel	Mortgage origination volume by channel																Mortgage origination volume by channel
Retail	Retail	$	7.8		$	23.7		(67)	$	33.9		$	69.4			(51)	Retail	$	7.3		(h)	$	11.0		(34)		$	10.9		(h)	$	26.1		(58)
Correspondent	Correspondent	4.3			17.9			(76)	24.8			51.1				(51)	Correspondent	3.9				10.9			(64)		6.0				20.5			(71)
Total mortgage origination volume(d)		$	12.1		$	41.6		(71)	$	58.7		$	120.5			(51)
Total mortgage origination volume(e)																	Total mortgage origination volume(e)	$	11.2			$	21.9		(49)		$	16.9			$	46.6		(64)

Third-party mortgage loans serviced (period-end)	Third-party mortgage loans serviced (period-end)	$	586.7		$	509.3		15	586.7			$	509.3			15	Third-party mortgage loans serviced (period-end)	$	604.5			$	575.6		5		604.5				$	575.6		5
MSR carrying value (period-end)	MSR carrying value (period-end)	8.1			5.3			53	8.1			5.3				53	MSR carrying value (period-end)	8.2				7.4			11		8.2				7.4			11
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)		1.38		%	1.04		%		1.38		%	1.04		%
MSR revenue multiple(e)		4.93		x	3.85		x		4.93		x	3.85		x

Credit Card
Credit card sales volume, excluding commercial card		$	272.3		$	232.0		17	$	779.9		$	639.4			22
Card Services																	Card Services
Sales volume, excluding commercial card																	Sales volume, excluding commercial card	$	294.0			$	271.2		8		$	560.2			$	507.6		10
Net revenue rate	Net revenue rate	9.92		%	9.74		%		9.79		%	10.84		%			Net revenue rate	9.11		%		9.59		%			9.73		%		9.72		%
Net yield on average loans																	Net yield on average loans	9.31				9.50					9.60				9.73

Auto	Auto																Auto
Loan and lease origination volume	Loan and lease origination volume	$	7.5		$	11.5		(35)	$	22.9		$	35.1			(35)	Loan and lease origination volume	$	12.0			$	7.0		71		$	21.2			$	15.4		38
Average auto operating lease assets	Average auto operating lease assets	13.5			18.8			(28)%	14.9			19.5				(24)%	Average auto operating lease assets	11.0				14.9			(26)	%	11.3				15.6			(28)	%

(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)Total payments transaction volume includes debit and credit card sales volume and gross outflows of ACH, ATM, teller, wires, BillPay, PayChase, Zelle, person-to-person and checks.

(d)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages ~~38-41~~41-44 for additional information. As of June 30, 2023, included $150.9 billion of client investment assets associated with the First Republic acquisition.

~~(d)~~(e)Firmwide mortgage origination volume was ~~$15.2~~$13.0 billion and ~~$46.1~~$27.9 billion for the three months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, and ~~$73.3~~$19.8 billion and ~~$134.2~~$58.1 billion for the ~~nine~~six months ended ~~September~~June 30, 2023 and 2022, ~~and 2021,~~ respectively.

~~(e)~~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).

(f)~~Included origination volume under~~Excludes the ~~PPP~~impact of ~~$10.6 billion for~~ the ~~nine~~First Republic acquisition.

(g)For the three and six months ended ~~September~~June 30, ~~2021. The program~~2023, included $47.2 billion and $23.7 billion, respectively, associated with the First Republic acquisition.

(h)For the three and six months ended ~~on May 31, 2021 for new applications.~~June 30, 2023, included $1.1 billion associated with the First Republic acquisition.

2729

CORPORATE & INVESTMENT BANK

Refer to pages 67-72 of JPMorgan Chase’s ~~2021~~2022 Form 10-K and Line of Business Metrics on page ~~190~~206 for a further discussion of the business profile of CIB.


Selected income statement data	Selected income statement data																			Selected income statement data
		Three months ended September 30,									Nine months ended September 30,										Three months ended June 30,									Six months ended June 30,
(in millions, except ratios)	(in millions, except ratios)	2022			2021				Change		2022			2021				Change		(in millions, except ratios)	2023			2022				Change		2023			2022				Change
Revenue	Revenue																			Revenue
Investment banking fees(a)	Investment banking fees(a)	$	1,762		$	3,297			(47)	%	$	5,462		$	9,857			(45)	%	Investment banking fees(a)	$	1,557		$	1,650			(6)	%	$	3,211		$	3,700			(13)	%
Principal transactions	Principal transactions	5,258			3,577				47		15,529			13,648				14		Principal transactions	6,697			5,048				33		14,105			10,271				37
Lending- and deposit-related fees	Lending- and deposit-related fees	589			634				(7)		1,871			1,860				1		Lending- and deposit-related fees	533			641				(17)		1,072			1,282				(16)
Asset management, administration and commissions		1,198			1,240				(3)		3,867			3,772				3
Commissions and other fees																				Commissions and other fees	1,219			1,328				(8)		2,453			2,660				(8)
Card income																				Card income	400			337			(c)	19		715			603			(c)	19
All other income	All other income	424			313				35		1,208			924				31		All other income	396			(199)			(c)	NM		769			293			(c)	162
Noninterest revenue	Noninterest revenue	9,231			9,061				2		27,937			30,061				(7)		Noninterest revenue	10,802			8,805				23		22,325			18,809				19
Net interest income	Net interest income	2,644			3,335				(21)		9,414			10,154				(7)		Net interest income	1,717			3,198				(46)		3,794			6,770				(44)
Total net revenue(a)		11,875			12,396				(4)		37,351			40,215				(7)

Total net revenue(b)																				Total net revenue(b)	12,519			12,003				4		26,119			25,579				2
Provision for credit losses	Provision for credit losses	513			(638)				NM		1,017			(1,048)				NM		Provision for credit losses	38			59				(36)		96			504				(81)

Noninterest expense	Noninterest expense																			Noninterest expense
Compensation expense	Compensation expense	3,311			2,827				17		10,827			10,738				1		Compensation expense	3,461			3,510				(1)		7,546			7,516				—
Noncompensation expense	Noncompensation expense	3,307			3,044				9		9,834			8,760				12		Noncompensation expense	3,433			3,300			(c)	4		6,831			6,657			(c)	3
Total noninterest expense	Total noninterest expense	6,618			5,871				13		20,661			19,498				6		Total noninterest expense	6,894			6,810				1		14,377			14,173				1
Income before income tax expense	Income before income tax expense	4,744			7,163				(34)		15,673			21,765				(28)		Income before income tax expense	5,587			5,134				9		11,646			10,902				7
Income tax expense	Income tax expense	1,212			1,516			(b)	(20)		4,031			5,174			(b)	(22)		Income tax expense	1,495			1,417			(c)	6		3,133			2,813			(c)	11
Net income	Net income	$	3,532		$	5,647		(b)	(37)	%	$	11,642		$	16,591		(b)	(30)	%	Net income	$	4,092		$	3,717			10	%	$	8,513		$	8,089			5	%
Financial ratios	Financial ratios																			Financial ratios
Return on equity	Return on equity	13		%	26		%				14		%	26		%	(b)			Return on equity	15		%	14		%				15		%	15		%
Overhead ratio	Overhead ratio	56			47						55			48						Overhead ratio	55			57			(c)			55			55
Compensation expense as percentage of total net revenue	Compensation expense as percentage of total net revenue	28			23						29			27						Compensation expense as percentage of total net revenue	28			29						29			29			(c)

(a)Includes CB's share of revenue from investment banking products sold to CB clients through the CIB that is subject to a revenue sharing arrangement which is reported as a reduction in All other income.

(b)Includes tax-equivalent adjustments, predominantly due to income tax credits and other tax benefits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; and tax-exempt income from municipal bonds of ~~$626~~$953 million and ~~$641~~$772 million for the three months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively and ~~$2.1~~$1.8 billion and $1.5 billion for ~~both~~ the ~~nine~~six months ended ~~September~~June 30, 2023 and 2022, ~~and 2021.~~respectively.

~~(b)~~(c)In the first quarter of ~~2022,~~2023, the ~~Firm changed its methodology for allocating income taxes~~allocations of revenue and expense to ~~the LOBs,~~CCB associated with ~~no impact to Firmwide net income.~~a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.


Selected income statement data	Selected income statement data											Selected income statement data
		Three months ended September 30,					Nine months ended September 30,						Three months ended June 30,							Six months ended June 30,
(in millions)	(in millions)	2022		2021		Change	2022		2021		Change	(in millions)	2023		2022			Change		2023		2022			Change
Revenue by business	Revenue by business											Revenue by business
Investment Banking	Investment Banking	$	1,713	$	3,025	(43)%	$	5,121	$	9,300	(45)%	Investment Banking	$	1,494	$	1,351		11	%	$	3,054	$	3,408		(10)	%
Payments	Payments	1,989		1,624		22	5,306		4,469		19	Payments	2,451		1,519		(b)	61		4,847		3,420		(b)	42
Lending	Lending	323		244		32	1,054		738		43	Lending	299		410			(27)		566		731			(23)
Total Banking	Total Banking	4,025		4,893		(18)	11,481		14,507		(21)	Total Banking	4,244		3,280			29		8,467		7,559			12
Fixed Income Markets	Fixed Income Markets	4,469		3,672		22	14,878		13,531		10	Fixed Income Markets	4,567		4,711			(3)		10,266		10,409			(1)
Equity Markets	Equity Markets	2,302		2,597		(11)	8,436		8,575		(2)	Equity Markets	2,451		3,079			(20)		5,134		6,134			(16)
Securities Services	Securities Services	1,110		1,126		(1)	3,329		3,264		2	Securities Services	1,221		1,151			6		2,369		2,219			7
Credit Adjustments & Other(a)	Credit Adjustments & Other(a)	(31)		108		NM	(773)		338		NM	Credit Adjustments & Other(a)	36		(218)			NM		(117)		(742)			84
Total Markets & Securities Services	Total Markets & Securities Services	7,850		7,503		5	25,870		25,708		1	Total Markets & Securities Services	8,275		8,723			(5)		17,652		18,020			(2)
Total net revenue	Total net revenue	$	11,875	$	12,396	(4)%	$	37,351	$	40,215	(7)%	Total net revenue	$	12,519	$	12,003		4	%	$	26,119	$	25,579		2	%

(a)Consists primarily of centrally managed credit valuation adjustments (“CVA”), funding valuation adjustments (“FVA”) on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.

(b)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.

2830

Quarterly results

Net income was ~~$3.5~~$4.1 billion, ~~down 37%~~up 10%.

Net revenue was ~~$11.9~~$12.5 billion, ~~down~~up 4%.

Banking revenue was ~~$4.0~~$4.2 billion, ~~down 18%~~up 29%.

•Investment Banking revenue was ~~$1.7~~$1.5 billion, up 11%. Excluding $257 million of markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio recorded in the prior year, Investment Banking revenue was down ~~43%~~7%. Investment Banking fees were down 6%, driven by lower ~~Investment Banking fees, down 47%, reflecting lower fees~~ ~~across products.~~advisory fees. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.

–E~~quity underwriting~~Advisory fees were ~~$290~~$540 million, down ~~72%~~19%, ~~and d~~due to a lower level of announced deals in prior periods amid a challenging environment.

–Debt underwriting fees were ~~$624~~$699 million, down ~~40%~~6%, as ~~volatile~~challenging market conditions resulted in lower issuance ~~activity.~~activity in the leveraged loan market primarily related to acquisition financing.

–~~Advisory~~Equity underwriting fees were ~~$848~~$318 million, ~~down 31%~~up 30%, ~~driven by a~~primarily due to higher convertible securities offerings and, in the second half of the quarter, follow-on offerings that benefited from the lower ~~level of announced deals.~~equity market volatility.

•Payments revenue was ~~$2.0~~$2.5 billion, up ~~22%, and included~~61%. Excluding the net impact of equity ~~investments. Excluding this net impact,~~investments, Payments revenue was ~~$ 2.1 billion,~~ up ~~41%~~32%, driven by ~~improved~~ deposit ~~margins and growth in fees~~margin expansion on higher ~~volumes.~~rates, partially offset by lower average deposits.

•Lending revenue was ~~$323~~$299 million, ~~up 32%~~down 27%, ~~driven by higher net interest income~~and included $80 million of fair value losses on ~~higher~~hedges of retained loans.

Markets & Securities Services revenue was ~~$7.9~~$8.3 billion, updown 5%. Markets revenue was ~~$6.8~~$7.0 billion, ~~up 8%~~down 10%.

•Fixed Income Markets revenue was ~~$4.5~~$4.6 billion, ~~up 22%~~down 3%, ~~as elevated volatility drove strong performance in the macro businesses, particularly~~reflecting lower revenue in Currencies & Emerging Markets, Commodities and Rates ~~partially~~as the macro businesses substantially normalized from the prior year's elevated levels of volatility and client activity, largely offset by ~~lower~~higher revenue in the Securitized ~~Products.~~Products Group and Credit Trading.

•Equity Markets revenue was ~~$2.3~~$2.5 billion, down ~~11%~~20%, predominantly driven by lower revenue ~~across products~~in Equity Derivatives, compared to a ~~record third~~strong second quarter in the prior year.

•Securities Services revenue was ~~$1.1~~$1.2 billion, ~~down 1%~~up 6%, driven by deposit margin expansion on higher rates, largely offset by lower ~~market levels~~fees and lower ~~deposits, predominantly offset by improved deposit margins.~~average deposits.

•Credit Adjustments & Other was a ~~loss~~gain of ~~$31~~$36 million, compared with a ~~gain~~loss of ~~$108~~$218 million in the prior ~~year.~~year, largely driven by funding spread widening.

Noninterest expense was ~~$6.6~~$6.9 billion, up ~~13%~~1%, ~~predominantly~~ driven by higher ~~structural~~non-compensation expense, ~~investments in the business~~as well as wage inflation and headcount growth, largely offset by lower revenue-related ~~expense, including~~ compensation.

The provision for credit losses was ~~$513~~$38 million, ~~predominantly driven by an addition to the allowance for credit losses associated with loan and lending-related commitment activity and the impact~~including net charge-offs of ~~updates to the Firm’s macroeconomic scenarios.~~$56 million.

The ~~provision for credit losses in the~~ prior year provision was ~~a net benefit of $638~~$59 million.

Refer to Credit and Investment Risk Management on pages ~~57-76~~62-83 and Allowance for Credit Losses on pages ~~73-75~~80-82 for a further ~~discussions~~discussion of the credit portfolios and the allowance for credit losses.

Year-to-date results

Net income was ~~$11.6~~$8.5 billion, ~~down 30%~~up 5%.

Net revenue was ~~$37.4~~$26.1 billion, ~~down 7%~~up 2%.

Banking revenue was ~~$11.5~~$8.5 billion, ~~down 21%~~up 12%.

•Investment Banking revenue was ~~$5.1~~$3.1 billion, down ~~45%, driven by lower Investment Banking fees, down 45%, reflecting lower fees across products,~~ ~~and $225~~10%. Excluding $257 million of markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio recorded in the second quarter of ~~2022.~~2022, Investment Banking revenue was down 17%. Investment Banking fees were down 13%, driven by lower debt underwriting and advisory fees. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.

–~~Equity~~Debt underwriting fees were ~~$784 million, down 75%, and debt underwriting fees were $2.4~~$1.4 billion, down ~~39%~~22%, as ~~volatile~~challenging market conditions resulted in lower issuance ~~activity.~~activity in acquisition financing.

–Advisory fees were ~~$2.3~~$1.3 billion, down ~~18%~~12%, ~~driven by~~due to a lower level of announced ~~deals.~~deals in prior periods amid a challenging environment.

–Equity underwriting fees were $553 million, up 12%, primarily due to higher convertible securities offerings and, in the second half of the second quarter, follow-on offerings that benefited from the lower equity market volatility.

•Payments revenue was ~~$5.3~~$4.8 billion, up ~~19%~~42%, ~~and included the net impact of equity investments. Excluding this net impact, Payments revenue was $5.4 billion, up 25%~~ driven by ~~improved~~ deposit ~~margins and growth in fees~~margin expansion on higher ~~volumes.~~rates, partially offset by lower average deposits.

•Lending revenue was ~~$1.1 billion, up 43%~~$566 million, down 23%, driven by $183 million of fair value losses on hedges of retained loans, compared to $112 million of gains in the prior year, partially offset by higher net interest ~~income on higher loans, as well as fair value gains on hedges of accrual loans, compared with losses in the prior year.~~income.

Markets & Securities Services revenue was ~~$25.9~~$17.7 billion, ~~up 1%~~down 2%. Markets revenue was ~~$23.3~~$15.4 billion, ~~up 5%~~down 7%.

•Fixed Income Markets revenue was ~~$14.9~~$10.3 billion, ~~up 10%~~down 1%, ~~driven by higher~~reflecting lower revenue ~~in macro businesses, particularly~~ in Currencies & Emerging Markets ~~partially~~and Commodities, largely offset by ~~lower~~higher revenue in Rates, the Securitized ~~Products.~~Products Group and Credit Trading.

•Equity Markets revenue was ~~$8.4~~$5.1 billion, down 2%16%, predominantly driven by lower revenue in ~~Cash Equities, largely offset by~~Equity Derivatives.

•Securities Services revenue was ~~$3.3~~$2.4 billion, up 2%7%, driven by ~~improved~~ deposit ~~margins and growth in fees,~~margin expansion on higher rates, largely offset by lower ~~market levels~~fees and lower average deposits.

•Credit Adjustments & Other was a loss of ~~$773~~$117 million, ~~reflecting~~driven by losses on certain components of fair value option elected liabilities, compared with a loss of $742 million in the prior year, which was predominantly driven

by funding spread widening, and to a lesser extent losses on exposure relating to commodities and Russia and Russia-associated ~~counterparties, compared with a gain of $338 million in the prior year.~~counterparties.

Noninterest expense was ~~$20.7~~$14.4 billion, up 6%1%, ~~predominantly~~ driven by headcount growth, wage inflation and higher ~~structural~~non-compensation expense, ~~and investments in the business, including higher compensation, as well as higher legal expense, partially~~largely offset by lower ~~volume- and revenue-related expense primarily~~ revenue-related compensation.

The provision for credit losses was ~~$1.0 billion, predominantly~~$96 million, driven by a net ~~addition to the allowance for credit losses, reflecting the impact~~charge-offs of ~~updates to the Firm's macroeconomic forecast and loan growth.~~$106 million.

The ~~provision for credit losses in the~~ prior year provision was ~~a net benefit of $1.0 billion, driven by a net reduction in the allowance for credit losses.~~$504 million.

Selected metrics
As of or for the three months
ended September 30, As of or for the nine months
ended September 30,
(in millions, except headcount) 2022 2021 Change 2022 2021 Change
Selected balance sheet data (period-end)
Total assets $ 1,384,618 $ 1,355,752 2 % $ 1,384,618 $ 1,355,752 2 %
Loans:
Loans retained(a)
180,604 151,211 19 180,604 151,211 19
Loans held-for-sale and loans at fair value(b)
40,357 52,436 (23) 40,357 52,436 (23)
Total loans 220,961 203,647 9 220,961 203,647 9
Equity 103,000 83,000 24 103,000 83,000 24
Selected balance sheet data (average)
Total assets $ 1,403,247 $ 1,331,240 5 $ 1,413,662 $ 1,332,244 6
Trading assets-debt and equity instruments 386,895 442,623 (13) 405,655 461,728 (12)
Trading assets-derivative receivables 83,084 64,730 28 77,846 69,159 13
Loans:
Loans retained(a)
$ 176,469 $ 149,826 18 $ 169,175 $ 142,286 19
Loans held-for-sale and loans at fair value(b)
45,150 53,712 (16) 48,176 50,616 (5)
Total loans $ 221,619 $ 203,538 9 $ 217,351 $ 192,902 13
Equity 103,000 83,000 24 103,000 83,000 24
Headcount 71,797 66,267 8 % 71,797 66,267 8 %


Selected metrics
	As of or for the three months ended June 30,						As of or for the six months ended June 30,
(in millions, except headcount)	2023		2022		Change		2023		2022		Change
Selected balance sheet data (period-end)
Total assets	$	1,432,054	$	1,403,558	2	%	$	1,432,054	$	1,403,558	2	%
Loans:
Loans retained(a)	194,450		171,219		14		194,450		171,219		14
Loans held-for-sale and loans at fair value(b)	38,959		46,032		(15)		38,959		46,032		(15)
Total loans	233,409		217,251		7		233,409		217,251		7
Equity	108,000		103,000		5		108,000		103,000		5
Selected balance sheet data (average)
Total assets	$	1,461,857	$	1,429,953	2		$	1,445,848	$	1,418,955	2
Trading assets-debt and equity instruments	533,082		411,079		30		511,047		415,190		23
Trading assets-derivative receivables	63,094		83,582		(25)		63,553		75,184		(15)
Loans:
Loans retained(a)	$	189,153	$	169,909	11		$	187,372	$	165,467	13
Loans held-for-sale and loans at fair value(b)	38,132		48,048		(21)		40,339		49,714		(19)
Total loans	$	227,285	$	217,957	4		$	227,711	$	215,181	6
Deposits	722,818		773,664		(7)		711,266		765,200		(7)
Equity	108,000		103,000		5		108,000		103,000		5
Headcount	74,822		69,447		8	%	74,822		69,447		8	%

(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)Loans held-for-sale and loans at fair value primarily reflect ~~lending related~~lending-related positions originated and purchased in ~~CIB~~ Markets, including loans held for securitization.

Selected metrics
As of or for the three months
ended September 30, As of or for the nine months
ended September 30,
(in millions, except ratios) 2022 2021 Change 2022 2021 Change
Credit data and quality statistics
Net charge-offs/(recoveries) $ 17 $ 2 NM $ 75 $ (17) NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained(a)
$ 583 $ 547 7 $ 583 $ 547 7
Nonaccrual loans held-for-sale and loans at fair value(b)
824 1,234 (33) 824 1,234 (33)
Total nonaccrual loans 1,407 1,781 (21) 1,407 1,781 (21)
Derivative receivables 339 393 (14) 339 393 (14)
Assets acquired in loan satisfactions 85 95 (11) 85 95 (11)
Total nonperforming assets $ 1,831 $ 2,269 (19) $ 1,831 $ 2,269 (19)
Allowance for credit losses:
Allowance for loan losses $ 2,032 $ 1,442 41 $ 2,032 $ 1,442 41
Allowance for lending-related commitments 1,582 1,426 11 1,582 1,426 11
Total allowance for credit losses $ 3,614 $ 2,868 26 % $ 3,614 $ 2,868 26 %
Net charge-off/(recovery) rate(c)
0.04 % 0.01 % 0.06 % (0.02) %
Allowance for loan losses to period-end loans retained 1.13 0.95 1.13 0.95
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits(d)
1.49 1.29 1.49 1.29
Allowance for loan losses to nonaccrual loans retained(a)
349 264 349 264
Nonaccrual loans to total period-end loans 0.64 % 0.87 % 0.64 % 0.87 %


Selected metrics
	As of or for the three months ended June 30,								As of or for the six months ended June 30,
(in millions, except ratios)	2023			2022			Change		2023			2022			Change
Credit data and quality statistics
Net charge-offs/(recoveries)	$	56		$	38		47	%	$	106		$	58		83	%
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained(a)	$	924		$	697		33		$	924		$	697		33
Nonaccrual loans held-for-sale and loans at fair value(b)	818			840			(3)		818			840			(3)
Total nonaccrual loans	1,742			1,537			13		1,742			1,537			13
Derivative receivables	286			447			(36)		286			447			(36)
Assets acquired in loan satisfactions	133			84			58		133			84			58
Total nonperforming assets	$	2,161		$	2,068		4		$	2,161		$	2,068		4
Allowance for credit losses:
Allowance for loan losses	$	2,531		$	1,809		40		$	2,531		$	1,809		40
Allowance for lending-related commitments	1,207			1,358			(11)		1,207			1,358			(11)
Total allowance for credit losses	$	3,738		$	3,167		18	%	$	3,738		$	3,167		18	%
Net charge-off/(recovery) rate(c)	0.12		%	0.09		%			0.11		%	0.07		%
Allowance for loan losses to period-end loans retained	1.30			1.06					1.30			1.06
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits(d)	1.86			1.38					1.86			1.38
Allowance for loan losses to nonaccrual loans retained(a)	274			260					274			260
Nonaccrual loans to total period-end loans	0.75		%	0.71		%			0.75		%	0.71		%

(a)Allowance for loan losses of ~~$111~~$145 million and ~~$138~~$130 million were held against these nonaccrual loans at ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.

(b)At ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of ~~$143~~$76 million and ~~$289~~$196 million, respectively. These amounts have been excluded based upon the government guarantee.

(c)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.

(d)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. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 20-21.


Investment banking fees	Investment banking fees													Investment banking fees
		Three months ended September 30,						Nine months ended September 30,							Three months ended June 30,						Six months ended June 30,
(in millions)	(in millions)	2022		2021		Change		2022		2021		Change		(in millions)	2023		2022		Change		2023		2022		Change
Advisory	Advisory	$	848	$	1,228	(31)	%	$	2,313	$	2,824	(18)	%	Advisory	$	540	$	664	(19)	%	$	1,296	$	1,465	(12)	%
Equity underwriting	Equity underwriting	290		1,032		(72)		784		3,151		(75)		Equity underwriting	318		245		30		553		494		12
Debt underwriting(a)	Debt underwriting(a)	624		1,037		(40)		2,365		3,882		(39)		Debt underwriting(a)	699		741		(6)		1,362		1,741		(22)
Total investment banking fees	Total investment banking fees	$	1,762	$	3,297	(47)	%	$	5,462	$	9,857	(45)	%	Total investment banking fees	$	1,557	$	1,650	(6)	%	$	3,211	$	3,700	(13)	%

(a)Represents long-term debt and loan syndications.

League table results – wallet share
Three months ended September 30, Nine months ended September 30, Full-year 2021
2022 2021 2022 2021
Rank Share Rank Share Rank Share Rank Share Rank Share
Based on fees(a)
M&A(b)
Global # 2 9.6 % # 2 9.1 % # 2 8.2 % # 2 8.9 % # 2 9.6 %
U.S. 3 9.1 3 10.0 2 8.8 2 9.7 2 10.7
Equity and equity-related(c)
Global 2 5.8 2 9.7 2 5.8 2 9.3 2 8.8
U.S. 1 15.6 2 12.9 1 14.2 2 11.8 2 11.7
Long-term debt(d)
Global 2 6.4 2 7.5 1 7.4 1 8.7 1 8.4
U.S. 2 12.2 2 10.6 1 12.3 1 12.5 1 12.1
Loan syndications
Global 1 9.8 2 8.7 1 11.1 1 11.2 1 10.9
U.S. 1 12.8 2 10.2 1 11.9 1 13.1 1 12.6
Global investment banking fees(e)
# 1 8.1 % # 2 8.8 % # 1 8.1 % # 1 9.3 % # 1 9.3 %


League table results – wallet share
	Three months ended June 30,								Six months ended June 30,								Full-year 2022
	2023				2022				2023				2022
	Rank		Share		Rank		Share		Rank		Share		Rank		Share		Rank		Share
Based on fees(a)
M&A(b)
Global	#	2	8.7	%	#	2	7.5	%	#	2	9.3	%	#	2	7.4	%	#	2	8.0	%
U.S.	2		11.5		2		8.3		2		11.8		2		8.4		2		9.0
Equity and equity-related(c)
Global	1		7.6		1		6.0		1		7.1		1		5.6		2		5.7
U.S.	1		14.7		1		15.1		1		13.3		1		13.2		1		13.8
Long-term debt(d)
Global	2		6.8		1		7.2		1		6.7		1		7.6		1		6.9
U.S.	2		10.4		1		12.5		2		10.0		1		12.3		1		12.2
Loan syndications
Global	1		12.4		1		12.2		1		12.6		1		11.3		1		11.0
U.S.	1		15.7		1		13.9		1		16.1		1		11.9		1		12.7
Global investment banking fees(e)	#	1	8.3	%	#	2	8.1	%	#	1	8.4	%	#	1	7.9	%	#	1	7.8	%

(a)Source: Dealogic as of ~~October~~July 3, ~~2022.~~2023. Reflects the ranking of revenue wallet and market share.

(b)Global M&A excludes any withdrawn transactions. U.S. M&A revenue wallet represents wallet from client parents based in the U.S.

(c)Global equity and equity-related ranking includes rights offerings and Chinese A-Shares.

(d)Long-term debt rankings include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, asset-backed securities (“ABS”) and mortgage-backed securities (“MBS”); and exclude money market, short-term debt and U.S. municipal securities.

(e)Global investment banking fees exclude money market, short-term debt and shelf securities.

Markets revenue

The following table summarizes selected income statement data for the Markets businesses. Markets includes both Fixed Income Markets and Equity Markets. Markets revenue consists of principal transactions, fees, commissions and other income, as well as net interest income. The Firm assesses its Markets business performance on a total revenue basis, as offsets may occur across revenue line items. For example, securities that generate net interest income may be risk-managed by derivatives that are

reflected at fair value in principal transactions revenue. Refer to Notes 56 and 67 for a description of the composition of these income statement line items. Refer to Markets revenue on page 70 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further information.

For the periods presented below, the ~~predominant~~primary source of principal transactions revenue was the amount recognized upon executing new transactions.


		Three months ended September 30,						Three months ended September 30,							Three months ended June 30,						Three months ended June 30,
		2022						2021							2023						2022
(in millions)	(in millions)	Fixed Income Markets		Equity Markets		Total Markets		Fixed Income Markets		Equity Markets		Total Markets		(in millions)	Fixed Income Markets		Equity Markets		Total Markets		Fixed Income Markets		Equity Markets		Total Markets
Principal transactions	Principal transactions	$	3,113	$	2,070	$	5,183	$	1,624	$	1,864	$	3,488	Principal transactions	$	3,120	$	3,350	$	6,470	$	2,934	$	2,448	$	5,382
Lending- and deposit-related fees	Lending- and deposit-related fees	75		7		82		83		4		87		Lending- and deposit-related fees	76		7		83		76		4		80
Asset management, administration and commissions		141		458		599		127		467		594
Commissions and other fees														Commissions and other fees	151		472		623		128		516		644
All other income	All other income	211		(11)		200		173		(40)		133		All other income	369		(40)		329		166		(31)		135
Noninterest revenue	Noninterest revenue	3,540		2,524		6,064		2,007		2,295		4,302		Noninterest revenue	3,716		3,789		7,505		3,304		2,937		6,241
Net interest income		929		(222)		707		1,665		302		1,967
Net interest income(a)														Net interest income(a)	851		(1,338)		(487)		1,407		142		1,549
Total net revenue	Total net revenue	$	4,469	$	2,302	$	6,771	$	3,672	$	2,597	$	6,269	Total net revenue	$	4,567	$	2,451	$	7,018	$	4,711	$	3,079	$	7,790

		Nine months ended September 30,						Nine months ended September 30,							Six months ended June 30,						Six months ended June 30,
		2022						2021							2023						2022
(in millions)	(in millions)	Fixed Income Markets		Equity Markets		Total Markets		Fixed Income Markets		Equity Markets		Total Markets		(in millions)	Fixed Income Markets		Equity Markets		Total Markets		Fixed Income Markets		Equity Markets		Total Markets
Principal transactions	Principal transactions	$	9,436	$	6,802	$	16,238	$	7,113	$	6,225	$	13,338	Principal transactions	$	7,518	$	6,379	$	13,897	$	6,323	$	4,732	$	11,055
Lending- and deposit-related fees	Lending- and deposit-related fees	229		15		244		234		12		246		Lending- and deposit-related fees	146		14		160		154		8		162
Asset management, administration and commissions		425		1,535		1,960		377		1,496		1,873
Commissions and other fees														Commissions and other fees	295		994		1,289		284		1,063		1,347
All other income	All other income	494		(96)		398		532		(60)		472		All other income	700		(54)		646		283		(71)		212
Noninterest revenue	Noninterest revenue	10,584		8,256		18,840		8,256		7,673		15,929		Noninterest revenue	8,659		7,333		15,992		7,044		5,732		12,776
Net interest income		4,294		180		4,474		5,275		902		6,177
Net interest income(a)														Net interest income(a)	1,607		(2,199)		(592)		3,365		402		3,767
Total net revenue	Total net revenue	$	14,878	$	8,436	$	23,314	$	13,531	$	8,575	$	22,106	Total net revenue	$	10,266	$	5,134	$	15,400	$	10,409	$	6,134	$	16,543

Selected metrics
As of or for the three months
ended September 30, As of or for the nine months
ended September 30,
(in millions, except where otherwise noted) 2022 2021 Change 2022 2021 Change
Assets under custody (“AUC”) by asset class (period-end)
(in billions):
Fixed Income $ 14,025 $ 15,799 (11) % $ 14,025 $ 15,799 (11) %
Equity 9,767 12,276 (20) 9,767 12,276 (20)
Other(a)
3,365 3,887 (13) 3,365 3,887 (13)
Total AUC $ 27,157 $ 31,962 (15) $ 27,157 $ 31,962 (15)
Merchant processing volume (in billions)(b)
$ 545.4 $ 470.9 16 $ 1,575.2 $ 1,371.8 15
Client deposits and other third-party liabilities (average)(c)
$ 669,215 $ 714,376 (6) % $ 700,095 $ 714,039 (2) %
(a)The decline in Markets net interest income was driven by higher funding costs.


Selected metrics
	As of or for the three months ended June 30,						As of or for the six months ended June 30,
(in millions, except where otherwise noted)	2023		2022		Change		2023		2022		Change
Assets under custody (“AUC”) by asset class (period-end) (in billions):
Fixed Income	$	14,708	$	14,720	—	%	$	14,708	$	14,720	—	%
Equity	11,892		10,359		15		11,892		10,359		15
Other(a)	3,824		3,500		9		3,824		3,500		9
Total AUC	$	30,424	$	28,579	6		$	30,424	$	28,579	6
Merchant processing volume (in billions)(b)	$	600.1	$	539.6	11		$	1,158.9	$	1,029.8	13
Client deposits and other third-party liabilities (average)(c)	$	647,479	$	722,388	(10)	%	$	640,642	$	715,791	(10)	%

(a)Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts.

(b)Represents ~~total~~Firmwide merchant processing ~~volume across CIB, CCB and CB.~~volume.

(c)Client deposits and other third-party liabilities pertain to the Payments and Securities Services businesses.

3235


International metrics	International metrics													International metrics
		As of or for the three months ended September 30,						As of or for the nine months ended September 30,							As of or for the three months ended June 30,							As of or for the six months ended June 30,
(in millions, except where otherwise noted)	(in millions, except where otherwise noted)	2022		2021		Change		2022		2021		Change		(in millions, except where otherwise noted)	2023		2022			Change		2023		2022			Change
Total net revenue(a)	Total net revenue(a)													Total net revenue(a)
Europe/Middle East/Africa	Europe/Middle East/Africa	$	3,653	$	3,201	14	%	$	12,625	$	11,045	14	%	Europe/Middle East/Africa	$	3,813	$	4,280		(11)	%	$	8,081	$	8,972		(10)	%
Asia-Pacific	Asia-Pacific	2,060		1,973		4		6,068		6,026		1		Asia-Pacific	1,889		2,023			(7)		4,022		4,008			—
Latin America/Caribbean	Latin America/Caribbean	549		526		4		1,690		1,480		14		Latin America/Caribbean	543		464			17		1,105		1,141			(3)
Total international net revenue	Total international net revenue	6,262		5,700		10		20,383		18,551		10		Total international net revenue	6,245		6,767			(8)		13,208		14,121			(6)
North America	North America	5,613		6,696		(16)		16,968		21,664		(22)		North America	6,274		5,236		(c)	20		12,911		11,458		(c)	13
Total net revenue	Total net revenue	$	11,875	$	12,396	(4)		$	37,351	$	40,215	(7)		Total net revenue	$	12,519	$	12,003		4		$	26,119	$	25,579		2

Loans retained (period-end)(a)	Loans retained (period-end)(a)													Loans retained (period-end)(a)
Europe/Middle East/Africa	Europe/Middle East/Africa	$	38,244	$	32,922	16		$	38,244	$	32,922	16		Europe/Middle East/Africa	$	39,752	$	35,524		12		$	39,752	$	35,524		12
Asia-Pacific	Asia-Pacific	16,670		14,544		15		16,670		14,544		15		Asia-Pacific	14,789		16,427			(10)		14,789		16,427			(10)
Latin America/Caribbean	Latin America/Caribbean	8,035		6,495		24		8,035		6,495		24		Latin America/Caribbean	8,704		7,961			9		8,704		7,961			9
Total international loans	Total international loans	62,949		53,961		17		62,949		53,961		17		Total international loans	63,245		59,912			6		63,245		59,912			6
North America	North America	117,655		97,250		21		117,655		97,250		21		North America	131,205		111,307			18		131,205		111,307			18
Total loans retained	Total loans retained	$	180,604	$	151,211	19		$	180,604	$	151,211	19		Total loans retained	$	194,450	$	171,219		14		$	194,450	$	171,219		14

Client deposits and other third-party liabilities (average)(b)	Client deposits and other third-party liabilities (average)(b)													Client deposits and other third-party liabilities (average)(b)
Europe/Middle East/Africa	Europe/Middle East/Africa	$	240,548	$	245,895	(2)		$	253,300	$	243,279	4		Europe/Middle East/Africa	$	228,490	$	272,919		(16)		$	229,655	$	259,781		(12)
Asia-Pacific	Asia-Pacific	123,024		131,110		(6)		129,059		131,836		(2)		Asia-Pacific	128,253		129,514			(1)		127,146		132,126			(4)
Latin America/Caribbean	Latin America/Caribbean	38,231		47,374		(19)		41,207		46,607		(12)		Latin America/Caribbean	38,911		41,785			(7)		38,825		42,720			(9)
Total international	Total international	$	401,803	$	424,379	(5)		$	423,566	$	421,722	—		Total international	$	395,654	$	444,218		(11)		$	395,626	$	434,627		(9)
North America	North America	267,412		289,997		(8)		276,529		292,317		(5)		North America	251,825		278,170			(9)		245,016		281,164			(13)
Total client deposits and other third-party liabilities	Total client deposits and other third-party liabilities	$	669,215	$	714,376	(6)		$	700,095	$	714,039	(2)		Total client deposits and other third-party liabilities	$	647,479	$	722,388		(10)		$	640,642	$	715,791		(10)

AUC (period-end)(b) (in billions)	AUC (period-end)(b) (in billions)													AUC (period-end)(b) (in billions)
North America	North America	$	18,285	$	20,792	(12)		$	18,285	$	20,792	(12)		North America	$	20,512	$	18,816		9		$	20,512	$	18,816		9
All other regions	All other regions	8,872		11,170		(21)		8,872		11,170		(21)		All other regions	9,912		9,763			2		9,912		9,763			2
Total AUC	Total AUC	$	27,157	$	31,962	(15)	%	$	27,157	$	31,962	(15)	%	Total AUC	$	30,424	$	28,579		6	%	$	30,424	$	28,579		6	%

(a)Total net revenue and loans retained (excluding loans held-for-sale and loans at fair value) are based on the location of the trading desk, booking location, or domicile of the client, as applicable.

(b)Client deposits and other third-party liabilities pertaining to the Payments and Securities Services businesses, and AUC, are based on the domicile of the client.

(c)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.

COMMERCIAL BANKING

Refer to pages 73-75 of JPMorgan Chase’s ~~2021~~2022 Form 10-K and Line of Business Metrics on page ~~191~~207 for a discussion of the business profile of CB.


Selected income statement data	Selected income statement data															Selected income statement data
		Three months ended September 30,							Nine months ended September 30,								Three months ended June 30,							Six months ended June 30,
(in millions)	(in millions)	2022		2021			Change		2022		2021			Change		(in millions)	2023			2022		Change		2023			2022		Change
Revenue	Revenue															Revenue
Lending- and deposit-related fees	Lending- and deposit-related fees	$	288	$	355		(19)	%	$	1,000	$	1,036		(3)	%	Lending- and deposit-related fees	$	249		$	348	(28)	%	$	476		$	712	(33)	%
Card income																Card income	201			170		18		374			337		11
All other income	All other income	548		633			(13)		1,607		1,819			(12)		All other income	385			386		—		766			722		6
Noninterest revenue	Noninterest revenue	836		988			(15)		2,607		2,855			(9)		Noninterest revenue	835			904		(8)		1,616			1,771		(9)
Net interest income	Net interest income	2,212		1,532			44		5,522		4,541			22		Net interest income	3,153		(b)	1,779		77		5,883		(b)	3,310		78
Total net revenue(a)	Total net revenue(a)	3,048		2,520			21		8,129		7,396			10		Total net revenue(a)	3,988			2,683		49		7,499			5,081		48

Provision for credit losses	Provision for credit losses	618		(363)			NM		984		(858)			NM		Provision for credit losses	1,097		(b)	209		425		1,514		(b)	366		314

Noninterest expense	Noninterest expense															Noninterest expense
Compensation expense	Compensation expense	577		511			13		1,689		1,477			14		Compensation expense	656			559		17		1,297			1,112		17
Noncompensation expense	Noncompensation expense	603		521			16		1,776		1,505			18		Noncompensation expense	644			597		8		1,311			1,173		12
Total noninterest expense	Total noninterest expense	1,180		1,032			14		3,465		2,982			16		Total noninterest expense	1,300			1,156		12		2,608			2,285		14

Income before income tax expense	Income before income tax expense	1,250		1,851			(32)		3,680		5,272			(30)		Income before income tax expense	1,591			1,318		21		3,377			2,430		39
Income tax expense	Income tax expense	304		442		(b)	(31)		890		1,260		(b)	(29)		Income tax expense	383			324		18		822			586		40
Net income	Net income	$	946	$	1,409	(b)	(33)	%	$	2,790	$	4,012	(b)	(30)	%	Net income	$	1,208		$	994	22	%	$	2,555		$	1,844	39	%

(a)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 ~~$80~~$89 million and $73 million for ~~both~~ the three months ended ~~September~~June 30, 2023 and 2022, respectively and ~~2021 and $222~~$171 million and ~~$231~~$142 million for the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.

(b)InIncludes the ~~first quarter~~impact of ~~2022,~~ the ~~Firm changed its methodology~~First Republic acquisition. Refer to page 24 for ~~allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.~~additional information.

Selected income statement data (continued)
Three months ended September 30, Nine months ended September 30,
(in millions, except ratios) 2022 2021 Change 2022 2021 Change
Revenue by product
Lending $ 1,176 $ 1,138 3 % $ 3,339 $ 3,478 (4) %
Payments 1,568 947 66 3,754 2,704 39
Investment banking(a)
274 416 (34) 816 1,136 (28)
Other 30 19 58 220 78 182
Total net revenue $ 3,048 $ 2,520 21 $ 8,129 $ 7,396 10
Investment banking revenue, gross(b)
$ 761 $ 1,343 (43) $ 2,278 $ 3,636 (37)
Revenue by client segments
Middle Market Banking $ 1,366 $ 1,017 34 $ 3,515 $ 2,942 19
Corporate Client Banking 1,052 878 20 2,809 2,580 9
Commercial Real Estate Banking 624 602 4 1,795 1,805 (1)
Other 6 23 (74) 10 69 (86)
Total net revenue $ 3,048 $ 2,520 21 % $ 8,129 $ 7,396 10 %
Financial ratios
Return on equity 14 % 22 % 14 % 21 %
Overhead ratio 39 41 43 40


Selected income statement data (continued)
	Three months ended June 30,									Six months ended June 30,
(in millions, except ratios)	2023				2022			Change		2023				2022			Change
Revenue by product
Lending	$	1,480		(c)	$	1,058		40	%	$	2,702		(c)	$	2,163		25	%
Payments	2,248				1,253			79		4,276				2,275			88
Investment banking(a)	213				234			(9)		463				453			2
Other	47				138			(66)		58				190			(69)
Total net revenue	$	3,988			$	2,683		49		$	7,499			$	5,081		48

Investment Banking and Markets revenue, gross(b)	$	767			$	788		(3)		$	1,648			$	1,517		9

Revenue by client segments
Middle Market Banking	$	1,916		(d)	$	1,169		64		$	3,597		(d)	$	2,149		67
Corporate Client Banking	1,229				927			33		2,405				1,757			37
Commercial Real Estate Banking	806			(d)	590			37		1,448			(d)	1,171			24
Other	37				(3)			NM		49				4			NM
Total net revenue	$	3,988			$	2,683		49	%	$	7,499			$	5,081		48	%

Financial ratios
Return on equity	16		%		15		%			17		%		14		%
Overhead ratio	33				43					35				45

(a)Includes CB’s share of revenue from investment banking products sold to CB clients through the ~~CIB.~~CIB which is reported in All other income.

(b)Includes gross revenues earned by the Firm that are subject to a revenue sharing arrangement between CB and the CIB for Investment Banking and Markets' products sold to CB clients. This includes revenues related to fixed income and equity markets products. Refer to Business Segment Results on page 2122 for discussion of revenue sharing.

(c)Includes the impact of the First Republic acquisition. Refer to page 24 for additional information.

(d)For the three and six months ended June 30, 2023, included $48 million and $130 million for Middle Market Banking and Commercial Real Estate Banking, respectively, associated with the First Republic acquisition.

3437

Quarterly results

Net income was ~~$946 million, down 33%, reflecting a net increase in the provision for credit losses compared with a net benefit in the prior year.~~$1.2 billion, up 22%.

Net revenue was ~~$3.0~~$4.0 billion, up ~~21% compared to the prior year.~~49%. Net interest income was ~~$2.2~~$3.2 billion, up ~~44%~~77%, predominantly driven by ~~the impact of~~deposit margin expansion on higher ~~deposit margins~~rates and ~~growth in~~higher average loans, ~~predominantly~~partially offset by ~~the impact of higher funding costs on loans and~~ lower average deposits.

Noninterest revenue was ~~$836~~$835 million, down ~~15%~~8%, driven by lower ~~investment banking revenue and~~ deposit-related fees due to the higher level of credits earned by clients that reduce such fees, partially offset by ~~mark-ups on held-for-sale positions, primarily unfunded commitments in the bridge financing portfolio.~~higher card income.

Noninterest expense was ~~$1.2~~$1.3 billion, up ~~14%~~12%, ~~largely~~predominantly driven by higher ~~structural and volume- and revenue-related~~compensation expense, including ~~compensation.~~headcount growth, as well as higher volume-related expense.

The provision for credit losses was ~~$618~~$1.1 billion, reflecting an addition of $608 million ~~reflecting a net addition~~ to establish the allowance for ~~credit losses, largely driven by growth in~~the First Republic loans and lending-related ~~commitments and the impact of~~commitments. The net addition also reflected $389 million driven by updates to ~~the Firm's macroeconomic scenarios, compared with a~~certain assumptions related to office real estate, as well as net ~~benefit of $363 million~~downgrade activity in ~~the~~Middle Market Banking.

The prior ~~year.~~year provision was $209 million.

Refer to Credit and Investment Risk Management on pages ~~57-76~~62-83 and Allowance for Credit Losses on pages ~~73-75~~80-82 for further discussions of the credit portfolios and the allowance for credit losses.

Year-to-date results

Net income was ~~$2.8~~$2.6 billion, ~~down 30%, reflecting a net increase in the provision for credit losses compared with a net benefit in the prior year.~~up 39%.

Net revenue was ~~$8.1~~$7.5 billion, up ~~10% compared to the prior year.~~48%. Net interest income was ~~$5.5~~$5.9 billion, up ~~22%~~78%, driven by ~~the impact of~~deposit margin expansion on higher ~~deposit margins~~rates and ~~growth in~~higher average loans, ~~largely~~partially offset by ~~the impact of higher funding costs on loans.~~lower average deposits.

Noninterest revenue was ~~$2.6~~$1.6 billion, down 9%, driven by lower ~~investment banking revenue and net markdowns on held-for-sale positions, primarily unfunded commitments, in~~deposit-related fees due to the ~~bridge financing portfolio,~~higher level of credits earned by clients that reduce such fees, partially offset by ~~a gain on an equity method investment received in partial satisfaction of a loan.~~higher card income.

Noninterest expense was ~~$3.5~~$2.6 billion, up ~~16%~~14%, ~~predominantly~~largely driven by higher ~~volume- and revenue-related and structural~~compensation expense, including ~~compensation.~~headcount growth, as well as higher volume-related expense.

The provision for credit losses was ~~$1.0~~$1.5 billion, reflecting ~~a net~~an addition of $608 million to establish the allowance for ~~credit losses, driven by growth in~~the First Republic loans and lending-related commitments, ~~and~~in the ~~impact~~second quarter of 2023. The net addition also reflected $768 million driven by a deterioration in the Firm's weighted-average economic outlook, including updates to ~~the Firm's macroeconomic forecast, compared with a~~certain assumptions related to office real estate, as well as net ~~benefit of $858 million in the~~downgrade activity.

The prior ~~year.~~year provision was $366 million.

3538


Selected metrics	Selected metrics													Selected metrics
		As of or for the three months ended September 30,						As of or for the nine months ended September 30,							As of or for the three months ended June 30,							As of or for the six months ended June 30,
(in millions, except headcount)	(in millions, except headcount)	2022		2021		Change		2022		2021		Change		(in millions, except headcount)	2023			2022		Change		2023			2022		Change
Selected balance sheet data (period-end)	Selected balance sheet data (period-end)													Selected balance sheet data (period-end)
Total assets	Total assets	$	247,485	$	227,670	9	%	$	247,485	$	227,670	9	%	Total assets	$	305,280		$	242,456	26	%	$	305,280		$	242,456	26	%
Loans:	Loans:													Loans:
Loans retained	Loans retained	231,829		201,283		15		231,829		201,283		15		Loans retained	282,124		(b)	223,541		26		282,124		(b)	223,541		26
Loans held-for-sale and loans at fair value	Loans held-for-sale and loans at fair value	137		3,412		(96)		137		3,412		(96)		Loans held-for-sale and loans at fair value	1,540			566		172		1,540			566		172
Total loans	Total loans	$	231,966	$	204,695	13		$	231,966	$	204,695	13		Total loans	$	283,664		$	224,107	27		$	283,664		$	224,107	27
Equity	Equity	25,000		24,000		4		25,000		24,000		4		Equity	30,000			25,000		20		30,000			25,000		20

Period-end loans by client segment	Period-end loans by client segment													Period-end loans by client segment
Middle Market Banking(a)	Middle Market Banking(a)	$	71,707	$	58,918	22		$	71,707	$	58,918	22		Middle Market Banking(a)	$	79,885	(c)	$	68,535	17		$	79,885	(c)	$	68,535	17
Corporate Client Banking	Corporate Client Banking	52,940		45,107		17		52,940		45,107		17		Corporate Client Banking	60,511			49,503		22		60,511			49,503		22
Commercial Real Estate Banking	Commercial Real Estate Banking	107,241		100,458		7		107,241		100,458		7		Commercial Real Estate Banking	142,897		(c)	105,982		35		142,897		(c)	105,982		35
Other	Other	78		212		(63)		78		212		(63)		Other	371			87		326		371			87		326
Total loans(a)	Total loans(a)	$	231,966	$	204,695	13		$	231,966	$	204,695	13		Total loans(a)	$	283,664		$	224,107	27		$	283,664		$	224,107	27

Selected balance sheet data (average)	Selected balance sheet data (average)													Selected balance sheet data (average)
Total assets	Total assets	$	246,318	$	222,760	11		$	239,772	$	224,955	7		Total assets	$	290,875		$	239,381	22		$	273,269		$	236,444	16
Loans:	Loans:													Loans:
Loans retained	Loans retained	227,539		199,789		14		218,255		202,002		8		Loans retained	270,091		(d)	218,478		24		253,542		(d)	213,536		19
Loans held-for-sale and loans at fair value	Loans held-for-sale and loans at fair value	1,589		2,790		(43)		1,578		2,840		(44)		Loans held-for-sale and loans at fair value	726			1,004		(28)		939			1,572		(40)
Total loans	Total loans	$	229,128	$	202,579	13		$	219,833	$	204,842	7		Total loans	$	270,817		$	219,482	23		$	254,481		$	215,108	18

Average loans by client segment	Average loans by client segment													Average loans by client segment
Middle Market Banking	Middle Market Banking	$	70,002	$	59,032	19		$	66,387	$	60,243	10		Middle Market Banking	$	78,037	(e)	$	66,640	17		$	75,547	(e)	$	64,550	17
Corporate Client Banking	Corporate Client Banking	52,432		43,330		21		48,645		44,154		10		Corporate Client Banking	59,159			47,832		24		57,877			46,720		24
Commercial Real Estate Banking	Commercial Real Estate Banking	106,546		100,120		6		104,659		100,213		4		Commercial Real Estate Banking	133,394		(e)	104,890		27		120,838		(e)	103,701		17
Other	Other	148		97		53		142		232		(39)		Other	227			120		89		219			137		60
Total loans	Total loans	$	229,128	$	202,579	13		$	219,833	$	204,842	7		Total loans	$	270,817		$	219,482	23		$	254,481		$	215,108	18

Client deposits and other third-party liabilities		$	281,336	$	300,595	(6)		$	299,430	$	293,981	2
Deposits														Deposits	275,196			300,339		(8)		270,595			308,518		(12)
Equity	Equity	25,000		24,000		4		25,000		24,000		4		Equity	29,505			25,000		18		29,005			25,000		16

Headcount	Headcount	14,299		12,584		14	%	14,299		12,584		14	%	Headcount	15,991			13,811		16	%	15,991			13,811		16	%

(a)At ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, total loans included ~~$205~~$65 million and ~~$2.0 billion~~$335 million of loans, respectively, under the PPP, of which ~~$187~~$60 million and ~~$1.9 billion~~$306 million were in Middle Market Banking, respectively. Refer to Credit Portfolio on ~~page 109~~pages 108-109 of JPMorgan Chase's ~~2021~~2022 Form 10-K for a further discussion of the PPP.

(b)Includes the impact of the First Republic acquisition. Refer to page 24 for additional information.

(c)As of June 30, 2023, included $6.2 billion and $33.3 billion for Middle Market Banking and Commercial Real Estate Banking, respectively, associated with the First Republic acquisition.

(d)For the three and six months ended June 30, 2023, included $28.6 billion and $14.4 billion, respectively, associated with the First Republic acquisition.

(e)For the three months ended June 30, 2023, included $4.4 billion and $24.2 billion for Middle Market Banking and Commercial Real Estate Banking, respectively, and for the six months ended June 30, 2023, included $2.2 billion and $12.2 billion for Middle Market Banking and Commercial Real Estate Banking, respectively, associated with the First Republic acquisition.


Selected metrics (continued)	Selected metrics (continued)																	Selected metrics (continued)
		As of or for the three months ended September 30,								As of or for the nine months ended September 30,									As of or for the three months ended June 30,									As of or for the six months ended June 30,
(in millions, except ratios)	(in millions, except ratios)	2022			2021			Change		2022			2021			Change		(in millions, except ratios)	2023				2022			Change		2023				2022			Change
Credit data and quality statistics	Credit data and quality statistics																	Credit data and quality statistics
Net charge-offs/(recoveries)	Net charge-offs/(recoveries)	$	42		$	31		35	%	$	49		$	63		(22)	%	Net charge-offs/(recoveries)	$	100			$	1		NM		$	137			$	7		NM
Nonperforming assets	Nonperforming assets																	Nonperforming assets
Nonaccrual loans:	Nonaccrual loans:																	Nonaccrual loans:
Nonaccrual loans retained(a)	Nonaccrual loans retained(a)	$	836	(c)	$	735		14	%	$	836		$	735		14	%	Nonaccrual loans retained(a)	$	1,068			$	761		40	%	$	1,068			$	761		40	%
Nonaccrual loans held-for-sale and loans at fair value	Nonaccrual loans held-for-sale and loans at fair value	—			—			—		—			—			—		Nonaccrual loans held-for-sale and loans at fair value	—				—			—		—				—			—
Total nonaccrual loans	Total nonaccrual loans	$	836		$	735		14		$	836		$	735		14		Total nonaccrual loans	$	1,068			$	761		40		$	1,068			$	761		40
Assets acquired in loan satisfactions	Assets acquired in loan satisfactions	7			16			(56)		7			16			(56)		Assets acquired in loan satisfactions	—				8			NM		—				8			NM
Total nonperforming assets	Total nonperforming assets	$	843		$	751		12		$	843		$	751		12		Total nonperforming assets	$	1,068			$	769		39		$	1,068			$	769		39
Allowance for credit losses:	Allowance for credit losses:																	Allowance for credit losses:
Allowance for loan losses	Allowance for loan losses	$	3,050		$	2,354		30		$	3,050		$	2,354		30		Allowance for loan losses	$	4,729			$	2,602		82		$	4,729			$	2,602		82
Allowance for lending-related commitments	Allowance for lending-related commitments	864			711			22		864			711			22		Allowance for lending-related commitments	801				725			10		801				725			10
Total allowance for credit losses	Total allowance for credit losses	$	3,914		$	3,065		28	%	$	3,914		$	3,065		28	%	Total allowance for credit losses	$	5,530		(c)	$	3,327		66	%	$	5,530		(c)	$	3,327		66	%
Net charge-off/(recovery) rate(b)	Net charge-off/(recovery) rate(b)	0.07		%	0.06		%			0.03		%	0.04		%			Net charge-off/(recovery) rate(b)	0.15		%		—		%			0.11		%		0.01		%
Allowance for loan losses to period-end loans retained	Allowance for loan losses to period-end loans retained	1.32			1.17					1.32			1.17					Allowance for loan losses to period-end loans retained	1.68				1.16					1.68				1.16
Allowance for loan losses to nonaccrual loans retained(a)	Allowance for loan losses to nonaccrual loans retained(a)	365			320					365			320					Allowance for loan losses to nonaccrual loans retained(a)	443				342					443				342
Nonaccrual loans to period-end total loans	Nonaccrual loans to period-end total loans	0.36			0.36					0.36			0.36					Nonaccrual loans to period-end total loans	0.38				0.34					0.38				0.34

(a)Allowance for loan losses of ~~$150~~$205 million and ~~$123~~$74 million was held against nonaccrual loans retained at ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.

(b)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.

(c)~~At September~~As of June 30, ~~2022, nonaccrual loans excluded $27~~2023, included a $608 million allowance established as part of ~~PPP loans 90 or more days past due and guaranteed by~~ the ~~SBA.~~First Republic acquisition.

ASSET & WEALTH MANAGEMENT

Refer to pages 76-78 of JPMorgan Chase’s ~~2021~~2022 Form 10-K and Line of Business Metrics on pages ~~191-192~~207–208 for a discussion of the business profile of AWM.


Selected income statement data	Selected income statement data																			Selected income statement data
(in millions, except ratios)	(in millions, except ratios)	Three months ended September 30,									Nine months ended September 30,									(in millions, except ratios)	Three months ended June 30,									Six months ended June 30,
		2022			2021				Change		2022			2021				Change			2023				2022			Change		2023				2022			Change
Revenue	Revenue																			Revenue
Asset management, administration and commissions		$	3,044		$	3,096			(2)	%	$	9,196		$	9,003			2	%
Asset management fees																				Asset management fees	$	2,930			$	2,797		5	%	$	5,691			$	5,696		—	%
Commissions and other fees																				Commissions and other fees	196				240			(18)		377				456			(17)
All other income	All other income	82			216				(62)		253			620				(59)		All other income	232			(a)	47			394		623			(a)	171			264
Noninterest revenue	Noninterest revenue	3,126			3,312				(6)		9,449			9,623				(2)		Noninterest revenue	3,358				3,084			9		6,691				6,323			6
Net interest income	Net interest income	1,413			988				43		3,711			2,861				30		Net interest income	1,585			(a)	1,222			30		3,036			(a)	2,298			32
Total net revenue	Total net revenue	4,539			4,300				6		13,160			12,484				5		Total net revenue	4,943				4,306			15		9,727				8,621			13

Provision for credit losses	Provision for credit losses	(102)			(60)				(70)		96			(191)				NM		Provision for credit losses	145			(a)	44			230		173			(a)	198			(13)

Noninterest expense	Noninterest expense																			Noninterest expense
Compensation expense	Compensation expense	1,649			1,387				19		4,687			4,132				13		Compensation expense	1,746				1,508			16		3,481				3,038			15
Noncompensation expense	Noncompensation expense	1,379			1,375				—		4,120			3,790				9		Noncompensation expense	1,417				1,411			—		2,773				2,741			1
Total noninterest expense	Total noninterest expense	3,028			2,762				10		8,807			7,922				11		Total noninterest expense	3,163				2,919			8		6,254				5,779			8

Income before income tax expense	Income before income tax expense	1,613			1,598				1		4,257			4,753				(10)		Income before income tax expense	1,635				1,343			22		3,300				2,644			25
Income tax expense	Income tax expense	394			402			(a)	(2)		1,026			1,141			(a)	(10)		Income tax expense	409				339			21		707				632			12
Net income	Net income	$	1,219		$	1,196		(a)	2		$	3,231		$	3,612		(a)	(11)		Net income	$	1,226			$	1,004		22		$	2,593			$	2,012		29

Revenue by line of business	Revenue by line of business																			Revenue by line of business
Asset Management	Asset Management	$	2,209		$	2,337			(5)		$	6,660		$	6,758			(1)		Asset Management	$	2,128			$	2,137		—		$	4,562			$	4,451		2
Global Private Bank	Global Private Bank	2,330			1,963				19		6,500			5,726				14		Global Private Bank	2,815			(a)	2,169			30		5,165			(a)	4,170			24
Total net revenue	Total net revenue	$	4,539		$	4,300			6	%	$	13,160		$	12,484			5	%	Total net revenue	$	4,943			$	4,306		15	%	$	9,727			$	8,621		13	%

Financial ratios	Financial ratios																			Financial ratios
Return on equity	Return on equity	28		%	33		%				25		%	34		%				Return on equity	29		%		23		%			31		%		23		%
Overhead ratio	Overhead ratio	67			64						67			63						Overhead ratio	64				68					64				67
Pre-tax margin ratio:	Pre-tax margin ratio:																			Pre-tax margin ratio:
Asset Management	Asset Management	31			36						31			36						Asset Management	27				29					32				31
Global Private Bank	Global Private Bank	40			38						34			40						Global Private Bank	37				33					35				30
Asset & Wealth Management	Asset & Wealth Management	36			37						32			38						Asset & Wealth Management	33				31					34				31

(a)InIncludes the ~~first quarter~~impact of ~~2022,~~ the ~~Firm changed its methodology~~First Republic acquisition. Refer to page 24 for ~~allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.~~additional information.

Quarterly results

Net income was $1.2 billion, up 2%22%.

Net revenue was ~~$4.5~~$4.9 billion, up 6%15%. Net interest income was ~~$1.4~~$1.6 billion, up ~~43%~~30%. Noninterest revenue was ~~$3.1~~$3.4 billion, ~~down 6%~~up 9%.

Revenue from Asset Management was ~~$2.2~~$2.1 billion, ~~down 5%, largely~~flat compared to the prior year, driven by:

•lower ~~asset management fees reflecting a decline in market levels and the impact of net outflows, largely offset by the removal of most money market fund fee waivers, and~~

•~~net investment valuation losses compared~~NII due to ~~net gains in the prior year,~~higher funding costs,

largely offset by

•higher ~~performance fees.~~management fees on strong net inflows.

Revenue from Global Private Bank was ~~$2.3~~$2.8 billion, up ~~19%~~30%, predominantly driven by:

•~~improved margins and growth in deposits and to a lesser extent in loans,~~

~~partially offset by~~

•deposit margin expansion reflecting higher rates on lower ~~management fees reflecting a decline in market levels, largely offset by net inflows,~~average deposit balances, and

•~~lower brokerage~~higher lending-related fees ~~on reduced volume.~~and average loans driven by the impact of the First Republic acquisition.

Noninterest expense was ~~$3.0~~$3.2 billion, up ~~10%~~8%, driven by higher ~~structural expense~~compensation, including growth in private banking advisor teams, higher revenue-related compensation and ~~investments in~~

the ~~business, largely compensation.~~impact from the acquisitions of Global Shares and J.P. Morgan Asset Management China.

The provision for credit losses was ~~a net benefit of $102~~$145 million, ~~predominantly~~ driven by a ~~net reduction in~~$146 million addition to the allowance for credit ~~losses.~~losses to establish the allowance for the First Republic loans and lending-related commitments.

Year-to-date results

Net income was ~~$3.2~~$2.6 billion, ~~down 11%~~up 29%.

Net revenue was ~~$13.2~~$9.7 billion, up 5%13%. Net interest income was ~~$3.7~~$3.0 billion, up ~~30%~~32%. Noninterest revenue was ~~$9.4~~$6.7 billion, ~~down~~up 6%.

Revenue from Asset Management was $4.6 billion, up 2%., driven by:

•a gain of $339 million on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% interest in the entity,

3841

~~Revenue from Asset Management was $6.7 billion, down 1%,~~largely offset by

•lower NII driven by higher funding costs,

•lower performance fees, and

•lower asset management fees reflecting a decline in market levels predominantly ~~driven by:~~

~~net investment valuation losses compared to net gains~~offset by the removal of most money market fund fee waivers in the prior year ~~largely offset by higher performance fees.~~and the impact of net inflows.

Revenue from Global Private Bank was ~~$6.5~~$5.2 billion, up ~~14%~~24%, driven by:

•~~growth in deposits~~deposit margin expansion reflecting higher rates on lower average deposit balances, and

•higher lending-related fees and average loans ~~as well as improved margins~~driven by the impact of the First Republic acquisition,

partially offset by

•~~lower brokerage fees on reduced volume.~~an investment valuation loss in the first quarter of 2023.

Noninterest expense was ~~$8.8~~$6.3 billion, up ~~11%~~8%, predominantly driven by higher ~~structural expense~~compensation, including growth in private banking advisor teams, higher revenue-related compensation and ~~investments in~~ the ~~business, largely compensation.~~impact from the acquisitions of Global Shares and J.P. Morgan Asset Management China.

The provision for credit losses was ~~$96~~$173 million, predominantly driven by a ~~net~~$146 million addition to the allowance for credit losses ~~compared with a net benefit of $191 million~~to establish the allowance for the First Republic loans and lending-related commitments, in the second quarter of 2023.

The prior ~~year.~~year provision was $198 million.


Selected metrics	Selected metrics																	Selected metrics
		As of or for the three months ended September 30,								As of or for the nine months ended September 30,									As of or for the three months ended June 30,									As of or for the six months ended June 30,
(in millions, except ranking data, headcount and ratios)	(in millions, except ranking data, headcount and ratios)	2022			2021			Change		2022			2021			Change		(in millions, except ranking data, headcount and ratios)	2023				2022			Change		2023				2022			Change
% of JPM mutual fund assets rated as 4- or 5-star(a)	% of JPM mutual fund assets rated as 4- or 5-star(a)	75		%	70		%			75		%	70		%			% of JPM mutual fund assets rated as 4- or 5-star(a)	69		%		72		%			69		%		72		%
% of JPM mutual fund assets ranked in 1st or 2nd quartile:(b)	% of JPM mutual fund assets ranked in 1st or 2nd quartile:(b)																	% of JPM mutual fund assets ranked in 1st or 2nd quartile:(b)
1 year	1 year	70			60					70			60					1 year	59				64					59				64
3 years	3 years	76			78					76			78					3 years	66				73					66				73
5 years	5 years	84			78					84			78					5 years	80				79					80				79

Selected balance sheet data (period-end)(c)	Selected balance sheet data (period-end)(c)																	Selected balance sheet data (period-end)(c)
Total assets	Total assets	$	232,303		$	221,702		5	%	$	232,303		$	221,702		5	%	Total assets	$	247,118			$	235,553		5	%	$	247,118			$	235,553		5	%
Loans	Loans	214,989			202,871			6		214,989			202,871			6		Loans	222,493			(d)	218,841			2		222,493			(d)	218,841			2
Deposits	Deposits	242,315			242,309			—		242,315			242,309			—		Deposits	199,763				257,437			(22)		199,763				257,437			(22)
Equity	Equity	17,000			14,000			21		17,000			14,000			21		Equity	17,000				17,000			—		17,000				17,000			—

Selected balance sheet data (average)(c)	Selected balance sheet data (average)(c)																	Selected balance sheet data (average)(c)
Total assets	Total assets	$	232,748		$	219,022		6		$	233,209		$	213,679		9		Total assets	$	238,987			$	234,565		2		$	233,933			$	233,444		—
Loans	Loans	216,714			200,635			8		216,065			194,888			11		Loans	219,469			(e)	216,846			1		215,491			(e)	215,735			—
Deposits	Deposits	253,026			229,710			10		269,754			218,742			23		Deposits	211,872				268,861			(21)		218,078				278,256			(22)
Equity	Equity	17,000			14,000			21		17,000			14,000			21		Equity	16,670				17,000			(2)		16,337				17,000			(4)

Headcount	Headcount	25,769			22,051			17		25,769			22,051			17		Headcount	26,931				23,981			12		26,931				23,981			12

Number of Global Private Bank client advisors	Number of Global Private Bank client advisors	3,110			2,646			18		3,110			2,646			18		Number of Global Private Bank client advisors	3,214				2,866			12		3,214				2,866			12

Credit data and quality statistics(c)	Credit data and quality statistics(c)																	Credit data and quality statistics(c)
Net charge-offs/(recoveries)	Net charge-offs/(recoveries)	$	(13)		$	(1)		NM		$	(5)		$	22		NM		Net charge-offs/(recoveries)	$	2			$	9		(78)		$	—			$	8		NM
Nonaccrual loans	Nonaccrual loans	467			686			(32)		467			686			(32)		Nonaccrual loans	615				620			(1)		615				620			(1)
Allowance for credit losses:	Allowance for credit losses:																	Allowance for credit losses:
Allowance for loan losses	Allowance for loan losses	$	461		$	402		15		$	461		$	402		15		Allowance for loan losses	$	649			$	547		19		$	649			$	547		19
Allowance for lending-related commitments	Allowance for lending-related commitments	21			20			5		21			20			5		Allowance for lending-related commitments	39				22			77		39				22			77
Total allowance for credit losses	Total allowance for credit losses	$	482		$	422		14%		$	482		$	422		14	%	Total allowance for credit losses	$	688		(f)	$	569		21	%	$	688		(f)	$	569		21	%
Net charge-off/(recovery) rate	Net charge-off/(recovery) rate	(0.02)		%	—		%			—		%	0.02		%			Net charge-off/(recovery) rate	—		%		0.02		%			—		%		0.01		%
Allowance for loan losses to period-end loans	Allowance for loan losses to period-end loans	0.21			0.20					0.21			0.20					Allowance for loan losses to period-end loans	0.29				0.25					0.29				0.25
Allowance for loan losses to nonaccrual loans	Allowance for loan losses to nonaccrual loans	99			59					99			59					Allowance for loan losses to nonaccrual loans	106				88					106				88
Nonaccrual loans to period-end loans	Nonaccrual loans to period-end loans	0.22			0.34					0.22			0.34					Nonaccrual loans to period-end loans	0.28				0.28					0.28				0.28

(a)Represents the Morningstar Rating for all domiciled funds except for Japan domiciled funds which use Nomura. Includes only Asset Management retail open-ended mutual funds that have a rating. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds.

(b)Quartile ranking sourced from Morningstar, Lipper and Nomura based on country of domicile. Includes only Asset Management retail open-ended mutual funds that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds.

(c)Loans, deposits and related credit data and quality statistics relate to the Global Private Bank business.

(d)Includes the impact of the First Republic acquisition. Refer to page 24 for additional information.

(e)For the three and six months ended June 30, 2023, included $9.7 billion and $4.9 billion, respectively, associated with the First Republic acquisition.

(f)As of June 30, 2023, included a $146 million allowance established as part of the First Republic acquisition.

3942

Client assets

~~Client assets of $3.8 trillion and assets~~Assets under management of ~~$2.6~~$3.2 trillion were ~~down 7% and 13%~~up 16%, ~~respectively,~~while client assets of $4.6 trillion were up 20%, driven by ~~lower~~continued net inflows, higher market levels and ~~net outflows from liquidity products, partially offset by net inflows to long term products.~~the impact of the acquisition of Global Shares.


Client assets	Client assets							Client assets
		As of September 30,							As of June 30,
(in billions)	(in billions)	2022		2021		Change		(in billions)	2023			2022		Change
Assets by asset class	Assets by asset class							Assets by asset class
Liquidity	Liquidity	$	615	$	685	(10)	%	Liquidity	$	826		$	654	26	%
Fixed income	Fixed income	612		695		(12)		Fixed income	718			624		15
Equity	Equity	609		725		(16)		Equity	792			641		24
Multi-asset	Multi-asset	577		702		(18)		Multi-asset	647			615		5
Alternatives	Alternatives	203		189		7		Alternatives	205			209		(2)
Total assets under management	Total assets under management	2,616		2,996		(13)		Total assets under management	3,188			2,743		16
Custody/brokerage/administration/deposits	Custody/brokerage/administration/deposits	1,207		1,100		10		Custody/brokerage/administration/deposits	1,370		(b)	1,055		30
Total client assets(a)	Total client assets(a)	$	3,823	$	4,096	(7)		Total client assets(a)	$	4,558		$	3,798	20

Assets by client segment	Assets by client segment							Assets by client segment
Private Banking	Private Banking	$	698	$	773	(10)		Private Banking	$	881		$	712	24
Global Institutional	Global Institutional	1,209		1,375		(12)		Global Institutional	1,423			1,294		10
Global Funds	Global Funds	709		848		(16)		Global Funds	884			737		20
Total assets under management	Total assets under management	$	2,616	$	2,996	(13)		Total assets under management	$	3,188		$	2,743	16

Private Banking	Private Banking	$	1,848	$	1,817	2		Private Banking	$	2,170	(b)	$	1,715	27
Global Institutional	Global Institutional	1,261		1,425		(12)		Global Institutional	1,497			1,339		12
Global Funds	Global Funds	714		854		(16)		Global Funds	891			744		20
Total client assets(a)	Total client assets(a)	$	3,823	$	4,096	(7)	%	Total client assets(a)	$	4,558		$	3,798	20	%

(a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager.

Client assets (continued)

Three months ended September 30, Nine months ended September 30,
(in billions) 2022 2021 2022 2021
Assets under management rollforward
Beginning balance $ 2,743 $ 2,987 $ 3,113 $ 2,716
Net asset flows:
Liquidity (36) (11) (88) 48
Fixed income 9 11 5 36
Equity 6 16 26 67
Multi-asset (5) 3 (2) 11
Alternatives 2 3 8 16
Market/performance/other impacts (103) (13) (446) 102
Ending balance, September 30 $ 2,616 $ 2,996 $ 2,616 $ 2,996
Client assets rollforward
Beginning balance $ 3,798 $ 4,044 $ 4,295 $ 3,652
Net asset flows (15) 75 (21) 280
Market/performance/other impacts 40 (23) (451) 164
Ending balance, September 30 $ 3,823 $ 4,096 $ 3,823 $ 4,096
(b)Includes the impact of the acquisition of Global Shares.


Client assets (continued)
	Three months ended June 30,				Six months ended June 30,
(in billions)	2023		2022		2023		2022
Assets under management rollforward
Beginning balance	$	3,006	$	2,960	$	2,766	$	3,113
Net asset flows:
Liquidity	60		—		153		(52)
Fixed income	37		(1)		63		(4)
Equity	20		9		42		20
Multi-asset	3		(3)		1		3
Alternatives	1		1		2		6
Market/performance/other impacts	61		(223)		161		(343)
Ending balance, June 30	$	3,188	$	2,743	$	3,188	$	2,743

Client assets rollforward
Beginning balance	$	4,347	$	4,116	$	4,048	$	4,295
Net asset flows	112		(1)		264		(6)
Market/performance/other impacts	99		(317)		246		(491)
Ending balance, June 30	$	4,558	$	3,798	$	4,558	$	3,798

4043


International	International													International
		Three months ended September 30,						Nine months ended September 30,							Three months ended June 30,						Six months ended June 30,
(in millions)	(in millions)	2022		2021		Change		2022		2021		Change		(in millions)	2023		2022		Change		2023		2022		Change
Total net revenue (a)	Total net revenue (a)													Total net revenue(a)
Europe/Middle East/Africa	Europe/Middle East/Africa	$	868	$	905	(4)	%	$	2,357	$	2,627	(10)	%	Europe/Middle East/Africa	$	853	$	719	19	%	$	1,700	$	1,489	14	%
Asia-Pacific	Asia-Pacific	458		503		(9)		1,370		1,513		(9)		Asia-Pacific	497		452		10		974		912		7
Latin America/Caribbean	Latin America/Caribbean	237		229		3		736		659		12		Latin America/Caribbean	247		248		—		487		499		(2)
Total international net revenue	Total international net revenue	1,563		1,637		(5)		4,463		4,799		(7)		Total international net revenue	1,597		1,419		13		3,161		2,900		9
North America	North America	2,976		2,663		12		8,697		7,685		13		North America	3,346		2,887		16		6,566		5,721		15
Total net revenue(a)	Total net revenue(a)	$	4,539	$	4,300	6	%	$	13,160	$	12,484	5	%	Total net revenue(a)	$	4,943	$	4,306	15	%	$	9,727	$	8,621	13	%

(a)Regional revenue is based on the domicile of the client.


		As of September 30,						As of September 30,							As of June 30,						As of June 30,
(in billions)	(in billions)	2022		2021		Change		2022		2021		Change		(in billions)	2023		2022		Change		2023		2022		Change
Assets under management	Assets under management													Assets under management
Europe/Middle East/Africa	Europe/Middle East/Africa	$	455	$	548	(17)	%	$	455	$	548	(17)	%	Europe/Middle East/Africa	$	527	$	481	10	%	$	527	$	481	10	%
Asia-Pacific	Asia-Pacific	205		246		(17)		205		246		(17)		Asia-Pacific	252		214		18		252		214		18
Latin America/Caribbean	Latin America/Caribbean	67		76		(12)		67		76		(12)		Latin America/Caribbean	79		68		16		79		68		16
Total international assets under management	Total international assets under management	727		870		(16)		727		870		(16)		Total international assets under management	858		763		12		858		763		12
North America	North America	1,889		2,126		(11)		1,889		2,126		(11)		North America	2,330		1,980		18		2,330		1,980		18
Total assets under management	Total assets under management	$	2,616	$	2,996	(13)		$	2,616	$	2,996	(13)		Total assets under management	$	3,188	$	2,743	16		$	3,188	$	2,743	16

Client assets	Client assets													Client assets
Europe/Middle East/Africa	Europe/Middle East/Africa	$	566	$	669	(15)		$	566	$	669	(15)		Europe/Middle East/Africa	$	663	$	595	11		$	663	$	595	11
Asia-Pacific	Asia-Pacific	306		371		(18)		306		371		(18)		Asia-Pacific	378		324		17		378		324		17
Latin America/Caribbean	Latin America/Caribbean	181		181		—		181		181		—		Latin America/Caribbean	217		184		18		217		184		18
Total international client assets	Total international client assets	1,053		1,221		(14)		1,053		1,221		(14)		Total international client assets	1,258		1,103		14		1,258		1,103		14
North America	North America	2,770		2,875		(4)		2,770		2,875		(4)		North America	3,300		2,695		22		3,300		2,695		22
Total client assets	Total client assets	$	3,823	$	4,096	(7)	%	$	3,823	$	4,096	(7)	%	Total client assets	$	4,558	$	3,798	20	%	$	4,558	$	3,798	20	%

4144

CORPORATE

Refer to pages 79-80 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a discussion of Corporate.


Selected income statement and balance sheet data	Selected income statement and balance sheet data																	Selected income statement and balance sheet data
		As of or for the three months ended September 30,								As of or for the nine months ended September 30,									As of or for the three months ended June 30,							As of or for the six months ended June 30,
(in millions, except headcount)	(in millions, except headcount)	2022			2021			Change		2022			2021			Change		(in millions, except headcount)	2023			2022		Change		2023			2022		Change
Revenue	Revenue																	Revenue
Principal transactions	Principal transactions	$	(76)		$	(103)		26	%	$	(220)		$	161		NM		Principal transactions	$	113		$	17	NM		$	195		$	(144)	NM
Investment securities losses	Investment securities losses	(959)			(256)			(275)	%	(1,506)			(397)			(279)	%	Investment securities losses	(900)			(153)		(488)	%	(1,768)			(547)		(223)	%
All other income	All other income	(59)			117			NM		43			168			(74)		All other income	2,767		(c)	(108)		NM		2,798		(c)	102		NM
Noninterest revenue	Noninterest revenue	(1,094)			(242)			(352)		(1,683)			(68)			NM		Noninterest revenue	1,980			(244)		NM		1,225			(589)		NM
Net interest income	Net interest income	792			(1,054)			NM		580			(2,870)			NM		Net interest income	1,738		(c)	324		436		3,478		(c)	(212)		NM
Total net revenue(a)	Total net revenue(a)	(302)			(1,296)			77		(1,103)			(2,938)			62		Total net revenue(a)	3,718			80		NM		4,703			(801)		NM
Provision for credit losses	Provision for credit losses	(21)			(7)			(200)		36			58			(38)		Provision for credit losses	(243)			28		NM		127			57		123
Noninterest expense	Noninterest expense	305			160			91		695			1,551			(55)		Noninterest expense	1,152		(c)	206		459		1,312		(c)	390		236
Income/(loss) before income tax expense/(benefit)	Income/(loss) before income tax expense/(benefit)	(586)			(1,449)			60		(1,834)			(4,547)			60		Income/(loss) before income tax expense/(benefit)	2,809			(154)		NM		3,264			(1,248)		NM
Income tax expense/(benefit)	Income tax expense/(benefit)	(292)			(533)		(c)	45		(510)			(1,484)		(c)	66		Income tax expense/(benefit)	169		(d)	20		NM		380		(d)	(218)		NM
Net income/(loss)	Net income/(loss)	$	(294)		$	(916)	(c)	68		$	(1,324)		$	(3,063)	(c)	57		Net income/(loss)	$	2,640		$	(174)	NM		$	2,884		$	(1,030)	NM
Total net revenue	Total net revenue																	Total net revenue
Treasury and CIO	Treasury and CIO	$	(180)		$	(1,198)		85		$	(1,042)		$	(2,984)		65		Treasury and CIO	$	1,261		$	82	NM		$	2,367		$	(862)	NM
Other Corporate	Other Corporate	(122)			(98)			(24)		(61)			46			NM		Other Corporate	2,457		(c)	(2)		NM		2,336		(c)	61		NM
Total net revenue	Total net revenue	$	(302)		$	(1,296)		77		$	(1,103)		$	(2,938)		62		Total net revenue	$	3,718		$	80	NM		$	4,703		$	(801)	NM
Net income/(loss)	Net income/(loss)																	Net income/(loss)
Treasury and CIO	Treasury and CIO	$	(68)		$	(998)		93		$	(728)		$	(2,629)		72		Treasury and CIO	$	1,057		$	88	NM		$	1,681		$	(660)	NM
Other Corporate	Other Corporate	(226)			82		(c)	NM		(596)			(434)		(c)	(37)		Other Corporate	1,583		(c)	(262)		NM		1,203		(c)	(370)		NM
Total net income/(loss)	Total net income/(loss)	$	(294)		$	(916)	(c)	68		$	(1,324)		$	(3,063)	(c)	57		Total net income/(loss)	$	2,640		$	(174)	NM		$	2,884		$	(1,030)	NM
Total assets (period-end)	Total assets (period-end)	$	1,408,726		$	1,459,283		(3)		$	1,408,726		$	1,459,283		(3)		Total assets (period-end)	$	1,263,595		$	1,459,528	(13)		$	1,263,595		$	1,459,528	(13)
Loans (period-end)	Loans (period-end)	2,206			1,697			30		2,206			1,697			30		Loans (period-end)	2,172			2,187		(1)		2,172			2,187		(1)
Deposits (period-end)(b)	Deposits (period-end)(b)	14,449		(b)	546			NM		14,449		(b)	546			NM		Deposits (period-end)(b)	21,083			13,191		60		21,083			13,191		60
Headcount	Headcount	42,806			38,302			12	%	42,806			38,302			12	%	Headcount	45,235			40,348		12	%	45,235			40,348		12	%

(a)Included tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of ~~$59~~$45 million and ~~$64~~$60 million for the three months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, and ~~$177~~$101 million and ~~$197~~$118 million for the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.

(b)Predominantly relates to the Firm's international consumer ~~growth~~ initiatives.

(c)InIncludes the ~~first quarter~~impacts of ~~2022,~~ the ~~Firm changed its methodology~~First Republic acquisition. Refer to Note 28 for ~~allocating income~~additional information.

(d)Income taxes ~~to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform~~associated with the ~~current presentation.~~First Republic acquisition are reflected in the estimated bargain purchase gain.

Quarterly results

Net ~~loss~~income was ~~$294 million,~~$2.6 billion, compared with a net loss of ~~$916~~$174 million in the prior year.

Net revenue was ~~a loss of $302 million,~~$3.7 billion, compared with ~~a loss of $1.3 billion~~$80 million in the prior year, driven by higher net interest income due to higher rates, partially offset by lower ~~noninterest revenue.~~Firmwide average deposit balances available for deployment in Treasury and CIO .

Noninterest revenue was ~~a loss of $1.1~~$2.0 billion, compared with a loss of ~~$242~~$244 million in the prior year, ~~predominantly~~ driven by:

•a $2.7 billion estimated bargain purchase gain associated with the First Republic acquisition

•higher revenue related to cash deployment transactions in Treasury and CIO, and

•higher losses in the prior year on certain revenues associated with foreign exchange rate movements,

partially offset by

•higher net investment securities losses on sales of U.S. Treasuries and U.S. GSE and government agency MBS, ~~and U.S. Treasuries,~~ associated withrepositioning the investment securities ~~portfolios,~~portfolio, and

•~~the impact of movements in foreign exchange rates on certain revenues, primarily as a result of the U.S. dollar strengthening,~~

~~partially offset by~~

•~~the impact of movements in foreign exchange rates related to net investment hedges in Treasury and CIO, primarily as a result of the strengthening of the U.S. dollar, and~~

•~~lower~~ net losses on certain legacy private equity ~~investments.~~investments in Corporate, compared with net gains in the prior year

Noninterest expense of ~~$305 million~~$1.2 billion was up ~~$145~~$946 million ~~predominantly~~ driven ~~by:~~

•by ~~higher investments, including the costs~~expense of $562 million associated with the ~~Firm's international consumer growth initiatives,~~First Republic acquisition, higher legal expense, and

•~~higher structural expense, including higher compensation predominantly offset by~~ a greater benefit in the ~~impact of movements in foreign exchange rates~~prior year on certain expenses ~~primarily as a result of the U.S. dollar strengthening.~~associated with foreign exchange rate movements.

The net impact of movements in foreign exchange rates associated with the foreign exchange risk that iswas transferred

to Treasury and CIO on certain revenues and ~~expenses was~~

expense were not material to net income. Refer to Foreign Exchange Risk on page 22 for additional information.

The provision for credit losses was a net benefit of $243 million, reflecting a reduction in the allowance for credit losses associated with the deposit placed with First Republic Bank in the first quarter of 2023.

Refer to Note 10 for additional information on the investment securities portfolio, and Note 13 for additional information on the allowance for credit losses.

The current period tax expense benefited from the income tax ~~benefit was predominantly driven~~expense associated with the First Republic acquisition reflected in the estimated bargain purchase gain, partially offset by ~~benefits related to tax audit settlements and the change~~changes in the level and mix of income and expenses subject to U.S. federal and state and local taxes that also ~~impacted~~impact the ~~Firm's~~Firm’s tax reserves.

Year-to-date results

Net ~~loss~~income was ~~$1.3~~$2.9 billion, compared with a net loss of ~~$3.1~~$1.0 billion in the prior year.

Net revenue was ~~a loss of $1.1~~$4.7 billion, compared with a loss of ~~$2.9 billion~~$801 million in the prior year, driven by higher net interest income due to higher rates, partially offset by lower ~~noninterest revenue.~~Firmwide average deposit balances available for deployment in Treasury and CIO.

Noninterest revenue was ~~a loss of $1.7~~$1.2 billion, compared with a loss of ~~$68~~$589 million, ~~in the prior year,~~ driven by:

•~~higher net investment securities losses~~ ~~on sales of U.S. GSE and government agency MBS and U.S. Treasuries,~~a $2.7 billion estimated bargain purchase gain associated with~~repositioning~~ the ~~investment securities~~ ~~portfolios,~~First Republic acquisition,

•~~the impact of movements in foreign exchange on certain revenues, primarily as result of the U.S. dollar strengthening,~~

•~~net losses on certain legacy private equity investments compared with net gains in prior year,~~

•~~net losses, including hedging costs on an equity method investment related to the Firm's international consumer growth initiatives,~~ ~~and~~

•~~net losses in Treasury and CIO~~higher revenue related to cash deployment transactions ~~which were more than offset by~~in Treasury and CIO, and

•higher losses in the ~~related net interest income earned~~prior year on ~~these transactions,~~certain revenues associated with foreign exchange rate movements,

partially offset by

•higher net investment securities losses related to the sales of U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio,

•the absence of proceeds in the prior year from an insurance settlement, ~~in the first quarter of 2022,~~ and

•~~higher~~lower net gains related to certain other Corporate investments.

Noninterest expense of ~~$695~~$1.3 billion was up $922 million ~~was down $856~~driven by expense of $562 million ~~predominantly driven by:~~

•associated with the First Republic acquisitionl~~ower structural~~ , higher legal expense, ~~reflecting~~and a greater benefit in the ~~impact of movements in foreign exchange~~prior year on certain expenses ~~primarily as a result of the U.S. dollar strengthening, and lower technology expense, partially offset by higher compensation related expense,~~

~~largely offset by~~

•~~higher investments, including the costs~~ associated with ~~the Firm's international consumer growth initiatives.~~foreign exchange rate movements.

~~The prior year included a contribution to the Firm's Foundation.~~

The net impact of movements in foreign exchange rates associated with the foreign exchange risk that iswas transferred to Treasury and CIO on certain revenues and ~~expenses was~~expense were not material to net income. Refer to Foreign Exchange Risk on page 22 for additional information.

The current period tax expense benefited from the income tax ~~benefit was predominantly driven~~expense associated with the First Republic acquisition reflected in the estimated bargain purchase gain, largely offset by ~~benefits related to tax audit settlements and the change~~changes in the level and mix of income and expenses subject to U.S. federal and state and l~~ocal~~local taxes that also ~~impacted~~impact the ~~Firm's~~Firm’s tax reserves.

Other Corporate also reflects the Firm's international consumer ~~growth~~ initiatives, which includes Chase U.K., the Firm's digital retail bank in the U.K.; Nutmeg, a digital wealth manager in the U.K.; and a 40% ownership stake in C6 Bank, a digital bank in ~~Brazil, which closed in the first quarter of 2022.~~Brazil.

Treasury and CIO overview

At ~~September~~June 30, ~~2022,~~2023, the average credit rating of the Treasury and CIO investment securities comprising the portfolio in the table below was AA+ (based upon external ratings where available and, where not available, based primarily upon internal risk ratings). Refer to Note 910 for further information on the Firm’s investment securities portfolio and internal risk ratings.

Refer to Liquidity Risk Management on pages ~~51-56~~54-61 for further information on liquidity and funding risk. Refer to Market Risk Management on pages ~~77-81~~84-89 for information on interest rate and foreign exchange risks.

Selected income statement and balance sheet data
As of or for the three months
ended September 30, As of or for the nine months
ended September 30,
(in millions) 2022 2021 Change 2022 2021 Change
Investment securities losses $ (959) $ (256) (275) % $ (1,506) $ (397) (279) %
Available-for-sale securities (average) $ 209,008 $ 223,747 (7) $ 254,798 $ 312,298 (18)
Held-to-maturity securities (average)(a)
436,302 339,544 28 406,915 263,214 55
Investment securities portfolio (average) $ 645,310 $ 563,291 15 $ 661,713 $ 575,512 15
Available-for-sale securities (period-end) $ 186,441 $ 249,484 (25) $ 186,441 $ 249,484 (25)
Held-to-maturity securities, net of allowance for credit losses (period-end)(a)
430,106 343,542 25 430,106 343,542 25
Investment securities portfolio, net of allowance for credit losses (period-end)(b)
$ 616,547 $ 593,026 4 % $ 616,547 $ 593,026 4 %


Selected income statement and balance sheet data
	As of or for the three months ended June 30,							As of or for the six months ended June 30,
(in millions)	2023			2022		Change		2023			2022		Change
Investment securities losses	$	(900)		$	(153)	(488)	%	$	(1,768)		$	(547)	(223)	%
Available-for-sale securities (average)	$	198,620		$	252,121	(21)		$	200,687		$	278,073	(28)
Held-to-maturity securities (average)(a)	410,594			418,843		(2)		413,953			391,978		6
Investment securities portfolio (average)	$	609,214		$	670,964	(9)		$	614,640		$	670,051	(8)
Available-for-sale securities (period-end)	$	201,211	(c)	$	220,213	(9)		$	201,211	(c)	$	220,213	(9)
Held-to-maturity securities (period-end)(a)	408,941			441,649		(7)		408,941			441,649		(7)
Investment securities portfolio, net of allowance for credit losses (period-end)(b)	$	610,152		$	661,862	(8)	%	$	610,152		$	661,862	(8)	%

(a)Effective January 1, 2023, the Firm adopted new hedge accounting guidance. As permitted by the guidance, the Firm elected to transfer $7.1 billion of HTM securities to AFS. During 2022, ~~and 2021,~~ the Firm transferred ~~$73.2 billion and $104.5~~$78.3 billion of investment securities ~~respectively,~~ from AFS to HTM for capital management purposes. Refer to Note 1 and Note 10 for additional information on the new hedge accounting guidance.

(b)~~At September~~As of June 30, ~~2022~~2023 and ~~2021,~~2022, the allowance for credit losses on investment securities was ~~$52~~$74 million and ~~$73~~$47 million, respectively.

(c)As of June 30, 2023, included $25.8 billion of AFS securities associated with the First Republic acquisition. Refer to Note 28 for additional information.

FIRMWIDE RISK MANAGEMENT

Risk is an inherent part of JPMorgan Chase’s business activities. When the Firm extends a consumer or wholesale loan, advises customers and clients on their investment decisions, makes markets in securities, or offers other products or services, the Firm takes on some degree of risk. The Firm’s overall objective is to manage its ~~businesses,~~business, and the associated risks, in a manner that balances serving the interests of its clients, customers and investors, and ~~protects~~protecting the safety and soundness of the Firm.

The Firm believes that effective risk management requires, among other things:

•Acceptance of responsibility, including identification and escalation of risks by all individuals within the Firm;

•Ownership of risk identification, assessment, data and management within each of the LOBs and Corporate; and

•A Firmwide ~~structures for~~ risk ~~governance.~~governance and oversight structure.

The Firm follows a disciplined and balanced compensation framework with strong internal governance and independent oversight by the Board of Directors (the “Board”). The impact of risk and control issues is carefully considered in the Firm’s performance evaluation and incentive compensation processes.

Risk governance ~~and oversight~~ framework

The Firm’s risk ~~management~~ governance ~~and oversight~~ framework involves understanding drivers of risks, types of risks, and impacts of risks.

Refer to pages 81-84 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further discussion of Firmwide risk management governance and oversight.

Risk governance and oversight functions

The following sections of this Form 10-Q and the ~~2021~~2022 Form 10-K discuss the risk governance and oversight functions in place to manage the risks inherent in the Firm’s business activities.

Risk governance and oversight functions Form 10-Q page reference Form 10-K page reference
Strategic risk 85
Capital risk 45-50 86-96
Liquidity risk 51-56 97-104
Reputation risk 105
Consumer credit risk 59-63 110-116
Wholesale credit risk 64-72 117-128
Investment portfolio risk 76 132
Market risk 77-81 133-140
Country risk 82-83 141-142
Operational risk 84 143-149
Compliance risk 146
Conduct risk 147
Legal risk 148
Estimations and Model risk 149


Risk governance and oversight functions	Form 10-Q page reference	Form 10-K page reference
Strategic Risk		85
Capital Risk	48–53	86-96
Liquidity Risk	54–61	97-104
Reputation Risk		105
Consumer Credit Risk	65–69	110-115
Wholesale Credit Risk	70–79	116-126
Investment Portfolio Risk	83	130
Market Risk	84–89	131-138
Country Risk	90	139-140
Climate Risk		141
Operational Risk		142-148
Compliance Risk		145
Conduct Risk		146
Legal Risk		147
Estimations and Model Risk		148

4447

CAPITAL RISK MANAGEMENT

Capital risk is the risk the Firm has an insufficient level or composition of capital to support the Firm’s business activities and associated risks during normal economic environments and under stressed conditions.

Refer to pages 86-96 of JPMorgan Chase’s ~~2021~~2022 Form 10-K, Note 2123 of this Form 10-Q and the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for a further discussion of the Firm’s capital risk.

Basel III Overview

The capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. Bank Holding Companies (“BHCs”) and banks, including the Firm and its insured depository institution (“IDI”) subsidiaries, including JPMorgan Chase Bank, N.A. The minimum amount of regulatory capital that must be held by BHCs and banks is determined by calculating risk-weighted assets ~~(“RWA”~~("RWA"), which are on-balance sheet assets and off-balance sheet exposures, weighted according to risk. Two comprehensive approaches are prescribed for calculating RWA: a standardized approach (“Basel III Standardized”), and an advanced approach (“Basel III Advanced”). For each of the risk-based capital ratios, the capital adequacy of the Firm is evaluated against the lower of the Standardized or Advanced approaches compared to their respective regulatory capital ratio requirements. The Firm’s Basel III ~~Standardized-risk-based~~Standardized risk-based ratios are currently more binding than the Basel III ~~Advanced-risk-based~~Advanced risk-based ratios.

Basel III also includes a requirement for Advanced Approaches banking organizations, including the Firm, to calculate ~~the~~its SLR. While the Firm’s SLR is currently more binding than the Basel III Standardized-risk-based ratios, the Firm expects that in the fourth quarter of 2022, the Basel III Standardized-risk-based ratios will become more binding due to increases in the Firm's risk-based regulatory capital requirements. As a result, the Firm announced the redemption of $5.43 billion of preferred stock and issued $3.5 billion of subordinated notes in the third quarter of 2022 to rebalance the Firm's capital components. Refer to SLR on page ~~48 and capital actions on pages 48-49~~51 for additional information.

Key Regulatory Developments

CECL regulatory capital ~~transition.~~ ~~On December 31, 2021, the CECL capital~~ transition ~~provisions~~, ~~which delayed the effects of CECL on regulatory capital for two years, expired.~~

Beginning January 1, 2022, the $2.9 billion CECL capital benefit, ~~recognized as of December 31, 2021,~~provided by the Federal Reserve in response to the COVID-19 pandemic, is being phased out at 25% per year over a three-year period. As of ~~September~~June 30, ~~2022,~~2023, the Firm's CET1 capital reflected the remaining ~~$2.2~~$1.4 billion benefit associated with the CECL capital transition provisions.

Additionally, effective January 1, ~~2022,~~2023, the Firm phased out ~~25%~~50% of the other ~~relevant~~ CECL capital transition provisions ~~recognized as of December 31, 2021, from~~which impacted Tier 2 capital, adjusted average assets, total leverage exposure and RWA, as applicable.

Refer to Capital Risk Management on pages 86-96 and Note 1 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further information on CECL capital transition provisions and the CECL accounting guidance.

~~Standardized Approach for Counterparty Credit Risk.~~ On January 1, 2022, the Firm adopted “Standardized Approach for Counterparty Credit Risk” (“SA-CCR”), which replaced the Current Exposure Method used to measure derivatives counterparty exposure under the Standardized and Advanced approach RWA where internal models are not used, as well as leverage exposure used to calculate the SLR in the regulatory capital framework. The rule issued by the U.S. banking regulators in November 2019 applies to Basel III Advanced Approaches banking organizations, such as the Firm and JPMorgan Chase Bank, N.A.

The adoption of SA-CCR on January 1, 2022 increased the Firm’s Standardized RWA by approximately $40 billion based on the Firm's derivatives exposure as of December 31, 2021, which resulted in a decrease of approximately 30 bps to the Firm's CET1 capital ratio and a modest decrease in its total leverage exposure. In addition, the adoption of SA-CCR increased the Firm's Advanced RWA, but to a lesser extent than Standardized.

Risk-based Capital Targets

The ~~Firm's current~~Firm’s target for its Basel III Standardized CET1 capital ratio ~~is 12.5%~~ for ~~the fourth quarter of 2022 and 13.0% by the end of~~ the first quarter of ~~2023. These targets are~~2024 remains at 13.5%. The Firm’s quarterly capital ratios may vary from the target dependent on market conditions. The target is based on the Basel III capital rules currently in ~~effect, taking into account~~effect.

Basel III Finalization

In July 2023, the ~~Firm's increasing~~Federal Reserve, the OCC and the FDIC released a proposal to amend the risk-based ~~regulatory~~ capital ~~requirements.~~framework, entitled "Regulatory capital rule: Amendments applicable to large banking organizations and to banking organizations with significant trading activity". Under the proposal, changes would include replacement of the advanced approach with an expanded risk-based approach, which would not permit the use of internal models for the calculation of risk-weighted assets, other than for Market risk. In addition, the stress capital buffer requirement would be applicable to both the expanded risk-based approach and the standardized approach. The proposal would significantly revise risk-based capital requirements for all banks with assets of $100 billion or more, including the Firm and other U.S. GSIBs. The proposed effective date is July 1, 2025 with a three year transition period applicable to the expanded risk-based approach.

GSIB Surcharge

In July 2023, the Federal Reserve also released a proposal to amend the calculation of the GSIB surcharge. If adopted as proposed, these amendments would require the Firm to assess its GSIB surcharge on an annual basis, using the average of the quarterly surcharge calculations throughout the calendar year, with daily averaging required for certain measures within the surcharge calculation. Surcharge increments would be reduced from 50bp to 10bp and there would also be other technical amendments to the Method 2 calculation. The proposed amendments would revise risk-based capital requirements for the Firm and other U.S. GSIBs, and would become effective on two calendar quarters after the adoption of the final rule. Refer to Risk-based Capital Regulatory Requirements on pages 89-90 of JPMorgan Chase’s 2022 Form 10-K for further information on the GSIB surcharge.

4548

The following tables present the Firm’s risk-based capital metrics under both the Basel III Standardized and Advanced approaches and leverage-based capital metrics. Refer to Capital Risk Management on pages 86-96 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further discussion of these capital metrics. Refer to Note 2123 for JPMorgan Chase Bank, N.A.’s risk-based and leverage-based capital metrics. First Republic Bank was not subject to Advanced approach regulatory capital requirements. As a result, for certain exposures associated with the First Republic acquisition, Advanced RWA and any impact on Advanced Total capital is calculated under the Standardized approach as permitted by the transition provisions in the U.S. capital rules. Refer to Note 28 for additional information on the First Republic acquisition.

Standardized Advanced
(in millions, except ratios) September 30, 2022 December 31, 2021
Capital ratio requirements(b)
September 30, 2022 December 31, 2021
Capital ratio requirements(b)
Risk-based capital metrics:(a)
CET1 capital $ 209,661 $ 213,942 $ 209,661 $ 213,942
Tier 1 capital 236,363 246,162 236,363 246,162
Total capital 268,076 274,900 256,157 265,796
Risk-weighted assets 1,678,498 1,638,900 1,609,968 1,547,920
CET1 capital ratio 12.5 % 13.1 % 11.2 % 13.0 % 13.8 % 10.5 %
Tier 1 capital ratio 14.1 15.0 12.7 14.7 15.9 12.0
Total capital ratio 16.0 16.8 14.7 15.9 17.2 14.0


	Standardized								Advanced
(in millions, except ratios)	June 30, 2023			December 31, 2022			Capital ratio requirements(b)		June 30, 2023				December 31, 2022			Capital ratio requirements(b)
Risk-based capital metrics:(a)
CET1 capital	$	235,827		$	218,934				$	235,827			$	218,934
Tier 1 capital	262,585			245,631					262,585				245,631
Total capital	295,281			277,769					281,953			(c)	264,583
Risk-weighted assets	1,706,927			1,653,538					1,694,714			(c)	1,609,773
CET1 capital ratio	13.8		%	13.2		%	12.5	%	13.9		%		13.6		%	11.0	%
Tier 1 capital ratio	15.4			14.9			14.0		15.5				15.3			12.5
Total capital ratio	17.3			16.8			16.0		16.6				16.4			14.5

(a)The capital metrics reflect the CECL capital transition provisions. ~~Additionally, loans originated under the PPP receive a zero percent risk weight.~~

(b)Represents minimum requirements and regulatory buffers applicable to the ~~Firm.~~Firm for the period ended June 30, 2023. For the period ended December 31, 2022, the Basel III Standardized CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 12.0%, 13.5%, and 15.5%, respectively; the Basel III Advanced CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 10.5%, 12.0%, and 14.0%, respectively. Refer to Note 2123 for additional information.

Three months ended
(in millions, except ratios) September 30, 2022 December 31, 2021
Capital ratio requirements(c)
Leverage-based capital metrics:(a)
Adjusted average assets(b)
$ 3,791,804 $ 3,782,035
Tier 1 leverage ratio 6.2 % 6.5 % 4.0 %
Total leverage exposure $ 4,460,636 $ 4,571,789
SLR 5.3 % 5.4 % 5.0 %
(c)Includes the impacts of certain assets associated with the First Republic acquisition to which the Standardized approach has been applied as permitted by the transition provisions in the U.S. capital rules.


Three months ended (in millions, except ratios)	June 30, 2023			December 31, 2022			Capital ratio requirements(c)
Leverage-based capital metrics:(a)
Adjusted average assets(b)	$	3,796,579		$	3,703,873
Tier 1 leverage ratio	6.9		%	6.6		%	4.0	%
Total leverage exposure	$	4,492,761		$	4,367,092
SLR	5.8		%	5.6		%	5.0	%

(a)The capital metrics reflect the CECL capital transition provisions.

(b)Adjusted average assets, for purposes of calculating the leverage ratios, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, and other intangible assets.

(c)Represents minimum requirements and regulatory buffers applicable to the Firm. Refer to Note 2123 for additional information.

4649

Capital components

The following table presents reconciliations of total stockholders’ equity to Basel III CET1 capital, Tier 1 capital and Total capital as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021.~~2022.


(in millions)	(in millions)	September 30, 2022			December 31, 2021		(in millions)	June 30, 2023			December 31, 2022
Total stockholders’ equity	Total stockholders’ equity	$	288,018		$	294,127	Total stockholders’ equity	$	312,516		$	292,332
Less: Preferred stock	Less: Preferred stock	32,838			34,838		Less: Preferred stock	27,404			27,404
Common stockholders’ equity	Common stockholders’ equity	255,180			259,289		Common stockholders’ equity	285,112			264,928
Add:	Add:						Add:
Certain deferred tax liabilities(a)	Certain deferred tax liabilities(a)	2,509			2,499		Certain deferred tax liabilities(a)	3,097			2,510
Other CET1 capital adjustments(b)	Other CET1 capital adjustments(b)	5,766			3,351		Other CET1 capital adjustments(b)	5,586			6,221
Less:	Less:						Less:
Goodwill(c)	Goodwill(c)	52,589		(f)	50,315		Goodwill(c)	54,339			53,501
Other intangible assets	Other intangible assets	1,205			882		Other intangible assets	3,629			1,224

Standardized/Advanced CET1 capital	Standardized/Advanced CET1 capital	$	209,661		$	213,942	Standardized/Advanced CET1 capital	$	235,827		$	218,934
Preferred stock		32,838			34,838
Add: Preferred stock							Add: Preferred stock	27,404			27,404
Less: Other Tier 1 adjustments~~(c)~~	Less: Other Tier 1 adjustments~~(c)~~	6,136			2,618		Less: Other Tier 1 adjustments~~(c)~~	646			707
Standardized/Advanced Tier 1 capital	Standardized/Advanced Tier 1 capital	$	236,363		$	246,162	Standardized/Advanced Tier 1 capital	$	262,585		$	245,631
Long-term debt and other instruments qualifying as Tier 2 capital	Long-term debt and other instruments qualifying as Tier 2 capital	$	14,553		$	14,106	Long-term debt and other instruments qualifying as Tier 2 capital	$	13,424		$	13,569
Qualifying allowance for credit losses(d)	Qualifying allowance for credit losses(d)	17,981			15,012		Qualifying allowance for credit losses(d)	20,459			19,353
Other	Other	(821)			(380)		Other	(1,187)			(784)
Standardized Tier 2 capital	Standardized Tier 2 capital	$	31,713		$	28,738	Standardized Tier 2 capital	$	32,696		$	32,138
Standardized Total capital	Standardized Total capital	$	268,076		$	274,900	Standardized Total capital	$	295,281		$	277,769
Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)	Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)	(11,919)			(9,104)		Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)	(13,328)		(f)	(13,186)
Advanced Tier 2 capital	Advanced Tier 2 capital	$	19,794		$	19,634	Advanced Tier 2 capital	$	19,368		$	18,952
Advanced Total capital	Advanced Total capital	$	256,157		$	265,796	Advanced Total capital	$	281,953		$	264,583

(b)~~Includes~~As of June 30, 2023 and December 31, 2022, included a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of ~~$4.8~~$5.3 billion and ~~$1.4~~$5.2 billion and the benefit from the CECL capital transition provisions of ~~$2.2~~$1.4 billion and ~~$2.9~~$2.2 billion, ~~at September 30, 2022 and December 31, 2021,~~ respectively.

(c)~~As of September 30, 2022, Other Tier 1 adjustments included $2.5 billion of Series V and $2.93 billion of Series I preferred stock called~~Goodwill deducted from capital includes goodwill associated with equity method investments in nonconsolidated financial institutions based on regulatory requirements. Refer to Principal investment risk on page 83 for redemption in September 2022 and subsequently redeemed on October 3, 2022 and October 31, 2022, respectively. As of December 31, 2021, Other Tier 1 adjustments included $2.0 billion of Series Z preferred stock called for redemption on December 31, 2021 and subsequently redeemed on February 1, 2022.additional information.

(d)Represents the allowance for credit losses eligible for inclusion in Tier 2 capital up to 1.25% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA.

(e)Represents an adjustment to qualifying allowance for credit losses for the excess of eligible credit reserves over expected credit losses up to 0.6% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA.

(f)~~Includes estimated equity method goodwill related~~Included an incremental $714 million allowance for credit losses on certain assets associated with the First Republic acquisition to which the ~~Firm's investment~~Standardized approach has been applied, as permitted by the transition provisions in ~~C6 Bank.~~the U.S. capital rules.

Capital rollforward

The following table presents the changes in Basel III CET1 capital, Tier 1 capital and Tier 2 capital for the ~~nine~~six months ended ~~September~~June 30, ~~2022.~~2023.


~~Nine~~Six months ended ~~September~~June 30, (in millions)	~~2022~~2023
Standardized/Advanced CET1 capital at December 31, ~~2021~~2022	$	~~213,942~~218,934
Net income applicable to common equity	~~25,429~~26,365
Dividends declared on common stock	~~(8,921)~~(5,911)
Net purchase of treasury stock	~~(2,017)~~(4,304)
Changes in additional paid-in capital	~~450~~534
Changes related to AOCI applicable to capital:
Unrealized gains/(losses) on investment securities	~~(19,050)~~2,969
~~Adjustment related to AOCI~~Translation adjustments, net of hedges(a)	~~3,381~~ 267
Fair value hedges	(10)
Defined benefit pension and other postretirement employee benefit (“OPEB”) plans	(61)
Changes related to other CET1 capital adjustments(b)	~~(3,553)~~(2,956)
Change in Standardized/Advanced CET1 capital	~~(4,281)~~16,893
Standardized/Advanced CET1 capital at ~~September~~June 30, ~~2022~~2023	$	~~209,661~~235,827
Standardized/Advanced Tier 1 capital at December 31, ~~2021~~2022	$	~~246,162~~245,631
Change in CET1 capital(b)	~~(4,281)~~16,893
Redemptions of noncumulative perpetual preferred stock~~(c)~~	~~(5,434)~~—
Other	~~(84)~~61
Change in Standardized/Advanced Tier 1 capital	~~(9,799)~~16,954
Standardized/Advanced Tier 1 capital at ~~September~~June 30, ~~2022~~2023	$	~~236,363~~262,585
Standardized Tier 2 capital at December 31, ~~2021~~2022	$	~~28,738~~32,138
Change in long-term debt and other instruments qualifying as Tier 2	~~447~~ (145)
Change in qualifying allowance for credit losses(b)	~~2,969~~1,106
Other	~~(441)~~(403)
Change in Standardized Tier 2 capital	~~2,975~~558
Standardized Tier 2 capital at ~~September~~June 30, ~~2022~~2023	$	~~31,713~~32,696
Standardized Total capital at ~~September~~June 30, ~~2022~~2023	$	~~268,076~~295,281
Advanced Tier 2 capital at December 31, ~~2021~~2022	$	~~19,634~~18,952
Change in long-term debt and other instruments qualifying as Tier 2	~~447~~ (145)
Change in qualifying allowance for credit losses(b)(c)	~~154~~964
Other	~~(441)~~(403)
Change in Advanced Tier 2 capital	~~160~~416
Advanced Tier 2 capital at ~~September~~June 30, ~~2022~~2023	$	~~19,794~~19,368
Advanced Total capital at ~~September~~June 30, ~~2022~~2023	$	~~256,157~~281,953

(a)Includes ~~cash flow hedges~~foreign currency translation adjustments and ~~DVA~~the impact of related ~~to structured notes recorded in AOCI.~~derivatives.

(b)Includes the impact of the CECL capital transition ~~provisions.~~provisions and the cumulative effect of changes in accounting principles. Refer to Note 1 for additional information.

(c)~~As of September 30, 2022, Redemptions of noncumulative perpetual preferred stock included $2.5 billion of Series V and $2.93 billion of Series I preferred stock called~~Included an incremental $714 million allowance for ~~redemption~~credit losses on certain assets associated with the First Republic acquisition to which the Standardized approach has been applied, as permitted by the transition provisions in ~~September 2022 and subsequently redeemed on October 3, 2022 and October 31, 2022, respectively.~~the U.S. capital rules.

4750

RWA rollforward

The following table presents changes in the components of RWA under Basel III Standardized and Advanced approaches for the ~~nine~~six months ended ~~September~~June 30, ~~2022.~~2023. The amounts in the rollforward categories are estimates, based on the predominant driver of the change.


		Standardized						Advanced									Standardized						Advanced
Nine months ended September 30, 2022 (in millions)		Credit risk RWA(c)		Market risk RWA		Total RWA		Credit risk RWA(c)		Market risk RWA		Operational risk RWA		Total RWA
December 31, 2021		$	1,543,452	$	95,448	$	1,638,900	$	1,047,042	$	95,506	$	405,372	$	1,547,920
Six months ended June 30, 2023 (in millions)																Six months ended June 30, 2023 (in millions)	Credit risk RWA(c)		Market risk RWA		Total RWA		Credit risk RWA(c)(d)		Market risk RWA		Operational risk RWA		Total RWA
December 31, 2022																December 31, 2022	$	1,568,536	$	85,002	$	1,653,538	$	1,078,076	$	85,432	$	446,265	$	1,609,773
Model & data changes(a)	Model & data changes(a)	(10,714)		(2,572)		(13,286)		982		(2,572)		—		(1,590)		Model & data changes(a)	(6,013)		(3,592)		(9,605)		(3,772)		(3,592)		—		(7,364)
Movement in portfolio levels(b)	Movement in portfolio levels(b)	47,726		5,158		52,884		21,227		5,279		37,132		63,638		Movement in portfolio levels(b)	70,207		(7,213)		62,994		102,745		(7,487)		(2,953)		92,305
Changes in RWA	Changes in RWA	37,012		2,586		39,598		22,209		2,707		37,132		62,048		Changes in RWA	64,194		(10,805)		53,389		98,973		(11,079)		(2,953)		84,941
September 30, 2022		$	1,580,464	$	98,034	$	1,678,498	$	1,069,251	$	98,213	$	442,504	$	1,609,968
June 30, 2023																June 30, 2023	$	1,632,730	$	74,197	$	1,706,927	$	1,177,049	$	74,353	$	443,312	$	1,694,714

(a)Model & data changes refer to material movements in levels of RWA as a result of revised methodologies and/or treatment per regulatory guidance (exclusive of rule changes).

(b)Movement in portfolio levels (inclusive of rule changes) refers to: for Credit risk RWA, ~~impact of SA-CCR adoption on January 1, 2022,~~ changes in book size, impacts associated with the First Republic acquisition including the benefit of the shared-loss agreements entered into with the FDIC, position rolloffs in legacy portfolios in Home Lending, changes in composition and credit quality, market movements, and deductions for excess eligible credit reserves not eligible for inclusion in Tier 2 capital; for Market risk RWA, changes in position, market movements, and ~~market movements;~~changes in the Firm’s regulatory multiplier from Regulatory VaR backtesting exceptions; and for Operational risk RWA, updates to cumulative losses and macroeconomic model inputs.

(c)As of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the Basel III Standardized Credit risk RWA included wholesale and retail off balance-sheet RWA of ~~$210.5~~$221.2 billion and ~~$218.5~~$210.1 billion, respectively; and the Basel III Advanced Credit risk RWA included wholesale and retail off balance-sheet RWA of ~~$178.3~~$199.0 billion and ~~$188.5~~$180.8 billion, respectively.

(d)As of June 30, 2023, Credit risk RWA reflected approximately $57.1 billion of RWA calculated under the Standardized approach for certain assets associated with the First Republic acquisition as permitted by the transition provisions in the U.S. capital rules.

Refer to the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for further information on Credit risk RWA, Market risk RWA and Operational risk RWA.

Supplementary leverage ratio

Refer to Supplementary Leverage Ratio on page 9093 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for additional information.

The following table presents the components of the Firm’s SLR.


Three months ended (in millions, except ratio)	Three months ended (in millions, except ratio)	September 30, 2022			December 31, 2021			Three months ended (in millions, except ratio)	June 30, 2023			December 31, 2022
Tier 1 capital	Tier 1 capital	$	236,363		$	246,162		Tier 1 capital	$	262,585		$	245,631
Total average assets	Total average assets	3,842,247			3,831,655			Total average assets	3,851,388			3,755,271
Less: Regulatory capital adjustments(a)	Less: Regulatory capital adjustments(a)	50,443			49,620			Less: Regulatory capital adjustments(a)	54,809			51,398
Total adjusted average assets(b)	Total adjusted average assets(b)	3,791,804			3,782,035			Total adjusted average assets(b)	3,796,579			3,703,873
Add: Off-balance sheet exposures(c)	Add: Off-balance sheet exposures(c)	668,832			789,754			Add: Off-balance sheet exposures(c)	696,182			663,219
Total leverage exposure	Total leverage exposure	$	4,460,636		$	4,571,789		Total leverage exposure	$	4,492,761		$	4,367,092
SLR	SLR	5.3		%	5.4		%	SLR	5.8		%	5.6		%

(a)For purposes of calculating the SLR, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, other intangible assets and adjustments for the CECL capital transition provisions.

(b)Adjusted average assets used for the calculation of Tier 1 leverage ratio.

(c)Off-balance sheet exposures are calculated as the average of the three month-end spot balances on applicable regulatory exposures during the reporting quarter. ~~Effective January 1, 2022, includes the impact of the SA-CCR adoption.~~ Refer to the Firm’s Pillar 3 Regulatory Capital Disclosures reports for additional information.

Line of business equity

Each business segment is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. As of June 30, 2023, the Firm updated its line of business capital allocations to reflect the impact of the First Republic acquisition.

Refer to line of business equity on page 93 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for additional information on capital allocation.

The following table presents the capital allocated to each business segment.


Line of business equity (Allocated capital)	Line of business equity (Allocated capital)					Line of business equity (Allocated capital)
(in billions)	(in billions)	September 30, 2022		December 31, 2021		(in billions)	June 30, 2023		March 31, 2023		December 31, 2022
Consumer & Community Banking	Consumer & Community Banking	$	50.0	$	50.0	Consumer & Community Banking	$	55.5	$	52.0	$	50.0
Corporate & Investment Bank	Corporate & Investment Bank	103.0		83.0		Corporate & Investment Bank	108.0		108.0		103.0
Commercial Banking	Commercial Banking	25.0		24.0		Commercial Banking	30.0		28.5		25.0
Asset & Wealth Management	Asset & Wealth Management	17.0		14.0		Asset & Wealth Management	17.0		16.0		17.0
Corporate	Corporate	60.2		88.3		Corporate	74.6		71.2		69.9
Total common stockholders’ equity	Total common stockholders’ equity	$	255.2	$	259.3	Total common stockholders’ equity	$	285.1	$	275.7	$	264.9

Capital actions

Common stock dividends

The Firm’s quarterly common stock dividend is currently $1.00 per share. On June 30, 2023, the Firm announced that its Board of Directors intends to increase the quarterly common stock dividend to $1.05 per share, effective in the third quarter of 2023. The Firm’s dividends are subject to approval by the Board of Directors on a quarterly basis.

Common stock

Through April 30, 2022, the Firm was authorized to repurchase up to $30 billion of common shares under its previously approved common share repurchase program, that was announced on December 18, 2020. Effective May 1, 2022, theThe Firm is authorized to purchase up to $30 billion under its common share repurchase program previously approved by the Board of ~~common shares under a new equity repurchase program.~~Directors.

~~On July 14, 2022, the Firm announced that it has temporarily suspended share repurchases in anticipation of the increase in the Firm's regulatory capital requirements.~~

The following table sets forth the Firm’s repurchases of common stock for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022.

Three months ended September 30, Nine months ended September 30,
(in millions) 2022 2021 2022
2021(a)
Total number of shares of common stock repurchased — 33.4 23.1 107.6
Aggregate purchase price of common stock repurchases $ — $ 5,240 $ 3,122 $ 16,440

(a) As directed by the Federal Reserve, total net repurchases and common stock dividends in the first and second quarter of 2021 were restricted and could not exceed the average of the Firm’s net income for the four preceding calendar quarters.


	Three months ended June 30,				Six months ended June 30,
(in millions)	2023		2022		2023		2022
Total number of shares of common stock repurchased	16.7		5.0		38.7		23.1
Aggregate purchase price of common stock repurchases	$	2,293	$	622	$	5,233	$	3,122

Refer to Capital actions on page 94 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for additional information.

Refer to Part II, Item 2: Unregistered Sales of Equity Securities and Use of Proceeds and Part II, Item 5: Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on pages ~~193-194~~209–210 of this Form 10-Q and page 3534 of JPMorgan Chase’s ~~2021~~2022 Form 10-K, respectively, for additional information regarding repurchases of the Firm’s equity securities.

Preferred stock

Preferred stock dividends declared were ~~$432~~$373 million and ~~$402~~$410 million, and $729 million and $807 million, for the three and six months ended ~~September~~June 30, 2023 and 2022, respectively.

Refer to Note 19 of this Form 10-Q and ~~2021, respectively,~~Note 21 of JPMorgan Chase’s 2022 Form 10-K for additional information on the Firm’s preferred stock, including the issuance and ~~$1.2 billion for both the nine months ended September 30, 2022 and 2021.~~

~~On September 1, 2022, the Firm announced the~~ redemption of ~~$2.5 billion of its fixed-to-floating rate non-cumulative~~ preferred ~~stock, Series V and subsequently redeemed those securities on October 3, 2022.~~stock.

On September 30, 2022, the Firm announced the redemption of $2.93 billion of its fixed-to-floating rate non-cumulative perpetual preferred stock, Series I and subsequently redeemed those securities on October 31, 2022.

Subordinated Debt

~~On September 14, 2022, the Firm issued $3.5 billion of fixed-to-floating rate subordinated notes due 2033.~~ Refer to Long-term funding and issuance on page ~~55 for additional information.~~

~~Refer to Note 17 of this Form 10-Q~~60 and Note ~~21 of JPMorgan Chase’s 2021 Form 10-K~~18 for additional information on the Firm’s ~~preferred stock, including the issuance and redemption of preferred stock.~~subordinated debt.

Capital planning and stress testing

Comprehensive Capital Analysis and Review

On April 5, 2023, the Firm submitted its 2023 Capital Plan to the Federal Reserve. On June ~~27, 2022,~~30, 2023, the Firm announced that it had completed the Federal Reserve's ~~2022~~2023 Comprehensive Capital Analysis and Review (“CCAR”) stress test process.

On ~~August 4, 2022,~~July 27, 2023, the Federal Reserve ~~affirmed~~announced the Firm's ~~2022~~2023 SCB requirement of ~~4.0% (up~~2.9% (down from ~~3.2%~~the current 4.0%), ~~and the Firm’s~~which will result in a Standardized CET1

capital ratio requirement, including regulatory buffers, of ~~12.0% (up~~11.4% (down from ~~11.2%~~the current 12.5%). for the fourth quarter of 2023. The ~~2022~~ SCB requirement ~~became~~will become effective on October 1, ~~2022,~~2023 and will remain in effect until September 30, ~~2023.~~2024.

Refer to Capital planning and stress testing on pages 86-87 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for additional information on CCAR.

Other capital requirements

Total Loss-Absorbing Capacity

The Federal Reserve’s TLAC rule requires the U.S. ~~global systemically important bank (“GSIB”)~~GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible long-term debt (“eligible LTD”).

The following table presents the eligible external TLAC and eligible LTD amounts, as well as a representation of ~~the~~these amounts as a percentage of the Firm’s total RWA and total leverage exposure applying the impact of the CECL capital transition provisions as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021.~~2022.


		September 30, 2022						December 31, 2021							June 30, 2023						December 31, 2022
(in billions, except ratio)	(in billions, except ratio)	External TLAC			LTD			External TLAC			LTD			(in billions, except ratio)	External TLAC			LTD			External TLAC			LTD
Total eligible amount	Total eligible amount	$	473.2		$	225.1		$	464.6		$	210.4		Total eligible amount	$	493.8		$	218.2		$	486.0		$	228.5
% of RWA	% of RWA	28.2		%	13.4		%	28.4		%	12.8		%	% of RWA	28.9		%	12.8		%	29.4		%	13.8		%
Regulatory requirements	Regulatory requirements	22.5			9.5			22.5			9.5			Regulatory requirements	23.0			10.0			22.5			9.5
Surplus/(shortfall)	Surplus/(shortfall)	$	95.6		$	65.6		$	95.9		$	54.7		Surplus/(shortfall)	$	101.2		$	47.6		$	114.0		$	71.4
% of total leverage exposure	% of total leverage exposure	10.6		%	5.0		%	10.2		%	4.6		%	% of total leverage exposure	11.0		%	4.9		%	11.1		%	5.2		%
Regulatory requirements	Regulatory requirements	9.5			4.5			9.5			4.5			Regulatory requirements	9.5			4.5			9.5			4.5
Surplus/(shortfall)	Surplus/(shortfall)	$	49.5		$	24.4		$	30.3		$	4.6		Surplus/(shortfall)	$	66.9		$	16.1		$	71.2		$	32.0

Effective January 1, 2023, the Firm's regulatory requirements for TLAC to RWA and LTD to RWA ratios increased by 50 bps to 23.0% and 10.0%, respectively, due to the increase in the Firm’s GSIB requirements. Refer to Risk-based Capital Regulatory Requirements on pages 89-90 of JPMorgan Chase’s 2022 Form 10-K for further information on the GSIB surcharge.

Refer to Liquidity Risk Management on pages ~~51-56~~54-61 for further information on long-term debt issued by the Parent Company.

Refer to Part I, Item 1A: Risk Factors on pages ~~9-33~~9-32 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for information on the financial consequences to holders of the Firm’s debt and equity securities in a resolution scenario.

Refer to other capital requirements on page 95 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for additional information on TLAC.

4952

U.S. broker-dealer regulatory capital

J.P. Morgan Securities

JPMorgan Chase’s principal U.S. broker-dealer subsidiary is J.P. Morgan Securities. J.P. Morgan Securities is subject to the regulatory capital requirements of Rule 15c3-1 under the Securities Exchange Act of 1934 (the “Net Capital Rule”). J.P. Morgan Securities is also registered as a futures commission merchant and is subject to regulatory capital requirements, including those imposed by the SEC, the Commodity Futures Trading Commission (“CFTC”), the Financial Industry Regulatory Authority (“FINRA”) and the National Futures Association (“NFA”).

The following table presents J.P. Morgan Securities’ net capital:

September 30, 2022

June 30, 2023

(in millions)

Actual

Minimum

(in millions)

Actual

Minimum

Net Capital

22,913

5,649

Net Capital

24,578

5,593

~~Refer to Broker-dealer regulatory capital on page 96 of JPMorgan Chase’s 2021 Form 10-K for a discussion on J.P. Morgan Securities’ capital requirements.~~

Non-U.S. subsidiary regulatory capital

J.P. Morgan Securities plc

J.P. Morgan Securities plc is a wholly-owned subsidiary of JPMorgan Chase Bank, N.A. and has authority to engage in banking, investment banking and broker-dealer activities. J.P. Morgan Securities plc is jointly regulated in the U.K. by the ~~U.K.~~ Prudential Regulation Authority (“PRA”) and the Financial Conduct Authority (“FCA”). J.P. Morgan Securities plc is subject to the European Union (“EU”) Capital Requirements Regulation (“CRR”), as adopted in the U.K., and the PRA capital rules, each of which have implemented Basel III and thereby subject J.P. Morgan Securities plc to its requirements.

The Bank of England requires that U.K. banks, including U.K. regulated subsidiaries of overseas groups, maintain minimum requirements for own funds and eligible liabilities (“MREL”). As of ~~September~~June 30, ~~2022,~~2023, J.P. Morgan Securities plc was compliant with ~~the~~its MREL ~~requirements, that became fully phased-in on~~requirements.

Effective January 1, ~~2022.~~2023, J.P. Morgan Securities plc was required to meet the minimum leverage capital requirement established by the PRA of 3.25%, plus regulatory buffers.

The following table presents J.P. Morgan Securities plc’s risk-based and leverage-based capital metrics:


September 30, 2022					Regulatory Minimum ratios(a)
June 30, 2023							June 30, 2023				Regulatory Minimum ratios(a)
(in millions, except ratios)	(in millions, except ratios)	Estimated			Regulatory Minimum ratios(a)		(in millions, except ratios)	Estimated
Total capital	Total capital	$	54,025				Total capital	$	55,711
CET1 ratio		23.2		%	4.5	%
CET1 capital ratio							CET1 capital ratio	17.1		%	4.5	%
Tier 1 capital ratio							Tier 1 capital ratio	22.1			6.0
Total capital ratio	Total capital ratio	29.8		%	8.0	%	Total capital ratio	28.2			8.0

Tier 1 leverage ratio							Tier 1 leverage ratio	7.0			3.3		(b)

(a)Represents minimum Pillar 1 requirements specified by the PRA. J.P. Morgan Securities plc's capital ratios as of ~~September~~June 30, ~~2022~~2023 exceeded the minimum requirements, including the additional capital requirements specified by the PRA.

~~Refer to Broker-dealer regulatory capital on page 96~~(b)At least 75% of ~~JPMorgan Chase’s 2021 Form 10-K for a further discussion on~~ the Tier 1 leverage ratio minimum must be met with CET1 capital.

J.P. Morgan ~~Securities plc.~~

~~J.P. Morgan~~ SE

JPMSE is a wholly-owned subsidiary of JPMorgan Chase Bank, N.A. and has authority to engage in banking, investment banking and markets activities. JPMSE is regulated by the European Central Bank as well as the local regulators in each of the countries in which it operates, and it is subject to EU capital requirements under Basel III.

JPMSE is required by the EU Single Resolution Board to maintain MREL. As of ~~September~~June 30, ~~2022,~~2023, JPMSE was compliant with ~~the~~its MREL requirements.

The following table presents JPMSE’s risk-based and leverage-based capital metrics:


September 30, 2022					Regulatory Minimum ratios(a)
June 30, 2023							June 30, 2023				Regulatory Minimum ratios(a)
(in millions, except ratios)	(in millions, except ratios)	Estimated			Regulatory Minimum ratios(a)		(in millions, except ratios)	Estimated
Total capital	Total capital	$	33,555				Total capital	$	43,524
CET1 ratio		17.3		%	4.5	%
CET1 capital ratio							CET1 capital ratio	19.9		%	4.5	%
Tier 1 capital ratio							Tier 1 capital ratio	19.9			6.0
Total capital ratio	Total capital ratio	27.8		%	8.0	%	Total capital ratio	35.4			8.0
Tier 1 leverage ratio							Tier 1 leverage ratio	5.5			3.0

(a)Represents minimum Pillar 1 requirements specified by the EU CRR. J.P. Morgan SE’s capital and leverage ratios as of ~~September~~June 30, ~~2022~~2023 exceeded the minimum requirements, including the additional capital requirements specified by ~~the European Banking Authority.~~EU regulators.

Refer to U.S. broker-dealer and Non-U.S. subsidiary regulatory capital on page 96 of JPMorgan Chase’s 2022 Form 10-K for further information.

5053

LIQUIDITY RISK MANAGEMENT

Liquidity risk is the risk that the Firm will be unable to meet its contractual and contingent financial obligations as they arise or that it does not have the appropriate amount, composition and tenor of funding and liquidity to support its assets and liabilities. Refer to pages 97-104 of JPMorgan Chase’s ~~2021~~2022 Form 10-K and the Firm’s U.S. LCR Disclosure reports, which are available on the Firm’s website, for a further discussion of the Firm’s liquidity risk.

LCR and HQLA

The LCR rule requires that the Firm and JPMorgan Chase Bank, N.A. maintain an amount of eligible HQLA that is sufficient to meet their respective estimated total net cash outflows over a prospective 30 calendar-day period of significant stress.

Under the LCR rule, the amount of eligible HQLA held by JPMorgan Chase Bank, N.A. that is in excess of its stand-alone 100% minimum LCR requirement, and that is not transferable to non-bank affiliates, must be excluded from the Firm’s reported eligible HQLA. The LCR for both the Firm and JPMorgan Chase Bank, N.A. is required to be a minimum of 100%.

The following table summarizes the Firm and JPMorgan Chase Bank, N.A.’s average LCR for the three months ended ~~September~~June 30, ~~2022,~~2023, March 31, 2023 and June 30, 2022 ~~and September 30, 2021~~ based on the Firm’s interpretation of the LCR framework.


		Three months ended										Three months ended
Average amount (in millions)	Average amount (in millions)	September 30, 2022			June 30, 2022			September 30, 2021			Average amount (in millions)	June 30, 2023			March 31, 2023			June 30, 2022
JPMorgan Chase & Co.:	JPMorgan Chase & Co.:										JPMorgan Chase & Co.:
HQLA	HQLA										HQLA
Eligible cash(a)	Eligible cash(a)	$	589,158		$	634,480		$	690,013		Eligible cash(a)	$	440,294		$	453,287		$	634,480
Eligible securities(b)(c)	Eligible securities(b)(c)	126,913			107,473			34,049			Eligible securities(b)(c)	327,837			278,223			107,473
Total HQLA~~(d)~~(e)	Total HQLA~~(d)~~(e)	$	716,071		$	741,953		$	724,062		Total HQLA~~(d)~~(e)	$	768,131		$	731,510		$	741,953
Net cash outflows	Net cash outflows	$	635,072		$	676,234		$	645,557		Net cash outflows	$	683,446		$	642,650		$	676,234
LCR	LCR	113		%	110		%	112		%	LCR	112		%	114		%	110		%
Net excess eligible HQLA(d)	Net excess eligible HQLA(d)	$	80,999		$	65,719		$	78,505		Net excess eligible HQLA(d)	$	84,685		$	88,860		$	65,719
JPMorgan Chase Bank N.A.:	JPMorgan Chase Bank N.A.:										JPMorgan Chase Bank N.A.:
LCR	LCR	165		%	169		%	174		%	LCR	129		%	140		%	169		%
Net excess eligible HQLA	Net excess eligible HQLA	$	450,260		$	487,867		$	516,374		Net excess eligible HQLA	$	211,233		$	278,651		$	487,867

(a)Represents cash on deposit at central banks, primarily the Federal Reserve Banks.

(b)Predominantly U.S. Treasuries, U.S. GSE and government agency MBS, and sovereign bonds net of applicable haircuts under the LCR rule.

(c)Eligible HQLA securities may be reported in securities borrowed or purchased under resale agreements, trading assets, or investment securities on the Firm’s Consolidated balance sheets.

(d)Excludes average excess eligible HQLA at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates.

(e)End-of-period HQLA balances were $791.5 billion, $758.9 billion, and $721.1 billion for June 30, 2023, March 31, 2023 and June 30, 2022, respectively.

The Firm’s average LCR decreased during the three months ended June 30, 2023, compared with the three months period ended March 31, 2023, due to long-term debt maturities, common stock repurchases and common stock

dividends paid, predominantly offset by a dividend payment from JPMorgan Chase Bank, N.A. to the Parent Company.

The Firm's average LCR increased during the three months ended ~~September~~June 30, ~~2022,~~2023, compared with the ~~three months ended June 30, 2022, predominantly due~~prior year period, driven by dividend payments from JPMorgan Chase Bank, N.A. to ~~long-term debt issuances~~the Parent Company, partially offset by common stock repurchases and ~~CIB Markets activities.~~common stock dividends paid.

JPMorgan Chase Bank, N.A.'s average LCR decreased during the three months ended ~~September~~June 30, ~~2022,~~2023, compared with the three months ended ~~June 30, 2022 due to a decrease in~~March 31, 2023, reflecting an approximate 50% decline associated with the First Republic acquisition, reducing HQLA and increasing net cash outflows. JPMorgan Chase Bank, N.A.’s HQLA ~~primarily from~~was further impacted by a reduction in cash ~~from~~primarily driven by higher average loans, a dividend payment to the Parent Company, and a decline in ~~deposits and loan growth.~~average deposits.

JPMorgan Chase Bank, N.A.’s average LCR for the three months ended ~~September~~June 30, ~~2022 was lower than~~2023 decreased when compared with the same period in the prior year, ~~due to~~reflecting a decrease in JPMorgan Chase Bank, N.A.’s HQLA as a result of a reduction in cash from ~~loan growth, non-HQLA investment security purchases, and~~ a decline in ~~the~~average deposits and loan growth, as well as lower market ~~value~~values of HQLA-eligible investment securities ~~in Treasury~~ and ~~CIO, partially offset by an increase in deposits.~~ the impact of the First Republic acquisition.

Refer to Note 910 and Note 28 for additional information on the Firm's investment securities ~~portfolio.~~portfolio and the First Republic acquisition.

~~The~~Actions by the Federal Reserve have impacted depositor behavior, resulting in reductions to system-wide deposits, including those held by the Firm. Each of the Firm and JPMorgan Chase Bank, N.A.'s average LCR ~~fluctuates~~may fluctuate from period to period due to changes in ~~its~~their respective eligible HQLA and estimated net cash outflows as a result of ongoing business ~~activity.~~activity and from the continued impacts of Federal Reserve actions as well as other factors.

Refer to page 98 of JPMorgan Chase’s ~~2021~~2022 Form 10-K and the Firm’s U.S. LCR Disclosure reports for additional information on HQLA and net cash outflows.

Internal stress testing

The Firm conducts internal liquidity stress testingthat is intended to ensure that the Firm and its material legal entities have sufficient liquidity under a variety of adverse scenarios, including scenarios analyzed as part of the Firm’s resolution and recovery planning. Internal Stress scenarios are produced on a regular basis, and other stress tests are performed in response to specific market events or concerns. Results of stress tests are considered in the formulation of the Firm’s funding plan and assessment of its liquidity position.

The Firm maintains liquidity at the Parent Company, the Intermediate Holding Company (“IHC”), and operating subsidiaries at levels sufficient to comply with liquidity risk tolerances and minimum liquidity requirements, and to

manage through periods of stress when access to normal funding sources may be disrupted.

Other liquidity sources

In addition to the assets reported in the Firm’s eligible HQLA discussed above, the Firm had unencumbered marketable securities, such as equity and debt securities, that the Firm believes would be available to raise liquidity. This includes excess eligible HQLA securities at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. The fair value of these securities was approximately ~~$771~~$620 billion and ~~$914~~$694 billion as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively, although the amount of liquidity that could be raised at any particular time would be dependent on prevailing market conditions. The ~~fair value decreased~~decrease compared to December 31, ~~2021, primarily due to~~2022, was driven by a ~~decrease~~reduction in excess eligible HQLA securities at JPMorgan Chase Bank, N.A., ~~as noted above.~~largely offset by an increase in CIB trading assets and AFS securities associated with the First Republic acquisition.

The Firm also had available borrowing capacity at the Federal Home Loan Banks (“FHLBs”) and the discount window at the Federal Reserve ~~Bank~~Banks as a result of collateral pledged by the Firm to such banks of approximately ~~$317~~$332 billion and ~~$308~~$323 billion as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively. This borrowing capacity excludes the benefit of cash and securities reported in the Firm’s eligible HQLA or other unencumbered securities that are currently pledged at the Federal Reserve ~~Bank~~Banks discount window and other central banks. Although available, the Firm does not view this borrowing capacity at the Federal Reserve ~~Bank~~Banks discount window and the other central banks as a primary source of liquidity.

NSFR

The net stable funding ratio (“NSFR”) ~~rule requires~~is a liquidity requirement for large banking organizations that is intended to measure the ~~Firm and JPMorgan Chase Bank, N.A. maintain an amount~~adequacy of “available” stable funding that is sufficient to meet their “required” amounts of stable funding over a one-year horizon.

As of ~~September~~June 30, ~~2022,~~2023, the Firm and JPMorgan Chase Bank, N.A. were compliant with the 100% minimum NSFR requirement, based on the Firm's current ~~understanding~~interpretation of the final rule. ~~The~~By the end of August 2023, the Firm will be required to publicly disclose its quarterly average NSFR ~~semi annually beginning in 2023.~~on a semiannual basis.

5255

Funding

Sources of funds

Management believes that the Firm’s unsecured and secured funding capacity is sufficient to meet its on- and off-balance sheet obligations, which includes both short- and long-term cash requirements.

The Firm funds its global balance sheet through diverse sources of funding including stable deposits, secured and unsecured funding in the capital markets and stockholders’ equity. Deposits are the primary funding source for JPMorgan Chase Bank, N.A. Additionally, JPMorgan Chase Bank, N.A. may access funding through short- or long-term secured borrowings, through the issuance of unsecured

long-term debt, or from borrowings from the ~~Intermediate Holding Company (“IHC”).~~IHC. The

Firm’s non-bank subsidiaries are primarily funded from long-term unsecured borrowings and short-term secured borrowings which are primarily securities loaned or sold under repurchase agreements. Excess funding is invested by Treasury and CIO in the Firm’s investment securities portfolio or deployed in cash or other short-term liquid investments based on their interest rate and liquidity risk characteristics.

Refer to Note 2224 for additional information on off-balance sheet obligations.

Deposits

The table below summarizes, by LOB and Corporate, the period-end deposit balances as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, and the average deposit balances for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.


		September 30, 2022			December 31, 2021					Three months ended September 30,						Nine months ended September 30,						June 30, 2023		December 31, 2022								Three months ended June 30,									Six months ended June 30,
Deposits									Average					Average
																											Average								Average
(in millions)	(in millions)			September 30, 2022					December 31, 2021					2022		2021				2022	2021								(in millions)		June 30, 2023			December 31, 2022									2023			2022				2023	2022
Consumer & Community Banking	Consumer & Community Banking						$	1,174,227		$	1,076,323			$	1,169,474	$	1,034,947			Consumer & Community Banking				$	1,157,309		$	1,180,453									$	1,135,261		$	1,167,057
Corporate & Investment Bank	Corporate & Investment Bank						721,690			762,539				750,538		758,534				Corporate & Investment Bank				722,818			773,664										711,266			765,200
Commercial Banking	Commercial Banking	271,857							323,954					281,276		300,433				299,337	293,817					Commercial Banking		269,026		271,342									275,196			300,339						270,595	308,518
Asset & Wealth Management	Asset & Wealth Management	242,315					282,052					253,026		229,710				269,754		218,742			Asset & Wealth Management	199,763			233,130								211,872			268,861						218,078			278,256
Corporate	Corporate	14,449			396					15,151		454				8,385		452			Corporate	21,083		14,203								20,219			8,995						18,931			4,948
Total Firm	Total Firm	$	2,408,615		$	2,462,303				$	2,445,370	$	2,369,459			$	2,497,488	$	2,306,492		Total Firm	$	2,398,962	$	2,340,179							$	2,387,414		$	2,532,312					$	2,354,131		$	2,523,979

~~Deposits~~The Firm believes that deposits provide a stable source of funding and reduce the Firm’s reliance on the wholesale funding markets. A significant portion of the Firm’s deposits are consumer deposits and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are generally considered to be stable sources of liquidity because they are generated from customers that maintain operating service relationships with the Firm.

~~The table below shows the loan and deposit balances, the loans-to-deposits ratio, and deposits as a percentage of total liabilities, as of September 30, 2022 and December 31, 2021.~~

(in billions except ratios) September 30, 2022 December 31, 2021
Deposits $ 2,408.6 $ 2,462.3
Deposits as a % of total liabilities 69 % 71 %
Loans $ 1,112.6 $ 1,077.7
Loans-to-deposits ratio 46 % 44 %

The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances. However, during periods of market disruption those trends could be affected.

Average deposits were ~~higher~~lower for the three months ended ~~September~~June 30, ~~2022~~2023 compared to the three months ended ~~September~~June 30, ~~2021, reflecting:~~2022. The decrease was driven by:

•~~an increase~~the continued migration into higher-yielding investments in ~~CCB driven by growth from~~ ~~new and existing accounts across both consumer and small business customers, and growth in time deposits in~~ AWM

~~partially offset by~~

•~~declines in both Payments and Securities Services in CIB and in non-operating deposits in CB.~~

~~Average deposits were higher for the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021, reflecting:~~

•~~increases in CCB driven by growth from existing and new accounts across both consumer and small business customers, and~~

•~~net inflows in AWM resulting from the residual effects of certain government actions,~~

~~partially offset by~~

•~~a decline in Securities Services in CIB.~~

~~Period-end deposits have declined as a result of the migration that began in the second quarter of 2022.~~

~~The decrease in period-end deposits reflects a reduction in non-operating deposits in CB, and in AWM net outflows into investments~~ as a result of the rising interest rate environment,

•continued deposit attrition in CIB, including actions to reduce certain deposits, partially offset by ~~growth from new consumer~~net issuances of structured notes as a result of client demand,

•continued deposit attrition in CB, partially offset by continued inflows as a result of disruptions in the market in the first quarter of 2023, and ~~small business accounts~~

•a net decline in CCB ~~that more than~~primarily from existing accounts due to increased customer spending, largely offset by the impact of the First Republic acquisition,

partially offset by

•an increase in Corporaterelated to the Firm's international consumer initiatives.

Average deposits were lower for the six months ended June 30, 2023 compared to the six months ended June 30, 2022. The decrease was driven by:

•the continued migration into higher-yielding investments in AWM as a result of the rising interest rate environment,

•continued deposit attrition in CIB, including actions to reduce certain deposits, partially offset by net issuances of structured notes as a result of client demand,

•continued deposit attrition in CB, partially offset by continued inflows as a result of disruptions in the market in the first quarter of 2023, and

•a net decline in CCB primarily from existing accounts due to increased customer spending, partially offset by the impact of the First Republic acquisition,

partially offset by

•an increase in Corporate related to the Firm's international consumer initiatives.

5356

Period-end deposits increased, reflecting:

•increases in CIB due to deposit inflows related to client-driven activities and net issuances of structured notes as a result of client demand,

•$68 billion of deposits in CCB associated with the First Republic acquisition, partially offset by a net decline ~~in deposits~~primarily in existing accounts asdue to increased customer spending, ~~continued to grow.~~and

~~The~~•an increase in ~~deposits in~~ Corporate ~~was driven by~~related to the Firm's international consumer ~~growth initiatives.~~

initiatives,

partially offset by

•the continued migration into higher-yielding investments in AWM as a result of the rising interest rate environment, and

•ongoing attrition in CB driven by higher rates and seasonal outflows, predominantly offset by inflows as a result of disruptions in the market in the first quarter of 2023.

Refer to ~~the discussion of~~ the Firm’s Consolidated Balance Sheets Analysis and the Business Segment Results on pages ~~16-17~~16-19 and pages ~~21-43,~~22-46, respectively, for further information on deposit and liability balance trends. Refer to Note 3 for further information on structured notes.

Certain deposits are covered by insurance protection that provides additional funding stability and results in a benefit to the LCR. Deposit insurance protection may be available to depositors in the countries in which the deposits are placed. For example, the FDIC provides deposit insurance protection for deposits placed in a U.S. depository institution. At June 30, 2023 and December 31, 2022(a), the Firmwide estimated uninsured deposits were $1,381.1 billion and $1,353.1 billion, respectively, primarily reflecting wholesale operating deposits.

Total uninsured deposits include time deposits. The table below presents an estimate of uninsured U.S. and non-U.S. time deposits, and their remaining maturities. The Firm’s estimates of its uninsured U.S. time deposits are based on data that the Firm calculates periodically under applicable FDIC regulations. For purposes of this presentation, all non-U.S. time deposits are deemed to be uninsured.


(in millions)	June 30, 2023				December 31, 2022
	U.S.		Non-U.S.		U.S.			Non-U.S.
Three months or less	$	33,242	$	74,455	$	25,910	(a)	$	68,765
Over three months but within 6 months	15,044		5,452		8,670			3,658
Over six months but within 12 months	8,014		3,524		7,035			2,850
Over 12 months	770		2,506		787			2,634
Total	$	57,070	$	85,937	$	42,402		$	77,907

(a)Prior-period amounts for the Firmwide estimated uninsured deposits, including uninsured U.S. time deposits, have been revised to conform with the current presentation, reflecting refinements to the calculation.

Refer to pages 100-101 of JPMorgan Chase's 2022 Form 10-K for additional disclosure on the Firm's deposit balances.

The table below shows the loan and deposit balances, the loans-to-deposits ratios, and deposits as a percentage of total liabilities, as of June 30, 2023 and December 31, 2022.


(in billions except ratios)	June 30, 2023			December 31, 2022
Deposits	$	2,399.0		$	2,340.2
Deposits as a % of total liabilities	67		%	69		%
Loans	$	1,300.1		$	1,135.6
Loans-to-deposits ratio	54		%	49		%

The following tables provide a summary of the average balances and average interest rates of JPMorgan Chase’s deposits for the three and six months ended June 30, 2023 and 2022.


(Unaudited) (in millions)	Average balances
	Three months ended				Six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
U.S. offices
Noninterest-bearing	$	646,767	$	713,059	$	635,748	$	709,294
Interest-bearing
Demand(a)	286,453		352,081		283,524		346,005
Savings(b)	883,737		987,067		887,257		996,138
Time	138,985		54,670		118,960		52,904
Total interest-bearing deposits	1,309,175		1,393,818		1,289,741		1,395,047
Total deposits in U.S. offices	1,955,942		2,106,877		1,925,489		2,104,341
Non-U.S. offices
Noninterest-bearing	24,948		28,832		25,390		28,789
Interest-bearing
Demand	320,822		335,102		320,527		331,348
Time	85,702		61,501		82,725		59,501
Total interest-bearing deposits	406,524		396,603		403,252		390,849
Total deposits in non-U.S. offices	431,472		425,435		428,642		419,638
Total deposits	$	2,387,414	$	2,532,312	$	2,354,131	$	2,523,979


(Unaudited)	Average interest rates
	Three months ended				Six months ended
	June 30, 2023		June 30, 2022		June 30, 2023		June 30, 2022
U.S. offices
Noninterest-bearing	NA		NA		NA		NA
Interest-bearing
Demand(a)	3.41	%	0.32	%	3.09	%	0.18	%
Savings(b)	1.04		0.12		0.97		0.10
Time	4.53		0.92		4.52		0.60
Total interest-bearing deposits	1.93		0.20		1.75		0.14
Total deposits in U.S. offices	1.28		0.12		1.19		0.08
Non-U.S. offices
Noninterest-bearing	NA		NA		NA		NA
Interest-bearing
Demand	2.53		0.08		2.38		0.02
Time	5.66		0.72		5.32		0.38
Total interest-bearing deposits	3.21		0.20		2.98		0.08
Total deposits in non-U.S. offices	3.01		0.16		2.80		0.06
Total deposits	1.60	%	0.16	%	1.47	%	0.08	%

(a)Includes Negotiable Order of Withdrawal (“NOW”) accounts, and certain trust accounts.

(b)Includes Money Market Deposit Accounts (“MMDAs”).

Refer to Note 16for additional information on deposits.

The following table summarizes short-term and long-term funding, excluding deposits, as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, and average balances for the three and ~~nine~~six months ended ~~September~~ June 30, ~~2022~~2023 and ~~2021,~~2022, respectively. Refer to the Consolidated Balance Sheets Analysis on pages ~~16-17~~16-19 and Note 1011 for additional information.

September 30, 2022 December 31, 2021 Three months ended September 30, Nine months ended September 30,
Sources of funds (excluding deposits) Average Average
(in millions) 2022 2021 2022 2021
Commercial paper $ 13,953 $ 15,108 $ 16,926 $ 10,304 $ 17,039 $ 12,275
Other borrowed funds 10,651 9,999 12,351 12,257 12,821 12,467
Federal Funds purchased 1,492 1,769 1,685 2,179 1,541 2,325
Total short-term unsecured funding $ 26,096 $ 26,876 $ 30,962 $ 24,740 $ 31,401 $ 27,067
Securities sold under agreements to repurchase(a)
$ 232,844 $ 189,806 $ 232,581 $ 231,338 $ 234,383 $ 257,846
Securities loaned(a)
5,603 2,765 5,316 7,395 5,095 7,488
Other borrowed funds 23,262 28,487 23,994 29,571 26,088 27,953
Obligations of Firm-administered multi-seller conduits(b)
8,500 6,198 7,602 9,620 6,954 $ 9,896
Total short-term secured funding $ 270,209 $ 227,256 $ 269,493 $ 277,924 $ 272,520 $ 303,183
Senior notes $ 185,730 $ 191,488 $ 193,730 $ 188,568 $ 190,447 $ 178,697
Subordinated debt 21,797 20,531 19,510 20,956 19,628 20,954
Structured notes(c)
65,180 73,956 67,901 75,285 68,354 75,226
Total long-term unsecured funding $ 272,707 $ 285,975 $ 281,141 $ 284,809 $ 278,429 $ 274,877
Credit card securitization(b)
$ 1,996 $ 2,397 $ 1,781 $ 2,396 $ 1,933 $ 3,412
FHLB advances 11,098 11,110 11,100 11,713 11,105 12,532
Other long-term secured funding(d)
3,668 3,920 3,729 4,379 3,814 4,487
Total long-term secured funding $ 16,762 $ 17,427 $ 16,610 $ 18,488 $ 16,852 $ 20,431
Preferred stock(e)
$ 32,838 $ 34,838 $ 32,838 $ 34,229 $ 33,065 $ 32,417
Common stockholders’ equity(e)
$ 255,180 $ 259,289 $ 252,944 $ 253,556 $ 251,147 $ 250,011
Sources of funds (excluding deposits)


	June 30, 2023			December 31, 2022			Three months ended June 30,					Six months ended June 30,
						Average						Average
(in millions)						2023			2022				2023			2022
Commercial paper	$	11,686		$	12,557		$	11,057		$	19,589			$	11,930		$	17,097
Other borrowed funds	7,532			8,418			9,791			12,533				9,931			13,061
Federal funds purchased	1,783			1,684			1,564			1,241				1,729			1,467
Total short-term unsecured funding	$	21,001		$	22,659		$	22,412		$	33,363			$	23,590		$	31,625
Securities sold under agreements to repurchase(a)	$	260,999		$	198,382		$	258,297		$	227,075			$	252,322		$	235,300
Securities loaned(a)	3,490			2,547			3,857			5,060				3,994			4,982
Other borrowed funds	21,804		(g)	23,052			21,179			26,376				22,037			27,152
Obligations of Firm-administered multi-seller conduits(b)	16,383			9,236			12,741			6,779				11,622			6,625
Total short-term secured funding	$	302,676		$	233,217		$	296,074		$	265,290			$	289,975		$	274,059
Senior notes	$	177,966		$	188,025		$	180,712		$	187,143			$	182,830		$	188,779
Subordinated debt	19,763			21,803			20,543			19,139				21,182			19,688
Structured notes(c)	76,648			70,839			75,075			66,025				74,413			68,584
Total long-term unsecured funding	$	274,377		$	280,667		$	276,330		$	272,307			$	278,425		$	277,051
Credit card securitization(b)	$	999		$	1,999		$	999		$	1,748			$	1,087		$	2,010

FHLB advances	36,094		(d)	11,093			28,420			11,106				19,804			11,107
Purchase Money Note(d)	48,883			NA			32,745			NA				16,463			NA
Other long-term secured funding(e)	4,724			4,105			4,667			3,807				4,383			3,858
Total long-term secured funding	$	90,700		$	17,197		$	66,831		$	16,661			$	41,737		$	16,975
Preferred stock(f)	$	27,404		$	27,404		$	27,404		$	32,838			$	27,404		$	33,180
Common stockholders’ equity(f)	$	285,112		$	264,928		$	277,885		$	247,986			$	274,560		$	250,234

(a)Primarily consists of short-term securities loaned or sold under agreements to repurchase.

(b)Included in beneficial interests issued by consolidated variable interest entities on the Firm’s Consolidated balance sheets.

(c)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.

(d)As of June 30, 2023, included $25.0 billion FHLB advances and the Purchase Money Note associated with the First Republic acquisition. Refer to Note 28 for additional information.

(e)Includes long-term structured notes which are secured.

~~(e)~~(f)Refer to Capital Risk Management on pages ~~45-50 and~~48-53, Consolidated statements of changes in stockholders’ equity on page 9399 of this Form 10-Q, and Note 21 and Note 22 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for additional information on preferred stock and common stockholders’ equity.

(g)As of June 30, 2023, included FHLB advances with original maturities of less than one year of $2.3 billion associated with the First Republic acquisition. Refer to Note 28 for additional information.

Short-term funding

The Firm’s sources of short-term secured funding primarily consist of securities loaned or sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and U.S. GSE and government agency MBS. Securities sold under agreements to repurchase increased at ~~September~~June 30, ~~2022,~~2023, compared with December 31, ~~2021,~~2022, due to higher secured financing of trading assets and the impact of a lower level of netting on client-driven market-making activities in ~~Markets, partially offset by lower secured financing of AFS investment securities in Treasury and CIO.~~Markets.

The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to investment and financing activities of clients, the Firm’s demand for financing, the ongoing management of the mix of the Firm’s liabilities, including its secured and unsecured financing (for both the investment securities and market-making portfolios), and other market and portfolio factors.

The Firm’s sources of short-term unsecured funding primarily consist of issuances of wholesale commercial paper and other borrowed funds.

The ~~increase~~decrease in commercial paper at June 30, 2023 from December 31, 2022, and for the average three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 compared to the prior year ~~period, and the decrease in commercial paper at September 30, 2022, from December 31, 2021,~~periods, was due to ~~changes in the~~lower net issuance levels ~~primarily for~~resulting from short-term liquidity management.

The decrease in average unsecured other borrowed funds for the three and six months ended June 30, 2023 compared to the prior year periods was due to a lower level of overdrafts as well as net maturities of structured notes classified as other borrowed funds in CIB.

5459

Long-term funding and issuance

Long-term funding provides an additional source of stable funding and liquidity for the Firm. The Firm’s long-term funding plan is driven primarily by expected client activity, liquidity considerations, and regulatory requirements, including TLAC. Long-term funding objectives include maintaining diversification, maximizing market access and optimizing funding costs. The Firm evaluates various funding markets, tenors and currencies in creating its optimal long-term funding plan.

The significant majority of the Firm’s long-term unsecured funding is issued by the Parent Company to provide flexibility in support of the funding needs of both bank and non-bank ~~subsidiary funding needs.~~subsidiaries. The Parent Company advances substantially all net funding proceeds to its subsidiary, the IHC. The IHC does not issue debt to external counterparties. The following table summarizes long-term unsecured issuance and maturities or redemptions for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022. Refer to Note 18 of this Form 10-Q and Liquidity Risk Management on pages 97-104 ~~and Note 20~~ of JPMorgan Chase’s ~~2021~~2022 Form 10-K for additional information on the IHC and long-term debt.


Long-term unsecured funding	Long-term unsecured funding																		Long-term unsecured funding
		Three months ended September 30,				Nine months ended September 30,				Three months ended September 30,				Nine months ended September 30,						Three months ended June 30,				Six months ended June 30,					Three months ended June 30,				Six months ended June 30,
		2022		2021		2022		2021		2022		2021		2022		2021				2023		2022		2023		2022			2023		2022		2023		2022
(Notional in millions)	(Notional in millions)	Parent Company								Subsidiaries						(Notional in millions)		Parent Company										Subsidiaries
Issuance	Issuance																		Issuance
Senior notes issued in the U.S. market	Senior notes issued in the U.S. market	$	8,500	$	4,500	$	29,600	$	33,750	$	—	$	—	$	—	$	—		Senior notes issued in the U.S. market	$	2,500	$	13,000	$	2,500	$	21,100		$	—	$	—	$	—	$	—
Senior notes issued in non-U.S. markets	Senior notes issued in non-U.S. markets	—		—		2,752		5,581		—		—		—		—			Senior notes issued in non-U.S. markets	—		—		—		2,752			—		—		—		—
Total senior notes	Total senior notes	8,500		4,500		32,352		39,331		—		—		—		—			Total senior notes	2,500		13,000		2,500		23,852			—		—		—		—
Subordinated debt		3,500		—		3,500		—		—		—		—		—

Structured notes(a)	Structured notes(a)	416		798		2,341		3,733		9,733		8,145		29,395		25,925			Structured notes(a)	563		918		1,444		2,074			7,947		11,230		15,665		19,679
Total long-term unsecured funding – issuance	Total long-term unsecured funding – issuance	$	12,416	$	5,298	$	38,193	$	43,064	$	9,733	$	8,145	$	29,395	$	25,925		Total long-term unsecured funding – issuance	$	3,063	$	13,918	$	3,944	$	25,926		$	7,947	$	11,230	$	15,665	$	19,679
Maturities/redemptions	Maturities/redemptions																		Maturities/redemptions
Senior notes	Senior notes	$	4,495	$	3,523	$	13,188	$	10,840	$	—	$	—	$	64	$	66		Senior notes	$	6,335	$	5,000	$	13,433	$	8,693		$	2	$	—	$	67	$	64
Subordinated debt	Subordinated debt	—		4		—		4		—		—		—		—			Subordinated debt	2,027		—		2,027		—			—		—		—		—
Structured notes	Structured notes	72		530		1,464		3,691		6,108		7,280		21,178		25,453			Structured notes	324		415		771		1,392			6,479		7,428		13,981		15,075
Total long-term unsecured funding – maturities/redemptions	Total long-term unsecured funding – maturities/redemptions	$	4,567	$	4,057	$	14,652	$	14,535	$	6,108	$	7,280	$	21,242	$	25,519		Total long-term unsecured funding – maturities/redemptions	$	8,686	$	5,415	$	16,231	$	10,085		$	6,481	$	7,428	$	14,048	$	15,139

(a)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.

The Firm can also raise secured long-term funding through securitization of consumer credit card loans and FHLB advances. The following table summarizes the securitization issuance, ~~and~~as well as the FHLB advances and the Purchase Money Note associated with the First Republic acquisition, and their respective maturities or redemptions, as applicable for the three and ~~nine~~six months ended ~~September~~June 30, 2023 and 2022, ~~and 2021,~~ respectively.


Long-term secured funding	Long-term secured funding																	Long-term secured funding
		Three months ended September 30,								Nine months ended September 30,									Three months ended June 30,									Six months ended June 30,
		Issuance				Maturities/Redemptions				Issuance				Maturities/Redemptions					Issuance					Maturities/Redemptions				Issuance					Maturities/Redemptions
(in millions)	(in millions)	2022		2021		2022		2021		2022		2021		2022		2021		(in millions)	2023			2022		2023		2022		2023			2022		2023		2022
Credit card securitization	Credit card securitization	$	997	$	—	$	750	$	—	$	997	$	—	$	1,400	$	2,550	Credit card securitization	$	—		$	—	$	—	$	—	$	—		$	—	$	1,000	$	650

FHLB advances	FHLB advances	—		—		3		1,002		—		—		9		3,008		FHLB advances	25,775		(a)	—		602		4		25,775		(a)	—		604		6
Other long-term secured funding(a)		73		63		49		238		357		304		141		430
Purchase Money Note(a)																		Purchase Money Note(a)	50,000			NA		—		NA		50,000			NA		—		NA
Other long-term secured funding(b)																		Other long-term secured funding(b)	591			82		58		31		742			284		112		92
Total long-term secured funding	Total long-term secured funding	$	1,070	$	63	$	802	$	1,240	$	1,354	$	304	$	1,550	$	5,988	Total long-term secured funding	$	76,366		$	82	$	660	$	35	$	76,517		$	284	$	1,716	$	748

(a)As of June 30, 2023, included FHLB advances and the Purchase Money Note associated with the First Republic acquisition. Refer to Note 28 for additional information.

(b)Includes long-term structured notes that are secured.

The Firm’s wholesale businesses also securitize loans for client-driven transactions; those client-driven loan securitizations are not considered to be a source of funding for the Firm and are not included in the table above. Refer to Note 14 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further description of client-driven loan securitizations.

5560

Credit ratings

The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm’s access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors, which the Firm believes are incorporated in its liquidity risk

and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.

Additionally, the Firm’s funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to ~~liquidity risk~~Note 5 and ~~credit-related contingent features in~~ Note 414 for additional ~~information on the impact of a credit ratings downgrade on the funding requirements for VIEs, and on derivatives and collateral agreements.~~

information.

The credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries as of ~~September~~June 30, ~~2022,~~2023, were as follows:

JPMorgan Chase & Co.

JPMorgan Chase Bank, N.A.

J.P. Morgan Securities LLC

J.P. Morgan Securities plc

J.P. Morgan SE~~(a)~~

~~September~~June 30, ~~2022~~2023

Long-term issuer

Short-term issuer

Outlook

Long-term issuer

Short-term issuer

Outlook

Long-term issuer

Short-term issuer

Outlook

Moody’s Investors Service

P-1

Stable

Aa2

P-1

Stable

Aa3

P-1

Stable

Standard & Poor’s(a)

A-

A-2

~~Positive~~Stable

A+

A-1

~~Positive~~Stable

A+

A-1

~~Positive~~Stable

Fitch Ratings

AA-

F1+

Stable

F1+

Stable

F1+

Stable

(a) ~~In January 2022, the three rating agencies~~On March 31, 2023, Standard & Poor's affirmed the credit ratings of ~~J.P. Morgan SE, which are equivalent to the ratings previously assigned to J.P. Morgan SE's predecessors, J.P. Morgan Bank Luxembourg S.A. and J.P. Morgan AG.~~

On September 29, 2022, Moody’s upgraded the Parent Company’s long-term issuer rating to A1 (previously A2) and changed the long-term outlook to stable (previously positive). All other ratings and outlooks of the Parent Company and ~~those of~~ the ~~Firm's~~Firm’s principal bank and non-bank subsidiaries, ~~were affirmed by Moody's.~~and revised the outlook from positive to stable.

Refer to page 104 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a discussion of the factors that could affect the credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries.

5661

CREDIT AND INVESTMENT RISK MANAGEMENT

Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk,

wholesale credit risk, and investment portfolio risk. Refer to Consumer Credit Portfolio, Wholesale Credit Portfolio and

Allowance for Credit Losses on pages ~~59-75~~65-82 for a further discussion of Credit Risk.

Refer to page 7683 for a further discussion of Investment Portfolio Risk. Refer to Credit and Investment Risk Management on pages ~~106-132~~106-130 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further discussion of the Firm’s Credit and Investment Risk Management framework.

5762

CREDIT PORTFOLIO

Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer.

In the following tables, total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes ~~11, 22~~12, 24 and 45 for additional information on the Firm’s loans, lending-related commitments and derivative receivables.

Refer to Note 910 for information regarding the credit risk inherent in the Firm’s investment securities portfolio; and refer to Note 1011 for information regarding the credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages ~~59-63~~65-69 and Note 1112 for further discussions of the consumer credit environment and consumer loans. Refer to Wholesale Credit Portfolio on pages ~~64-72~~70-79 and Note 1112 for further discussions of the wholesale credit environment and wholesale loans.

On January 1, 2023, the Firm adopted changes to the TDR accounting guidance, which eliminated the accounting and disclosure requirements for TDRs including the requirement to assess whether a modification is reasonably expected or involves a concession. The new guidance requires disclosure for loan modifications to borrowers experiencing financial difficulty consisting of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. The Firm has defined these types of modifications as financial difficulty modifications ("FDMs"). As a result of the elimination of the requirement to assess whether a modification is reasonably expected or involves a concession, the population of loans considered FDMs will differ from those previously considered TDRs. Refer to Note 1 and Note 12 for further information.


Total credit portfolio	Total credit portfolio										Total credit portfolio
		Credit exposure					Nonperforming(c)(d)					Credit exposure					Nonperforming(d)
(in millions)	(in millions)	Sep 30, 2022		Dec 31, 2021			Sep 30, 2022		Dec 31, 2021		(in millions)	Jun 30, 2023			Dec 31, 2022		Jun 30, 2023		Dec 31, 2022
Loans retained	Loans retained	$	1,068,073	$	1,010,206		$	5,799	$	6,932	Loans retained	$	1,255,688		$	1,089,598	$	6,377	$	5,837
Loans held-for-sale	Loans held-for-sale	3,073		8,688			71		48		Loans held-for-sale	5,592			3,970		119		54
Loans at fair value	Loans at fair value	41,487		58,820			804		815		Loans at fair value	38,789			42,079		777		829
Total loans	Total loans	1,112,633		1,077,714			6,674		7,795		Total loans	1,300,069			1,135,647		7,273		6,720
Derivative receivables	Derivative receivables	92,534		57,081			339		316		Derivative receivables	64,217			70,880		286		296
Receivables from customers(a)	Receivables from customers(a)	54,921		59,645			—		—		Receivables from customers(a)	42,741			49,257		—		—
Total credit-related assets	Total credit-related assets	1,260,088		1,194,440			7,013		8,111		Total credit-related assets	1,407,027			1,255,784		7,559		7,016
Assets acquired in loan satisfactions	Assets acquired in loan satisfactions										Assets acquired in loan satisfactions
Real estate owned	Real estate owned	NA		NA			199		213		Real estate owned	NA			NA		243		203
Other	Other	NA		NA			31		22		Other	NA			NA		36		28
Total assets acquired in loan satisfactions	Total assets acquired in loan satisfactions	NA		NA			230		235		Total assets acquired in loan satisfactions	NA			NA		279		231
Lending-related commitments	Lending-related commitments	1,306,673		1,262,313			470		764		Lending-related commitments	1,473,420			1,326,782		332		455
Total credit portfolio	Total credit portfolio	$	2,566,761	$	2,456,753		$	7,713	$	9,110	Total credit portfolio	$	2,880,447	(c)	$	2,582,566	$	8,170	$	7,702
Credit derivatives and credit-related notes used in credit portfolio management activities(b)	Credit derivatives and credit-related notes used in credit portfolio management activities(b)	$	(25,646)	$	(20,739)	(e)	$	—	$	—	Credit derivatives and credit-related notes used in credit portfolio management activities(b)	$	(32,090)		$	(19,330)	$	—	$	—
Liquid securities and other cash collateral held against derivatives	Liquid securities and other cash collateral held against derivatives	(25,068)		(10,102)			NA		NA		Liquid securities and other cash collateral held against derivatives	(23,282)			(23,014)		NA		NA

(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.

(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage credit exposures.

(c)Included credit exposure associated with the First Republic acquisition consisting of $104.6 billion in the Consumer credit portfolio and $98.2 billion in the Wholesale credit portfolio.

(d)At ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of ~~$362~~$215 million and ~~$623 million, respectively, and real estate owned (“REO”) insured by U.S. government agencies of $9 million and $5~~$302 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

~~(d)~~

~~At September 30, 2022 and December 31, 2021,~~

The following table provides information on Firmwide nonaccrual loans ~~excluded $85 million and $633 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA.~~to total loans.

~~(e)Prior-period amount has been revised to conform with the current presentation.~~


(in millions, except ratios)	June 30, 2023			Dec 31, 2022

Total nonaccrual loans	$	7,273		$	6,720
Total loans	1,300,069			1,135,647
Firmwide nonaccrual loans to total loans outstanding	0.56		%	0.59		%

The following table provides information about the Firm’s net charge-offs and recoveries.


(in millions, except ratios)	(in millions, except ratios)	Three months ended September 30,						Nine months ended September 30,						(in millions, except ratios)	Three months ended June 30,						Six months ended June 30,
		2022			2021			2022			2021				2023			2022			2023			2022
Net charge-offs	Net charge-offs	$	727		$	524		$	1,966		$	2,315		Net charge-offs	$	1,411		$	657		$	2,548		$	1,239
Average retained loans	Average retained loans	1,059,962			968,369			1,033,586			958,260			Average retained loans	1,194,044			1,035,933			1,138,550			1,020,180
Net charge-off rates	Net charge-off rates	0.27		%	0.21		%	0.25		%	0.32		%	Net charge-off rates	0.47		%	0.25		%	0.45		%	0.24		%

5864

CONSUMER CREDIT PORTFOLIO

The Firm’s retained consumer portfolio consists primarily of loans and lending-related commitments for residential real estate, ~~loans,~~ credit card, ~~loans,~~ scored auto and business ~~banking~~banking. The consumer credit portfolio also includes certain loans ~~as well as~~and lending-related commitments associated ~~lending-related commitments.~~with the First Republic acquisition, primarily in residential real estate. The Firm’s focus is on serving primarily the prime segment of the consumer credit market. Refer to Note 1112 of this Form 10-Q; and Consumer Credit Portfolio on pages ~~110-116~~110-115 and Note 12 of JPMorgan Chase's ~~2021~~2022 Form 10-K for further information on consumer loans, as well as the Firm’s nonaccrual and charge-off accounting policies. Refer to Note 2224 of this Form 10-Q and Note 28 of JPMorgan Chase's ~~2021~~2022 Form 10-K for further information on lending-related commitments.

The following tables present consumer credit-related information with respect to the scored credit portfolios held in CCB, AWM, CIB and Corporate.


Consumer credit portfolio	Consumer credit portfolio									Consumer credit portfolio
(in millions)	(in millions)	Credit exposure				Nonaccrual loans(j)(k)(l)				(in millions)	Credit exposure					Nonaccrual loans((j)(k)(l)
		Sep 30, 2022		Dec 31, 2021		Sep 30, 2022		Dec 31, 2021			Jun 30, 2023			Dec 31, 2022		Jun 30, 2023		Dec 31, 2022
Consumer, excluding credit card	Consumer, excluding credit card									Consumer, excluding credit card
Residential real estate(a)	Residential real estate(a)	$	237,771	$	224,795	$	3,797	$	4,759	Residential real estate(a)	$	328,010		$	237,561	$	3,641	$	3,745
Auto and other~~(d)~~(c)	Auto and other~~(d)~~(c)	63,632		70,761		120		119		Auto and other~~(d)~~(c)	68,185			63,192		143		129
Total loans – retained	Total loans – retained	301,403		295,556		3,917		4,878		Total loans – retained	396,195			300,753		3,784		3,874
Loans held-for-sale	Loans held-for-sale	682		1,287		42		—		Loans held-for-sale	549			618		71		28
Loans at fair value~~(e)~~(d)	Loans at fair value~~(e)~~(d)	11,711		26,463		419		472		Loans at fair value~~(e)~~(d)	11,460			10,004		410		423
Total consumer, excluding credit card loans	Total consumer, excluding credit card loans	313,796		323,306		4,378		5,350		Total consumer, excluding credit card loans	408,204			311,375		4,265		4,325
Lending-related commitments~~(f)~~(e)	Lending-related commitments~~(f)~~(e)	34,868		45,334						Lending-related commitments~~(f)~~(e)	50,846			33,518
Total consumer exposure, excluding credit card	Total consumer exposure, excluding credit card	348,664		368,640						Total consumer exposure, excluding credit card	459,050		(i)	344,893
Credit card	Credit card									Credit card
Loans retained~~(g)~~(f)	Loans retained~~(g)~~(f)	170,462		154,296		NA		NA		Loans retained~~(g)~~(f)	191,348			185,175		NA		NA

Total credit card loans	Total credit card loans	170,462		154,296		NA		NA		Total credit card loans	191,348			185,175		NA		NA
Lending-related commitments~~(h)~~(g)	Lending-related commitments~~(h)~~(g)	798,855		730,534						Lending-related commitments~~(h)~~(g)	881,485			821,284
Total credit card exposure~~(h)~~	Total credit card exposure~~(h)~~	969,317		884,830						Total credit card exposure~~(h)~~	1,072,833			1,006,459
Total consumer credit portfolio~~(h)~~	Total consumer credit portfolio~~(h)~~	$	1,317,981	$	1,253,470	$	4,378	$	5,350	Total consumer credit portfolio~~(h)~~	$	1,531,883		$	1,351,352	$	4,265	$	4,325
Credit-related notes used in credit portfolio management activities~~(i)~~(h)	Credit-related notes used in credit portfolio management activities~~(i)~~(h)	$	(1,370)	$	(2,028)					Credit-related notes used in credit portfolio management activities~~(i)~~(h)	$	(985)		$	(1,187)


		Three months ended September 30,													Three months ended June 30,
(in millions, except ratios)	(in millions, except ratios)	Net charge-offs/(recoveries)				Average loans - retained				Net charge-off/(recovery) rate(m)				(in millions, except ratios)	Net charge-offs/(recoveries)				Average loans - retained				Net charge-off/(recovery) rate(m)
		2022		2021		2022		2021		2022		2021			2023		2022		2023		2022		2023		2022
Consumer, excluding credit card	Consumer, excluding credit card													Consumer, excluding credit card
Residential real estate	Residential real estate	$	(59)	$	(74)	$	237,261	$	219,928	(0.10)	%	(0.13)	%	Residential real estate	$	(25)	$	(67)	$	293,073	$	232,770	(0.03)	%	(0.12)	%
Auto and other	Auto and other	135		66		64,086		78,091		0.84		0.34		Auto and other	147		94		66,470		66,879		0.89		0.56
Total consumer, excluding credit card - retained	Total consumer, excluding credit card - retained	76		(8)		301,347		298,019		0.10		(0.01)		Total consumer, excluding credit card - retained	122		27		359,543		299,649		0.14		0.04
Credit card - retained	Credit card - retained	592		495		168,125		141,371		1.40		1.39		Credit card - retained	1,124		580		187,027		158,434		2.41		1.47
Total consumer - retained	Total consumer - retained	$	668	$	487	$	469,472	$	439,390	0.56	%	0.44	%	Total consumer - retained	$	1,246	$	607	$	546,570	$	458,083	0.91	%	0.53	%


		Nine months ended September 30,													Six months ended June 30,
(in millions, except ratios)	(in millions, except ratios)	Net charge-offs/(recoveries)				Average loans - retained				Net charge-off/(recovery) rate(m)				(in millions, except ratios)	Net charge-offs/(recoveries)				Average loans - retained				Net charge-off/(recovery) rate(m)
		2022		2021		2022		2021		2022		2021			2023		2022		2023		2022		2023		2022
Consumer, excluding credit card	Consumer, excluding credit card													Consumer, excluding credit card
Residential real estate	Residential real estate	$	(193)	$	(205)	$	232,028	$	220,142	(0.11)	%	(0.12)	%	Residential real estate	$	(45)	$	(134)	$	265,082	$	229,369	(0.03)	%	(0.12)	%
Auto and other	Auto and other	342		187		66,812		79,478		0.68		0.31		Auto and other	299		207		65,145		68,197		0.93		0.61
Total consumer, excluding credit card - retained	Total consumer, excluding credit card - retained	149		(18)		298,840		299,620		0.07		(0.01)		Total consumer, excluding credit card - retained	254		73		330,227		297,566		0.16		0.05
Credit card - retained	Credit card - retained	1,678		2,233		158,721		137,012		1.41		2.18		Credit card - retained	2,046		1,086		183,757		153,941		2.25		1.42
Total consumer - retained	Total consumer - retained	$	1,827	$	2,215	$	457,561	$	436,632	0.53	%	0.68	%	Total consumer - retained	$	2,300	$	1,159	$	513,984	$	451,507	0.90	%	0.52	%

(a)Includes scored mortgage and home equity loans held in CCB and ~~AWM, and scored mortgage loans held in Corporate.~~AWM.

(b)At ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, excluded operating lease assets of ~~$12.9~~$10.9 billion and ~~$17.1~~$12.0 billion, respectively. These operating lease assets are included in other assets on the Firm’s Consolidated balance sheets. Refer to Note 1617 for further information.

(c)Includes scored auto and business banking loans, and overdrafts.

(d)At September 30, 2022 and December 31, 2021, included $791 million and $5.4 billion of loans, respectively, in Business Banking under the PPP. The Firm does not expect to realize material credit losses on PPP loans because the loans are guaranteed by the SBA. Refer to Credit Portfolio on page 109 of JPMorgan Chase's 2021 Form 10-K for a further discussion of the PPP.

~~(e)~~Includes scored mortgage loans held in CCB and CIB, and other consumer unsecured loans in CIB.

~~(f)~~(e)Credit card, home equity and certain business banking lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. For credit card commitments, and if certain conditions are met, home equity commitments and certain business banking commitments, the Firm can reduce or cancel these lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. Refer to Note 2224 for further information.

~~(g)~~(f)Includes billed interest and fees.

~~(h)~~(g)Also includes commercial card lending-related commitments primarily in CB and CIB.

~~(i)~~

(h)Represents the notional amount of protection obtained through the issuance of credit-related notes that reference certain pools of residential real estate and auto loans in the retained consumer portfolio.

(i)Included credit exposure of $104.6 billion associated with the First Republic acquisition consisting of $101.5 billion in residential real estate and $3.1 billion in auto and other.

(j)At ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of ~~$362~~$215 million and ~~$623~~$302 million, respectively. These amounts have been excluded from nonaccrual loans 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.

(k)Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic.

(l)At ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, nonaccrual loans excluded ~~$57~~$39 million and ~~$506~~$101 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA.

(m)Average consumer loans held-for-sale and loans at fair value were ~~$14.9~~$13.3 billion and ~~$35.2~~$18.2 billion for the three months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, and ~~were $19.0~~$12.4 billion and ~~$27.9~~$21.0 billion for the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively. These amounts were excluded when calculating net charge-off/(recovery) rates.

Maturities and sensitivity to changes in interest rates

The table below sets forth loan maturities by scheduled repayments, by class of loan and the distribution between fixed and floating interest rates based on the stated terms of the loan agreements. Refer to Consumer Credit Portfolio on pages 110-115 of JPMorgan Chase's 2022 Form 10-K for further information.


June 30, 2023 (in millions)	Within 1 year(d)			1-5 years		5-15 years		After 15 years		Total
Consumer, excluding credit card
Residential real estate	$	16,797		$	27,570	$	109,586	$	183,944	$	337,897
Auto and other	19,826		(e)	45,847		4,629		5		70,307
Total consumer, excluding credit card loans(a)	$	36,623		$	73,417	$	114,215	$	183,949	$	408,204
Total credit card loans	$	190,780		$	568	$	—	$	—	$	191,348
Total consumer loans	$	227,403		$	73,985	$	114,215	$	183,949	$	599,552

Loans due after one year at fixed interest rates
Residential real estate(b)				$	20,332	$	59,618	$	91,537
Auto and other				45,771		3,678		5
Credit card				568		—		—

Loans due after one year at variable interest rates
Residential real estate(c)				$	7,238	$	49,968	$	92,407
Auto and other				76		951		—

Total consumer loans				$	73,985	$	114,215	$	183,949

(a)Included $3.6 billion, $4.7 billion, $27.3 billion, and $58.3 billion of loans within 1 year, 1-5 years, 5-15 years, and after 15 years, respectively, associated with the First Republic acquisition.

(b)Included $3.0 billion, $8.8 billion, and $15.6 billion in 1-5 years, 5-15 years, and after 15 years, respectively, associated with the First Republic acquisition.

(c)Included $1.7 billion, $18.6 billion, and $42.7 billion in 1-5 years, 5-15 years, and after 15 years, respectively, associated with the First Republic acquisition.

(d)Includes loans held-for-sale and loans at fair value.

(e)Includes overdrafts.

6066

Consumer, excluding credit card

Portfolio analysis

Loans ~~decreased from~~increased compared to December 31, ~~2021~~2022 driven by residential real estate loans ~~at fair value~~associated with the First Republic acquisition and ~~auto and other loans, largely offset by~~ higher ~~retained residential real estate~~auto loans.

Residential real estate: The residential real estate portfolio, including loans held-for-sale and loans at fair value, predominantly consists of prime mortgage loans and home equity lines of credit.

Retained loans increased compared to December 31, ~~2021,~~2022, reflecting ~~originations, net of paydowns.~~residential real estate loans associated with the First Republic acquisition. Retained nonaccrual loans decreased ~~from~~compared to December 31, ~~2021 reflecting improved credit performance and loan sales.~~2022. Net recoveries were lower for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022 when~~2023 compared to the same periods in the prior year driven by lower prepayments ~~in the current year~~ due to higher interest rates.

Loans at fair value decreased from December 31, ~~2021, as warehouse loan~~2022, driven by a decrease in CIB due to sales outpacing purchases largely offset by an increase in Home Lending as originations outpaced ~~originations due to higher interest rates and lower~~warehouse loan ~~purchase activity in CIB.~~sales. Nonaccrual loans at fair value ~~decreased from~~were relatively flat compared to December 31, ~~2021~~2022.

At June 30, 2023 and December 31, 2022, the carrying value of interest-only residential mortgage loans was $90.0 billion and $36.3 billion, respectively. The increase was driven by ~~net~~the impact of the First Republic acquisition. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers. The credit performance of this portfolio ~~activity in CIB.~~is comparable with the performance of the broader prime mortgage portfolio and there were no charge-offs associated with the First Republic acquisition.

The carrying value of home equity lines of credit outstanding was ~~$16.3~~$16.9 billion at ~~September~~June 30, ~~2022. This amount~~2023, which included ~~$5.3~~$2.6 billion associated with the First Republic acquisition. The carrying value of home equity lines of credit outstanding included $4.6 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified and ~~$5.2~~$4.7 billion of interest-only balloon HELOCs, which primarily mature after 2030. The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are exhibiting a material deterioration in their credit risk profile.

At September 30, 2022 and December 31, 2021, the carrying value of interest-only residential mortgage loans were $35.7 billion and $30.0 billion, respectively. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers, predominantly in AWM. The interest-only residential mortgage loan portfolio reflected net recoveries for the three and nine months ended September 30, 2022. The credit performance of this portfolio is comparable with the performance of the broader prime mortgage portfolio.

The following table provides a summary of the Firm’s residential mortgage portfolio insured and/or guaranteed by U.S. government agencies, predominantly loans held-for-sale and loans at fair value. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses.


(in millions)	(in millions)	September 30, 2022		December 31, 2021		(in millions)	June 30, 2023		December 31, 2022
Current	Current	$	670	$	689	Current	$	614	$	659
30-89 days past due	30-89 days past due	131		135		30-89 days past due	112		136
90 or more days past due	90 or more days past due	362		623		90 or more days past due	215		302
Total government guaranteed loans	Total government guaranteed loans	$	1,163	$	1,447	Total government guaranteed loans	$	941	$	1,097

Geographic composition and current estimated loan-to-value ratio of residential real estate loans

At June 30, 2023, $229.8 billion, or 70% of the total retained residential real estate loan portfolio, was concentrated in California, New York, Florida, Texas and Massachusetts, compared with $147.8 billion, or 62% at December 31, 2022.

Refer to Note 1112 for information on the geographic composition and current estimated LTVs of the Firm’s residential real estate loans.

Modified residential real estate loans

~~The following table presents information relating to modified retained~~For the three and six months ended June 30, 2023, residential real estate FDMs were $35 million and $75 million, respectively. In addition to FDMs, the Firm also had $33 million and $48 million of loans subject to trial modification where the terms of the loans have not been permanently modified, as well as $3 million and $5 million of loans subject to discharge under Chapter 7 bankruptcy proceedings ("Chapter 7 loans") for ~~which concessions have been granted~~the three and six months ended June 30, 2023, respectively. The changes to ~~borrowers experiencing financial difficulty, which include both~~the TDR accounting guidance eliminated the TDR reasonably expected and concession assessment criteria. Accordingly, trial modifications and Chapter 7 loans were considered TDRs, ~~and modified purchased credit deteriorated (“PCD”) loans~~but not ~~accounted for as TDRs. The following table does not include loans with short-term or other insignificant modifications that are not considered concessions and, therefore, are not TDRs.~~FDMs. Refer to Note 111 and Note 12 for further information.

For the three and six months ended June 30, 2022, residential real estate TDRs were $115 million and $233 million, respectively. Refer to Note 12 for further information on ~~modifications for the three and nine months ended September 30, 2022 and 2021.~~

(in millions) September 30, 2022 December 31, 2021
Retained loans $ 11,766 $ 13,251
Nonaccrual retained loans(a)
$ 3,317 $ 3,938
TDRs in prior periods.

~~(a)~~

At both September 30, 2022 and December 31, 2021, nonaccrual loans included $2.7 billion of TDRs for which the borrowers were less than 90 days past due. Refer to Note 12 of JPMorgan Chase’s 2021 Form 10-K for additional information about loans modified in a TDR that are on nonaccrual status.

6167

Auto and other: The auto and other loan portfolio, including loans at fair value ~~predominantly~~ consists of prime-quality scored auto and business banking loans, ~~as well as~~other consumer unsecured loans, and overdrafts. The portfolio ~~decreased~~increased when compared ~~with~~to December 31, ~~2021 predominantly~~2022 due to ~~PPP loan forgiveness~~originations of scored Auto loans and an increase in ~~business banking and paydowns predominantly~~other consumer unsecured fair value option loans associated with the First Republic acquisition, largely offset by ~~loan originations in the scored auto portfolio.~~paydowns. Net charge-offs increased for the three and six months ended ~~September~~June 30, ~~2022~~ ~~when~~2023 compared to the same ~~period~~periods in the prior year due to higher ~~overdraft~~scored Auto charge-offs as delinquency levels normalized and ~~scored auto charge-offs. Net charge-offs for the~~ ~~nine months endedSeptember 30, 2022~~ ~~increased when compared to the same period in the prior year due to higher overdraft and scored auto charge-offs, partially offset by lower scored business banking charge-offs.~~vehicle valuations declined. The scored ~~auto portfolio~~Auto net charge-off rates were ~~0.27%~~0.41% and ~~0.03%~~0.12% for the three months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, and ~~0.19%~~0.43% and ~~0.01%~~0.15% for the ~~nine~~six months ended ~~September~~June 30, 2023 and 2022, ~~and 2021, respectively, as net charge-offs benefited from government stimulus and payment assistance programs in the prior year.~~respectively.

Nonperforming assets

The following table presents information as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, about consumer, excluding credit card, nonperforming assets.


Nonperforming assets(a)	Nonperforming assets(a)					Nonperforming assets(a)
(in millions)	(in millions)	September 30, 2022		December 31, 2021		(in millions)	June 30, 2023		December 31, 2022
Nonaccrual loans	Nonaccrual loans					Nonaccrual loans
Residential real estate(b)	Residential real estate(b)	$	4,258	$	5,231	Residential real estate(b)	$	4,122	$	4,196
Auto and other(c)	Auto and other(c)	120		119		Auto and other(c)	143		129
Total nonaccrual loans	Total nonaccrual loans	4,378		5,350		Total nonaccrual loans	4,265		4,325
Assets acquired in loan satisfactions	Assets acquired in loan satisfactions					Assets acquired in loan satisfactions
Real estate owned	Real estate owned	118		112		Real estate owned	126		129
Other	Other	31		22		Other	36		28
Total assets acquired in loan satisfactions	Total assets acquired in loan satisfactions	149		134		Total assets acquired in loan satisfactions	162		157
Total nonperforming assets	Total nonperforming assets	$	4,527	$	5,484	Total nonperforming assets	$	4,427	$	4,482

(a)At ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of ~~$362~~$215 million and ~~$623 million, respectively, and REO insured by U.S. government agencies of $9 million and $5~~$302 million, respectively. These amounts have been excluded based upon the government guarantee.

(b)Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic.

(c)At ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, nonaccrual loans excluded ~~$57~~$39 million and ~~$506~~$101 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA.

Nonaccrual loans

The following table presents changes in consumer, excluding credit card, nonaccrual loans for the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022.


Nonaccrual loan activity	Nonaccrual loan activity					Nonaccrual loan activity
Nine months ended September 30, (in millions)		2022		2021
Six months ended June 30, (in millions)						Six months ended June 30, (in millions)	2023		2022
Beginning balance	Beginning balance	$	5,350	$	6,467	Beginning balance	$	4,325	$	5,350
Additions	Additions	1,648		2,032		Additions	1,290		1,149
Reductions:	Reductions:					Reductions:
Principal payments and other(a)	Principal payments and other(a)	1,209		1,625		Principal payments and other(a)	486		789
Charge-offs	Charge-offs	176		167		Charge-offs	202		117
Returned to performing status	Returned to performing status	1,099		1,295		Returned to performing status	573		824
Foreclosures and other liquidations	Foreclosures and other liquidations	136		61		Foreclosures and other liquidations	89		97
Total reductions	Total reductions	2,620		3,148		Total reductions	1,350		1,827
Net changes	Net changes	(972)		(1,116)		Net changes	(60)		(678)
Ending balance	Ending balance	$	4,378	$	5,351	Ending balance	$	4,265	$	4,672

(a)Other reductions include loan sales.

Refer to Note 1112 for further information about the consumer credit portfolio, including information about delinquencies, other credit quality indicators, loan modifications and loans that were in the process of active or suspended foreclosure.

~~Purchased credit deteriorated (“PCD”) loans~~

~~The following tables provide credit-related information for PCD loans which are reported in residential real estate.~~

(in millions, except ratios) September 30,
2022 December 31,
2021
Loan delinquency(a)
Current $ 11,252 $ 12,746
30-149 days past due 313 331
150 or more days past due 289 664
Total PCD loans $ 11,854 $ 13,741
% of 30+ days past due to total retained PCD loans 5.08 % 7.24 %
Nonaccrual loans $ 1,203 $ 1,616

(in millions, except ratios) Three months ended September 30, Nine months ended September 30,
2022 2021 2022 2021
Net charge-offs/(recoveries) $ (3) $ 1 $ (9) $ 17
Net charge-off/(recovery) rate (0.10) % 0.03 % (0.09) % 0.14 %

~~(a)~~At September 30, 2022 and December 31, 2021, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent.

6268

Credit card

Total credit card loans increased from December 31, ~~2021 largely driven by~~2022 reflecting growth infrom new accounts and revolving balances ~~on higher consumer spending~~which continued to normalize to pre-pandemic levels. The June 30, 2023 30+ and ~~net new originations.~~ ~~The September 30,~~90+ day delinquency rates of 1.70% and 0.84%, respectively, increased compared to the December 31, 2022 30+ and 90+ day delinquency rates of ~~1.23%~~1.45% and ~~0.57%,~~0.68% respectively, ~~increased compared to the December 31, 2021 30+~~ and ~~90+ day delinquency rates of 1.04% and 0.50% but remain below pre-pandemic levels. Net~~net charge-offs increased for the three and six months ended ~~September~~June 30, ~~2022~~2023 compared ~~with~~to the same ~~period~~periods in the prior year ~~driven by loan growth.~~ ~~Net charge-offs decreased for the nine months ended September 30, 2022 compared with the same period in the prior year~~. ~~Delinquency and net charge-off rates continue to benefit from the ongoing financial strength of U.S. consumers.~~ ~~However, median deposit balances continue to decline, impacted by the growth in consumer spending~~. as 30+ day delinquencies have normalized.

Consistent with the Firm’s policy, all credit card loans typically remain on accrual status until charged off. However, the Firm’s allowance for loan losses includes the estimated uncollectible portion of accrued and billed interest and fee income. Refer to Note 1112 for further information about this portfolio, including information about delinquencies.

Geographic and FICO composition of credit card loans

Refer to Note 1112 for information on the geographic and FICO composition of the Firm’s credit card loans.

Modifications of credit card loans

~~At September~~For the three and six months ended June 30, 2023, credit card FDMs were $181 million and $326 million, respectively. In addition to FDMs, the Firm also had $26 million of loans subject to trial modification where the terms of the loans have not been permanently modified for both the three and six months ended June 30, 2023. The changes to the TDR accounting guidance eliminated the TDR reasonably expected and concession assessment criteria. Accordingly, trial modifications were considered TDRs, but not FDMs.

For the three and six months ended June 30, 2022, ~~the Firm had $794 million of~~ credit card ~~loans outstanding that have been modified in~~ TDRs ~~which does not include loans with short-term or other insignificant modifications that are not considered TDRs, compared to $1.0 billion at December 31, 2021.~~ were $81 million and $163 million, respectively.

Refer to Note 111 and Note 12 for ~~additional information about loan modification programs to borrowers.~~further information.

6369

WHOLESALE CREDIT PORTFOLIO

In its wholesale businesses, the Firm is exposed to credit risk primarily through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through various operating services (such as cash management and clearing activities), securities financing activities and cash placed with banks. A portion of the loans originated or acquired by the Firm’s wholesale businesses is generally retained on the balance sheet. The Firm distributes a significant percentage of the loans that it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk. The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure inclusive of collateral where applicable, and of industry, product and client concentrations. Refer to the industry discussion on pages ~~66-69~~72-75 for further information.

The Firm’s wholesale credit portfolio includes exposure held in CIB, CB, AWM and Corporate, as well as risk-rated ~~exposures held in CCB, including business banking~~BWM and auto dealer exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for ~~credit~~loan losses. The Firm continues to convert certain operations, and to integrate clients, products and services, associated with the First Republic acquisition to align with the Firm’s businesses and operations. Accordingly, reporting classifications and internal risk rating profiles in the wholesale portfolio may change in future periods. Refer to Business Developments on page 9 for additional information.

~~In the nine months ended September 30, 2022, credit continued to perform well with charge-offs remaining low.~~ As of ~~September~~June 30, ~~2022,~~2023, the ~~decrease~~increase in nonperforming exposure was driven by ~~a decline~~loans, resulting from client-specific downgrades in lending related commitments and loans, predominantly in CIB and AWM, as a result of net portfolio activity and upgrades, largely offset by downgrades including downgrades to certain Russia and Russia-associated clients in the first quarter of 2022. Refer to Business Developments on ~~page 9~~ ~~and Country Risk on~~ ~~pages 82-83~~ ~~for additional information.~~

~~As of September 30, 2022, retained loans increased $35.9 billion driven by~~ CB and ~~CIB, including increased revolver utilization,~~AWM, partially offset by a ~~decline~~reduction in ~~AWM.~~lending-related commitments. For the six months ended June 30, 2023, wholesale charge-offs remained low, despite an increase in charge-offs in the second quarter of 2023 concentrated in Office real estate.

As of June 30, 2023, retained loans increased $64.5 billion predominantly driven by the impact of the First Republic acquisition. Lending-related commitments ~~decreased $13.5~~increased $69.1 billion driven by the impact of the First Republic acquisition, and net portfolio activity in CIB and CB, including ~~a decrease~~an increase in held-for-sale positions in the bridge financing ~~portfolio, partially offset by net portfolio activity in AWM.~~portfolio.


Wholesale credit portfolio	Wholesale credit portfolio										Wholesale credit portfolio
		Credit exposure					Nonperforming					Credit exposure					Nonperforming
(in millions)	(in millions)	Sep 30, 2022		Dec 31, 2021			Sep 30, 2022		Dec 31, 2021		(in millions)	Jun 30, 2023			Dec 31, 2022		Jun 30, 2023		Dec 31, 2022
Loans retained	Loans retained	$	596,208	$	560,354		$	1,882	$	2,054	Loans retained	$	668,145		$	603,670	$	2,593	$	1,963
Loans held-for-sale	Loans held-for-sale	2,391		7,401			29		48		Loans held-for-sale	5,043			3,352		48		26
Loans at fair value	Loans at fair value	29,776		32,357			385		343		Loans at fair value	27,329			32,075		367		406
Loans	Loans	628,375		600,112			2,296		2,445		Loans	700,517			639,097		3,008		2,395
Derivative receivables	Derivative receivables	92,534		57,081			339		316		Derivative receivables	64,217			70,880		286		296
Receivables from customers(a)	Receivables from customers(a)	54,921		59,645			—		—		Receivables from customers(a)	42,741			49,257		—		—
Total wholesale credit-related assets	Total wholesale credit-related assets	775,830		716,838			2,635		2,761		Total wholesale credit-related assets	807,475			759,234		3,294		2,691
Assets acquired in loan satisfactions	Assets acquired in loan satisfactions										Assets acquired in loan satisfactions
Real estate owned	Real estate owned	NA		NA			81		101		Real estate owned	—			NA		117		74
Other	Other	NA		NA			—		—		Other	—			NA		—		—
Total assets acquired in loan satisfactions	Total assets acquired in loan satisfactions	NA		NA			81		101		Total assets acquired in loan satisfactions	—			NA		117		74
Lending-related commitments	Lending-related commitments	472,950		486,445			470		764		Lending-related commitments	541,089			471,980		332		455
Total wholesale credit portfolio	Total wholesale credit portfolio	$	1,248,780	$	1,203,283		$	3,186	$	3,626	Total wholesale credit portfolio	$	1,348,564	(c)	$	1,231,214	$	3,743	$	3,220
Credit derivatives and credit-related notes used in credit portfolio management activities(b)	Credit derivatives and credit-related notes used in credit portfolio management activities(b)	$	(24,276)	$	(18,711)	(c)	$	—	$	—	Credit derivatives and credit-related notes used in credit portfolio management activities(b)	$	(31,105)		$	(18,143)	$	—	$	—
Liquid securities and other cash collateral held against derivatives	Liquid securities and other cash collateral held against derivatives	(25,068)		(10,102)			NA		NA		Liquid securities and other cash collateral held against derivatives	(23,282)			(23,014)		—		NA

(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. Refer to Credit derivatives on page 7279 and Note 45 for additional information.

(c)~~Prior-period amount has been revised to conform~~Included credit exposure of $98.2 billion associated with the ~~current presentation.~~First Republic acquisition.

6470

Wholesale credit exposure – maturity and ratings profile

The following tables present the maturity and internal risk ~~ratings~~rating profiles of the wholesale credit portfolio as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021.~~2022. The Firm generally considers internal ratings with qualitative characteristics equivalent to BBB-/Baa3 or higher as investment grade, and takes into consideration collateral and structural support when determining the internal risk rating for each credit facility. Refer to Note 12 of JPMorgan Chase's ~~2021~~2022 Form 10-K for further information on internal risk ratings.


		Maturity profile(e)								Ratings profile									Maturity profile(d)								Ratings profile
		1 year or less		1 year through 5 years		After 5 years		Total		Investment-grade		Noninvestment-grade		Total		Total % of IG			1 year or less		1 year through 5 years		After 5 years		Total		Investment-grade		Noninvestment-grade		Total		Total % of IG
September 30, 2022 (in millions, except ratios)
June 30, 2023, (in millions, except ratios)																		June 30, 2023, (in millions, except ratios)	1 year or less		1 year through 5 years		After 5 years		Total		Investment-grade		Noninvestment-grade		Total		Total % of IG
Loans retained	Loans retained	$	213,399	$	242,119	$	140,690	$	596,208	$	423,292	$	172,916	$	596,208	71	%	Loans retained
Derivative receivables	Derivative receivables							92,534						92,534				Derivative receivables							64,217						64,217
Less: Liquid securities and other cash collateral held against derivatives	Less: Liquid securities and other cash collateral held against derivatives							(25,068)						(25,068)				Less: Liquid securities and other cash collateral held against derivatives							(23,282)						(23,282)
Total derivative receivables, net of collateral	Total derivative receivables, net of collateral	28,268		18,799		20,399		67,466		52,070		15,396		67,466		77		Total derivative receivables, net of collateral	12,198		11,089		17,648		40,935		32,682		8,253		40,935		80
Lending-related commitments	Lending-related commitments	110,035		339,705		23,210		472,950		329,043		143,907		472,950		70		Lending-related commitments	141,356		375,289		24,444		541,089		354,209		186,880		541,089		65
Subtotal	Subtotal	351,702		600,623		184,299		1,136,624		804,405		332,219		1,136,624		71		Subtotal	379,180		652,234		218,755		1,250,169		838,869		411,300		1,250,169		67
Loans held-for-sale and loans at fair value(a)	Loans held-for-sale and loans at fair value(a)							32,167						32,167				Loans held-for-sale and loans at fair value(a)							32,372						32,372
Receivables from customers	Receivables from customers							54,921						54,921				Receivables from customers							42,741						42,741
Total exposure – net of liquid securities and other cash collateral held against derivatives	Total exposure – net of liquid securities and other cash collateral held against derivatives							$	1,223,712					$	1,223,712			Total exposure – net of liquid securities and other cash collateral held against derivatives							$	1,325,282					$	1,325,282
Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)	Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)	$	(8,713)	$	(10,866)	$	(4,697)	$	(24,276)	$	(19,787)	$	(4,489)	$	(24,276)	82	%	Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)	$	(6,612)	$	(22,502)	$	(1,991)	$	(31,105)	$	(26,836)	$	(4,269)	$	(31,105)	86	%


		Maturity profile(e)								Ratings profile									Maturity profile(d)									Ratings profile
		1 year or less		1 year through 5 years		After 5 years		Total		Investment-grade		Noninvestment-grade		Total		Total % of IG			1 year or less		1 year through 5 years		After 5 years		Total			Investment-grade			Noninvestment-grade		Total			Total % of IG
December 31, 2021 (in millions, except ratios)
December 31, 2022 (in millions, except ratios)																		December 31, 2022 (in millions, except ratios)			1 year or less		1 year through 5 years		After 5 years		Total			Investment-grade			Noninvestment-grade		Total			Total % of IG
Loans retained	Loans retained	$	214,064	$	218,176	$	128,114	$	560,354	$	410,011	$	150,343	$	560,354	73	%	Loans retained
Derivative receivables	Derivative receivables							57,081						57,081				Derivative receivables							70,880								70,880
Less: Liquid securities and other cash collateral held against derivatives	Less: Liquid securities and other cash collateral held against derivatives							(10,102)						(10,102)				Less: Liquid securities and other cash collateral held against derivatives							(23,014)								(23,014)
Total derivative receivables, net of collateral	Total derivative receivables, net of collateral	13,648		12,814		20,517		46,979		31,934		15,045		46,979		68		Total derivative receivables, net of collateral	13,508		14,880		19,478		47,866			36,231			11,635		47,866			76
Lending-related commitments	Lending-related commitments	120,929		340,308		25,208		486,445		331,116		155,329		486,445		68		Lending-related commitments	101,083		347,456		23,441		471,980			327,168			144,812		471,980			69
Subtotal	Subtotal	348,641		571,298		173,839		1,093,778		773,061		320,717		1,093,778		71		Subtotal	319,352		616,232		187,932		1,123,516			788,811			334,705		1,123,516			70
Loans held-for-sale and loans at fair value(a)	Loans held-for-sale and loans at fair value(a)							39,758						39,758				Loans held-for-sale and loans at fair value(a)							35,427								35,427
Receivables from customers	Receivables from customers							59,645						59,645				Receivables from customers							49,257								49,257
Total exposure – net of liquid securities and other cash collateral held against derivatives	Total exposure – net of liquid securities and other cash collateral held against derivatives							$	1,193,181					$	1,193,181			Total exposure – net of liquid securities and other cash collateral held against derivatives							$	1,208,200							$	1,208,200
Credit derivatives and credit-related notes used in credit portfolio management activities~~(d)~~(c)	Credit derivatives and credit-related notes used in credit portfolio management activities~~(d)~~(c)	$	(7,472)	$	(9,750)	$	(1,489)	$	(18,711)	$	(15,012)	$	(3,699)	$	(18,711)	80	%	Credit derivatives and credit-related notes used in credit portfolio management activities~~(d)~~(c)	$	(2,817)	$	(13,530)	$	(1,796)	$	(18,143)		$	(15,115)		$	(3,028)	$	(18,143)		83	%

(a)Loans held-for-sale are primarily related to syndicated loans and loans transferred from the retained portfolio.

(b)These derivatives do not qualify for hedge accounting under U.S. GAAP.

(c)The notional amounts are presented on a net basis by underlying reference entity and the ratings profile shown is based on the ratings of the reference entity on which protection has been purchased. Predominantly all of the credit derivatives entered into by the Firm where it has purchased protection used in credit portfolio management activities are executed with investment-grade counterparties. In addition, the Firm obtains credit protection against certain loans in the retained loan portfolio through the issuance of credit-related notes.

(d)~~Prior-period amounts have been revised to conform with the current presentation.~~

~~(e)~~The maturity profile of retained loans, lending-related commitments and derivative receivables is generally based on remaining contractual maturity. Derivative contracts that are in a receivable position ~~at September~~as of June 30, ~~2022,~~2023, may become payable prior to maturity based on their cash flow profile or changes in market conditions.

6571

Wholesale credit exposure – industry exposures

The Firm focuses on the management and diversification of its industry exposures, and pays particular attention to industries with actual or potential credit concerns.

Exposures deemed criticized align with the U.S. banking regulators’ definition of criticized exposures, which consist of the special mention, substandard and doubtful categories. Total criticized exposure, excluding loans held-for-sale and loans at fair value, was ~~$31.0~~$35.0 billion and ~~$38.2~~$31.3 billion ~~at September~~as of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, representing approximately ~~2.7%~~2.8% and ~~3.5%~~2.7% of total wholesale credit exposure, ~~respectively. C~~respectively~~riticized~~. Criticized exposure ~~decreased~~increased, driven by ~~net portfolio activity~~client-specific downgrades largely in Real Estate, Consumer and ~~client-specific upgrades,~~Retail, Technology, Media & Telecommunications, and Healthcare, as well as exposures associated with the First Republic acquisition, partially offset by client-specific ~~downgrades, including declines in Consumer & Retail, Real Estate and Technology, Media & Telecommunications.~~upgrades. Of the ~~$31.0~~$35.0 billion of criticized exposure at ~~September~~June 30, ~~2022,~~2023, approximately half was undrawn and ~~$28.3~~$31.8 billion was performing.

The table below summarizes by industry the Firm’s exposures as of ~~September~~June 30, ~~2022,~~2023 and December 31, ~~2021.~~2022. The industry of risk category is generally based on the client or counterparty’s primary business activity. Refer to Note 4 ~~of JPMorgan Chase's 2021 Form 10-K~~ for additional information on industry concentrations.


Wholesale credit exposure – industries(a)	Wholesale credit exposure – industries(a)																			Wholesale credit exposure – industries(a)
												Selected metrics																			Selected metrics
												30 days or more past due and accruing loans		Net charge-offs/ (recoveries)		Credit derivative hedges and credit-related notes(h)		Liquid securities and other cash collateral held against derivative receivables													30 days or more past due and accruing loans		Net charge-offs/ (recoveries)		Credit derivative hedges and credit-related notes(i)		Liquid securities and other cash collateral held against derivative receivables
						Noninvestment-grade																			Noninvestment-grade
As of or for the nine months ended		Credit exposure(f)(g)		Investment- grade		Noncriticized		Criticized performing		Criticized nonperforming
September 30, 2022
As of or for the six months ended																				As of or for the six months ended	Credit exposure(f)(g)(h)		Investment- grade		Noncriticized		Criticized performing		Criticized nonperforming
June 30, 2023																				June 30, 2023											30 days or more past due and accruing loans		Net charge-offs/ (recoveries)		Credit derivative hedges and credit-related notes(i)		Liquid securities and other cash collateral held against derivative receivables
(in millions)	(in millions)	Credit exposure(f)(g)		Investment- grade		Noncriticized		Criticized performing		Criticized nonperforming		30 days or more past due and accruing loans		Net charge-offs/ (recoveries)		Credit derivative hedges and credit-related notes(h)		Liquid securities and other cash collateral held against derivative receivables		(in millions)
Real Estate	Real Estate																			Real Estate	$	206,912	$	151,293	$	50,328	$	4,715	$	576
Individuals and Individual Entities(b)	Individuals and Individual Entities(b)																			Individuals and Individual Entities(b)	141,178		115,505		24,954		210		509
Asset Managers																				Asset Managers	138,143		87,284		50,713		138		8
Consumer & Retail	Consumer & Retail	118,893		61,434		50,208		6,720		531										Consumer & Retail	125,935		62,890		54,980		7,511		554		416		59		(3,618)		—
Asset Managers		107,519		89,284		18,221		8		6		222		(1)		—		(12,253)
Industrials																				Industrials	77,206		43,489		30,310		3,242		165		362		16		(2,072)		(3)
Technology, Media & Telecommunications	Technology, Media & Telecommunications	76,419		43,356		25,917		6,877		269		47		38		(1,402)		—		Technology, Media & Telecommunications	76,444		41,401		27,127		7,708		208		125		78		(3,396)		—
Industrials		70,480		38,533		29,156		2,635		156		263		32		(666)		(2)
Healthcare	Healthcare	58,215		41,088		15,430		1,602		95		59		24		(636)		(97)		Healthcare	65,547		43,569		19,435		2,140		403		292		13		(2,829)		(13)
Banks & Finance Cos	Banks & Finance Cos	57,425		33,021		23,328		1,047		29		214		—		(406)		(612)		Banks & Finance Cos	61,659		31,037		29,540		1,061		21		71		4		(470)		(1,123)
State & Municipal Govt(c)																				State & Municipal Govt(c)	37,157		33,372		3,560		222		3		7		—		(4)		—
Utilities																				Utilities	35,757		25,124		9,746		768		119		60		(2)		(1,989)		—
Oil & Gas	Oil & Gas	44,055		23,623		19,785		599		48		72		(1)		(513)		—		Oil & Gas	33,233		18,969		13,768		446		50		42		4		(1,384)		—
Utilities		35,226		25,699		8,374		1,002		151		11		21		(575)		—
Automotive	Automotive	35,116		25,503		9,030		459		124		74		—		(480)		—		Automotive	32,947		23,385		9,174		235		153		56		—		(623)		—
State & Municipal Govt(c)		34,804		33,987		687		123		7		7		—		(9)		(60)
Chemicals & Plastics																				Chemicals & Plastics	22,195		12,020		9,243		811		121		26		—		(835)		—
Insurance	Insurance	22,740		17,610		4,957		173		—		87		—		(198)		(7,871)		Insurance	21,874		15,513		6,062		299		—		14		—		(531)		(7,529)
Chemicals & Plastics		19,504		12,022		6,822		569		91		13		3		(167)		—
Central Govt	Central Govt	16,493		16,206		287		—		—		—		10		(5,015)		(484)		Central Govt	16,845		16,396		318		127		4		—		—		(3,724)		(229)
Metals & Mining	Metals & Mining	16,432		9,172		6,883		327		50		5		(1)		(15)		(2)		Metals & Mining	15,631		8,528		6,623		450		30		—		(6)		(209)		—
Transportation	Transportation	15,506		6,204		6,737		2,410		155		37		3		(302)		—		Transportation	15,447		6,879		7,002		1,516		50		64		(18)		(598)		—
Securities Firms																				Securities Firms	9,077		6,116		2,961		—		—		4		—		(14)		(2,693)
Financial Markets Infrastructure	Financial Markets Infrastructure	7,122		7,001		121		—		—		—		—		—		—		Financial Markets Infrastructure	4,993		4,599		394		—		—		—		—		(1)		—
Securities Firms		6,771		2,920		3,741		110		—		—		(13)		(24)		(898)
All other(d)	All other(d)	116,704		98,862		17,269		265		308		9		(4)		(13,147)		(2,789)		All other(d)	135,271		114,197		20,621		216		237		40		(2)		(8,137)		(2,786)
Subtotal	Subtotal	$	1,161,692	$	827,941	$	302,724	$	28,336	$	2,691	$	3,570	$	139	$	(24,276)	$	(25,068)	Subtotal	$	1,273,451	$	861,566	$	376,859	$	31,815	$	3,211	$	3,095	$	248	$	(31,105)	$	(23,282)
Loans held-for-sale and loans at fair value	Loans held-for-sale and loans at fair value	32,167																		Loans held-for-sale and loans at fair value	32,372
Receivables from customers	Receivables from customers	54,921																		Receivables from customers	42,741
Total(e)	Total(e)	$	1,248,780																	Total(e)	$	1,348,564

6672


(continued from previous page)	(continued from previous page)																													(continued from previous page)
																Selected metrics																														Selected metrics
																30 days or more past due and accruing loans			Net charge-offs/ (recoveries)			Credit derivative hedges and credit-related notes(h)					Liquid securities and other cash collateral held against derivative receivables																			30 days or more past due and accruing loans		Net charge-offs/ (recoveries)			Credit derivative hedges and credit-related notes(i)				Liquid securities and other cash collateral held against derivative receivables
							Noninvestment-grade																													Noninvestment-grade
As of or for the year ended	As of or for the year ended	Credit exposure(f)(g)			Investment- grade		Noncriticized				Criticized performing		Criticized nonperforming																	As of or for the year ended	Credit exposure(f)(g)			Investment- grade		Noncriticized				Criticized performing			Criticized nonperforming
December 31, 2021
December 31, 2022									December 31, 2022
(in millions)	(in millions)			Credit exposure(f)(g)					Investment- grade						Noncriticized						Criticized performing			Criticized nonperforming		30 days or more past due and accruing loans			Net charge-offs/ (recoveries)		Credit derivative hedges and credit-related notes(h)			Liquid securities and other cash collateral held against derivative receivables		(in millions)		Credit exposure(f)(g)				Investment- grade			Noncriticized					Criticized performing			Criticized nonperforming	30 days or more past due and accruing loans			Net charge-offs/ (recoveries)	Credit derivative hedges and credit-related notes(i)	Liquid securities and other cash collateral held against derivative receivables
Real Estate	Real Estate				Real Estate
Individuals and Individual Entities(b)	Individuals and Individual Entities(b)				Individuals and Individual Entities(b)
Asset Managers																Asset Managers		95,656						78,925												16,665				61			5
Consumer & Retail	Consumer & Retail	122,789					59,622			53,317					9,445			405			Consumer & Retail		120,555													60,781			51,871				7,295			608
Asset Managers		81,228					68,593			12,630					—			5			8			—				—					(3,900)
Industrials																														Industrials	72,483			39,052		30,500				2,809			122			282		44			(1,258)				—
Technology, Media & Telecommunications	Technology, Media & Telecommunications	84,070			49,610		25,540				8,595		325			58			(1)			(900)			(i)		(12)			Technology, Media & Telecommunications	72,286			39,199		25,689				7,096			302			62		39			(1,766)				—
Industrials		66,974			36,953		26,957				2,895		169			428			13			(586)			(i)		(1)
Healthcare	Healthcare	59,014			42,133		15,136				1,686		59			204			(4)			(490)					(174)			Healthcare	62,613			43,839		17,117				1,479			178			43		27			(1,055)				—
Banks & Finance Cos	Banks & Finance Cos	54,684			29,732		23,809				1,138		5			9			9			(503)			(i)		(810)			Banks & Finance Cos	51,816			27,811		22,994				961			50			36		—			(262)				(994)
State & Municipal Govt(c)																														State & Municipal Govt(c)	33,847			33,191		529				126			1			36		—			(9)				(5)
Utilities																														Utilities	36,218			25,981		9,294				807			136			21		15			(607)				(1)
Oil & Gas	Oil & Gas	42,606			20,698		20,222				1,558		128			4			60			(564)			(i)		—			Oil & Gas	38,668			20,547		17,616				474			31			57		(6)			(414)				—
Utilities		33,203			25,069		7,011				914		209			11			6			(367)			(i)		(4)
Automotive	Automotive	34,573			24,606		9,446				399		122			95			(3)			(463)					—			Automotive	33,287			23,908		8,839				416			124			198		(2)			(513)				—
State & Municipal Govt(c)		33,216			32,522		586				101		7			74			—			—					(14)
Chemicals & Plastics																														Chemicals & Plastics	20,030			12,134		7,103				744			49			10		3			(298)				—
Insurance	Insurance	13,926			9,943		3,887				96		—			—			—			(25)			(i)		(2,366)			Insurance	21,045			15,468		5,396				181			—			1		—			(273)				(7,296)
Chemicals & Plastics		17,660			11,319		5,817				518		6			7			—			(89)					—
Central Govt	Central Govt	11,317			11,067		250				—		—			—			—			(6,961)					(72)			Central Govt	19,095			18,698		362				35			—			—		10			(4,591)				(677)
Metals & Mining	Metals & Mining	16,696			7,848		8,491				294		63			27			7			(15)			(i)		(4)			Metals & Mining	15,915			8,825		6,863				222			5			7		(1)			(27)				(4)
Transportation	Transportation	14,635			6,010		5,983				2,470		172			21			20			(100)			(i)		(24)			Transportation	15,009			6,497		6,862				1,574			76			24		2			(339)				—
Securities Firms																														Securities Firms	8,066			4,235		3,716				115			—			—		(13)			(26)				(2,811)
Financial Markets Infrastructure	Financial Markets Infrastructure	4,377			3,987		390				—		—			—			—			—					—			Financial Markets Infrastructure	4,962			4,525		437				—			—			—		—			—				—
Securities Firms		4,180			2,599		1,578				—		3			—			—			(47)					(217)
All other(d)	All other(d)	111,690			97,537		13,580				205		368			242			(5)			(7,064)			(i)		(2,503)			All other(d)	123,307			105,284		17,555				223			245			4		(5)			(5,435)				(2,948)
Subtotal	Subtotal	$	1,103,880		$	782,628	$	283,069			$	35,049	$	3,134		$	3,320		$	142		$	(18,711)				$	(10,102)		Subtotal	$	1,146,530		$	810,772	$	304,457			$	28,587		$	2,714		$	2,698	$	181		$	(18,143)			$	(23,014)
Loans held-for-sale and loans at fair value	Loans held-for-sale and loans at fair value	39,758																												Loans held-for-sale and loans at fair value	35,427
Receivables from customers	Receivables from customers	59,645																												Receivables from customers	49,257
Total(e)	Total(e)	$	1,203,283																											Total(e)	$	1,231,214

(a)The industry rankings presented in the table as of December 31, ~~2021,~~2022, are based on the industry rankings of the corresponding exposures ~~at September~~as of June 30, ~~2022,~~2023, not actual rankings of such exposures atas of December 31, ~~2021.~~2022.

(b)I~~ndividuals~~Individuals and Individual Entities predominantly consists of Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB, and includes exposure to personal investment companies and personal and testamentary trusts.

(c)In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) noted above, the Firm held ~~$7.0~~$6.8 billion and ~~$7.1~~$6.6 billion of trading assets ~~at September~~as of June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, respectively; ~~$8.6~~$24.0 billion and ~~$15.9~~$6.8 billion, respectively, of AFS securities; and ~~$19.4~~$11.6 billion and ~~$14.0~~$19.7 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 910 for further information.

(d)All other includes: SPEs, and Private education and civic organizations, representing approximately 94% and 6%, respectively, as of June 30, 2023 and 95% and 5% ~~at September 30, 2022 and 94% and 6% at~~, respectively, as of December 31, ~~2021, respectively.~~2022.

(e)Excludes cash and other deposits placed with banks of ~~$634.7~~$485.4 billion and ~~$729.6~~$556.6 billion, ~~at September~~as of June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks.

(f)Credit exposure is net of risk participations and excludes the benefit of credit derivatives and credit-related notes used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables.

(g)Credit exposure includes held-for-sale and fair value option elected lending-related commitments.

(h)Included credit exposure of $98.2 billion associated with the First Republic acquisition predominantly in Asset Managers, Real Estate, and Individuals and Individual Entities.

(i)Represents the net notional amounts of protection purchased and sold through credit derivatives and credit-related notes used to manage the credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. The All other category includes purchased credit protection on certain credit indices.

~~(i)Prior-period amounts have been revised to conform with the current presentation.~~

6773

Presented below is additional detail on certain of the Firm’s industry exposures.

Real Estate

Real Estate exposure was ~~$168.2~~$206.9 billion as of ~~September~~June 30, ~~2022, of which $98.3 billion was multifamily lending as shown in the table below.~~2023. Criticized exposure ~~decreased~~increased by ~~$1.9~~$1.3 billion from $4.0 billion as of December 31, 2022 to $5.3 billion ~~at December 31, 2021 to $3.4 billion at September~~as of June 30, ~~2022,~~2023, driven by client-specific ~~upgrades and net portfolio activity~~downgrades, partially offset by client-specific ~~downgrades.~~upgrades.


		September 30, 2022											June 30, 2023
(in millions, except ratios)	(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment-grade		% Drawn(d)		(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure			% Investment-grade		% Drawn(e)
Multifamily(a)	Multifamily(a)	$	98,281	$	10	$	98,291	82	%	87	%	Multifamily(a)	$	119,840	$	11	$	119,851		83	%	89	%
Other Income Producing Properties(b)												Other Income Producing Properties(b)	18,664		178		18,842			56		68
Industrial												Industrial	17,997		—		17,997			66		74
Office	Office	15,035		26		15,061		74		74		Office	17,623		24		17,647			62		76
Industrial		14,965		—		14,965		74		68
Services and Non Income Producing	Services and Non Income Producing	13,679		4		13,683		68		48		Services and Non Income Producing	15,656		63		15,719			64		53
Other Income Producing Properties(b)		12,285		150		12,435		69		61
Retail	Retail	10,136		10		10,146		69		66		Retail	12,899		35		12,934			61		71
Lodging	Lodging	3,609		12		3,621		5		34		Lodging	3,902		20		3,922			16		47
Total Real Estate Exposure(c)	Total Real Estate Exposure(c)	$	167,990	$	212	$	168,202	76	%	77	%	Total Real Estate Exposure(c)	$	206,581	$	331	$	206,912	(d)	73	%	80	%

		December 31, 2021											December 31, 2022
(in millions, except ratios)	(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment- grade		% Drawn(d)		(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure			% Investment- grade		% Drawn(e)
Multifamily(a)	Multifamily(a)	$	89,032	$	122	$	89,154	84	%	89	%	Multifamily(a)	$	99,555	$	17	$	99,572		82	%	87	%
Other Income Producing Properties(b)												Other Income Producing Properties(b)	12,701		150		12,851			70		62
Industrial												Industrial	15,928		1		15,929			72		71
Office	Office	16,409		234		16,643		75		71		Office	14,917		25		14,942			74		73
Industrial		11,546		66		11,612		75		64
Services and Non Income Producing	Services and Non Income Producing	11,512		24		11,536		63		50		Services and Non Income Producing	13,968		10		13,978			65		48
Other Income Producing Properties(b)		13,018		498		13,516		77		55
Retail	Retail	9,580		106		9,686		61		69		Retail	10,192		8		10,200			75		68
Lodging	Lodging	2,859		63		2,922		5		33		Lodging	3,347		38		3,385			6		37
Total Real Estate Exposure	Total Real Estate Exposure	$	153,956	$	1,113	$	155,069	77	%	77	%	Total Real Estate Exposure	$	170,608	$	249	$	170,857		76	%	77	%

(a)Multifamily exposure is largely in California.

(b)Other Income Producing Properties consists of clients with diversified property types or other property types outside of categories listed in the table above.

(c)Real Estate exposure is approximately ~~79%~~82% secured; unsecured exposure is approximately ~~75%~~76% investment-grade.

(d)Included $33.2 billion of credit exposure associated with the First Republic acquisition.

(e)Represents drawn exposure as a percentage of credit exposure.

Consumer & Retail

Consumer & Retail exposure was ~~$118.9~~$125.9 billion as of ~~September~~June 30, ~~2022, and predominantly included Retail, Food and Beverage, and Business and Consumer Services as shown in the table below.~~2023. Criticized exposure ~~decreased~~increased by ~~$2.6~~$162 million from $7.9 billion ~~from $9.9 billion at~~as of December 31, ~~2021~~2022 to ~~$7.3~~$8.1 billion atas of ~~September~~June 30, ~~2022~~2023, driven by ~~net portfolio activity and~~ client-specific ~~upgrades partially~~downgrades predominantly offset by client-specific ~~downgrades.~~ upgrades and net portfolio activity.


		September 30, 2022											June 30, 2023
(in millions, except ratios)	(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment-grade		% Drawn(d)		(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment-grade		% Drawn(d)
Retail(a)	Retail(a)	$	34,299	$	456	$	34,755	52	%	34	%	Retail(a)	$	35,745	$	329	$	36,074	53	%	32	%
Business and Consumer Services												Business and Consumer Services	33,127		348		33,475		49		41
Food and Beverage	Food and Beverage	31,239		900		32,139		61		41		Food and Beverage	31,747		1,195		32,942		56		40
Business and Consumer Services		30,939		472		31,411		48		39
Consumer Hard Goods	Consumer Hard Goods	13,310		222		13,532		53		42		Consumer Hard Goods	13,927		285		14,212		47		36
Leisure(b)	Leisure(b)	6,981		75		7,056		21		41		Leisure(b)	9,111		121		9,232		25		44
Total Consumer & Retail(c)	Total Consumer & Retail(c)	$	116,768	$	2,125	$	118,893	52	%	39	%	Total Consumer & Retail(c)	$	123,657	$	2,278	$	125,935	50	%	38	%

		December 31, 2021											December 31, 2022
(in millions, except ratios)	(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment- grade		% Drawn(d)		(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment- grade		% Drawn(d)
Retail(a)	Retail(a)	$	32,872	$	1,152	$	34,024	50	%	31	%	Retail(a)	$	33,891	$	309	$	34,200	50	%	33	%
Business and Consumer Services												Business and Consumer Services	31,256		384		31,640		50		40
Food and Beverage	Food and Beverage	30,434		957		31,391		59		33		Food and Beverage	31,706		736		32,442		59		39
Business and Consumer Services		32,159		347		32,506		46		33
Consumer Hard Goods	Consumer Hard Goods	17,035		111		17,146		46		30		Consumer Hard Goods	13,879		172		14,051		51		39
Leisure(b)	Leisure(b)	7,620		102		7,722		17		34		Leisure(b)	8,173		49		8,222		21		45
Total Consumer & Retail	Total Consumer & Retail	$	120,120	$	2,669	$	122,789	49	%	32	%	Total Consumer & Retail	$	118,905	$	1,650	$	120,555	50	%	38	%

(a)Retail consists of Home Improvement & Specialty Retailers, Restaurants, Supermarkets, Discount & Drug Stores, Specialty Apparel and Department Stores.

(b)Leisure consists of Gaming, Arts & Culture, Travel Services and Sports & Recreation. As of ~~September~~June 30, ~~2022~~2023 approximately ~~89%~~88% of the noninvestment-grade Leisure portfolio is secured.

(c)Consumer & Retail exposure is approximately ~~56%~~57% secured; unsecured exposure is approximately 79% investment-grade.

(d)Represents drawn exposure as a percent of credit exposure.

Oil & Gas

Oil & Gas exposure was ~~$44.1~~$33.2 billion as of ~~September~~June 30, ~~2022, including $26.2 billion~~2023 of Exploration & Production and Oil field Services as shown in the table below. Derivative receivables increased reflecting market movements related to Oil & Gas prices. Criticized exposure decreased by $1.0 billion from $1.7 billion at ~~December 31, 2021~~ ~~to $647~~which $496 million ~~at September 30, 2022, driven by net portfolio activity and client-specific upgrades partially offset by client-specific downgrades.~~was considered criticized exposure.


		September 30, 2022											June 30, 2023
(in millions, except ratios)	(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment-grade		% Drawn(c)		(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment-grade		% Drawn(c)
Exploration & Production (“E&P”) and Oil field Services	Exploration & Production (“E&P”) and Oil field Services	$	17,450	$	8,756	$	26,206	50	%	21	%	Exploration & Production (“E&P”) and Oil field Services	$	16,592	$	1,186	$	17,778	56	%	29	%
Other Oil & Gas(a)	Other Oil & Gas(a)	16,345		1,504		17,849		59		25		Other Oil & Gas(a)	15,289		166		15,455		58		28
Total Oil & Gas(b)	Total Oil & Gas(b)	$	33,795	$	10,260	$	44,055	54	%	22	%	Total Oil & Gas(b)	$	31,881	$	1,352	$	33,233	57	%	29	%

		December 31, 2021											December 31, 2022
(in millions, except ratios)	(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment- grade		% Drawn(c)		(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment- grade		% Drawn(c)
Exploration & Production (“E&P”) and Oil field Services	Exploration & Production (“E&P”) and Oil field Services	$	17,631	$	5,452	$	23,083	39	%	26	%	Exploration & Production (“E&P”) and Oil field Services	$	17,729	$	4,666	$	22,395	50	%	25	%
Other Oil & Gas(a)	Other Oil & Gas(a)	18,941		582		19,523		60		26		Other Oil & Gas(a)	15,818		455		16,273		57		25
Total Oil & Gas	Total Oil & Gas	$	36,572	$	6,034	$	42,606	49	%	26	%	Total Oil & Gas	$	33,547	$	5,121	$	38,668	53	%	25	%

(a)Other Oil & Gas includes Integrated Oil & Gas companies, Midstream/Oil Pipeline companies and refineries.

(b)Oil & Gas exposure is approximately ~~44%~~40% secured, ~~over~~approximately half of which is reserve-based lending to the Exploration & Production sub-sector; unsecured exposure is approximately ~~61%~~68% investment-grade.

(c)Represents drawn exposure as a percent of credit exposure.

6975

Loans

In its wholesale businesses, the Firm provides loans to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals. Refer to Note 1112 for a further discussion on loans, including information about delinquencies, loan modifications and other credit quality indicators.

The following table presents the change in the nonaccrual loan portfolio for the ~~nine~~six months ended ~~September~~ June 30, ~~2022~~2023 and ~~2021.~~2022. Since ~~September~~June 30, ~~2021,~~2022, nonaccrual loan exposure ~~decreased $596~~increased by $518 million driven by ~~paydowns~~Healthcare, Consumer & Retail, and ~~client-specific upgrades in~~ Real Estate ~~Individuals and Oil & Gas,~~resulting from downgrades, partially offset by ~~client-specific downgrades, including downgrades to certain Russia~~Transportation and ~~Russia-associated clients in the first quarter of 2022.~~civic organizations resulting from net portfolio activity.


Wholesale nonaccrual loan activity	Wholesale nonaccrual loan activity					Wholesale nonaccrual loan activity
Nine month ended September 30, 2022, (in millions)		2022		2021
Six months ended June 30, (in millions)						Six months ended June 30, (in millions)	2023		2022
Beginning balance	Beginning balance	$	2,445	$	4,106	Beginning balance	$	2,395	$	2,445
Additions	Additions	1,635		2,021		Additions	1,649		1,239
Reductions:	Reductions:					Reductions:
Paydowns and other	Paydowns and other	1,108		1,782		Paydowns and other	618		776
Gross charge-offs	Gross charge-offs	127		180		Gross charge-offs	281		83
Returned to performing status	Returned to performing status	516		893		Returned to performing status	85		326
Sales	Sales	33		380		Sales	52		9
Total reductions	Total reductions	1,784		3,235		Total reductions	1,036		1,194
Net changes	Net changes	(149)		(1,214)		Net changes	613		45
Ending balance	Ending balance	$	2,296	$	2,892	Ending balance	$	3,008	$	2,490

The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022. The amounts in the table below do not include gains or losses from sales of nonaccrual loans recognized in noninterest revenue.


Wholesale net charge-offs/(recoveries)	Wholesale net charge-offs/(recoveries)										Wholesale net charge-offs/(recoveries)
(in millions, except ratios)	(in millions, except ratios)	Three months ended September 30,						Nine months ended September 30,						(in millions, except ratios)	Three months ended June 30,						Six months ended June 30,
		2022			2021			2022			2021				2023			2022			2023			2022
Loans	Loans													Loans
Average loans retained	Average loans retained	$	590,490		$	528,979		$	576,025		$	521,628		Average loans retained	$	647,474		$	577,850		$	624,566		$	568,673
Gross charge-offs	Gross charge-offs	109			52			232			187			Gross charge-offs	189			71			294			123
Gross recoveries collected	Gross recoveries collected	(50)			(15)			(93)			(87)			Gross recoveries collected	(24)			(21)			(46)			(43)
Net charge-offs/(recoveries)	Net charge-offs/(recoveries)	59			37			139			100			Net charge-offs/(recoveries)	165			50			248			80
Net charge-off/(recovery) rate	Net charge-off/(recovery) rate	0.04		%	0.03		%	0.03		%	0.03		%	Net charge-off/(recovery) rate	0.10		%	0.03		%	0.08		%	0.03		%

Modified wholesale loans

The amortized cost of wholesale FDMs was $673 million and $854 million for the three and six months ended June 30, 2023, respectively. Refer to Note 1 and Note 12 for further information.

Wholesale TDRs were $60 million and $479 million for the three and six months ended June 30, 2022, respectively. Refer to Note 12 for further information on TDRs in prior periods.

7076

Maturities and sensitivity to changes in interest rates

The table below sets forth loan maturities by scheduled repayments, by class of loan and the distribution between fixed and floating interest rates based on the stated terms of the loan agreements. Refer to Wholesale Credit Portfolio on pages 116-126 of JPMorgan Chase's 2022 Form 10-K for further information. Refer to Note 12 for further information on loan classes.


June 30, 2023 (in millions, except ratios)	1 year or less(f)		After 1 year through 5 years		After 5 years through 15 years		After 15 years		Total
Wholesale loans:
Secured by real estate(a)	$	17,025	$	61,188	$	50,001	$	41,680	$	169,894
Commercial and industrial	54,346		114,370		8,863		197		177,776
Other(b)	184,593		127,299		35,378		5,577		352,847
Total wholesale loans	$	255,964	$	302,857	$	94,242	$	47,454	$	700,517
Loans due after one year at fixed interest rates
Secured by real estate(c)			$	15,915	$	11,563	$	520
Commercial and industrial			5,775		1,238		66
Other			30,048		15,690		3,808
Loans due after one year at variable interest rates
Secured by real estate(d)			$	45,273	$	38,438	$	41,160
Commercial and industrial			108,595		7,625		131
Other(e)			97,251		19,688		1,769
Total wholesale loans			$	302,857	$	94,242	$	47,454

(a)Included $6.5 billion, $17.0 billion, and $9.9 billion of loans in 1 year or less, after 1 year through 5 years, and after 5 years though 15, respectively, associated with the First Republic acquisition.

(b)Included $12.0 billion, and $3.8 billion of loans in 1 year or less, and after 1 year through 5 years, respectively, associated with the First Republic acquisition.

(c)Included $9.7 billion, and $5.7 billion in after 1 year through 5 years, and after 5 years though 15, respectively, associated with the First Republic acquisition.

(d)Included $7.3 billion, and $4.2 billion in after 1 year through 5 years, and after 5 years though 15, respectively, associated with the First Republic acquisition.

(e)Included $3.2 billion in after 1 year through 5 years associated with the First Republic acquisition.

(f)Includes loans held-for-sale, demand loans and overdrafts.

The following table presents net charge-offs/recoveries, average retained loans and net charge-off/recovery rate by loan class for the three and six months ended June 30, 2023 and 2022.


	Three months ended June 30,
	Secured by real estate						Commercial and industrial						Other						Total
(in millions, except ratios)	2023			2022			2023			2022			2023			2022			2023			2022
Net charge-offs/(recoveries)	$	85		$	2		$	81		$	47		$	(1)		$	1		$	165		$	50
Average retained loans	153,590			120,441			171,684			162,702			322,200			294,707			647,474			577,850
Net charge-off/(recovery) rate	0.22		%	0.01		%	0.19		%	0.12		%	—		%	—		%	0.10		%	0.03		%


	Six months ended June 30,
	Secured by real estate						Commercial and industrial						Other						Total
(in millions, except ratios)	2023			2022			2023			2022			2023			2022			2023			2022
Net charge-offs/(recoveries)	$	90		$	8		$	151		$	54		$	7		$	18		$	248		$	80
Average retained loans	139,822			119,139			171,136			158,222			313,608			291,312			624,566			568,673
Net charge-off/(recovery) rate	0.13		%	0.01		%	0.18		%	0.07		%	—		%	0.01		%	0.08		%	0.03		%

Lending-related commitments

The Firm uses lending-related financial instruments, such as commitments (including revolving credit facilities) and guarantees, to address the financing needs of its clients. The contractual amounts of these financial instruments represent the maximum possible credit risk should the clients draw down on these commitments or when the Firm fulfills its obligations under these guarantees, and the clients subsequently fail to perform according to the terms of these contracts. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being drawn upon or a default occurring. As a result, the Firm does not believe that the total contractual amount of these wholesale lending-related commitments is representative of the Firm’s expected future credit exposure or funding requirements. Refer to Note 2224 for further information on wholesale lending-related commitments.

Receivables from customers

Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM that are collateralized by assets maintained in the clients’ brokerage accounts (e.g., cash on deposit, and liquid and readily marketable debt or equity securities). Because of this collateralization, no allowance for credit losses is generally held against these receivables. To manage its credit risk the Firm establishes margin requirements and monitors the required margin levels on an ongoing basis, and requires clients to deposit additional cash or other collateral, or to reduce positions, when appropriate. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets.

Derivative contracts

Derivatives enable clients and counterparties to manage risk including credit risk and risks arising from fluctuations in interest rates, foreign exchange and equities and commodities prices. The Firm makes markets in derivatives in order to meet these needs and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. The Firm also uses derivative instruments to manage its own credit risk and other market risk exposure. The nature of the counterparty and the settlement mechanism of the derivative affect the credit risk to which the Firm is exposed. For ~~OTC~~over-the-counter ("OTC") derivatives the Firm is exposed to the credit risk of the derivative counterparty. For exchange-traded derivatives (“ETD”), such as futures and options, and cleared over-the-counter (“OTC-cleared”) derivatives, the Firm can also be exposed to the credit risk of the relevant central counterparty clearing house (“CCP”). Where possible, the Firm seeks to mitigate its credit risk exposures arising from derivative contracts through the use of legally enforceable master netting arrangements and collateral agreements.

The percentage of the Firm’s over-the-counter derivative transactions subject to collateral agreements — excluding foreign exchange spot trades, which are not typically covered by collateral agreements due to their short maturity, and centrally cleared trades that are settled daily — was approximately 88% and 87% at ~~both September~~June 30, ~~2022,~~2023, and December 31, ~~2021.~~2022, respectively. Refer to Note 45 for additional information on the Firm’s use of collateral agreements and for a further discussion of derivative contracts, counterparties and settlement types.

The fair value of derivative receivables reported on the Consolidated balance sheets ~~were $92.5~~was $64.2 billion and ~~$57.1~~$70.9 billion at ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, respectively. The ~~increase~~decrease was primarily driven by ~~higher foreign exchange and commodity derivative receivables as a result of~~ market ~~movements.~~movements in CIB Markets. Derivative receivables represent the fair value of the derivative contracts after giving effect to legally enforceable master netting agreements and the related cash collateral held by the Firm.

In addition, the Firm held liquid securities and other cash collateral that may be used as security when the fair value of the client’s exposure is in the Firm’s favor. For these purposes, the definition of liquid securities is consistent with the definition of high quality liquid assets as defined in the LCR rule.

In management’s view, the appropriate measure of current credit risk should also take into consideration other collateral, which generally represents securities that do not qualify as high quality liquid assets under the LCR rule. The benefits of these additional collateral amounts for each counterparty are subject to a legally enforceable master netting agreement and limited to the net amount of the derivative receivables for each counterparty.

The Firm also holds additional collateral (primarily cash, G7 government securities, other liquid government agency and guaranteed securities, and corporate debt and equity securities) delivered by clients at the initiation of transactions, as well as collateral related to contracts that have a non-daily call frequency and collateral that the Firm has agreed to return but has not yet settled as of the reporting date. Although this collateral does not reduce the balances and is not included in the tables below, it is available as security against potential exposure that could arise should the fair value of the client’s derivative contracts move in the Firm’s favor. Refer to Note 45 for additional information on the Firm’s use of collateral ~~agreements.~~agreements for derivatives transactions.

7178

The following tables summarize the net derivative receivables and the internal ratings profile for the periods presented.


Derivative receivables	Derivative receivables					Derivative receivables
(in millions)	(in millions)	September 30, 2022		December 31, 2021		(in millions)	June 30, 2023		December 31, 2022
Total, net of cash collateral	Total, net of cash collateral	$	92,534	$	57,081	Total, net of cash collateral	$	64,217	$	70,880
Liquid securities and other cash collateral held against derivative receivables	Liquid securities and other cash collateral held against derivative receivables	(25,068)		(10,102)		Liquid securities and other cash collateral held against derivative receivables	(23,282)		(23,014)
Total, net of liquid securities and other cash collateral	Total, net of liquid securities and other cash collateral	$	67,466	$	46,979	Total, net of liquid securities and other cash collateral	$	40,935	$	47,866
Other collateral held against derivative receivables	Other collateral held against derivative receivables	(2,299)		(1,544)		Other collateral held against derivative receivables	(1,257)		(1,261)
Total, net of collateral	Total, net of collateral	$	65,167	$	45,435	Total, net of collateral	$	39,678	$	46,605


Ratings profile of derivative receivables	Ratings profile of derivative receivables										Ratings profile of derivative receivables
		September 30, 2022				December 31, 2021						June 30, 2023				December 31, 2022
(in millions, except ratios)	(in millions, except ratios)	Exposure net of collateral		% of exposure net of collateral		Exposure net of collateral			% of exposure net of collateral		(in millions, except ratios)	Exposure net of collateral		% of exposure net of collateral		Exposure net of collateral			% of exposure net of collateral
Investment-grade	Investment-grade	$	50,030	77	%	$	30,278		67	%	Investment-grade	$	31,560	80	%	$	35,097		75	%
Noninvestment-grade	Noninvestment-grade	15,137		23		15,157		(a)	33		Noninvestment-grade	8,118		20		11,508		(a)	25
Total	Total	$	65,167	100	%	$	45,435		100	%	Total	$	39,678	100	%	$	46,605		100	%

Credit portfolio management activities

The Firm uses credit derivatives for two primary purposes: first, in its capacity as a market-maker, and second, as an end-user, to manage the Firm’s own credit risk associated with traditional lending activities (loans and lending-related commitments) and derivatives counterparty exposure in the Firm’s wholesale businesses. In addition, the Firm obtains credit protection against certain loans in the retained wholesale portfolio through the issuance of credit-related notes. Information on credit portfolio management activities is provided in the table below.


Credit derivatives and credit-related notes used in credit portfolio management activities	Credit derivatives and credit-related notes used in credit portfolio management activities						Credit derivatives and credit-related notes used in credit portfolio management activities
		Notional amount of protection purchased and sold(a)						Notional amount of protection purchased and sold(a)
(in millions)	(in millions)	September 30, 2022		December 31, 2021			(in millions)	June 30, 2023		December 31, 2022
Credit derivatives and credit-related notes used to manage:	Credit derivatives and credit-related notes used to manage:						Credit derivatives and credit-related notes used to manage:
Loans and lending-related commitments	Loans and lending-related commitments	$	4,766	$	4,138		Loans and lending-related commitments	$	16,801	$	6,422
Derivative receivables	Derivative receivables	19,510		14,573		(b)	Derivative receivables	14,304		11,721
Credit derivatives and credit-related notes used in credit portfolio management activities	Credit derivatives and credit-related notes used in credit portfolio management activities	$	24,276	$	18,711		Credit derivatives and credit-related notes used in credit portfolio management activities	$	31,105	$	18,143

(a)Amounts are presented net, considering the Firm’s net protection purchased or sold with respect to each underlying reference entity or index.

~~(b)Prior-period amount has been revised to conform with the current presentation.~~

Refer to Credit derivatives in Note 45 of this Form 10-Q and Note 5 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further information on credit derivatives and derivatives used in credit portfolio management activities.

7279

ALLOWANCE FOR CREDIT LOSSES

The Firm’s allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses ~~comprises:~~generally consists of:

•the allowance for loan losses, which covers the Firm’s retained loan portfolios (scored and risk-rated) ~~and is presented separately on the Consolidated balance sheets,~~,

•the allowance for lending-related commitments, which is ~~presented on the Consolidated balance sheets~~reflected in accounts payable and other liabilities on the Consolidated balance sheets, and

•the allowance for credit losses on investment securities, which is reflected in investment securities on the Consolidated balance sheets.

Discussion of changes in the allowance

The allowance for credit losses as of ~~September~~June 30, ~~2022~~2023 was ~~$20.8~~$24.3 billion, reflecting a net addition of ~~$2.1~~$2.7 billion from December 31, ~~2021, consisting of: $1.9 billion in wholesale and $168 million in consumer.~~2022.

The net addition to the ~~wholesale~~ allowance ~~resulted from:~~for credit losses included $1.5 billion, consisting of:

•~~loan growth~~$819 million in wholesale, predominantly driven by net downgrade activity, updates to certain assumptions related to office real estate in CB ~~and CIB, and~~

•~~changes to the Firm's macroeconomic forecast reflecting~~

–~~updates to the Firm's macroeconomic scenarios including an increasing forecasted unemployment rate and deterioration~~ in the ~~equity market indices,~~second quarter of 2023, and

–the impact of the ~~increased~~additional weight placed on the adverse scenarios ~~beginning~~ in the first quarter of ~~2022, due to the effects associated with higher inflation, changes~~2023, and

•$649 million in ~~monetary policy, and geopolitical risks, including the war in Ukraine.~~

~~The increase in the~~ consumer ~~allowance was~~, predominantly driven by Card Services, reflecting aloan growth, the net effect of changes in the Firm's macroeconomic outlook, including the impact from the weighted average U.S. unemployment rate peaking in the third quarter of 2024, and the additional weight placed on the adverse scenarios in the first quarter of 2023, partially offset by reduced borrower uncertainty.

The net addition also included $1.2 billion to establish the allowance for ~~loan~~the First Republic loans and lending-related commitments in the second quarter of 2023.

The Firm has maintained the additional weight placed on the relative adverse scenario in the first quarter of 2023, reflecting an increased probability of a moderate recession due to tightening financial conditions.

The allowance for credit losses ~~resulting from higher outstanding balances predominantly offset by~~also reflected a reduction ~~related to~~of $587 million as a ~~decrease in uncertainty associated with borrower behavior as the effects~~result of the ~~pandemic gradually recede.~~adoption of changes to the TDR accounting guidance on January 1, 2023. Refer to Note 1 for further information.

The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the table below, resulting in a weighted average U.S. unemployment rate peaking at ~~5.0%~~5.8% in the third quarter of ~~2023,~~2024, and a ~~1.6%~~1.5% lower U.S. real GDP exiting the fourth quarter of ~~2023.~~2024.

The Firm’s central case assumptions reflected U.S. unemployment rates and U.S. real GDP as follows:


		Assumptions at September 30, 2022							Assumptions at June 30, 2023
		4Q22		2Q23		4Q23			4Q23		2Q24		4Q24
U.S. unemployment rate(a)	U.S. unemployment rate(a)	3.8	%	3.9	%	3.9	%	U.S. unemployment rate(a)	4.2	%	4.9	%	5.0	%
YoY growth in U.S. real GDP(b)	YoY growth in U.S. real GDP(b)	—	%	1.4	%	1.2	%	YoY growth in U.S. real GDP(b)	0.5	%	—	%	1.0	%

		Assumptions at December 31, 2021							Assumptions at December 31, 2022
		2Q22		4Q22		2Q23			2Q23		4Q23		2Q24
U.S. unemployment rate(a)	U.S. unemployment rate(a)	4.2	%	4.0	%	3.9	%	U.S. unemployment rate(a)	3.8	%	4.3	%	5.0	%
YoY growth in U.S. real GDP(b)	YoY growth in U.S. real GDP(b)	3.1	%	2.8	%	2.1	%	YoY growth in U.S. real GDP(b)	1.5	%	0.4	%	—	%

(a)Reflects quarterly average of forecasted U.S. unemployment rate.

(b)~~As of September 30, 2022, the~~The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the ~~percent~~percentage change in U.S. real GDP levels from the prior year.

Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.

Refer to Note 13 and Note 10 of JPMorgan Chase's ~~2021~~2022 Form 10-K for a description of the policies, methodologies and judgments used to determine the Firm’s ~~allowances~~allowance for credit losses on loans, lending-related commitments, and investment securities.

Refer to Consumer Credit Portfolio on pages ~~59-63,~~65-69, Wholesale Credit Portfolio on pages ~~64-72~~70-79 and Note 1112 for additional information on the consumer and wholesale credit portfolios.

Refer to Critical Accounting Estimates Used by the Firm on pages ~~85-87~~91-93 for further information on the allowance for credit losses and related management judgments.

7380


Allowance for credit losses and related information	Allowance for credit losses and related information																											Allowance for credit losses and related information
		2022														2021													2023														2022
Nine months ended September 30,		Consumer, excluding credit card			Credit card			Wholesale			Total					Consumer, excluding credit card			Credit card			Wholesale			Total
Six months ended June 30,														Six months ended June 30,	Consumer, excluding credit card													Credit card		Wholesale			Total						Consumer, excluding credit card			Credit card		Wholesale			Total
(in millions, except ratios)	(in millions, except ratios)				Consumer, excluding credit card			Credit card			Wholesale			Total							Consumer, excluding credit card			Credit card			Wholesale									Total														(in millions, except ratios)
Allowance for loan losses	Allowance for loan losses															Allowance for loan losses
Beginning balance at January 1,	Beginning balance at January 1,	$	1,765		$	10,250		$	4,371		$	16,386				$	3,636		$	17,800										$	6,892		$	28,328					Beginning balance at January 1,		$	2,040	$	11,200		$	6,486		$	19,726					$	1,765	$	10,250	$	4,371	$	16,386
Cumulative effect of a change in accounting principle(a)																												Cumulative effect of a change in accounting principle(a)	(489)			(100)			2			(587)					NA
Gross charge-offs	Gross charge-offs	590			2,294			232			3,116					452			2,957			187			3,596			Gross charge-offs	501			2,432			294			3,227					384			1,505			123			2,012
Gross recoveries collected	Gross recoveries collected	(441)			(616)			(93)			(1,150)					(470)			(724)			(87)			(1,281)			Gross recoveries collected	(247)			(386)			(46)			(679)					(311)			(419)			(43)			(773)
Net charge-offs/(recoveries)	Net charge-offs/(recoveries)	149			1,678			139			1,966					(18)			2,233			100			2,315			Net charge-offs/(recoveries)	254			2,046			248			2,548					73			1,086			80			1,239
Provision for loan losses	Provision for loan losses	202			1,828			1,733			3,763					(1,778)			(3,917)			(2,162)			(7,857)			Provision for loan losses	751			2,546			2,067			5,364					237			1,236			1,125			2,598
Other	Other	1			—			1			2					(2)			—			(4)			(6)			Other	—			—			25			25								—			5			5
Ending balance at September 30,		$	1,819		$	10,400		$	5,966		$	18,185				$	1,874		$	11,650		$	4,626		$	18,150
Ending balance at June 30,																												Ending balance at June 30,	$	2,048		$	11,600		$	8,332		$	21,980				$	1,929		$	10,400		$	5,421		$	17,750

Allowance for lending-related commitments	Allowance for lending-related commitments																											Allowance for lending-related commitments
Beginning balance at January 1,	Beginning balance at January 1,	$	113		$	—		$	2,148		$	2,261				$	187		$	—		$	2,222		$	2,409		Beginning balance at January 1,	$	76		$	—		$	2,306		$	2,382				$	113		$	—		$	2,148		$	2,261
Provision for lending-related commitments	Provision for lending-related commitments	(36)			—			325			289					(45)			—			(61)			(106)			Provision for lending-related commitments	52			—			(253)			(201)					(2)			—			(37)			(39)
Other	Other	—			—			1			1					—			—			2			2			Other	1			—			4			5					(1)			—			1			—
Ending balance at September 30,		$	77		$	—		$	2,474		$	2,551				$	142		$	—		$	2,163		$	2,305
Ending balance at June 30,																												Ending balance at June 30,	$	129		$	—		$	2,057		$	2,186				$	110		$	—		$	2,112		$	2,222

Impairment methodology	Impairment methodology																											Impairment methodology
Asset-specific(a)		$	(702)		$	218		$	450		$	(34)				$	(571)		$	383		$	357		$	169
Asset-specific(b)																												Asset-specific(b)	$	(971)		$	—		$	478		$	(493)				$	(676)		$	227		$	332		$	(117)
Portfolio-based	Portfolio-based	2,521			10,182			5,516			18,219					2,445			11,267			4,269			17,981			Portfolio-based	3,019			11,600			7,854			22,473					2,605			10,173			5,089			17,867
Total allowance for loan losses	Total allowance for loan losses	$	1,819		$	10,400		$	5,966		$	18,185				$	1,874		$	11,650		$	4,626		$	18,150		Total allowance for loan losses	$	2,048		$	11,600		$	8,332		$	21,980				$	1,929		$	10,400		$	5,421		$	17,750

Impairment methodology	Impairment methodology																											Impairment methodology
Asset-specific	Asset-specific	$	—		$	—		$	84		$	84				$	—		$	—		$	129		$	129		Asset-specific	$	—		$	—		$	65		$	65				$	—		$	—		$	78		$	78
Portfolio-based	Portfolio-based	77			—			2,390			2,467					142			—			2,034			2,176			Portfolio-based	129			—			1,992			2,121					110			—			2,034			2,144
Total allowance for lending-related commitments	Total allowance for lending-related commitments	$	77		$	—		$	2,474		$	2,551				$	142		$	—		$	2,163		$	2,305		Total allowance for lending-related commitments	$	129		$	—		$	2,057		$	2,186				$	110		$	—		$	2,112		$	2,222
Total allowance for investment securities	Total allowance for investment securities	NA									$	61				NA									$	73		Total allowance for investment securities	NA			NA						$	104				NA									$	47
Total allowance for credit losses(b)		$	1,896		$	10,400		$	8,440		$	20,797				$	2,016		$	11,650		$	6,789		$	20,528
Total allowance for credit losses(c)(d)																												Total allowance for credit losses(c)(d)	$	2,177		$	11,600		$	10,389		$	24,270				$	2,039		$	10,400		$	7,533		$	20,019

Memo:	Memo:																											Memo:
Retained loans, end of period		$	301,403		$	170,462		$	596,208		$	1,068,073				$	298,308		$	143,166		$	532,786		$	974,260
Retained loans, end-of-period																												Retained loans, end-of-period	$	396,195		$	191,348		$	668,145		$	1,255,688				$	302,631		$	165,494		$	584,265		$	1,052,390
Retained loans, average	Retained loans, average	298,840			158,721			576,025			1,033,586					299,620			137,012			521,628			958,260			Retained loans, average	330,227			183,757			624,566			1,138,550					297,566			153,941			568,673			1,020,180
Credit ratios	Credit ratios																											Credit ratios
Allowance for loan losses to retained loans	Allowance for loan losses to retained loans	0.60		%	6.10		%	1.00		%	1.70		%			0.63		%	8.14		%	0.87		%	1.86		%	Allowance for loan losses to retained loans	0.52		%	6.06		%	1.25		%	1.75		%			0.64		%	6.28		%	0.93		%	1.69		%
Allowance for loan losses to retained nonaccrual loans(c)(d)		46			NM			317			314					38			NM			222			259
Allowance for loan losses to retained nonaccrual loans(e)																												Allowance for loan losses to retained nonaccrual loans(e)	54			NM			321			345					46			NM			260			283
Allowance for loan losses to retained nonaccrual loans excluding credit card	Allowance for loan losses to retained nonaccrual loans excluding credit card	46			NM			317			134					38			NM			222			93			Allowance for loan losses to retained nonaccrual loans excluding credit card	54			NM			321			163					46			NM			260			117
Net charge-off/(recovery) rates	Net charge-off/(recovery) rates	0.07			1.41			0.03			0.25					(0.01)			2.18			0.03			0.32			Net charge-off/(recovery) rates	0.16			2.25			0.08			0.45					0.05			1.42			0.03			0.24

(a)Represents the impact to the allowance for loan losses upon the Firm's adoption of changes to the TDR accounting guidance on January 1, 2023. The adoption of this guidance eliminated the existing accounting and disclosure requirements for TDRs, including the requirement to measure the allowance using a discounted cash flow ("DCF") methodology. The Firm elected to change from an asset-specific allowance approach to its non-DCF, portfolio-based allowance approach for modified loans to troubled borrowers for all portfolios except collateral-dependent loans and nonaccrual risk-rated loans, for which the asset-specific allowance approach will continue to apply. Refer to Note 1 for further information.

(b)Includes ~~collateral dependent~~collateral-dependent loans, including ~~those considered TDRs and~~ those for which foreclosure is deemed probable, ~~modified PCD~~and nonaccrual risk-rated loans ~~and non-collateral dependent loans that have been modified~~for all periods presented. Prior periods also include non collateral-dependent TDRs or ~~are~~ reasonably expected TDRs and modified purchased credit deteriorated ("PCD") loans.

(c)At June 30, 2023, in addition to ~~be modified in a TDR. Also includes risk-rated loans that have been placed on nonaccrual status for~~ the ~~wholesale portfolio segment. The asset-specific~~ allowance for credit ~~card loans modified, or reasonably expected to be modified,~~losses in ~~a TDR is calculated based on~~ the ~~loans’ original contractual interest rates and does not consider any incremental penalty rates.~~table above, the Firm also had an allowance for credit losses of $18 million associated with certain accounts receivable in CIB.

~~(b)~~(d)~~At September~~As of June 30, ~~2022, excludes an~~2023 included$1.2 billion allowance for credit losses associated with ~~certain accounts receivable in CIB of $30 million.~~the First Republic acquisition.

~~(c)~~(e)The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

~~(d)Excludes the allowance for credit losses on investment securities of $61 million and $73 million as of September 30, 2022 and 2021, respectively.~~

7481

Allocation of allowance for loan losses

The table below presents a breakdown of the allowance for loan losses by loan class. Refer to Note 1112 for further information on loan classes.


		September 30, 2022				December 31, 2021					June 30, 2023				December 31, 2022
(in millions, except ratios)	(in millions, except ratios)	Allowance for loan losses		Percent of retained loans to total retained loans		Allowance for loan losses		Percent of retained loans to total retained loans		(in millions, except ratios)	Allowance for loan losses		Percent of retained loans to total retained loans		Allowance for loan losses		Percent of retained loans to total retained loans
Residential real estate	Residential real estate	$	849	22	%	$	817	22	%	Residential real estate	$	1,022	26	%	$	1,070	22	%
Auto and other	Auto and other	970		6		948		7		Auto and other	1,026		5		970		6
Consumer, excluding credit card	Consumer, excluding credit card	1,819		28		1,765		29		Consumer, excluding credit card	2,048		32		2,040		28
Credit card	Credit card	10,400		16		10,250		15		Credit card	11,600		15		11,200		17
Total consumer	Total consumer	12,219		44		12,015		45		Total consumer	13,648		47		13,240		45
Secured by real estate	Secured by real estate	1,559		12		1,495		12		Secured by real estate	2,548		13		1,782		12
Commercial and industrial	Commercial and industrial	3,226		15		1,881		14		Commercial and industrial	3,837		14		3,507		15
Other	Other	1,181		29		995		29		Other	1,947		27		1,197		28
Total wholesale	Total wholesale	5,966		56		4,371		55		Total wholesale	8,332		53		6,486		55
Total(a)	Total(a)	$	18,185	100	%	$	16,386	100	%	Total(a)	$	21,980	100	%	$	19,726	100	%

(a) As of June 30, 2023 included $1.1 billion allowance for loan losses associated with the First Republic acquisition, consisting of $377 million in Residential real estate, $290 million in Secured by real estate, and $404 million in Commercial and industrial.

7582

INVESTMENT PORTFOLIO RISK MANAGEMENT

Investment portfolio risk is the risk associated with the loss of principal or a reduction in expected returns on investments arising from the investment securities portfolio or from principal investments. The investment securities portfolio is predominantly held by Treasury and CIO in connection with the Firm’s balance sheet and asset-liability management objectives. Principal investments are predominantly privately-held financial instruments and are managed in the LOBs and Corporate. Investments are typically intended to be held over extended periods and, accordingly, the Firm has no expectation for short-term realized gains with respect to these investments.

Investment securities risk

Investment securities risk includes the exposure associated with a default in the payment of principal and interest. This risk is mitigated given that the investment securities portfolio held by Treasury and CIO predominantly consists of high-quality securities. At ~~September~~June 30, ~~2022,~~2023, the Treasury and CIO investment securities portfolio, net of the allowance for credit losses, was ~~$616.5~~$610.2 billion, and the average credit rating of the securities comprising the portfolio was AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings). Refer to Corporate segment results on pages ~~42-43~~45-46 and Note 910 for further information on the investment securities portfolio and internal risk ratings. Refer to Liquidity Risk Management on pages ~~51-56~~54-61 for further information on related liquidity risk. Refer to Market Risk Management on pages ~~77-81~~84-89 for further information on the market risk inherent in the portfolio.

Principal investment risk

Principal investments are typically privately-held financial instruments representing ownership interests or other forms of junior capital. In general, principal investments include tax-oriented investments and investments made to enhance or accelerate the Firm’s business strategies and exclude those that are consolidated on the Firm's balance sheets. These investments are made by dedicated investing businesses or as part of a broader business strategy. The Firm’s principal investments are managed by the LOBs and Corporate and are reflected within their respective financial results. The Firm’s investments will continue to evolve in line with its strategies, including the Firm’s commitment to support underserved communities and minority-owned businesses.

The table below presents the aggregate carrying values of the principal investment portfolios as ~~September~~of June 30, ~~2022~~2023 and December 31, ~~2021.~~2022.


(in billions)	(in billions)	September 30, 2022			December 31, 2021		(in billions)	June 30, 2023		December 31, 2022
Tax-oriented investments, primarily in alternative energy and affordable housing(a)	Tax-oriented investments, primarily in alternative energy and affordable housing(a)	$	23.8		$	23.2	Tax-oriented investments, primarily in alternative energy and affordable housing(a)	$	27.5	$	26.2
Private equity, various debt and equity instruments, and real assets(b)	Private equity, various debt and equity instruments, and real assets(b)	9.5		(a)	7.3		Private equity, various debt and equity instruments, and real assets(b)	11.4		10.8
Total carrying value	Total carrying value	$	33.3		$	30.5	Total carrying value	$	38.9	$	37.0

(a)As of June 30, 2023, included approximately $1.2 billion in tax-oriented investments in CIB associated with the First Republic acquisition.

(b)Includes the ~~Firm's~~Firm’s 40% ownership ~~stake~~ in C6 ~~Bank.~~Bank and 49% ownership in Viva Wallet.

Refer to page ~~132~~130 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a discussion of the Firm’s Investment Portfolio Risk Management governance and oversight.

7683

MARKET RISK MANAGEMENT

Market risk is the risk associated with the effect of changes in market factors such as interest and foreign exchange rates, equity and commodity prices, credit spreads or implied volatilities, on the value of assets and liabilities held for both the short and long term. Refer to Market Risk Management on pages ~~133-140~~131-138 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a discussion of the Firm’s Market Risk Management organization, market risk measurement, risk monitoring and control, and predominant business activities that give rise to market risk.

Models used to measure market risk are inherently imprecise and are limited in their ability to measure certain risks or to predict losses. This imprecision may be heightened when sudden or severe shifts in market conditions occur. For additional discussion on model uncertainty refer to Estimations and Model Risk Management on page ~~149~~148 of JPMorgan Chase’s ~~2021~~2022 Form 10-K.

Market Risk Management periodically reviews the Firm’s existing market risk measures to identify opportunities for enhancement, and to the extent appropriate, will calibrate those measures accordingly over time.

Value-at-risk

JPMorgan Chase utilizes value-at-risk (“VaR”), a statistical risk measure, to estimate the potential loss from adverse market moves in the current market environment. The Firm has a single VaR framework used as a basis for calculating Risk Management VaR and Regulatory VaR.

The Firm’s Risk Management VaR is calculated assuming a one-day holding period and an expected tail-loss methodology which approximates a 95% confidence level. For risk management purposes, the Firm believes this methodology provides a daily measure of risk that is closely aligned to risk management decisions made by the LOBs and Corporate and, along with other market risk measures, provides the appropriate information needed to respond to risk events. The Firm calculates separately a daily aggregated VaR in accordance with regulatory rules (“Regulatory VaR”), which is used to derive the Firm’s regulatory VaR-based capital requirements under Basel III.

The Firm’s VaR model calculations are periodically evaluated and enhanced in response to changes in the composition of the Firm’s portfolios, changes in market conditions, improvements in the Firm’s modeling techniques and measurements, and other factors. Such changes may affect historical comparisons of VaR results. Refer to Estimations and Model Risk Management on page ~~149~~148 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for information regarding model reviews and approvals.

Refer to page ~~135~~133 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further information regarding VaR, including the inherent limitations, and the key differences between Risk Management VaR and Regulatory VaR. Refer to JPMorgan Chase’s Basel III Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for additional information on Regulatory VaR and the other components of market risk regulatory capital for the Firm (e.g., VaR-based measure, stressed VaR-based measure and the respective backtesting). Refer to Other risk measures on pages ~~138-140~~136-138 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further information regarding nonstatistical market risk measures used by the Firm.

7784

The table below shows the results of the Firm’s Risk Management VaR measure using a 95% confidence level. VaR can vary significantly as positions change, market volatility fluctuates, and diversification benefits change.

Total VaR
Three months ended
September 30, 2022 June 30, 2022 September 30, 2021
(in millions) Avg. Min Max Avg. Min Max Avg. Min Max
CIB trading VaR by risk type
Fixed income $ 64 $ 45 $ 82 $ 60 $ 48 $ 79 $ 38 $ 30 $ 46
Foreign exchange 9 6 15 8 4 13 5 3 8
Equities 11 8 14 11 7 15 11 8 15
Commodities and other 14 11 20 14 12 17 11 9 13
Diversification benefit to CIB trading VaR (47) (a) NM (e) NM (e) (43) (a) NM (e) NM (e) (33) (a) NM (e) NM (e)
CIB trading VaR 51 36

69

50 38 66 32 22 44
Credit Portfolio VaR 10 (b)(c) 6 (b) 17 (b)(c) 17 (b)(c) 6 (b) 31 (b)(c) 5 4 7
Diversification benefit to CIB VaR (8) (a) NM (e) NM (e) (15) (a) NM (e) NM (e) (4) (a) NM (e) NM (e)
CIB VaR 53 38

71

52 38 70 33 22 45
CCB VaR 6 4 11 5 4 6 6 4 10
Corporate and other LOB VaR 12 (d) 10

13 10 9 11 17 (d) 15 19
Diversification benefit to other VaR (4) (a) NM (e) NM (e) (3) (a) NM (e) NM (e) (4) (a) NM (e) NM (e)
Other VaR 14 11

17

12 10 14 19 16 23
Diversification benefit to CIB and other VaR (13) (a) NM (e) NM (e) (10) (a) NM (e) NM (e) (16) (a) NM (e) NM (e)
Total VaR $ 54 $ 40

$ 71

$ 54 $ 41 $ 71 $ 36 $ 24 $ 50


Total VaR
	Three months ended
	June 30, 2023							March 31, 2023						June 30, 2022
(in millions)	Avg.			Min		Max		Avg.		Min		Max		Avg.			Min		Max
CIB trading VaR by risk type
Fixed income	$	57		$	50	$	66	$	56	$	45	$	71	$	60		$	48	$	79
Foreign exchange	12			7		24		10		6		17		8			4		13
Equities	8			5		11		7		5		10		11			7		15
Commodities and other	12			8		17		15		11		19		14			12		17
Diversification benefit to CIB trading VaR(a)	(48)			NM		NM		(44)		NM		NM		(43)			NM		NM
CIB trading VaR	41			31		50		44		34		55		50			38		66
Credit Portfolio VaR(b)	14			11		18		11		8		17		17			6		31		(e)
Diversification benefit to CIB VaR(a)	(11)			NM		NM		(10)		NM		NM		(15)			NM		NM
CIB VaR	44			34		55		45		35		58		52			38		70
CCB VaR	9		(d)	6		14		11		6		15		5		(d)	4		6
Corporate and other LOB VaR(c)	13			11		15		15		13		17		10			9		11
Diversification benefit to other VaR(a)	(7)			NM		NM		(8)		NM		NM		(3)			NM		NM
Other VaR	15			13		19		18		14		22		12			10		14
Diversification benefit to CIB and other VaR(a)	(12)			NM		NM		(16)		NM		NM		(10)			NM		NM
Total VaR	$	47		$	36	$	56	$	47	$	37	$	57	$	54		$	41	$	71

(a)~~Diversification~~Diversification benefit represents the difference between the portfolio VaR and the sum of its individual components. This reflects the non-additive nature of VaR due to imperfect correlation across LOBs, Corporate, and risk types. For maximum and minimum VaR, diversification benefit is not meaningful as the maximum and minimum VaR for each portfolio may have occurred on different trading days than the components.

(b)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. In the first quarter of 2022, in line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also removed to maintain consistency. This exposure is now reflected in other sensitivity-based measures.

(c)Corporate and other LOB VaR includes a legacy private equity position in Corporate which is publicly traded.

(d)The increase in CCB VaR is driven by interest rate volatility impacting Home Lending warehouse loans, MSR, and related hedges.

(e)For the ~~three months~~period ended ~~March 31,~~June 30, 2022, maximum Credit Portfolio VaR remained elevated due to the effects of nickel price increases and the associated volatility in the nickel market ~~resulted in elevated average and maximum Credit Portfolio VaR~~ which ~~remained elevated for~~occurred during the period ended June 30, 2022. For the three months ended September 30, 2022, average and maximum Credit Portfolio VaR decreased driven by a reduction in nickel-related exposure when compared to the three months ended June 30,first quarter of 2022.

~~(d)The decrease in Corporate and other LOB VaR was driven by lower market values for a legacy private equity position which is publicly traded.~~

~~(e)The maximum and minimum VaR for each portfolio may have occurred on different trading days than the components and consequently diversification benefit is not meaningful.~~

Quarter over quarter results

Average total VaR was flat for the three months ended ~~September~~June 30, ~~2022~~2023, when compared with ~~June 30, 2022,~~March 31, 2023, reflecting ~~increased market volatility impacting Fixed~~increases in fixed income offset by ~~risk reductions within CIB and Credit Portfolio VaR.~~market volatility relating to commodities rolling out of the one-year historical look-back period.

Year over year results

Average total VaR ~~increased~~decreased by ~~$18~~$7 million for the three months ended ~~September~~June 30, ~~2022,~~2023, compared with the same period in the prior ~~year. This increase was~~year predominantly driven by ~~market volatility~~risk reductions impacting ~~Fixed~~Credit Portfolio VaR as well as fixed income.

The following graph presents daily Risk Management VaR for the five trailing quarters. ~~The movement in VaR in March 2022 was driven by changes in nickel-related counterparty exposure in the Firm's Credit portfolio.~~

Daily Risk Management VaR

Third Quarter
2021

Fourth Quarter
2021

First Quarter
2022

Second Quarter
2022

Third Quarter
2022

Fourth Quarter
2022

First Quarter
2023

Second Quarter
2023

7885

VaR backtesting

The Firm performs daily VaR model backtesting, which compares the daily Risk Management VaR results with the daily gains and losses that are utilized for VaR backtesting purposes. The gains and losses depicted in the chart below do not reflect the Firm’s reported revenue as they exclude ~~select~~certain components of total net revenue, such as those associated with the execution of new transactions (i.e., intraday client-driven trading and intraday risk management activities), fees, commissions, ~~certain~~other valuation adjustments and net interest income. These excluded components of total net revenue may more than offset the backtesting gain or loss on a particular day. The definition of backtesting gains and losses above is consistent with the requirements for backtesting under Basel III capital rules.

A backtesting exception occurs when the daily backtesting loss exceeds the daily Risk Management VaR for the prior day. Under the Firm’s Risk Management VaR methodology, assuming current changes in market values are consistent with the historical changes used in the simulation, the Firm would expect to incur VaR backtesting exceptions ~~on average~~ five times every 100 trading ~~days.~~days on average. The number of VaR backtesting exceptions observed can differ from the statistically expected number of backtesting exceptions if the current level of market volatility is materially different from the level of market volatility during the 12 months of historical data used in the VaR calculation.

For the 12 months ended ~~September~~June 30, ~~2022,~~2023, the Firm posted backtesting gains on ~~137~~134 of the ~~261~~259 days, and observed 2515 VaR backtesting ~~exceptions due to market volatility that was materially higher than the levels realized in the historical data used for the VaR calculation.~~exceptions. For the three months ended ~~September~~June 30, ~~2022,~~2023, the Firm posted backtesting gains on 3334 of the 6665 days, and observed ~~seven~~two VaR backtesting ~~exceptions predominantly driven by interest rate volatility.~~exceptions.

The following chart presents the distribution of Firmwide daily backtesting gains and losses for the trailing 12 months and three months ended ~~September~~June 30, ~~2022.~~2023. The daily backtesting losses are displayed as a percentage of the corresponding daily Risk Management VaR. The count of days with backtesting losses are shown in aggregate, in fifty percentage point intervals. Backtesting exceptions are displayed within the intervals that are greater than one hundred percent. The results in the chart below differ from the results of backtesting disclosed in the Market Risk section of the Firm’s Basel III Pillar 3 Regulatory Capital Disclosures reports, which are based on Regulatory VaR applied to the Firm’s covered positions.

Distribution of Daily Backtesting Gains and Losses

7986

~~Earnings-at-risk~~Structural interest rate risk management

The effect of interest rate exposure on the Firm’s reported net income is important as interest rate risk represents one of the Firm’s significant market risks. Interest rate risk arises not only from trading activities but also from the Firm’s traditional banking activities, which include extension of loans and credit facilities, taking deposits, issuing debt and the investment securities portfolio. ~~Refer to the table on page 134 of JPMorgan Chase’s 2021 Form 10-K for a summary by LOB and Corporate, identifying positions included in earnings-at-risk.~~

One way that the Firm evaluates its structural interest rate risk is through earnings-at-risk. Earnings-at-risk estimates the Firm’s interest rate exposure for a given interest rate scenario. It is presented as a sensitivity to a baseline, which includes net interest income and certain interest rate sensitive fees. The baseline uses market interest rates and in the case of deposits, pricing assumptions. The Firm conducts simulations of changes to this baseline for interest rate-sensitive assets and liabilities denominated in U.S. dollars and other currencies (“non-U.S. dollar” currencies). These simulations primarily include retained loans, deposits, deposits with banks, investment securities, long-term debt and any related interest rate hedges, and funds transfer pricing of other positions in risk management VaR and other sensitivity-based measures as described on page ~~134~~132 of JPMorgan Chase’s ~~2021~~2022 Form 10-K.

Earnings-at-risk scenarios estimate the potential change to a net interest income baseline, over the following 12 months utilizing multiple assumptions. These scenarios include a parallel shift involving changes to both short-term and long-term rates by an equal amount; a steeper yield curve involving holding short-term rates constant and increasing long-term rates; and a flatter yield curve involving increasing short-term rates and holding long-term rates constant or holding short-term rates constant and decreasing long-term rates. These scenarios consider many different factors, including:

•The impact on exposures as a result of instantaneous changes in interest rates from baseline rates.

•Forecasted balance sheet, as well as modeled prepayment and reinvestment behavior, but excluding assumptions about actions that could be taken by the Firm or its clients and customers in response to ~~any such~~ instantaneous rate changes. Mortgage prepayment assumptions are based on the interest rates used in the scenarios compared with underlying contractual rates, the time since origination, and other factors which are updated periodically based on historical experience. Deposit forecasts ~~used~~are a key assumption in the Firm's earnings-at-risk. The baseline ~~and scenarios include~~reflects certain assumptions relating to the reversal of Quantitative ~~Easing.~~Easing that are highly uncertain and require management judgment. Therefore, the actual amount of deposits held by the Firm, at any particular time, could be impacted by actions the Federal Reserve may take as part of monetary policy, including through the use of the Reverse Repurchase Facility. In addition, there are other factors that impact the amount of deposits held at the Firm such

as the level of loans across the industry and competition for deposits.

•The pricing sensitivity of deposits, known as deposit betas, represent the amount by which deposit rates paid could change upon a given change in market interest rates. As part of the Firm's continuous evaluation and periodic enhancements to its earnings-at-risk calculations, the Firm updated its model in the second quarter of 2023 to incorporate deposit repricing lags impacting both consumer and wholesale deposits. The model change incorporated observed pricing and customer behavior in both rising and falling interest rate environments. Actual deposit rates paid ~~in these scenarios~~may differ from ~~actual deposit rates paid,~~the modeled assumptions, primarily due to ~~repricing lags~~customer behavior and ~~other factors.~~competition for deposits.

The Firm’s earnings-at-risk scenarios are periodically evaluated and enhanced in response to changes in the composition of the Firm’s balance sheet, changes in market conditions, improvements in the Firm’s simulation and other factors. While a relevant measure of the Firm’s interest rate exposure, the earnings-at-risk analysis does not represent a forecast of the Firm’s net interest ~~income (Refer~~income. Refer to Outlook on page 8 for additional ~~information).~~information.

The Firm’s U.S. dollar sensitivities are presented in the table below.

(in billions)

September 30, 2022

December 31, 2021

(in billions)

June 30, 2023

(a)

December 31, 2022

Parallel shift:

+100 bps shift in rates

(2.1)

5.0

+100 bps shift in rates

2.5

(2.0)

-100 bps shift in rates

1.3

(a)

-100 bps shift in rates

(2.2)

2.4

Steeper yield curve:

+100 bps shift in long-term rates

0.7

1.8

+100 bps shift in long-term rates

0.6

0.8

-100 bps shift in short-term rates

2.1

(a)

-100 bps shift in short-term rates

(1.6)

3.2

Flatter yield curve:

+100 bps shift in short-term rates

(2.8)

3.2

+100 bps shift in short-term rates

1.8

(2.8)

-100 bps shift in long-term rates

(0.8)

(a)

-100 bps shift in long-term rates

(0.6)

(0.9)

(a)~~Given~~Reflects the ~~level~~impact of ~~market interest rates, these scenarios were~~the aforementioned model update to incorporate deposit repricing lags. Prior periods have not ~~considered~~been revised.

In the absence of the model update to ~~be meaningful~~incorporate deposit repricing lags in the second quarter of 2023, the Firm's U.S. dollar sensitivities as of ~~December 31, 2021.~~June 30, 2023, would have been lower by $4.2 billion to the +100 basis points shift in short-term and parallel rate scenarios and higher by $4.4 billion to the -100 basis points shift in short-term and parallel rate scenarios.

~~The~~In addition, the change in the Firm’s U.S. dollar sensitivities as of ~~September~~June 30, ~~2022~~2023 compared to December 31, ~~2021~~2022 reflected ~~updates to the Firm’s baseline for higher interest rates and higher corresponding modeled deposit betas, as well as~~ the impact of changes in the Firm’s balance ~~sheet.~~sheet including the impact of the First Republic acquisition.

As of ~~September~~June 30, ~~2022,~~2023, the Firm’s sensitivity to the +/-100 basis points parallel ~~and short-term~~ shift in ~~rates is primarily the result of a greater impact from liabilities repricing compared to the impact of assets repricing, while a +/-100~~ ~~basis points~~ ~~shift in long-term~~ rates is primarily the result of a greater impact from assets repricing compared to the impact of liabilities repricing.

The Firm continues to convert certain operations, and to integrate products associated with the First Republic acquisition to align with the Firm’s business and operations. The Firm also continues to evaluate to which segments certain products associated with the First Republic acquisition, including deposits, should be allocated. Accordingly, earnings-at-risk results may be impacted in future periods.

The Firm’s non-U.S. dollar sensitivities are presented in the table below.

(in billions) September 30, 2022 December 31, 2021
Parallel shift:
+100 bps shift in rates $ 0.7 $ 0.8
-100 bps shift in rates (0.7) NM (a)
Steeper yield curve:
-100 bps shift in short-term rates (0.6) NM (a)
Flatter yield curve:
+100 bps shift in short-term rates 0.6 0.8

~~(a)Given the level of market interest rates, these scenarios were not considered to be meaningful as of December 31, 2021.~~


(in billions)	June 30, 2023		December 31, 2022
Parallel shift:
+100 bps shift in rates	$	0.8	$	0.7
-100 bps shift in rates	(0.8)		(0.6)
Steeper yield curve:
-100 bps shift in short-term rates	(0.7)		(0.6)
Flatter yield curve:
+100 bps shift in short-term rates	0.8		0.6

The results of the non-U.S. dollar interest rate scenario involving a steeper/flatter yield curve with long-term rates increasing/decreasing by 100 basis points and short-term rates staying at current levels were not material to the Firm’s earnings-at-risk at ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021~~2022.

In addition to earnings-at-risk, the Firm also measures Economic Value Sensitivity (EVS). EVS stress tests the longer-term economic value of equity by measuring the sensitivity of the Firm’s current balance sheet, primarily retained loans, deposits, debt and investment securities as well as related hedges, under various interest rate scenarios. In accordance with the CTC structural interest rate risk policy, the Firm has established limits on EVS as a percentage of TCE.

Refer to Other Risk Measures on pages 136–138 of JPMorgan Chase’s 2022 Form 10-K for additional information.

8088

Other sensitivity-based measures

The Firm quantifies the market risk of certain debt and equity and credit and funding-related exposures by assessing the potential impact on net revenue, other comprehensive income (“OCI”) and noninterest expense due to changes in relevant market variables. Refer to the predominant business activities that give rise to market risk on page ~~140~~138 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for additional information on the positions captured in other sensitivity-based measures.

The table below represents the potential impact to net revenue, OCI or noninterest expense for market risk-sensitive instruments that are not included in VaR or earnings-at-risk. Where appropriate, instruments used for hedging purposes are reported net of the positions being hedged. The sensitivities disclosed in the table below may not be representative of the actual gain or loss that would have been realized at ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, as the movement in market parameters across maturities may vary and are not intended to imply management’s expectation of future changes in these sensitivities.

Gain/(loss) (in millions)

September 30, 2022

December 31, 2021

Gain/(loss) (in millions)

June 30, 2023

December 31, 2022

Activity

Description

Sensitivity measure

Activity

Description

Sensitivity measure

Debt and equity(a)

Asset Management activities

Consists of seed capital and related hedges; fund co-investments(c); and certain deferred compensation and related hedges(d)

10% decline in market value

(49)

(69)

Asset Management activities

Consists of seed capital and related hedges; fund co-investments(c); and certain deferred compensation and related hedges(d)

10% decline in market value

(58)

(56)

Other debt and equity

Consists of certain real estate-related fair value option elected loans, privately held equity and other investments held at fair value(c)

10% decline in market value

(1,046)

(971)

Other debt and equity

Consists of certain real estate-related fair value option elected loans, privately held equity and other investments held at fair value(c)

10% decline in market value

(1,016)

(1,046)

Credit- and funding-related exposures

Non-USD LTD cross-currency basis

Represents the basis risk on derivatives used to hedge the foreign exchange risk on the non-USD LTD(e)

1 basis point parallel tightening of cross currency basis

(12)

(16)

Non-USD LTD cross-currency basis

Represents the basis risk on derivatives used to hedge the foreign exchange risk on the non-USD LTD(e)

1 basis point parallel tightening of cross currency basis

(11)

(12)

Non-USD LTD hedges foreign currency (“FX”) exposure

Primarily represents the foreign exchange revaluation on the fair value of the derivative hedges(e)

10% depreciation of currency

(8)

Non-USD LTD hedges foreign currency (“FX”) exposure

Primarily represents the foreign exchange revaluation on the fair value of the derivative hedges(e)

10% depreciation of currency

Derivatives – funding spread risk

Impact of changes in the spread related to derivatives FVA(c)

1 basis point parallel increase in spread

(4)

(7)

Derivatives – funding spread risk

Impact of changes in the spread related to derivatives FVA(c)

1 basis point parallel increase in spread

(4)

CVA - counterparty credit risk(b)

Credit risk component of CVA and associated hedges

10% credit spread widening

(1)

N/A

CVA - counterparty credit risk(b)

Credit risk component of CVA and associated hedges

10% credit spread widening

—

(1)

Fair value option elected liabilities – funding spread risk

Impact of changes in the spread related to fair value option elected liabilities DVA(e)

1 basis point parallel increase in spread

Fair value option elected liabilities – funding spread risk

Impact of changes in the spread related to fair value option elected liabilities DVA(e)

1 basis point parallel increase in spread

Fair value option elected liabilities – interest rate sensitivity

Interest rate sensitivity on fair value option elected liabilities resulting from a change in the Firm’s own credit spread(e)

1 basis point parallel increase in spread

(2)

(3)

Fair value option elected liabilities – interest rate sensitivity

Interest rate sensitivity on fair value option elected liabilities resulting from a change in the Firm’s own credit spread(e)

1 basis point parallel increase in spread

—

Interest rate sensitivity related to risk management of changes in the Firm’s own credit spread on the fair value option elected liabilities noted above(c)

1 basis point parallel increase in spread

Interest rate sensitivity related to risk management of changes in the Firm’s own credit spread on the fair value option elected liabilities noted above(c)

1 basis point parallel increase in spread

—

(a)Excludes equity securities without readily determinable fair values that are measured under the measurement alternative. Refer to Note 2 for additional information.

(b)In the first quarter of 2022, in line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also removed to maintain consistency. This exposure is now reflected in other sensitivity-based measures.

(c)Impact recognized through net revenue.

(d)Impact recognized through noninterest expense.

(e)Impact recognized through OCI.

8189

COUNTRY RISK MANAGEMENT

The Firm, through its LOBs and Corporate, may be exposed to country risk resulting from financial, economic, political or other significant developments which adversely affect the value of the Firm’s exposures related to a particular country or set of countries. The Country Risk Management group actively monitors the various portfolios which may be impacted by these developments and measures the extent to which the Firm’s exposures are diversified given the Firm’s strategy and risk tolerance relative to a country.

Refer to pages ~~141-142~~139-140 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further discussion of the Firm’s country risk management.

~~Sources and measurement~~

The Firm is exposed to country risk through its lending and deposits, investing, and market-making activities, whether cross-border or locally funded. Country exposure includes activity with both government and private-sector entities in a country.

~~Under the Firm’s internal country risk management approach, attribution of exposure to an individual country is based on the country where the largest proportion of the assets of the~~counterparty, issuer, obligor or guarantor are located or where the largest proportion of its revenue is derived, which may be different than the domicile (i.e. legal residence) or country of incorporation.

Individual country exposures reflect an aggregation of the Firm’s risk to an immediate default, with zero recovery, of the counterparties, issuers, obligors or guarantors attributed to that country. Activities which result in contingent or indirect exposure to a country are not included in the country exposure measure (for example, providing clearing services or secondary exposure to collateral on securities financing receivables).

Assumptions are sometimes required in determining the measurement and allocation of country exposure, particularly in the case of certain non-linear or index products, or where the nature of the counterparty, issuer, obligor or guarantor is not suitable for attribution to an individual country. The use of different measurement approaches or assumptions could affect the amount of reported country exposure.

~~Under the Firm’s internal country risk measurement framework:~~

•~~Lending exposures are measured at the total committed amount (funded and unfunded), net of the allowance for credit losses and eligible cash and marketable securities collateral received~~

•~~Deposits are measured as the cash balances placed with central banks, commercial banks, and other financial institutions~~

•~~Securities financing exposures are measured at their receivable balance, net of eligible collateral received~~

•~~Debt and equity securities are measured at the fair value of all positions, including both long and short positions~~

•~~Counterparty exposure on derivative receivables is measured at the derivative’s fair value, net of the fair value of the eligible collateral received~~

•Credit derivatives exposure is measured at the net notional amount of protection purchased or sold for the same underlying reference entity, inclusive of the fair value of the derivative receivable or payable; reflecting the manner in which the Firm manages these exposures

~~The Firm’s internal country risk reporting differs from the reporting provided under the FFIEC bank regulatory requirements.~~

Risk Reporting

The following table presents the Firm’s top 20 exposures by country (excluding the U.S.) as of ~~September~~June 30, ~~2022~~2023 and their comparative exposures as of December 31, ~~2021.~~2022. The selection of countries represents the Firm’s largest total exposures by individual country, based on the Firm’s internal country risk management approach, and does not represent the Firm’s view of any existing or potentially adverse credit conditions. Country exposures may fluctuate from period to period due to client activity and market flows.

The ~~increase~~increases in ~~exposure~~exposures to Germany and the ~~decrease in exposure to the U.K.~~United Kingdom were primarily ~~due to changes~~driven by increases in cash ~~placements~~placed with the central banks of those countries, ~~driven by balance sheet and liquidity management activities.~~due to client-driven activities, including as a result of changes in interest rates.

The decrease in exposure to Australia was ~~largely~~ driven by a reduction in cash placed with the central bank of Australia due to client-driven ~~market-making~~ activities ~~and lower client cash deposits following recent~~resulting from changes in interest ~~rate increases.~~rates.

The Firm continues to monitor potential impacts to the Firm associated with the war in Ukraine. As of ~~September~~June 30, ~~2022,~~2023, exposure to Russia was approximately ~~$600~~$430 million. This amount excludes certain ~~client~~ deposits placed on behalf of clients at ~~depository institutions.~~the Depository Insurance Agency of Russia.


Top 20 country exposures (excluding the U.S.)(a)	Top 20 country exposures (excluding the U.S.)(a)											Top 20 country exposures (excluding the U.S.)(a)
(in billions)	(in billions)	September 30, 2022									December 31, 2021(e)	(in billions)		June 30, 2023												December 31, 2022(f)
			Lending and deposits(b)		Trading and investing(c)		Other(d)		Total exposure			Total exposure				Deposits with banks(b)		Lending(c)		Trading and investing(d)		Other(e)		Total exposure			Total exposure
Germany	Germany		$	98.6	$	5.9	$	0.3	$	104.8		$	61.7		Germany	$	94.0	$	12.5	$	5.5	$	0.3	$	112.3		$	93.2
United Kingdom	United Kingdom		60.1		9.9		1.9		71.9			96.4			United Kingdom	44.1		25.6		17.4		1.9		89.0			70.1
Japan	Japan		31.5		8.7		0.2		40.4			45.5			Japan	32.7		2.7		7.7		0.3		43.4			55.8
Australia			16.2		4.4		—		20.6			39.1
France			11.7		2.8		4.1		18.6			14.0
Switzerland			12.9		1.4		2.7		17.0			20.9
Brazil	Brazil		7.7		8.3		—		16.0			12.0			Brazil	1.9		4.6		11.2		—		17.7			17.8
Canada	Canada		13.0		2.6		0.2		15.8			16.9			Canada	2.4		10.7		3.0		0.2		16.3			14.4
Australia															Australia	5.0		6.3		3.0		—		14.3			25.7
Switzerland															Switzerland	7.6		3.3		1.4		1.7		14.0			15.3
France															France	0.4		10.7		0.1		1.4		12.6			18.1
China	China		9.6		5.1		0.1		14.8			18.6			China	3.3		5.0		4.1		—		12.4			13.7
Belgium															Belgium	6.7		1.7		1.4		—		9.8			9.2
Singapore	Singapore		6.6		3.7		0.5		10.8			12.3			Singapore	1.8		3.9		3.6		0.2		9.5			9.9
India															India	1.2		3.6		3.9		0.6		9.3			9.0
South Korea	South Korea		4.7		4.5		0.1		9.3			8.7			South Korea	1.0		3.8		3.5		0.2		8.5			10.0
Netherlands															Netherlands	0.1		6.4		0.6		0.2		7.3			7.1
Mexico															Mexico	1.0		4.3		2.0		—		7.3			5.4
Saudi Arabia															Saudi Arabia	0.8		4.0		1.8		—		6.6			7.9
Spain	Spain		8.4		0.8		—		9.2			10.1			Spain	0.4		5.1		0.9		—		6.4			5.8
India			5.3		2.9		0.7		8.9			14.7
Saudi Arabia			5.7		2.4		—		8.1			9.1
Belgium			6.3		1.3		—		7.6			6.8
Hong Kong SAR															Hong Kong SAR	2.3		1.4		0.8		0.4		4.9			4.5
Luxembourg	Luxembourg		4.7		1.5		—		6.2			11.5			Luxembourg	0.8		2.6		1.3		—		4.7			5.3
Netherlands			6.2		(0.4)		0.4		6.2			6.8
Malaysia			4.6		0.7		0.3		5.6			2.7
Mexico			4.6		0.3		—		4.9			4.9
Hong Kong SAR			2.6		1.2		—		3.8			5.9
Sweden															Sweden	1.2		3.4		(0.1)		—		4.5			4.4

(a)Country exposures presented in the table reflect 88% of total Firmwide non-U.S. exposure, where exposure is attributed to an individual country atbased on the Firm’s internal country risk management approach, as of both ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021, respectively.~~2022.

(b)~~Lending and deposits includes~~Predominantly represents cash placed with central banks.

(c)Includes loans and accrued interest receivable, lending-related commitments (net of eligible collateral and the allowance for credit losses)~~, deposits with banks (including central banks), acceptances, other monetary assets, and issued letters of credit net of risk participations.~~. Excludes intra-day and operating exposures, such as those from settlement and clearing activities.

~~(c)~~(d)Includes market-making inventory, investment securities, and counterparty exposure on derivative and securities financings net of eligible collateral and hedging. Includes exposure from single reference entity (“single-name”), index and other multiple reference entity transactions for which one or more of the underlying reference entities is in a country listed in the above table.

~~(d)~~(e)~~Largely represents~~Includes physical ~~commodity inventory.~~commodities inventory and clearing house guarantee funds.

~~(e)~~(f)The country rankings presented in the table as of December 31, ~~2021,~~2022, are based on the country rankings of the corresponding exposures at ~~September~~June 30, ~~2022,~~2023, not actual rankings of such exposures atas of December 31, ~~2021.~~2022.

~~OPERATIONAL RISK MANAGEMENT~~

Operational risk is the risk of an adverse outcome resulting from inadequate or failed internal processes or systems, human factors, or external events impacting the Firm’s processes or systems. Operational Risk includes compliance, conduct, legal, and estimations and model risk. Operational risk is inherent in the Firm’s activities and can manifest itself in various ways, including fraudulent acts, business disruptions (including those caused by extraordinary events beyond the Firm's control), cyberattacks, inappropriate employee behavior, failure to comply with applicable laws, rules and regulations or failure of vendors or other third party providers to perform in accordance with their agreements. Operational Risk Management attempts to manage operational risk at appropriate levels in light of the Firm’s financial position, the characteristics of its businesses, and the markets and regulatory environments in which it operates. Refer to Operational Risk Management on pages 143-149 of JPMorgan Chase’s 2021 Form 10-K for a discussion of the Firm’s Operational Risk Management. Details on other select examples of operational risks are provided below.

In response to the war in Ukraine, numerous sanctions have been imposed on Russia and Russia-associated entities and individuals by various governments around the world, including the authorities in the U.S., the U.K. and the EU. These sanctions are complex and continue to evolve. The Firm continues to face increased operational risk associated with interpreting and maintaining these complex compliance programs. To manage this increased risk, the Firm implemented additional controls reasonably designed to mitigate the risk of non-compliance and to prevent dealing with sanctioned persons or in property subject to sanctions, as well as to block or restrict payments as required by the applicable regulations.

~~Business and technology resiliency risk~~

~~Disruptions can occur due to forces beyond the Firm’s control such as the spread of infectious diseases~~ or pandemics, severe weather, power or telecommunications loss, failure of a third party to provide expected services, cyberattacks and terrorism. The Firmwide Business Resiliency Program is designed to enable the Firm to prepare for, adapt to, withstand and recover from business disruptions including occurrence of an extraordinary event beyond its control that may impact critical business functions and supporting assets (i.e., staff, technology, facilities and third parties). The program includes governance, awareness training, planning and testing of recovery strategies, as well as strategic and tactical initiatives to identify, assess, and manage business interruption and public safety risks.

~~Cybersecurity Risk~~

The Firm continues to face increased risk of cyber attacks due to potential retaliation for the sanctions imposed as a result of the war in Ukraine. The Firm implemented additional precautionary measures and controls reasonably designed to address this increased risk, such as enhanced threat monitoring. There can be no assurance that the measures taken by the Firm to protect against cybersecurity breaches will provide absolute security against cyber attacks.

8490

CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM

JPMorgan Chase’s accounting policies and use of estimates are integral to understanding its reported results. The Firm’s most complex accounting estimates require management’s judgment to ascertain the appropriate carrying value of assets and liabilities. The Firm has established policies and control procedures intended to ensure that estimation methods, including any judgments made as part of such methods, are well-controlled, independently reviewed and applied consistently from period to period. The methods used and judgments made reflect, among other factors, the nature of the assets or liabilities and the related business and risk management strategies, which may vary across the Firm’s businesses and portfolios. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The Firm believes its estimates for determining the carrying value of its assets and liabilities are appropriate. The following is a brief description of the Firm’s critical accounting estimates involving significant judgments.

Allowance for credit losses

The Firm’s allowance for credit losses represents management’s estimate of expected credit losses over the remaining expected life of the Firm’s financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses ~~comprises:~~generally consists of:

•The allowance for loan losses, which covers the Firm’s retained loan portfolios (scored and risk-rated),.

•The allowance for lending-related commitments, which is reflected in accounts payable and other liabilities on the Consolidated balance sheets, and

•The allowance for credit losses on investment ~~securities.~~securities, which is reflected in investment securities on the Consolidated balance sheets.

The allowance for credit losses involves significant judgment on a number of matters including development and weighting of macroeconomic forecasts, incorporation of historical loss experience, assessment of risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life. Refer to Note 10 and Note 13 of JPMorgan Chase's ~~2021~~2022 Form 10-K for further information on these judgments as well as the Firm’s policies and methodologies used to determine the Firm’s allowance for credit losses; and refer to Allowance for credit losses on pages ~~73-75~~80-82 and Note 1213 of this Form 10-Q for further information.

One of the most significant judgments involved in estimating the Firm’s allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the eight-quarter forecast period within the Firm’s methodology. The eight-quarter forecast incorporates hundreds of ~~MEVs~~macroeconomic variables ("MEVs") that are relevant for exposures across the Firm, with modeled credit losses being driven primarily by a subset of less than twenty

variables. The specific variables that have the greatest effect on the modeled losses of each portfolio vary by portfolio and geography.

•Key MEVs for the consumer portfolio include regional U.S. unemployment ~~HPI~~ and ~~U.S. real GDP.~~HPI.

•Key MEVs for the wholesale portfolio include U.S. unemployment, U.S. real GDP, U.S. ~~unemployment,~~equity prices, U.S. ~~equity prices,~~interest rates, corporate credit spreads, oil prices, commercial real estate prices and HPI.

Changes in the Firm’s assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.

As a result of the First Republic acquisition, the Firm recorded an allowance for credit losses for the loans acquired and lending-related commitments assumed as of May 1, 2023. Given the differences in risk rating methodologies for the First Republic Portfolio, and the ongoing integration of products and systems, the allowance for credit losses for the acquired wholesale portfolio was measured based on other facilities underwritten by the Firm with similar risk characteristics and not based on modeled estimates. As such, the First Republic wholesale portfolio is excluded from the modeled estimates sensitivity analysis below. The allowance for credit losses for predominantly all of the consumer portfolio was measured using the Firm’s modeled approach, as the consumer portfolio is predominantly residential real estate that has more commonly defined risk characteristics including loan to value ratio and credit score, and therefore is reflected in the sensitivity analysis below. Refer to Note 28 for additional information on the First Republic acquisition.

It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses. Changes in the factors and inputs considered may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others.

To consider the impact of a hypothetical alternate macroeconomic forecast, the Firm compared the modeled credit losses determined using its central and relative adverse macroeconomic scenarios, which are two of the five scenarios considered in estimating the allowances for loan losses and lending-related commitments. The central and relative adverse scenarios each included a full suite of MEVs, but differed in the levels, paths and peaks/troughs of those variables over the eight-quarter forecast period.

For example, compared to the Firm’s central scenario shown on page 7380 and in Note ~~12,~~13, the Firm’s relative adverse ~~scenario~~scen

ario assumes an elevated U.S. unemployment rate, averaging approximately ~~2.2%~~1.6% higher

over the eight-quarter forecast, with a peak difference of

~~3.0%~~2.2% in the ~~third~~first quarter of ~~2023;~~2024; lower

U.S. real GDP with a slower recovery, remaining approximately ~~4.2%~~3.1% lower at the end of the eight-quarter forecast, with a peak difference of approximately ~~4.9%~~3.4% in the third quarter of ~~2023;~~2024; and lower national HPI with a peak difference of approximately ~~13.6%~~10.5% in the ~~second~~first quarter of ~~2024.~~2025.

This analysis is not intended to estimate expected future changes in the allowance for credit losses, for a number of reasons, including:

•The allowance as of ~~September~~June 30, ~~2022,~~2023, reflects credit losses beyond those estimated under the central scenario due to the weight placed on the adverse scenarios.

•The impacts of changes in many MEVs are both interrelated and nonlinear, so the results of this analysis cannot be simply extrapolated for more severe changes in macroeconomic variables.

•Expectations of future changes in portfolio composition and borrower behavior can significantly affect the allowance for credit losses.

To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of ~~September~~June 30, ~~2022,~~2023, the Firm compared the modeled estimates under its relative adverse scenario to its central scenario. Without considering offsetting or correlated effects in other qualitative components of the Firm’s allowance for credit losses, the comparison between these two scenarios for the exposures below reflect the following differences:

•An increase of approximately ~~$500~~$750 million for residential real estate loans and lending-related commitments, including the First Republic portfolios

•An increase of approximately ~~$2.5~~$2.4 billion for credit card loans

•▪An increase of approximately ~~$4.2~~$3.8 billion for wholesale loans and lending-related commitments, excluding the First Republic portfolios.

This analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall allowance for credit losses as it does not reflect any potential changes in other adjustments to the quantitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these modeled lifetime loss estimates based on then-current circumstances and conditions.

Recognizing that forecasts of macroeconomic conditions are inherently uncertain, particularly in light of the recent economic conditions, the Firm believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and appropriate for the period ended ~~September~~June 30, ~~2022.~~2023.

Fair value

JPMorgan Chase carries a portion of its assets and liabilities at fair value. The majority of such assets and liabilities are measured at fair value on a recurring basis, including derivatives, structured note products and certain securities financing agreements. Certain assets and liabilities are measured at fair value on a nonrecurring basis, including certain mortgage, home equity and other loans, where the carrying value is based on the fair value of the underlying collateral.

Assets measured at fair value

The following table includes the Firm’s assets measured at fair value and the portion of such assets that are classified within level 3 of the fair value hierarchy. Refer to Note 2 for further information.


September 30, 2022 (in billions, except ratios)		Total assets at fair value		Total level 3 assets
June 30, 2023 (in millions, except ratios)							June 30, 2023 (in millions, except ratios)	Total assets at fair value		Total level 3 assets
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	$	299.2	$	—		Federal funds sold and securities purchased under resale agreements	$	322,579	$	—
Securities borrowed	Securities borrowed	67.3		—			Securities borrowed	55,905		—
Trading assets:	Trading assets:						Trading assets:
Trading–debt and equity instruments	Trading–debt and equity instruments	413.9		2.9			Trading–debt and equity instruments	572,739		3,313
Derivative receivables(a)	Derivative receivables(a)	92.5		11.1			Derivative receivables(a)	64,217		10,749
Total trading assets	Total trading assets	506.4		14.0			Total trading assets	636,956		14,062
AFS securities	AFS securities	188.1		0.2			AFS securities	203,262		267
Loans	Loans	41.6		1.6			Loans	38,789		3,808
MSRs	MSRs	8.1		8.1			MSRs	8,229		8,229
Other	Other	14.0		0.4			Other	13,250		417
Total assets measured at fair value on a recurring basis	Total assets measured at fair value on a recurring basis	1,124.7		24.3			Total assets measured at fair value on a recurring basis	1,278,970		26,783
Total assets measured at fair value on a nonrecurring basis	Total assets measured at fair value on a nonrecurring basis	3.2		2.0			Total assets measured at fair value on a nonrecurring basis	1,936		1,126
Total assets measured at fair value	Total assets measured at fair value	$	1,127.9	$	26.3		Total assets measured at fair value	$	1,280,906	$	27,909
Total Firm assets	Total Firm assets	$	3,773.9				Total Firm assets	$	3,868,240
Level 3 assets at fair value as a percentage of total Firm assets(a)	Level 3 assets at fair value as a percentage of total Firm assets(a)			0.7		%	Level 3 assets at fair value as a percentage of total Firm assets(a)			0.7		%
Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)	Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)			2.3		%	Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)			2.2		%

(a)For purposes of the table above, the derivative receivables total reflects the impact of netting adjustments; however, the ~~$11.1~~$10.7 billion of derivative receivables classified as level 3 does not reflect the netting adjustment as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral.

8692

Valuation

Estimating fair value requires the application of judgment. The type and level of judgment required is largely dependent on the amount of observable market information available to the Firm. For instruments valued using internally developed valuation models and other valuation techniques that use significant unobservable inputs and are therefore classified within level 3 of the fair value hierarchy, judgments used to estimate fair value are more significant than those required when estimating the fair value of instruments classified within levels 1 and 2.

In arriving at an estimate of fair value for an instrument within level 3, management must first determine the appropriate valuation model or other valuation technique to use. Second, the lack of observability of certain significant inputs requires management to assess relevant empirical data in deriving valuation inputs including, for example, transaction details, yield curves, interest rates, prepayment ~~speed,~~speeds, default rates, volatilities, correlations, prices (such as commodity, equity or debt prices), valuations of comparable instruments, foreign exchange rates and credit curves. Refer to Note 2 for a further discussion of the valuation of level 3 instruments, including unobservable inputs used.

For instruments classified in levels 2 and 3, management judgment must be applied to assess the appropriate level of valuation adjustments to reflect counterparty credit quality, the Firm’s creditworthiness, market funding rates, liquidity considerations, unobservable parameters, and for portfolios that meet specified criteria, the size of the net open risk position. The judgments made are typically affected by the type of product and its specific contractual terms, and the level of liquidity for the product or within the market as a whole. In periods of heightened market volatility and uncertainty judgments are further affected by the wider variation of reasonable valuation estimates, particularly for positions that are less liquid. Refer to Note 2 for a further discussion of valuation adjustments applied by the Firm.

Imprecision in estimating unobservable market inputs or other factors can affect the amount of gain or loss recorded for a particular position. Furthermore, while the Firm believes its valuation methods are appropriate and consistent with those of other market participants, the methods and assumptions used reflect management judgment and may vary across the Firm’s businesses and portfolios.

The Firm uses various methodologies and assumptions in the determination of fair value. The use of methodologies or assumptions different than those used by the Firm could result in a different estimate of fair value at the reporting date. Refer to Note 2 for a detailed discussion of the Firm’s valuation process and hierarchy, and its determination of fair value for individual financial instruments.

Credit card rewards liability

The credit card rewards liability was ~~$11.1~~$12.2 billion and ~~$9.8~~$11.3 billion at ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively, and is recorded in accounts payable and other liabilities on the Consolidated balance sheets. The increase in the liability was predominantly driven by continued growth in rewards points earned on ~~accelerated~~higher spend and promotional offers outpacing redemptions throughout ~~2022.~~2023, and, to a lesser extent, adjustments to certain reward program terms in the second quarter. Refer to ~~page 152~~pages 151-152 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a description of the significant assumptions and sensitivities, associated with the Firm’s credit card rewards liability.

Income taxes

Refer to Income taxes on ~~pages 152-153~~page 152 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a description of the significant assumptions, judgments and interpretations associated with the accounting for income taxes.

Goodwill impairment

Management applies significant judgment when testing goodwill for impairment. Refer to Goodwill impairment on page ~~152~~151 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a description of the significant valuation judgments associated with goodwill impairment.

Refer to Note 1415 for additional information on goodwill, including the goodwill impairment assessment as of ~~September~~June 30, ~~2022.~~2023.

Litigation reserves

Refer to Note 2426 of this Form 10-Q, and Note 30 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a description of the significant estimates and judgments associated with establishing litigation reserves.

8793

ACCOUNTING AND REPORTING DEVELOPMENTS


Financial Accounting Standards Board (“FASB”) Standards Adopted since January 1, 2021

Standard	Summary of guidance	Effects on financial statements
Reference Rate Reform Issued March 2020 and updated January 2021 and December 2022	•Provides optional expedients and exceptions to current accounting guidance when financial instruments, hedge accounting relationships, and other transactions are amended due to reference rate reform. •Provides an election to account for certain contract amendments related to reference rate reform as modifications rather than extinguishments without the requirement to assess the significance of the amendments. •Allows for changes in critical terms of a hedge accounting relationship without automatic termination of that relationship. Provides various practical expedients and elections designed to allow hedge accounting to continue uninterrupted during the transition period. •~~Provides a one-time election to transfer securities out of the held-to-maturity classification if certain criteria are met.~~ •The January 2021 update provides an election to account for derivatives modified to change the rate used for discounting, margining, or contract price alignment (collectively “discounting transition”) as modifications.	•Issued and effective March 12, 2020. The January 7, 2021 ~~update was~~and December 21, 2022 updates were effective when issued. •~~The Firm elected~~Refer to ~~apply certain~~Accounting and Reporting Developments on page 153 of the practical expedients related to contract modifications and hedge accounting relationships, and discounting transition beginning in the third quarter of 2020. The discounting transition election was applied retrospectively. The main purpose of the practical expedients is to ease the administrative burden of accountingJPMorgan Chase's 2022 Form 10-K for ~~contracts impacted by reference rate reform. These elections did not have a material impact on the Consolidated Financial Statements.~~further information.
FASB Standards ~~Issued but not yet~~ Adopted since January 1, 2023
Standard	Summary of guidance	Effects on financial statements
Derivatives and Hedging: Fair Value Hedging – Portfolio Layer Method Issued March 2022	•Expands the current ability to hedge a portfolio of prepayable assets to allow more of the portfolio to be hedged. Non-prepayable assets can also be included in the same portfolio, thus increasing the size of the portfolio and the amount available to be hedged. •Clarifies the types of derivatives that can be used as hedges, and the balance sheet presentation and ~~updates the~~ disclosure ~~guidance~~requirements for the hedge accounting adjustments. •Allows a one-time reclassification from HTM to AFS upon adoption.	•~~Required effective date:~~Adopted prospectively on January 1, 2023.~~(a)~~ •~~The Firm is currently evaluating the potential impact on the Consolidated Financial Statements, as well as the Firm's planned date of adoption.~~Refer to Note 1 for further information.
Financial Instruments – Credit Losses: Troubled Debt Restructurings and Vintage Disclosures Issued March 2022	•Eliminates existing accounting and disclosure requirements for Troubled Debt Restructurings, including the requirement to measure the allowance using a discounted cash flow methodology. •Requires disclosure of loan modifications for borrowers experiencing financial difficulty involving principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. •Requires disclosure of current period loan charge-off information by origination year. •May be adopted prospectively, or by using a modified retrospective method wherein the effect of adoption is reflected as an adjustment to retained earnings at the effective date.	•Adopted under the modified retrospective method on January 1, 2023. •Refer to Note 1 for further information.
FASB Standards Issued but not yet Adopted
Standard	Summary of guidance	Effects on financial statements
Investments - Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023	•Expands the ability to elect proportional amortization for more types of tax-oriented investments (beyond low income housing tax credit investments) on a program-by-program basis. •May be adopted using a full retrospective method, or a modified retrospective method wherein the effect of adoption is reflected as an adjustment to retained earnings at the effective date.	•Required effective date: January 1, ~~2023.~~2024. (a) •The Firm is currently evaluating the potential impact on the Consolidated Financial Statements. •~~The Firm plans to adopt the new guidance on January 1, 2023.~~

(a)Early adoption is permitted.

8894

FORWARD-LOOKING STATEMENTS

From time to time, the Firm has made and will make forward-looking statements. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipate,” “target,” “expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” or other words of similar meaning. Forward-looking statements provide JPMorgan Chase’s current expectations or forecasts of future events, circumstances, results or aspirations. JPMorgan Chase’s disclosures in this Form 10-Q contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Firm also may make forward-looking statements in its other documents filed or furnished with the SEC. In addition, the Firm’s senior management may make forward-looking statements orally to investors, analysts, representatives of the media and others.

All forward-looking statements are, by their nature, subject to risks and uncertainties, many of which are beyond the Firm’s control. JPMorgan Chase’s actual future results may differ materially from those set forth in its forward-looking statements. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ from those in the forward-looking statements:

•Local, regional and global business, economic and political conditions and geopolitical events, including the war in Ukraine;

•Changes in laws, rules and regulatory requirements, including capital and liquidity requirements affecting the Firm’s businesses, and the ability of the Firm to address those requirements;

•Heightened regulatory and governmental oversight and scrutiny of JPMorgan Chase’s business practices, including dealings with retail customers;

•Changes in trade, monetary and fiscal policies and laws;

•Changes in the level of inflation;

•Changes in income tax laws, rules and regulations;

•Changes in FDIC assessments;

•Securities and capital markets behavior, including changes in market liquidity and volatility;

•Changes in investor sentiment or consumer spending or savings behavior;

•Ability of the Firm to manage effectively its capital and liquidity;

•Changes in credit ratings assigned to the Firm or its subsidiaries;

•Damage to the Firm’s reputation;

•Ability of the Firm to appropriately address social, environmental and sustainability concerns that may arise, including from its business activities;

•Ability of the Firm to deal effectively with an economic slowdown or other economic or market disruption, including, but not limited to, in the interest rate environment;

•Technology changes instituted by the Firm, its counterparties or competitors;

•The effectiveness of the Firm’s control agenda;

•Ability of the Firm to develop or discontinue products and services, and the extent to which products or services previously sold by the Firm require the Firm to incur liabilities or absorb losses not contemplated at their initiation or origination;

•Acceptance of the Firm’s new and existing products and services by the marketplace and the ability of the Firm to innovate and to increase market share;

•Ability of the Firm to attract and retain qualified and diverse employees;

•Ability of the Firm to control expenses;

•Competitive pressures;

•Changes in the credit quality of the Firm’s clients, customers and counterparties;

•Adequacy of the Firm’s risk management framework, disclosure controls and procedures and internal control over financial reporting;

•Adverse judicial or regulatory proceedings;

•Ability of the Firm to determine accurate values of certain assets and liabilities;

•Occurrence of natural or man-made disasters or calamities, including health emergencies, the spread of infectious diseases, epidemics or pandemics, an outbreak or escalation of hostilities or other geopolitical instabilities, the effects of climate change or extraordinary events beyond the Firm's control, and the Firm’s ability to deal effectively with disruptions caused by the foregoing;

•Ability of the Firm to maintain the security of its financial, accounting, technology, data processing and other operational systems and facilities;

•Ability of the Firm to withstand disruptions that may be caused by any failure of its operational systems or those of third parties;

•Ability of the Firm to effectively defend itself against cyberattacks and other attempts by unauthorized parties to access information of the Firm or its customers or to disrupt the Firm’s systems;

•~~Economic, financial, reputational and other impacts of the COVID-19 pandemic;~~ and

•The other risks and uncertainties detailed in Part I, Item 1A: Risk Factors in JPMorgan Chase’s ~~2021~~2022 Form 10-K.

Any forward-looking statements made by or on behalf of the Firm speak only as of the date they are made, and JPMorgan Chase does not undertake to update any forward-looking statements. The reader should, however, consult any further disclosures of a forward-looking nature the Firm may make in any subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

8995

JPMorgan Chase & Co.

Consolidated statements of income (unaudited)


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions, except per share data)	(in millions, except per share data)	2022		2021		2022		2021		(in millions, except per share data)	2023		2022		2023		2022
Revenue	Revenue									Revenue
Investment banking fees	Investment banking fees	$	1,674	$	3,282	$	5,268	$	9,722	Investment banking fees	$	1,513	$	1,586	$	3,162	$	3,594
Principal transactions	Principal transactions	5,383		3,546		15,478		14,122		Principal transactions	6,910		4,990		14,525		10,095
Lending- and deposit-related fees	Lending- and deposit-related fees	1,731		1,801		5,443		5,248		Lending- and deposit-related fees	1,828		1,873		3,448		3,712
Asset management, administration and commissions		5,069		5,257		15,671		15,480
Asset management fees										Asset management fees	3,774		3,517		7,239		7,169
Commissions and other fees										Commissions and other fees	1,739		1,723		3,434		3,433

Investment securities losses	Investment securities losses	(959)		(256)		(1,506)		(397)		Investment securities losses	(900)		(153)		(1,768)		(547)
Mortgage fees and related income	Mortgage fees and related income	314		600		1,152		1,855		Mortgage fees and related income	278		378		499		838
Card income	Card income	1,086		1,005		3,194		4,002		Card income	1,094		1,133		2,328		2,108
Other income	Other income	900		1,332		2,930		3,650		Other income	3,292		540		4,299		2,030
Noninterest revenue	Noninterest revenue	15,198		16,567		47,630		53,682		Noninterest revenue	19,528		15,587		37,166		32,432
Interest income	Interest income	25,611		14,480		59,753		42,845		Interest income	41,644		18,646		78,648		34,142
Interest expense	Interest expense	8,093		1,400		13,235		4,135		Interest expense	19,865		3,518		36,158		5,142
Net interest income	Net interest income	17,518		13,080		46,518		38,710		Net interest income	21,779		15,128		42,490		29,000
Total net revenue	Total net revenue	32,716		29,647		94,148		92,392		Total net revenue	41,307		30,715		79,656		61,432

Provision for credit losses	Provision for credit losses	1,537		(1,527)		4,101		(7,968)		Provision for credit losses	2,899		1,101		5,174		2,564

Noninterest expense	Noninterest expense									Noninterest expense
Compensation expense	Compensation expense	10,539		9,087		31,627		29,502		Compensation expense	11,216		10,301		22,892		21,088
Occupancy expense	Occupancy expense	1,162		1,109		3,425		3,314		Occupancy expense	1,070		1,129		2,185		2,263
Technology, communications and equipment expense	Technology, communications and equipment expense	2,366		2,473		7,102		7,480		Technology, communications and equipment expense	2,267		2,376		4,451		4,736
Professional and outside services	Professional and outside services	2,481		2,523		7,522		7,111		Professional and outside services	2,561		2,469		5,009		5,041
Marketing	Marketing	1,017		712		2,818		2,089		Marketing	1,122		881		2,167		1,801
Other expense	Other expense	1,613		1,159		4,624		3,959		Other expense	2,586		1,593		4,225		3,011
Total noninterest expense	Total noninterest expense	19,178		17,063		57,118		53,455		Total noninterest expense	20,822		18,749		40,929		37,940
Income before income tax expense	Income before income tax expense	12,001		14,111		32,929		46,905		Income before income tax expense	17,586		10,865		33,553		20,928
Income tax expense	Income tax expense	2,264		2,424		6,261		8,970		Income tax expense	3,114		2,216		6,459		3,997
Net income	Net income	$	9,737	$	11,687	$	26,668	$	37,935	Net income	$	14,472	$	8,649	$	27,094	$	16,931
Net income applicable to common stockholders	Net income applicable to common stockholders	$	9,255	$	11,229	$	25,295	$	36,576	Net income applicable to common stockholders	$	14,011	$	8,195	$	26,204	$	16,039
Net income per common share data	Net income per common share data									Net income per common share data
Basic earnings per share	Basic earnings per share	$	3.13	$	3.74	$	8.53	$	12.05	Basic earnings per share	$	4.76	$	2.77	$	8.86	$	5.40
Diluted earnings per share	Diluted earnings per share	3.12		3.74		8.51		12.02		Diluted earnings per share	4.75		2.76		8.85		5.39

Weighted-average basic shares	Weighted-average basic shares	2,961.2		2,999.9		2,966.8		3,036.4		Weighted-average basic shares	2,943.8		2,962.2		2,956.1		2,969.6
Weighted-average diluted shares	Weighted-average diluted shares	2,965.4		3,005.1		2,970.9		3,041.7		Weighted-average diluted shares	2,948.3		2,966.3		2,960.5		2,973.7

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

9096

JPMorgan Chase & Co.

Consolidated statements of comprehensive income (unaudited)


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Net income	Net income	$	9,737	$	11,687	$	26,668	$	37,935	Net income	$	14,472	$	8,649	$	27,094	$	16,931
Other comprehensive income/(loss), after–tax	Other comprehensive income/(loss), after–tax									Other comprehensive income/(loss), after–tax
Unrealized losses on investment securities		(2,145)		(434)		(13,629)		(4,099)
Unrealized gains/(losses) on investment securities										Unrealized gains/(losses) on investment securities	757		(4,031)		2,969		(11,484)
Translation adjustments, net of hedges	Translation adjustments, net of hedges	(581)		(187)		(1,322)		(373)		Translation adjustments, net of hedges	70		(679)		267		(741)
Fair value hedges	Fair value hedges	38		9		199		(42)		Fair value hedges	11		51		(10)		161
Cash flow hedges	Cash flow hedges	(1,698)		(450)		(5,837)		(2,108)		Cash flow hedges	(497)		(1,348)		301		(4,139)
Defined benefit pension and OPEB plans	Defined benefit pension and OPEB plans	(1,004)		6		(917)		83		Defined benefit pension and OPEB plans	(6)		20		(61)		87
DVA on fair value option elected liabilities	DVA on fair value option elected liabilities	625		(551)		2,456		(484)		DVA on fair value option elected liabilities	(207)		1,185		(415)		1,831
Total other comprehensive loss, after–tax		(4,765)		(1,607)		(19,050)		(7,023)
Total other comprehensive income/(loss), after–tax										Total other comprehensive income/(loss), after–tax	128		(4,802)		3,051		(14,285)
Comprehensive income	Comprehensive income	$	4,972	$	10,080	$	7,618	$	30,912	Comprehensive income	$	14,600	$	3,847	$	30,145	$	2,646

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

9197

JPMorgan Chase & Co.

Consolidated balance sheets (unaudited)


(in millions, except share data)	(in millions, except share data)	September 30, 2022		December 31, 2021		(in millions, except share data)	June 30, 2023		December 31, 2022
Assets	Assets					Assets
Cash and due from banks	Cash and due from banks	$	24,654	$	26,438	Cash and due from banks	$	26,064	$	27,697
Deposits with banks	Deposits with banks	619,533		714,396		Deposits with banks	469,059		539,537
Federal funds sold and securities purchased under resale agreements (included $299,243 and $252,720 at fair value)		301,878		261,698
Securities borrowed (included $67,281 and $81,463 at fair value)		193,216		206,071
Trading assets (included assets pledged of $105,200 and $102,710)		506,487		433,575
Available-for-sale securities (amortized cost of $200,919 and $308,254, net of allowance for credit losses; included assets pledged of $11,114 and $18,268)		188,140		308,525
Held-to-maturity securities (net of allowance for credit losses)		430,106		363,707
Federal funds sold and securities purchased under resale agreements (included $322,579 and $311,883 at fair value)						Federal funds sold and securities purchased under resale agreements (included $322,579 and $311,883 at fair value)	325,628		315,592
Securities borrowed (included $55,905 and $70,041 at fair value)						Securities borrowed (included $55,905 and $70,041 at fair value)	163,563		185,369
Trading assets (included assets pledged of $142,625 and $93,687)						Trading assets (included assets pledged of $142,625 and $93,687)	636,996		453,799
Available-for-sale securities (amortized cost of $209,876 and $216,188; included assets pledged of $12,864 and $9,158)						Available-for-sale securities (amortized cost of $209,876 and $216,188; included assets pledged of $12,864 and $9,158)	203,262		205,857
Held-to-maturity securities						Held-to-maturity securities	408,941		425,305
Investment securities, net of allowance for credit losses	Investment securities, net of allowance for credit losses	618,246		672,232		Investment securities, net of allowance for credit losses	612,203		631,162
Loans (included $41,487 and $58,820 at fair value)		1,112,633		1,077,714
Loans (included $38,789 and $42,079 at fair value)						Loans (included $38,789 and $42,079 at fair value)	1,300,069		1,135,647
Allowance for loan losses	Allowance for loan losses	(18,185)		(16,386)		Allowance for loan losses	(21,980)		(19,726)
Loans, net of allowance for loan losses	Loans, net of allowance for loan losses	1,094,448		1,061,328		Loans, net of allowance for loan losses	1,278,089		1,115,921
Accrued interest and accounts receivable	Accrued interest and accounts receivable	143,905		102,570		Accrued interest and accounts receivable	111,561		125,189
Premises and equipment	Premises and equipment	27,199		27,070		Premises and equipment	29,493		27,734
Goodwill, MSRs and other intangible assets	Goodwill, MSRs and other intangible assets	60,806		56,691		Goodwill, MSRs and other intangible assets	64,238		60,859
Other assets (included $14,833 and $14,753 at fair value and assets pledged of $5,361 and $5,298)		183,512		181,498
Other assets (included $14,166 and $14,921 at fair value and assets pledged of $5,844 and $7,998)						Other assets (included $14,166 and $14,921 at fair value and assets pledged of $5,844 and $7,998)	151,346		182,884
Total assets(a)	Total assets(a)	$	3,773,884	$	3,743,567	Total assets(a)	$	3,868,240	$	3,665,743
Liabilities	Liabilities					Liabilities
Deposits (included $20,935 and $11,333 at fair value)		$	2,408,615	$	2,462,303
Federal funds purchased and securities loaned or sold under repurchase agreements (included $180,535 and $126,435 at fair value)		239,939		194,340
Short-term borrowings (included $15,643 and $20,015 at fair value)		47,866		53,594
Deposits (included $51,568 and $28,620 at fair value)						Deposits (included $51,568 and $28,620 at fair value)	$	2,398,962	$	2,340,179
Federal funds purchased and securities loaned or sold under repurchase agreements (included $216,604 and $151,999 at fair value)						Federal funds purchased and securities loaned or sold under repurchase agreements (included $216,604 and $151,999 at fair value)	266,272		202,613
Short-term borrowings (included $17,942 and $15,792 at fair value)						Short-term borrowings (included $17,942 and $15,792 at fair value)	41,022		44,027
Trading liabilities	Trading liabilities	189,878		164,693		Trading liabilities	178,809		177,976
Accounts payable and other liabilities (included $5,937 and $5,651 at fair value)		300,016		262,755
Beneficial interests issued by consolidated VIEs (included $5 and $12 at fair value)		12,079		10,750
Long-term debt (included $65,945 and $74,934 at fair value)		287,473		301,005
Accounts payable and other liabilities (included $5,101 and $7,038 at fair value)						Accounts payable and other liabilities (included $5,101 and $7,038 at fair value)	286,934		300,141
Beneficial interests issued by consolidated VIEs (included $1 and $5 at fair value)						Beneficial interests issued by consolidated VIEs (included $1 and $5 at fair value)	19,647		12,610
Long-term debt (included $78,609 and $72,281 at fair value)						Long-term debt (included $78,609 and $72,281 at fair value)	364,078		295,865
Total liabilities(a)	Total liabilities(a)	3,485,866		3,449,440		Total liabilities(a)	3,555,724		3,373,411
Commitments and contingencies (refer to Notes 22, 23 and 24)	Commitments and contingencies (refer to Notes 22, 23 and 24)					Commitments and contingencies (refer to Notes 22, 23 and 24)
Stockholders’ equity	Stockholders’ equity					Stockholders’ equity
Preferred stock ($1 par value; authorized 200,000,000 shares; issued 3,283,750 and 3,483,750 shares)		32,838		34,838
Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,740,375 shares)						Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,740,375 shares)	27,404		27,404
Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)	Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)	4,105		4,105		Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)	4,105		4,105
Additional paid-in capital	Additional paid-in capital	88,865		88,415		Additional paid-in capital	89,578		89,044
Retained earnings	Retained earnings	288,776		272,268		Retained earnings	317,359		296,456
Accumulated other comprehensive losses	Accumulated other comprehensive losses	(19,134)		(84)		Accumulated other comprehensive losses	(14,290)		(17,341)
Treasury stock, at cost (1,171,729,007 and 1,160,784,750 shares)		(107,432)		(105,415)
Treasury stock, at cost (1,198,848,622 and 1,170,676,094 shares)						Treasury stock, at cost (1,198,848,622 and 1,170,676,094 shares)	(111,640)		(107,336)
Total stockholders’ equity	Total stockholders’ equity	288,018		294,127		Total stockholders’ equity	312,516		292,332
Total liabilities and stockholders’ equity	Total liabilities and stockholders’ equity	$	3,773,884	$	3,743,567	Total liabilities and stockholders’ equity	$	3,868,240	$	3,665,743

(a) The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021.~~2022. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 1314 for a further discussion.


(in millions)	(in millions)	September 30, 2022		December 31, 2021		(in millions)	June 30, 2023		December 31, 2022
Assets	Assets					Assets
Trading assets	Trading assets	$	1,991	$	2,010	Trading assets	$	2,368	$	2,151
Loans	Loans	31,597		33,024		Loans	39,125		34,411
All other assets	All other assets	562		490		All other assets	532		550
Total assets	Total assets	$	34,150	$	35,524	Total assets	$	42,025	$	37,112
Liabilities	Liabilities					Liabilities
Beneficial interests issued by consolidated VIEs	Beneficial interests issued by consolidated VIEs	$	12,079	$	10,750	Beneficial interests issued by consolidated VIEs	$	19,647	$	12,610
All other liabilities	All other liabilities	274		245		All other liabilities	247		279
Total liabilities	Total liabilities	$	12,353	$	10,995	Total liabilities	$	19,894	$	12,889

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

9298

JPMorgan Chase & Co.

Consolidated statements of changes in stockholders’ equity (unaudited)


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions, except per share data)	(in millions, except per share data)	2022		2021		2022		2021		(in millions, except per share data)	2023		2022		2023		2022
Preferred stock	Preferred stock									Preferred stock
Balance at the beginning of the period	Balance at the beginning of the period	$	32,838	$	32,838	$	34,838	$	30,063	Balance at the beginning of the period	$	27,404	$	32,838	$	27,404	$	34,838
Issuance	Issuance	—		2,000		—		7,350		Issuance	—		—		—		—
Redemption	Redemption	—		—		(2,000)		(2,575)		Redemption	—		—		—		(2,000)
Balance at September 30		32,838		34,838		32,838		34,838
Balance at June 30										Balance at June 30	27,404		32,838		27,404		32,838

Common stock	Common stock									Common stock
Balance at the beginning and end of the period	Balance at the beginning and end of the period	4,105		4,105		4,105		4,105		Balance at the beginning and end of the period	4,105		4,105		4,105		4,105

Additional paid-in capital	Additional paid-in capital									Additional paid-in capital
Balance at the beginning of the period	Balance at the beginning of the period	88,614		88,194		88,415		88,394		Balance at the beginning of the period	89,155		88,260		89,044		88,415
Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects	Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects	251		227		450		93		Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects	423		354		534		199
Other		—		(64)		—		(130)
Balance at September 30		88,865		88,357		88,865		88,357

Balance at June 30										Balance at June 30	89,578		88,614		89,578		88,614

Retained earnings	Retained earnings									Retained earnings
Balance at the beginning of the period	Balance at the beginning of the period	282,445		256,983		272,268		236,990		Balance at the beginning of the period	306,208		277,177		296,456		272,268
Cumulative effect of change in accounting principles										Cumulative effect of change in accounting principles	—		—		449		—
Net income	Net income	9,737		11,687		26,668		37,935		Net income	14,472		8,649		27,094		16,931
Dividends declared:	Dividends declared:									Dividends declared:
Preferred stock	Preferred stock	(432)		(402)		(1,239)		(1,174)		Preferred stock	(373)		(410)		(729)		(807)
Common stock ($1.00 and $1.00 per share and $3.00 and $2.80 per share, respectively)		(2,974)		(2,992)		(8,921)		(8,475)
Balance at September 30		288,776		265,276		288,776		265,276
Common stock ($1.00 and $1.00 per share and $2.00 and $2.00 per share, respectively)										Common stock ($1.00 and $1.00 per share and $2.00 and $2.00 per share, respectively)	(2,948)		(2,971)		(5,911)		(5,947)
Balance at June 30										Balance at June 30	317,359		282,445		317,359		282,445

Accumulated other comprehensive income/(loss)	Accumulated other comprehensive income/(loss)									Accumulated other comprehensive income/(loss)
Balance at the beginning of the period	Balance at the beginning of the period	(14,369)		2,570		(84)		7,986		Balance at the beginning of the period	(14,418)		(9,567)		(17,341)		(84)
Other comprehensive loss, after-tax		(4,765)		(1,607)		(19,050)		(7,023)
Balance at September 30		(19,134)		963		(19,134)		963
Other comprehensive income/(loss), after-tax										Other comprehensive income/(loss), after-tax	128		(4,802)		3,051		(14,285)
Balance at June 30										Balance at June 30	(14,290)		(14,369)		(14,290)		(14,369)

Treasury stock, at cost	Treasury stock, at cost									Treasury stock, at cost
Balance at the beginning of the period	Balance at the beginning of the period	(107,490)		(98,304)		(105,415)		(88,184)		Balance at the beginning of the period	(109,372)		(106,914)		(107,336)		(105,415)
Repurchase	Repurchase	—		(5,240)		(3,122)		(16,440)		Repurchase	(2,316)		(622)		(5,271)		(3,122)
Reissuance	Reissuance	58		46		1,105		1,126		Reissuance	48		46		967		1,047
Balance at September 30		(107,432)		(103,498)		(107,432)		(103,498)
Balance at June 30										Balance at June 30	(111,640)		(107,490)		(111,640)		(107,490)

Total stockholders’ equity	Total stockholders’ equity	$	288,018	$	290,041	$	288,018	$	290,041	Total stockholders’ equity	$	312,516	$	286,143	$	312,516	$	286,143

Effective January 1, 2023, the Firm adopted the Financial Instruments – Credit Losses: Troubled Debt Restructurings and Derivatives and Hedging: Fair Value Hedging – Portfolio Layer Method accounting guidance. Refer to Note 1 for further information.

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

9399

JPMorgan Chase & Co.

Consolidated statements of cash flows (unaudited)


		Nine months ended September 30,					Six months ended June 30,
(in millions)	(in millions)	2022		2021		(in millions)	2023		2022
Operating activities	Operating activities					Operating activities
Net income	Net income	$	26,668	$	37,935	Net income	$	27,094	$	16,931
Adjustments to reconcile net income to net cash used in operating activities:	Adjustments to reconcile net income to net cash used in operating activities:					Adjustments to reconcile net income to net cash used in operating activities:
Provision for credit losses	Provision for credit losses	4,101		(7,968)		Provision for credit losses	5,174		2,564
Depreciation and amortization	Depreciation and amortization	5,380		6,001		Depreciation and amortization	2,156		3,609
Deferred tax (benefit)/expense	Deferred tax (benefit)/expense	(3,455)		(1,063)		Deferred tax (benefit)/expense	(2,238)		(2,086)
Bargain purchase gain associated with the First Republic acquisition						Bargain purchase gain associated with the First Republic acquisition	(2,712)		—
Other	Other	3,815		2,662		Other	3,008		2,172
Originations and purchases of loans held-for-sale	Originations and purchases of loans held-for-sale	(131,589)		(259,159)		Originations and purchases of loans held-for-sale	(48,270)		(102,857)
Proceeds from sales, securitizations and paydowns of loans held-for-sale	Proceeds from sales, securitizations and paydowns of loans held-for-sale	149,420		244,966		Proceeds from sales, securitizations and paydowns of loans held-for-sale	47,746		116,764
Net change in:	Net change in:					Net change in:
Trading assets	Trading assets	(114,006)		2,700		Trading assets	(178,766)		(53,816)
Securities borrowed	Securities borrowed	12,347		(42,471)		Securities borrowed	21,835		3,379
Accrued interest and accounts receivable	Accrued interest and accounts receivable	(41,621)		(26,148)		Accrued interest and accounts receivable	16,107		(43,051)
Other assets	Other assets	(17,114)		(358)		Other assets	44,599		(14,930)
Trading liabilities	Trading liabilities	34,950		(10,668)		Trading liabilities	(4,846)		23,646
Accounts payable and other liabilities	Accounts payable and other liabilities	75,961		47,547		Accounts payable and other liabilities	(24,563)		70,976
Other operating adjustments	Other operating adjustments	1,040		(987)		Other operating adjustments	1,300		800
Net cash provided by/(used in) operating activities	Net cash provided by/(used in) operating activities	5,897		(7,011)		Net cash provided by/(used in) operating activities	(92,376)		24,101
Investing activities	Investing activities					Investing activities
Net change in:	Net change in:					Net change in:
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	(40,741)		14,089		Federal funds sold and securities purchased under resale agreements	(9,816)		(60,833)
Held-to-maturity securities:	Held-to-maturity securities:					Held-to-maturity securities:
Proceeds from paydowns and maturities	Proceeds from paydowns and maturities	33,542		39,106		Proceeds from paydowns and maturities	13,762		20,952
Purchases	Purchases	(29,329)		(78,976)		Purchases	(4,141)		(27,490)
Available-for-sale securities:	Available-for-sale securities:					Available-for-sale securities:
Proceeds from paydowns and maturities	Proceeds from paydowns and maturities	30,646		39,346		Proceeds from paydowns and maturities	23,470		21,913
Proceeds from sales	Proceeds from sales	62,252		146,858		Proceeds from sales	69,875		36,217
Purchases	Purchases	(75,204)		(163,211)		Purchases	(52,433)		(66,200)
Proceeds from sales and securitizations of loans held-for-investment	Proceeds from sales and securitizations of loans held-for-investment	36,199		25,981		Proceeds from sales and securitizations of loans held-for-investment	19,526		22,185
Other changes in loans, net	Other changes in loans, net	(96,151)		(45,028)		Other changes in loans, net	(33,353)		(67,802)

Net cash used in the First Republic acquisition						Net cash used in the First Republic acquisition	(9,920)		—
All other investing activities, net	All other investing activities, net	(7,503)		(7,351)		All other investing activities, net	(11,419)		(4,753)
Net cash (used in) investing activities		(86,289)		(29,186)
Net cash provided by/(used in) investing activities						Net cash provided by/(used in) investing activities	5,551		(125,811)
Financing activities	Financing activities					Financing activities
Net change in:	Net change in:					Net change in:
Deposits	Deposits	(44,336)		234,716		Deposits	(27,782)		5,841
Federal funds purchased and securities loaned or sold under repurchase agreements	Federal funds purchased and securities loaned or sold under repurchase agreements	45,910		39,753		Federal funds purchased and securities loaned or sold under repurchase agreements	63,590		28,586
Short-term borrowings	Short-term borrowings	(4,813)		4,710		Short-term borrowings	(3,135)		5,622
Beneficial interests issued by consolidated VIEs	Beneficial interests issued by consolidated VIEs	2,042		(1,839)		Beneficial interests issued by consolidated VIEs	7,708		552
Proceeds from long-term borrowings	Proceeds from long-term borrowings	68,944		69,272		Proceeds from long-term borrowings	19,357		45,873
Payments of long-term borrowings	Payments of long-term borrowings	(37,470)		(46,041)		Payments of long-term borrowings	(32,003)		(25,991)
Proceeds from issuance of preferred stock		—		7,350

Redemption of preferred stock	Redemption of preferred stock	(2,000)		(2,575)		Redemption of preferred stock	—		(2,000)
Treasury stock repurchased	Treasury stock repurchased	(3,162)		(16,286)		Treasury stock repurchased	(5,167)		(3,162)
Dividends paid	Dividends paid	(10,186)		(9,472)		Dividends paid	(6,651)		(6,774)
All other financing activities, net	All other financing activities, net	1,158		(1,573)		All other financing activities, net	(1,275)		423
Net cash provided by financing activities	Net cash provided by financing activities	16,087		278,015		Net cash provided by financing activities	14,642		48,970
Effect of exchange rate changes on cash and due from banks and deposits with banks	Effect of exchange rate changes on cash and due from banks and deposits with banks	(32,342)		(9,558)		Effect of exchange rate changes on cash and due from banks and deposits with banks	72		(18,834)
Net increase/(decrease) in cash and due from banks and deposits with banks		(96,647)		232,260
Net decrease in cash and due from banks and deposits with banks						Net decrease in cash and due from banks and deposits with banks	(72,111)		(71,574)
Cash and due from banks and deposits with banks at the beginning of the period	Cash and due from banks and deposits with banks at the beginning of the period	740,834		527,609		Cash and due from banks and deposits with banks at the beginning of the period	567,234		740,834
Cash and due from banks and deposits with banks at the end of the period	Cash and due from banks and deposits with banks at the end of the period	$	644,187	$	759,869	Cash and due from banks and deposits with banks at the end of the period	$	495,123	$	669,260
Cash interest paid	Cash interest paid	$	11,075	$	3,882	Cash interest paid	$	35,250	$	4,457
Cash income taxes paid, net	Cash income taxes paid, net	226		17,617		Cash income taxes paid, net	5,466		3,100

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

94100

Refer to the Glossary of Terms and Acronyms on pages ~~184-192~~200–205 for definitions of terms and acronyms used throughout the Notes to Consolidated Financial Statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 1 – Basis of presentation

JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the U.S., with operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the “First Republic acquisition”) from the Federal Deposit Insurance Corporation (“FDIC”). The Firm continues to convert certain operations, and to integrate clients, products and services, associated with the First Republic acquisition, to align with the Firm’s businesses and operations. The Firm also continues to evaluate to which segments certain clients, products and services associated with the First Republic acquisition, including deposits, should be allocated. Accordingly, reporting classifications and allocations may change in future periods including across the Firm's segments. Refer to Note 2527 for a further discussion of the Firm’s business ~~segments.~~segments and Note 28 for additional information on the First Republic acquisition.

The accounting and financial reporting policies of JPMorgan Chase and its subsidiaries conform to U.S. GAAP. Additionally, where applicable, the policies conform to the accounting and reporting guidelines prescribed by regulatory authorities.

The unaudited Consolidated Financial Statements prepared in conformity with U.S. GAAP require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expense, and the disclosures of contingent assets and liabilities. Actual results could be different from these estimates. In the opinion of management, all normal, recurring adjustments have been included such that this interim financial information is fairly stated.

These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, and related notes thereto, included in JPMorgan Chase’s ~~2021~~2022 Form 10-K.

Certain amounts reported in prior periods have been ~~reclassified~~revised to conform with the current presentation.

Consolidation

The Consolidated Financial Statements include the accounts of JPMorgan Chase and other entities in which the Firm has a controlling financial interest. All material intercompany balances and transactions have been eliminated.

Assets held for clients in an agency or fiduciary capacity by the Firm are not assets of JPMorgan Chase and are not included on the Consolidated balance sheets.

The Firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity.

Refer to Notes 1 and 14 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further description of JPMorgan Chase’s accounting policies regarding consolidation.

Offsetting assets and liabilities

U.S. GAAP permits entities to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net basis on the Consolidated balance sheets when a legally enforceable master netting agreement exists. U.S. GAAP also permits securities financing ~~activities~~balances to be presented on a net basis when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances where it has determined that the specified conditions are met. Refer to Note 1 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further information on offsetting assets and liabilities.

Accounting standards adopted January 1, 2023

Derivatives and Hedging: Fair Value Hedging – Portfolio Layer Method

The adoption of this guidance expanded the ability to hedge a portfolio of prepayable assets to allow more of the portfolio to be hedged. Non-prepayable assets can also be included in the same portfolio, thus increasing the size of the portfolio and the amount available to be hedged. This guidance also clarified the types of derivatives that can be used as hedges, and the balance sheet presentation and disclosure requirements for the hedge accounting adjustments. As permitted by the guidance, the Firm elected to transfer HTM securities to AFS and designate those securities in a portfolio layer method hedge upon adoption. The adoption impact of the transfer on retained earnings was not material.

Refer to Note 5 and Note 10 for additional information.

Financial Instruments – Credit Losses: Troubled Debt Restructurings and Vintage Disclosures

The adoption of this guidance eliminated the accounting and disclosure requirements for TDRs, including the requirement to measure the allowance using a discounted cash flow (“DCF”) methodology, and allowed the option of a non-DCF portfolio-based approach for modified loans to troubled borrowers. If a DCF methodology is still applied for these modified loans, the discount rate must be the post-

95101

modification effective interest rate, instead of the pre-modification effective interest rate.

The Firm elected to apply its non-DCF, portfolio-based allowance approach for modified loans to troubled borrowers for all portfolios except modified nonaccrual risk-rated loans which the Firm elected to continue applying a DCF methodology. Refer to Note 13 of JPMorgan Chase’s 2022 Form 10-K for a description of the portfolio-based allowance approach and the asset-specific allowance approach.

This guidance was adopted under the modified retrospective method which resulted in a net decrease to the allowance for credit losses of $587 million and an increase to retained earnings of $446 million, after-tax, predominantly driven by residential real estate and credit card.

The adoption of this guidance eliminated the disclosure requirements for TDRs including the requirement to assess whether a modification is reasonably expected or involves a concession. The new guidance requires disclosure for loan modifications to borrowers experiencing financial difficulty consisting of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. The Firm has defined these types of modifications as financial difficulty modifications ("FDMs"). As a result of the elimination of the requirement to assess whether a modification is reasonably expected or involves a concession, the population of loans considered FDMs will differ from those previously considered TDRs. This guidance also requires disclosure of current period gross charge-offs by vintage origination year.

Refer to Note 12 for further information.

102

Note 2 – Fair value measurement

Refer to Note 2 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a discussion of the Firm’s valuation methodologies for assets, liabilities and lending-related commitments measured at fair value and the fair value hierarchy.

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The following table presents the assets and liabilities reported at fair value as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, by major product category and fair value hierarchy.


Assets and liabilities measured at fair value on a recurring basis	Assets and liabilities measured at fair value on a recurring basis											Assets and liabilities measured at fair value on a recurring basis
		Fair value hierarchy						Derivative netting adjustments(f)						Fair value hierarchy										Derivative netting adjustments(f)

September 30, 2022 (in millions)		Level 1		Level 2		Level 3				Total fair value
June 30, 2023 (in millions)												June 30, 2023 (in millions)		Level 1		Level 2				Level 3						Derivative netting adjustments(f)		Total fair value
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	$	—	$	299,242	$	1			$	—	$	299,243		Federal funds sold and securities purchased under resale agreements	$	—	$	322,579			$	—					$	322,579
Securities borrowed	Securities borrowed	—		67,281		—		—		67,281		Securities borrowed		—		55,905				—				55,905
Trading assets:	Trading assets:											Trading assets:
Debt instruments:	Debt instruments:											Debt instruments:
Mortgage-backed securities:	Mortgage-backed securities:											Mortgage-backed securities:
U.S. GSEs and government agencies(a)	U.S. GSEs and government agencies(a)	—		82,050		776		—		82,826		U.S. GSEs and government agencies(a)		—		88,769				706				—		89,475
Residential – nonagency	Residential – nonagency	—		2,188		9		—		2,197		Residential – nonagency		—		2,684				5				—		2,689
Commercial – nonagency	Commercial – nonagency	—		1,432		11		—		1,443		Commercial – nonagency		—		1,517				6				—		1,523
Total mortgage-backed securities	Total mortgage-backed securities	—		85,670		796		—		86,466		Total mortgage-backed securities		—		92,970				717				—		93,687
U.S. Treasury, GSEs and government agencies(a)	U.S. Treasury, GSEs and government agencies(a)	76,042		7,557		—		—		83,599		U.S. Treasury, GSEs and government agencies(a)		129,042		9,204				—				—		138,246
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	—		6,960		7		—		6,967		Obligations of U.S. states and municipalities		—		6,782				6				—		6,788
Certificates of deposit, bankers’ acceptances and commercial paper	Certificates of deposit, bankers’ acceptances and commercial paper	—		1,216		—		—		1,216		Certificates of deposit, bankers’ acceptances and commercial paper		—		2,834				—				—		2,834
Non-U.S. government debt securities	Non-U.S. government debt securities	28,727		44,693		166		—		73,586		Non-U.S. government debt securities		41,423		63,986				199				—		105,608
Corporate debt securities	Corporate debt securities	—		26,427		348		—		26,775		Corporate debt securities		—		33,106				522				—		33,628
Loans	Loans	—		5,210		865		—		6,075		Loans		—		6,984				1,105				—		8,089
Asset-backed securities	Asset-backed securities	—		2,627		26		—		2,653		Asset-backed securities		—		2,497				14				—		2,511
Total debt instruments	Total debt instruments	104,769		180,360		2,208		—		287,337		Total debt instruments		170,465		218,363				2,563				—		391,391
Equity securities	Equity securities	91,572		2,109		580		—		94,261		Equity securities		148,222		1,337				631				—		150,190
Physical commodities(b)	Physical commodities(b)	2,336		13,596		2		—		15,934		Physical commodities(b)		2,442		11,265				6				—		13,713
Other	Other	—		16,296		84		—		16,380		Other		—		17,332				113				—		17,445
Total debt and equity instruments(c)	Total debt and equity instruments(c)	198,677		212,361		2,874		—		413,912		Total debt and equity instruments(c)		321,129		248,297				3,313				—		572,739
Derivative receivables:	Derivative receivables:											Derivative receivables:
Interest rate	Interest rate	12,023		263,527		3,582		(253,300)		25,832		Interest rate		1,988		282,125				4,199				(260,603)		27,709
Credit	Credit	—		13,215		719		(12,063)		1,871		Credit		—		12,535				1,150				(12,440)		1,245
Foreign exchange	Foreign exchange	886		353,603		1,344		(318,966)		36,867		Foreign exchange		204		226,130				1,345				(205,485)		22,194
Equity	Equity	—		80,920		4,881		(74,175)		11,626		Equity		—		57,619				3,773				(54,068)		7,324
Commodity	Commodity	—		38,348		606		(22,616)		16,338		Commodity		—		17,358				282				(11,895)		5,745
Total derivative receivables	Total derivative receivables	12,909		749,613		11,132		(681,120)		92,534		Total derivative receivables		2,192		595,767				10,749				(544,491)		64,217
Total trading assets(d)	Total trading assets(d)	211,586		961,974		14,006		(681,120)		506,446		Total trading assets(d)		323,321		844,064				14,062				(544,491)		636,956
Available-for-sale securities:	Available-for-sale securities:											Available-for-sale securities:
Mortgage-backed securities:	Mortgage-backed securities:											Mortgage-backed securities:
U.S. GSEs and government agencies(a)	U.S. GSEs and government agencies(a)	—		53,331		—		—		53,331		U.S. GSEs and government agencies(a)		1		79,767				—				—		79,768
Residential – nonagency	Residential – nonagency	—		4,762		—		—		4,762		Residential – nonagency		—		3,544				—				—		3,544
Commercial – nonagency	Commercial – nonagency	—		1,937		—		—		1,937		Commercial – nonagency		—		2,056				—				—		2,056
Total mortgage-backed securities	Total mortgage-backed securities	—		60,030		—		—		60,030		Total mortgage-backed securities		1		85,367				—				—		85,368
U.S. Treasury and government agencies	U.S. Treasury and government agencies	90,487		—		—		—		90,487		U.S. Treasury and government agencies		62,688		49				—				—		62,737
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	—		8,582		—		—		8,582		Obligations of U.S. states and municipalities		—		24,023				—				—		24,023
Non-U.S. government debt securities	Non-U.S. government debt securities	6,547		8,054		—		—		14,601		Non-U.S. government debt securities		13,397		8,643				—				—		22,040
Corporate debt securities	Corporate debt securities	—		119		180		—		299		Corporate debt securities		—		121				267				—		388
Asset-backed securities:	Asset-backed securities:											Asset-backed securities:
Collateralized loan obligations	Collateralized loan obligations	—		10,920		—		—		10,920		Collateralized loan obligations		—		5,437				—				—		5,437
Other		—		3,221		—		—		3,221
Other(a)												Other(a)		—		3,269				—				—		3,269
Total available-for-sale securities	Total available-for-sale securities	97,034		90,926		180		—		188,140		Total available-for-sale securities		76,086		126,909				267				—		203,262
Loans(e)	Loans(e)	—		39,913		1,574		—		41,487		Loans(e)		—		34,981				3,808				—		38,789
Mortgage servicing rights	Mortgage servicing rights	—		—		8,140		—		8,140		Mortgage servicing rights		—		—				8,229				—		8,229
Other assets(d)	Other assets(d)	7,605		6,011		376		—		13,992		Other assets(d)		6,146		6,687				417				—		13,250
Total assets measured at fair value on a recurring basis	Total assets measured at fair value on a recurring basis	$	316,225	$	1,465,347	$	24,277	$	(681,120)	$	1,124,729	Total assets measured at fair value on a recurring basis		$	405,553	$	1,391,125			$	26,783			$	(544,491)	$	1,278,970
Deposits	Deposits	$	—	$	19,109	$	1,826	$	—	$	20,935	Deposits		$	—	$	49,515			$	2,053			$	—	$	51,568
Federal funds purchased and securities loaned or sold under repurchase agreements	Federal funds purchased and securities loaned or sold under repurchase agreements	—		180,535		—		—		180,535		Federal funds purchased and securities loaned or sold under repurchase agreements		—		216,604				—				—		216,604
Short-term borrowings	Short-term borrowings	—		14,059		1,584		—		15,643		Short-term borrowings		—		16,238				1,704				—		17,942
Trading liabilities:	Trading liabilities:											Trading liabilities:
Debt and equity instruments(c)	Debt and equity instruments(c)	103,932		29,172		71		—		133,175		Debt and equity instruments(c)		101,437		30,764				63				—		132,264
Derivative payables:	Derivative payables:											Derivative payables:
Interest rate	Interest rate	7,373		255,680		3,027		(248,681)		17,399		Interest rate		1,610		270,411				5,321				(262,185)		15,157
Credit	Credit	—		10,814		376		(10,456)		734		Credit		—		13,306				461				(13,201)		566
Foreign exchange	Foreign exchange	727		351,568		837		(330,302)		22,830		Foreign exchange		185		222,444				956				(209,408)		14,177
Equity	Equity	—		74,707		5,207		(71,775)		8,139		Equity		—		62,016				5,654				(57,865)		9,805
Commodity	Commodity	—		31,415		407		(24,221)		7,601		Commodity		—		18,650				635				(12,445)		6,840
Total derivative payables	Total derivative payables	8,100		724,184		9,854		(685,435)		56,703		Total derivative payables		1,795		586,827				13,027				(555,104)		46,545
Total trading liabilities	Total trading liabilities	112,032		753,356		9,925		(685,435)		189,878		Total trading liabilities		103,232		617,591				13,090				(555,104)		178,809
Accounts payable and other liabilities	Accounts payable and other liabilities	4,445		1,423		69		—		5,937		Accounts payable and other liabilities		3,486		1,547				68				—		5,101
Beneficial interests issued by consolidated VIEs	Beneficial interests issued by consolidated VIEs	—		5		—		—		5		Beneficial interests issued by consolidated VIEs		—		1				—				—		1
Long-term debt	Long-term debt	—		43,517		22,428		—		65,945		Long-term debt		—		53,184				25,425				—		78,609
Total liabilities measured at fair value on a recurring basis	Total liabilities measured at fair value on a recurring basis	$	116,477	$	1,012,004	$	35,832	$	(685,435)	$	478,878	Total liabilities measured at fair value on a recurring basis		$	106,718	$	954,680			$	42,340			$	(555,104)	$	548,634

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		Fair value hierarchy						Derivative netting adjustments(f)								Fair value hierarchy										Derivative netting adjustments(f)

December 31, 2021 (in millions)		Level 1		Level 2		Level 3				Total fair value
December 31, 2022 (in millions)														December 31, 2022 (in millions)		Level 1		Level 2				Level 3						Derivative netting adjustments(f)			Total fair value
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	$	—	$	252,720	$	—			$	—			$	252,720		Federal funds sold and securities purchased under resale agreements	$	—	$	311,883			$	—							$	311,883
Securities borrowed	Securities borrowed	—		81,463		—				—				81,463			Securities borrowed	—		70,041				—					70,041
Trading assets:	Trading assets:													Trading assets:
Debt instruments:	Debt instruments:													Debt instruments:
Mortgage-backed securities:	Mortgage-backed securities:													Mortgage-backed securities:
U.S. GSEs and government agencies(a)	U.S. GSEs and government agencies(a)	—		38,944		265		—				39,209		U.S. GSEs and government agencies(a)		—		68,162				759				—					68,921
Residential – nonagency	Residential – nonagency	—		2,358		28		—				2,386		Residential – nonagency		—		2,498				5				—			2,503
Commercial – nonagency	Commercial – nonagency	—		1,506		10		—				1,516		Commercial – nonagency		—		1,448				7				—			1,455
Total mortgage-backed securities	Total mortgage-backed securities	—		42,808		303		—				43,111		Total mortgage-backed securities		—		72,108				771				—			72,879
U.S. Treasury, GSEs and government agencies(a)	U.S. Treasury, GSEs and government agencies(a)	68,527		9,181		—		—				77,708		U.S. Treasury, GSEs and government agencies(a)		61,191		8,546				—				—			69,737
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	—		7,068		7		—				7,075		Obligations of U.S. states and municipalities		—		6,608				7				—			6,615
Certificates of deposit, bankers’ acceptances and commercial paper	Certificates of deposit, bankers’ acceptances and commercial paper	—		852		—		—				852		Certificates of deposit, bankers’ acceptances and commercial paper		—		2,009				—				—			2,009
Non-U.S. government debt securities	Non-U.S. government debt securities	26,982		44,581		81		—				71,644		Non-U.S. government debt securities		18,213		48,429				155				—			66,797
Corporate debt securities	Corporate debt securities	—		24,491		332		—				24,823		Corporate debt securities		—		25,626				463				—			26,089
Loans	Loans	—		7,366		708		—				8,074		Loans		—		5,744				759				—			6,503
Asset-backed securities	Asset-backed securities	—		2,668		26		—				2,694		Asset-backed securities		—		2,536				23				—			2,559
Total debt instruments	Total debt instruments	95,509		139,015		1,457		—				235,981		Total debt instruments		79,404		171,606				2,178				—			253,188
Equity securities	Equity securities	86,904		1,741		662		—				89,307		Equity securities		82,483		2,060				665				—			85,208
Physical commodities(b)	Physical commodities(b)	5,357		20,788		—		—				26,145		Physical commodities(b)		9,595		16,673				2				—			26,270
Other	Other	—		24,850		160		—				25,010		Other		—		18,146				64				—			18,210
Total debt and equity instruments(c)	Total debt and equity instruments(c)	187,770		186,394		2,279		—				376,443		Total debt and equity instruments(c)		171,482		208,485				2,909				—			382,876
Derivative receivables:	Derivative receivables:													Derivative receivables:
Interest rate	Interest rate	1,072		267,493		2,020		(248,611)				21,974		Interest rate		3,390		292,956				4,069				(271,996)			28,419
Credit	Credit	—		9,321		518		(8,808)				1,031		Credit		—		9,722				607				(9,239)			1,090
Foreign exchange	Foreign exchange	134		168,590		855		(156,954)				12,625		Foreign exchange		169		240,207				1,203				(218,214)			23,365
Equity	Equity	—		65,139		3,492		(58,650)				9,981		Equity		—		57,485				4,428				(52,774)			9,139
Commodity	Commodity	—		26,232		421		(15,183)				11,470		Commodity		—		24,982				375				(16,490)			8,867
Total derivative receivables	Total derivative receivables	1,206		536,775		7,306		(488,206)				57,081		Total derivative receivables		3,559		625,352				10,682				(568,713)			70,880
Total trading assets(d)	Total trading assets(d)	188,976		723,169		9,585		(488,206)				433,524		Total trading assets(d)		175,041		833,837				13,591				(568,713)			453,756
Available-for-sale securities:	Available-for-sale securities:													Available-for-sale securities:
Mortgage-backed securities:	Mortgage-backed securities:													Mortgage-backed securities:
U.S. GSEs and government agencies(a)	U.S. GSEs and government agencies(a)	4		72,539		—		—				72,543		U.S. GSEs and government agencies(a)		3		71,500				—				—			71,503
Residential – nonagency	Residential – nonagency	—		6,070		—		—				6,070		Residential – nonagency		—		4,620				—				—			4,620
Commercial – nonagency	Commercial – nonagency	—		4,949		—		—				4,949		Commercial – nonagency		—		1,958				—				—			1,958
Total mortgage-backed securities	Total mortgage-backed securities	4		83,558		—		—				83,562		Total mortgage-backed securities		3		78,078				—				—			78,081
U.S. Treasury and government agencies	U.S. Treasury and government agencies	177,463		—		—		—				177,463		U.S. Treasury and government agencies		92,060		—				—				—			92,060
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	—		15,860		—		—				15,860		Obligations of U.S. states and municipalities		—		6,786				—				—			6,786
Non-U.S. government debt securities	Non-U.S. government debt securities	5,430		10,779		—		—				16,209		Non-U.S. government debt securities		10,591		9,105				—				—			19,696
Corporate debt securities	Corporate debt securities	—		160		161		—				321		Corporate debt securities		—		118				239				—			357
Asset-backed securities:	Asset-backed securities:													Asset-backed securities:
Collateralized loan obligations	Collateralized loan obligations	—		9,662		—		—				9,662		Collateralized loan obligations		—		5,792				—				—			5,792
Other	Other	—		5,448		—		—				5,448		Other		—		3,085				—				—			3,085
Total available-for-sale securities	Total available-for-sale securities	182,897		125,467		161		—				308,525		Total available-for-sale securities		102,654		102,964				239				—			205,857
Loans(e)	Loans(e)	—		56,887		1,933		—				58,820		Loans(e)		—		40,661				1,418				—			42,079
Mortgage servicing rights	Mortgage servicing rights	—		—		5,494		—				5,494		Mortgage servicing rights		—		—				7,973				—			7,973
Other assets(d)	Other assets(d)	9,558		4,139		306		—				14,003		Other assets(d)		7,544		6,065				405				—			14,014
Total assets measured at fair value on a recurring basis	Total assets measured at fair value on a recurring basis	$	381,431	$	1,243,845	$	17,479	$	(488,206)			$	1,154,549	Total assets measured at fair value on a recurring basis		$	285,239	$	1,365,451			$	23,626			$	(568,713)		$	1,105,603
Deposits	Deposits	$	—	$	9,016	$	2,317	$	—			$	11,333	Deposits		$	—	$	26,458			$	2,162			$	—		$	28,620
Federal funds purchased and securities loaned or sold under repurchase agreements	Federal funds purchased and securities loaned or sold under repurchase agreements	—		126,435		—		—				126,435		Federal funds purchased and securities loaned or sold under repurchase agreements		—		151,999				—				—			151,999
Short-term borrowings	Short-term borrowings	—		17,534		2,481		—				20,015		Short-term borrowings		—		14,391				1,401				—			15,792
Trading liabilities:	Trading liabilities:													Trading liabilities:
Debt and equity instruments(c)	Debt and equity instruments(c)	87,831		26,716		30		—				114,577		Debt and equity instruments(c)		98,719		28,032				84				—			126,835
Derivative payables:	Derivative payables:													Derivative payables:
Interest rate	Interest rate	981		237,714		2,036		(232,537)				8,194		Interest rate		2,643		284,280				3,368				(274,321)			15,970
Credit	Credit	—		10,468		444		(10,032)				880		Credit		—		9,377				594				(9,217)			754
Foreign exchange	Foreign exchange	123		174,349		1,274		(161,649)				14,097		Foreign exchange		160		250,647				714				(232,665)			18,856
Equity	Equity	—		72,609		7,118		(62,494)				17,233		Equity		—		57,649				4,812				(53,657)			8,804
Commodity	Commodity	—		26,600		1,328		(18,216)				9,712		Commodity		—		22,748				521				(16,512)			6,757
Total derivative payables	Total derivative payables	1,104		521,740		12,200		(484,928)				50,116		Total derivative payables		2,803		624,701				10,009				(586,372)			51,141
Total trading liabilities	Total trading liabilities	88,935		548,456		12,230		(484,928)				164,693		Total trading liabilities		101,522		652,733				10,093				(586,372)			177,976
Accounts payable and other liabilities	Accounts payable and other liabilities	5,115		467		69		—				5,651		Accounts payable and other liabilities		5,702		1,283				53				—			7,038
Beneficial interests issued by consolidated VIEs	Beneficial interests issued by consolidated VIEs	—		12		—		—				12		Beneficial interests issued by consolidated VIEs		—		5				—				—			5
Long-term debt	Long-term debt	—		50,560		24,374		—				74,934		Long-term debt		—		48,189				24,092				—			72,281
Total liabilities measured at fair value on a recurring basis	Total liabilities measured at fair value on a recurring basis	$	94,050	$	752,480	$	41,471	$	(484,928)			$	403,073	Total liabilities measured at fair value on a recurring basis		$	107,224	$	895,058			$	37,801			$	(586,372)		$	453,711

(a)At ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, included total U.S. GSE obligations of ~~$90.1~~$93.5 billion and ~~$73.9~~$73.8 billion, respectively, which were mortgage-related.

(b)Physical commodities inventories are generally accounted for at the lower of cost or net realizable value. “Net realizable value” is a term defined in U.S. GAAP as not exceeding fair value less costs to sell (“transaction costs”). Transaction costs for the Firm’s physical commodities inventories are either not applicable or immaterial to the value of the inventory. Therefore, net realizable value approximates fair value for the Firm’s physical commodities inventories. When fair value hedging has been applied (or when net realizable value is below cost), the carrying value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in fair value. Refer to Note 45 for a further discussion of the Firm’s hedge accounting relationships. To provide consistent fair value disclosure information, all physical commodities inventories have been included in each period presented.

98105

(c)Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions).

(d)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not required to be classified in the fair value hierarchy. At ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were ~~$882~~$956 million and ~~$801~~$950 million, respectively. Included in these balances at ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, were trading assets of ~~$41~~$40 million and ~~$51~~$43 million, respectively, and other assets of ~~$841~~$916 million and ~~$750~~$907 million, respectively.

(e)At ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, included ~~$11.4~~$9.3 billion and ~~$26.2~~$9.7 billion, respectively, of residential first-lien mortgages, and ~~$7.5~~$6.8 billion ~~and $8.2 billion, respectively,~~ of commercial first-lien ~~mortgages.~~mortgages for both periods. Residential mortgage loans include conforming mortgage loans originated with the intent to sell to U.S. GSEs and government agencies of ~~$3.4~~$3.3 billion and ~~$13.6~~$2.4 billion, respectively.

(f)As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral.

Level 3 valuations

Refer to Note 2 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further information on the Firm’s valuation process and a detailed discussion of the determination of fair value for individual financial instruments.

The following table presents the Firm’s primary level 3 financial instruments, the valuation techniques used to measure the fair value of those financial instruments, the significant unobservable inputs, the range of values for those inputs and the weighted or arithmetic averages of such inputs. While the determination to classify an instrument within level 3 is based on the significance of the unobservable inputs to the overall fair value measurement, level 3 financial instruments typically include observable components (that is, components that are actively quoted and can be validated to external sources) in addition to the unobservable components. The level 1 and/or level 2 inputs are not included in the table. In addition, the Firm manages the risk of the observable components of level 3 financial instruments using securities and derivative positions that are classified within levels 1 or 2 of the fair value hierarchy.

The range of values presented in the table is representative of the highest and lowest level input used to value the significant groups of instruments within a product/instrument classification. Where provided, the weighted averages of the input values presented in the table are calculated based on the fair value of the instruments that the input is being used to value.

In the Firm’s view, the input range, weighted and arithmetic average values do not reflect the degree of input uncertainty or an assessment of the reasonableness of the Firm’s estimates and assumptions. Rather, they reflect the characteristics of the various instruments held by the Firm and the relative distribution of instruments within the range of characteristics. For example, two option contracts may have similar levels of market risk exposure and valuation uncertainty, but may have significantly different implied volatility levels because the option contracts have different underlyings, tenors, or strike prices. The input range and weighted average values will therefore vary from period-to-period and parameter-to-parameter based on the characteristics of the instruments held by the Firm at each balance sheet date.

99106


Level 3 inputs(a)	Level 3 inputs(a)									Level 3 inputs(a)
September 30, 2022
June 30, 2023										June 30, 2023
Product/Instrument	Product/Instrument	Fair value (in millions)		Principal valuation technique	Unobservable inputs(g)	Range of input values		Average(i)		Product/Instrument	Fair value (in millions)		Principal valuation technique	Unobservable inputs(g)	Range of input values		Average(i)
Residential mortgage-backed securities and loans(b)	Residential mortgage-backed securities and loans(b)	$	1,685	Discounted cash flows	Yield	3%	20%		7%	Residential mortgage-backed securities and loans(b)	$	1,641	Discounted cash flows	Yield	6%	40%		7%
					Prepayment speed	3%	11%		8%					Prepayment speed	3%	11%		8%
					Conditional default rate	0%	5%		0%					Conditional default rate	0%	5%		0%
					Loss severity	0%	110%		4%					Loss severity	0%	110%		3%
Commercial mortgage-backed securities and loans(c)	Commercial mortgage-backed securities and loans(c)	413		Market comparables	Price	$0	$100		$83	Commercial mortgage-backed securities and loans(c)	2,318		Market comparables	Price	$0	$101		$84
Corporate debt securities	Corporate debt securities	528		Market comparables	Price	$0	$110		$95	Corporate debt securities	789		Market comparables	Price	$0	$242		$95
Loans(d)	Loans(d)	1,137		Market comparables	Price	$0	$356		$83	Loans(d)	1,671		Market comparables	Price	$0	$108		$78
Non-U.S. government debt securities	Non-U.S. government debt securities	166		Market comparables	Price	$6	$100		$90	Non-U.S. government debt securities	199		Market comparables	Price	$6	$106		$91
Net interest rate derivatives	Net interest rate derivatives	580		Option pricing	Interest rate volatility	28 bps	682 bps		131 bps	Net interest rate derivatives	(1,105)		Option pricing	Interest rate volatility	26 bps	674 bps		131 bps
					Interest rate spread volatility	23 bps	35 bps		26 bps					Interest rate spread volatility	37 bps	77 bps		64 bps
					Bermudan switch value	8%	58%		18%					Bermudan switch value	0%	58%		20%
					Interest rate correlation	(85)%	89%		16%					Interest rate correlation	(82)%	90%		15%
					IR-FX correlation	(35)%	60%		7%					IR-FX correlation	(35)%	60%		5%
		(25)		Discounted cash flows	Prepayment speed	0%	21%		7%		(17)		Discounted cash flows	Prepayment speed	0%	15%		5%
Net credit derivatives	Net credit derivatives	320		Discounted cash flows	Credit correlation	30%	60%		44%	Net credit derivatives	673		Discounted cash flows	Credit correlation	35%	65%		48%
					Credit spread	1 bps	6,152 bps		678 bps					Credit spread	0 bps	11,279 bps		342 bps
					Recovery rate	15%	67%		46%					Recovery rate	10%	90%		40%
		23		Market comparables	Price	$15	$104		$82		16		Market comparables	Price	$15	$115		$83
Net foreign exchange derivatives	Net foreign exchange derivatives	595		Option pricing	IR-FX correlation	(40)%	60%		20%	Net foreign exchange derivatives	461		Option pricing	IR-FX correlation	(40)%	60%		19%
		(88)		Discounted cash flows	Prepayment speed	9%			9%		(72)		Discounted cash flows	Prepayment speed	11%			11%
					Interest rate curve	2%	32%		8%					Interest rate curve	0%	30%		6%
Net equity derivatives	Net equity derivatives	(326)		Option pricing	Forward equity price(h)	84%	146%		101%	Net equity derivatives	(1,881)		Option pricing	Forward equity price(h)	84%	142%		101%
					Equity volatility	5%	146%		38%					Equity volatility	3%	167%		32%
					Equity correlation	17%	99%		55%					Equity correlation	15%	100%		58%
					Equity-FX correlation	(86)%	60%		(28)%					Equity-FX correlation	(86)%	60%		(29)%
					Equity-IR correlation	15%	50%		27%					Equity-IR correlation	10%	35%		21%
Net commodity derivatives	Net commodity derivatives	199		Option pricing	Oil commodity forward	$65 / BBL	$319 / BBL		$192 / BBL	Net commodity derivatives	(353)		Option pricing	Oil commodity forward	$95 / BBL	$249 / BBL		$172 / BBL
					Natural gas commodity forward	$2 / MMBTU	$18 / MMBTU		$10 / MMBTU					Natural gas commodity forward	$1 / MMBTU	$7 / MMBTU		$4 / MMBTU
					Commodity volatility	4%	144%		74%					Commodity volatility	5%	175%		90%
					Commodity correlation	(30)%	77%		24%					Commodity correlation	(28)%	80%		26%
MSRs	MSRs	8,140		Discounted cash flows	Refer to Note 14					MSRs	8,229		Discounted cash flows	Refer to Note 15
Long-term debt, short-term borrowings, and deposits(e)	Long-term debt, short-term borrowings, and deposits(e)	24,723		Option pricing	Interest rate volatility	28 bps	682 bps		131 bps	Long-term debt, short-term borrowings, and deposits(e)	27,806		Option pricing	Interest rate volatility	26 bps	674 bps		131 bps
					Interest rate correlation	(85)%	89%		16%					Bermudan switch value	0%	58%		20%
					IR-FX correlation	(35)%	60%		7%					Interest rate correlation	(82)%	90%		15%
					Equity correlation	17%	99%		55%					IR-FX correlation	(35)%	60%		5%
					Equity-FX correlation	(86)%	60%		(28)%					Equity correlation	15%	100%		58%
					Equity-IR correlation	15%	50%		27%					Equity-FX correlation	(86)%	60%		(29)%
Long-term debt, short-term borrowings, and deposits(e)														Equity-IR correlation	10%	35%		21%
		1,115		Discounted cash flows	Credit correlation	30%	60%		44%		1,376		Discounted cash flows	Credit correlation	35%	65%		48%
	Other level 3 assets and liabilities, net(f)	936								Other level 3 assets and liabilities, net(f)	1,056

(a)The categories presented in the table have been aggregated based upon the product type, which may differ from their classification on the Consolidated balance sheets. Furthermore, the inputs presented for each valuation technique in the table are, in some cases, not applicable to every instrument valued using the technique as the characteristics of the instruments can differ.

(b)Comprises U.S. GSE and government agency securities of ~~$776~~$706 million, nonagency securities of $9$5 million and non-trading loans of ~~$900~~$930 million.

(c)Comprises nonagency securities of ~~$11~~$6 million, trading loans of ~~$40~~$72 million and non-trading loans of ~~$362 million.~~$2.2 billion.

(d)Comprises trading loans of ~~$825 million~~$1.0 billion and non-trading loans of ~~$312~~$638 million.

(e)Long-term debt, short-term borrowings and deposits include structured notes issued by the Firm that are financial instruments that typically contain embedded derivatives. The estimation of the fair value of structured notes includes the derivative features embedded within the instrument. The significant unobservable inputs are broadly consistent with those presented for derivative receivables.

(f)Includes equity securities of ~~$807~~$843 million including ~~$227~~$213 million in Other ~~Assets,~~assets, for which quoted prices are not readily available and the fair value is generally based on internal valuation techniques such as EBITDA multiples and comparable analysis. All other level 3 assets and liabilities are insignificant both individually and in aggregate.

(g)Price is a significant unobservable input for certain instruments. When quoted market prices are not readily available, reliance is generally placed on price-based internal valuation techniques. The price input is expressed assuming a par value of $100.

(h)Forward equity price is expressed as a percentage of the current equity price.

(i)Amounts represent weighted averages except for derivative related inputs where arithmetic averages are used.

~~100~~107

Changes in and ranges of unobservable inputs

Refer to Note 2 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a discussion of the impact on fair value of changes in unobservable inputs and the relationships between unobservable inputs as well as a description of attributes of the underlying instruments and external market factors that affect the range of inputs used in the valuation of the Firm’s positions.

Changes in level 3 recurring fair value measurements

The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the three ~~and nine~~ months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable inputs to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. Also, the Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm’s risk management activities related to such level 3 instruments.

~~101~~108


		Fair value measurements using significant unobservable inputs																								Fair value measurements using significant unobservable inputs
Three months ended September 30, 2022 (in millions)		Fair value at July 1, 2022		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2022			Change in unrealized gains/(losses) related to financial instruments held at September 30, 2022
							Purchases(g)		Sales				Settlements(h)
Three months ended June 30, 2023 (in millions)																									Three months ended June 30, 2023 (in millions)	Fair value at April 1, 2023		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at June 30, 2023			Change in unrealized gains/(losses) related to financial instruments held at June 30, 2023
																															Purchases(g)		Sales				Settlements(h)
Assets:(a)	Assets:(a)																								Assets:(a)
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	$	1	$	—		$	1	$	—			$	(1)	$	—	$	—		$	1	$	—		Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	—	$	—		$	—	$	—
Trading assets:	Trading assets:																								Trading assets:
Debt instruments:	Debt instruments:																								Debt instruments:
Mortgage-backed securities:	Mortgage-backed securities:																								Mortgage-backed securities:
U.S. GSEs and government agencies	U.S. GSEs and government agencies	803		5			5		—				(32)		—		(5)			776		5			U.S. GSEs and government agencies	757		—			106		(106)				(40)		—		(11)			706		(6)
Residential – nonagency	Residential – nonagency	14		—			1		(5)				—		—		(1)			9		—			Residential – nonagency	5		6			—		(6)				—		—		—			5		—
Commercial – nonagency	Commercial – nonagency	10		(1)			—		(1)				—		3		—			11		(1)			Commercial – nonagency	10		(1)			—		—				—		5		(8)			6		(1)
Total mortgage-backed securities	Total mortgage-backed securities	827		4			6		(6)				(32)		3		(6)			796		4			Total mortgage-backed securities	772		5			106		(112)				(40)		5		(19)			717		(7)
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	7		1			—		(1)				—		—		—			7		1			Obligations of U.S. states and municipalities	6		—			—		—				—		—		—			6		—
Non-U.S. government debt securities	Non-U.S. government debt securities	205		(11)			21		(22)				(4)		8		(31)			166		(11)			Non-U.S. government debt securities	169		29			50		(49)				—		—		—			199		31
Corporate debt securities	Corporate debt securities	574		2			45		(75)				(28)		66		(236)			348		11			Corporate debt securities	538		—			61		(43)				(2)		7		(39)			522		(2)
Loans	Loans	898		(15)			103		(144)				(43)		252		(186)			865		(16)			Loans	926		(6)			246		(65)				(18)		102		(80)			1,105		(6)
Asset-backed securities	Asset-backed securities	20		5			15		(13)				—		—		(1)			26		1			Asset-backed securities	7		—			4		(1)				—		4		—			14		—
Total debt instruments	Total debt instruments	2,531		(14)			190		(261)				(107)		329		(460)			2,208		(10)			Total debt instruments	2,418		28			467		(270)				(60)		118		(138)			2,563		16
Equity securities	Equity securities	661		(43)			16		(60)				(2)		18		(10)			580		(46)			Equity securities	581		(16)			50		(36)				—		104		(52)			631		(16)
Physical commodities	Physical commodities	2		(1)			1		—				—		—		—			2		(1)			Physical commodities	—		—			6		—				—		—		—			6		—
Other	Other	87		19			10		—				(32)		1		(1)			84		15			Other	140		(19)			2		—				(6)		—		(4)			113		(18)
Total trading assets – debt and equity instruments	Total trading assets – debt and equity instruments	3,281		(39)		(c)	217		(321)				(141)		348		(471)			2,874		(42)		(c)	Total trading assets – debt and equity instruments	3,139		(7)		(c)	525		(306)				(66)		222		(194)			3,313		(18)		(c)
Net derivative receivables:(b)	Net derivative receivables:(b)																								Net derivative receivables:(b)
Interest rate	Interest rate	420		(574)			60		(108)				(38)		848		(53)			555		(552)			Interest rate	754		(1,043)			60		(42)				49		(914)		14			(1,122)		(960)
Credit	Credit	249		56			6		(1)				41		2		(10)			343		69			Credit	452		228			—		(1)				31		2		(23)			689		240
Foreign exchange	Foreign exchange	245		217			31		(43)				43		(1)		15			507		166			Foreign exchange	545		(37)			51		(67)				(126)		55		(32)			389		(29)
Equity	Equity	(1,234)		904			272		(424)				385		(134)		(95)			(326)		902			Equity	(885)		(148)			295		(675)				(726)		349		(91)			(1,881)		9
Commodity	Commodity	26		116			14		(51)				29		4		61			199		141			Commodity	(287)		(50)			35		(51)				16		(12)		(4)			(353)		(71)
Total net derivative receivables	Total net derivative receivables	(294)		719		(c)	383		(627)				460		719		(82)			1,278		726		(c)	Total net derivative receivables	579		(1,050)		(c)	441		(836)				(756)		(520)		(136)			(2,278)		(811)		(c)
Available-for-sale securities:	Available-for-sale securities:																								Available-for-sale securities:
Mortgage-backed securities		—		—			—		—				—		—		—			—		—
Corporate debt securities	Corporate debt securities	186		(6)			—		—				—		—		—			180		(6)			Corporate debt securities	250		17			—		—				—		—		—			267		17
Total available-for-sale securities	Total available-for-sale securities	186		(6)		(d)	—		—				—		—		—			180		(6)		(d)	Total available-for-sale securities	250		17		(d)	—		—				—		—		—			267		17		(d)
Loans	Loans	2,020		(53)		(c)	37		(85)				(102)		213		(456)			1,574		(52)		(c)	Loans	1,479		(3)		(c)	2,137		(7)				(490)		760		(68)			3,808		(52)		(c)
Mortgage servicing rights	Mortgage servicing rights	7,439		504		(e)	510		(79)				(234)		—		—			8,140		504		(e)	Mortgage servicing rights	7,755		275		(e)	546		(92)				(255)		—		—			8,229		275		(e)
Other assets	Other assets	408		11		(c)	2		(1)				(44)		—		—			376		11		(c)	Other assets	406		16		(c)	5		(2)				(14)		8		(2)			417		16		(c)

		Fair value measurements using significant unobservable inputs																								Fair value measurements using significant unobservable inputs
Three months ended September 30, 2022 (in millions)		Fair value at July 1, 2022		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2022			Change in unrealized (gains)/losses related to financial instruments held at September 30, 2022
							Purchases		Sales		Issuances		Settlements(h)
Three months ended June 30, 2023 (in millions)																									Three months ended June 30, 2023 (in millions)	Fair value at April 1, 2023		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at June 30, 2023			Change in unrealized (gains)/losses related to financial instruments held at June 30, 2023
																															Purchases		Sales		Issuances		Settlements(h)
Liabilities:(a)	Liabilities:(a)																								Liabilities:(a)
Deposits	Deposits	$	2,032	$	(152)	(c)(f)	$	—	$	—	$	24	$	(18)	$	—	$	(60)		$	1,826	$	(154)	(c)(f)	Deposits	$	2,208	$	(51)	(c)(f)	$	—	$	—	$	139	$	(181)	$	—	$	(62)		$	2,053	$	(51)	(c)(f)
Short-term borrowings	Short-term borrowings	2,101		(22)		(c)(f)	—		—		863		(1,354)		—		(4)			1,584		(51)		(c)(f)	Short-term borrowings	1,410		50		(c)(f)	—		—		1,191		(927)		2		(22)			1,704		29		(c)(f)
Trading liabilities – debt and equity instruments	Trading liabilities – debt and equity instruments	56		3		(c)	(5)		14		—		—		7		(4)			71		7		(c)	Trading liabilities – debt and equity instruments	63		(1)		(c)	—		(2)		—		(2)		6		(1)			63		(1)		(c)
Accounts payable and other liabilities	Accounts payable and other liabilities	73		(4)		(c)	—		—		—		—		—		—			69		(4)		(c)	Accounts payable and other liabilities	56		5		(c)	(2)		3		—		—		8		(2)			68		5		(c)
Long-term debt	Long-term debt	23,077		(1,037)		(c)(f)	—		—		2,943		(2,404)		297		(448)			22,428		(1,075)		(c)(f)	Long-term debt	25,227		325		(c)(f)	—		—		2,667		(2,550)		113		(357)			25,425		354		(c)(f)

~~102~~109


		Fair value measurements using significant unobservable inputs																								Fair value measurements using significant unobservable inputs
Three months ended September 30, 2021 (in millions)		Fair value at July 1, 2021		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2021			Change in unrealized gains/(losses) related to financial instruments held at September 30, 2021
							Purchases(g)		Sales				Settlements(h)
Three months ended June 30, 2022 (in millions)																									Three months ended June 30, 2022 (in millions)	Fair value at April 1, 2022		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at June 30, 2022			Change in unrealized gains/(losses) related to financial instruments held at June 30, 2022
																															Purchases(g)		Sales				Settlements(h)
Assets:(a)	Assets:(a)																								Assets:(a)
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	—	$	—		$	—	$	—		Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	1	$	—		$	1	$	—
Trading assets:	Trading assets:																								Trading assets:
Debt instruments:	Debt instruments:																								Debt instruments:
Mortgage-backed securities:	Mortgage-backed securities:																								Mortgage-backed securities:
U.S. GSEs and government agencies	U.S. GSEs and government agencies	329		(12)			13		(6)				(25)		—		—			299		(12)			U.S. GSEs and government agencies	286		(1)			643		(118)				(7)		—		—			803		(2)
Residential – nonagency	Residential – nonagency	16		—			9		—				(1)		—		—			24		(1)			Residential – nonagency	10		—			5		—				(1)		—		—			14		—
Commercial – nonagency	Commercial – nonagency	10		7			1		—				(13)		14		—			19		6			Commercial – nonagency	10		—			—		—				—		—		—			10		—
Total mortgage-backed securities	Total mortgage-backed securities	355		(5)			23		(6)				(39)		14		—			342		(7)			Total mortgage-backed securities	306		(1)			648		(118)				(8)		—		—			827		(2)
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	8		—			—		—				(1)		—		—			7		—			Obligations of U.S. states and municipalities	7		—			—		—				—		—		—			7		—
Non-U.S. government debt securities	Non-U.S. government debt securities	183		(2)			128		(98)				—		—		(107)			104		(1)			Non-U.S. government debt securities	133		(9)			177		(86)				—		6		(16)			205		(8)
Corporate debt securities	Corporate debt securities	487		(33)			38		(115)				(3)		25		(29)			370		(25)			Corporate debt securities	293		(16)			272		(12)				—		57		(20)			574		(16)
Loans	Loans	795		—			219		(197)				(130)		409		(114)			982		2			Loans	1,049		(33)			122		(164)				(152)		254		(178)			898		(32)
Asset-backed securities	Asset-backed securities	35		1			3		(4)				—		—		(7)			28		—			Asset-backed securities	28		—			1		(10)				—		1		—			20		—
Total debt instruments	Total debt instruments	1,863		(39)			411		(420)				(173)		448		(257)			1,833		(31)			Total debt instruments	1,816		(59)			1,220		(390)				(160)		318		(214)			2,531		(58)
Equity securities	Equity securities	690		(41)			5		(44)				—		62		(38)			634		(34)			Equity securities	663		(99)			98		(61)				—		106		(46)			661		(90)
Physical commodities																									Physical commodities	—		—			2		—				—		—		—			2		—
Other	Other	47		26			17		—				(31)		—		(1)			58		26			Other	175		66			6		—				(158)		—		(2)			87		60
Total trading assets – debt and equity instruments	Total trading assets – debt and equity instruments	2,600		(54)		(c)	433		(464)				(204)		510		(296)			2,525		(39)		(c)	Total trading assets – debt and equity instruments	2,654		(92)		(c)	1,326		(451)				(318)		424		(262)			3,281		(88)		(c)
Net derivative receivables:(b)	Net derivative receivables:(b)																								Net derivative receivables:(b)
Interest rate	Interest rate	(22)		618			21		(44)				(683)		13		(16)			(113)		246			Interest rate	367		160			99		(135)				105		44		(220)			420		204
Credit	Credit	(17)		(9)			4		(7)				59		(4)		(32)			(6)		(1)			Credit	44		264			4		(3)				(65)		1		4			249		255
Foreign exchange	Foreign exchange	(583)		2			28		(44)				41		(5)		4			(557)		15			Foreign exchange	76		193			15		(19)				(38)		24		(6)			245		174
Equity	Equity	(4,936)		723			192		(1,001)				912		214		59			(3,837)		397			Equity	(2,583)		1,838			162		(466)				(140)		(227)		182			(1,234)		1,788
Commodity	Commodity	(1,167)		88			130		(88)				156		(2)		11			(872)		178			Commodity	(414)		382			18		(69)				112		(1)		(2)			26		423
Total net derivative receivables	Total net derivative receivables	(6,725)		1,422		(c)	375		(1,184)				485		216		26			(5,385)		835		(c)	Total net derivative receivables	(2,510)		2,837		(c)	298		(692)				(26)		(159)		(42)			(294)		2,844		(c)
Available-for-sale securities:	Available-for-sale securities:																								Available-for-sale securities:
Mortgage-backed securities		—		—			—		—				—		—		—			—		—
Corporate debt securities	Corporate debt securities	—		—			95		—				—		—		—			95		—			Corporate debt securities	205		(19)			—		—				—		—		—			186		(19)
Total available-for-sale securities	Total available-for-sale securities	—		—			95		—				—		—		—			95		—			Total available-for-sale securities	205		(19)		(d)	—		—				—		—		—			186		(19)		(d)
Loans	Loans	1,734		(13)		(c)	209		(1)				(180)		427		(105)			2,071		(11)		(c)	Loans	2,072		(82)		(c)	273		(95)				(250)		226		(124)			2,020		(80)		(c)
Mortgage servicing rights	Mortgage servicing rights	4,549		(11)		(e)	1,013		1				(201)		—		—			5,351		(11)		(e)	Mortgage servicing rights	7,294		654		(e)	341		(614)				(236)		—		—			7,439		654		(e)
Other assets	Other assets	518		(35)		(c)	3		—				(165)		—		—			321		(34)		(c)	Other assets	341		116		(c)	5		(28)				(20)		—		(6)			408		116		(c)

		Fair value measurements using significant unobservable inputs																								Fair value measurements using significant unobservable inputs
Three months ended September 30, 2021 (in millions)		Fair value at July 1, 2021		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2021			Change in unrealized (gains)/losses related to financial instruments held at September 30, 2021
							Purchases		Sales		Issuances		Settlements(h)
Three months ended June 30, 2022 (in millions)																									Three months ended June 30, 2022 (in millions)	Fair value at April 1, 2022		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at June 30, 2022			Change in unrealized (gains)/losses related to financial instruments held at June 30, 2022
																															Purchases		Sales		Issuances		Settlements(h)
Liabilities:(a)	Liabilities:(a)																								Liabilities:(a)
Deposits	Deposits	$	2,684	$	(11)	(c)(f)	$	—	$	—	$	33	$	(172)	$	—	$	(157)		$	2,377	$	(7)	(c)(f)	Deposits	$	2,121	$	(160)	(c)(f)	$	—	$	—	$	138	$	(21)	$	—	$	(46)		$	2,032	$	(160)	(c)(f)
Short-term borrowings	Short-term borrowings	3,075		(699)		(c)(f)	—		—		1,166		(1,121)		—		(10)			2,411		(124)		(c)(f)	Short-term borrowings	2,146		14		(c)(f)	—		—		963		(1,036)		14		—			2,101		93		(c)(f)
Trading liabilities – debt and equity instruments	Trading liabilities – debt and equity instruments	36		(2)		(c)	(8)		2		—		—		3		(1)			30		1		(c)	Trading liabilities – debt and equity instruments	41		1		(c)	(20)		4		—		—		30		—			56		1		(c)
Accounts payable and other liabilities	Accounts payable and other liabilities	51		—			—		—		—		—		—		—			51		1		(c)	Accounts payable and other liabilities	108		(2)		(c)	(28)		1		—		—		—		(6)			73		(2)		(c)
Long-term debt	Long-term debt	23,527		(216)		(c)(f)	—		—		2,950		(2,512)		11		(246)			23,514		(242)		(c)(f)	Long-term debt	24,394		(2,640)		(c)(f)	—		—		3,470		(2,045)		179		(281)			23,077		(2,613)		(c)(f)

~~103~~110


		Fair value measurements using significant unobservable inputs																												Fair value measurements using significant unobservable inputs
Nine months ended September 30, 2022 (in millions)		Fair value at Jan 1, 2022		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2022			Change in unrealized gains/(losses) related to financial instruments held at September 30, 2022
							Purchases(g)		Sales				Settlements(h)
Six months ended June 30, 2023 (in millions)																									Six months ended June 30, 2023 (in millions)	Fair value at Jan 1, 2023	Total realized/unrealized gains/(losses)															Transfers into level 3	Transfers (out of) level 3			Fair value at June 30, 2023					Change in unrealized gains/(losses) related to financial instruments held at June 30, 2023
																													Purchases(g)			Sales					Settlements(h)
Assets:(a)	Assets:(a)																											Assets:(a)
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	1	$	—			$	(1)	$	1	$	—		$	1	$	—					Federal funds sold and securities purchased under resale agreements		$	—		$	—				$	—	$	—						$	—	$	—		$	—	$	—	$	—
Trading assets:	Trading assets:																											Trading assets:
Debt instruments:	Debt instruments:																											Debt instruments:
Mortgage-backed securities:	Mortgage-backed securities:																											Mortgage-backed securities:
U.S. GSEs and government agencies	U.S. GSEs and government agencies	265		31			670		(125)				(60)		—		(5)			776		29						U.S. GSEs and government agencies		759			7					131		(113)							(64)		—			(14)		706		2
Residential – nonagency	Residential – nonagency	28		—			6		(5)				(12)		—		(8)			9		(1)						Residential – nonagency		5			7					—		(6)							(2)		1			—		5		1
Commercial – nonagency	Commercial – nonagency	10		(1)			—		(1)				—		3		—			11		(1)						Commercial – nonagency		7			—					—		—							(1)		8			(8)		6		(1)
Total mortgage-backed securities	Total mortgage-backed securities	303		30			676		(131)				(72)		3		(13)			796		27						Total mortgage-backed securities		771			14					131		(119)							(67)		9			(22)		717		2
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	7		1			—		(1)				—		—		—			7		2						Obligations of U.S. states and municipalities		7			—					—		(1)							—		—			—		6		—
Non-U.S. government debt securities	Non-U.S. government debt securities	81		(53)			426		(288)				(4)		51		(47)			166		(50)						Non-U.S. government debt securities		155			40					100		(96)							—		—			—		199		43
Corporate debt securities	Corporate debt securities	332		(33)			378		(146)				(65)		164		(282)			348		(27)						Corporate debt securities		463			24					110		(60)							(2)		30			(43)		522		18
Loans	Loans	708		(52)			522		(406)				(202)		777		(482)			865		(25)						Loans		759			2					682		(127)							(113)		125			(223)		1,105		1
Asset-backed securities	Asset-backed securities	26		5			17		(23)				—		5		(4)			26		1						Asset-backed securities		23			—					5		(3)							(1)		5			(15)		14		(1)
Total debt instruments	Total debt instruments	1,457		(102)			2,019		(995)				(343)		1,000		(828)			2,208		(72)						Total debt instruments		2,178			80					1,028		(406)							(183)		169			(303)		2,563		63
Equity securities	Equity securities	662		(955)			337		(361)				(2)		977		(78)			580		(407)						Equity securities		665			(47)					108		(107)							—		140			(128)		631		(27)
Physical Commodities	Physical Commodities	—		(1)			3		—				—		—		—			2		(1)						Physical Commodities		2			—					6		—							(2)		—			—		6		—
Other	Other	160		86			36		—				(195)		1		(4)			84		58						Other		64			(40)					96		—							(4)		1			(4)		113		(19)
Total trading assets – debt and equity instruments	Total trading assets – debt and equity instruments	2,279		(972)		(c)	2,395		(1,356)				(540)		1,978		(910)			2,874		(422)		(c)				Total trading assets – debt and equity instruments		2,909			(7)			(c)		1,238		(513)							(189)		310			(435)		3,313		17		(c)
Net derivative receivables:(b)	Net derivative receivables:(b)																											Net derivative receivables:(b)
Interest rate	Interest rate	(16)		(181)			285		(337)				218		865		(279)			555		25						Interest rate		701			(697)					95		(92)							27		(1,079)			(77)		(1,122)		(582)
Credit	Credit	74		387			14		(8)				(120)		—		(4)			343		367						Credit		13			474					3		(4)							202		26			(25)		689		497
Foreign exchange	Foreign exchange	(419)		755			178		(86)				75		17		(13)			507		716						Foreign exchange		489			52					79		(108)							(201)		119			(41)		389		29
Equity	Equity	(3,626)		3,472			932		(1,449)				688		(692)		349			(326)		3,106						Equity		(384)			23					613		(1,362)							(726)		460			(505)		(1,881)		95
Commodity	Commodity	(907)		920			82		(257)				297		3		61			199		878						Commodity		(146)			(42)					39		(118)							(111)		(11)			36		(353)		(206)
Total net derivative receivables	Total net derivative receivables	(4,894)		5,353		(c)	1,491		(2,137)				1,158		193		114			1,278		5,092		(c)				Total net derivative receivables		673			(190)			(c)		829		(1,684)							(809)		(485)			(612)		(2,278)		(167)		(c)
Available-for-sale securities:	Available-for-sale securities:																											Available-for-sale securities:
Mortgage-backed securities		—		—			—		—				—		—		—			—		—
Corporate debt securities	Corporate debt securities	161		2			17		—				—		—		—			180		2						Corporate debt securities		239			28					—		—							—		—			—		267		28
Total available-for-sale securities	Total available-for-sale securities	161		2		(d)	17		—				—		—		—			180		2		(d)				Total available-for-sale securities		239			28			(d)		—		—							—		—			—		267		28		(d)
Loans	Loans	1,933		(37)		(c)	431		(185)				(633)		829		(764)			1,574		79		(c)				Loans		1,418			23			(c)		2,285		(73)							(585)		917			(177)		3,808		24		(c)
Mortgage servicing rights	Mortgage servicing rights	5,494		2,117		(e)	1,981		(750)				(702)		—		—			8,140		2,117		(e)				Mortgage servicing rights		7,973			264			(e)		577		(90)							(495)		—			—		8,229		264		(e)
Other assets	Other assets	306		136		(c)	48		(29)				(81)		2		(6)			376		131		(c)				Other assets		405			21			(c)		17		(2)							(30)		8			(2)		417		21		(c)

		Fair value measurements using significant unobservable inputs																												Fair value measurements using significant unobservable inputs
Nine months ended September 30, 2022 (in millions)		Fair value at Jan 1, 2022		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2022			Change in unrealized (gains)/losses related to financial instruments held at September 30, 2022
							Purchases		Sales		Issuances		Settlements(h)
Six months ended June 30, 2023 (in millions)																									Six months ended June 30, 2023 (in millions)	Fair value at Jan 1, 2023	Total realized/unrealized (gains)/losses															Transfers into level 3	Transfers (out of) level 3			Fair value at June 30, 2023					Change in unrealized (gains)/losses related to financial instruments held at June 30, 2023
																													Purchases			Sales			Issuances		Settlements(h)
Liabilities:(a)	Liabilities:(a)																											Liabilities:(a)
Deposits	Deposits	$	2,317	$	(454)	(c)(f)	$	—	$	—	$	270	$	(87)	$	—	$	(220)		$	1,826	$	(446)	(c)(f)				Deposits		$	2,162		$	(3)		(c)(f)		$	—	$	—			$	267		$	(248)	$	—		$	(125)	$	2,053	$	(31)	(c)(f)
Short-term borrowings	Short-term borrowings	2,481		(409)		(c)(f)	—		—		3,249		(3,737)		15		(15)			1,584		17		(c)(f)				Short-term borrowings		1,401			140			(c)(f)		—		—				2,242			(2,059)		2			(22)		1,704		34		(c)(f)
Trading liabilities – debt and equity instruments	Trading liabilities – debt and equity instruments	30		(13)		(c)	(39)		48		—		—		51		(6)			71		14		(c)				Trading liabilities – debt and equity instruments		84			(13)			(c)		(27)		6				—			(2)		18			(3)		63		—
Accounts payable and other liabilities	Accounts payable and other liabilities	69		(10)		(c)	(28)		43		—		—		1		(6)			69		(9)		(c)				Accounts payable and other liabilities		53			4			(c)		(2)		7				—			—		8			(2)		68		4		(c)
Long-term debt	Long-term debt	24,374		(5,345)		(c)(f)	—		—		10,463		(6,925)		739		(878)			22,428		(5,097)		(c)(f)				Long-term debt		24,092			1,681			(c)(f)		—		—				5,400			(5,525)		204			(427)		25,425		1,674		(c)(f)

~~104~~111


		Fair value measurements using significant unobservable inputs																								Fair value measurements using significant unobservable inputs
Nine months ended September 30, 2021 (in millions)		Fair value at Jan 1, 2021		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2021			Change in unrealized gains/(losses) related to financial instruments held at September 30, 2021
							Purchases(g)		Sales				Settlements(h)
Six months ended June 30, 2022 (in millions)																									Six months ended June 30, 2022 (in millions)	Fair value at Jan 1, 2022		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at June 30, 2022			Change in unrealized gains/(losses) related to financial instruments held at June 30, 2022
																															Purchases(g)		Sales				Settlements(h)
Assets:(a)	Assets:(a)																								Assets:(a)
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	—	$	—		$	—	$	—		Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	1	$	—		$	1	$	—
Trading assets:	Trading assets:																								Trading assets:
Debt instruments:	Debt instruments:																								Debt instruments:
Mortgage-backed securities:	Mortgage-backed securities:																								Mortgage-backed securities:
U.S. GSEs and government agencies	U.S. GSEs and government agencies	449		(22)			20		(62)				(86)		1		(1)			299		(25)			U.S. GSEs and government agencies	265		26			665		(125)				(28)		—		—			803		24
Residential – nonagency	Residential – nonagency	28		1			24		(24)				(4)		—		(1)			24		(2)			Residential – nonagency	28		—			5		—				(12)		—		(7)			14		(1)
Commercial – nonagency	Commercial – nonagency	3		7			12		(1)				(16)		14		—			19		6			Commercial – nonagency	10		—			—		—				—		—		—			10		—
Total mortgage-backed securities	Total mortgage-backed securities	480		(14)			56		(87)				(106)		15		(2)			342		(21)			Total mortgage-backed securities	303		26			670		(125)				(40)		—		(7)			827		23
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	8		—			—		—				(1)		—		—			7		—			Obligations of U.S. states and municipalities	7		—			—		—				—		—		—			7		—
Non-U.S. government debt securities	Non-U.S. government debt securities	182		(10)			330		(284)				(7)		—		(107)			104		(2)			Non-U.S. government debt securities	81		(42)			405		(266)				—		43		(16)			205		(106)
Corporate debt securities	Corporate debt securities	507		(18)			357		(415)				(3)		138		(196)			370		(3)			Corporate debt securities	332		(35)			333		(71)				(37)		98		(46)			574		(44)
Loans	Loans	893		6			785		(434)				(256)		584		(596)			982		—			Loans	708		(37)			419		(262)				(159)		525		(296)			898		(13)
Asset-backed securities	Asset-backed securities	28		8			41		(43)				(1)		2		(7)			28		—			Asset-backed securities	26		—			2		(10)				—		5		(3)			20		—
Total debt instruments	Total debt instruments	2,098		(28)			1,569		(1,263)				(374)		739		(908)			1,833		(26)			Total debt instruments	1,457		(88)			1,829		(734)				(236)		671		(368)			2,531		(140)
Equity securities	Equity securities	476		(38)			258		(114)				—		140		(88)			634		(92)			Equity securities	662		(912)			321		(301)				—		959		(68)			661		(474)
Physical Commodities																									Physical Commodities	—		—			2		—				—		—		—			2		—
Other	Other	49		74			118		—				(86)		3		(100)			58		37			Other	160		67			26		—				(163)		—		(3)			87		70
Total trading assets – debt and equity instruments	Total trading assets – debt and equity instruments	2,623		8		(c)	1,945		(1,377)				(460)		882		(1,096)			2,525		(81)		(c)	Total trading assets – debt and equity instruments	2,279		(933)		(c)	2,178		(1,035)				(399)		1,630		(439)			3,281		(544)		(c)
Net derivative receivables:(b)	Net derivative receivables:(b)																								Net derivative receivables:(b)
Interest rate	Interest rate	258		1,587			92		(146)				(1,874)		68		(98)			(113)		212			Interest rate	(16)		393			225		(229)				256		17		(226)			420		428
Credit	Credit	(224)		140			6		(11)				103		(13)		(7)			(6)		143			Credit	74		331			8		(7)				(161)		(2)		6			249		330
Foreign exchange	Foreign exchange	(434)		(196)			67		(98)				140		6		(42)			(557)		(44)			Foreign exchange	(419)		538			147		(43)				32		18		(28)			245		486
Equity	Equity	(3,862)		(195)			667		(2,246)				1,638		233		(72)			(3,837)		(187)			Equity	(3,626)		2,568			660		(1,025)				303		(558)		444			(1,234)		2,975
Commodity	Commodity	(731)		(505)			140		(382)				600		(3)		9			(872)		(223)			Commodity	(907)		804			68		(206)				268		(1)		—			26		469
Total net derivative receivables	Total net derivative receivables	(4,993)		831		(c)	972		(2,883)				607		291		(210)			(5,385)		(99)		(c)	Total net derivative receivables	(4,894)		4,634		(c)	1,108		(1,510)				698		(526)		196			(294)		4,688		(c)
Available-for-sale securities:	Available-for-sale securities:																								Available-for-sale securities:
Mortgage-backed securities		—		—			—		—				—		—		—			—		—
Corporate debt securities	Corporate debt securities	—		—			95		—				—		—		—			95		—			Corporate debt securities	161		8			17		—				—		—		—			186		8
Total available-for-sale securities	Total available-for-sale securities	—		—			95		—				—		—		—			95		—			Total available-for-sale securities	161		8		(d)	17		—				—		—		—			186		8		(d)
Loans	Loans	2,305		(79)		(c)	516		(326)				(699)		1,027		(673)			2,071		(92)		(c)	Loans	1,933		16		(c)	394		(100)				(531)		616		(308)			2,020		(24)		(c)
Mortgage servicing rights	Mortgage servicing rights	3,276		258		(e)	2,410		(23)				(570)		—		—			5,351		258		(e)	Mortgage servicing rights	5,494		1,613		(e)	1,471		(671)				(468)		—		—			7,439		1,613		(e)
Other assets	Other assets	538		9		(c)	10		(18)				(217)		—		(1)			321		22		(c)	Other assets	306		125		(c)	46		(28)				(37)		2		(6)			408		119		(c)

		Fair value measurements using significant unobservable inputs																								Fair value measurements using significant unobservable inputs
Nine months ended September 30, 2021 (in millions)		Fair value at Jan 1, 2021		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2021			Change in unrealized (gains)/losses related to financial instruments held at September 30, 2021
							Purchases		Sales		Issuances		Settlements(h)
Six months ended June 30, 2022 (in millions)																									Six months ended June 30, 2022 (in millions)	Fair value at Jan 1, 2022		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at June 30, 2022			Change in unrealized (gains)/losses related to financial instruments held at June 30, 2022
																															Purchases		Sales		Issuances		Settlements(h)
Liabilities:(a)	Liabilities:(a)																								Liabilities:(a)
Deposits	Deposits	$	2,913	$	(67)	(c)(f)	$	—	$	—	$	252	$	(360)	$	2	$	(363)		$	2,377	$	(60)	(c)(f)	Deposits	$	2,317	$	(302)	(c)(f)	$	—	$	—	$	246	$	(69)	$	—	$	(160)		$	2,032	$	(298)	(c)(f)
Short-term borrowings	Short-term borrowings	2,420		(1,095)		(c)(f)	—		—		5,479		(4,333)		9		(69)			2,411		(117)		(c)(f)	Short-term borrowings	2,481		(387)		(c)(f)	—		—		2,386		(2,383)		15		(11)			2,101		7		(c)(f)
Trading liabilities – debt and equity instruments	Trading liabilities – debt and equity instruments	51		(6)		(c)	(100)		36		—		—		62		(13)			30		(2)		(c)	Trading liabilities – debt and equity instruments	30		(16)		(c)	(34)		34		—		—		44		(2)			56		15		(c)
Accounts payable and other liabilities	Accounts payable and other liabilities	68		(10)		(c)	—		1		—		—		—		(8)			51		(9)		(c)	Accounts payable and other liabilities	69		(6)		(c)	(28)		43		—		—		1		(6)			73		(6)		(c)
Long-term debt	Long-term debt	23,397		190		(c)(f)	—		—		9,884		(9,250)		29		(736)			23,514		48		(c)(f)	Long-term debt	24,374		(4,308)		(c)(f)	—		—		7,520		(4,521)		442		(430)			23,077		(4,151)		(c)(f)

(a)Level 3 assets at fair value as a percentage of total Firm assets at fair value (including assets measured at fair value on a nonrecurring basis) were 2% at both ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021.~~2022. Level 3 liabilities at fair value as a percentage of total Firm liabilities at fair value (including liabilities measured at fair value on a nonrecurring basis) were 8% ~~and 10%~~ at ~~September~~both June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively.

~~105~~112

(b)All level 3 derivatives are presented on a net basis, irrespective of the underlying counterparty.

(c)Predominantly reported in principal transactions revenue, except for changes in fair value for CCB mortgage loans and lending-related commitments originated with the intent to sell, and mortgage loan purchase commitments, which are reported in mortgage fees and related income.

(d)Realized gains/(losses) on AFS securities are reported in investment securities gains/(losses). Unrealized gains/(losses) are reported in OCI. ~~There were no realized~~Realized and unrealized gains/(losses) recorded ~~in income~~ on level 3 AFS securities were not material both for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and 2021. Unrealized gains/(losses) recorded on AFS securities in OCI were $(6) million and zero for the three months ended September 30, 2022 and 2021, respectively and $2 million and zero for the nine months ended September 30, 2022 and 2021, respectively.2022.

(e)Changes in fair value for MSRs are reported in mortgage fees and related income.

(f)Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue, and were not material for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022. Unrealized (gains)/losses are reported in OCI, and were ~~$(256)~~$23 million and ~~$318~~$(344) million for the three months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively and ~~$(829)~~$(277) million and ~~$300~~$(574) million for the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.

(g)Loan originations are included in purchases.

(h)Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications, deconsolidations associated with beneficial interests in VIEs and other items.

Level 3 analysis

Consolidated balance sheets changes

The following describes significant changes to level 3 assets since December 31, ~~2021,~~2022, for those items measured at fair value on a recurring basis. Refer to Assets and liabilities measured at fair value on a nonrecurring basis on page ~~108~~115 for further information on changes impacting items measured at fair value on a nonrecurring basis.

Three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023

Level 3 assets were ~~$24.3~~$26.8 billion at ~~September~~June 30, ~~2022,~~ 2023, reflecting an increase of ~~$2.0~~$3.0 billion from ~~June 30, 2022,~~March 31, 2023, and an increase of ~~$6.8~~$3.2 billion from December 31, ~~2021.~~2022.

The increase for the three and six months ended ~~September~~June 30, ~~2022 was driven by a $2.2 billion increase in gross derivative receivables due to gains and net transfers partially offset by settlements.~~

~~The increase for the nine months ended September 30, 2022~~2023 was predominantly driven by:

•$~~3.8~~2.3 billion ~~increase~~and $2.4 billion, respectively, in ~~gross derivative receivables~~non-trading loans primarily due to ~~gains and purchases partially offset by settlements.~~

•~~$2.6~~$1.9 billion ~~increase~~of loans in ~~MSRs.~~CIB associated with the First Republic acquisition.

~~Refer to Note 14 for information on MSRs.~~

Refer to the sections below for additional information.

Transfers between levels for instruments carried at fair value on a recurring basis

For the three months ended ~~September~~June 30, ~~2022,~~2023, significant transfers from level 2 into level 3 included the following:

•$~~1.1~~1.2 billion of gross interest rate derivative payables as a result of transition to term SOFR for certain interest rate options.

•$760 million of non-trading loans driven by a decrease in observability.

For the three months ended June 30, 2023, there were no significant transfers from level 3 into level 2.

For the six months ended June 30, 2023, significant transfers from level 2 into level 3 included the following:

•$1.6 billion of gross interest rate derivative payables as a result of transition to term SOFR for certain interest rate options.

•$901 million of gross equity derivative receivables as a result of a decrease in observability and an increase in the significance of unobservable inputs.

•$917 million of non-trading loans driven by a decrease in observability.

For the six months ended June 30, 2023, significant transfers from level 3 into level 2 included the following:

•$1.3 billion and $827 million of gross equity derivative receivables and gross equity derivative payables, respectively, as a result of an increase in observability and a decrease in the significance of unobservable inputs.

For the three months ended ~~September~~June 30, 2022, there were no significant transfers from level 2 into level 3.

For the three months ended June 30, 2022, significant transfers from level 3 into level 2 included the following:

•$~~524~~930 million of gross ~~equity~~interest rate derivative receivables as a result of an increase in observability and a decrease in the significance of unobservable inputs.

For the ~~nine~~six months ended ~~September~~June 30, 2022, significant transfers from level 2 into level 3 included the following:

•$~~2.0~~1.6 billion of total debt and equity instruments, ~~predominantly~~largely due to equity securities of ~~$977~~$959 million driven by a decrease in observability predominantly as a result of restricted access to certain ~~markets and trading loans of $777 million driven by a decrease in observability.~~markets.

•$~~1.5~~1.3 billion ~~and $639 million~~ of gross ~~interest rate~~equity derivative ~~receivables and gross interest rate derivative~~ payables ~~respectively,~~ as a result of a decrease in observability and an increase in the significance of unobservable inputs.

•$963 million and $1.8 billion of gross equity derivative receivables and gross equity derivative payables, respectively, as a result of a decrease in observability and an increase in the significance of unobservable inputs.

•~~$829 million of non-trading loans driven by a decrease in observability.~~

•~~$739 million of long-term debt driven by a decrease in observability and an increase in the significance of unobservable inputs for certain structured notes.~~

For the ~~nine~~six months ended ~~September~~June 30, 2022, significant transfers from level 3 into level 2 included the following:

•$~~1.0 billion and $758~~965 million of gross interest rate derivative receivables ~~and gross interest rate derivative payables, respectively,~~ as a result of an increase in observability and a decrease in the significance of unobservable inputs.

•$~~1.4 billion~~920 million and ~~$1.8~~$1.4 billion of gross equity derivative receivables and gross equity derivative payables, respectively, as a result of an increase in observability and a decrease in the significance of unobservable inputs.

•~~$764 million of non-trading loans driven by an increase in observability.~~

•~~$878 million of long-term debt driven by an increase in observability and a decrease in the significance of unobservable inputs for certain structured notes.~~

~~For the three months ended September 30, 2021, there were no significant transfers from level 2 into level 3.~~

~~For the nine months ended September 30, 2021, significant transfers from level 2 into level 3 included the following:~~

•~~$882 million of total debt and equity instruments, largely trading loans, driven by a decrease in observability.~~

~~106~~

•$937 million of gross equity derivative receivables and $704 million of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.

•~~$1.0 billion of non-trading loans driven by a decrease in observability.~~

~~For the three months ended September 30, 2021, there were no significant transfers from level 3 into level 2.~~

~~For the nine months ended September 30, 2021, significant transfers from level 3 into level 2 included the following:~~

•~~$1.1 billion of total debt and equity instruments, largely trading loans, driven by an increase in observability.~~

•$1.7 billion of gross equity derivative receivables and $1.6 billion of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.

•~~$673 million of non-trading loans, driven by an increase in observability.~~

•~~$736 million of long-term debt driven, by an increase in observability and a decrease in the significance of unobservable inputs for certain structured notes.~~

All transfers are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur.

113

Gains and losses

The following describes significant components of total realized/unrealized gains/(losses) for instruments measured at fair value on a recurring basis for the periods indicated. These amounts exclude any effects of the Firm’s risk management activities where the financial instruments are classified as level 1 and 2 of the fair value hierarchy. Refer to Changes in level 3 recurring fair value measurements rollforward tables on pages ~~101-106~~108-113 for further information on these instruments.

Three months ended ~~September~~June 30, 2023

•$752 million of net losses on assets, driven by losses in net derivative receivables due to market movements.

•$328 million of net losses on liabilities, driven by losses in long-term debt due to market movements.

Three months ended June 30, 2022

•$~~1.1~~3.4 billion of net gains on assets, largely driven by gains in net equity derivative receivables due to market movements and ~~gains in~~ MSRs reflecting lower prepayment speeds on higher rates.

•$~~1.2~~2.8 billion of net gains on liabilities, predominantly driven by gains in long-term debt due to market movements.

~~Three~~Six months ended ~~September~~June 30, ~~2021~~2023

•$~~1.3 billion~~139 million of net gains on assets, driven by gains in MSR reflecting lower prepayment speeds on higher rates.

•$1.8 billion of net ~~interest rate derivative receivables and net equity derivative receivables~~losses on liabilities, predominantly driven by losses in long-term debt due to market movements.

•~~$928 million of net gains on liabilities, largely driven by gains in short-term borrowings due to market movements.~~

~~Nine~~Six months ended ~~September~~June 30, 2022

•$~~6.6~~5.5 billion of net gains on assets, predominantly driven by gains in net equity derivative receivables due to market movements and ~~gains in~~ MSRs reflecting lower prepayment speeds on higher rates.

•$~~6.2~~5.0 billion of net gains on liabilities, predominantly driven by gains in long-term debt due to market movements.

~~Nine months ended September 30, 2021~~

•~~$1.0 billion~~ ~~of net gains on assets, driven by gains in net interest rate derivative receivables due to market movements, partially offset by losses in net commodity derivative receivables due to market movements.~~

•~~$988 million of net gains on liabilities, driven by gains in short-term borrowings due to market movements.~~

Refer to Note 1415 for information on MSRs.

Credit and funding adjustments — derivatives

The following table provides the impact of credit and funding adjustments on principal transactions revenue in the respective periods, excluding the effect of any associated hedging activities. The FVA presented below includes the impact of the Firm’s own credit quality on the inception value of liabilities as well as the impact of changes in the Firm’s own credit quality over time.


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Credit and funding adjustments:	Credit and funding adjustments:									Credit and funding adjustments:
Derivatives CVA	Derivatives CVA	$	(6)	$	60	$	(171)	$	343	Derivatives CVA	$	66	$	147	$	121	$	(165)
Derivatives FVA	Derivatives FVA	5		38		(46)		99		Derivatives FVA	63		7		55		(51)

Refer to Note 2 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further information about both credit and funding

adjustments, as well as information about valuation adjustments on fair value option elected liabilities.

~~107~~114

Assets and liabilities measured at fair value on a nonrecurring basis

The following tables present the assets and liabilities held as of ~~September~~June 30, ~~2022~~2023 and ~~2021~~2022, for which nonrecurring fair value adjustments were recorded during the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021~~2022, by major product category and fair value hierarchy.


		Fair value hierarchy							Total fair value			Fair value hierarchy							Total fair value
September 30, 2022 (in millions)		Level 1		Level 2		Level 3
June 30, 2023 (in millions)											June 30, 2023 (in millions)	Level 1		Level 2		Level 3			Total fair value
Loans	Loans	$	—	$	1,142	$	927	(b)	$	2,069	Loans	$	—	$	803	$	840	(b)
Other assets(a)	Other assets(a)	—		37		1,119			1,156		Other assets(a)	—		7		286			293
Total assets measured at fair value on a nonrecurring basis	Total assets measured at fair value on a nonrecurring basis	$	—	$	1,179	$	2,046		$	3,225	Total assets measured at fair value on a nonrecurring basis	$	—	$	810	$	1,126		$	1,936
Accounts payable and other liabilities	Accounts payable and other liabilities	—		—		112			112		Accounts payable and other liabilities	—		—		—			—
Total liabilities measured at fair value on a nonrecurring basis	Total liabilities measured at fair value on a nonrecurring basis	$	—	$	—	$	112		$	112	Total liabilities measured at fair value on a nonrecurring basis	$	—	$	—	$	—		$	—


		Fair value hierarchy						Total fair value			Fair value hierarchy						Total fair value
September 30, 2021 (in millions)		Level 1		Level 2		Level 3
June 30, 2022 (in millions)										June 30, 2022 (in millions)	Level 1		Level 2		Level 3		Total fair value
Loans	Loans	$	—	$	1,175	$	314	$	1,489	Loans	$	—	$	1,516	$	665
Other assets	Other assets	—		7		1,202		1,209		Other assets	—		22		1,083		1,105
Total assets measured at fair value on a nonrecurring basis	Total assets measured at fair value on a nonrecurring basis	$	—	$	1,182	$	1,516	$	2,698	Total assets measured at fair value on a nonrecurring basis	$	—	$	1,538	$	1,748	$	3,286
Accounts payable and other liabilities	Accounts payable and other liabilities	—		—		2		2		Accounts payable and other liabilities	—		—		293		293
Total liabilities measured at fair value on a nonrecurring basis	Total liabilities measured at fair value on a nonrecurring basis	$	—	$	—	$	2	$	2	Total liabilities measured at fair value on a nonrecurring basis	$	—	$	—	$	293	$	293

(a)Primarily includes equity securities without readily determinable fair values that were adjusted based on observable price changes in orderly transactions from an identical or similar investment of the same issuer (measurement alternative). Of the ~~$1.1 billion~~$286 million in level 3 assets measured at fair value on a nonrecurring basis as of ~~September~~June 30, ~~2022, $1.0 billion~~2023, $220 million related to equity securities adjusted based on the measurement alternative. These equity securities are classified as level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.

(b)Of the ~~$927~~$840 million in level 3 assets measured at fair value on a nonrecurring basis as of ~~September~~June 30, ~~2022, $65~~2023, $23 million related to residential real estate loans carried at the net realizable value of the underlying collateral (e.g., collateral-dependent loans). These amounts are classified as level 3 as they are valued using information from broker’s price opinions, appraisals and automated valuation models and discounted based upon the Firm’s experience with actual liquidation values. These discounts ranged from 9%3% to 56% with a weighted average of ~~23%~~25%.

Nonrecurring fair value changes

The following table presents the total change in value of assets and liabilities for which fair value adjustments have been recognized for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021~~2022, related to assets and liabilities held at those dates.

Three months ended September 30, Nine months ended September 30,
(in millions) 2022 2021 2022 2021
Loans $ (28) $ (10)

$ (77)

$ (40)
Other assets(a)
(76) 84

(122) 177
Accounts payable and other liabilities 52 —

(108) 6
Total nonrecurring fair value gains/(losses) $ (52) $ 74 $ (307) $ 143


	Three months ended June 30,				Six months ended June 30,
(in millions)	2023		2022		2023		2022
Loans	$	(96)	$	(80)	$	(128)	$	(91)
Other assets(a)	(36)		(389)		(99)		(45)
Accounts payable and other liabilities	—		(269)		—		(288)
Total nonrecurring fair value gains/(losses)	$	(132)	$	(738)	$	(227)	$	(424)

(a)Included ~~$(76)~~$(32) million and ~~$90~~$(387) million for the three months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, and ~~$(105)~~$(93) million and ~~$197~~$(29) million for the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, of net gains/(losses) as a result of the measurement alternative.

Refer to Note 1112 for further information about the measurement of collateral-dependent loans.

~~108~~115

Equity securities without readily determinable fair values

The Firm measures certain equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer (i.e., measurement alternative), with such changes recognized in other income.

In its determination of the new carrying values upon observable price changes, the Firm may adjust the prices if deemed necessary to arrive at the Firm’s estimated fair values. Such adjustments may include adjustments to reflect the different rights and obligations of similar securities, and other adjustments that are consistent with the Firm’s valuation techniques for private equity direct investments.

The following table presents the carrying value of equity securities without readily determinable fair values held as of ~~September~~June 30, ~~2022~~2023 and ~~2021~~2022, that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable.


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
As of or for the period ended, (in millions)	As of or for the period ended, (in millions)	2022		2021		2022		2021		As of or for the period ended, (in millions)	2023		2022		2023		2022
Other assets	Other assets									Other assets
Carrying value(a)	Carrying value(a)	$	4,229	$	3,207	$	4,229	$	3,207	Carrying value(a)	$	4,673	$	4,196	$	4,673	$	4,196
Upward carrying value changes(b)	Upward carrying value changes(b)	40		100		486		216		Upward carrying value changes(b)	5		76		40		445
Downward carrying value changes/impairment(c)	Downward carrying value changes/impairment(c)	(116)		(10)		(591)		(18)		Downward carrying value changes/impairment(c)	(37)		(463)		(133)		(474)

(a)The carrying value as of December 31, ~~2021~~2022 was ~~$3.6~~$4.1 billion. The period-end carrying values reflect cumulative purchases and sales in addition to upward and downward carrying value changes.

(b)The cumulative upward carrying value changes between January 1, 2018 and ~~September~~June 30, ~~2022~~2023 were $1.5 billion.

(c)The cumulative downward carrying value changes/impairment between January 1, 2018 and ~~September~~June 30, ~~2022~~2023 were ~~$(781) million.~~$(1.0) billion.

Included in other assets above is the Firm’s interest in approximately 4037 million Visa Class B common shares ~~recorded at a nominal carrying value.~~(“Visa B shares”). These shares are subject to certain transfer restrictions ~~currently~~ and ~~will be~~are convertible into Visa Class A common shares (“Visa A shares”) at a specified conversion rate upon final resolution of certain litigation matters involving Visa. ~~The~~On June 29, 2023, Visa filed a Current Report on Form 8-K with the SEC indicating that the conversion rate of Visa ~~Class~~ B ~~common~~ shares ~~into~~to Visa ~~Class~~ A ~~common~~ shares ~~is 1.6059 at September 30, 2022, and~~decreased from 1.5991 to 1.5902 effective June 28, 2023. The conversion rate may be further adjusted by Visa depending on developments related to the litigation matters. The outcome of those litigation matters, and the effect that the resolution of those matters may have on the conversion rate, is unknown. Accordingly, as of June 30, 2023, there is significant uncertainty regarding when the transfer restrictions on Visa B shares may be terminated and what the final conversion rate for the Visa B shares will be. As a result of these considerations, as well as differences in voting rights, Visa B shares are not considered to be similar to Visa A shares, and they continue to be held at their nominal carrying value.

In connection with prior sales of Visa B shares, the Firm has entered into derivative instruments with the purchasers of the shares under which the Firm retains the risk associated with changes in the conversion rate. Under the terms of the derivative instruments, the Firm will (a) make or receive payments based on subsequent changes in the conversion rate and (b) make periodic interest payments to the purchasers of the Visa B shares. The payments under the derivative instruments will continue as long as the Visa B shares remain subject to transfer restrictions. The derivative instruments are accounted for at fair value using a discounted cash flow methodology based upon the Firm’s estimate of the timing and magnitude of final resolution of the litigation matters. The derivative instruments are recorded in trading liabilities, and changes in fair value are recognized in other income. As of June 30, 2023, the Firm held derivative instruments associated with 23 million Visa B shares that the Firm had previously sold, which are all subject to similar terms and conditions.

~~109~~116

Additional disclosures about the fair value of financial instruments that are not carried on the Consolidated balance sheets at fair value

The following table presents, by fair value hierarchy classification, the carrying values and estimated fair values at ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and their classification within the fair value hierarchy.


		September 30, 2022										December 31, 2021											June 30, 2023										December 31, 2022
				Estimated fair value hierarchy										Estimated fair value hierarchy											Estimated fair value hierarchy										Estimated fair value hierarchy
(in billions)	(in billions)	Carrying value		Level 1		Level 2		Level 3		Total estimated fair value		Carrying value		Level 1		Level 2		Level 3		Total estimated fair value		(in billions)	Carrying value		Level 1		Level 2		Level 3		Total estimated fair value		Carrying value		Level 1		Level 2		Level 3		Total estimated fair value
Financial assets	Financial assets																					Financial assets
Cash and due from banks	Cash and due from banks	$	24.7	$	24.7	$	—	$	—	$	24.7	$	26.4	$	26.4	$	—	$	—	$	26.4	Cash and due from banks	$	26.1	$	26.1	$	—	$	—	$	26.1	$	27.7	$	27.7	$	—	$	—	$	27.7
Deposits with banks	Deposits with banks	619.5		619.1		0.4		—		619.5		714.4		714.4		—		—		714.4		Deposits with banks	469.1		469.0		0.1		—		469.1		539.5		539.3		0.2		—		539.5
Accrued interest and accounts receivable	Accrued interest and accounts receivable	143.5		—		143.3		0.2		143.5		102.1		—		102.0		0.1		102.1		Accrued interest and accounts receivable	111.1		—		111.1		0.1		111.2		124.7		—		124.6		0.1		124.7
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	2.6		—		2.6		—		2.6		9.0		—		9.0		—		9.0		Federal funds sold and securities purchased under resale agreements	3.0		—		3.0		—		3.0		3.7		—		3.7		—		3.7
Securities borrowed	Securities borrowed	125.9		—		125.9		—		125.9		124.6		—		124.6		—		124.6		Securities borrowed	107.7		—		107.7		—		107.7		115.3		—		115.3		—		115.3
Investment securities, held-to-maturity	Investment securities, held-to-maturity	430.1		199.1		190.7		—		389.8		363.7		183.3		179.3		—		362.6		Investment securities, held-to-maturity	408.9		185.8		189.5		—		375.3		425.3		189.1		199.5		—		388.6
Loans, net of allowance for loan losses(a)	Loans, net of allowance for loan losses(a)	1,052.9		—		190.0		834.9		1,024.9		1,002.5		—		202.1		821.1		1,023.2		Loans, net of allowance for loan losses(a)	1,239.3		—		279.8		936.1		1,215.9		1,073.9		—		194.0		853.9		1,047.9
Other	Other	106.4		—		104.7		1.8		106.5		98.7		—		97.4		1.4		98.8		Other	69.2		—		66.9		2.4		69.3		101.2		—		99.6		1.7		101.3
Financial liabilities	Financial liabilities																					Financial liabilities
Deposits	Deposits	$	2,387.7	$	—	$	2,387.9	$	—	$	2,387.9	$	2,451.0	$	—	$	2,451.0	$	—	$	2,451.0	Deposits	$	2,347.4	$	—	$	2,347.5	$	—	$	2,347.5	$	2,311.6	$	—	$	2,311.5	$	—	$	2,311.5
Federal funds purchased and securities loaned or sold under repurchase agreements	Federal funds purchased and securities loaned or sold under repurchase agreements	59.4		—		59.4		—		59.4		67.9		—		67.9		—		67.9		Federal funds purchased and securities loaned or sold under repurchase agreements	49.7		—		49.7		—		49.7		50.6		—		50.6		—		50.6
Short-term borrowings(b)	Short-term borrowings(b)	32.2		—		32.2		—		32.2		33.6		—		33.6		—		33.6		Short-term borrowings(b)	23.1		—		23.1		—		23.1		28.2		—		28.2		—		28.2
Accounts payable and other liabilities	Accounts payable and other liabilities	260.3		—		254.4		5.4		259.8		217.6		—		212.1		4.9		217.0		Accounts payable and other liabilities	248.1		—		238.8		8.8		247.6		257.5		—		251.2		5.6		256.8
Beneficial interests issued by consolidated VIEs	Beneficial interests issued by consolidated VIEs	12.1		—		12.0		—		12.0		10.7		—		10.8		—		10.8		Beneficial interests issued by consolidated VIEs	19.6		—		19.6		—		19.6		12.6		—		12.6		—		12.6
Long-term debt(b)	Long-term debt(b)	221.5		—		210.1		3.0		213.1		226.0		—		229.5		3.1		232.6		Long-term debt(b)	285.4		—		232.0		51.7		283.7		223.6		—		216.5		2.8		219.3

(a)Fair value is typically estimated using a discounted cash flow model that incorporates the characteristics of the underlying loans (including principal, contractual interest rate and contractual fees) and other key inputs, including expected lifetime credit losses, interest rates, prepayment rates, and primary origination or secondary market spreads. For certain loans, the fair value is measured based on the value of the underlying collateral. Carrying value of the loan takes into account the loan’s allowance for loan losses, which represents the loan’s expected credit losses over its remaining expected life. The difference between the estimated fair value and carrying value of a loan is generally attributable to changes in market interest rates, including credit spreads, market liquidity premiums and other factors that affect the fair value of a loan but do not affect its carrying value.

(b)Includes FHLB advances in level 2 of Long-term debt and Short-term borrowings and the Purchase Money Note in level 3 of Long-term debt associated with the First Republic acquisition. Refer to Notes 18 and 28 for additional information.

The majority of the Firm’s lending-related commitments are not carried at fair value on a recurring basis on the Consolidated balance sheets. The carrying value and the estimated fair value of these wholesale lending-related commitments were as follows for the periods indicated.


		September 30, 2022										December 31, 2021											June 30, 2023										December 31, 2022
				Estimated fair value hierarchy										Estimated fair value hierarchy											Estimated fair value hierarchy										Estimated fair value hierarchy
(in billions)	(in billions)	Carrying value(a) (b)		Level 1		Level 2		Level 3		Total estimated fair value		Carrying value(a) (b)		Level 1		Level 2		Level 3		Total estimated fair value		(in billions)	Carrying value(a) (b)(c)		Level 1		Level 2		Level 3		Total estimated fair value		Carrying value(a) (b)		Level 1		Level 2		Level 3		Total estimated fair value
Wholesale lending-related commitments	Wholesale lending-related commitments	$	2.5	$	—	$	—	$	3.4	$	3.4	$	2.1	$	—	$	—	$	2.9	$	2.9	Wholesale lending-related commitments	$	3.7	$	—	$	—	$	4.9	$	4.9	$	2.3	$	—	$	—	$	3.2	$	3.2

(a)Excludes the current carrying values of the guarantee liability and the offsetting asset, each of which is recognized at fair value at the inception of the guarantees.

(b)Includes the wholesale allowance for lending-related commitments.

(c)As of June 30, 2023, includes fair value adjustments associated with the First Republic acquisition for other unfunded commitments to extend credit totaling $1.6 billion. Refer to Notes 24 and 28 for additional information.

The Firm does not estimate the fair value of consumer off-balance sheet lending-related commitments. In many cases, the Firm can reduce or cancel these commitments by providing the borrower notice or, in some cases as permitted by law, without notice. Refer to page ~~171~~169 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further discussion of the valuation of lending-related commitments.

~~110~~117

Note 3 – Fair value option

The fair value option provides an option to elect fair value for selected financial assets, financial liabilities, unrecognized firm commitments, and written loan commitments.

The Firm has elected to measure certain instruments at fair value for several reasons including to mitigate income statement volatility caused by the differences between the measurement basis of elected instruments (e.g., certain instruments that otherwise would be accounted for on an accrual basis) and the associated risk management arrangements that are accounted for on a fair value basis, as well as to better reflect those instruments that are managed on a fair value basis.

The Firm’s election of fair value includes the following instruments:

•Loans purchased or originated as part of securitization warehousing activity, subject to bifurcation accounting, or managed on a fair value basis, including lending-related commitments

•Certain securities financing agreements

•Owned beneficial interests in securitized financial assets that contain embedded credit derivatives, which would otherwise be required to be separately accounted for as a derivative instrument

•Structured notes and other hybrid instruments, which are predominantly financial instruments that contain embedded derivatives, that are issued or transacted as part of client-driven activities

•Certain long-term beneficial interests issued by CIB’s consolidated securitization trusts where the underlying assets are carried at fair value

Changes in fair value under the fair value option election

The following table presents the changes in fair value included in the Consolidated statements of income for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, for items for which the fair value option was elected. The profit and loss information presented below only includes the financial instruments that were elected to be measured at fair value; related risk management instruments, which are required to be measured at fair value, are not included in the table.


		Three months ended September 30,																	Three months ended June 30,
		2022							2021										2023									2022
(in millions)	(in millions)	Principal transactions		All other income			Total changes in fair value recorded (e)		Principal transactions		All other income			Total changes in fair value recorded (e)		(in millions)	Principal transactions				All other income			Total changes in fair value recorded (e)			Principal transactions			All other income			Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	$	(185)	$	—		$	(185)	$	(19)	$	—		$	(19)			Federal funds sold and securities purchased under resale agreements	$	18		$	—		$	18		$	(145)		$	—		$	(145)
Securities borrowed	Securities borrowed	(209)		—			(209)		(22)		—			(22)				Securities borrowed	(60)			—			(60)			(101)			—			(101)
Trading assets:	Trading assets:																	Trading assets:
Debt and equity instruments, excluding loans	Debt and equity instruments, excluding loans	(1,782)		—			(1,782)		(2,255)		—			(2,255)				Debt and equity instruments, excluding loans	1,160			—			1,160			(1,255)			—			(1,255)
Loans reported as trading assets:	Loans reported as trading assets:																	Loans reported as trading assets:
Changes in instrument-specific credit risk	Changes in instrument-specific credit risk	34		—			34		66		—			66				Changes in instrument-specific credit risk	100			—			100			(136)		(f)	—			(136)
Other changes in fair value	Other changes in fair value	(36)		—			(36)		1		—			1				Other changes in fair value	2			2		(c)	4			(11)			—			(11)
Loans:	Loans:																	Loans:
Changes in instrument-specific credit risk	Changes in instrument-specific credit risk	(133)		3		(c)	(130)		119		(7)		(c)	112				Changes in instrument-specific credit risk	6			(5)		(c)	1			(83)			11		(c)	(72)
Other changes in fair value	Other changes in fair value	(340)		(107)		(c)	(447)		25		609		(c)	634				Other changes in fair value	(76)			(6)		(c)	(82)			(501)			(260)		(c)	(761)
Other assets	Other assets	12		(7)		(d)	5		(22)		—			(22)				Other assets	(16)			(1)		(d)	(17)			(2)			4		(d)	2
Deposits(a)	Deposits(a)	364		—			364		38		—			38				Deposits(a)	(395)			—			(395)			382			—			382
Federal funds purchased and securities loaned or sold under repurchase agreements	Federal funds purchased and securities loaned or sold under repurchase agreements	104		—			104		11		—			11				Federal funds purchased and securities loaned or sold under repurchase agreements	(8)			—			(8)			124			—			124
Short-term borrowings(a)	Short-term borrowings(a)	85		—			85		388		—			388				Short-term borrowings(a)	(110)			—			(110)			471			—			471
Trading liabilities	Trading liabilities	9		—			9		(1)		—			(1)				Trading liabilities	(15)			—			(15)			54			—			54
Beneficial interests issued by consolidated VIEs	Beneficial interests issued by consolidated VIEs	—		—			—		—		—			—				Beneficial interests issued by consolidated VIEs	—			—			—			—			—			—
Other liabilities	Other liabilities	(2)		—			(2)		(1)		—			(1)				Other liabilities	(1)			—			(1)			(7)			—			(7)
Long-term debt(a)(b)	Long-term debt(a)(b)	1,828		125		(c)(d)	1,953		643		11		(c)(d)	654				Long-term debt(a)(b)	(663)			(2)		(c)(d)	(665)			5,405			14		(c)(d)	5,419

~~111~~118


		Nine months ended September 30,															Six months ended June 30,
		2022							2021								2023							2022
(in millions)	(in millions)	Principal transactions		All other income			Total changes in fair value recorded (e)		Principal transactions		All other income			Total changes in fair value recorded (e)		(in millions)	Principal transactions		All other income			Total changes in fair value recorded (e)		Principal transactions			All other income			Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	$	(560)	$	—		$	(560)	$	(33)	$	—		$	(33)	Federal funds sold and securities purchased under resale agreements	$	220	$	—		$	220	$	(375)		$	—		$	(375)
Securities borrowed	Securities borrowed	(508)		—			(508)		(119)		—			(119)		Securities borrowed	28		—			28		(299)			—			(299)
Trading assets:	Trading assets:															Trading assets:
Debt and equity instruments, excluding loans	Debt and equity instruments, excluding loans	(2,693)		—			(2,693)		(1,188)		(1)		(c)	(1,189)		Debt and equity instruments, excluding loans	2,755		—			2,755		(911)			—			(911)
Loans reported as trading assets:	Loans reported as trading assets:						—							—		Loans reported as trading assets:
Changes in instrument-specific credit risk	Changes in instrument-specific credit risk	(109)		—			(109)		342		—			342		Changes in instrument-specific credit risk	231		—			231		(142)		(f)	—			(142)
Other changes in fair value	Other changes in fair value	(58)		—			(58)		(7)		—			(7)		Other changes in fair value	5		2		(c)	7		(22)			—			(22)
Loans:	Loans:															Loans:
Changes in instrument-specific credit risk	Changes in instrument-specific credit risk	(210)		26		(c)	(184)		540		(9)		(c)	531		Changes in instrument-specific credit risk	71		(4)		(c)	67		(77)			23		(c)	(54)
Other changes in fair value	Other changes in fair value	(1,560)		(881)		(c)	(2,441)		(82)		1,733		(c)	1,651		Other changes in fair value	119		104		(c)	223		(1,220)			(774)		(c)	(1,994)
Other assets	Other assets	21		(6)		(d)	15		6		(23)		(d)	(17)		Other assets	14		(1)		(d)	13		9			1		(d)	10
Deposits(a)	Deposits(a)	1,148		—			1,148		(53)		—			(53)		Deposits(a)	(868)		—			(868)		784			—			784
Federal funds purchased and securities loaned or sold under repurchase agreements	Federal funds purchased and securities loaned or sold under repurchase agreements	310		—			310		42		—			42		Federal funds purchased and securities loaned or sold under repurchase agreements	(69)		—			(69)		206			—			206
Short-term borrowings(a)	Short-term borrowings(a)	858		—			858		(223)		—			(223)		Short-term borrowings(a)	(269)		—			(269)		773			—			773
Trading liabilities	Trading liabilities	(3)		—			(3)		(2)		—			(2)		Trading liabilities	(30)		—			(30)		(12)			—			(12)
Beneficial interests issued by consolidated VIEs	Beneficial interests issued by consolidated VIEs	(1)		—			(1)		—		—			—		Beneficial interests issued by consolidated VIEs	—		—			—		(1)			—			(1)
Other liabilities	Other liabilities	(6)		—			(6)		1		—			1		Other liabilities	(1)		—			(1)		(4)			—			(4)
Long-term debt(a)(b)	Long-term debt(a)(b)	11,193		158		(c)(d)	11,351		(262)		6		(c)(d)	(256)		Long-term debt(a)(b)	(3,461)		(28)		(c)(d)	(3,489)		9,365			33		(c)(d)	9,398

(a)Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected are recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue were ~~zero and $(6) million~~not material both for the three and six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021, respectively, and $(9) million and $(8) million for the nine months ended September 30, 2022 and 2021, respectively.~~2022.

(b)Long-term debt measured at fair value predominantly relates to structured notes. Although the risk associated with the structured notes is actively managed, the gains/(losses) reported in this table do not include the income statement impact of the risk management instruments used to manage such risk.

(c)Reported in mortgage fees and related income.

(d)Reported in other income.

(e)Changes in fair value exclude contractual interest, which is included in interest income and interest expense for all instruments other than certain hybrid financial instruments in CIB. Refer to Note 67 for further information regarding interest income and interest expense.

(f)Prior-period amounts have been revised to conform with the current presentation.

~~112~~119

Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding

The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected.


		September 30, 2022							December 31, 2021								June 30, 2023							December 31, 2022
(in millions)	(in millions)	Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding		Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding		(in millions)	Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding		Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding
Loans	Loans															Loans
Nonaccrual loans	Nonaccrual loans															Nonaccrual loans
Loans reported as trading assets	Loans reported as trading assets	$	2,704		$	357	$	(2,347)	$	3,263		$	546	$	(2,717)	Loans reported as trading assets	$	2,737		$	529	$	(2,208)	$	2,517		$	368	$	(2,149)
Loans	Loans	962			814		(148)		918			797		(121)		Loans	911			760		(151)		967			829		(138)
Subtotal	Subtotal	3,666			1,171		(2,495)		4,181			1,343		(2,838)		Subtotal	3,648			1,289		(2,359)		3,484			1,197		(2,287)
90 or more days past due and government guaranteed	90 or more days past due and government guaranteed															90 or more days past due and government guaranteed
Loans(a)	Loans(a)	152			144		(8)		293			281		(12)		Loans(a)	82			76		(6)		124			115		(9)
All other performing loans(b)	All other performing loans(b)															All other performing loans(b)
Loans reported as trading assets	Loans reported as trading assets	7,093			5,718		(1,375)		8,594			7,528		(1,066)		Loans reported as trading assets	9,217			7,560		(1,657)		7,823			6,135		(1,688)
Loans	Loans	42,236			40,529		(1,707)		57,695			57,742		47		Loans	39,995			37,953		(2,042)		42,588			41,135		(1,453)
Subtotal	Subtotal	49,329			46,247		(3,082)		66,289			65,270		(1,019)		Subtotal	49,212			45,513		(3,699)		50,411			47,270		(3,141)
Total loans	Total loans	$	53,147		$	47,562	$	(5,585)	$	70,763		$	66,894	$	(3,869)	Total loans	$	52,942		$	46,878	$	(6,064)	$	54,019		$	48,582	$	(5,437)
Long-term debt	Long-term debt															Long-term debt
Principal-protected debt	Principal-protected debt	$	36,523	(d)	$	27,422	$	(9,101)	$	35,957	(d)	$	33,799	$	(2,158)	Principal-protected debt	$	42,889	(d)	$	34,524	$	(8,365)	$	41,341	(d)	$	31,105	$	(10,236)
Nonprincipal-protected debt(c)	Nonprincipal-protected debt(c)	NA			38,523		NA		NA			41,135		NA		Nonprincipal-protected debt(c)	NA			44,085		NA		NA			41,176		NA
Total long-term debt	Total long-term debt	NA			$	65,945	NA		NA			$	74,934	NA		Total long-term debt	NA			$	78,609	NA		NA			$	72,281	NA
Long-term beneficial interests	Long-term beneficial interests															Long-term beneficial interests
Nonprincipal-protected debt(c)	Nonprincipal-protected debt(c)	NA			$	5	NA		NA			$	12	NA		Nonprincipal-protected debt(c)	NA			$	1	NA		NA			$	5	NA
Total long-term beneficial interests	Total long-term beneficial interests	NA			$	5	NA		NA			$	12	NA		Total long-term beneficial interests	NA			$	1	NA		NA			$	5	NA

(a)These balances are excluded from nonaccrual loans as the loans are insured and/or guaranteed by U.S. government agencies.

(b)There were no performing loans that were ninety days or more past due as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021, respectively.~~2022.

(c)Remaining contractual principal is not applicable to nonprincipal-protected structured notes and long-term beneficial interests. Unlike principal-protected structured notes and long-term beneficial interests, for which the Firm is obligated to return a stated amount of principal at maturity, nonprincipal-protected structured notes and long-term beneficial interests do not obligate the Firm to return a stated amount of principal at maturity, but for structured notes to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal-protected notes.

(d)Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflects the contractual principal payment at maturity or, if applicable, the contractual principal payment at the Firm’s next call date.

At ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, the contractual amount of lending-related commitments for which the fair value option was elected was ~~$8.7~~$10.2 billion and ~~$11.9~~$7.6 billion, respectively, with a corresponding fair value of ~~$28~~$264 million and ~~$10~~$24 million, respectively. Refer to Note 28 of JPMorgan Chase’s ~~2021~~2022 Form 10-K, and Note 2224 of this Form 10-Q for further information regarding off-balance sheet lending-related financial instruments.

~~113~~

120

Structured note products by balance sheet classification and risk component

The following table presents the fair value of structured notes, by balance sheet classification and the primary risk type.


		September 30, 2022									December 31, 2021										June 30, 2023									December 31, 2022
(in millions)	(in millions)	Long-term debt		Short-term borrowings		Deposits			Total		Long-term debt		Short-term borrowings		Deposits			Total		(in millions)	Long-term debt		Short-term borrowings		Deposits			Total		Long-term debt		Short-term borrowings		Deposits			Total
Risk exposure	Risk exposure																			Risk exposure
Interest rate	Interest rate	$	29,043	$	295	$	16,563		$	45,901	$	34,127	$	1	$	4,860		$	38,988	Interest rate	$	34,860	$	225	$	46,527		$	81,612	$	31,973	$	260	$	24,655		$	56,888
Credit	Credit	3,909		246		—			4,155		6,352		858		—			7,210		Credit	4,618		247		—			4,865		4,105		170		—			4,275
Foreign exchange	Foreign exchange	2,616		838		42			3,496		3,386		315		1,066			4,767		Foreign exchange	2,675		997		3			3,675		2,674		788		50			3,512
Equity	Equity	27,941		5,711		3,616			37,268		29,317		6,827		5,125			41,269		Equity	33,590		4,830		3,202			41,622		30,864		4,272		3,545			38,681
Commodity	Commodity	1,257		12		2		(a)	1,271		405		—		3		(a)	408		Commodity	2,017		—		1		(a)	2,018		1,655		16		2		(a)	1,673
Total structured notes	Total structured notes	$	64,766	$	7,102	$	20,223		$	92,091	$	73,587	$	8,001	$	11,054		$	92,642	Total structured notes	$	77,760	$	6,299	$	49,733		$	133,792	$	71,271	$	5,506	$	28,252		$	105,029

(a)Excludes deposits linked to precious metals for which the fair value option has not been elected of ~~$600~~$590 million and ~~$692~~$602 million for the periods ended ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively.

~~114~~

121

Note 4 – Credit risk concentrations

Concentrations of credit risk arise when a number of clients, counterparties or customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions.

JPMorgan Chase regularly monitors various segments of its credit portfolios to assess potential credit risk concentrations and to obtain additional collateral when deemed necessary and permitted under the Firm’s agreements. Senior management is significantly involved in the credit approval and review process, and risk levels are adjusted as needed to reflect the Firm’s risk appetite.

In the Firm’s consumer portfolio, concentrations are managed primarily by product and by U.S. geographic region, with a key focus on trends and concentrations at the portfolio level, where potential credit risk concentrations can be remedied through changes in underwriting policies and portfolio guidelines. Refer to Note 12for additional information on the geographic composition of the Firm’s consumer loan portfolios. In the wholesale portfolio, credit risk concentrations are evaluated primarily by industry and monitored regularly on both an aggregate portfolio level and on an individual client or counterparty basis.

The Firm’s wholesale exposure is managed through loan syndications and participations, loan sales, securitizations, credit derivatives, master netting agreements, collateral and other risk-reduction techniques. Refer to Note 12 for additional information on loans.

The Firm does not believe that its exposure to any particular loan product or industry segment results in a significant concentration of credit risk.

Terms of loan products and collateral coverage are included in the Firm’s assessment when extending credit and establishing its allowance for loan losses.

122

The table below presents both on–balance sheet and off–balance sheet consumer and wholesale credit exposure by the Firm’s three credit portfolio segments as of June 30, 2023 and December 31, 2022. The wholesale industry of risk category is generally based on the client or counterparty’s primary business activity.


	June 30, 2023								December 31, 2022
	Credit exposure(h)(i)		On-balance sheet				Off-balance sheet(j)		Credit exposure(h)		On-balance sheet				Off-balance sheet(j)
(in millions)			Loans		Derivatives						Loans		Derivatives
Consumer, excluding credit card	$	459,050	$	408,204	$	—	$	50,846	$	344,893	$	311,375	$	—	$	33,518
Credit card(a)	1,072,833		191,348		—		881,485		1,006,459		185,175		—		821,284
Total consumer(a)	1,531,883		599,552		—		932,331		1,351,352		496,550		—		854,802
Wholesale(b)
Real Estate	206,912		165,069		331		41,512		170,857		131,681		249		38,927
Individuals and Individual Entities(c)	141,178		122,056		730		18,392		130,815		120,424		434		9,957
Asset Managers	138,143		52,730		14,751		70,662		95,656		40,511		16,397		38,748
Consumer & Retail	125,935		47,410		2,278		76,247		120,555		45,867		1,650		73,038
Industrials	77,206		27,537		1,424		48,245		72,483		26,960		1,770		43,753
Technology, Media & Telecommunications	76,444		21,159		2,601		52,684		72,286		21,622		2,950		47,714
Healthcare	65,547		22,727		1,720		41,100		62,613		22,970		1,683		37,960
Banks & Finance Cos	61,659		34,934		4,679		22,046		51,816		32,172		3,246		16,398
State & Municipal Govt(d)	37,157		20,656		457		16,044		33,847		18,147		585		15,115
Utilities	35,757		7,162		3,089		25,506		36,218		9,107		3,269		23,842
Oil & Gas	33,233		9,607		1,352		22,274		38,668		9,632		5,121		23,915
Automotive	32,947		15,169		602		17,176		33,287		14,735		529		18,023
Chemicals & Plastics	22,195		6,343		510		15,342		20,030		5,771		407		13,852
Insurance	21,874		2,772		8,175		10,927		21,045		2,387		8,081		10,577
Central Govt	16,845		3,670		10,827		2,348		19,095		3,167		12,955		2,973
Metals & Mining	15,631		4,786		311		10,534		15,915		5,398		475		10,042
Transportation	15,447		5,779		606		9,062		15,009		5,005		567		9,437
Securities Firms	9,077		957		3,392		4,728		8,066		556		3,387		4,123
Financial Markets Infrastructure	4,993		184		2,491		2,318		4,962		13		3,050		1,899
All other(e)	135,271		97,438		3,891		33,942		123,307		87,545		4,075		31,687
Subtotal	1,273,451		668,145		64,217		541,089		1,146,530		603,670		70,880		471,980
Loans held-for-sale and loans at fair value	32,372		32,372		—		—		35,427		35,427		—		—
Receivables from customers(f)	42,741		—		—		—		49,257		—		—		—
Total wholesale	1,348,564		700,517		64,217		541,089		1,231,214		639,097		70,880		471,980
Total exposure(g)(h)	$	2,880,447	$	1,300,069	$	64,217	$	1,473,420	$	2,582,566	$	1,135,647	$	70,880	$	1,326,782

(a)Also includes commercial card lending-related commitments primarily in CB and CIB.

(b)The industry rankings presented in the table as of December 31, 2022, are based on the industry rankings of the corresponding exposures as of June 30, 2023, not actual rankings of such exposures at December 31, 2022.

(c)Individuals and Individual Entities predominantly consists of Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB, and includes exposure to personal investment companies and personal and testamentary trusts.

(d)In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) as of June 30, 2023 and December 31, 2022, noted above, the Firm held: $6.8 billion and $6.6 billion, respectively, of trading assets; $24.0 billion and $6.8 billion, respectively, of AFS securities; and $11.6 billion and $19.7 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 10 for further information.

(e)All other includes: SPEs and Private education and civic organizations, representing approximately 94% and 6%, respectively, as of June 30, 2023 and 95% and 5%, respectively, as of December 31, 2022. Refer to Note 14 for more information on exposures to SPEs.

(f)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM that are collateralized by assets maintained in the clients’ brokerage accounts (e.g., cash on deposit, liquid and readily marketable debt or equity securities). Because of this collateralization, no allowance for credit losses is generally held against these receivables. To manage its credit risk the Firm establishes margin requirements and monitors the required margin levels on an ongoing basis, and requires clients to deposit additional cash or other collateral, or to reduce positions, when appropriate. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets.

(g)Excludes cash placed with banks of $485.4 billion and $556.6 billion, as of June 30, 2023 and December 31, 2022, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks.

(h)Credit exposure is net of risk participations and excludes the benefit of credit derivatives used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables.

(i)Included credit exposure associated with the First Republic acquisition consisting of $104.6 billion in the Consumer, excluding credit card portfolio, and $98.2 billion in the Wholesale portfolio predominantly in Asset Managers, Real Estate, and Individuals and Individual Entities.

(j)Represents lending-related financial instruments.

123

Note 5 – Derivative instruments

JPMorgan Chase makes markets in derivatives for clients and also uses derivatives to hedge or manage its own risk exposures. Refer to Note 5 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further discussion of the Firm’s use of and accounting policies regarding derivative instruments.

The Firm’s disclosures are based on the accounting treatment and purpose of these derivatives. A limited number of the Firm’s derivatives are designated in hedge

accounting relationships and are disclosed according to the type of hedge (fair value hedge, cash flow hedge, or net investment hedge). Derivatives not designated in hedge accounting relationships include certain derivatives that are used to manage risks associated with specified assets and liabilities (“specified risk management” positions) as well as derivatives used in the Firm’s market-making businesses or for other purposes.

The following table outlines the Firm’s primary uses of derivatives and the related hedge accounting designation or disclosure category.

Type of Derivative

Use of Derivative

Designation and disclosure

Affected
segment or unit

10-Q page reference

Manage specifically identified risk exposures in qualifying hedge accounting relationships:

•Interest rate

Hedge fixed rate assets and liabilities

Fair value hedge

Corporate

~~121-122~~130-131

•Interest rate

Hedge floating-rate assets and liabilities

Cash flow hedge

Corporate

~~123~~132

•Foreign exchange

Hedge foreign currency-denominated assets and liabilities

Fair value hedge

Corporate

~~121-122~~130-131

•Foreign exchange

Hedge foreign currency-denominated forecasted revenue and expense

Cash flow hedge

Corporate

~~123~~132

•Foreign exchange

Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entities

Net investment hedge

Corporate

~~124~~133

•Commodity

Hedge commodity inventory

Fair value hedge

CIB, AWM

~~121-122~~130-131

Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships:

•Interest rate

Manage the risk associated with mortgage commitments, warehouse loans and MSRs

Specified risk management

CCB

~~125~~134

•Credit

Manage the credit risk associated with wholesale lending exposures

Specified risk management

CIB

~~125~~134

•Interest rate and foreign exchange

Manage the risk associated with certain other specified assets and liabilities

Specified risk management

Corporate

~~125~~134

Market-making derivatives and other activities:

•Various

Market-making and related risk management

Market-making and other

CIB

~~125~~134

•Various

Other derivatives

Market-making and other

CIB, AWM, Corporate

~~125~~134

~~115~~124

Notional amount of derivative contracts

The following table summarizes the notional amount of free-standing derivative contracts outstanding as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021.~~2022.


		Notional amounts(b)					Notional amounts(b)
(in billions)	(in billions)	September 30, 2022		December 31, 2021		(in billions)	June 30, 2023		December 31, 2022
Interest rate contracts	Interest rate contracts					Interest rate contracts
Swaps	Swaps	$	26,999	$	24,075	Swaps	$	29,292	$	24,491
Futures and forwards	Futures and forwards	3,692		2,520		Futures and forwards	3,341		2,636
Written options	Written options	2,905		3,018		Written options	3,329		3,047
Purchased options	Purchased options	2,879		3,188		Purchased options	3,390		2,992
Total interest rate contracts	Total interest rate contracts	36,475		32,801		Total interest rate contracts	39,352		33,166
Credit derivatives(a)	Credit derivatives(a)	1,307		1,053		Credit derivatives(a)	1,477		1,132
Foreign exchange contracts	Foreign exchange contracts					Foreign exchange contracts
Cross-currency swaps	Cross-currency swaps	3,843		4,112		Cross-currency swaps	4,436		4,196
Spot, futures and forwards	Spot, futures and forwards	8,829		7,679		Spot, futures and forwards	8,681		7,017
Written options	Written options	873		741		Written options	867		775
Purchased options	Purchased options	856		727		Purchased options	826		759
Total foreign exchange contracts	Total foreign exchange contracts	14,401		13,259		Total foreign exchange contracts	14,810		12,747
Equity contracts	Equity contracts					Equity contracts
Swaps	Swaps	608		612		Swaps	598		618
Futures and forwards	Futures and forwards	110		139		Futures and forwards	110		110
Written options	Written options	713		654		Written options	755		636
Purchased options	Purchased options	660		598		Purchased options	707		580
Total equity contracts	Total equity contracts	2,091		2,003		Total equity contracts	2,170		1,944
Commodity contracts	Commodity contracts					Commodity contracts
Swaps	Swaps	148		185		Swaps	137		136
Spot, futures and forwards	Spot, futures and forwards	149		188		Spot, futures and forwards	142		136
Written options	Written options	133		135		Written options	133		117
Purchased options	Purchased options	100		111		Purchased options	110		98
Total commodity contracts	Total commodity contracts	530		619		Total commodity contracts	522		487
Total derivative notional amounts	Total derivative notional amounts	$	54,804	$	49,735	Total derivative notional amounts	$	58,331	$	49,476

(a)Refer to the Credit derivatives discussion on page ~~126~~135 for more information on volumes and types of credit derivative contracts.

(b)Represents the sum of gross long and gross short third-party notional derivative contracts.

While the notional amounts disclosed above give an indication of the volume of the Firm’s derivatives activity, the notional amounts significantly exceed, in the Firm’s view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged; it is simply a reference amount used to calculate payments.

~~116~~125

Impact of derivatives on the Consolidated balance sheets

The following table summarizes information on derivative receivables and payables (before and after netting adjustments) that are reflected on the Firm’s Consolidated balance sheets as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, by accounting designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships or not) and contract type.


Free-standing derivative receivables and payables(a)	Free-standing derivative receivables and payables(a)																	Free-standing derivative receivables and payables(a)
		Gross derivative receivables								Gross derivative payables									Gross derivative receivables								Gross derivative payables
September 30, 2022 (in millions)		Not designated as hedges		Designated as hedges		Total derivative receivables		Net derivative receivables(b)		Not designated as hedges		Designated as hedges		Total derivative payables		Net derivative payables(b)
June 30, 2023 (in millions)																		June 30, 2023 (in millions)	Not designated as hedges		Designated as hedges		Total derivative receivables		Net derivative receivables(b)		Not designated as hedges		Designated as hedges		Total derivative payables		Net derivative payables(b)
Trading assets and liabilities	Trading assets and liabilities																	Trading assets and liabilities
Interest rate	Interest rate	$	279,132	$	—	$	279,132	$	25,832	$	266,080	$	—	$	266,080	$	17,399	Interest rate	$	288,312	$	—	$	288,312	$	27,709	$	277,334	$	8	$	277,342	$	15,157
Credit	Credit	13,934		—		13,934		1,871		11,190		—		11,190		734		Credit	13,685		—		13,685		1,245		13,767		—		13,767		566
Foreign exchange	Foreign exchange	353,791		2,042		355,833		36,867		351,385		1,747		353,132		22,830		Foreign exchange	226,793		886		227,679		22,194		222,739		846		223,585		14,177
Equity	Equity	85,801		—		85,801		11,626		79,914		—		79,914		8,139		Equity	61,392		—		61,392		7,324		67,670		—		67,670		9,805
Commodity	Commodity	34,532		4,422		38,954		16,338		27,238		4,584		31,822		7,601		Commodity	16,872		768		17,640		5,745		18,465		820		19,285		6,840
Total fair value of trading assets and liabilities	Total fair value of trading assets and liabilities	$	767,190	$	6,464	$	773,654	$	92,534	$	735,807	$	6,331	$	742,138	$	56,703	Total fair value of trading assets and liabilities	$	607,054	$	1,654	$	608,708	$	64,217	$	599,975	$	1,674	$	601,649	$	46,545

		Gross derivative receivables								Gross derivative payables									Gross derivative receivables								Gross derivative payables
December 31, 2021 (in millions)		Not designated as hedges		Designated as hedges		Total derivative receivables		Net derivative receivables(b)		Not designated as hedges		Designated as hedges		Total derivative payables		Net derivative payables(b)
December 31, 2022 (in millions)																		December 31, 2022 (in millions)	Not designated as hedges		Designated as hedges		Total derivative receivables		Net derivative receivables(b)		Not designated as hedges		Designated as hedges		Total derivative payables		Net derivative payables(b)
Trading assets and liabilities	Trading assets and liabilities																	Trading assets and liabilities
Interest rate	Interest rate	$	270,562	$	23	$	270,585	$	21,974	$	240,731	$	—	$	240,731	$	8,194	Interest rate	$	300,411	$	4	$	300,415	$	28,419	$	290,291	$	—	$	290,291	$	15,970
Credit	Credit	9,839		—		9,839		1,031		10,912		—		10,912		880		Credit	10,329		—		10,329		1,090		9,971		—		9,971		754
Foreign exchange	Foreign exchange	169,186		393		169,579		12,625		174,622		1,124		175,746		14,097		Foreign exchange	239,946		1,633		241,579		23,365		248,911		2,610		251,521		18,856
Equity	Equity	68,631		—		68,631		9,981		79,727		—		79,727		17,233		Equity	61,913		—		61,913		9,139		62,461		—		62,461		8,804
Commodity	Commodity	21,233		5,420		26,653		11,470		20,837		7,091		27,928		9,712		Commodity	23,652		1,705		25,357		8,867		20,758		2,511		23,269		6,757
Total fair value of trading assets and liabilities	Total fair value of trading assets and liabilities	$	539,451	$	5,836	$	545,287	$	57,081	$	526,829	$	8,215	$	535,044	$	50,116	Total fair value of trading assets and liabilities	$	636,251	$	3,342	$	639,593	$	70,880	$	632,392	$	5,121	$	637,513	$	51,141

(a)Balances exclude structured notes for which the fair value option has been elected. Refer to Note 3 for further information.

(b)As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral receivables and payables when a legally enforceable master netting agreement exists.

~~117~~126

Derivatives netting

The following tables present, as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, gross and net derivative receivables and payables by contract and settlement type. Derivative receivables and payables, as well as the related cash collateral from the same counterparty, have been netted on the Consolidated balance sheets where the Firm has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the Consolidated balance sheets, and those derivative receivables and payables are shown separately in the tables below.

In addition to the cash collateral received and transferred that is presented on a net basis with derivative receivables and payables, the Firm receives and transfers additional collateral (financial instruments and cash). These amounts mitigate counterparty credit risk associated with the Firm’s derivative instruments, but are not eligible for net presentation:

•collateral that consists of liquid securities and other cash collateral held at third-party custodians, which are shown separately as “Collateral not nettable on the Consolidated balance sheets” in the tables below, up to the fair value exposure amount. For the purpose of this disclosure, the definition of liquid securities is consistent with the definition of high quality liquid assets as defined in the LCR rule;

•the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables below; and

•collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables below.


		September 30, 2022							December 31, 2021								June 30, 2023							December 31, 2022
(in millions)	(in millions)	Gross derivative receivables		Amounts netted on the Consolidated balance sheets		Net derivative receivables			Gross derivative receivables		Amounts netted on the Consolidated balance sheets		Net derivative receivables			(in millions)	Gross derivative receivables		Amounts netted on the Consolidated balance sheets		Net derivative receivables			Gross derivative receivables		Amounts netted on the Consolidated balance sheets		Net derivative receivables
U.S. GAAP nettable derivative receivables	U.S. GAAP nettable derivative receivables															U.S. GAAP nettable derivative receivables
Interest rate contracts:	Interest rate contracts:															Interest rate contracts:
Over-the-counter (“OTC”)	Over-the-counter (“OTC”)	$	207,083	$	(185,451)	$	21,632		$	251,953	$	(234,283)	$	17,670		Over-the-counter (“OTC”)	$	194,218	$	(168,569)	$	25,649		$	203,922	$	(178,261)	$	25,661
OTC–cleared	OTC–cleared	67,743		(67,282)		461			14,144		(13,839)		305			OTC–cleared	91,665		(91,508)		157			93,800		(93,424)		376
Exchange-traded(a)	Exchange-traded(a)	1,061		(567)		494			498		(489)		9			Exchange-traded(a)	573		(526)		47			559		(311)		248
Total interest rate contracts	Total interest rate contracts	275,887		(253,300)		22,587			266,595		(248,611)		17,984			Total interest rate contracts	286,456		(260,603)		25,853			298,281		(271,996)		26,285
Credit contracts:	Credit contracts:															Credit contracts:
OTC	OTC	11,181		(9,685)		1,496			8,035		(7,177)		858			OTC	8,850		(7,818)		1,032			8,474		(7,535)		939
OTC–cleared	OTC–cleared	2,520		(2,378)		142			1,671		(1,631)		40			OTC–cleared	4,674		(4,622)		52			1,746		(1,704)		42
Total credit contracts	Total credit contracts	13,701		(12,063)		1,638			9,706		(8,808)		898			Total credit contracts	13,524		(12,440)		1,084			10,220		(9,239)		981
Foreign exchange contracts:	Foreign exchange contracts:															Foreign exchange contracts:
OTC	OTC	348,675		(317,060)		31,615			166,185		(156,251)		9,934			OTC	223,998		(204,582)		19,416			237,941		(216,796)		21,145
OTC–cleared	OTC–cleared	1,968		(1,904)		64			789		(703)		86			OTC–cleared	910		(901)		9			1,461		(1,417)		44
Exchange-traded(a)	Exchange-traded(a)	11		(2)		9			6		—		6			Exchange-traded(a)	11		(2)		9			15		(1)		14
Total foreign exchange contracts	Total foreign exchange contracts	350,654		(318,966)		31,688			166,980		(156,954)		10,026			Total foreign exchange contracts	224,919		(205,485)		19,434			239,417		(218,214)		21,203
Equity contracts:	Equity contracts:															Equity contracts:
OTC	OTC	44,162		(38,061)		6,101			25,704		(23,977)		1,727			OTC	24,672		(21,496)		3,176			30,323		(25,665)		4,658
Exchange-traded(a)	Exchange-traded(a)	38,230		(36,114)		2,116			36,095		(34,673)		1,422			Exchange-traded(a)	34,196		(32,572)		1,624			28,467		(27,109)		1,358
Total equity contracts	Total equity contracts	82,392		(74,175)		8,217			61,799		(58,650)		3,149			Total equity contracts	58,868		(54,068)		4,800			58,790		(52,774)		6,016
Commodity contracts:	Commodity contracts:															Commodity contracts:
OTC	OTC	23,803		(9,815)		13,988			15,063		(6,868)		8,195			OTC	9,317		(5,539)		3,778			14,430		(7,633)		6,797
OTC–cleared	OTC–cleared	132		(127)		5			49		(49)		—			OTC–cleared	111		(111)		—			120		(112)		8
Exchange-traded(a)	Exchange-traded(a)	12,743		(12,674)		69			8,279		(8,266)		13			Exchange-traded(a)	6,266		(6,245)		21			9,103		(8,745)		358
Total commodity contracts	Total commodity contracts	36,678		(22,616)		14,062			23,391		(15,183)		8,208			Total commodity contracts	15,694		(11,895)		3,799			23,653		(16,490)		7,163
Derivative receivables with appropriate legal opinion	Derivative receivables with appropriate legal opinion	759,312		(681,120)		78,192		(d)	528,471		(488,206)		40,265		(d)	Derivative receivables with appropriate legal opinion	599,461		(544,491)		54,970		(d)	630,361		(568,713)		61,648		(d)
Derivative receivables where an appropriate legal opinion has not been either sought or obtained	Derivative receivables where an appropriate legal opinion has not been either sought or obtained	14,342				14,342			16,816				16,816			Derivative receivables where an appropriate legal opinion has not been either sought or obtained	9,247				9,247			9,232				9,232
Total derivative receivables recognized on the Consolidated balance sheets	Total derivative receivables recognized on the Consolidated balance sheets	$	773,654			$	92,534		$	545,287			$	57,081		Total derivative receivables recognized on the Consolidated balance sheets	$	608,708			$	64,217		$	639,593			$	70,880
Collateral not nettable on the Consolidated balance sheets(b)(c)	Collateral not nettable on the Consolidated balance sheets(b)(c)					(25,068)							(10,102)			Collateral not nettable on the Consolidated balance sheets(b)(c)					(23,282)							(23,014)
Net amounts	Net amounts					$	67,466						$	46,979		Net amounts					$	40,935						$	47,866

~~118~~127


		September 30, 2022							December 31, 2021								June 30, 2023							December 31, 2022
(in millions)	(in millions)	Gross derivative payables		Amounts netted on the Consolidated balance sheets		Net derivative payables			Gross derivative payables		Amounts netted on the Consolidated balance sheets		Net derivative payables			(in millions)	Gross derivative payables		Amounts netted on the Consolidated balance sheets		Net derivative payables			Gross derivative payables		Amounts netted on the Consolidated balance sheets		Net derivative payables
U.S. GAAP nettable derivative payables	U.S. GAAP nettable derivative payables															U.S. GAAP nettable derivative payables
Interest rate contracts:	Interest rate contracts:															Interest rate contracts:
OTC	OTC	$	193,084	$	(178,657)	$	14,427		$	223,576	$	(216,757)	$	6,819		OTC	$	180,016	$	(167,127)	$	12,889		$	190,108	$	(176,890)	$	13,218
OTC–cleared	OTC–cleared	69,890		(69,517)		373			15,695		(15,492)		203			OTC–cleared	94,771		(94,554)		217			97,417		(97,126)		291
Exchange-traded(a)	Exchange-traded(a)	507		(507)		—			292		(288)		4			Exchange-traded(a)	512		(504)		8			327		(305)		22
Total interest rate contracts	Total interest rate contracts	263,481		(248,681)		14,800			239,563		(232,537)		7,026			Total interest rate contracts	275,299		(262,185)		13,114			287,852		(274,321)		13,531
Credit contracts:	Credit contracts:															Credit contracts:
OTC	OTC	8,347		(7,965)		382			9,021		(8,421)		600			OTC	9,240		(8,768)		472			8,054		(7,572)		482
OTC–cleared	OTC–cleared	2,628		(2,491)		137			1,679		(1,611)		68			OTC–cleared	4,438		(4,433)		5			1,674		(1,645)		29
Total credit contracts	Total credit contracts	10,975		(10,456)		519			10,700		(10,032)		668			Total credit contracts	13,678		(13,201)		477			9,728		(9,217)		511
Foreign exchange contracts:	Foreign exchange contracts:															Foreign exchange contracts:
OTC	OTC	346,765		(328,364)		18,401			171,610		(160,946)		10,664			OTC	220,326		(208,507)		11,819			246,457		(231,248)		15,209
OTC–cleared	OTC–cleared	1,985		(1,934)		51			706		(703)		3			OTC–cleared	993		(901)		92			1,488		(1,417)		71
Exchange-traded(a)	Exchange-traded(a)	13		(4)		9			7		—		7			Exchange-traded(a)	15		—		15			20		—		20
Total foreign exchange contracts	Total foreign exchange contracts	348,763		(330,302)		18,461			172,323		(161,649)		10,674			Total foreign exchange contracts	221,334		(209,408)		11,926			247,965		(232,665)		15,300
Equity contracts:	Equity contracts:															Equity contracts:
OTC	OTC	39,131		(35,650)		3,481			31,379		(27,830)		3,549			OTC	28,206		(25,293)		2,913			29,833		(26,554)		3,279
Exchange-traded(a)	Exchange-traded(a)	36,293		(36,125)		168			40,621		(34,664)		5,957			Exchange-traded(a)	35,657		(32,572)		3,085			28,291		(27,103)		1,188
Total equity contracts	Total equity contracts	75,424		(71,775)		3,649			72,000		(62,494)		9,506			Total equity contracts	63,863		(57,865)		5,998			58,124		(53,657)		4,467
Commodity contracts:	Commodity contracts:															Commodity contracts:
OTC	OTC	15,885		(11,378)		4,507			14,874		(9,667)		5,207			OTC	9,591		(6,061)		3,530			11,954		(7,642)		4,312
OTC–cleared	OTC–cleared	126		(126)		—			73		(73)		—			OTC–cleared	116		(116)		—			112		(112)		—
Exchange-traded(a)	Exchange-traded(a)	13,484		(12,717)		767			8,954		(8,476)		478			Exchange-traded(a)	7,050		(6,268)		782			9,021		(8,758)		263
Total commodity contracts	Total commodity contracts	29,495		(24,221)		5,274			23,901		(18,216)		5,685			Total commodity contracts	16,757		(12,445)		4,312			21,087		(16,512)		4,575
Derivative payables with appropriate legal opinion	Derivative payables with appropriate legal opinion	728,138		(685,435)		42,703		(d)	518,487		(484,928)		33,559		(d)	Derivative payables with appropriate legal opinion	590,931		(555,104)		35,827		(d)	624,756		(586,372)		38,384		(d)
Derivative payables where an appropriate legal opinion has not been either sought or obtained	Derivative payables where an appropriate legal opinion has not been either sought or obtained	14,000				14,000			16,557				16,557			Derivative payables where an appropriate legal opinion has not been either sought or obtained	10,718				10,718			12,757				12,757
Total derivative payables recognized on the Consolidated balance sheets	Total derivative payables recognized on the Consolidated balance sheets	$	742,138			$	56,703		$	535,044			$	50,116		Total derivative payables recognized on the Consolidated balance sheets	$	601,649			$	46,545		$	637,513			$	51,141
Collateral not nettable on the Consolidated balance sheets(b)(c)	Collateral not nettable on the Consolidated balance sheets(b)(c)					(4,259)							(5,872)			Collateral not nettable on the Consolidated balance sheets(b)(c)					(4,248)							(3,318)
Net amounts	Net amounts					$	52,444						$	44,244		Net amounts					$	42,297						$	47,823

(a)Exchange-traded derivative balances that relate to futures contracts are settled daily.

(b)Includes liquid securities and other cash collateral held at third-party custodians related to derivative instruments where an appropriate legal opinion has been obtained. For some counterparties, the collateral amounts of financial instruments may exceed the derivative receivables and derivative payables balances. Where this is the case, the total amount reported is limited to the net derivative receivables and net derivative payables balances with that counterparty.

(c)Derivative collateral relates only to OTC and OTC-cleared derivative instruments.

(d)Net derivatives receivable included cash collateral netted of ~~$77.4~~$52.5 billion and ~~$67.6~~$51.5 billion at ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, respectively. Net derivatives payable included cash collateral netted of ~~$81.7~~$63.2 billion and ~~$64.3~~$69.2 billion at ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, respectively. Derivative cash collateral relates to OTC and OTC-cleared derivative instruments.

~~119~~128

Liquidity risk and credit-related contingent features

Refer to Note 5 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a more detailed discussion of liquidity risk and credit-related contingent features related to the Firm’s derivative contracts.

The following table shows the aggregate fair value of net derivative payables related to OTC and OTC-cleared derivatives that contain contingent collateral or termination features that may be triggered upon a ratings downgrade, and the associated collateral the Firm has posted in the normal course of business, at ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021.~~2022.


OTC and OTC-cleared derivative payables containing downgrade triggers	OTC and OTC-cleared derivative payables containing downgrade triggers							OTC and OTC-cleared derivative payables containing downgrade triggers
(in millions)	(in millions)	September 30, 2022			December 31, 2021			(in millions)	June 30, 2023			December 31, 2022
Aggregate fair value of net derivative payables	Aggregate fair value of net derivative payables		$	20,153		$	20,114	Aggregate fair value of net derivative payables		$	15,243		$	16,023
Collateral posted	Collateral posted		20,090			19,402		Collateral posted		14,144			15,505

The following table shows the impact of a single-notch and two-notch downgrade of the long-term issuer ratings of JPMorgan Chase & Co. and its subsidiaries, predominantly JPMorgan Chase Bank, N.A., at ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, related to OTC and OTC-cleared derivative contracts with contingent collateral or termination features that may be triggered upon a ratings downgrade. Derivatives contracts generally require additional collateral to be posted or terminations to be triggered when the predefined rating threshold ~~rating~~ is breached. A downgrade by a single rating agency that does not result in a rating lower than a preexisting corresponding rating provided by another major rating agency will generally not result in additional collateral (except in certain instances in which additional initial margin may be required upon a ratings downgrade), nor in termination ~~payments~~payment requirements. The liquidity impact in the table is calculated based upon a downgrade below the lowest current rating of the rating agencies referred to in the derivative contract.


Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives	Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives									Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives
		September 30, 2022				December 31, 2021					June 30, 2023				December 31, 2022
(in millions)	(in millions)	Single-notch downgrade		Two-notch downgrade		Single-notch downgrade		Two-notch downgrade		(in millions)	Single-notch downgrade		Two-notch downgrade		Single-notch downgrade		Two-notch downgrade
Amount of additional collateral to be posted upon downgrade(a)	Amount of additional collateral to be posted upon downgrade(a)	$	228	$	1,531	$	219	$	1,577	Amount of additional collateral to be posted upon downgrade(a)	$	81	$	1,241	$	128	$	1,293
Amount required to settle contracts with termination triggers upon downgrade(b)	Amount required to settle contracts with termination triggers upon downgrade(b)	83		1,070		98		787		Amount required to settle contracts with termination triggers upon downgrade(b)	80		811		88		925

(a)Includes the additional collateral to be posted for initial margin.

(b)Amounts represent fair values of derivative payables, and do not reflect collateral posted.

Derivatives executed in contemplation of a sale of the underlying financial asset

In certain instances the Firm enters into transactions in which it transfers financial assets but maintains the economic exposure to the transferred assets by entering into a derivative with the same counterparty in contemplation of the initial transfer. The Firm generally accounts for such transfers as collateralized financing transactions as described in Note ~~10,~~11, but in limited circumstances they may qualify to be accounted for as a sale and a derivative under U.S. GAAP. The amount of such transfers accounted for as a sale where the associated derivative was outstanding was not material at ~~September~~both June 30, ~~2022~~2023 and December 31, ~~2021.~~2022.

~~120~~129

Impact of derivatives on the Consolidated statements of income

The following tables provide information related to gains and losses recorded on derivatives based on their hedge accounting designation or purpose.

Fair value hedge gains and losses

The following tables present derivative instruments, by contract type, used in fair value hedge accounting relationships, as well as pre-tax gains/(losses) recorded on such derivatives and the related hedged items for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively. The Firm includes gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the related hedged item.


		Gains/(losses) recorded in income						Income statement impact of excluded components(e)				OCI impact			Gains/(losses) recorded in income						Income statement impact of excluded components(e)				OCI impact
Three months ended September 30, 2022 (in millions)		Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
Three months ended June 30, 2023 (in millions)														Three months ended June 30, 2023 (in millions)	Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
Contract type	Contract type													Contract type
Interest rate(a)(b)	Interest rate(a)(b)	$	(2,947)	$	2,819	$	(128)	$	—	$	(93)	$	—	Interest rate(a)(b)	$	(151)	$	164	$	13	$	—	$	5	$	—
Foreign exchange(c)	Foreign exchange(c)	(1,044)		1,082		38		(170)		39		50		Foreign exchange(c)	254		(188)		66		(156)		66		15
Commodity(d)	Commodity(d)	5,000		(4,992)		8		—		26		—		Commodity(d)	422		(290)		132		—		133		—
Total	Total	$	1,009	$	(1,091)	$	(82)	$	(170)	$	(28)	$	50	Total	$	525	$	(314)	$	211	$	(156)	$	204	$	15


		Gains/(losses) recorded in income						Income statement impact of excluded components(e)				OCI impact			Gains/(losses) recorded in income						Income statement impact of excluded components(e)				OCI impact
Three months ended September 30, 2021 (in millions)		Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
Three months ended June 30, 2022 (in millions)														Three months ended June 30, 2022 (in millions)	Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
Contract type	Contract type													Contract type
Interest rate(a)(b)	Interest rate(a)(b)	$	(812)	$	720	$	(92)	$	—	$	(89)	$	—	Interest rate(a)(b)	$	(4,467)	$	4,367	$	(100)	$	—	$	(79)	$	—
Foreign exchange(c)	Foreign exchange(c)	(363)		367		4		(71)		3		12		Foreign exchange(c)	(818)		830		12		(115)		12		67
Commodity(d)	Commodity(d)	(732)		754		22		—		14		—		Commodity(d)	(1,536)		1,464		(72)		—		(73)		—
Total	Total	$	(1,907)	$	1,841	$	(66)	$	(71)	$	(72)	$	12	Total	$	(6,821)	$	6,661	$	(160)	$	(115)	$	(140)	$	67


		Gains/(losses) recorded in income						Income statement impact of excluded components(e)				OCI impact			Gains/(losses) recorded in income						Income statement impact of excluded components(e)				OCI impact
Nine months ended September 30, 2022 (in millions)		Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
Six months ended June 30, 2023 (in millions)														Six months ended June 30, 2023 (in millions)	Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
Contract type	Contract type													Contract type
Interest rate(a)(b)	Interest rate(a)(b)	$	(14,484)	$	14,167	$	(317)	$	—	$	(238)	$	—	Interest rate(a)(b)	$	1,021	$	(940)	$	81	$	—	$	15	$	—
Foreign exchange(c)	Foreign exchange(c)	(2,552)		2,600		48		(350)		49		262		Foreign exchange(c)	412		(282)		130		(329)		130		(13)
Commodity(d)	Commodity(d)	3,288		(3,381)		(93)		—		(84)		—		Commodity(d)	(1,118)		1,335		217		—		217		—
Total	Total	$	(13,748)	$	13,386	$	(362)	$	(350)	$	(273)	$	262	Total	$	315	$	113	$	428	$	(329)	$	362	$	(13)


		Gains/(losses) recorded in income								Income statement impact of excluded components(e)				OCI impact			Gains/(losses) recorded in income						Income statement impact of excluded components(e)				OCI impact
Nine months ended September 30, 2021 (in millions)		Derivatives			Hedged items			Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
Six months ended June 30, 2022 (in millions)																Six months ended June 30, 2022 (in millions)	Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
Contract type	Contract type															Contract type
Interest rate(a)(b)	Interest rate(a)(b)	$	(3,749)		$	3,291		$	(458)	$	—	$	(353)	$	—	Interest rate(a)(b)	$	(11,537)	$	11,348	$	(189)	$	—	$	(145)	$	—
Foreign exchange(c)	Foreign exchange(c)	(915)		(g)	946		(g)	31		(221)		30		(56)		Foreign exchange(c)	(1,508)		1,518		10		(180)		10		212
Commodity(d)	Commodity(d)	(5,119)			5,197			78		—		46		—		Commodity(d)	(1,712)		1,611		(101)		—		(110)		—
Total	Total	$	(9,783)		$	9,434		$	(349)	$	(221)	$	(277)	$	(56)	Total	$	(14,757)	$	14,477	$	(280)	$	(180)	$	(245)	$	212

(a)Primarily consists of hedges of the benchmark (e.g.~~, London Interbank Offered Rate (“LIBOR”)~~, Secured Overnight Financing Rate (“SOFR”)) interest rate risk of fixed-rate long-term debt and AFS securities. Gains and losses were recorded in net interest income.

(b)~~Effective January 1, 2022, the Firm updated its presentation in the table above to include~~Includes the amortization of income/expense associated with the inception hedge accounting adjustment applied to the hedged ~~item; prior-period amounts have been revised to conform with the current presentation.~~item. Excludes the accrual of interest on interest rate swaps and the related hedged items.

(c)Primarily consists of hedges of the foreign currency risk of long-term debt and AFS securities for changes in spot foreign currency rates. Gains and losses related to the derivatives and the hedged items due to changes in foreign currency rates and the income statement impact of excluded components were recorded primarily in principal transactions revenue and net interest income.

(d)Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or net realizable value (net realizable value approximates fair value). Gains and losses were recorded in principal transactions revenue.

(e)The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such as forward points on foreign exchange forward contracts, time values and cross-currency basis spreads. Excluded components may impact earnings either through amortization of the initial amount over the life of the derivative, or through fair value changes recognized in the current period.

(f)Represents the change in value of amounts excluded from the assessment of effectiveness under the amortization approach, predominantly cross-currency basis spreads. The amount excluded at inception of the hedge is recognized in earnings over the life of the derivative.

~~(g)~~

~~Prior-period amounts have been revised to conform with the current presentation.~~

~~121~~130

As of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the following amounts were recorded on the Consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the income statement in future periods as an adjustment to yield.


		Carrying amount of the hedged items(a)(b)				Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:									Carrying amount of the hedged items(a)(b)		Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:
September 30, 2022 (in millions)				Active hedging relationships(d)		Discontinued hedging relationships(d)(e)		Total
June 30, 2023 (in millions)												June 30, 2023 (in millions)				Carrying amount of the hedged items(a)(b)			Active hedging relationships(d)	Discontinued hedging relationships(d)(e)		Total
Assets	Assets											Assets
Investment securities - AFS	Investment securities - AFS			$	83,829	(c)		$	(6,391)	$	489	$	(5,902)	Investment securities - AFS			$	136,444	(c)	$	(2,752)	$	(3,462)	$	(6,214)
Liabilities	Liabilities											Liabilities
Long-term debt	Long-term debt	$	168,982			$	(15,968)	$	406	$	(15,562)	Long-term debt			176,509		(5,857)		(9,105)	(14,962)
Beneficial interests issued by consolidated VIEs		—				—		—		—

		Carrying amount of the hedged items(a)(b)				Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:									Carrying amount of the hedged items(b)(c)		Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:
December 31, 2021 (in millions)				Active hedging relationships(d)		Discontinued hedging relationships(d)(e)		Total
December 31, 2022 (in millions)												December 31, 2022 (in millions)				Carrying amount of the hedged items(b)(c)			Active hedging relationships(d)	Discontinued hedging relationships(d)(e)		Total
Assets	Assets											Assets
Investment securities - AFS	Investment securities - AFS			$	65,746	(c)		$	417	$	661	$	1,078	Investment securities - AFS			$	84,073	(c)	$	(4,149)	$	(1,542)	$	(5,691)
Liabilities	Liabilities											Liabilities
Long-term debt	Long-term debt	$	195,642			$	(1,999)	$	8,834	$	6,835	Long-term debt			175,257		(11,879)		(3,313)	(15,192)
Beneficial interests issued by consolidated VIEs		749				—		(1)		(1)

(a)Excludes physical commodities with a carrying value of ~~$15.0~~$12.8 billion and ~~$25.7~~$26.0 billion at ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively, to which the Firm applies fair value hedge accounting. As a result of the application of hedge accounting, these inventories are carried at fair value, thus recognizing unrealized gains and losses in current periods. Since the Firm exits these positions at fair value, there is no incremental impact to net income in future periods.

(b)Excludes hedged items where only foreign currency risk is the designated hedged risk, as basis adjustments related to foreign currency hedges will not reverse through the income statement in future periods. At ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the carrying amount excluded for AFS securities is ~~$15.2~~$20.9 billion and ~~$14.0~~$20.3 billion, respectively, and for long-term debt is ~~$208~~$216 million and ~~$9.7 billion,~~$221 million, respectively. ~~Prior-period amount has been revised to conform with the current presentation.~~

(c)Carrying amount represents the amortized cost, net of allowance if applicable. Effective January 1, 2023, the Firm adopted the new portfolio layer method hedge accounting guidance which expanded the ability to hedge a portfolio of prepayable assets to allow more of the portfolio to be hedged. At June 30, 2023, the amortized cost of the portfolio layer method closed portfolios was $67.8 billion, of which $49.6 billion was designated as hedged. The cumulative amount of basis adjustments was $(1.1) billion, reflecting $(865) million and $(229) million for active and discontinued hedging relationships, respectively. Refer to Note 91 and Note 10 for additional information.

(d)Positive (negative) amounts related to assets represent cumulative fair value hedge basis adjustments that will reduce (increase) net interest income in future periods. Positive (negative) amounts related to liabilities represent cumulative fair value hedge basis adjustments that will increase (reduce) net interest income in future periods.

(e)Represents basis adjustments existing on the balance sheet date associated with hedged items that have been de-designated from qualifying fair value hedging relationships.

~~122~~131

Cash flow hedge gains and losses

The following tables present derivative instruments, by contract type, used in cash flow hedge accounting relationships, and the pre-tax gains/(losses) recorded on such derivatives, for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively. The Firm includes the gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the change in cash flows on the related hedged item.


		Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)							Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Three months ended September 30, 2022 (in millions)		Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Three months ended June 30, 2023 (in millions)								Three months ended June 30, 2023 (in millions)	Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Contract type	Contract type							Contract type
Interest rate(a)	Interest rate(a)	$	(160)	$	(2,279)	$	(2,119)	Interest rate(a)	$	(474)	$	(1,199)	$	(725)
Foreign exchange(b)	Foreign exchange(b)	(118)		(232)		(114)		Foreign exchange(b)	9		80		71
Total	Total	$	(278)	$	(2,511)	$	(2,233)	Total	$	(465)	$	(1,119)	$	(654)

		Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)							Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Three months ended September 30, 2021 (in millions)		Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Three months ended June 30, 2022 (in millions)								Three months ended June 30, 2022 (in millions)	Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Contract type	Contract type							Contract type
Interest rate(a)	Interest rate(a)	$	272	$	(232)	$	(504)	Interest rate(a)	$	86	$	(1,509)	$	(1,595)
Foreign exchange(b)	Foreign exchange(b)	54		(35)		(89)		Foreign exchange(b)	(62)		(241)		(179)
Total	Total	$	326	$	(267)	$	(593)	Total	$	24	$	(1,750)	$	(1,774)

		Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)							Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Nine months ended September 30, 2022 (in millions)		Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Six months ended June 30, 2023 (in millions)								Six months ended June 30, 2023 (in millions)	Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Contract type	Contract type							Contract type
Interest rate(a)	Interest rate(a)	$	169	$	(7,149)	$	(7,318)	Interest rate(a)	$	(902)	$	(738)	$	164
Foreign exchange(b)	Foreign exchange(b)	(186)		(548)		(362)		Foreign exchange(b)	(46)		186		232
Total	Total	$	(17)	$	(7,697)	$	(7,680)	Total	$	(948)	$	(552)	$	396

		Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)							Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Nine months ended September 30, 2021 (in millions)		Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Six months ended June 30, 2022 (in millions)								Six months ended June 30, 2022 (in millions)	Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Contract type	Contract type							Contract type
Interest rate(a)	Interest rate(a)	$	771	$	(1,871)	$	(2,642)	Interest rate(a)	$	329	$	(4,870)	$	(5,199)
Foreign exchange(b)	Foreign exchange(b)	159		27		(132)		Foreign exchange(b)	(68)		(316)		(248)
Total	Total	$	930	$	(1,844)	$	(2,774)	Total	$	261	$	(5,186)	$	(5,447)

(a)Primarily consists of hedges of ~~LIBOR-indexed and~~ SOFR-indexed floating-rate assets. Gains and losses were recorded in net interest income.

(b)Primarily consists of hedges of the foreign currency risk of non-U.S. dollar-denominated revenue and expense. The income statement classification of gains and losses follows the hedged item – primarily noninterest revenue and compensation expense.

The Firm did not experience any forecasted transactions that failed to occur for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022.

Over the next 12 months, the Firm expects that approximately ~~$(1.1)~~$(1.3) billion (after-tax) of net losses recorded in AOCI at ~~September~~June 30, ~~2022,~~2023, related to cash flow hedges will be recognized in income. For cash flow hedges that have been terminated, the maximum length of time over which the derivative results recorded in AOCI will be recognized in earnings is approximately seven years, corresponding to the timing of the originally hedged forecasted cash flows. For open cash flow hedges, the maximum length of time over which forecasted transactions are hedged is approximately ~~six~~seven years. The Firm’s longer-dated forecasted transactions relate to core lending and borrowing activities.

~~123~~

132

Net investment hedge gains and losses

The following table presents hedging instruments, by contract type, that were used in net investment hedge accounting relationships, and the pre-tax gains/(losses) recorded on such instruments for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022.


		Gains/(losses) recorded in income and other comprehensive income/(loss)											Gains/(losses) recorded in income and other comprehensive income/(loss)
		2022					2021						2023					2022
Three months ended September 30, (in millions)		Amounts recorded in income(a)(b)			Amounts recorded in OCI		Amounts recorded in income(a)(b)			Amounts recorded in OCI
Three months ended June 30, (in millions)												Three months ended June 30, (in millions)	Amounts recorded in income(a)(b)			Amounts recorded in OCI		Amounts recorded in income(a)(b)			Amounts recorded in OCI
Foreign exchange derivatives	Foreign exchange derivatives		$	26	$	2,992		$	(73)	$	1,028	Foreign exchange derivatives		$	121	$	(88)		$	(116)	$	3,520

		Gains/(losses) recorded in income and other comprehensive income/(loss)											Gains/(losses) recorded in income and other comprehensive income/(loss)
		2022					2021						2023					2022
Nine months ended September 30, (in millions)		Amounts recorded in income(a)(b)			Amounts recorded in OCI		Amounts recorded in income(a)(b)			Amounts recorded in OCI
Six months ended June 30, (in millions)												Six months ended June 30, (in millions)	Amounts recorded in income(a)(b)			Amounts recorded in OCI		Amounts recorded in income(a)(b)			Amounts recorded in OCI
Foreign exchange derivatives	Foreign exchange derivatives		$	(221)	$	6,850		$	(180)	$	1,958	Foreign exchange derivatives		$	205	$	(1,092)		$	(247)	$	3,858

(a)Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points on foreign exchange forward contracts. The Firm elects to record changes in fair value of these amounts directly in other income.

(b)Excludes amounts reclassified from AOCI to income on the sale or liquidation of hedged entities. Excludes amounts reclassified from AOCI to income on the sale or liquidation of hedged entities. During the six months ended June 30, 2023, the Firm reclassified a pre-tax loss of $41 million to other revenue related to the acquisition of CIFM. The amounts reclassified for the ~~nine~~three months ended ~~September~~June 30, ~~2022~~2023 and three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022 were not material. Refer to Note 1921 for further information.

~~124~~133

Gains and losses on derivatives used for specified risk management purposes

The following table presents pre-tax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from mortgage commitments, warehouse loans, MSRs, wholesale lending exposures, and foreign currency-denominated assets and liabilities.


		Derivatives gains/(losses) recorded in income										Derivatives gains/(losses) recorded in income
		Three months ended September 30,				Nine months ended September 30,				Three months ended June 30,						Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021			(in millions)	2023		2022			2023		2022
Contract type	Contract type										Contract type
Interest rate(a)	Interest rate(a)	$	(215)	$	320	$	(753)	$	822		Interest rate(a)	$	(112)	$	(309)		$	(126)	$	(538)
Credit(b)	Credit(b)	(17)		(14)		105		(81)			Credit(b)	(67)		89			(163)		122
Foreign exchange(c)	Foreign exchange(c)	(3)		14		(79)		82			Foreign exchange(c)	41		6			43		(76)
Total	Total	$	(235)	$	320	$	(727)	$	823		Total	$	(138)	$	(214)		$	(246)	$	(492)

(a)Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in mortgage commitments, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income.

(b)Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm’s wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue.

(c)Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue.

Gains and losses on derivatives related to market-making activities and other derivatives

The Firm makes markets in derivatives in order to meet the needs of customers and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. All derivatives not included in the hedge accounting or specified risk management categories above are included in this category. Gains and losses on these derivatives are primarily recorded in principal transactions revenue. Refer to Note 56 for information on principal transactions revenue.

~~125~~134

Credit derivatives

Refer to Note 5 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a more detailed discussion of credit derivatives. The following tables present a summary of the notional amounts of credit derivatives and credit-related notes the Firm sold and purchased as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021.~~2022. The Firm does not use notional amounts of credit derivatives as the primary measure of risk management for such derivatives, because the notional amount does not take into account the probability of the occurrence of a credit event, the recovery value of the reference obligation, or related cash instruments and economic hedges, each of which reduces, in the Firm’s view, the risks associated with such derivatives.

Total credit derivatives and credit-related notes


		Maximum payout/Notional amount										Maximum payout/Notional amount
September 30, 2022 (in millions)		Protection sold		Protection purchased with identical underlyings(c)			Net protection (sold)/purchased(d)		Other protection purchased(e)
June 30, 2023 (in millions)											June 30, 2023 (in millions)	Protection sold		Protection purchased with identical underlyings(c)			Net protection (sold)/purchased(d)		Other protection purchased(e)
Credit derivatives	Credit derivatives										Credit derivatives
Credit default swaps	Credit default swaps	$	(558,532)		$	572,446	$	13,914	$	1,486	Credit default swaps	$	(649,720)		$	677,813	$	28,093	$	5,774
Other credit derivatives(a)	Other credit derivatives(a)	(69,476)			87,111		17,635		17,761		Other credit derivatives(a)	(55,887)			73,831		17,944		13,765
Total credit derivatives	Total credit derivatives	(628,008)			659,557		31,549		19,247		Total credit derivatives	(705,607)			751,644		46,037		19,539
Credit-related notes(b)	Credit-related notes(b)	—			—		—		7,691		Credit-related notes(b)	—			—		—		8,064
Total	Total	$	(628,008)		$	659,557	$	31,549	$	26,938	Total	$	(705,607)		$	751,644	$	46,037	$	27,603

		Maximum payout/Notional amount										Maximum payout/Notional amount
December 31, 2021 (in millions)		Protection sold		Protection purchased with identical underlyings(c)			Net protection (sold)/purchased(d)		Other protection purchased(e)
December 31, 2022 (in millions)											December 31, 2022 (in millions)	Protection sold		Protection purchased with identical underlyings(c)			Net protection (sold)/purchased(d)		Other protection purchased(e)
Credit derivatives	Credit derivatives										Credit derivatives
Credit default swaps	Credit default swaps	$	(443,481)		$	458,180	$	14,699	$	2,269	Credit default swaps	$	(495,557)		$	509,846	$	14,289	$	2,917
Other credit derivatives(a)	Other credit derivatives(a)	(56,130)			79,586		23,456		13,435		Other credit derivatives(a)	(47,165)			65,029		17,864		11,746
Total credit derivatives	Total credit derivatives	(499,611)			537,766		38,155		15,704		Total credit derivatives	(542,722)			574,875		32,153		14,663
Credit-related notes(b)	Credit-related notes(b)	—			—		—		9,437		Credit-related notes(b)	—			—		—		7,863
Total	Total	$	(499,611)		$	537,766	$	38,155	$	25,141	Total	$	(542,722)		$	574,875	$	32,153	$	22,526

(a)Other credit derivatives predominantly consist of credit swap options and total return swaps.

(b)Represents Other protection purchased by CIB, primarily in its market-making businesses.

(c)Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may be greater or lower than the notional amount of protection sold.

(d)Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the seller of protection pays to the buyer of protection in determining settlement value.

(e)Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any protection on the identical reference instrument.

The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit derivatives as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, where JPMorgan Chase is the seller of protection. The maturity profile is based on the remaining contractual maturity of the credit derivative contracts. The ratings profile is based on the rating of the reference entity on which the credit derivative contract is based. The ratings and maturity profile of credit derivatives where JPMorgan Chase is the purchaser of protection are comparable to the profile reflected below.


Protection sold — credit derivatives ratings(a)/maturity profile	Protection sold — credit derivatives ratings(a)/maturity profile															Protection sold — credit derivatives ratings(a)/maturity profile
September 30, 2022 (in millions)		<1 year		1–5 years		>5 years		Total notional amount		Fair value of receivables(b)		Fair value of payables(b)		Net fair value
June 30, 2023 (in millions)																June 30, 2023 (in millions)	<1 year		1–5 years		>5 years		Total notional amount		Fair value of receivables(b)		Fair value of payables(b)		Net fair value
Risk rating of reference entity	Risk rating of reference entity															Risk rating of reference entity
Investment-grade	Investment-grade	$	(101,892)	$	(303,752)	$	(77,175)	$	(482,819)	$	1,598	$	(3,143)	$	(1,545)	Investment-grade	$	(103,323)	$	(412,661)	$	(37,836)	$	(553,820)	$	4,357	$	(1,281)	$	3,076
Noninvestment-grade	Noninvestment-grade	(30,272)		(94,086)		(20,831)		(145,189)		815		(4,614)		(3,799)		Noninvestment-grade	(38,784)		(106,800)		(6,203)		(151,787)		2,575		(3,606)		(1,031)
Total	Total	$	(132,164)	$	(397,838)	$	(98,006)	$	(628,008)	$	2,413	$	(7,757)	$	(5,344)	Total	$	(142,107)	$	(519,461)	$	(44,039)	$	(705,607)	$	6,932	$	(4,887)	$	2,045


December 31, 2021 (in millions)		<1 year		1–5 years		>5 years		Total notional amount		Fair value of receivables(b)		Fair value of payables(b)		Net fair value
December 31, 2022 (in millions)																December 31, 2022 (in millions)	<1 year		1–5 years		>5 years		Total notional amount		Fair value of receivables(b)		Fair value of payables(b)		Net fair value
Risk rating of reference entity	Risk rating of reference entity															Risk rating of reference entity
Investment-grade	Investment-grade	$	(91,155)	$	(255,106)	$	(29,035)	$	(375,296)	$	3,645	$	(623)	$	3,022	Investment-grade	$	(90,484)	$	(294,791)	$	(30,822)	$	(416,097)	$	2,324	$	(1,495)	$	829
Noninvestment-grade	Noninvestment-grade	(32,175)		(84,851)		(7,289)		(124,315)		2,630		(2,003)		627		Noninvestment-grade	(33,244)		(87,011)		(6,370)		(126,625)		1,267		(3,209)		(1,942)
Total	Total	$	(123,330)	$	(339,957)	$	(36,324)	$	(499,611)	$	6,275	$	(2,626)	$	3,649	Total	$	(123,728)	$	(381,802)	$	(37,192)	$	(542,722)	$	3,591	$	(4,704)	$	(1,113)

(a)The ratings scale is primarily based on external credit ratings defined by S&P and Moody’s.

(b)Amounts are shown on a gross basis, before the benefit of legally enforceable master netting agreements including cash collateral netting.

~~126~~135

Note 56 – Noninterest revenue and noninterest expense

Noninterest revenue

Refer to Note 6 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a discussion of the components of and accounting policies for the Firm’s noninterest revenue.

Investment banking fees

The following table presents the components of investment banking fees.


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Underwriting	Underwriting									Underwriting
Equity	Equity	$	271	$	1,034	$	743	$	3,169	Equity	$	317	$	230	$	550	$	472
Debt	Debt	578		1,019		2,263		3,713		Debt	704		711		1,376		1,685
Total underwriting	Total underwriting	849		2,053		3,006		6,882		Total underwriting	1,021		941		1,926		2,157
Advisory	Advisory	825		1,229		2,262		2,840		Advisory	492		645		1,236		1,437
Total investment banking fees	Total investment banking fees	$	1,674	$	3,282	$	5,268	$	9,722	Total investment banking fees	$	1,513	$	1,586	$	3,162	$	3,594

Principal transactions

The following table presents all realized and unrealized gains and losses recorded in principal transactions revenue. This table excludes interest income and interest expense on trading assets and liabilities, which are an integral part of the overall performance of the Firm’s client-driven market-making activities in CIB and fund deployment activities in Treasury and CIO. Refer to Note 67 for further information on interest income and interest expense.

Trading revenue is presented primarily by instrument type. The Firm’s client-driven market-making businesses generally utilize a variety of instrument types in connection with their market-making and related risk-management activities; accordingly, the trading revenue presented in the table below is not representative of the total revenue of any individual LOB.


		Three months ended September 30,				Nine months ended September 30,						Three months ended June 30,					Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022			2021		(in millions)	2023		2022			2023		2022
Trading revenue by instrument type	Trading revenue by instrument type										Trading revenue by instrument type
Interest rate(a)	Interest rate(a)	$	1,092	$	339	$	1,937		$	1,726	Interest rate(a)	$	1,781	$	376		$	3,567	$	845
Credit(b)	Credit(b)	488		496		1,224		(c)	2,525		Credit(b)	419		279		(c)	1,053		736		(c)
Foreign exchange	Foreign exchange	1,398		648		4,147			2,287		Foreign exchange	1,435		1,425			2,986		2,749
Equity	Equity	1,868		1,863		6,426			6,449		Equity	2,941		2,303			5,634		4,558
Commodity	Commodity	562		315		1,808			1,165		Commodity	368		499			1,294		1,246
Total trading revenue	Total trading revenue	5,408		3,661		15,542			14,152		Total trading revenue	6,944		4,882			14,534		10,134
Private equity (losses)		(25)		(115)		(64)			(30)
Private equity gains/(losses)											Private equity gains/(losses)	(34)		108			(9)		(39)
Principal transactions	Principal transactions	$	5,383	$	3,546	$	15,478		$	14,122	Principal transactions	$	6,910	$	4,990		$	14,525	$	10,095

(a)Includes the impact of changes in funding valuation adjustments on derivatives.

(b)Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities.

(c)Includes ~~net~~ markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio.

Lending- and deposit-related fees

The following table presents the components of lending- and deposit-related fees.


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Lending-related fees(a)	Lending-related fees(a)	$	379	$	374	$	1,103	$	1,102	Lending-related fees(a)	$	590	$	362	$	959	$	724
Deposit-related fees	Deposit-related fees	1,352		1,427		4,340		4,146		Deposit-related fees	1,238		1,511		2,489		2,988
Total lending- and deposit-related fees	Total lending- and deposit-related fees	$	1,731	$	1,801	$	5,443	$	5,248	Total lending- and deposit-related fees	$	1,828	$	1,873	$	3,448	$	3,712

(a) Includes the impact of the First Republic acquisition. Refer to Note 28 for additional information.

Deposit-related fees include the impact of credits earned by clients that reduce such fees.

Asset management ~~administration and commissions~~fees

The following table presents the components of asset management ~~administration and commissions.~~fees.

Three months ended September 30, Nine months ended September 30,
(in millions) 2022 2021 2022 2021
Asset management fees
Investment management fees(a)
$ 3,420 $ 3,554 $ 10,407 $ 10,232
All other asset management fees(b)
75 94 257 283
Total asset management fees 3,495 3,648 10,664 10,515
Total administration fees(c)
558 642 1,781 1,925
Commissions and other fees
Brokerage commissions(d)
648 719 2,196 2,280
All other commissions and fees 368 248 1,030 760
Total commissions and fees 1,016 967 3,226 3,040
Total asset management, administration and commissions $ 5,069 $ 5,257 $ 15,671 $ 15,480


	Three months ended June 30,				Six months ended June 30,
(in millions)	2023		2022		2023		2022
Asset management fees
Investment management fees(a)(b)	$	3,695	$	3,425	$	7,085	$	6,987
All other asset management fees(c)	79		92		154		182
Total asset management fees	$	3,774	$	3,517	$	7,239	$	7,169

(a)Represents fees earned from managing assets on behalf of the Firm’s clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts.

(b)Includes the impact of the First Republic acquisition. Refer to Note 28 for additional information.

(c)Represents fees for services that are ancillary to investment management services, such as commissions earned on the sales or distribution of mutual funds to clients.

~~(c)Predominantly includes fees for custody, securities lending, funds services~~Commissions and ~~securities clearance.~~other fees

The following table presents the components of commissions and other fees.


	Three months ended June 30,				Six months ended June 30,
(in millions)	2023		2022		2023		2022
Commissions and other fees
Brokerage commissions(a)	$	722	$	738	$	1,469	$	1,548
Administration fees(b)	575		590		1,132		1,223
All other commissions and fees (c)	442		395		833		662
Total commissions and other fees	$	1,739	$	1,723	$	3,434	$	3,433

~~(d)~~(a)Represents commissions earned when the Firm acts as a broker, by facilitating its clients’ purchases and sales of securities and other financial instruments.

(b)Predominantly includes fees for custody, securities lending, funds services and securities clearance.

(c)Includes travel-related and annuity sales commissions, depositary receipt-related service fees, as well as other service fees, which are recognized as revenue when the services are rendered.

~~127~~136

Card income

The following table presents the components of card income.


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Interchange and merchant processing income	Interchange and merchant processing income	$	7,166	$	6,117	$	20,615	$	16,959	Interchange and merchant processing income	$	7,885	$	7,214	$	15,024	$	13,449
Rewards costs and partner payments	Rewards costs and partner payments	(5,747)		(4,860)		(16,258)		(12,676)		Rewards costs and partner payments	(6,392)		(5,641)		(11,901)		(10,511)
Other card income(a)	Other card income(a)	(333)		(252)		(1,163)		(281)		Other card income(a)	(399)		(440)		(795)		(830)
Total card income	Total card income	$	1,086	$	1,005	$	3,194	$	4,002	Total card income	$	1,094	$	1,133	$	2,328	$	2,108

(a)Predominantly represents the amortization of account origination costs and annual fees.

Refer to Note 1415 for further information on mortgage fees and related income.

Other income

This revenue category includes operating lease income, as well as losses associated with the Firm’s tax-oriented investments, predominantly alternative energy equity-method investments in CIB.

The following table presents certain components of other income:


	Three months ended June 30,				Six months ended June 30,
(in millions)	2023		2022		2023		2022
Operating lease income	$	716	$	945	$	1,471	$	1,993
Losses on tax-oriented investments(a)	(462)		(427)		(874)		(835)
Estimated bargain purchase gain associated with the First Republic acquisition(b)	2,712		—		2,712		—
Gain related to the acquisition of CIFM(c)	—		—		339

(a) The losses associated with these tax-oriented investments are more than offset by lower income tax expense from the associated tax credits.

(b) Refer to Note 1628 for additional information on the First Republic acquisition.

Refer to Note 17 for information on operating lease income included within other ~~income~~income.

Noninterest expense

Other expense

Other expense on the Firm’s Consolidated statements of income includes the following:


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022			2023		2022
Legal expense	Legal expense	$	47	$	76	$	239	$	289	Legal expense	$	420	$	73		$	596	$	192

FDIC-related expense										FDIC-related expense	338		216			655		414
First Republic-related expense(a)										First Republic-related expense(a)	599		—			599		—

(a) Refer to Note 28 for additional information on the First Republic acquisition.

FDIC Special Assessment

In May 2023, the FDIC issued a notice of proposed rulemaking recommending a special assessment related to the systemic risk determination made on March 12, 2023, to recover losses to the Deposit Insurance Fund ("DIF") arising from the protection of uninsured depositors resulting from recent bank resolutions. In its current form, the rule would impose a special assessment at an annual rate of 12.5 basis points on certain banks’ estimated uninsured deposits reported as of December 31, 2022. The Firm expects to be subject to special assessments imposed by the FDIC to recover losses to the DIF.

137

Note 67 – Interest income and Interest expense

Refer to Note 7 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a description of JPMorgan Chase’s accounting policies regarding interest income and interest expense.

The following table presents the components of interest income and interest expense.


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Interest income	Interest income									Interest income
Loans(a)	Loans(a)	$	13,985	$	10,445	$	36,244	$	30,777	Loans(a)	$	20,306	$	11,626	$	38,014	$	22,259
Taxable securities	Taxable securities	2,696		1,553		6,964		4,735		Taxable securities	4,194		2,289		8,161		4,268
Non-taxable securities(b)	Non-taxable securities(b)	236		262		726		809		Non-taxable securities(b)	343		245		591		490
Total investment securities(a)	Total investment securities(a)	2,932		1,815		7,690		5,544		Total investment securities(a)	4,537		2,534		8,752		4,758
Trading assets - debt instruments	Trading assets - debt instruments	2,390		1,682		6,206		5,175		Trading assets - debt instruments	4,013		2,049		7,659		3,816
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	1,413		231		2,353		639		Federal funds sold and securities purchased under resale agreements	3,767		543		6,898		940
Securities borrowed~~(c)~~	Securities borrowed~~(c)~~	772		(73)		858		(240)		Securities borrowed~~(c)~~	1,866		173		3,582		86
Deposits with banks	Deposits with banks	3,015		174		4,332		342		Deposits with banks	5,189		1,079		10,008		1,317
All other interest-earning assets~~(d)~~(c)	All other interest-earning assets~~(d)~~(c)	1,104		206		2,070		608		All other interest-earning assets~~(d)~~(c)	1,966		642		3,735		966
Total interest income	Total interest income	$	25,611	$	14,480	$	59,753	$	42,845	Total interest income	$	41,644	$	18,646	$	78,648	$	34,142
Interest expense	Interest expense									Interest expense
Interest-bearing deposits	Interest-bearing deposits	$	3,159	$	126	$	4,239	$	404	Interest-bearing deposits	$	9,591	$	898	$	17,228	$	1,080
Federal funds purchased and securities loaned or sold under repurchase agreements	Federal funds purchased and securities loaned or sold under repurchase agreements	1,267		119		1,852		194		Federal funds purchased and securities loaned or sold under repurchase agreements	3,400		445		6,204		558
Short-term borrowings~~(e)~~(d)	Short-term borrowings~~(e)~~(d)	155		31		285		97		Short-term borrowings~~(e)~~(d)	428		113		849		157
Trading liabilities – debt and all other interest-bearing liabilities~~(f)~~(e)	Trading liabilities – debt and all other interest-bearing liabilities~~(f)~~(e)	1,045		52		1,707		130		Trading liabilities – debt and all other interest-bearing liabilities~~(f)~~(e)	2,373		471		4,344		662
Long-term debt	Long-term debt	2,405		1,054		5,042		3,244		Long-term debt	3,876		1,561		7,189		2,637
Beneficial interest issued by consolidated VIEs	Beneficial interest issued by consolidated VIEs	62		18		110		66		Beneficial interest issued by consolidated VIEs	197		30		344		48
Total interest expense	Total interest expense	$	8,093	$	1,400	$	13,235	$	4,135	Total interest expense	$	19,865	$	3,518	$	36,158	$	5,142
Net interest income	Net interest income	$	17,518	$	13,080	$	46,518	$	38,710	Net interest income	$	21,779	$	15,128	$	42,490	$	29,000
Provision for credit losses	Provision for credit losses	1,537		(1,527)		4,101		(7,968)		Provision for credit losses	2,899		1,101		5,174		2,564
Net interest income after provision for credit losses	Net interest income after provision for credit losses	$	15,981	$	14,607	$	42,417	$	46,678	Net interest income after provision for credit losses	$	18,880	$	14,027	$	37,316	$	26,436

(a)Includes the amortization/accretion of unearned income (e.g., purchase premiums/discounts and net deferred fees/costs).

(b)Represents securities which are tax-exempt for U.S. federal income tax purposes.

(c)Negative interest income is related to the impact of 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 interest-bearing liabilities.

~~(d)~~Includes interest earned on 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.

~~(e)~~(d)Includes commercial paper.

~~(f)~~(e)All other interest-bearing liabilities includes interest expense on brokerage-related customer payables.

~~128~~138

Note 78 – Pension and other postretirement employee benefit plans

Refer to Note 8 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a discussion of JPMorgan Chase’s pension and OPEB plans.

The following table presents the net periodic benefit costs reported in the Consolidated statements of income for the Firm’s defined benefit pension, defined contribution and OPEB plans.


(in millions)	(in millions)	Three months ended September 30,						Nine months ended September 30,					(in millions)	Three months ended June 30,						Six months ended June 30,
		2022			2021			2022			2021				(in millions)	2023		2022			2023		2022
		Pension and OPEB plans					Pension and OPEB plans							Pension and OPEB plans				Pension and OPEB plans
Total net periodic defined benefit plan cost/(credit)	Total net periodic defined benefit plan cost/(credit)	$	(11)	(a)	$	(65)		$	(150)	(a)	$	(184)				$	(94)	$	(75)		$	(188)	$	(139)
Total defined contribution plans	Total defined contribution plans	353			327			1,054			998				Total defined contribution plans	397		357			762		701
Total pension and OPEB cost included in noninterest expense	Total pension and OPEB cost included in noninterest expense	$	342		$	262		$	904		$	814			Total pension and OPEB cost included in noninterest expense	$	303	$	282		$	574	$	562

~~(a) Includes a $58 million pension settlement loss.~~

~~At September~~As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the fair values of plan assets for the Firm’s significant defined benefit pension and OPEB plans were ~~$19.4~~$20.5 billion and ~~$25.7~~$19.9 billion, respectively.

During the period ended September 30, 2022, a remeasurement of the Firm’s U.S. principal defined benefit plan was required as a result of a pension settlement. The remeasurement resulted in a reduction in the fair value of plan assets, reflecting market conditions at the time of remeasurement, and a reduction in the projected benefit obligation totaling $4.0 billion and $2.6 billion, respectively, resulting in a net decrease of $1.4 billion in accumulated other comprehensive income (pre-tax).

~~129~~139

Note 89 – Employee share-based incentives

Refer to Note 9 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a discussion of the accounting policies and other information relating to employee share-based incentives.

The Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income.


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Cost of prior grants of restricted stock units (“RSUs”), performance share units (“PSUs”) and stock appreciation rights (“SARs”) that are amortized over their applicable vesting periods	Cost of prior grants of restricted stock units (“RSUs”), performance share units (“PSUs”) and stock appreciation rights (“SARs”) that are amortized over their applicable vesting periods	$	292	$	283	$	941	$	919	Cost of prior grants of restricted stock units (“RSUs”), performance share units (“PSUs”) and stock appreciation rights (“SARs”) that are amortized over their applicable vesting periods	$	449	$	378	$	806	$	649
Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees	Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees	392		335		1,368		1,346		Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees	385		441		898		976
Total noncash compensation expense related to employee share-based incentive plans	Total noncash compensation expense related to employee share-based incentive plans	$	684	$	618	$	2,309	$	2,265	Total noncash compensation expense related to employee share-based incentive plans	$	834	$	819	$	1,704	$	1,625

In the first quarter of ~~2022,~~2023, in connection with its annual incentive grant for the ~~2021~~2022 performance year, the Firm granted 1920 million RSUs and ~~720~~801 thousand PSUs with weighted-average grant date fair values of ~~$151.06~~$138.57 per RSU and ~~$149.99~~$139.81 per PSU.

~~130~~140

Note 910 – Investment securities

Investment securities consist of debt securities that are classified as AFS or HTM. Debt securities classified as trading assets are discussed in Note 2. Predominantly all of the Firm’s AFS and HTM securities are held by Treasury and CIO in connection with its asset-liability management activities. At ~~September~~June 30, ~~2022,~~2023, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings).

Effective January 1, 2023, the Firm adopted the portfolio layer method hedge accounting guidance which permitted a transfer of HTM securities to AFS upon adoption. The Firm

~~During~~transferred obligations of U.S. states and municipalities with a carrying value of $7.1 billion resulting in the ~~second quarter~~recognition of $38 million net pre-tax unrealized losses in AOCI. This transfer was a noncash transaction. Refer to Note 1 and Note 21 for additional information.

During 2022, the Firm transferred ~~$73.2~~$78.3 billion of investment securities from AFS to HTM for capital management purposes. AOCI included pretax unrealized losses of ~~$4.6~~$4.8 billion on the securities at the date of transfer.

Refer to Note 10 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for additional information regarding the investment securities portfolio.

The amortized costs and estimated fair values of the investment securities portfolio were as follows for the dates indicated.


		September 30, 2022								December 31, 2021									June 30, 2023									December 31, 2022
(in millions)	(in millions)	Amortized cost(b)(c)		Gross unrealized gains		Gross unrealized losses		Fair value		Amortized cost(b)(c)		Gross unrealized gains		Gross unrealized losses		Fair value		(in millions)	Amortized cost(c)(d)		Gross unrealized gains		Gross unrealized losses		Fair value			Amortized cost(c)(d)		Gross unrealized gains		Gross unrealized losses		Fair value
Available-for-sale securities	Available-for-sale securities																	Available-for-sale securities
Mortgage-backed securities:	Mortgage-backed securities:																	Mortgage-backed securities:
U.S. GSEs and government agencies	U.S. GSEs and government agencies	$	60,338	$	204	$	7,211	$	53,331	$	72,800	$	736	$	993	$	72,543	U.S. GSEs and government agencies	$	84,749	$	326	$	5,307	$	79,768		$	77,194	$	479	$	6,170	$	71,503
Residential:	Residential:																	Residential:
U.S.	U.S.	1,644		—		103		1,541		2,128		38		2		2,164		U.S.	1,803		1		119		1,685			1,576		1		111		1,466
Non-U.S.	Non-U.S.	3,235		6		20		3,221		3,882		25		1		3,906		Non-U.S.	1,861		4		6		1,859			3,176		5		27		3,154
Commercial	Commercial	2,073		—		136		1,937		4,944		22		17		4,949		Commercial	2,223		1		168		2,056			2,113		—		155		1,958
Total mortgage-backed securities	Total mortgage-backed securities	67,290		210		7,470		60,030		83,754		821		1,013		83,562		Total mortgage-backed securities	90,636		332		5,600		85,368			84,059		485		6,463		78,081
U.S. Treasury and government agencies	U.S. Treasury and government agencies	94,558		204		4,275		90,487		178,038		668		1,243		177,463		U.S. Treasury and government agencies	63,998		297		1,558		62,737			95,217		302		3,459		92,060
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	9,038		70		526		8,582		14,890		972		2		15,860		Obligations of U.S. states and municipalities	24,279		172		428		24,023			7,103		86		403		6,786
Non-U.S. government debt securities	Non-U.S. government debt securities	15,200		17		616		14,601		16,163		92		46		16,209		Non-U.S. government debt securities	22,588		20		568		22,040			20,360		14		678		19,696
Corporate debt securities	Corporate debt securities	333		—		34		299		332		8		19		321		Corporate debt securities	410		—		22		388			381		—		24		357
Asset-backed securities:	Asset-backed securities:																	Asset-backed securities:
Collateralized loan obligations	Collateralized loan obligations	11,244		—		324		10,920		9,674		6		18		9,662		Collateralized loan obligations	5,506		3		72		5,437			5,916		1		125		5,792
Other	Other	3,256		19		54		3,221		5,403		47		2		5,448		Other	3,324		2		57		3,269			3,152		2		69		3,085
Unallocated portfolio layer fair value basis adjustments(a)																		Unallocated portfolio layer fair value basis adjustments(a)	(865)		—		(865)		NA			NA						NA
Total available-for-sale securities	Total available-for-sale securities	200,919		520		13,299		188,140		308,254		2,614		2,343		308,525		Total available-for-sale securities	209,876		826		7,440		203,262		(e)	216,188		890		11,221		205,857
Held-to-maturity securities(a)
Held-to-maturity securities(b)																		Held-to-maturity securities(b)
Mortgage-backed securities:	Mortgage-backed securities:																	Mortgage-backed securities:
U.S. GSEs and government agencies	U.S. GSEs and government agencies	114,012		—		15,112		98,900		102,556		1,400		853		103,103		U.S. GSEs and government agencies	110,517		29		13,201		97,345			113,492		35		13,709		99,818
U.S. Residential	U.S. Residential	10,750		1		1,251		9,500		7,316		1		106		7,211		U.S. Residential	10,293		3		1,206		9,090			10,503		3		1,244		9,262
Commercial	Commercial	10,311		1		791		9,521		3,730		11		54		3,687		Commercial	10,712		7		741		9,978			10,361		10		734		9,637
Total mortgage-backed securities	Total mortgage-backed securities	135,073		2		17,154		117,921		113,602		1,412		1,013		114,001		Total mortgage-backed securities	131,522		39		15,148		116,413			134,356		48		15,687		118,717
U.S. Treasury and government agencies	U.S. Treasury and government agencies	218,614		—		19,502		199,112		185,204		169		2,103		183,270		U.S. Treasury and government agencies	202,655		—		16,825		185,830			207,463		—		18,363		189,100
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	19,387		6		1,529		17,864		13,985		453		44		14,394		Obligations of U.S. states and municipalities	11,617		44		758		10,903			19,747		53		1,080		18,720
Asset-backed securities:	Asset-backed securities:																	Asset-backed securities:
Collateralized loan obligations	Collateralized loan obligations	54,566		—		2,049		52,517		48,869		75		22		48,922		Collateralized loan obligations	61,095		42		951		60,186			61,414		4		1,522		59,896
Other	Other	2,466		—		102		2,364		2,047		1		7		2,041		Other	2,052		—		84		1,968			2,325		—		110		2,215
Total held-to-maturity securities	Total held-to-maturity securities	430,106		8		40,336		389,778		363,707		2,110		3,189		362,628		Total held-to-maturity securities	408,941		125		33,766		375,300			425,305		105		36,762		388,648
Total investment securities, net of allowance for credit losses	Total investment securities, net of allowance for credit losses	$	631,025	$	528	$	53,635	$	577,918	$	671,961	$	4,724	$	5,532	$	671,153	Total investment securities, net of allowance for credit losses	$	618,817	$	951	$	41,206	$	578,562		$	641,493	$	995	$	47,983	$	594,505

(a)Represents the amount of portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Under U.S. GAAP portfolio layer method basis adjustments are not allocated to individual securities, however the amounts impact the unrealized gains or losses for the individual securities being hedged. Refer to Note 1 and Note 5 for additional information.

(b)The Firm purchased ~~$1.8 billion~~$520 million and ~~$29.3~~$4.1 billion of HTM securities for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022,~~2023, respectively, and ~~$15.9~~$14.3 billion and ~~$79.0~~$27.5 billion for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021,~~2022, respectively.

~~(b)~~(c)The amortized cost of investment securities is reported net of allowance for credit losses of ~~$61~~$104 million and ~~$42~~$96 million at ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively.

~~(c)~~(d)Excludes ~~$2.1 billion and $1.9~~$2.5 billion of accrued interest ~~receivables~~receivable at ~~September~~both June 30, ~~2022~~2023 and December 31, ~~2021, respectively.~~2022. The Firm did not reverse through interest income any accrued interest ~~receivables~~receivable for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022. Refer to Note 10 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further discussion of accounting policies for accrued interest ~~receivables~~receivable on investment securities.

(e)As of June 30, 2023, included $25.8 billion of AFS securities associated with the First Republic acquisition. Refer to Note 28 for additional information.

~~131~~141

AFS securities impairment

The following tables present the fair value and gross unrealized losses by aging category for AFS securities at ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021.~~2022. The tables exclude U.S. Treasury and government agency securities and U.S. GSE and government agency MBS with unrealized losses of ~~$11.5~~$6.9 billion and ~~$2.2~~$9.6 billion, at ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively; changes in the value of these securities are generally driven by changes in interest rates rather than changes in their credit profile given the explicit or implicit guarantees provided by the U.S. government.


		Available-for-sale securities with gross unrealized losses													Available-for-sale securities with gross unrealized losses
		Less than 12 months				12 months or more									Less than 12 months					12 months or more
September 30, 2022 (in millions)		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Total fair value		Total gross unrealized losses
June 30, 2023 (in millions)														June 30, 2023 (in millions)	Fair value			Gross unrealized losses		Fair value		Gross unrealized losses		Total fair value		Total gross unrealized losses
Available-for-sale securities	Available-for-sale securities													Available-for-sale securities
Mortgage-backed securities:	Mortgage-backed securities:													Mortgage-backed securities:
Residential:	Residential:													Residential:
U.S.	U.S.	$	1,426	$	88	$	103	$	15	$	1,529	$	103	U.S.	$	371		$	7	$	1,253	$	112	$	1,624	$	119
Non-U.S.	Non-U.S.	2,953		19		68		1		3,021		20		Non-U.S.	4			—		1,635		6		1,639		6
Commercial	Commercial	1,674		106		263		30		1,937		136		Commercial	154			3		1,761		165		1,915		168
Total mortgage-backed securities	Total mortgage-backed securities	6,053		213		434		46		6,487		259		Total mortgage-backed securities	529			10		4,649		283		5,178		293
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	4,243		493		61		33		4,304		526		Obligations of U.S. states and municipalities	10,757			123		1,961		305		12,718		428
Non-U.S. government debt securities	Non-U.S. government debt securities	9,847		475		1,474		141		11,321		616		Non-U.S. government debt securities	8,745			64		5,316		504		14,061		568
Corporate debt securities	Corporate debt securities	174		4		125		30		299		34		Corporate debt securities	123			2		77		20		200		22
Asset-backed securities:	Asset-backed securities:													Asset-backed securities:
Collateralized loan obligations	Collateralized loan obligations	8,271		244		2,510		80		10,781		324		Collateralized loan obligations	20			—		5,066		72		5,086		72
Other	Other	2,468		49		148		5		2,616		54		Other	1,157			16		1,888		41		3,045		57
Total available-for-sale securities with gross unrealized losses	Total available-for-sale securities with gross unrealized losses	$	31,056	$	1,478	$	4,752	$	335	$	35,808	$	1,813	Total available-for-sale securities with gross unrealized losses	$	21,331	(a)	$	215	$	18,957	$	1,225	$	40,288	$	1,440


		Available-for-sale securities with gross unrealized losses													Available-for-sale securities with gross unrealized losses
		Less than 12 months				12 months or more									Less than 12 months				12 months or more
December 31, 2021 (in millions)		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Total fair value		Total gross unrealized losses
December 31, 2022 (in millions)														December 31, 2022 (in millions)	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Total fair value		Total gross unrealized losses
Available-for-sale securities	Available-for-sale securities													Available-for-sale securities
Mortgage-backed securities:	Mortgage-backed securities:													Mortgage-backed securities:
Residential:	Residential:													Residential:
U.S.	U.S.	$	303	$	1	$	45	$	1	$	348	$	2	U.S.	$	1,187	$	71	$	260	$	40	$	1,447	$	111
Non-U.S.	Non-U.S.	133		1		—		—		133		1		Non-U.S.	2,848		25		70		2		2,918		27
Commercial	Commercial	2,557		5		349		12		2,906		17		Commercial	1,131		74		813		81		1,944		155
Total mortgage-backed securities	Total mortgage-backed securities	2,993		7		394		13		3,387		20		Total mortgage-backed securities	5,166		170		1,143		123		6,309		293
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	120		2		—		—		120		2		Obligations of U.S. states and municipalities	3,051		241		364		162		3,415		403
Non-U.S. government debt securities	Non-U.S. government debt securities	5,060		37		510		9		5,570		46		Non-U.S. government debt securities	6,941		321		3,848		357		10,789		678
Corporate debt securities	Corporate debt securities	166		1		46		18		212		19		Corporate debt securities	150		2		207		22		357		24
Asset-backed securities:	Asset-backed securities:													Asset-backed securities:
Collateralized loan obligations	Collateralized loan obligations	8,110		18		208		—		8,318		18		Collateralized loan obligations	3,010		61		2,701		64		5,711		125
Other	Other	89		—		178		2		267		2		Other	2,586		51		256		18		2,842		69
Total available-for-sale securities with gross unrealized losses	Total available-for-sale securities with gross unrealized losses	$	16,538	$	65	$	1,336	$	42	$	17,874	$	107	Total available-for-sale securities with gross unrealized losses	$	20,904	$	846	$	8,519	$	746	$	29,423	$	1,592

(a)Includes the impact of the First Republic acquisition, primarily impacting obligations of U.S. states and municipalities. Refer to Note 28 for additional information.

~~132~~142

HTM securities – credit risk

Credit quality indicator

The primary credit quality indicator for HTM securities is the risk rating assigned to each security. At ~~both September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, all HTM securities were rated investment grade and were current and accruing, with approximately 99% and 98% rated at least AA+., respectively.

Allowance for credit losses on investment securities

The allowance for credit losses on investment securities was ~~$61~~$104 million and ~~$73~~$47 million as of ~~September~~June 30, 2023 and 2022, ~~and 2021, respectively.~~respectively, which included a cumulative-effect adjustment to retained earnings related to the transfer of HTM securities to AFS for the six months ended June 30, 2023.

Refer to Note 10 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further discussion of accounting policies for AFS and HTM securities.

Selected impacts of investment securities on the Consolidated statements of income


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Realized gains	Realized gains	$	88	$	60	$	170	$	481	Realized gains	$	198	$	69	$	329	$	82
Realized losses	Realized losses	(1,047)		(316)		(1,676)		(878)		Realized losses	(1,098)		(222)		(2,097)		(629)
Investment securities losses	Investment securities losses	$	(959)	$	(256)	$	(1,506)	$	(397)	Investment securities losses	$	(900)	$	(153)	$	(1,768)	$	(547)
Provision for credit losses	Provision for credit losses	$	14	$	(14)	$	19	$	(5)	Provision for credit losses	$	13	$	6	$	14	$	5

~~133~~143

Contractual maturities and yields

The following table presents the amortized cost and estimated fair value at ~~September~~June 30, ~~2022,~~2023, of JPMorgan Chase’s investment securities portfolio by contractual maturity.


By remaining maturity September 30, 2022 (in millions)		Due in one year or less			Due after one year through five years			Due after five years through 10 years			Due after 10 years(b)			Total
By remaining maturity June 30, 2023 (in millions)																	By remaining maturity June 30, 2023 (in millions)	Due in one year or less			Due after one year through five years			Due after five years through 10 years			Due after 10 years(c)			Total
Available-for-sale securities	Available-for-sale securities																Available-for-sale securities
Mortgage-backed securities	Mortgage-backed securities																Mortgage-backed securities
Amortized cost	Amortized cost	$	1		$	3,213		$	4,107		$	59,969		$	67,290		Amortized cost	$	15		$	3,622		$	5,077		$	81,922		$	90,636
Fair value	Fair value	1			3,023			4,137			52,869			60,030			Fair value	14			3,488			5,057			76,809			85,368			(d)
Average yield(a)	Average yield(a)	0.50		%	2.23		%	3.80		%	2.89		%	2.92		%	Average yield(a)	2.18		%	4.55		%	5.98		%	4.40		%	4.49		%
U.S. Treasury and government agencies	U.S. Treasury and government agencies																U.S. Treasury and government agencies
Amortized cost	Amortized cost	$	20,409		$	58,159		$	9,753		$	6,237		$	94,558		Amortized cost	$	7,471		$	36,773		$	13,276		$	6,478		$	63,998
Fair value	Fair value	19,913			55,378			8,958			6,238			90,487			Fair value	7,384			35,699			13,300			6,354			62,737
Average yield(a)	Average yield(a)	1.08		%	1.56		%	2.17		%	3.90		%	1.67		%	Average yield(a)	0.35		%	4.56		%	5.97		%	6.52		%	4.56		%
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities																Obligations of U.S. states and municipalities
Amortized cost	Amortized cost	$	18		$	75		$	622		$	8,323		$	9,038		Amortized cost	$	11		$	72		$	1,244		$	22,952		$	24,279
Fair value	Fair value	18			74			623			7,867			8,582			Fair value	11			70			1,243			22,699			24,023			(d)
Average yield(a)	Average yield(a)	5.13		%	4.46		%	5.35		%	5.18		%	5.18		%	Average yield(a)	5.58		%	3.82		%	4.27		%	5.60		%	5.53		%
Non-U.S. government debt securities	Non-U.S. government debt securities																Non-U.S. government debt securities
Amortized cost	Amortized cost	$	7,465		$	3,475		$	3,951		$	309		$	15,200		Amortized cost	$	13,373		$	3,423		$	3,352		$	2,440		$	22,588
Fair value	Fair value	7,456			3,340			3,492			313			14,601			Fair value	13,360			3,321			2,929			2,430			22,040
Average yield(a)	Average yield(a)	2.83		%	2.76		%	1.24		%	2.10		%	2.39		%	Average yield(a)	4.78		%	2.97		%	1.23		%	3.61		%	3.86		%
Corporate debt securities	Corporate debt securities																Corporate debt securities
Amortized cost	Amortized cost	$	—		$	329		$	13		$	—		$	342		Amortized cost	$	199		$	227		$	14		$	—		$	440
Fair value	Fair value	—			286			13			—			299			Fair value	151			224			13			—			388
Average yield(a)	Average yield(a)	—		%	12.88		%	4.09		%	—		%	12.54		%	Average yield(a)	15.97		%	11.75		%	4.10		%	—		%	13.42		%
Asset-backed securities	Asset-backed securities																Asset-backed securities
Amortized cost	Amortized cost	$	104		$	1,618		$	3,512		$	9,266		$	14,500		Amortized cost	$	—		$	1,313		$	3,875		$	3,642		$	8,830
Fair value	Fair value	101			1,587			3,437			9,016			14,141			Fair value	—			1,291			3,836			3,579			8,706			(d)
Average yield(a)	Average yield(a)	3.51		%	3.06		%	3.35		%	3.84		%	3.63		%	Average yield(a)	—		%	3.46		%	5.98		%	6.06		%	5.64		%

Total available-for-sale securities	Total available-for-sale securities																Total available-for-sale securities
Amortized cost		$	27,997		$	66,869		$	21,958		$	84,104		$	200,928
Amortized cost(b)																	Amortized cost(b)	$	21,069		$	45,430		$	26,838		$	117,434		$	210,771
Fair value	Fair value	27,489			63,688			20,660			76,303			188,140			Fair value	20,920			44,093			26,378			111,871			203,262			(d)
Average yield(a)	Average yield(a)	1.56		%	1.75		%	2.59		%	3.30		%	2.46		%	Average yield(a)	3.32		%	4.44		%	5.30		%	4.78		%	4.63		%
Held-to-maturity securities	Held-to-maturity securities																Held-to-maturity securities
Mortgage-backed securities	Mortgage-backed securities																Mortgage-backed securities
Amortized cost	Amortized cost	$	—		$	1,759		$	11,828		$	121,498		$	135,085		Amortized cost	$	99		$	3,835		$	10,482		$	117,142		$	131,558
Fair value	Fair value	—			1,616			10,235			106,070			117,921			Fair value	97			3,555			9,212			103,549			116,413
Average yield(a)	Average yield(a)	—		%	2.19		%	2.43		%	2.84		%	2.80		%	Average yield(a)	6.21		%	2.75		%	2.53		%	2.99		%	2.95		%
U.S. Treasury and government agencies	U.S. Treasury and government agencies																U.S. Treasury and government agencies
Amortized cost	Amortized cost	$	31,247		$	120,211		$	67,156		$	—		$	218,614		Amortized cost	$	60,878		$	92,403		$	49,374		$	—		$	202,655
Fair value	Fair value	30,802			112,245			56,065			—			199,112			Fair value	59,517			85,053			41,260			—			185,830
Average yield(a)	Average yield(a)	0.53		%	0.69		%	1.27		%	—		%	0.84		%	Average yield(a)	0.46		%	0.93		%	1.27		%	—		%	0.87		%
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities																Obligations of U.S. states and municipalities
Amortized cost	Amortized cost	$	—		$	84		$	2,523		$	16,821		$	19,428		Amortized cost	$	—		$	—		$	640		$	11,015		$	11,655
Fair value	Fair value	—			78			2,470			15,316			17,864			Fair value	—			—			608			10,295			10,903
Average yield(a)	Average yield(a)	—		%	3.06		%	4.01		%	4.18		%	4.16		%	Average yield(a)	—		%	—		%	4.39		%	4.04		%	4.06		%
Asset-backed securities	Asset-backed securities																Asset-backed securities
Amortized cost	Amortized cost	$	—		$	—		$	17,229		$	39,802		$	57,031		Amortized cost	$	—		$	74		$	21,388		$	41,685		$	63,147
Fair value	Fair value	—			—			16,867			38,014			54,881			Fair value	—			74			21,139			40,941			62,154
Average yield(a)	Average yield(a)	—		%	—		%	3.26		%	3.25		%	3.25		%	Average yield(a)	—		%	6.15		%	5.87		%	6.00		%	5.96		%
Total held-to-maturity securities	Total held-to-maturity securities																Total held-to-maturity securities
Amortized cost		$	31,247		$	122,054		$	98,736		$	178,121		$	430,158
Amortized cost(b)																	Amortized cost(b)	$	60,977		$	96,312		$	81,884		$	169,842		$	409,015
Fair value	Fair value	30,802			113,939			85,637			159,400			389,778			Fair value	59,614			88,682			72,219			154,785			375,300
Average yield(a)	Average yield(a)	0.53		%	0.71		%	1.83		%	3.06		%	1.93		%	Average yield(a)	0.47		%	1.00		%	2.66		%	3.80		%	2.42		%

(a)Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of related hedging ~~derivatives.~~derivatives, including closed portfolio hedges. Taxable-equivalent amounts are used where applicable. The effective yield excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected maturities as certain securities may be prepaid. However, for certain callable debt securities, the average yield is calculated to the earliest call date.

(b)For purposes of this table, the amortized cost of available-for-sale securities excludes the allowance for credit losses of $(30) million and the portfolio layer fair value hedge basis adjustments of $(865) million at June 30, 2023. The amortized cost of held-to-maturity securities also excludes the allowance for credit losses of $(74) million at June 30, 2023.

(c)Substantially all of the Firm’s U.S. residential MBS and collateralized mortgage obligations are due in 10 years or more, based on contractual maturity. The estimated weighted-average life, which reflects anticipated future prepayments, is approximately ~~nine~~eight years for agency residential MBS, ~~and six~~seven years for ~~both~~ agency residential collateralized mortgage obligations, and six years for nonagency residential collateralized mortgage obligations.

(d)Includes AFS securities associated with the First Republic acquisition, primarily impacting due after 10 years. Refer to Note 28 for additional information.

~~134~~

144

Note 1011 – Securities financing activities

Refer to Note 11 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a discussion of accounting policies relating to securities financing activities. Refer to Note 3 for further information regarding securities ~~borrowed and securities lending~~financing agreements for which the fair value option has been elected. Refer to Note 2325 for further information regarding assets pledged and collateral received in securities financing agreements.

The table below summarizes the gross and net amounts of the Firm’s securities financing agreements as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021.~~2022. When the Firm has obtained an appropriate legal opinion with respect to a master netting agreement with a counterparty and where other relevant netting criteria under U.S. GAAP are met, the Firm nets, on the Consolidated balance sheets, the balances outstanding under its securities financing agreements with the same counterparty. In addition, the Firm exchanges securities and/or cash collateral with its counterparty to reduce the economic exposure with the

counterparty, but such collateral is not eligible for net Consolidated balance

sheet presentation. Where the Firm has obtained an appropriate legal opinion with respect to the counterparty master netting agreement, such collateral, along with securities financing balances that do not meet all these relevant netting criteria under U.S. GAAP, is presented in the table below as “Amounts not nettable on the Consolidated balance sheets,” and reduces the “Net amounts” presented. Where a legal opinion has not been either sought or obtained, the securities financing balances are presented gross in the “Net amounts” below. In transactions where the Firm is acting as the lender in a securities-for-securities lending agreement and receives securities that can be pledged or sold as collateral, the Firm recognizes the securities received at fair value within other assets and the obligation to return those securities within accounts payable and other liabilities on the Consolidated balance sheets.


		September 30, 2022												June 30, 2023
(in millions)	(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets		Amounts presented on the Consolidated balance sheets		Amounts not nettable on the Consolidated balance sheets(b)		Net amounts(c)			(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets		Amounts presented on the Consolidated balance sheets		Amounts not nettable on the Consolidated balance sheets(b)		Net amounts(c)
Assets	Assets												Assets
Securities purchased under resale agreements	Securities purchased under resale agreements	$	574,775	$	(272,911)	$	301,864	$	(289,549)		$	12,315	Securities purchased under resale agreements	$	561,426	$	(235,867)	$	325,559	$	(319,986)		$	5,573
Securities borrowed	Securities borrowed	233,381		(40,165)		193,216		(139,178)			54,038		Securities borrowed	205,579		(42,016)		163,563		(119,543)			44,020
Liabilities	Liabilities												Liabilities
Securities sold under repurchase agreements	Securities sold under repurchase agreements	$	505,755	$	(272,911)	$	232,844	$	(200,011)		$	32,833	Securities sold under repurchase agreements	$	496,866	$	(235,867)	$	260,999	$	(226,664)		$	34,335
Securities loaned and other(a)	Securities loaned and other(a)	51,645		(40,165)		11,480		(11,383)			97		Securities loaned and other(a)	50,551		(42,016)		8,535		(8,457)			78


		December 31, 2021												December 31, 2022
(in millions)	(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets		Amounts presented on the Consolidated balance sheets		Amounts not nettable on the Consolidated balance sheets(b)		Net amounts(c)			(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets		Amounts presented on the Consolidated balance sheets		Amounts not nettable on the Consolidated balance sheets(b)		Net amounts(c)
Assets	Assets												Assets
Securities purchased under resale agreements	Securities purchased under resale agreements	$	604,724	$	(343,093)	$	261,631	$	(245,588)		$	16,043	Securities purchased under resale agreements	$	597,912	$	(282,411)	$	315,501	$	(304,120)		$	11,381
Securities borrowed	Securities borrowed	250,333		(44,262)		206,071		(154,599)			51,472		Securities borrowed	228,279		(42,910)		185,369		(131,578)			53,791
Liabilities	Liabilities												Liabilities
Securities sold under repurchase agreements	Securities sold under repurchase agreements	$	532,899	$	(343,093)	$	189,806	$	(166,456)		$	23,350	Securities sold under repurchase agreements	$	480,793	$	(282,411)	$	198,382	$	(167,427)		$	30,955
Securities loaned and other(a)	Securities loaned and other(a)	52,610		(44,262)		8,348		(8,133)			215		Securities loaned and other(a)	52,443		(42,910)		9,533		(9,527)			6

(a)Includes securities-for-securities lending agreements of ~~$5.9~~$5.0 billion and ~~$5.6~~$7.0 billion at ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively, accounted for at fair value, where the Firm is acting as lender.

(b)In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the amounts reported in this column are limited to the related net asset or liability with that counterparty.

(c)Includes securities financing agreements that provide collateral rights, but where an appropriate legal opinion with respect to the master netting agreement has not been either sought or obtained. At ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, included ~~$7.4~~$4.5 billion and ~~$13.9~~$6.0 billion, respectively, of securities purchased under resale agreements; ~~$48.3~~$39.6 billion and ~~$46.4~~$49.0 billion, respectively, of securities borrowed; ~~$31.3~~$33.3 billion and ~~$21.6~~$29.1 billion, respectively, of securities sold under repurchase agreements; and ~~$21 million and $198 million, respectively, of~~ securities loaned and ~~other.~~other which were not material at both June 30, 2023 and December 31, 2022.

~~135~~145

The tables below present as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021~~2022 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements.


		Gross liability balance									Gross liability balance
		September 30, 2022				December 31, 2021					June 30, 2023				December 31, 2022
(in millions)	(in millions)	Securities sold under repurchase agreements		Securities loaned and other		Securities sold under repurchase agreements		Securities loaned and other		(in millions)	Securities sold under repurchase agreements		Securities loaned and other		Securities sold under repurchase agreements		Securities loaned and other
Mortgage-backed securities	Mortgage-backed securities									Mortgage-backed securities
U.S. GSEs and government agencies	U.S. GSEs and government agencies	$	52,178	$	—	$	37,046	$	—	U.S. GSEs and government agencies	$	72,006	$	—	$	58,050	$	—
Residential - nonagency	Residential - nonagency	1,871		—		1,508		—		Residential - nonagency	2,333		—		2,414		—
Commercial - nonagency	Commercial - nonagency	1,439		—		1,463		—		Commercial - nonagency	2,178		—		2,007		—
U.S. Treasury, GSEs and government agencies	U.S. Treasury, GSEs and government agencies	216,942		1,096		241,578		358		U.S. Treasury, GSEs and government agencies	223,411		987		191,254		1,464
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	2,213		24		1,916		7		Obligations of U.S. states and municipalities	2,038		—		1,735		5
Non-U.S. government debt	Non-U.S. government debt	158,424		1,383		174,971		1,572		Non-U.S. government debt	127,427		1,509		155,156		1,259
Corporate debt securities	Corporate debt securities	37,938		1,766		38,180		1,619		Corporate debt securities	36,575		1,882		37,121		461
Asset-backed securities	Asset-backed securities	2,524		—		1,211		—		Asset-backed securities	3,816		—		2,981		—
Equity securities	Equity securities	32,226		47,376		35,026		49,054		Equity securities	27,082		46,173		30,075		49,254
Total	Total	$	505,755	$	51,645	$	532,899	$	52,610	Total	$	496,866	$	50,551	$	480,793	$	52,443


		Remaining contractual maturity of the agreements												Remaining contractual maturity of the agreements
		Overnight and continuous						Greater than 90 days						Overnight and continuous									Greater than 90 days
September 30, 2022 (in millions)				Up to 30 days		30 – 90 days			Total
June 30, 2023 (in millions)												June 30, 2023 (in millions)				Overnight and continuous		Up to 30 days			30 – 90 days			Greater than 90 days			Total
Total securities sold under repurchase agreements	Total securities sold under repurchase agreements	$	209,161	$	172,220	$	43,427		$	80,947		$	505,755		Total securities sold under repurchase agreements			$	120,621		$	30,120			$	496,866
Total securities loaned and other	Total securities loaned and other	50,090		476		3		1,076			51,645	Total securities loaned and other		49,166			243			2			1,140				50,551


		Remaining contractual maturity of the agreements												Remaining contractual maturity of the agreements
		Overnight and continuous						Greater than 90 days						Overnight and continuous									Greater than 90 days
December 31, 2021 (in millions)				Up to 30 days		30 – 90 days			Total
December 31, 2022 (in millions)												December 31, 2022 (in millions)				Overnight and continuous		Up to 30 days			30 – 90 days			Greater than 90 days			Total
Total securities sold under repurchase agreements	Total securities sold under repurchase agreements	$	195,035	$	231,171	$	47,201		$	59,492		$	532,899		Total securities sold under repurchase agreements			$	170,696		$	37,120			$	480,793
Total securities loaned and other	Total securities loaned and other	50,034		1,701		—		875			52,610	Total securities loaned and other		50,138			1,285			3			1,017				52,443

Transfers not qualifying for sale accounting

At ~~September~~both June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, the Firm held ~~$295~~$692 million ~~and $440 million, respectively,~~ of financial assets for which the rights have been transferred to third parties; however, the transfers did not qualify as a sale in accordance with U.S. GAAP. These transfers have been recognized as collateralized financing transactions. The transferred assets are recorded in trading assets and loans, and the corresponding liabilities are recorded predominantly in short-term borrowings on the Consolidated balance sheets.

~~136~~146

Note 1112 – Loans

Loan accounting framework

The accounting for a loan depends on management’s strategy for the loan. The Firm accounts for loans based on the following categories:

•Originated or purchased loans held-for-investment (i.e., “retained”)

•Loans held-for-sale

•Loans at fair value

Refer to Note 12 of JPMorgan Chase's ~~2021~~2022 Form 10-K for a detailed discussion of loans, including accounting policies. Refer to Note 3 of this Form 10-Q for further information on the Firm's elections of fair value accounting under the fair value option. Refer to Note 2 of this Form 10-Q for information on loans carried at fair value and classified as trading assets.

On January 1, 2023 the Firm adopted the Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures accounting guidance as discussed in Note 1. The adoption of this guidance eliminated the existing accounting and disclosure requirements for TDRs, and implemented additional disclosure requirements for FDMs. The disclosure requirements for FDMs are effective for periods beginning on or after January 1, 2023. Refer to Note 12 of JPMorgan Chase's 2022 Form 10-K for a detailed discussion on loan modifications prior to January 1, 2023, which were accounted for and reported as TDRs. This new guidance also requires disclosure of current period gross charge-offs by vintage origination year, effective for periods beginning on or after January 1, 2023.

Loan portfolio

The Firm’s loan portfolio, including loans of $149.8 billion associated with the First Republic acquisition, is divided into three portfolio segments, which are the same segments used by the Firm to determine the allowance for loan losses: Consumer, excluding credit card; Credit card; and Wholesale. Within each portfolio segment the Firm monitors and assesses the credit risk in the following classes of loans, based on the risk characteristics of each loan class.

Consumer, excluding
credit card

Credit card

Wholesale(c)(d)

• Residential real estate(a)

• Auto and other(b)

• Credit card loans

• Secured by real estate

• Commercial and industrial

• Other(e)

(a)Includes scored mortgage and home equity loans held in CCB and AWM, and scored mortgage loans held in ~~CIB and Corporate.~~CIB.

(b)Includes scored auto, ~~and~~ business banking loans and ~~overdrafts.~~overdrafts in BWM and other consumer unsecured loans in CIB.

(c)Includes loans held in CIB, CB, AWM, Corporate as well as risk-rated BWM and auto dealer loans held in CCB, ~~including business banking and auto dealer loans~~ for which the wholesale methodology is applied when determining the allowance for loan losses.

(d)The wholesale portfolio segment's classes align with loan classifications as defined by the bank regulatory agencies, based on the loan's collateral, purpose, and type of borrower.

(e)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Global Private Bank clients within ~~AWM)~~AWM and J.P. Morgan Wealth Management within CCB). Refer to Note 14 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for more information on SPEs.

The following tables summarize the Firm’s loan balances by portfolio segment.


September 30, 2022		Consumer, excluding credit card			Credit card			Wholesale			Total(a)(b)
June 30, 2023													June 30, 2023	Consumer, excluding credit card				Credit card			Wholesale			Total(b)(c)
(in millions)	(in millions)			Consumer, excluding credit card			Credit card			Wholesale			Total(a)(b)														(in millions)
Retained	Retained														Retained	$	396,195	(a)	$	191,348		$	668,145	(a)	$	1,255,688
Held-for-sale	Held-for-sale	682			—			2,391			3,073				Held-for-sale	549			—			5,043			5,592
At fair value	At fair value	11,711			—			29,776			41,487				At fair value	11,460		(a)	—			27,329			38,789
Total	Total	$	313,796		$	170,462		$	628,375		$	1,112,633			Total	$	408,204		$	191,348		$	700,517		$	1,300,069

December 31, 2021		Consumer, excluding credit card			Credit card			Wholesale			Total(a)(b)
December 31, 2022													December 31, 2022	Consumer, excluding credit card				Credit card			Wholesale			Total(b)(c)
(in millions)	(in millions)			Consumer, excluding credit card			Credit card			Wholesale			Total(a)(b)														(in millions)
Retained	Retained														Retained	$	300,753		$	185,175		$	603,670		$	1,089,598
Held-for-sale	Held-for-sale	1,287			—			7,401			8,688				Held-for-sale	618			—			3,352			3,970
At fair value	At fair value	26,463			—			32,357			58,820				At fair value	10,004			—			32,075			42,079
Total	Total	$	323,306		$	154,296		$	600,112		$	1,077,714			Total	$	311,375		$	185,175		$	639,097		$	1,135,647

(a)Includes loans associated with the First Republic acquisition consisting of $91.9 billion of retained loans and $1.9 billion loans at fair value in consumer, excluding credit card and $56.0 billion of retained loans in wholesale.

(b)Excludes ~~$4.0~~$6.0 billion and ~~$2.7~~$5.2 billion of accrued interest receivables ~~at September~~as of June 30, ~~2022,~~2023 and December 31, ~~2021,~~2022, respectively. ~~The Firm wrote off accrued~~Accrued interest receivables ~~of $8 million and $10 million~~written off was not material for the three and six months ended ~~September~~June 30, ~~2022~~2023 and 2021, respectively, and $27 million and $30 million for the nine months ended September 30, 2022 and 2021, respectively. Prior-period amounts have been revised to conform with the current presentation.2022.

~~(b)~~(c)Loans (other than those for which the fair value option has been elected) are presented net of unamortized discounts and premiums and net deferred loan fees or costs. These amounts were not material as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021.~~2022.

~~137~~147

The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-for-sale during the periods indicated. Loans that were reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of this table.


		2022									2021										2023										2022
Three months ended September 30, (in millions)		Consumer, excluding credit card			Credit card		Wholesale		Total		Consumer, excluding credit card			Credit card		Wholesale		Total
Three months ended June 30, (in millions)																				Three months ended June 30, (in millions)	Consumer, excluding credit card			Credit card		Wholesale			Total		Consumer, excluding credit card			Credit card		Wholesale		Total
Purchases	Purchases	$	447	(b)(c)	$	—	$	462	$	909	$	101	(b)(c)	$	—	$	245	$	346	Purchases	$	92,002	(b)(c)(d)	$	—	$	58,398	(b)	$	150,400	$	973	(c)(d)	$	—	$	228	$	1,201
Sales	Sales	2,755			—		11,226		13,981		—			—		7,826		7,826		Sales	438			—		9,709			10,147		82			—		12,005		12,087
Retained loans reclassified to held-for-sale(a)	Retained loans reclassified to held-for-sale(a)	47			—		343		390		522			—		397		919		Retained loans reclassified to held-for-sale(a)	81			—		771			852		66			—		415		481

		2022									2021										2023										2022
Nine months ended September 30, (in millions)		Consumer, excluding credit card			Credit card		Wholesale		Total		Consumer, excluding credit card			Credit card		Wholesale		Total
Six months ended June 30, 2022 (in millions)																				Six months ended June 30, 2022 (in millions)	Consumer, excluding credit card			Credit card		Wholesale			Total		Consumer, excluding credit card			Credit card		Wholesale		Total
Purchases	Purchases	$	1,539	(b)(c)	$	—	$	856	$	2,395	$	403	(b)(c)	$	—	$	772	$	1,175	Purchases	$	92,081	(b)(c)(d)	$	—	$	58,561	(b)	$	150,642	$	1,092	(c)(d)	$	—	$	394	$	1,486
Sales	Sales	2,884			—		32,938		35,822		181			—		22,307		22,488		Sales	438			—		18,880			19,318		129			—		21,712		21,841
Retained loans reclassified to held-for-sale(a)	Retained loans reclassified to held-for-sale(a)	189			—		1,031		1,220		771			—		2,061		2,832		Retained loans reclassified to held-for-sale(a)	124			—		1,085			1,209		142			—		688		830

(a)Reclassifications of loans to held-for-sale are non-cash transactions.

(b)~~Predominantly includes~~Includes loans acquired in the First Republic acquisition consisting of $91.9 billion in Consumer, excluding credit card and $58.4 billion in Wholesale.

(c)Includes purchases of residential real estate loans, including the Firm’s voluntary repurchases of certain delinquent loans from loan pools as permitted by Government National Mortgage Association (“Ginnie Mae”) guidelines for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, FHA, RHS, and/or VA.

~~(c)~~(d)Excludes purchases of retained loans of ~~$2.4~~$1.6 billion and ~~$7.3~~$6.0 billion for the three months ended ~~September~~June 30, 2023 and 2022, and ~~2021, respectively, and $11.6~~$2.3 billion and ~~$19.3~~$9.2 billion for the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively, which are predominantly sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards.

Gains and losses on sales of loans

Net gains/(losses) on sales of loans and lending-related commitments (including adjustments to record loans and lending-related commitments held-for-sale at the lower of cost or fair value) recognized in noninterest revenue for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023, was ~~$68~~$14 million and ~~$(246)~~$37 million, respectively, of which ~~$(48)~~$16 million and ~~$(80)~~$43 million, respectively, related to loans. Net gains/(losses) on sales of loans and lending-related commitments for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021~~2022, was ~~$31~~$(352) million and ~~$225~~$(314) million, respectively, of which ~~$30~~$(67) million and ~~$211~~$(32) million, respectively, related to loans. In addition, the sale of loans may also result in write downs, recoveries or changes in the allowance recognized in the provision for credit losses.

~~138~~148

Consumer, excluding credit card loan portfolio

Consumer loans, excluding credit card loans, consist primarily of scored residential mortgages, home equity loans and lines of credit, auto and business banking loans, with a focus on serving the prime consumer credit market. The portfolio also includes home equity loans secured by junior liens, prime mortgage loans with an interest-only payment period and certain payment-option loans that may result in negative amortization.

The following table provides information about retained consumer loans, excluding credit card, by class.


(in millions)	(in millions)	September 30, 2022		December 31, 2021		(in millions)	June 30, 2023			December 31, 2022
Residential real estate	Residential real estate	$	237,771	$	224,795	Residential real estate	$	328,010	(a)	$	237,561
Auto and other~~(a)~~	Auto and other~~(a)~~	63,632		70,761		Auto and other~~(a)~~	68,185			63,192
Total retained loans	Total retained loans	$	301,403	$	295,556	Total retained loans	$	396,195		$	300,753

(a)~~At September 30, 2022 and December 31, 2021, included $791 million and $5.4~~Included $91.9 billion of loans ~~respectively, in Business Banking under~~associated with the ~~PPP.~~First Republic acquisition.

Delinquency rates are the primary credit quality indicator for consumer loans. Refer to Note 12 of JPMorgan Chase's ~~2021~~2022 Form 10-K for further information on consumer credit quality indicators.

~~139~~149

Residential real estate

~~The following tables provide information on delinquency, which~~Delinquency is the primary credit quality indicator for retained residential real estate loans. The following tables provide information on delinquency and gross charge-offs for the six months ended June 30, 2023.


(in millions, except ratios)	(in millions, except ratios)	September 30, 2022																											(in millions, except ratios)	June 30, 2023
		Term loans by origination year~~(d)~~(f)																		Revolving loans						Total				Term loans by origination year~~(d)~~(f)																		Revolving loans						Total
		2022			2021			2020			2019			2018			Prior to 2018			Within the revolving period			Converted to term loans							2023			2022			2021			2020			2019			Prior to 2019			Within the revolving period			Converted to term loans
Loan delinquency(a)(b)	Loan delinquency(a)(b)																												Loan delinquency(a)(b)
Current(c)	Current(c)	$	36,439		$	66,675		$	43,962		$	15,683		$	6,486		$	51,174		$	5,747		$	10,119		$	236,285		Current(c)	$	13,596		$	65,317		$	86,325		$	57,052		$	22,211		$	65,271		$	7,584		$	8,877		$	326,233
30–149 days past due	30–149 days past due	8			12			13			18			15			517			12			185			780			30–149 days past due	3			19			44			29			41			710			39			216			1,101
150 or more days past due	150 or more days past due	—						4			11			7			494			4			186			706			150 or more days past due	—			6			2			6			10			473			3			176			676
Total retained loans	Total retained loans	$	36,447		$	66,687		$	43,979		$	15,712		$	6,508		$	52,185		$	5,763		$	10,490		$	237,771		Total retained loans	$	13,599		$	65,342		$	86,371		$	57,087		$	22,262		$	66,454		$	7,626		$	9,269		$	328,010
% of 30+ days past due to total retained loans~~(c)~~(e)	% of 30+ days past due to total retained loans~~(c)~~(e)	0.02		%	0.02		%	0.04		%	0.18		%	0.34		%	1.89		%	0.28		%	3.54		%	0.61		%	% of 30+ days past due to total retained loans~~(c)~~(e)	0.02		%	0.04		%	0.05		%	0.06		%	0.23		%	1.75		%	0.55		%	4.23		%	0.54		%
Gross charge-offs																													Gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	52		$	14		$	4		$	70


(in millions, except ratios)	(in millions, except ratios)	December 31, 2021																											(in millions, except ratios)	December 31, 2022
		Term loans by origination year~~(d)~~(f)																		Revolving loans						Total				Term loans by origination year~~(d)~~(f)																		Revolving loans						Total
		2021			2020			2019			2018			2017			Prior to 2017			Within the revolving period			Converted to term loans							2022			2021			2020			2019			2018			Prior to 2018			Within the revolving period			Converted to term loans
Loan delinquency(a)(b)	Loan delinquency(a)(b)																												Loan delinquency(a)(b)
Current	Current	$	68,742		$	48,334		$	18,428		$	7,929		$	11,684		$	49,147		$	6,392		$	11,807		$	222,463		Current	$	39,934		$	66,072		$	43,315		$	15,397		$	6,339		$	49,632		$	5,589		$	9,685		$	235,963
30–149 days past due	30–149 days past due	13			23			27						22			578			11			182			883			30–149 days past due	29			11			14			20						597			15			208			914
150 or more days past due	150 or more days past due	—			11			21			25			33			1,069			6			284			1,449			150 or more days past due	1						6			10			7			480			4			175			684
Total retained loans	Total retained loans	$	68,755		$	48,368		$	18,476		$	7,981		$	11,739		$	50,794		$	6,409		$	12,273		$	224,795		Total retained loans	$	39,964		$	66,084		$	43,335		$	15,427		$	6,366		$	50,709		$	5,608		$	10,068		$	237,561
% of 30+ days past due to total retained loans~~(c)~~(d)	% of 30+ days past due to total retained loans~~(c)~~(d)	0.02		%	0.07		%	0.26		%	0.65		%	0.47		%	3.18		%	0.27		%	3.80		%	1.02		%	% of 30+ days past due to total retained loans~~(c)~~(d)	0.08		%	0.02		%	0.05		%	0.19		%	0.42		%	2.07		%	0.34		%	3.80		%	0.66		%

(a)~~At September 30, 2022 and December 31, 2021, individual~~Individual delinquency classifications include mortgage loans insured by U.S. government agencies ~~as follows: current included $27 million~~which were not material at June 30, 2023 and ~~$35 million; 30–149 days past due included $11 million for both periods; and 150 or more days past due included $15 million and $20 million, respectively.~~December 31, 2022

(b)At ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent.

(c)~~At September 30,~~Included $5.6 billion, $26.2 billion, $22.0 billion, $15.0 billion, $7.5 billion, and $12.9 billion of term loans originated in 2023, 2022, 2021, 2020, 2019 and ~~December 31, 2021, residential real estate~~prior to 2019, respectively, and $2.5 billion of revolving loans ~~excluded~~within the revolving period associated with the First Republic acquisition.

(d)Excludes mortgage loans ~~insured by U.S. government agencies of $26 million and $31 million, respectively,~~ that are 30 or more days past ~~due.~~due insured by U.S. government agencies which were not material at June 30, 2023 and December 31, 2022. These amounts have been excluded based upon the government guarantee.

~~(d)~~(e)Included $158 million of 30+ days past due loans associated with the First Republic acquisition.

(f)Purchased loans are included in the year in which they were originated.

Approximately 37% of the total revolving loans are senior lien loans; the remaining balance are junior lien loans. The lien position the Firm holds is considered in the Firm’s allowance for credit losses. Revolving loans that have been converted to term loans have higher delinquency rates than those that are still within the revolving period. That is primarily because the fully-amortizing payment that is generally required for those products is higher than the minimum payment options available for revolving loans within the revolving period.

~~140~~150

Nonaccrual loans and other credit quality indicators

The following table provides information on nonaccrual and other credit quality indicators for retained residential real estate loans.


(in millions, except weighted-average data)	(in millions, except weighted-average data)	September 30, 2022			December 31, 2021			(in millions, except weighted-average data)	June 30, 2023				December 31, 2022
Nonaccrual loans~~(d)~~(e)	Nonaccrual loans~~(d)~~(e)	$	3,797		$	4,759		Nonaccrual loans~~(d)~~(e)	$	3,641			$	3,745
90 or more days past due and government guaranteed(e)		17			24

Current estimated LTV ratios(f)(g)(h)	Current estimated LTV ratios(f)(g)(h)							Current estimated LTV ratios(f)(g)(h)
Greater than 125% and refreshed FICO scores:	Greater than 125% and refreshed FICO scores:							Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	Equal to or greater than 660	$	3		$	2		Equal to or greater than 660	$	68			$	2
Less than 660	Less than 660	1			2			Less than 660	5				—
101% to 125% and refreshed FICO scores:	101% to 125% and refreshed FICO scores:							101% to 125% and refreshed FICO scores:
Equal to or greater than 660	Equal to or greater than 660	40			37			Equal to or greater than 660	569				174
Less than 660	Less than 660	4			15			Less than 660	11				6
80% to 100% and refreshed FICO scores:	80% to 100% and refreshed FICO scores:							80% to 100% and refreshed FICO scores:
Equal to or greater than 660	Equal to or greater than 660	4,047			2,701			Equal to or greater than 660	17,260			(l)	12,034
Less than 660	Less than 660	63			89			Less than 660	254				184
Less than 80% and refreshed FICO scores:	Less than 80% and refreshed FICO scores:							Less than 80% and refreshed FICO scores:
Equal to or greater than 660	Equal to or greater than 660	222,577			209,295			Equal to or greater than 660	298,791			(l)	215,096
Less than 660	Less than 660	8,736			9,658			Less than 660	9,526			(l)	8,659
No FICO/LTV available	No FICO/LTV available	2,247			2,930			No FICO/LTV available	1,526				1,406			(k)
U.S. government-guaranteed		53			66
Total retained loans	Total retained loans	$	237,771		$	224,795		Total retained loans	$	328,010		(m)	$	237,561

Weighted average LTV ratio(f)(i)	Weighted average LTV ratio(f)(i)	48		%	50		%	Weighted average LTV ratio(f)(i)	51		%		51		%
Weighted average FICO(g)(i)	Weighted average FICO(g)(i)	768			765			Weighted average FICO(g)(i)	771				769

Geographic region(j)
Geographic region(j)(k)								Geographic region(j)(k)
California	California	$	73,200		$	71,383		California	$	128,038		(n)	$	73,112
New York	New York	34,518			32,545			New York	49,413			(n)	34,471
Florida	Florida	18,727			16,182			Florida	22,518			(n)	18,870
Texas	Texas	15,011			13,865			Texas	15,448				14,968
Massachusetts								Massachusetts	14,351			(n)	6,380
Illinois	Illinois	11,411			11,565			Illinois	11,052				11,296
Colorado	Colorado	9,887			8,885			Colorado	10,765				9,968
Washington	Washington	9,019			8,292			Washington	9,778				9,060
New Jersey	New Jersey	7,122			6,832			New Jersey	8,106				7,108
Massachusetts		6,370			6,105
Connecticut	Connecticut	5,465			5,242			Connecticut	7,142				5,432
All other(k)		47,041			43,899
All other								All other	51,399				46,896
Total retained loans	Total retained loans	$	237,771		$	224,795		Total retained loans	$	328,010		(m)	$	237,561

(a)Includes collateral-dependent residential real estate loans that are charged down to the fair value of the underlying collateral less costs to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower (“Chapter 7 loans”) as collateral-dependent nonaccrual ~~TDRs,~~loans, regardless of their delinquency status. At ~~September~~June 30, ~~2022,~~2023, approximately 5%9% of Chapter 7 residential real estate loans were 30 days or more past due.

(b)Mortgage loans insured by U.S. government agencies excluded from nonaccrual loans were not material at June 30, 2023 and December 31, 2022.

(c)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative.

~~(c)~~(d)Interest income on nonaccrual loans recognized on a cash basis was ~~$42~~$44 million and ~~$41~~$45 million and ~~$132~~$89 million and ~~$127~~$90 million for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.

~~(d)~~(e)Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic.

~~(e)~~These balances are excluded from nonaccrual loans as the loans are guaranteed by U.S government agencies. Typically the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. At September 30, 2022 and December 31, 2021, these balances were no longer accruing interest based on the agreed-upon servicing guidelines. There were no loans that were not guaranteed by U.S. government agencies that are 90 or more days past due and still accruing interest at September 30, 2022 and December 31, 2021.

(f)Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.

(g)Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.

(h)Includes residential real estate loans, primarily held in LLCs in AWM that did not have a refreshed FICO score. These loans have been included in a FICO band based on management’s estimation of the borrower’s credit quality.

(i)Excludes loans with no FICO and/or LTV data available.

(j)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at ~~September~~June 30, ~~2022.~~2023.

(k)~~At September 30, 2022 and December 31, 2021, included mortgage loans insured by U.S. government agencies of $53 million and $66 million, respectively. These~~Prior-period amounts have been ~~excluded from~~revised to conform with the ~~geographic regions presented based upon~~current presentation.

(l)Included $4.3 billion in equal to or greater than 660 FICO scores within 80% to 100% LTV ratio, and $85.3 billion and $1.2 billion in equal to or greater than 660 and less than 660 FICO scores, respectively, within less than 80% LTV ratio associated with the ~~government guarantee.~~First Republic acquisition.

(m)Included $91.9 billion of loans associated with the First Republic acquisition.

(n)Included $55.5 billion, $15.2 billion, $3.6 billion and $8.0 billion in California, New York, Florida and Massachusetts, respectively, associated with the First Republic acquisition.

~~141~~151

Loan modifications

~~Modifications~~

The Firm grants certain modifications of residential real estate loans to borrowers experiencing financial difficulty, which effective January 1, 2023, are reported as FDMs. The Firm's proprietary modification programs as well as government programs, including U.S. GSE programs, that generally provide various modifications to borrowers experiencing financial difficulty including, but not limited to, interest rate reductions, term extensions, other-than-insignificant payment delay and principal forgiveness that would otherwise have been required under the terms of the original agreement, are considered FDMs.

For the three and six months ended June 30, 2023, residential real estate FDMs were $35 million and $75 million, respectively. The financial effects of the FDMs, which were largely in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 15 years and 18 years, and reducing the weighted-average contractual interest rate from 6.90% to 4.21% and 6.75% to 4.01% for the three and six months ended June 30, 2023, respectively. There were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs. In addition to FDMs, the Firm also had $33 million and $48 million of loans subject to a trial modification, and $3 million and $5 million of Chapter 7 loans for the three and six months ended June 30, 2023, respectively. The changes to the TDR accounting guidance eliminated the TDR reasonably expected and concession assessment criteria. Accordingly, trial modifications and Chapter 7 loans were considered TDRs, but not FDMs.

For periods ending prior to January 1, 2023, modifications of residential real estate loans where the Firm ~~grants~~granted concessions to borrowers who ~~are~~were experiencing financial difficulty ~~are~~were generally accounted for and reported as TDRs. ~~Loans with short-term or other insignificant modifications that are not considered concessions are not TDRs. The carrying value of~~For the three and six months ended June 30, 2022, new TDRs ~~was $80~~were $115 million and ~~$116~~$233 million, ~~for the three months ended September 30, 2022 and 2021, respectively, and $313 million and $674 million for the nine months ended September 30, 2022 and 2021,~~ respectively. There were no additional commitments to lend to borrowers whose residential real estate loans have been modified in TDRs. Refer to Note 12 of JPMorgan Chase's 2022 Form 10-K for further information on TDRs.

Nature and extent of modifications

The Firm’s proprietary modification programs as well as government programs, including U.S. GSE programs, generally provide various concessions to financially troubled borrowers including, but not limited to, interest rate reductions, term or payment extensions and delays of principal and/or interest payments that would otherwise have been required under the terms of the original agreement. The following table provides information about how residential real estate loans were modified in TDRs ~~under the Firm’s loss mitigation programs described above~~ during the ~~periods~~period presented. ~~This table excludes Chapter 7 loans where the sole concession granted is the discharge of debt and loans with short-term or other insignificant modifications that are not considered concessions.~~


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,		Six months ended June 30,
		2022		2021		2022		2021			2022		2022
Number of loans approved for a trial modification	Number of loans approved for a trial modification	820		1,448		3,258		4,014		Number of loans approved for a trial modification	1,165		2,691
Number of loans permanently modified	Number of loans permanently modified	784		917		3,615		3,817		Number of loans permanently modified	1,289		2,831
Concession granted:(a)	Concession granted:(a)									Concession granted:(a)
Interest rate reduction	Interest rate reduction	47	%	75	%	54	%	74	%	Interest rate reduction	45	%	56	%
Term or payment extension	Term or payment extension	61		64		65		49		Term or payment extension	54		67
Principal and/or interest deferred	Principal and/or interest deferred	9		19		11		24		Principal and/or interest deferred	10		12
Principal forgiveness	Principal forgiveness	—		1		1		2		Principal forgiveness	1		1
Other(b)	Other(b)	46		24		38		39		Other(b)	46		36

(a)Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds 100% because predominantly all of the modifications include more than one type of concession. Concessions offered on trial modifications are generally consistent with those granted on permanent modifications.

(b)Includes variable interest rate to fixed interest rate modifications and payment delays that meet the definition of a TDR.

~~142~~

Financial effects of modifications and redefaults

The following table provides information about the financial effects of the various concessions granted in modifications of residential real estate loans ~~under the loss mitigation programs described above~~ and about redefaults of certain loans modified in TDRs for the ~~periods~~period presented. The following table presents only the financial effects of permanent modifications and do not include temporary concessions offered through trial modifications. This table also excludes Chapter 7 loans where the sole concession granted is the discharge of debt and loans with short-term or other insignificant modifications that are not considered concessions.


(in millions, except weighted-average data)	(in millions, except weighted-average data)	Three months ended September 30,						Nine months ended September 30,						(in millions, except weighted-average data)	Three months ended June 30,			Six months ended June 30,
		2022			2021			2022			2021				2022
Weighted-average interest rate of loans with interest rate reductions – before TDR	Weighted-average interest rate of loans with interest rate reductions – before TDR	5.39		%	4.65		%	4.65		%	4.55		%	Weighted-average interest rate of loans with interest rate reductions – before TDR	4.76		%	4.55		%
Weighted-average interest rate of loans with interest rate reductions – after TDR	Weighted-average interest rate of loans with interest rate reductions – after TDR	3.52			2.89			3.34			2.91			Weighted-average interest rate of loans with interest rate reductions – after TDR	3.36			3.31
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR	Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR	20			23			22			23			Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR	22			23
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR	Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR	37			37			38			37			Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR	38			39
Charge-offs recognized upon permanent modification	Charge-offs recognized upon permanent modification	$	—		$	—		$	1		$	—		Charge-offs recognized upon permanent modification	$	1		$	1
Principal deferred	Principal deferred	4			5			15			23			Principal deferred	4			11
Principal forgiven	Principal forgiven	—			—			1			1			Principal forgiven	—			1
Balance of loans that redefaulted within one year of permanent modification(a)	Balance of loans that redefaulted within one year of permanent modification(a)	$	33		$	52		$	103		$	97		Balance of loans that redefaulted within one year of permanent modification(a)	$	27		$	70

(a)Represents loans permanently modified in TDRs that experienced a payment default in the ~~periods~~period presented, and for which the payment default occurred within one year of the modification. The dollar ~~amounts~~amount presented ~~represent~~represents the balance of such loans at the end of the reporting period in which such loans defaulted. For residential real estate loans modified in TDRs, payment default is deemed to occur when the loan becomes two contractual payments past due. In the event that a modified loan redefaults, it will generally be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of loans modified within the last twelve months may not be representative of ultimate redefault levels.

At September 30, 2022, the weighted-average estimated remaining lives of residential real estate loans permanently modified in TDRs were six years. The estimated remaining lives of these loans reflect estimated prepayments, both voluntary and involuntary (i.e., foreclosures and other forced liquidations).

152

Active and suspended foreclosure

At ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the Firm had residential real estate loans, excluding those insured by U.S. government agencies, with a carrying value of ~~$676~~$566 million and ~~$619~~$565 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure.

~~143~~

Auto and other

~~The following tables provide information on delinquency, which~~Delinquency is the primary credit quality indicator for retained auto and other ~~consumer~~ loans. The following tables provide information on delinquency and gross charge-offs for the six months ended June 30, 2023.


		September 30, 2022																												June 30, 2023
(in millions, except ratios)	(in millions, except ratios)	Term loans by origination year																		Revolving loans									(in millions, except ratios)	Term loans by origination year																		Revolving loans
		2022			2021			2020			2019			2018			Prior to 2018			Within the revolving period			Converted to term loans			Total				2023			2022			2021			2020			2019			Prior to 2019			Within the revolving period			Converted to term loans			Total
Loan delinquency	Loan delinquency																												Loan delinquency
Current	Current	$	17,530		$	22,540	(b)	$	12,815	(b)	$	4,687		$	1,892		$	862		$	2,291		$	66		$	62,683		Current	$	17,763		$	18,062		$	16,287		$	8,801		$	2,765		$	1,041		$	2,544		$	113		$	67,376
30–119 days past due	30–119 days past due	164			502			86			63			34			21			15			3			888			30–119 days past due	121			234			216			79			48			28			14			15			755
120 or more days past due	120 or more days past due	—			—			53			—						1			5			2			61			120 or more days past due	—			1			25			13			—			1			2			12			54
Total retained loans	Total retained loans	$	17,694		$	23,042		$	12,954		$	4,750		$	1,926		$	884		$	2,311		$	71		$	63,632		Total retained loans	$	17,884		$	18,297		$	16,528		$	8,893		$	2,813		$	1,070		$	2,560		$	140		$	68,185
% of 30+ days past due to total retained loans(a)	% of 30+ days past due to total retained loans(a)	0.93		%	0.87		%	0.63		%	1.33		%	1.77		%	2.49		%	0.87		%	7.04		%	0.93		%	% of 30+ days past due to total retained loans(a)	0.68		%	1.28		%	1.26		%	0.83		%	1.71		%	2.71		%	0.63		%	19.29		%	1.11		%
Gross charge-offs																													Gross charge-offs	$	106		$	168		$	82		$	28		$	16		$	30		$	—		$	1		$	431


		December 31, 2021																															December 31, 2022
(in millions, except ratios)	(in millions, except ratios)	Term loans by origination year																				Revolving loans										(in millions, except ratios)	Term loans by origination year																		Revolving loans
		2021				2020				2019			2018			2017			Prior to 2017			Within the revolving period			Converted to term loans			Total					2022			2021			2020			2019			2018			Prior to 2018			Within the revolving period			Converted to term loans			Total
Loan delinquency	Loan delinquency																															Loan delinquency
Current	Current	$	35,323		(c)	$	18,324		(c)	$	7,443		$	3,671		$	1,800		$	666		$	2,242		$	120		$	69,589			Current	$	22,187		$	20,212		$	11,401		$	3,991		$	1,467		$	578		$	2,342		$	118		$	62,296
30–119 days past due	30–119 days past due	192				720				88			53			31			21			12			6			1,123				30–119 days past due	263			308			100			68			33			17			12			10			811
120 or more days past due	120 or more days past due	—				35				—						1						5			7			49				120 or more days past due	—			53			24			—			—			1			2			5			85
Total retained loans	Total retained loans	$	35,515			$	19,079			$	7,531		$	3,724		$	1,832		$	688		$	2,259		$	133		$	70,761			Total retained loans	$	22,450		$	20,573		$	11,525		$	4,059		$	1,500		$	596		$	2,356		$	133		$	63,192
% of 30+ days past due to total retained loans(a)	% of 30+ days past due to total retained loans(a)	0.54		%		0.47		%		1.17		%	1.42		%	1.75		%	3.20		%	0.75		%	9.77		%	0.71		%	(d)	% of 30+ days past due to total retained loans(a)	1.17		%	1.15		%	0.83		%	1.68		%	2.20		%	3.02		%	0.59		%	11.28		%	1.18		%

(a)At ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, auto and other loans excluded ~~$358~~$50 million and ~~$667~~$153 million, respectively, of PPP loans guaranteed by the SBA that are 30 or more days past due. These amounts have been excluded based upon the SBA guarantee.

~~(b)~~Includes $653 million of loans originated in 2021 and $138 million of loans originated in 2020 in Business Banking under the PPP. PPP loans are guaranteed by the SBA. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans.

~~(c)Includes $4.4 billion of loans originated in 2021 and $1.0 billion of loans originated in 2020 in Business Banking under the PPP.~~

~~(d)Prior-period amount has been revised to conform with the current presentation.~~

~~144~~153

Nonaccrual and other credit quality indicators

The following table provides information on nonaccrual and other credit quality indicators for retained auto and other consumer loans.


(in millions)	(in millions)	Total Auto and other				(in millions)	Total Auto and other
		September 30, 2022		December 31, 2021			June 30, 2023		December 31, 2022
Nonaccrual loans(a)(b)(c)	Nonaccrual loans(a)(b)(c)	$	120	$	119	Nonaccrual loans(a)(b)(c)	$	143	$	129

Geographic region(d)	Geographic region(d)					Geographic region(d)
California	California	$	9,904	$	11,163	California	$	10,353	$	9,689
Texas	Texas	7,233		7,859		Texas	8,070		7,216
Florida	Florida	4,792		4,901		Florida	5,344		4,847
New York	New York	4,401		5,848		New York	4,634		4,345
Illinois	Illinois	2,762		2,930		Illinois	3,062		2,839
New Jersey	New Jersey	2,219		2,355		New Jersey	2,462		2,219
Pennsylvania	Pennsylvania	1,843		2,004		Pennsylvania	1,873		1,822
Georgia	Georgia	1,698		1,748		Georgia	1,858		1,708
Louisiana		1,615		1,801
Arizona	Arizona	1,590		1,887		Arizona	1,700		1,551
Ohio						Ohio	1,672		1,603
All other	All other	25,575		28,265		All other	27,157		25,353
Total retained loans	Total retained loans	$	63,632	$	70,761	Total retained loans	$	68,185	$	63,192

(a)At ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, nonaccrual loans excluded ~~$57~~$39 million and ~~$506~~$101 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA, of which ~~$53~~$38 million and ~~$35~~$76 million, respectively, were no longer accruing interest based on the guidelines set by the SBA. Typically the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting the guidelines set by the SBA. There were no loans that were not guaranteed by the SBA that are 90 or more days past due and still accruing interest at ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021.~~2022.

(b)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to ~~the~~ charge down, the related allowance may be negative.

(c)Interest income on nonaccrual loans recognized on a cash basis was not material for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021~~2022.

(d)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at ~~September~~June 30, ~~2022.~~2023.

Loan modifications

~~Certain~~The Firm grants certain modifications of auto and other ~~loan modifications are considered to be TDRs as they provide various concessions~~loans to borrowers ~~who are~~ experiencing financial ~~difficulty. Loans with short-term or~~difficulty, which effective January 1, 2023, are reported as FDMs. For the three and six months ended June 30, 2023 and 2022, auto and other ~~insignificant modifications that are not considered concessions are not TDRs.~~

~~The impact of these modifications, as well as new TDRs,~~FDMs were not material ~~to the Firm for the three~~ and ~~nine months ended September 30, 2022 and 2021. Additional~~there were no additional commitments to lend to borrowers ~~whose loans have been~~ modified ~~in TDRs~~ as ~~of September~~FDMs.

For the three and six months ended June 30, 2022, auto and ~~December 31, 2021~~other TDRs were not material.

~~145~~154

Credit card loan portfolio

The credit card portfolio segment includes credit card loans originated and purchased by the Firm. Delinquency rates are the primary credit quality indicator for credit card loans.

Refer to Note 12 of JPMorgan Chase's ~~2021~~2022 Form 10-K for further information on the credit card loan portfolio, including credit quality indicators.

The following tables provide information on delinquency ~~which is~~and gross charge-offs for the ~~primary credit quality indicator for retained credit card loans.~~six months ended June 30, 2023.


(in millions, except ratios)	(in millions, except ratios)	September 30, 2022									(in millions, except ratios)	June 30, 2023
		Within the revolving period			Converted to term loans(a)			Total				Within the revolving period			Converted to term loans			Total
Loan delinquency	Loan delinquency										Loan delinquency
Current and less than 30 days past due and still accruing	Current and less than 30 days past due and still accruing	$	167,654		$	707		$	168,361		Current and less than 30 days past due and still accruing	$	187,340		$	755		$	188,095
30–89 days past due and still accruing	30–89 days past due and still accruing	1,078			59			1,137			30–89 days past due and still accruing	1,580			68			1,648
90 or more days past due and still accruing	90 or more days past due and still accruing	936			28			964			90 or more days past due and still accruing	1,570			35			1,605
Total retained loans	Total retained loans	$	169,668		$	794		$	170,462		Total retained loans	$	190,490		$	858		$	191,348
Loan delinquency ratios	Loan delinquency ratios										Loan delinquency ratios
% of 30+ days past due to total retained loans	% of 30+ days past due to total retained loans	1.19		%	10.96		%	1.23		%	% of 30+ days past due to total retained loans	1.65		%	12.00		%	1.70		%
% of 90+ days past due to total retained loans	% of 90+ days past due to total retained loans	0.55			3.53			0.57			% of 90+ days past due to total retained loans	0.82			4.08			0.84
Gross charge-offs											Gross charge-offs	$	2,357		$	75		$	2,432


(in millions, except ratios)	(in millions, except ratios)	December 31, 2021									(in millions, except ratios)	December 31, 2022
		Within the revolving period			Converted to term loans(a)			Total				Within the revolving period			Converted to term loans			Total
Loan delinquency	Loan delinquency										Loan delinquency
Current and less than 30 days past due and still accruing	Current and less than 30 days past due and still accruing	$	151,798		$	901		$	152,699		Current and less than 30 days past due and still accruing	$	181,793		$	696		$	182,489
30–89 days past due and still accruing	30–89 days past due and still accruing	770			59			829			30–89 days past due and still accruing	1,356			64			1,420
90 or more days past due and still accruing	90 or more days past due and still accruing	741			27			768			90 or more days past due and still accruing	1,230			36			1,266
Total retained loans	Total retained loans	$	153,309		$	987		$	154,296		Total retained loans	$	184,379		$	796		$	185,175
Loan delinquency ratios	Loan delinquency ratios										Loan delinquency ratios
% of 30+ days past due to total retained loans	% of 30+ days past due to total retained loans	0.99		%	8.71		%	1.04		%	% of 30+ days past due to total retained loans	1.40		%	12.56		%	1.45		%
% of 90+ days past due to total retained loans	% of 90+ days past due to total retained loans	0.48			2.74			0.50			% of 90+ days past due to total retained loans	0.67			4.52			0.68

~~(a)Represents TDRs.~~

Other credit quality indicators

The following table provides information on other credit quality indicators for retained credit card loans.


(in millions, except ratios)	(in millions, except ratios)	September 30, 2022			December 31, 2021			(in millions, except ratios)	June 30, 2023			December 31, 2022
Geographic region(a)	Geographic region(a)							Geographic region(a)
California	California	$	25,811		$	23,030		California	$	29,258		$	28,154
Texas	Texas	17,672			15,879			Texas	19,992			19,171
New York	New York	14,085			12,652			New York	15,511			15,046
Florida	Florida	11,702			10,412			Florida	13,439			12,905
Illinois	Illinois	9,402			8,530			Illinois	10,457			10,089
New Jersey	New Jersey	7,078			6,367			New Jersey	7,902			7,643
Ohio	Ohio	5,325			4,923			Ohio	5,898			5,792
Colorado	Colorado	5,124			4,573			Colorado	5,840			5,493
Pennsylvania	Pennsylvania	5,033			4,708			Pennsylvania	5,549			5,517
Michigan		4,112			3,773
Arizona								Arizona	4,647			4,487
All other	All other	65,118			59,449			All other	72,855			70,878
Total retained loans	Total retained loans	$	170,462		$	154,296		Total retained loans	$	191,348		$	185,175
Percentage of portfolio based on carrying value with estimated refreshed FICO scores	Percentage of portfolio based on carrying value with estimated refreshed FICO scores							Percentage of portfolio based on carrying value with estimated refreshed FICO scores
Equal to or greater than 660	Equal to or greater than 660	87.2		%	88.5		%	Equal to or greater than 660	86.4		%	86.8		%
Less than 660	Less than 660	12.6			11.3			Less than 660	13.4			13.0
No FICO available	No FICO available	0.2			0.2			No FICO available	0.2			0.2

(a)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at ~~September~~June 30, ~~2022.~~2023.

~~146~~155

Loan modifications

The Firm ~~may offer loan modification programs granting concessions to credit card borrowers who are experiencing financial difficulty. The Firm~~ grants ~~concessions for most~~certain modifications of ~~the~~ credit card loans ~~under long-term programs.~~to borrowers experiencing financial difficulty, which effective January 1, 2023, are reported as FDMs. These modifications involve placing the customer on a fixed payment plan, generally for 60 months, and typically include reducing the interest rate on the credit ~~card. Substantially all modifications~~card under ~~the Firm’s~~ long-term ~~programs are considered to be TDRs. Loans with short-term or other insignificant modifications that are not considered concessions are not TDRs.~~

programs. If the cardholder does not comply with the modified payment terms, then the credit card loan continues to age and will ultimately be charged-off in accordance with the ~~Firm’s~~Firm's standard charge-off policy. In most cases, the Firm does not reinstate the ~~borrower’s~~borrower's line of credit.

The following tables provide information on credit card loan modifications considered FDMs.


Three months ended June 30, 2023 (in millions)	Amortized cost basis		% of loan modifications to total retained credit card loans		Financial effect of loan modification

Loan modification
Term extension and interest rate reduction(a)(b)	$	181	0.09	%	Term extension with a reduction in the weighted average contractual interest rate from 23.27% to 3.57%
Total	$	181


Six months ended June 30, 2023 (in millions)	Amortized cost basis		% of loan modifications to total retained credit card loans		Financial effect of loan modification

Loan modification
Term extension and interest rate reduction(a)(b)	$	326	0.17	%	Term extension with a reduction in the weighted average contractual interest rate from 22.96% to 3.54%
Total	$	326

(a)Term extension includes credit card loans whose terms have been modified under long-term programs by placing the customer on a fixed payment plan.

(b)The interest rates represent weighted average at enrollment.

For both the three and six months ended June 30, 2023, the Firm also had $26 million of loans subject to trial modifications. The changes to the TDR accounting guidance eliminated the TDR reasonably expected and concession assessment criteria. Accordingly, trial modifications are not considered FDMs.

~~Financial effects of modifications and redefaults~~

The following table provides information ~~about the financial effects of the concessions granted~~ on ~~credit card loans modified in TDRs and redefaults for the periods presented. For all periods disclosed, new enrollments were less than 1% of total retained credit card loans.~~

(in millions, except
weighted-average data) Three months ended September 30, Nine months ended September 30,
2022 2021 2022 2021
Balance of new TDRs(a)
$ 111 $ 82 $ 274 $ 315
Weighted-average interest rate of loans – before TDR 20.26 % 17.75 % 19.19 % 17.79 %
Weighted-average interest rate of loans – after TDR 3.81 5.15 4.37 5.19
Balance of loans that redefaulted within one year of modification(b)
$ 9 $ 13 $ 26 $ 45

~~(a)Represents the outstanding balance prior to modification.~~

~~(b)Represents loans modified in TDRs that experienced a payment default in the periods presented, and for which~~ the payment ~~default occurred within one year~~status of FDMs during the ~~modification. The amounts presented represent~~three and six months ended June 30, 2023.


(in millions)	Amortized cost basis
	Three months ended June 30,		Six months ended June 30,
	2023		2023
Current and less than 30 days past due and still accruing	$	128	$	264
30-89 days past due and still accruing	32		38
90 or more days past due and still accruing	21		24
Total	$	181	$	326

There were $6 million FDMs that re-defaulted during both the ~~balance~~three and six months ended June 30, 2023 which were a combination of ~~such loans as of the end of the quarter in which they defaulted.~~term extension and interest rate reduction.

For credit card loans modified ~~in TDRs,~~as FDMs, payment default is deemed to have occurred when the borrower misses two consecutive contractual payments. Defaulted modified credit card loans remain in the modification program and continue to be charged off in accordance with the ~~Firm’s~~Firm's standard charge-off policy.

For periods ending prior to January 1, 2023, modifications of credit card loans where the Firm granted concessions to borrowers who were experiencing financial difficulty were generally accounted for and reported as TDRs. Refer to Note 12 of JPMorgan Chase's 2022 Form 10-K for further information on TDRs.

Financial effects of modifications and redefaults

The following table provides information about the financial effects of the concessions granted on credit card loans modified in TDRs and redefaults. New enrollments were less than 1% of total retained credit card loans.


(in millions, except weighted-average data)	Three months ended June 30,			Six months ended June 30,
	2022			2022
Balance of new TDRs(a)	$	81		$	163
Weighted-average interest rate of loans – before TDR	18.94		%	18.47		%
Weighted-average interest rate of loans – after TDR	4.62			4.75
Balance of loans that redefaulted within one year of modification(b)	$	8		$	17

(a)Represents the outstanding balance prior to modification.

(b)Represents loans modified in TDRs that experienced a payment default in the period presented, and for which the payment default occurred within one year of the modification. The amount presented represents the balance of such loans as of the end of the quarter in which they defaulted.

~~147~~156

Wholesale loan portfolio

Wholesale loans include loans made to a variety of clients, ranging from large corporate and institutional clients, to small businesses and high-net-worth individuals. The primary credit quality indicator for wholesale loans is the internal risk rating assigned to each loan. Refer to Note 12 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further information on these risk ratings.

~~The following tables provide information on internal~~Internal risk rating ~~which~~ is the primary credit quality indicator for retained wholesale loans. The following tables provide information on internal risk rating and gross charge-offs for the six months ended June 30, 2023.


		Secured by real estate						Commercial and industrial						Other(b)						Total retained loans							Secured by real estate						Commercial and industrial						Other(b)							Total retained loans
(in millions, except ratios)	(in millions, except ratios)	Sep 30, 2022			Dec 31, 2021			Sep 30, 2022			Dec 31, 2021			Sep 30, 2022			Dec 31, 2021			Sep 30, 2022			Dec 31, 2021			(in millions, except ratios)	Jun 30, 2023			Dec 31, 2022			Jun 30, 2023			Dec 31, 2022				Jun 30, 2023			Dec 31, 2022				Jun 30, 2023			Dec 31, 2022
Loans by risk ratings	Loans by risk ratings																									Loans by risk ratings
Investment-grade	Investment-grade	$	98,149		$	92,369		$	78,303		$	75,783		$	246,840		$	241,859		$	423,292		$	410,011		Investment-grade	$	120,652		$	99,552		$	74,505		$	76,275			$	256,821		$	249,585			$	451,978		$	425,412
Noninvestment-grade:	Noninvestment-grade:																									Noninvestment-grade:
Noncriticized	Noncriticized	23,599			22,495			77,270			62,039			56,962			52,440			157,831			136,974			Noncriticized	36,387			23,272			84,133			81,393				77,360			57,888				197,880			162,553
Criticized performing	Criticized performing	3,156			3,645			8,976			6,900			1,071			770			13,203			11,315			Criticized performing	4,314			3,662			9,980			8,974				1,400			1,106				15,694			13,742
Criticized nonaccrual~~(a)~~	Criticized nonaccrual~~(a)~~	235			326			944			969			703			759			1,882			2,054			Criticized nonaccrual~~(a)~~	518			246			1,437			1,018				638			699				2,593			1,963
Total noninvestment-grade	Total noninvestment-grade	26,990			26,466			87,190			69,908			58,736			53,969			172,916			150,343			Total noninvestment-grade	41,219			27,180			95,550			91,385				79,398			59,693				216,167			178,258
Total retained loans(a)	Total retained loans(a)	$	125,139		$	118,835		$	165,493		$	145,691		$	305,576		$	295,828		$	596,208		$	560,354		Total retained loans(a)	$	161,871		$	126,732		$	170,055		$	167,660			$	336,219		$	309,278			$	668,145		$	603,670
% of investment-grade to total retained loans	% of investment-grade to total retained loans	78.43		%	77.73		%	47.31		%	52.02		%	80.78		%	81.76		%	71.00		%	73.17		%	% of investment-grade to total retained loans	74.54		%	78.55		%	43.81		%	45.49		%		76.39		%	80.70		%		67.65		%	70.47		%
% of total criticized to total retained loans	% of total criticized to total retained loans	2.71			3.34			5.99			5.40			0.58			0.52			2.53			2.39			% of total criticized to total retained loans	2.99			3.08			6.71			5.96				0.61			0.58				2.74			2.60
% of criticized nonaccrual to total retained loans	% of criticized nonaccrual to total retained loans	0.19			0.27			0.57			0.67			0.23			0.26			0.32			0.37			% of criticized nonaccrual to total retained loans	0.32			0.19			0.85			0.61				0.19			0.23				0.39			0.33

(a)~~At September~~As of June 30, ~~2022~~2023 included $33.9 billion of Secured by real estate loans, $3.9 billion of Commercial and ~~December 31, 2021 nonaccrual~~industrial loans, ~~excluded $28 million~~ and ~~$127 million, respectively,~~$18.2 billion of ~~PPP~~Other loans ~~90 or more days past due and guaranteed by~~associated with the ~~SBA, predominantly in commercial and industrial.~~First Republic acquisition.

(b)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Global Private Bank clients within ~~AWM)~~AWM and J.P. Morgan Wealth Management within CCB). Refer to Note 14 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for more information on SPEs.


		Secured by real estate																			Secured by real estate
(in millions)	(in millions)	September 30, 2022																		(in millions)	June 30, 2023
		Term loans by origination year												Revolving loans							Term loans by origination year												Revolving loans
		2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total			2023		2022		2021		2020		2019		Prior to 2019		Within the revolving period		Converted to term loans		Total
Loans by risk ratings	Loans by risk ratings																			Loans by risk ratings
Investment-grade	Investment-grade	$	20,077	$	22,610	$	14,930	$	14,995	$	5,985	$	18,503	$	1,042	$	7	$	98,149	Investment-grade	$	6,381	$	29,986	$	26,336	$	17,251	$	16,256	$	23,159	$	1,283	$	—	$	120,652
Noninvestment-grade	Noninvestment-grade	4,862		5,415		3,278		3,763		2,560		6,280		830		2		26,990		Noninvestment-grade	2,606		11,527		8,058		4,225		4,270		9,251		1,280		2		41,219
Total retained loans(a)	Total retained loans(a)	$	24,939	$	28,025	$	18,208	$	18,758	$	8,545	$	24,783	$	1,872	$	9	$	125,139	Total retained loans(a)	$	8,987	$	41,513	$	34,394	$	21,476	$	20,526	$	32,410	$	2,563	$	2	$	161,871
Gross charge-offs																				Gross charge-offs	$	—	$	25	$	21	$	—	$	—	$	47	$	—	$	—	$	93


		Secured by real estate																			Secured by real estate
(in millions)	(in millions)	December 31, 2021																		(in millions)	December 31, 2022
		Term loans by origination year												Revolving loans							Term loans by origination year												Revolving loans
		2021		2020		2019		2018		2017		Prior to 2017		Within the revolving period		Converted to term loans		Total			2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total
Loans by risk ratings	Loans by risk ratings																			Loans by risk ratings
Investment-grade	Investment-grade	$	23,346	$	16,030	$	17,265	$	8,103	$	7,325	$	19,066	$	1,226	$	8	$	92,369	Investment-grade	$	24,134	$	22,407	$	14,773	$	14,666	$	5,277	$	17,289	$	1,006	$	—	$	99,552
Noninvestment-grade	Noninvestment-grade	5,364		3,826		4,564		3,806		2,834		5,613		458		1		26,466		Noninvestment-grade	6,072		5,602		3,032		3,498		2,395		5,659		920		2		27,180
Total retained loans	Total retained loans	$	28,710	$	19,856	$	21,829	$	11,909	$	10,159	$	24,679	$	1,684	$	9	$	118,835	Total retained loans	$	30,206	$	28,009	$	17,805	$	18,164	$	7,672	$	22,948	$	1,926	$	2	$	126,732

(a) As of June 30, 2023 included $3.0 billion, $11.0 billion, $6.3 billion, $4.4 billion, $3.0 billion, and $5.4 billion of retained loans originated in 2023, 2022, 2021, 2020, 2019 and prior to 2019, respectively, and $799 million of revolving loans within the revolving period associated with the First Republic acquisition.

~~148~~

157


		Commercial and industrial																				Commercial and industrial
(in millions)	(in millions)	September 30, 2022																			(in millions)	June 30, 2023
		Term loans by origination year												Revolving loans								Term loans by origination year												Revolving loans
		2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total				2023		2022		2021		2020		2019		Prior to 2019		Within the revolving period		Converted to term loans		Total
Loans by risk ratings	Loans by risk ratings																				Loans by risk ratings
Investment-grade	Investment-grade	$	18,514	$	9,621	$	3,722	$	2,186	$	940	$	1,233	$	41,991	$	96	$	78,303	(a)	Investment-grade	$	10,777	$	12,726	$	6,324	$	2,510	$	1,314	$	1,268	$	39,585	$	1	$	74,505
Noninvestment-grade	Noninvestment-grade	19,371		13,289		3,820		3,097		803		975		45,755		80		87,190			Noninvestment-grade	10,510		19,667		11,130		2,827		1,828		1,445		48,051		92		95,550
Total retained loans(a)	Total retained loans(a)	$	37,885	$	22,910	$	7,542	$	5,283	$	1,743	$	2,208	$	87,746	$	176	$	165,493		Total retained loans(a)	$	21,287	$	32,393	$	17,454	$	5,337	$	3,142	$	2,713	$	87,636	$	93	$	170,055
Gross charge-offs																					Gross charge-offs	$	—	$	6	$	20	$	1	$	2	$	6	$	149	$	4	$	188


		Commercial and industrial																				Commercial and industrial
(in millions)	(in millions)	December 31, 2021																			(in millions)	December 31, 2022
		Term loans by origination year												Revolving loans								Term loans by origination year												Revolving loans
		2021		2020		2019		2018		2017		Prior to 2017		Within the revolving period		Converted to term loans		Total				2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total
Loans by risk ratings	Loans by risk ratings																				Loans by risk ratings
Investment-grade	Investment-grade	$	21,342	$	6,268	$	3,609	$	1,269	$	1,108	$	819	$	41,367	$	1	$	75,783	(b)	Investment-grade	$	21,072	$	8,338	$	3,045	$	1,995	$	748	$	989	$	40,087	$	1	$	76,275
Noninvestment-grade	Noninvestment-grade	19,314		7,112		4,559		2,177		930		430		35,312		74		69,908			Noninvestment-grade	24,088		12,444		3,459		2,506		525		1,014		47,267		82		91,385
Total retained loans	Total retained loans	$	40,656	$	13,380	$	8,168	$	3,446	$	2,038	$	1,249	$	76,679	$	75	$	145,691		Total retained loans	$	45,160	$	20,782	$	6,504	$	4,501	$	1,273	$	2,003	$	87,354	$	83	$	167,660

(a)~~At September~~ As of June 30, ~~2022, $188~~2023 included $231 million, $764 million, $444 million, $346 million, $92 million, and $270 million of ~~the $215 million total PPP~~retained loans ~~in the wholesale portfolio were commercial and industrial. Of the $188 million, $82 million were~~ originated in 2023, 2022, 2021, 2020, 2019 and ~~$106 million were originated in 2020. PPP loans are guaranteed by the SBA~~prior to 2019, respectively, and considered investment-grade. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans.

~~(b)At December 31, 2021, $1.1~~$1.7 billion of revolving loans within the ~~$1.3 billion total PPP loans in~~revolving period associated with the ~~wholesale portfolio were commercial and industrial. Of the $1.1 billion, $698 million were originated in 2021 and $396 million were originated in 2020.~~First Republic acquisition.


		Other(a)																			Other(a)
(in millions)	(in millions)	September 30, 2022																		(in millions)	June 30, 2023
		Term loans by origination year												Revolving loans							Term loans by origination year												Revolving loans
		2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total			2023		2022		2021		2020		2019		Prior to 2019		Within the revolving period		Converted to term loans		Total
Loans by risk ratings	Loans by risk ratings																			Loans by risk ratings
Investment-grade	Investment-grade	$	29,605	$	16,432	$	13,933	$	4,935	$	2,422	$	8,097	$	170,329	$	1,087	$	246,840	Investment-grade	$	24,067	$	21,496	$	11,927	$	10,970	$	4,139	$	7,700	$	173,951	$	2,571	$	256,821
Noninvestment-grade	Noninvestment-grade	12,693		7,571		2,229		698		521		504		34,503		17		58,736		Noninvestment-grade	6,821		12,769		6,803		2,368		760		2,083		47,735		59		79,398
Total retained loans(b)	Total retained loans(b)	$	42,298	$	24,003	$	16,162	$	5,633	$	2,943	$	8,601	$	204,832	$	1,104	$	305,576	Total retained loans(b)	$	30,888	$	34,265	$	18,730	$	13,338	$	4,899	$	9,783	$	221,686	$	2,630	$	336,219
Gross charge-offs																				Gross charge-offs	$	—	$	—	$	5	$	5	$	—	$	—	$	3	$	—	$	13


		Other(a)																			Other(a)
(in millions)	(in millions)	December 31, 2021																		(in millions)	December 31, 2022
		Term loans by origination year												Revolving loans							Term loans by origination year												Revolving loans
		2021		2020		2019		2018		2017		Prior to 2017		Within the revolving period		Converted to term loans		Total			2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total
Loans by risk ratings	Loans by risk ratings																			Loans by risk ratings
Investment-grade	Investment-grade	$	26,782	$	17,829	$	6,125	$	2,885	$	3,868	$	7,651	$	176,118	$	601	$	241,859	Investment-grade	$	32,121	$	15,864	$	13,015	$	4,529	$	2,159	$	7,251	$	171,049	$	3,597	$	249,585
Noninvestment-grade	Noninvestment-grade	16,905		2,399		1,455		935		218		467		31,585		5		53,969		Noninvestment-grade	16,829		7,096		1,821		699		451		475		32,240		82		59,693
Total retained loans	Total retained loans	$	43,687	$	20,228	$	7,580	$	3,820	$	4,086	$	8,118	$	207,703	$	606	$	295,828	Total retained loans	$	48,950	$	22,960	$	14,836	$	5,228	$	2,610	$	7,726	$	203,289	$	3,679	$	309,278

(a)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Global Private Bank clients within ~~AWM)~~AWM and J.P. Morgan Wealth Management within CCB). Refer to Note 14 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for more information on SPEs.

(b)As of June 30, 2023 included $128 million, $615 million, $708 million, $877 million, $168 million, and $1.3 billion of retained loans originated in 2023, 2022, 2021, 2020, 2019 and prior to 2019, respectively, $14.3 billion of revolving loans within the revolving period, and $55 million converted to term loans associated with the First Republic acquisition.

~~149~~158

The following table presents additional information on retained loans secured by real estate, which consists of loans secured wholly or substantially by a lien or liens on real property at origination.


(in millions, except ratios)	(in millions, except ratios)	Multifamily						Other commercial						Total retained loans secured by real estate						(in millions, except ratios)	Multifamily						Other commercial						Total retained loans secured by real estate
		Sep 30, 2022			Dec 31, 2021			Sep 30, 2022			Dec 31, 2021			Sep 30, 2022			Dec 31, 2021				Jun 30, 2023			Dec 31, 2022			Jun 30, 2023			Dec 31, 2022			Jun 30, 2023				Dec 31, 2022
Retained loans secured by real estate	Retained loans secured by real estate	$	78,566		$	73,801		$	46,573		$	45,034		$	125,139		$	118,835		Retained loans secured by real estate	$	100,732		$	79,139		$	61,139		$	47,593		$	161,871		(a)	$	126,732
Criticized	Criticized	1,560			1,671			1,831			2,300			3,391			3,971			Criticized	2,141			1,916			2,691			1,992			4,832				3,908
% of criticized to total retained loans secured by real estate	% of criticized to total retained loans secured by real estate	1.99		%	2.26		%	3.93		%	5.11		%	2.71		%	3.34		%	% of criticized to total retained loans secured by real estate	2.13		%	2.42		%	4.40		%	4.19		%	2.99		%		3.08		%
Criticized nonaccrual	Criticized nonaccrual	$	53		$	91		$	182		$	235		$	235		$	326		Criticized nonaccrual	$	56		$	51		$	462		$	195		$	518			$	246
% of criticized nonaccrual loans to total retained loans secured by real estate	% of criticized nonaccrual loans to total retained loans secured by real estate	0.07		%	0.12		%	0.39		%	0.52		%	0.19		%	0.27		%	% of criticized nonaccrual loans to total retained loans secured by real estate	0.06		%	0.06		%	0.76		%	0.41		%	0.32		%		0.19		%

(a) Included $21.0 billion and $13.0 billion of Multifamily and Other commercial loans associated with the First Republic acquisition.

Geographic distribution and delinquency

The following table provides information on the geographic distribution and delinquency for retained wholesale loans.


		Secured by real estate				Commercial and industrial				Other				Total retained loans					Secured by real estate				Commercial and industrial				Other				Total retained loans
(in millions)	(in millions)	Sep 30, 2022		Dec 31, 2021		Sep 30, 2022		Dec 31, 2021		Sep 30, 2022		Dec 31, 2021		Sep 30, 2022		Dec 31, 2021		(in millions)	Jun 30, 2023		Dec 31, 2022		Jun 30, 2023		Dec 31, 2022		Jun 30, 2023		Dec 31, 2022		Jun 30, 2023		Dec 31, 2022
Loans by geographic distribution~~(a)~~(b)	Loans by geographic distribution~~(a)~~(b)																	Loans by geographic distribution~~(a)~~(b)
Total U.S.	Total U.S.	$	122,226	$	115,732	$	125,010	$	106,449	$	225,444	$	215,750	$	472,680	$	437,931	Total U.S.	$	158,936	$	123,740	$	129,316	$	125,324	$	257,319	$	230,525	$	545,571	$	479,589
Total non-U.S.	Total non-U.S.	2,913		3,103		40,483		39,242		80,132		80,078		123,528		122,423		Total non-U.S.	2,935		2,992		40,739		42,336		78,900		78,753		122,574		124,081
Total retained loans	Total retained loans	$	125,139	$	118,835	$	165,493	$	145,691	$	305,576	$	295,828	$	596,208	$	560,354	Total retained loans	$	161,871	$	126,732	$	170,055	$	167,660	$	336,219	$	309,278	$	668,145	$	603,670
Loan delinquency	Loan delinquency																	Loan delinquency
Current and less than 30 days past due and still accruing	Current and less than 30 days past due and still accruing	$	124,744	$	118,163	$	162,738	$	143,459	$	303,274	$	293,358	$	590,756	$	554,980	Current and less than 30 days past due and still accruing	$	161,138	$	126,083	$	167,082	$	165,415	$	334,237	$	307,511	$	662,457	$	599,009
30–89 days past due and still accruing	30–89 days past due and still accruing	144		331		1,529		1,193		1,395		1,590		3,068		3,114		30–89 days past due and still accruing	215		402		1,317		1,127		1,232		1,015		2,764		2,544
90 or more days past due and still accruing~~(b)~~(c)	90 or more days past due and still accruing~~(b)~~(c)	16		15		282		70		204		121		502		206		90 or more days past due and still accruing~~(b)~~(c)	—		1		219		100		112		53		331		154
Criticized nonaccrual~~(c)~~	Criticized nonaccrual~~(c)~~	235		326		944		969		703		759		1,882		2,054		Criticized nonaccrual~~(c)~~	518		246		1,437		1,018		638		699		2,593		1,963
Total retained loans	Total retained loans	$	125,139	$	118,835	$	165,493	$	145,691	$	305,576	$	295,828	$	596,208	$	560,354	Total retained loans	$	161,871	$	126,732	$	170,055	$	167,660	$	336,219	$	309,278	$	668,145	$	603,670

(a)The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.

(b)Borrowers associated with the First Republic acquisition are predominantly domiciled in the U.S.

(c)Represents loans that are considered well-collateralized and therefore still accruing interest.

~~(c)~~At September 30, 2022 and December 31, 2021 nonaccrual loans excluded $28 million and $127 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA, predominantly in commercial and industrial.

Nonaccrual loans

The following table provides information on retained wholesale nonaccrual loans.


(in millions)	(in millions)	Secured by real estate				Commercial and industrial				Other				Total retained loans				(in millions)	Secured by real estate				Commercial and industrial				Other				Total retained loans
		Sep 30, 2022		Dec 31, 2021		Sep 30, 2022		Dec 31, 2021		Sep 30, 2022		Dec 31, 2021		Sep 30, 2022		Dec 31, 2021			Jun 30, 2023		Dec 31, 2022		Jun 30, 2023		Dec 31, 2022		Jun 30, 2023		Dec 31, 2022		Jun 30, 2023		Dec 31, 2022
Nonaccrual loans	Nonaccrual loans																	Nonaccrual loans
With an allowance	With an allowance	$	164	$	254	$	699	$	604	$	403	$	286	$	1,266	$	1,144	With an allowance	$	281	$	172	$	1,035	$	686	$	340	$	487	$	1,656	$	1,345
Without an allowance(a)	Without an allowance(a)	71		72		245		365		300		473		616		910		Without an allowance(a)	237		74		402		332		298		212		937		618
Total nonaccrual loans(b)	Total nonaccrual loans(b)	$	235	$	326	$	944	$	969	$	703	$	759	$	1,882	$	2,054	Total nonaccrual loans(b)	$	518	$	246	$	1,437	$	1,018	$	638	$	699	$	2,593	$	1,963

(a)When the discounted cash flows or collateral value equals or exceeds the amortized cost of the loan, the loan does not require an allowance. This typically occurs when the loans have been partially charged off and/or there have been interest payments received and applied to the loan balance.

(b)Interest income on nonaccrual loans recognized on a cash basis was not material for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022.

159

Loan modifications

~~Certain~~The Firm grants certain modifications of wholesale loans to borrowers experiencing financial difficulty, which effective January 1, 2023, are reported as FDMs. The following tables provide information about Commercial and industrial and Other loan modifications ~~are~~ considered FDMs.


(in millions)	Commercial and industrial
	Three months ended June 30, 2023					Six months ended June 30, 2023
	Amortized cost basis		% of loan modifications to total retained Commercial and industrial loans		Financial effect of loan modification	Amortized cost basis		% of loan modifications to total retained Commercial and industrial loans		Financial effect of loan modification
Loan modification
Single modifications

Term extension	$	306	0.18	%	Extended loans by a weighted-average of 8 months	$	423	0.25	%	Extended loans by a weighted-average of 10 months

Other-than-insignificant payment delay	5		—	%	Provided payment deferrals with delayed amounts primarily re-amortized over the remaining tenor	5		—	%	Provided payment deferrals with delayed amounts primarily re-amortized over the remaining tenor
Multiple modifications
Interest Rate Reduction and Term Extension	$	1	—	%	Reduced weighted-average contractual interest by -191 bps and extended loans by a weighted-average of 17 months	$	1	—	%	Reduced weighted-average contractual interest by -191 bps and extended loans by a weighted-average of 17 months
Term extension and principal forgiveness	—		—	%		40		0.02	%	Extended loans by a weighted-average of 64 months and reduced amortized cost basis of the loans by $23mm
Total	$	312				$	469


(in millions)	Other
	Three months ended June 30, 2023					Six months ended June 30, 2023
	Amortized cost basis		% of loan modifications to total retained Other loans		Financial effect of loan modification	Amortized cost basis		% of loan modifications to total retained Other loans		Financial effect of loan modification
Loan modification
Single modifications
Interest rate reduction	$	11	—	%	Reduced weighted-average contractual interest by 654 bps	$	11	—	%	Reduced weighted-average contractual interest by 654 bps
Term extension	38		0.01	%	Extended loans by a weighted-average of 3 months	54		0.02	%	Extended loans by a weighted-average of 6 months


Multiple modifications
Payment Delay and Term Extension	$	235	0.07	%	Provided payment deferrals with delayed amounts primarily recaptured at the end of the deferral period and extended loans by a weighted-average of 144 months	$	235	0.07	%	Provided payment deferrals with delayed amounts primarily recaptured at the end of the deferral period and extended loans by a weighted-average of 144 months
Total	$	284				$	300

The following tables provide information on the payment status of Commercial and industrial and Other FDMs during the three and six months ended June 30, 2023.


	Amortized cost basis
	Commercial and industrial				Other
(in millions)	Three months ended June 30, 2023		Six months ended June 30, 2023		Three months ended June 30, 2023		Six months ended June 30, 2023
Current and less than 30 days past due and still accruing	$	242	$	331	$	—	$	—
30-89 days past due and still accruing	—		—		—		—
90 or more days past due and still accruing	3		3		—		—
Criticized nonaccrual	67		135		284		300
Total	$	312	$	469	$	284	$	300

160

The following table provides information on Commercial and industrial FDMs that re-defaulted during the three and six months ended June 30, 2023. There were no Other FDM re-defaults during the three and six months ended June 30, 2023.


(in millions)	Amortized cost basis
	Three months ended June 30, 2023	Six months ended June 30, 2023

Loan modification

Term extension	3	7



Total(a)	3	7

(a)Represents FDMs that were 30 days or more past due

Additional commitments to ~~be TDRs as they provide various concessions~~lend to borrowers ~~who are~~ experiencing financial ~~difficulty. Loans with short-term or other insignificant modifications that are not considered concessions are not TDRs. New TDRs~~difficulty whose Commercial and industrial loans have been modified as FDMs were ~~$108~~$438 million and ~~$180~~$1.3 billion for the three and six months ended June 30, 2023.

There were no additional commitments to lend to borrowers experiencing financial difficulties whose Other loans have been modified as FDMs for the three and six months ended June 30, 2023.

For the three and six months ended June 30, 2023, Secured by real estate FDMs were $77 million ~~for~~and $85 million respectively. The financial effects of FDMs were largely term extensions which extended the loans by a weighted-average of nine months. There were no re-defaults during the three months ended ~~September~~June 30, 2023 and $1 million in modified term extensions that re-defaulted during the six months ended June 30, 2023. There were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs for the three and six months ended June 30, 2023.

Prior to January 1, 2023, certain loan modifications were considered TDRs.

For the three and six months ended June 30, 2022, ~~and 2021, respectively and $587~~new TDRs were $60 million and ~~$832~~$479 million, ~~for the nine months ended September 30, 2022 and 2021,~~ respectively. New TDRs for the three and six months ended ~~September~~June 30, 2022 ~~and 2021~~ reflected ~~extending~~extended maturity dates and covenant waivers primarily in the Commercial and Industrial loan ~~class in 2022 as well as principal deferrals largely in~~class. For the ~~Other loan class in 2021. New TDRs for the nine~~three and six months ended ~~September~~June 30, 2022, ~~and 2021 reflected modifications that included extending maturity dates and covenant waivers for both periods as well as~~ the ~~receipt of assets in partial satisfaction of the loan in 2021 predominantly in the Commercial and Industrial loan class. The~~ impact of these modifications ~~resulting in new TDRs was~~were not material to the ~~Firm for~~Firm.

As a result of the ~~three and nine months ended September 30, 2022 and 2021.~~elimination of the requirement to assess whether a modification is reasonably expected or involves a concession, the population of loans considered FDMs is greater than those previously considered TDRs.

~~The carrying value of TDRs was $852 million and $607 million as of September 30, 2022, and December 31, 2021, respectively.~~

~~150~~161

Note 1213 – Allowance for credit losses

The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments.

On January 1, 2023 the Firm adopted the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance as described in Note 1.

The adoption of this guidance eliminated the requirement to measure the allowance for TDRs using a DCF methodology and allowed the option of a non-DCF portfolio-based approach for modified loans to borrowers experiencing financial difficulty. If a DCF methodology is still applied for these modified loans, the discount rate must be the post-modification effective interest rate, instead of the pre-modification effective interest rate.

The Firm elected to change from an asset-specific allowance approach to its non-DCF, portfolio-based allowance approach for modified loans to troubled borrowers for all portfolios except collateral-dependent loans and nonaccrual risk-rated loans, for which the asset-specific allowance approach will continue to apply.

This guidance was adopted under the modified retrospective method which resulted in a net decrease to the allowance for credit losses of $587 million and an increase to retained earnings of $446 million, after-tax predominantly driven by residential real estate and credit card.

Refer to Note 13 of JPMorgan Chase's ~~2021~~2022 Form 10-K for a detailed discussion of the allowance for credit losses and the related accounting policies.

~~151~~162

Allowance for credit losses and related information

The table below summarizes information about the allowances for credit losses and includes a breakdown of loans and lending-related commitments by impairment methodology. Refer to Note 10 of JPMorgan Chase’s ~~2021~~2022 Form 10-K and Note 910 of this Form 10-Q for further information on the allowance for credit losses on investment securities.


		2022								2021									2023								2022
Nine months ended September 30, (in millions)		Consumer, excluding credit card		Credit card		Wholesale		Total			Consumer, excluding credit card		Credit card		Wholesale		Total
Six months ended June 30, (in millions)																				Six months ended June 30, (in millions)	Consumer, excluding credit card		Credit card		Wholesale		Total		Consumer, excluding credit card		Credit card		Wholesale		Total
Allowance for loan losses	Allowance for loan losses																			Allowance for loan losses
Beginning balance at January 1,	Beginning balance at January 1,	$	1,765	$	10,250	$	4,371	$	16,386		$	3,636	$	17,800	$	6,892	$	28,328		Beginning balance at January 1,	$	2,040	$	11,200	$	6,486	$	19,726	$	1,765	$	10,250	$	4,371	$	16,386
Cumulative effect of a change in accounting principle(a)																				Cumulative effect of a change in accounting principle(a)	(489)		(100)		2		(587)		NA						NA
Gross charge-offs	Gross charge-offs	590		2,294		232		3,116			452		2,957		187		3,596			Gross charge-offs	501		2,432		294		3,227		384		1,505		123		2,012
Gross recoveries collected	Gross recoveries collected	(441)		(616)		(93)		(1,150)			(470)		(724)		(87)		(1,281)			Gross recoveries collected	(247)		(386)		(46)		(679)		(311)		(419)		(43)		(773)
Net charge-offs/(recoveries)	Net charge-offs/(recoveries)	149		1,678		139		1,966			(18)		2,233		100		2,315			Net charge-offs/(recoveries)	254		2,046		248		2,548		73		1,086		80		1,239
Provision for loan losses	Provision for loan losses	202		1,828		1,733		3,763			(1,778)		(3,917)		(2,162)		(7,857)			Provision for loan losses	751		2,546		2,067		5,364		237		1,236		1,125		2,598
Other	Other	1		—		1		2			(2)		—		(4)		(6)			Other	—		—		25		25		—		—		5		5
Ending balance at September 30		$	1,819	$	10,400	$	5,966	$	18,185		$	1,874	$	11,650	$	4,626	$	18,150
Ending balance at June 30,																				Ending balance at June 30,	$	2,048	$	11,600	$	8,332	$	21,980	$	1,929	$	10,400	$	5,421	$	17,750
Allowance for lending-related commitments	Allowance for lending-related commitments																			Allowance for lending-related commitments
Beginning balance at January 1,	Beginning balance at January 1,	$	113	$	—	$	2,148	$	2,261		$	187	$	—	$	2,222	$	2,409		Beginning balance at January 1,	$	76	$	—	$	2,306	$	2,382	$	113	$	—	$	2,148	$	2,261
Provision for lending-related commitments	Provision for lending-related commitments	(36)		—		325		289			(45)		—		(61)		(106)			Provision for lending-related commitments	52		—		(253)		(201)		(2)		—		(37)		(39)
Other	Other	—		—		1		1			—		—		2		2			Other	1		—		4		5		(1)		—		1		—
Ending balance at September 30		$	77	$	—	$	2,474	$	2,551		$	142	$	—	$	2,163	$	2,305
Ending balance at June 30,																				Ending balance at June 30,	$	129	$	—	$	2,057	$	2,186	$	110	$	—	$	2,112	$	2,222
Total allowance for investment securities	Total allowance for investment securities	NA						61			NA						73			Total allowance for investment securities							104		NA						47
Total allowance for credit losses(a)		$	1,896	$	10,400	$	8,440	$	20,797		$	2,016	$	11,650	$	6,789	$	20,528
Total allowance for credit losses(b)(c)																				Total allowance for credit losses(b)(c)	$	2,177	$	11,600	$	10,389	$	24,270	$	2,039	$	10,400	$	7,533	$	20,019
Allowance for loan losses by impairment methodology	Allowance for loan losses by impairment methodology																			Allowance for loan losses by impairment methodology
Asset-specific(b)		$	(702)	$	218	$	450	$	(34)		$	(571)	$	383	$	357	$	169
Asset-specific(d)																				Asset-specific(d)	$	(971)	$	—	$	478	$	(493)	$	(676)	$	227	$	332	$	(117)
Portfolio-based	Portfolio-based	2,521		10,182		5,516		18,219			2,445		11,267		4,269		17,981			Portfolio-based	3,019		11,600		7,854		22,473		2,605		10,173		5,089		17,867
Total allowance for loan losses	Total allowance for loan losses	$	1,819	$	10,400	$	5,966	$	18,185		$	1,874	$	11,650	$	4,626	$	18,150		Total allowance for loan losses	$	2,048	$	11,600	$	8,332	$	21,980	$	1,929	$	10,400	$	5,421	$	17,750

Loans by impairment methodology	Loans by impairment methodology																			Loans by impairment methodology
Asset-specific(b)		$	12,218	$	794	$	2,282	$	15,294		$	14,464	$	1,083	$	2,330	$	17,877
Asset-specific(d)																				Asset-specific(d)	$	3,439	$	—	$	2,587	$	6,026	$	12,683	$	827	$	2,408	$	15,918
Portfolio-based	Portfolio-based	289,185		169,668		593,926		1,052,779			283,844		142,083		530,456		956,383			Portfolio-based	392,756		191,348		665,558		1,249,662		289,948		164,667		581,857		1,036,472
Total retained loans	Total retained loans	$	301,403	$	170,462	$	596,208	$	1,068,073		$	298,308	$	143,166	$	532,786	$	974,260		Total retained loans	$	396,195	$	191,348	$	668,145	$	1,255,688	$	302,631	$	165,494	$	584,265	$	1,052,390
Collateral-dependent loans	Collateral-dependent loans																			Collateral-dependent loans
Net charge-offs	Net charge-offs	$	(29)	$	—	$	13	$	(16)		$	26	$	—	$	9	$	35		Net charge-offs	$	5	$	—	$	77	$	82	$	(15)	$	—	$	8	$	(7)
Loans measured at fair value of collateral less cost to sell	Loans measured at fair value of collateral less cost to sell	3,718		—		537		4,255			4,460		—		364		4,824			Loans measured at fair value of collateral less cost to sell	3,388		—		762		4,150		3,935		—		607		4,542
Allowance for lending-related commitments by impairment methodology	Allowance for lending-related commitments by impairment methodology																			Allowance for lending-related commitments by impairment methodology
Asset-specific	Asset-specific	$	—	$	—	$	84	$	84		$	—	$	—	$	129	$	129		Asset-specific	$	—	$	—	$	65	$	65	$	—	$	—	$	78	$	78
Portfolio-based	Portfolio-based	77		—		2,390		2,467			142		—		2,034		2,176			Portfolio-based	129		—		1,992		2,121		110		—		2,034		2,144
Total allowance for lending-related commitments(c)		$	77	$	—	$	2,474	$	2,551		$	142	$	—	$	2,163	$	2,305
Total allowance for lending-related commitments(e)																				Total allowance for lending-related commitments(e)	$	129	$	—	$	2,057	$	2,186	$	110	$	—	$	2,112	$	2,222
Lending-related commitments by impairment methodology	Lending-related commitments by impairment methodology																			Lending-related commitments by impairment methodology
Asset-specific	Asset-specific	$	—	$	—	$	470	$	470		$	—	$	—	$	641	$	641		Asset-specific	$	—	$	—	$	332	$	332	$	—	$	—	$	397	$	397
Portfolio-based(d)		22,259		—		452,530		474,789			36,819		—		457,548		494,367
Portfolio-based(f)																				Portfolio-based(f)	32,428		—		521,408		553,836		26,809		—		458,038		484,847
Total lending-related commitments	Total lending-related commitments	$	22,259	$	—	$	453,000	$	475,259		$	36,819	$	—	$	458,189	$	495,008		Total lending-related commitments	$	32,428	$	—	$	521,740	$	554,168	$	26,809	$	—	$	458,435	$	485,244

(a)Represents the impact to the allowance for loan losses upon the adoption of the Financial Instruments - Credit Losses: Troubled Debt Restructuringsaccounting guidance.

(b)At ~~September~~June 30, ~~2022 excludes~~2023, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $18 million associated with certain accounts receivable in CIB.

(c)As of June 30, 2023 included $1.2 billion allowance for credit losses associated with ~~certain accounts receivable in CIB of $30 million.~~the First Republic acquisition.

~~(b)~~(d)Includes ~~collateral dependent~~collateral-dependent loans, including ~~those considered TDRs and~~ those for which foreclosure is deemed probable, ~~modified PCD loans~~ and ~~non-collateral dependent loans that have been modified or are reasonably expected to be modified in a TDR. Also includes~~nonaccrual risk-rated loans ~~that have been placed on nonaccrual status~~ for ~~the wholesale portfolio segment. The asset-specific allowance for credit card loans modified,~~all periods presented. Prior periods also include non collateral-dependent TDRs or reasonably expected ~~to be~~TDRs and modified ~~in a TDR is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.~~PCD loans.

~~(c)~~(e)The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets.

~~(d)~~(f)At ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, lending-related commitments excluded ~~$12.6~~$18.4 billion and ~~$19.9~~$13.7 billion, respectively, for the consumer, excluding credit card portfolio segment; ~~$798.9~~$881.5 billion and ~~$710.6~~$774.0 billion, respectively, for the credit card portfolio segment; and ~~$20.0~~$19.3 billion and ~~$41.0~~$29.1 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments. Prior period amount for wholesale lending-related commitments, including the amount not subject to allowance, has been revised to conform with the current presentation.

~~152~~163

Discussion of changes in the allowance

The net addition to the ~~wholesale~~ allowance ~~resulted from:~~for credit losses included $1.5 billion, consisting of:

•~~loan growth~~$819 million in wholesale, predominantly driven by net downgrade activity, updates to certain assumptions related to office real estate in CB ~~and CIB, and~~

•~~changes to the Firm's macroeconomic forecast reflecting~~

–~~updates to the Firm's macroeconomic scenarios including an increasing forecasted unemployment rate and deterioration~~ in the ~~equity market indices,~~second quarter of 2023, and

•$649 million in ~~monetary policy, and geopolitical risks, including the war in Ukraine.~~

The net addition also included $1.2 billion to establish the allowance for ~~loan~~the First Republic loans and lending-related commitments in the second quarter of 2023.

The Firm’s central case assumptions reflected U.S. unemployment rates and U.S. real GDP as follows:


		Assumptions at September 30, 2022							Assumptions at June 30, 2023
		4Q22		2Q23		4Q23			4Q23		2Q24		4Q24
U.S. unemployment rate(a)	U.S. unemployment rate(a)	3.8	%	3.9	%	3.9	%	U.S. unemployment rate(a)	4.2	%	4.9	%	5.0	%
YoY growth in U.S. real GDP(b)	YoY growth in U.S. real GDP(b)	—	%	1.4	%	1.2	%	YoY growth in U.S. real GDP(b)	0.5	%	—	%	1.0	%

		Assumptions at December 31, 2021							Assumptions at December 31, 2022
		2Q22		4Q22		2Q23			2Q23		4Q23		2Q24
U.S. unemployment rate(a)	U.S. unemployment rate(a)	4.2	%	4.0	%	3.9	%	U.S. unemployment rate(a)	3.8	%	4.3	%	5.0	%
YoY growth in U.S. real GDP(b)	YoY growth in U.S. real GDP(b)	3.1	%	2.8	%	2.1	%	YoY growth in U.S. real GDP(b)	1.5	%	0.4	%	—	%

(a)Reflects quarterly average of forecasted U.S. unemployment rate.

Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.

Refer to Note 13 and Note 10 of JPMorgan ~~Chase's 2021~~Chase’s 2022 Form 10-K for a description of the policies, methodologies and judgments used to determine the Firm’s ~~allowances~~allowance for credit losses on loans, lending-related commitments, and investment securities.

Refer to Critical Accounting Estimates Used by the Firm on pages ~~85-87~~91-93 for further information on the allowance for credit losses and related management judgments.

~~153~~164

Note 1314 – Variable interest entities

Refer to Note 1 and Note 14 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further description of ~~JPMorgan Chase’s~~the Firm's accounting policies ~~regarding consolidation of~~and involvement with VIEs. ~~Refer to Note 14 of JPMorgan Chase's 2021 Form 10-K for a detailed discussion of VIEs, including the Firm’s accounting policies regarding securitizations.~~

The following table summarizes the most significant types of Firm-sponsored VIEs by business segment. The Firm considers a “Firm-sponsored” VIE to include any entity where: (1) JPMorgan Chase is the primary beneficiary of the structure; (2) the VIE is used by JPMorgan Chase to securitize Firm assets; (3) the VIE issues financial instruments with the JPMorgan Chase name; or (4) the entity is a JPMorgan Chase–administered asset-backed commercial paper conduit.

Line of Business

Transaction Type

Activity

Form 10-Q page references

CCB

Credit card securitization trusts

Securitization of originated credit card receivables

~~154~~165

Mortgage securitization trusts

Servicing and securitization of both originated and purchased residential mortgages

~~154-156~~165-167

CIB

Mortgage and other securitization trusts

Securitization of both originated and purchased residential and commercial mortgages, and other consumer loans

~~154-156~~165-167

Multi-seller conduits

Assisting clients in accessing the financial markets in a cost-efficient manner and structuring transactions to meet investor needs

~~156~~167

Municipal bond vehicles

Financing of municipal bond investments

~~156~~167

The Firm also invests in and provides financing and other services to VIEs sponsored by third parties. Refer to pages ~~157-159~~168-169 of this Note for more information on consolidated VIE assets and liabilities as well as the VIEs sponsored by third parties.

Significant Firm-sponsored VIEs

Credit card securitizations

As a result of the Firm’s continuing involvement, the Firm is considered to be the primary beneficiary of its Firm-sponsored credit card securitization trust, the Chase Issuance Trust.

Firm-sponsored mortgage and other securitization trusts

The Firm securitizes (or has securitized) originated and purchased residential mortgages, commercial mortgages and other consumer loans primarily in its CCB and CIB businesses. Depending on the particular transaction, as well as the respective business involved, the Firm may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts.

~~154~~165

The following tables present the total unpaid principal amount of assets held in Firm-sponsored private-label securitization entities, including those in which the Firm has continuing involvement, and those that are consolidated by the Firm. Continuing involvement includes servicing the loans, holding senior interests or subordinated interests (including amounts required to be held pursuant to credit

risk retention rules), recourse or guarantee arrangements, and derivative contracts. In certain instances, the Firm’s only continuing involvement is servicing the loans. The Firm’s maximum loss exposure from retained and purchased interests is the carrying value of these interests.


		Principal amount outstanding						JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)									Principal amount outstanding						JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
September 30, 2022 (in millions)		Total assets held by securitization VIEs		Assets held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets		Investment securities		Other financial assets		Total interests held by JPMorgan Chase
June 30, 2023 (in millions)																June 30, 2023 (in millions)	Total assets held by securitization VIEs		Assets held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets		Investment securities		Other financial assets		Total interests held by JPMorgan Chase
Securitization-related(a)	Securitization-related(a)															Securitization-related(a)
Residential mortgage:	Residential mortgage:															Residential mortgage:
Prime/Alt-A and option ARMs	Prime/Alt-A and option ARMs	$	56,227	$	776	$	47,632	$	645	$	1,881	$	—	$	2,526	Prime/Alt-A and option ARMs	$	56,604	$	715	$	38,439	$	681	$	2,060	$	23	$	2,764
Subprime	Subprime	10,063		—		4,589		6		—		—		6		Subprime	9,300		—		1,353		4				—		4
Commercial and other(b)	Commercial and other(b)	164,009		—		119,387		587		5,282		643		6,512		Commercial and other(b)	162,779		—		127,826		893		5,443		668		7,004
Total	Total	$	230,299	$	776	$	171,608	$	1,238	$	7,163	$	643	$	9,044	Total	$	228,683	$	715	$	167,618	$	1,578	$	7,503	$	691	$	9,772


		Principal amount outstanding						JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)									Principal amount outstanding						JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
December 31, 2021 (in millions)		Total assets held by securitization VIEs		Assets held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets		Investment securities		Other financial assets		Total interests held by JPMorgan Chase
December 31, 2022 (in millions)																December 31, 2022 (in millions)	Total assets held by securitization VIEs		Assets held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets		Investment securities		Other financial assets		Total interests held by JPMorgan Chase
Securitization-related(a)	Securitization-related(a)															Securitization-related(a)
Residential mortgage:	Residential mortgage:															Residential mortgage:
Prime/Alt-A and option ARMs	Prime/Alt-A and option ARMs	$	55,085	$	942	$	47,029	$	974	$	684	$	95	$	1,753	Prime/Alt-A and option ARMs	$	55,362	$	754	$	37,058	$	744	$	1,918	$	—	$	2,662
Subprime	Subprime	10,966		27		10,115		2		—		—		2		Subprime	9,709		—		1,743		10		—		—		10
Commercial and other(b)	Commercial and other(b)	150,694		—		93,698		671		3,274		506		4,451		Commercial and other(b)	164,915		—		127,037		888		5,373		670		6,931
Total	Total	$	216,745	$	969	$	150,842	$	1,647	$	3,958	$	601	$	6,206	Total	$	229,986	$	754	$	165,838	$	1,642	$	7,291	$	670	$	9,603

(a)Excludes U.S. GSEs and government agency securitizations and re-securitizations, which are not Firm-sponsored.

(b)Consists of securities backed by commercial real estate loans and non-mortgage-related consumer receivables.

(c)Excludes the following: retained servicing; securities retained from loan sales and securitization activity related to U.S. GSEs and government agencies; interest rate and foreign exchange derivatives primarily used to manage interest rate and foreign exchange risks of securitization entities; senior securities of $104 million and $134 million at June 30, 2023 and December 31, 2022, respectively, and subordinated securities ~~of $252~~which were $92 million and ~~$159~~$34 million ~~respectively,~~ at ~~September~~June 30, ~~2022,~~2023 and ~~$145 million and $36 million, respectively, at~~ December 31, ~~2021,~~2022, respectively, which the Firm purchased in connection with CIB’s secondary market-making activities.

(d)Includes interests held in re-securitization transactions.

(e)As of ~~September~~both June 30, ~~2022~~2023 and December 31, ~~2021, 86% and 79%, respectively,~~2022, 84% of the Firm’s retained securitization interests, which are predominantly carried at fair value and include amounts required to be held pursuant to credit risk retention rules, were risk-rated “A” or better, on an S&P-equivalent basis. The retained interests in prime residential mortgages consisted of ~~$2.5~~$2.7 billion and ~~$1.6~~$2.6 billion of investment-grade retained interests at June 30, 2023 and ~~$26 million~~December 31, 2022, respectively, and ~~$131 million of~~ noninvestment-grade retained interests were not material at ~~September~~both June 30, ~~2022,~~2023 and December 31, ~~2021, respectively.~~2022. The retained interests in commercial and other securitization trusts consisted of ~~$5.4~~$5.9 billion and ~~$3.5~~$5.8 billion of investment-grade retained interests at June 30, 2023 and December 31, 2022 respectively, and $1.1 billion ~~and $929 million~~ of noninvestment-grade retained interests at ~~September~~both June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively.

~~155~~166

Residential mortgage

The Firm securitizes residential mortgage loans originated by CCB, as well as residential mortgage loans purchased from third parties by either CCB or CIB.

Commercial mortgages and other consumer securitizations

CIB originates and securitizes commercial mortgage loans, and engages in underwriting and trading activities involving the securities issued by securitization trusts.

Re-securitizations

The following table presents the principal amount of securities transferred to re-securitization VIEs.


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Transfers of securities to VIEs	Transfers of securities to VIEs									Transfers of securities to VIEs

U.S. GSEs and government agencies	U.S. GSEs and government agencies	$	1,417	$	11,258	$	14,866	$	43,157	U.S. GSEs and government agencies	$	6,261	$	7,373	$	9,667	$	13,449

The Firm did not transfer any private label securities to re-securitization VIEs during the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively and retained interests in any such Firm-sponsored VIEs as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021~~2022 were not material.

The following table presents information on the Firm's interests in nonconsolidated re-securitization VIEs.

Nonconsolidated
re-securitization VIEs

(in millions)

September 30, 2022

December 31, 2021

(in millions)

June 30, 2023

December 31, 2022

U.S. GSEs and government agencies

Interest in VIEs

2,138

1,947

Interest in VIEs

3,412

2,580

As of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, the Firm did not consolidate any U.S. GSE and government agency re-securitization VIEs or any Firm-sponsored private-label re-securitization VIEs.

Multi-seller conduits

In the normal course of business, JPMorgan Chase makes markets in and invests in commercial paper issued by the Firm-administered multi-seller conduits. The Firm held ~~$12.5~~$12.4 billion and ~~$13.7~~$13.8 billion of the commercial paper issued by the Firm-administered multi-seller conduits at ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, respectively, which have been eliminated in consolidation. The Firm’s investments reflect the Firm’s funding needs and capacity and were not driven by market illiquidity. Other than the amounts required to be held pursuant to credit risk retention rules, the Firm is not obligated under any agreement to purchase the commercial paper issued by the Firm-administered multi-seller conduits.

Deal-specific liquidity facilities, program-wide liquidity and credit enhancement provided by the Firm have been eliminated in consolidation. The Firm or the Firm-administered multi-seller conduits provide lending-related commitments to certain clients of the Firm-administered multi-seller conduits. The unfunded commitments were ~~$11.5~~$11.3 billion and ~~$13.4~~$10.6 billion at ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, respectively, and are reported as off-balance sheet lending-related commitments in other unfunded commitments to extend credit. Refer to Note 2224 for more information on off-balance sheet lending-related commitments.

Municipal bond vehicles

Municipal bond vehicles or tender option bond (“TOB”) trusts allow institutions to finance their municipal bond investments at short-term rates. TOB transactions are known as customer TOB trusts and non-customer TOB trusts. Customer TOB trusts are sponsored by a third party.

The Firm serves as sponsor for all non-customer TOB transactions.

~~156~~167

Consolidated VIE assets and liabilities

The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of ~~September~~June 30, ~~2022,~~2023 and December 31, ~~2021.~~2022.


		Assets									Liabilities							Assets									Liabilities
September 30, 2022 (in millions)		Trading assets		Loans			Other(c)		Total assets(d)		Beneficial interests in VIE assets(e)		Other(f)		Total liabilities
June 30, 2023 (in millions)																	June 30, 2023 (in millions)	Trading assets		Loans			Other(c)		Total assets(d)		Beneficial interests in VIE assets(e)		Other(f)		Total liabilities
VIE program type	VIE program type																VIE program type
Firm-sponsored credit card trusts	Firm-sponsored credit card trusts	$	—	$	9,186		$	93	$	9,279	$	1,996	$	3	$	1,999	Firm-sponsored credit card trusts	$	—	$	9,168		$	82	$	9,250	$	999	$	2	$	1,001
Firm-administered multi-seller conduits	Firm-administered multi-seller conduits	—		20,803			134		20,937		8,500		40		8,540		Firm-administered multi-seller conduits	1		28,598			169		28,768		16,383		31		16,414
Municipal bond vehicles	Municipal bond vehicles	1,991		—			7		1,998		1,436		5		1,441		Municipal bond vehicles	2,313		—			21		2,334		2,133		10		2,143
Mortgage securitization entities(a)	Mortgage securitization entities(a)	—		798			12		810		147		69		216		Mortgage securitization entities(a)	—		733			10		743		132		60		192
Other	Other	—		810		(b)	316		1,126		—		157				Other	54		626		(b)	250		930		—		144
Total	Total	$	1,991	$	31,597		$	562	$	34,150	$	12,079	$	274	$	12,353	Total	$	2,368	$	39,125		$	532	$	42,025	$	19,647	$	247	$	19,894

		Assets									Liabilities							Assets									Liabilities
December 31, 2021 (in millions)		Trading assets		Loans			Other(c)		Total assets(d)		Beneficial interests in VIE assets(e)		Other(f)		Total liabilities
December 31, 2022 (in millions)																	December 31, 2022 (in millions)	Trading assets		Loans			Other(c)		Total assets(d)		Beneficial interests in VIE assets(e)		Other(f)		Total liabilities
VIE program type	VIE program type																VIE program type
Firm-sponsored credit card trusts	Firm-sponsored credit card trusts	$	—	$	11,108		$	102	$	11,210	$	2,397	$	1	$	2,398	Firm-sponsored credit card trusts	$	—	$	9,699		$	100	$	9,799	$	1,999	$	2	$	2,001
Firm-administered multi-seller conduits	Firm-administered multi-seller conduits	1		19,883			71		19,955		6,198		41		6,239		Firm-administered multi-seller conduits	—		22,819			170		22,989		9,236		39		9,275
Municipal bond vehicles	Municipal bond vehicles	2,009		—			2		2,011		1,976		—		1,976		Municipal bond vehicles	2,089		—			7		2,096		1,232		10		1,242
Mortgage securitization entities(a)	Mortgage securitization entities(a)	—		955			32		987		179		85		264		Mortgage securitization entities(a)	—		781			10		791		143		67		210
Other	Other	—		1,078		(b)	283		1,361		—		118				Other	62		1,112		(b)	263		1,437		—		161
Total	Total	$	2,010	$	33,024		$	490	$	35,524	$	10,750	$	245	$	10,995	Total	$	2,151	$	34,411		$	550	$	37,112	$	12,610	$	279	$	12,889

(a)Includes residential ~~and commercial~~ mortgage securitizations.

(b)Primarily includes purchased supply chain finance receivables and purchased auto loan securitizations in CIB.

(c)Includes assets classified as cash and other assets on the Consolidated balance sheets.

(d)The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The assets and liabilities include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation.

(e)The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified in the line item on the Consolidated balance sheets titled, “Beneficial interests issued by consolidated VIEs”. The holders of these beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. Included in beneficial interests in VIE assets are long-term beneficial interests of $1.1 billion and $2.1 billion ~~and $2.6 billion~~ at ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, respectively.

(f)Includes liabilities classified as accounts payable and other liabilities on the Consolidated balance sheets.

VIEs sponsored by third parties

The Firm enters into transactions with VIEs structured by other parties. These include, for example, acting as a derivative counterparty, liquidity provider, investor, underwriter, placement agent, remarketing agent, trustee or custodian. These transactions are conducted at arm’s-length, and individual credit decisions are based on the analysis of the specific VIE, taking into consideration the quality of the underlying assets. Where the Firm does not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, or a variable interest that could potentially be significant, the Firm generally does not consolidate the VIE, but it records and reports these positions on its Consolidated balance sheets in the same manner it would record and report positions in respect of any other third-party transaction.

Tax credit vehicles

The Firm holds investments in unconsolidated tax credit vehicles, which are limited partnerships and similar entities that own and operate affordable housing, energy, and other projects. These entities are primarily considered VIEs. A third party is typically the general partner or managing

member and has control over the significant activities of the tax credit vehicles, and accordingly the Firm does not consolidate tax credit vehicles. The Firm generally invests in these partnerships as a limited partner and earns a return primarily through the receipt of tax credits allocated to the projects. The maximum loss exposure, represented by equity investments and funding commitments, was ~~$27.6~~$32.4 billion and ~~$26.8~~$30.2 billion at June 30, 2023, and December 31, 2022, of which ~~$10.0~~$12.6 billion and ~~$9.4~~$10.6 billion was unfunded at ~~September~~June 30, ~~2022~~2023, and December 31, ~~2021,~~2022, respectively. The Firm assesses each project and to reduce the risk of loss, may withhold varying amounts of its capital investment until the project qualifies for tax credits. Refer to Note 25 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further information on affordable housing tax credits and Note 2224 of this Form 10-Q for more information on off-balance sheet lending-related commitments.

~~157~~168

Customer municipal bond vehicles (TOB trusts)

The Firm may provide various services to customer TOB trusts, including remarketing agent, liquidity or tender option provider. In certain customer TOB transactions, the Firm, as liquidity provider, has entered into a reimbursement agreement with the Residual holder.

In those transactions, upon the termination of the vehicle, the Firm has recourse to the third-party Residual holders for any shortfall. The Firm does not have any intent to protect Residual holders from potential losses on any of the underlying municipal bonds. The Firm does not consolidate customer TOB trusts, since the Firm does not have the

power to make decisions that significantly impact the economic performance of the municipal bond vehicle.

The Firm’s maximum exposure as a liquidity provider to customer TOB trusts at ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021~~2022 was ~~$6.2~~$5.9 billion and ~~$6.8~~$5.8 billion, respectively. The fair value of assets held by such VIEs at ~~September~~both June 30, ~~2022~~2023 and December 31, ~~2021~~2022 was $8.2 ~~billion and $10.5 billion, respectively.~~billion.

Loan securitizations

The Firm has securitized and sold a variety of loans, including residential mortgages, credit card receivables, commercial mortgages and other consumer loans.

Securitization activity

The following table provides information related to the Firm’s securitization activities for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, related to assets held in Firm-sponsored securitization entities that were not consolidated by the Firm, and where sale accounting was achieved at the time of the securitization.


		Three months ended September 30,								Nine months ended September 30,									Three months ended June 30,								Six months ended June 30,
		2022				2021				2022				2021					2023				2022				2023				2022
(in millions)	(in millions)	Residential mortgage(d)		Commercial and other(e)		Residential mortgage(d)		Commercial and other(e)		Residential mortgage(d)		Commercial and other(e)		Residential mortgage(d)		Commercial and other(e)		(in millions)	Residential mortgage(d)		Commercial and other(e)		Residential mortgage(d)		Commercial and other(e)		Residential mortgage(d)		Commercial and other(e)		Residential mortgage(d)		Commercial and other(e)
Principal securitized	Principal securitized	$	386	$	1,297	$	8,245	$	4,426	$	9,909	$	8,355	$	16,437	$	9,214	Principal securitized	$	2,216	$	376	$	3,028	$	3,950	$	3,289	$	376	$	9,523	$	7,058
All cash flows during the period:(a)	All cash flows during the period:(a)																	All cash flows during the period:(a)
Proceeds received from loan sales as financial instruments(b)(c)	Proceeds received from loan sales as financial instruments(b)(c)	$	375	$	1,278	$	8,424	$	4,456	$	9,504	$	8,253	$	16,876	$	9,335	Proceeds received from loan sales as financial instruments(b)(c)	$	2,123	$	380	$	2,754	$	3,869	$	3,153	$	380	$	9,129	$	6,975
Servicing fees collected	Servicing fees collected	12		—		39		—		56		—		121		—		Servicing fees collected	6		1		20		—		12		1		44		—
Cash flows received on interests	Cash flows received on interests	131		71		121		92		413		196		477		215		Cash flows received on interests	86		91		127		54		160		178		282		125

(a)Excludes re-securitization transactions.

(b)Predominantly includes Level 2 assets.

(c)The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.

(d)Represents prime mortgages. Excludes loan securitization activity related to U.S. GSEs and government agencies.

(e)Includes commercial mortgage and other consumer loans.

Loans and excess MSRs sold to U.S. government-sponsored

enterprises and loans in securitization transactions pursuant to

Ginnie Mae guidelines

In addition to the amounts reported in the securitization activity tables above, the Firm, in the normal course of business, sells originated and purchased mortgage loans and certain originated excess MSRs on a nonrecourse basis, predominantly to U.S. GSEs. These loans and excess MSRs are sold primarily for the purpose of securitization by the U.S. GSEs, who provide certain guarantee provisions (e.g., credit enhancement of the loans). The Firm also sells loans into securitization transactions pursuant to Ginnie Mae guidelines; these loans are typically insured or guaranteed by another U.S. government agency. The Firm does not consolidate the securitization vehicles underlying these transactions as it is not the primary beneficiary. For a limited number of loan sales, the Firm is obligated to share

a portion of the credit risk associated with the sold loans with the purchaser. Refer to Note 2224 of this Form 10-Q for additional information about the Firm’s loan sales- and securitization-related indemnifications and Note 1415 for additional information about the impact of the Firm’s sale of certain excess MSRs.

~~158~~169

The following table summarizes the activities related to loans sold to the U.S. GSEs, and loans in securitization transactions pursuant to Ginnie Mae guidelines.


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Carrying value of loans sold	Carrying value of loans sold	$	9,501	$	29,033	$	43,890	$	76,639	Carrying value of loans sold	$	6,323	$	10,721	$	9,021	$	34,389
Proceeds received from loan sales as cash	Proceeds received from loan sales as cash	2		70		15		110		Proceeds received from loan sales as cash	33		4		40		13
Proceeds from loan sales as securities(a)(b)	Proceeds from loan sales as securities(a)(b)	9,352		28,549		43,161		75,331		Proceeds from loan sales as securities(a)(b)	6,220		10,551		8,882		33,809
Total proceeds received from loan sales(c)	Total proceeds received from loan sales(c)	$	9,354	$	28,619	$	43,176	$	75,441	Total proceeds received from loan sales(c)	$	6,253	$	10,555	$	8,922	$	33,822
Gains/(losses) on loan sales(d)(e)	Gains/(losses) on loan sales(d)(e)	$	(25)	$	—	$	(25)	$	4	Gains/(losses) on loan sales(d)(e)	$	—	$	—	$	—	$	—

(a)Includes securities from U.S. GSEs and Ginnie Mae that are generally sold shortly after receipt or retained as part of the Firm’s investment securities portfolio.

(b)Included in level 2 assets.

(c)Excludes the value of MSRs retained upon the sale of loans.

(d)Gains/(losses) on loan sales include the value of MSRs.

(e)The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.

Options to repurchase delinquent loans

In addition to the Firm’s obligation to repurchase certain loans due to material breaches of representations and warranties as discussed in Note ~~22,~~24, the Firm also has the option to repurchase delinquent loans that it services for Ginnie Mae loan pools, as well as for other U.S. government

agencies under certain arrangements. The Firm typically elects to repurchase delinquent loans from Ginnie Mae loan pools as it continues to service them and/or manage the foreclosure process in accordance with the applicable requirements, and such loans continue to be insured or guaranteed. When the Firm’s repurchase option becomes exercisable, such loans must be reported on the Consolidated balance sheets as a loan with a corresponding liability. Refer to Note 1112 for additional information.

The following table presents loans the Firm repurchased or had an option to repurchase, real estate owned, and foreclosed government-guaranteed residential mortgage loans recognized on the Firm’s Consolidated balance sheets as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021.~~2022. Substantially all of these loans and real estate are insured or guaranteed by U.S. government agencies.


(in millions)	(in millions)	September 30, 2022		December 31, 2021		(in millions)	June 30, 2023		December 31, 2022
Loans repurchased or option to repurchase(a)	Loans repurchased or option to repurchase(a)	$	877	$	1,022	Loans repurchased or option to repurchase(a)	$	752	$	839
Real estate owned	Real estate owned	9		5		Real estate owned	9		10
Foreclosed government-guaranteed residential mortgage loans(b)	Foreclosed government-guaranteed residential mortgage loans(b)	26		36		Foreclosed government-guaranteed residential mortgage loans(b)	23		27

(a)Predominantly all of these amounts relate to loans that have been repurchased from Ginnie Mae loan pools.

(b)Relates to voluntary repurchases of loans, which are included in accrued interest and accounts receivable.

Loan delinquencies and liquidation losses

The table below includes information about components of and delinquencies related to nonconsolidated securitized financial assets held in Firm-sponsored private-label securitization entities, in which the Firm has continuing involvement as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021.~~2022.


										Net liquidation losses/(recoveries)																	Net liquidation losses/(recoveries)
		Securitized assets				90 days past due				Three months ended September 30,				Nine months ended September 30,					Securitized assets				90 days past due				Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	Sep 30, 2022		Dec 31, 2021		Sep 30, 2022		Dec 31, 2021		2022		2021		2022		2021		(in millions)	June 30, 2023		December 31, 2022		June 30, 2023		December 31, 2022		2023		2022		2023		2022
Securitized loans	Securitized loans																	Securitized loans
Residential mortgage:	Residential mortgage:																	Residential mortgage:
Prime / Alt-A & option ARMs	Prime / Alt-A & option ARMs	$	47,632	$	47,029	$	1,384	$	2,466	$	(5)	$	—	$	(32)	$	14	Prime / Alt-A & option ARMs	$	38,439	$	37,058	$	482	$	511	$	3	$	(21)	$	10	$	(27)
Subprime	Subprime	4,589		10,115		613		1,609		(1)		—		(4)		18		Subprime	1,353		1,743		141		212		2		(3)		4		(3)
Commercial and other	Commercial and other	119,387		93,698		950		1,456		11		244		22		265		Commercial and other	127,826		127,037		1,231		948		—		5		19		11
Total loans securitized	Total loans securitized	$	171,608	$	150,842	$	2,947	$	5,531	$	5	$	244	$	(14)	$	297	Total loans securitized	$	167,618	$	165,838	$	1,854	$	1,671	$	5	$	(19)	$	33	$	(19)

~~159~~170

Note 1415 – Goodwill and Mortgage servicing rights

Refer to Note 15 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a discussion of the accounting policies related to goodwill and mortgage servicing rights.

Goodwill

The following table presents goodwill attributed to the reportable business segments and Corporate.


(in millions)	(in millions)	September 30, 2022		December 31, 2021		(in millions)	June 30, 2023		December 31, 2022
Consumer & Community Banking	Consumer & Community Banking	$	32,120	$	31,474	Consumer & Community Banking	$	32,116	$	32,121
Corporate & Investment Bank	Corporate & Investment Bank	7,909		7,906		Corporate & Investment Bank	8,253		8,008
Commercial Banking	Commercial Banking	2,985		2,986		Commercial Banking	2,985		2,985
Asset & Wealth Management	Asset & Wealth Management	7,847		7,222		Asset & Wealth Management	8,344		7,902
Corporate	Corporate	600		727		Corporate	682		646
Total goodwill	Total goodwill	$	51,461	$	50,315	Total goodwill	$	52,380	$	51,662

The following table presents changes in the carrying amount of goodwill.


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Balance at beginning of period	Balance at beginning of period	$	50,697	$	49,256	$	50,315	$	49,248	Balance at beginning of period	$	52,144	$	50,298	$	51,662	$	50,315
Changes during the period from:	Changes during the period from:									Changes during the period from:
Business combinations(a)	Business combinations(a)	882		1,065		1,352		1,065		Business combinations(a)	236		470		687		470
Other(b)	Other(b)	(118)		(8)		(206)		—		Other(b)	—		(71)		31		(88)
Balance at September 30,		$	51,461	$	50,313	$	51,461	$	50,313
Balance at June 30,										Balance at June 30,	$	52,380	$	50,697	$	52,380	$	50,697

(a)For the three and ~~nine~~six months ended ~~September~~June 30, 2023, represents estimated goodwill associated with the acquisition of Aumni Inc. in CIB in the second quarter, and the acquisition of the remaining 51% interest in CIFM in AWM in the first quarter. For the three and six months ended June 30, 2022, represents estimated goodwill associated with the acquisitions of ~~Global Shares PLC in AWM and Figg, Inc. in CCB in the third quarter, and~~ Frosch Travel Group, LLC in CCB and Volkswagen Payments S.A. in CIB in the second quarter. For the three and nine months ended September 30, 2021, represents estimated goodwill associated with the acquisitions of Nutmeg in Corporate, OpenInvest and Campbell Global in AWM and Frank in CCB.CIB.

(b)~~Primarily~~Predominantly foreign currency ~~adjustments and, in 2021, adjustments to goodwill related to prior period acquisitions.~~adjustments.

Goodwill impairment testing

Goodwill is tested for impairment during the fourth quarter of each fiscal year, or more often if events or circumstances, such as adverse changes in the business climate, indicate that there may be an impairment. Refer to Note 15 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further discussion of the Firm’s goodwill impairment testing.

Unanticipated declines in business performance, increases in credit losses, increases in capital requirements, as well as deterioration in economic or market conditions, adverse regulatory or legislative changes or increases in the estimated market cost of equity, could cause the estimated fair values of the Firm’s reporting units to decline in the future, which could result in a material impairment charge to earnings in a future period related to some portion of the associated goodwill.

As of ~~September~~June 30, ~~2022,~~2023, the Firm reviewed current economic conditions, estimated market cost of equity, as well as actual business results and projections of business performance. Based on such reviews, the Firm has concluded that goodwill was not impaired as of ~~September~~June 30, ~~2022,~~2023, or December 31, ~~2021,~~2022, nor was goodwill written off due to impairment during the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 or ~~2021.~~2022.

~~160~~171

Mortgage servicing rights

MSRs represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the MSR asset against contractual servicing and ancillary fee income. MSRs are either purchased from third parties or recognized upon sale or securitization of mortgage loans if servicing is retained. Refer to Notes 2 and 15 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further description of the MSR asset, interest rate risk management, and the valuation of MSRs.

The following table summarizes MSR activity for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022.


		As of or for the three months ended September 30,2022				As of or for the nine months ended September 30,					As of or for the three months ended June 30,				As of or for the six months ended June 30,
(in millions, except where otherwise noted)	(in millions, except where otherwise noted)	2022		2021		2022		2021		(in millions, except where otherwise noted)	2023		2022		2023		2022
Fair value at beginning of period	Fair value at beginning of period	$	7,439	$	4,549	$	5,494	$	3,276	Fair value at beginning of period	$	7,755	$	7,294	$	7,973	$	5,494
MSR activity:	MSR activity:									MSR activity:
Originations of MSRs	Originations of MSRs	140		429		736		1,252		Originations of MSRs	78		181		110		596
Purchase of MSRs(a)	Purchase of MSRs(a)	370		584		1,245		1,158		Purchase of MSRs(a)	468		160		467		875
Disposition of MSRs ~~(a)~~(b)	Disposition of MSRs ~~(a)~~(b)	(79)		1		(750)		(23)		Disposition of MSRs ~~(a)~~(b)	(92)		(614)		(90)		(671)
Net additions/(dispositions)	Net additions/(dispositions)	431		1,014		1,231		2,387		Net additions/(dispositions)	454		(273)		487		800
Changes due to collection/realization of expected cash flows	Changes due to collection/realization of expected cash flows	(234)		(201)		(702)		(570)		Changes due to collection/realization of expected cash flows	(255)		(236)		(495)		(468)
Changes in valuation due to inputs and assumptions:	Changes in valuation due to inputs and assumptions:									Changes in valuation due to inputs and assumptions:
Changes due to market interest rates and other~~(b)~~(c)	Changes due to market interest rates and other~~(b)~~(c)	465		133		2,012		469		Changes due to market interest rates and other~~(b)~~(c)	283		653		261		1,547
Changes in valuation due to other inputs and assumptions:	Changes in valuation due to other inputs and assumptions:									Changes in valuation due to other inputs and assumptions:
Projected cash flows (e.g., cost to service)	Projected cash flows (e.g., cost to service)	36		119		36		96		Projected cash flows (e.g., cost to service)	2		—		2		—
Discount rates	Discount rates	—		—		—		—		Discount rates	—		—		—		—
Prepayment model changes and other~~(c)~~(d)	Prepayment model changes and other~~(c)~~(d)	3		(263)		69		(307)		Prepayment model changes and other~~(c)~~(d)	(10)		1		1		66
Total changes in valuation due to other inputs and assumptions	Total changes in valuation due to other inputs and assumptions	39		(144)		105		(211)		Total changes in valuation due to other inputs and assumptions	(8)		1		3		66
Total changes in valuation due to inputs and assumptions	Total changes in valuation due to inputs and assumptions	504		(11)		2,117		258		Total changes in valuation due to inputs and assumptions	275		654		264		1,613
Fair value at September 30		$	8,140	$	5,351	$	8,140	$	5,351
Changes in unrealized gains/(losses) included in income related to MSRs held at September 30		$	504	$	(11)	$	2,117	$	258
Fair value at June 30,										Fair value at June 30,	$	8,229	$	7,439	$	8,229	$	7,439
Changes in unrealized gains/(losses) included in income related to MSRs held at June 30,										Changes in unrealized gains/(losses) included in income related to MSRs held at June 30,	$	275	$	654	$	264	$	1,613
Contractual service fees, late fees and other ancillary fees included in income	Contractual service fees, late fees and other ancillary fees included in income	391		334		1,156		932		Contractual service fees, late fees and other ancillary fees included in income	388		395		776		765
Third-party mortgage loans serviced at September 30, (in billions)		587		510		587		510
Servicer advances, net of an allowance for uncollectible amounts, at September 30, (in billions)(d)		0.8		1.7		0.8		1.7
Third-party mortgage loans serviced at June 30, (in billions)										Third-party mortgage loans serviced at June 30, (in billions)	605		576		605		576
Servicer advances, net of an allowance for uncollectible amounts, at June 30(e)										Servicer advances, net of an allowance for uncollectible amounts, at June 30(e)	595		1,166		595		1,166

(a)Includes purchase price adjustments associated with MSRs purchased in the prior quarter, primarily as a result of loans that prepaid within 90 days of settlement, allowing the Firm to recover the purchase price.

(b)Includes excess MSRs transferred to agency-sponsored trusts in exchange for stripped ~~mortgage backed~~mortgage-backed securities (“SMBS”). In each transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired the remaining balance of those SMBS as trading securities.

~~(b)~~(c)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.

~~(c)~~(d)Represents changes in prepayments other than those attributable to changes in market interest rates.

~~(d)~~(e)Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk associated with these servicer advances is minimal because reimbursement of the advances is typically senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment to investors if the collateral is insufficient to cover the advance. However, certain of these servicer advances may not be recoverable if they were not made in accordance with applicable rules and agreements.

~~161~~172

The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022.


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
CCB mortgage fees and related income	CCB mortgage fees and related income									CCB mortgage fees and related income
Production revenue	Production revenue	$	93	$	614	$	454	$	1,888	Production revenue	$	102	$	150	$	177	$	361

Net mortgage servicing revenue:	Net mortgage servicing revenue:									Net mortgage servicing revenue:
Operating revenue:	Operating revenue:									Operating revenue:
Loan servicing revenue	Loan servicing revenue	400		328		1,203		892		Loan servicing revenue	402		435		802		803
Changes in MSR asset fair value due to collection/realization of expected cash flows	Changes in MSR asset fair value due to collection/realization of expected cash flows	(234)		(201)		(702)		(570)		Changes in MSR asset fair value due to collection/realization of expected cash flows	(255)		(236)		(495)		(468)
Total operating revenue	Total operating revenue	166		127		501		322		Total operating revenue	147		199		307		335
Risk management:	Risk management:									Risk management:
Changes in MSR asset fair value due to market interest rates and other(a)	Changes in MSR asset fair value due to market interest rates and other(a)	465		133		2,012		469		Changes in MSR asset fair value due to market interest rates and other(a)	283		653		261		1,547
Other changes in MSR asset fair value due to other inputs and assumptions in model(b)	Other changes in MSR asset fair value due to other inputs and assumptions in model(b)	39		(144)		105		(211)		Other changes in MSR asset fair value due to other inputs and assumptions in model(b)	(8)		1		3		66
Changes in derivative fair value and other	Changes in derivative fair value and other	(450)		(134)		(1,926)		(621)		Changes in derivative fair value and other	(250)		(626)		(251)		(1,476)
Total risk management	Total risk management	54		(145)		191		(363)		Total risk management	25		28		13		137
Total net mortgage servicing revenue	Total net mortgage servicing revenue	220		(18)		692		(41)		Total net mortgage servicing revenue	172		227		320		472
Total CCB mortgage fees and related income	Total CCB mortgage fees and related income	313		596		1,146		1,847		Total CCB mortgage fees and related income	274		377		497		833
All other	All other	1		4		6		8		All other	4		1		2		5
Mortgage fees and related income	Mortgage fees and related income	$	314	$	600	$	1,152	$	1,855	Mortgage fees and related income	$	278	$	378	$	499	$	838

(a)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.

(b)Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices).

Changes in fair value based on variations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In the following table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change.

The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, and outlines hypothetical sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.


(in millions, except rates)	(in millions, except rates)	Sep 30, 2022			Dec 31, 2021			(in millions, except rates)	Jun 30, 2023			Dec 31, 2022
Weighted-average prepayment speed assumption (constant prepayment rate)	Weighted-average prepayment speed assumption (constant prepayment rate)	6.27		%	9.90		%	Weighted-average prepayment speed assumption (constant prepayment rate)	6.27		%	6.12		%
Impact on fair value of 10% adverse change	Impact on fair value of 10% adverse change	$	(187)		$	(210)		Impact on fair value of 10% adverse change	$	(186)		$	(183)
Impact on fair value of 20% adverse change	Impact on fair value of 20% adverse change	(363)			(404)			Impact on fair value of 20% adverse change	(361)			(356)
Weighted-average option adjusted spread(a)	Weighted-average option adjusted spread(a)	5.47		%	6.44		%	Weighted-average option adjusted spread(a)	5.77		%	5.77		%
Impact on fair value of a 100 basis point adverse change	Impact on fair value of a 100 basis point adverse change	$	(344)		$	(225)		Impact on fair value of a 100 basis point adverse change	$	(348)		$	(341)
Impact on fair value of a 200 basis point adverse change	Impact on fair value of a 200 basis point adverse change	(660)			(433)			Impact on fair value of a 200 basis point adverse change	(668)			(655)

(a)Includes the impact of operational risk and regulatory capital.

~~162~~173

Note 1516 – Deposits

Refer to Note 17 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further information on deposits.

~~At September~~As of June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, noninterest-bearing and interest-bearing deposits were as follows.


(in millions)	(in millions)	September 30, 2022		December 31, 2021			(in millions)	June 30, 2023		December 31, 2022
U.S. offices	U.S. offices						U.S. offices
Noninterest-bearing (included $18,476 and $8,115 at fair value)(a)		$	688,292	$	711,525	(b)
Interest-bearing (included $565 and $629 at fair value)(a)		1,304,012		1,359,932		(b)
Noninterest-bearing (included $47,870 and $26,363 at fair value)(a)							Noninterest-bearing (included $47,870 and $26,363 at fair value)(a)	$	656,778	$	644,902
Interest-bearing (included $572 and $586 at fair value)(a)							Interest-bearing (included $572 and $586 at fair value)(a)	1,311,893		1,276,346
Total deposits in U.S. offices	Total deposits in U.S. offices	1,992,304		2,071,457			Total deposits in U.S. offices	1,968,671		1,921,248
Non-U.S. offices	Non-U.S. offices						Non-U.S. offices
Noninterest-bearing (included $1,296 and $2,420 at fair value)(a)		26,629		26,229

Interest-bearing (included $598 and $169 at fair value)(a)		389,682		364,617
Noninterest-bearing (included $1,331 and $1,398 at fair value)(a)							Noninterest-bearing (included $1,331 and $1,398 at fair value)(a)	24,268		27,005
Interest-bearing (included $1,795 and $273 at fair value)(a)							Interest-bearing (included $1,795 and $273 at fair value)(a)	406,023		391,926
Total deposits in non-U.S. offices	Total deposits in non-U.S. offices	416,311		390,846			Total deposits in non-U.S. offices	430,291		418,931
Total deposits	Total deposits	$	2,408,615	$	2,462,303		Total deposits	$	2,398,962	$	2,340,179

(a)Includes structured notes classified as deposits for which the fair value option has been elected. Refer to Note 3 for further ~~information.~~discussion.

~~(b)~~

As of June 30, 2023 and December 31, 2022, time deposits in denominations that met or exceeded the insured limit were as follows.


(in millions)	June 30, 2023		December 31, 2022
U.S. offices	$	98,725	$	64,622
Non-U.S. offices(a)	85,937		77,907
Total	$	184,662	$	142,529

(a)~~Prior-period amount has been revised to conform with~~Represents all time deposits in non-U.S. offices as these deposits typically exceed the ~~current presentation.~~insured limit.

As of June 30, 2023, the remaining maturities of interest-bearing time deposits in each of the 12-month periods ending June 30 were as follows.


June 30, (in millions)
	U.S.		Non-U.S.		Total
2024	145,737		83,015		228,752
2025	1,213		194		1,407
2026	309		71		380
2027	160		25		185
2028	95		1,087		1,182
After 5 years	533		214		747
Total	$	148,047	$	84,606	$	232,653

Note 1617 – Leases

Refer to Note 18 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further discussion on leases.

Firm as lessee

At ~~September~~June 30, ~~2022,~~2023, JPMorgan Chase and its subsidiaries were obligated under a number of noncancellable leases, predominantly operating leases for premises and equipment used primarily for business purposes.

Operating lease liabilities and right-of-use (“ROU”) assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term.

The ~~following table provides information related to~~carrying values of the Firm’s operating ~~leases:~~leases were as follows:


(in millions)	(in millions)	September 30, 2022		December 31, 2021		(in millions)	June 30, 2023			December 31, 2022
Right-of-use assets	Right-of-use assets	$	7,905	$	7,888	Right-of-use assets	$	8,399	(a)	$	7,782
Lease liabilities	Lease liabilities	8,234		8,328		Lease liabilities	8,756		(a)	8,183

(a)Includes $756 million of right-of-use assets and corresponding lease liabilities, associated with the First Republic acquisition.

The Firm’s net rental expense was ~~$496~~$448 million and ~~$490~~$484 million for the three months ended ~~September~~June 30, 2023 and 2022 and ~~2021~~$935 million and ~~$1.5 billion~~$976 million for ~~both~~ the ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021,~~2022, respectively.

Firm as lessor

The Firm’s lease financings are predominantly auto operating leases, and are included in other assets on the Firm’s Consolidated balance sheets.

The following table presents the Firm’s operating lease income, included within other income, and the related depreciation expense, included within technology, communications and equipment expense, on the Consolidated statements of income:


		Three months ended September 30,				Nine months ended September 30,					Three months ended June 30,				Six months ended June 30,
(in millions)	(in millions)	2022		2021		2022		2021		(in millions)	2023		2022		2023		2022
Operating lease income	Operating lease income	$	870	$	1,190	$	2,863	$	3,792	Operating lease income	$	716	$	945	$	1,471	$	1,993
Depreciation expense	Depreciation expense	620		785		1,998		2,595		Depreciation expense	457		668		876		1,379

~~163~~174

Note 1718 – Long-term debt

JPMorgan Chase issues long-term debt denominated in various currencies, predominantly U.S. dollars, with both fixed and variable interest rates. Included in senior and subordinated debt below are various equity-linked or other indexed instruments, which the Firm has elected to measure at fair value; changes in fair value are recorded in principal transactions revenue in the Consolidated statements of income, except for unrealized gains/(losses) due to DVA which are recorded in OCI. The following table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of June 30, 2023.


By remaining maturity (in millions, except rates)		June 30, 2023													December 31, 2022
		Under 1 year			1-5 years			After 5 years			Total				Total
Parent company
Senior debt:	Fixed rate	$	6,709		$	84,418		$	96,845		$	187,972			$	194,515
	Variable rate	367			7,226			2,200			9,793				11,565
	Interest rates(f)	2.29		%	2.82		%	3.53		%	3.15		%		3.06		%
Subordinated debt:	Fixed rate	$	—		$	8,815		$	8,877		$	17,692			$	19,693
	Variable rate	—			—			—			—				—
	Interest rates(f)	—		%	4.54		%	4.69		%	4.62		%		4.50		%
	Subtotal	$	7,076		$	100,459		$	107,922		$	215,457			$	225,773
Subsidiaries
Federal Home Loan Banks advances:	Fixed rate	$	7,443		$	17,609		$	42		$	25,094		(g)	$	93
	Variable rate	7,000			4,000			—			11,000				11,000
	Interest rates(f)	4.64		%	4.29		%	6.07		%	4.43		%		4.32		%
Purchase Money Note(a):	Fixed rate	$	—		$	48,883		$	—		$	48,883			NA
	Interest rates(f)	—		%	3.40		%	—		%	3.40		%		NA
Senior debt:	Fixed rate	$	3,000		$	7,333		$	6,395		$	16,728			$	15,383
	Variable rate	17,426			21,968			5,451			44,845				41,506
	Interest rates(f)	3.95		%	4.98%			1.52		%	1.88		%		2.02		%
Subordinated debt:	Fixed rate	$	—		$	258		$	—		$	258			$	262
	Variable rate	—			—			—			—				—
	Interest rates(f)	—		%	8.25		%	—		%	8.25		%		8.25		%
	Subtotal	$	34,869		$	100,051		$	11,888		$	146,808			$	68,244
Junior subordinated debt:	Fixed rate	$	—		$	—		$	540		$	540			$	550
	Variable rate	—			357			916			1,273				1,298
	Interest rates(f)	—		%	5.86		%	7.17		%	6.91		%		6.33		%
	Subtotal	$	—		$	357		$	1,456		$	1,813			$	1,848
Total long-term debt(b)(c)(d)		$	41,945		$	200,867		$	121,266		$	364,078		(h)(i)	$	295,865
Long-term beneficial interests:
	Fixed rate	$	—		$	999		$	—		$	999			$	1,999
	Variable rate	—			—			132			132				143
	Interest rates(f)	—		%	3.97		%	3.59		%	3.93		%		2.81		%
Total long-term beneficial interests(e)		$	—		$	999		$	132		$	1,131			$	2,142

(a)As of June 30, 2023, reflects the Purchase Money Note associated with the First Republic acquisition. Refer to Note 28 for additional information.

(b)Included long-term debt of $87.7 billion and $13.8 billion secured by assets totaling $221.2 billion and $208.3 billion at June 30, 2023 and December 31, 2022, respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments.

(c)Included $78.6 billion and $72.3 billion of long-term debt accounted for at fair value at June 30, 2023 and December 31, 2022, respectively.

(d)Included $11.2 billion and $10.3 billion of outstanding zero-coupon notes at June 30, 2023 and December 31, 2022, respectively. The aggregate principal amount of these notes at their respective maturities is $45.7 billion and $45.3 billion, respectively. The aggregate principal amount reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm’s next call date, if applicable.

(e)Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included amounts accounted for at fair value which were not material at June 30, 2023 and December 31, 2022. Excluded short-term commercial paper and other short-term beneficial interests of $18.5 billion and $10.5 billion at June 30, 2023 and December 31, 2022, respectively.

(f)The interest rates shown are the weighted average of contractual rates in effect at June 30, 2023 and December 31, 2022, respectively, including non-U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The interest rates shown exclude structured notes accounted for at fair value.

(g)As of June 30, 2023, included $25.0 billion of FHLB advances associated with the First Republic acquisition. Refer to Note 28 for additional information.

(h)As of June 30, 2023, long-term debt in the aggregate of $191.7 billion was redeemable at the option of JPMorgan Chase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments.

(i)The aggregate carrying values of debt that matures in each of the 12-month periods ending June 30, 2024, 2025, 2026, 2027 and 2028 is $41.9 billion, $58.5 billion, $38.0 billion, $29.2 billion and $75.2 billion, respectively.

175

The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 3.45% and 3.26% as of June 30, 2023 and December 31, 2022, respectively. In order to modify exposure to interest rate and currency exchange rate movements, JPMorgan Chase utilizes derivative instruments, primarily interest rate and cross-currency interest rate swaps, in conjunction with some of its debt issuances. The use of these instruments modifies the Firm’s interest expense on the associated debt. The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 5.02% and 4.89% as of June 30, 2023 and December 31, 2022, respectively.

JPMorgan Chase & Co. has guaranteed certain long-term debt of its subsidiaries, including structured notes. These guarantees rank pari passu with the Firm’s other unsecured and unsubordinated indebtedness. The amount of such guaranteed long-term debt and structured notes was $34.5 billion and $28.2 billion at June 30, 2023 and December 31, 2022, respectively.

The Firm’s unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm’s credit ratings, financial ratios, earnings or stock price.

176

Note 19 - Preferred stock

Refer to Note 21 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further discussion on preferred stock.

The following is a summary of JPMorgan Chase’s non-cumulative preferred stock outstanding as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, and the quarterly dividend declarations for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022.


		Shares		Carrying value (in millions)					Contractual rate in effect at September 30, 2022		Earliest redemption date	Floating annualized rate(a)	Dividend declared per share						Shares(a)			Carrying value (in millions)					Contractual rate in effect at June 30, 2023		Earliest redemption date(b)	Floating annualized rate(c)	Dividend declared per share
		September 30, 2022	December 31, 2021	September 30, 2022		December 31, 2021		Issue date					Three months ended September 30,		Nine months ended September 30,				June 30, 2023		December 31, 2022	June 30, 2023		December 31, 2022		Issue date					Three months ended June 30,				Six months ended June 30,
													2021		Contractual rate in effect at September 30, 2022	Earliest redemption date	Floating annualized rate(a)														2022				Contractual rate in effect at June 30, 2023	Earliest redemption date(b)	Floating annualized rate(c)
Fixed-rate:	Fixed-rate:																	Fixed-rate:

Series AA		—	—	$	—	$	—	6/4/2015	—	%	9/1/2020	NA	$—	$—				$—		$305.00
Series BB		—	—	—		—		7/29/2015	—		9/1/2020	NA	—	—	—	307.50

Series DD	Series DD	169,625	169,625	1,696		1,696		9/21/2018	5.750		12/1/2023	NA	143.75	143.75	431.25	431.25		Series DD	169,625		169,625	$	1,696	$	1,696	9/21/2018	5.750	%	12/1/2023	NA	$	143.75	$	143.75	$287.50	$287.50
Series EE	Series EE	185,000	185,000	1,850		1,850		1/24/2019	6.000		3/1/2024	NA	150.00	150.00	450.00	450.00		Series EE	185,000		185,000	1,850		1,850		1/24/2019	6.000		3/1/2024	NA	150.00		150.00		300.00	300.00
Series GG	Series GG	90,000	90,000	900		900		11/7/2019	4.750		12/1/2024	NA	118.75	118.75	356.25	356.25		Series GG	90,000		90,000	900		900		11/7/2019	4.750		12/1/2024	NA	118.75		118.75		237.50	237.50
Series JJ	Series JJ	150,000	150,000	1,500		1,500		3/17/2021	4.550		6/1/2026	NA	113.75	113.75	341.25	207.28	(b)	Series JJ	150,000		150,000	1,500		1,500		3/17/2021	4.550		6/1/2026	NA	113.75		113.75		227.50	227.50
Series LL	Series LL	185,000	185,000	1,850		1,850		5/20/2021	4.625		6/1/2026	NA	115.63	129.76	346.89	129.76	(b)	Series LL	185,000		185,000	1,850		1,850		5/20/2021	4.625		6/1/2026	NA	115.63		115.63		231.26	231.26
Series MM	Series MM	200,000	200,000	2,000		2,000		7/29/2021	4.200		9/1/2026	NA	105.00	—	315.00	—	(c)	Series MM	200,000		200,000	2,000		2,000		7/29/2021	4.200		9/1/2026	NA	105.00		105.00		210.00	210.00
Fixed-to-floating-rate:	Fixed-to-floating-rate:																	Fixed-to-floating-rate:
Series I	Series I	293,375	293,375	$	2,934	$	2,934	4/23/2008	LIBOR + 3.47%		4/30/2018	LIBOR + 3.47%	$163.87	$90.96	$375.03	$276.42		Series I	—		—	$	—	$	—	4/23/2008	—	%	4/30/2018	SOFR + 3.47%	$	—	$	119.03	$—	$211.16
Series Q	Series Q	150,000	150,000	1,500		1,500		4/23/2013	5.150		5/1/2023	LIBOR + 3.25	128.75	128.75	386.25	386.25		Series Q	150,000		150,000	1,500		1,500		4/23/2013	LIBOR + 3.25		5/1/2023	SOFR + 3.25	218.48		128.75		347.23	257.50	(d)
Series R	Series R	150,000	150,000	1,500		1,500		7/29/2013	6.000		8/1/2023	LIBOR + 3.30	150.00	150.00	450.00	450.00		Series R	150,000		150,000	1,500		1,500		7/29/2013	6.000		8/1/2023	SOFR + 3.30	150.00		150.00		300.00	300.00
Series S	Series S	200,000	200,000	2,000		2,000		1/22/2014	6.750		2/1/2024	LIBOR + 3.78	168.75	168.75	506.25	506.25		Series S	200,000		200,000	2,000		2,000		1/22/2014	6.750		2/1/2024	SOFR + 3.78	168.75		168.75		337.50	337.50
Series U	Series U	100,000	100,000	1,000		1,000		3/10/2014	6.125		4/30/2024	LIBOR + 3.33	153.13	153.13	459.38	459.38		Series U	100,000		100,000	1,000		1,000		3/10/2014	6.125		4/30/2024	SOFR + 3.33	153.13		153.13		306.25	306.25
Series V	Series V	250,000	250,000	2,500		2,500		6/9/2014	LIBOR + 3.32%		7/1/2019	LIBOR + 3.32	146.15	88.55	340.91	263.54		Series V	—		—	—		—		6/9/2014	—		7/1/2019	SOFR + 3.32	—		108.36		—	194.76
Series X	Series X	160,000	160,000	1,600		1,600		9/23/2014	6.100		10/1/2024	LIBOR + 3.33	152.50	152.50	457.50	457.50		Series X	160,000		160,000	1,600		1,600		9/23/2014	6.100		10/1/2024	SOFR + 3.33	152.50		152.50		305.00	305.00
Series Z	Series Z	—	200,000	—		2,000		4/21/2015	—		5/1/2020	LIBOR + 3.80	—	99.23	—	300.97		Series Z	—		—	—		—		4/21/2015	—		5/1/2020	SOFR + 3.80	—		—		—	—
Series CC	Series CC	125,750	125,750	1,258		1,258		10/20/2017	4.625		11/1/2022	LIBOR + 2.58	115.63	115.63	346.88	346.88		Series CC	125,750		125,750	1,258		1,258		10/20/2017	LIBOR + 2.58		11/1/2022	SOFR + 2.58	201.36		115.63		384.15	231.25	(e)
Series FF	Series FF	225,000	225,000	2,250		2,250		7/31/2019	5.000		8/1/2024	SOFR + 3.38	125.00	125.00	375.00	375.00		Series FF	225,000		225,000	2,250		2,250		7/31/2019	5.000		8/1/2024	SOFR + 3.38	125.00		125.00		250.00	250.00
Series HH	Series HH	300,000	300,000	3,000		3,000		1/23/2020	4.600		2/1/2025	SOFR + 3.125	115.00	115.00	345.00	345.00		Series HH	300,000		300,000	3,000		3,000		1/23/2020	4.600		2/1/2025	SOFR + 3.125	115.00		115.00		230.00	230.00
Series II	Series II	150,000	150,000	1,500		1,500		2/24/2020	4.000		4/1/2025	SOFR + 2.745	100.00	100.00	300.00	300.00		Series II	150,000		150,000	1,500		1,500		2/24/2020	4.000		4/1/2025	SOFR + 2.745	100.00		100.00		200.00	200.00
Series KK	Series KK	200,000	200,000	2,000		2,000		5/12/2021	3.650		6/1/2026	CMT + 2.85	91.25	110.51	273.75	110.51	(b)	Series KK	200,000		200,000	2,000		2,000		5/12/2021	3.650		6/1/2026	CMT + 2.85	91.25		91.25		182.50	182.50
Total preferred stock	Total preferred stock	3,283,750	3,483,750	$	32,838	$	34,838											Total preferred stock	2,740,375		2,740,375	$	27,404	$	27,404

(a)~~Floating~~Represented by depositary shares.

(b)Fixed-to-floating rate notes convert to a floating rate at the earliest redemption date.

(c)On March 1, 2023, the Firm announced that, after June 30, 2023, CME Term SOFR will be the replacement reference rate for certain outstanding securities issued by the Firm that used U.S. dollar LIBOR as the reference rate, including fixed-to-floating rate preferred stock. References in the table to “SOFR” mean a floating annualized rate ~~includes three-month LIBOR,~~equal to three-month term SOFR or(plus a spread adjustment of 0.26% per annum) plus the spreads noted. The reference to “CMT” means a floating annualized rate equal to the five-year Constant Maturity Treasury (“CMT”) rate ~~as applicable,~~ plus the ~~spreads noted above.~~spread noted.

~~(b)~~(d)The ~~initial~~ dividend ~~declared is prorated based~~rate for Series Q preferred stock became floating and payable quarterly starting on May 1, 2023; prior to which the ~~number~~dividend rate was fixed at 5.15% or $257.50 per share payable semiannually. The dividend rate for each quarterly dividend period commencing August 1, 2023 will be three-month term SOFR (plus a spread adjustment of ~~days outstanding for~~0.26% per annum) plus the ~~period. Dividends were declared quarterly thereafter at the contractual rate.~~spread of 3.25%.

~~(c)~~(e)~~No dividends were declared from~~The dividend rate for Series CC preferred stock became floating and payable quarterly starting on November 1, 2022; prior to which the ~~original issue date through September 30, 2021.~~dividend rate was fixed at 4.625% or $231.25 per share payable semiannually. The dividend rate for each quarterly dividend period commencing August 1, 2023 will be three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 2.58%.

Each series of preferred stock has a liquidation value and redemption price per share of $10,000, plus accrued but unpaid dividends. The aggregate liquidation value was ~~$33.2~~$27.8 billion at ~~September~~June 30, ~~2022.~~2023.

Redemptions

On October 31, 2022, the Firm redeemed all ~~$2.93~~$2.9 billion of its fixed to floating rate non-cumulative perpetual preferred stock, Series I.

On October 3, 2022, the Firm redeemed all $2.5 billion of its fixed-to-floating rate non-cumulative preferred stock, Series V.

On February 1, 2022, the Firm redeemed all $2.0 billion of its fixed-to-floating rate non-cumulative preferred stock, Series Z.

~~On June 1, 2021, the Firm redeemed all $1.43 billion of its 6.10% non-cumulative preferred stock, Series AA and all $1.15 billion of its 6.15% non-cumulative preferred stock, Series BB.~~

~~164~~177

Note 1820 – Earnings per share

Refer to Note 23 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a discussion of the computation of basic and diluted earnings per share (“EPS”). The following table presents the calculation of basic and diluted EPS for the three and ~~nine~~six months ended ~~September~~June 30, ~~2022~~2023 and ~~2021.~~2022.


(in millions, except per share amounts)	(in millions, except per share amounts)	Three months ended September 30,				Nine months ended September 30,				(in millions, except per share amounts)	Three months ended June 30,				Six months ended June 30,
		2022		2021		2022		2021			2023		2022		2023		2022
Basic earnings per share	Basic earnings per share									Basic earnings per share
Net income	Net income	$	9,737	$	11,687	$	26,668	$	37,935	Net income	$	14,472	$	8,649	$	27,094	$	16,931
Less: Preferred stock dividends	Less: Preferred stock dividends	432		402		1,239		1,174		Less: Preferred stock dividends	373		410		729		807
Net income applicable to common equity	Net income applicable to common equity	9,305		11,285		25,429		36,761		Net income applicable to common equity	14,099		8,239		26,365		16,124
Less: Dividends and undistributed earnings allocated to participating securities	Less: Dividends and undistributed earnings allocated to participating securities	50		56		134		185		Less: Dividends and undistributed earnings allocated to participating securities	88		44		161		85
Net income applicable to common stockholders	Net income applicable to common stockholders	$	9,255	$	11,229	$	25,295	$	36,576	Net income applicable to common stockholders	$	14,011	$	8,195	$	26,204	$	16,039

Total weighted-average basic shares outstanding	Total weighted-average basic shares outstanding	2,961.2		2,999.9		2,966.8		3,036.4		Total weighted-average basic shares outstanding	2,943.8		2,962.2		2,956.1		2,969.6
Net income per share	Net income per share	$	3.13	$	3.74	$	8.53	$	12.05	Net income per share	$	4.76	$	2.77	$	8.86	$	5.40

Diluted earnings per share	Diluted earnings per share									Diluted earnings per share
Net income applicable to common stockholders	Net income applicable to common stockholders	$	9,255	$	11,229	$	25,295	$	36,576	Net income applicable to common stockholders	$	14,011	$	8,195	$	26,204	$	16,039
Total weighted-average basic shares outstanding	Total weighted-average basic shares outstanding	2,961.2		2,999.9		2,966.8		3,036.4		Total weighted-average basic shares outstanding	2,943.8		2,962.2		2,956.1		2,969.6
Add: Dilutive impact of SARs and employee stock options, unvested PSUs and nondividend-earning RSUs		4.2		5.2		4.1		5.3
Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs										Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs	4.5		4.1		4.4		4.1
Total weighted-average diluted shares outstanding	Total weighted-average diluted shares outstanding	2,965.4		3,005.1		2,970.9		3,041.7		Total weighted-average diluted shares outstanding	2,948.3		2,966.3		2,960.5		2,973.7
Net income per share	Net income per share	$	3.12	$	3.74	$	8.51	$	12.02	Net income per share	$	4.75	$	2.76	$	8.85	$	5.39

~~165~~178

Note 1921 – Accumulated other comprehensive income/(loss)

AOCI includes the after-tax change in unrealized gains and losses on investment securities, foreign currency translation adjustments (including the impact of related derivatives), fair value changes of excluded components on fair value hedges, cash flow hedging activities, net ~~loss and prior service costs/(credit)~~gain/(loss) related to the Firm’s defined benefit pension and OPEB plans, and fair value option-elected liabilities arising from changes in the Firm’s own credit risk (DVA).

As of or for the three months ended
September 30, 2022
(in millions) Unrealized
gains/(losses)
on investment securities Translation adjustments, net of hedges Fair value hedges Cash flow hedges Defined benefit
pension and
OPEB plans DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss)
Balance at July 1, 2022 $ (8,844) $ (1,675) $ 30 $ (4,435) $ (123) $ 678 $ (14,369)
Net change (2,145) (581) 38 (1,698) (1,004) 625 (4,765)
Balance at September 30, 2022 $ (10,989) (a) $ (2,256) $ 68 $ (6,133) $ (1,127) $ 1,303 $ (19,134)
As of or for the three months ended
September 30, 2021
(in millions) Unrealized
gains/(losses)
on investment securities Translation adjustments, net of hedges Fair value hedges Cash flow hedges Defined benefit pension and
OPEB plans DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss)
Balance at July 1, 2021 $ 4,515 $ (659) $ (163) $ 725 $ (1,055) $ (793) $ 2,570
Net change (434) (187) 9 (450) 6 (551) (1,607)
Balance at September 30, 2021 $ 4,081 (a) $ (846) $ (154) $ 275 $ (1,049) $ (1,344) $ 963
As of or for the nine months ended
September 30, 2022
(in millions) Unrealized
gains/(losses)
on investment securities Translation adjustments, net of hedges Fair value hedges Cash flow hedges Defined benefit
pension and
OPEB plans DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss)
Balance at January 1, 2022 $ 2,640 $ (934) $ (131) $ (296) $ (210) $ (1,153) $ (84)
Net change (13,629) (1,322) 199 (5,837) (917) 2,456 (19,050)
Balance at September 30, 2022 $ (10,989) (a) $ (2,256) $ 68 $ (6,133) $ (1,127) $ 1,303 $ (19,134)
As of or for the nine months ended
September 30, 2021
(in millions) Unrealized
gains/(losses)
on investment securities Translation adjustments, net of hedges Fair value hedges Cash flow hedges Defined benefit pension and
OPEB plans DVA on fair value option elected liabilities Accumulated other comprehensive income/(loss)
Balance at January 1, 2021 $ 8,180 $ (473) $ (112) $ 2,383 $ (1,132) $ (860) $ 7,986
Net change (4,099) (373) (42) (2,108) 83 (484) (7,023)
Balance at September 30, 2021 $ 4,081 (a) $ (846) $ (154) $ 275 $ (1,049) $ (1,344) $ 963


As of or for the three months ended June 30, 2023 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)

Balance at April 1, 2023		$	(6,912)			$	(1,348)	$	(54)		$	(4,858)		$	(1,506)		$	260		$	(14,418)
Net change		757				70		11			(497)			(6)			(207)			128
Balance at June 30, 2023		$	(6,155)	(a)		$	(1,278)	$	(43)		$	(5,355)		$	(1,512)		$	53		$	(14,290)

As of or for the three months ended June 30, 2022 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)

Balance at April 1, 2022		$	(4,813)			$	(996)	$	(21)		$	(3,087)		$	(143)		$	(507)		$	(9,567)
Net change		(4,031)				(679)		51			(1,348)			20			1,185			(4,802)
Balance at June 30, 2022		$	(8,844)	(a)		$	(1,675)	$	30		$	(4,435)		$	(123)		$	678		$	(14,369)

As of or for the six months ended June 30, 2023 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)

Balance at January 1, 2023		$	(9,124)			$	(1,545)	$	(33)		$	(5,656)		$	(1,451)		$	468		$	(17,341)




Net change		2,969				267		(10)			301			(61)			(415)			3,051
Balance at June 30, 2023		$	(6,155)	(a)		$	(1,278)	$	(43)		$	(5,355)		$	(1,512)		$	53		$	(14,290)

As of or for the six months ended June 30, 2022 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)

Balance at January 1, 2022		$	2,640			$	(934)	$	(131)		$	(296)		$	(210)		$	(1,153)		$	(84)




Net change		(11,484)				(741)		161			(4,139)			87			1,831			(14,285)
Balance at June 30, 2022		$	(8,844)	(a)		$	(1,675)	$	30		$	(4,435)		$	(123)		$	678		$	(14,369)

(a)As of ~~September~~June 30, ~~2022 and 2021~~2023 includes after-tax net unamortized unrealized gains/(losses) of ~~$(1.3)~~$(29) million related to HTM securities that have been transferred to AFS as permitted by the new hedge accounting guidance adopted on January 1, 2023. As of June 30, 2023 and 2022 includes after-tax net unamortized unrealized gains/(losses) of $(1.1) billion and ~~$2.7~~$(1.4) billion, related to AFS securities that have been transferred to HTM, respectively. Refer to Note 10 of this Form 10-Q, and Note 10 of JPMorgan Chase's ~~2021~~2022 Form 10-K for further information.

~~166~~179

The following table presents the pre-tax and after-tax changes in the components of OCI.


		2022						2021							2023						2022
Three months ended September 30, (in millions)		Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Three months ended June 30, (in millions)														Three months ended June 30, (in millions)	Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Unrealized gains/(losses) on investment securities:	Unrealized gains/(losses) on investment securities:													Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	Net unrealized gains/(losses) arising during the period	$	(3,785)	$	912	$	(2,873)	$	(826)	$	197	$	(629)	Net unrealized gains/(losses) arising during the period	$	95	$	(21)	$	74	$	(5,456)	$	1,308	$	(4,148)
Reclassification adjustment for realized (gains)/losses included in net income(a)	Reclassification adjustment for realized (gains)/losses included in net income(a)	959		(231)		728		256		(61)		195		Reclassification adjustment for realized (gains)/losses included in net income(a)	900		(217)		683		153		(36)		117
Net change	Net change	(2,826)		681		(2,145)		(570)		136		(434)		Net change	995		(238)		757		(5,303)		1,272		(4,031)
Translation adjustments(b):	Translation adjustments(b):													Translation adjustments(b):
Translation	Translation	(3,017)		164		(2,853)		(1,030)		63		(967)		Translation	126		10		136		(3,550)		193		(3,357)
Hedges	Hedges	2,992		(720)		2,272		1,028		(248)		780		Hedges	(88)		22		(66)		3,524		(846)		2,678
Net change	Net change	(25)		(556)		(581)		(2)		(185)		(187)		Net change	38		32		70		(26)		(653)		(679)
Fair value hedges, net change(c):	Fair value hedges, net change(c):	50		(12)		38		12		(3)		9		Fair value hedges, net change(c):	15		(4)		11		67		(16)		51
Cash flow hedges:	Cash flow hedges:													Cash flow hedges:
Net unrealized gains/(losses) arising during the period	Net unrealized gains/(losses) arising during the period	(2,511)		602		(1,909)		(267)		65		(202)		Net unrealized gains/(losses) arising during the period	(1,119)		268		(851)		(1,750)		420		(1,330)
Reclassification adjustment for realized (gains)/losses included in net income(d)	Reclassification adjustment for realized (gains)/losses included in net income(d)	278		(67)		211		(326)		78		(248)		Reclassification adjustment for realized (gains)/losses included in net income(d)	465		(111)		354		(24)		6		(18)
Net change	Net change	(2,233)		535		(1,698)		(593)		143		(450)		Net change	(654)		157		(497)		(1,774)		426		(1,348)
Defined benefit pension and OPEB plans, net change(e):		(1,320)		316		(1,004)		8		(2)		6
Defined benefit pension and OPEB plans, net change:														Defined benefit pension and OPEB plans, net change:	(8)		2		(6)		33		(13)		20
DVA on fair value option elected liabilities, net change:	DVA on fair value option elected liabilities, net change:	823		(198)		625		(729)		178		(551)		DVA on fair value option elected liabilities, net change:	(273)		66		(207)		1,558		(373)		1,185
Total other comprehensive loss		$	(5,531)	$	766	$	(4,765)	$	(1,874)	$	267	$	(1,607)
Total other comprehensive income/(loss)														Total other comprehensive income/(loss)	$	113	$	15	$	128	$	(5,445)	$	643	$	(4,802)

		2022						2021							2023						2022
Nine month ended September 30, (in millions)		Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Six months ended June 30, (in millions)														Six months ended June 30, (in millions)	Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Unrealized gains/(losses) on investment securities:	Unrealized gains/(losses) on investment securities:													Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	Net unrealized gains/(losses) arising during the period	$	(19,443)	$	4,670	$	(14,773)	$	(5,792)	$	1,391	$	(4,401)	Net unrealized gains/(losses) arising during the period	$	2,137	$	(511)	$	1,626	$	(15,658)	$	3,758	$	(11,900)
Reclassification adjustment for realized (gains)/losses included in net income(a)	Reclassification adjustment for realized (gains)/losses included in net income(a)	1,506		(362)		1,144		397		(95)		302		Reclassification adjustment for realized (gains)/losses included in net income(a)	1,768		(425)		1,343		547		(131)		416
Net change	Net change	(17,937)		4,308		(13,629)		(5,395)		1,296		(4,099)		Net change	3,905		(936)		2,969		(15,111)		3,627		(11,484)
Translation adjustments(b):	Translation adjustments(b):													Translation adjustments(b):
Translation	Translation	(6,908)		381		(6,527)		(1,950)		92		(1,858)		Translation	1,099		(31)		1,068		(3,891)		217		(3,674)
Hedges	Hedges	6,854		(1,649)		5,205		1,958		(473)		1,485		Hedges	(1,051)		250		(801)		3,862		(929)		2,933
Net change	Net change	(54)		(1,268)		(1,322)		8		(381)		(373)		Net change	48		219		267		(29)		(712)		(741)
Fair value hedges, net change(c):	Fair value hedges, net change(c):	262		(63)		199		(56)		14		(42)		Fair value hedges, net change(c):	(13)		3		(10)		212		(51)		161
Cash flow hedges:	Cash flow hedges:													Cash flow hedges:
Net unrealized gains/(losses) arising during the period	Net unrealized gains/(losses) arising during the period	(7,697)		1,847		(5,850)		(1,844)		443		(1,401)		Net unrealized gains/(losses) arising during the period	(552)		132		(420)		(5,186)		1,245		(3,941)
Reclassification adjustment for realized (gains)/losses included in net income(d)	Reclassification adjustment for realized (gains)/losses included in net income(d)	17		(4)		13		(930)		223		(707)		Reclassification adjustment for realized (gains)/losses included in net income(d)	948		(227)		721		(261)		63		(198)
Net change	Net change	(7,680)		1,843		(5,837)		(2,774)		666		(2,108)		Net change	396		(95)		301		(5,447)		1,308		(4,139)
Defined benefit pension and OPEB plans, net change(e):		(1,197)		280		(917)		101		(18)		83
Defined benefit pension and OPEB plans, net change:														Defined benefit pension and OPEB plans, net change:	(79)		18		(61)		123		(36)		87
DVA on fair value option elected liabilities, net change:	DVA on fair value option elected liabilities, net change:	3,240		(784)		2,456		(642)		158		(484)		DVA on fair value option elected liabilities, net change:	(547)		132		(415)		2,417		(586)		1,831
Total other comprehensive loss	Total other comprehensive loss	$	(23,366)	$	4,316	$	(19,050)	$	(8,758)	$	1,735	$	(7,023)	Total other comprehensive loss	$	3,710	$	(659)	$	3,051	$	(17,835)	$	3,550	$	(14,285)

(a)The pre-tax amount is reported in Investment securities gains/(losses) in the Consolidated statements of income.

(b)Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of ~~income.The~~income. During the six months ended June 30, 2023, the Firm reclassified a net pre-tax loss of $(5) million to other revenue related to the acquisition of CIFM of which $(41) million related to the net investment hedge loss. The amounts ~~reclassified~~were not material for the ~~nine~~three months ended ~~September~~June 30, ~~2022~~2023 and for the three and ~~nine~~six months ended ~~September~~June 30, ~~2021 were not material.~~2022.

(c)Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross currency swaps.

(d)The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income.

~~(e)~~During the period ended September 30, 2022, a remeasurement of the Firm’s U.S. principal defined benefit plan was required as a result of a pension settlement. The remeasurement resulted in a decrease of $1.4 billion in accumulated other comprehensive income (pre-tax). Refer to Note 7 for further information.

~~167~~180

Note 2022 – Restricted cash and other restricted

assets

Refer to Note 26 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a detailed discussion of the Firm’s restricted cash and other restricted assets.

Certain of the Firm’s cash and other assets are restricted as to withdrawal or usage. These restrictions are imposed by various regulatory authorities based on the particular activities of the Firm’s subsidiaries.

The Firm is also subject to rules and regulations established by other U.S. and non-U.S. regulators. As part of its compliance with the respective regulatory requirements, the Firm’s broker-dealer activities are subject to certain restrictions on cash and other assets.

The following table presents the components of the Firm’s restricted cash:


(in billions)	(in billions)	September 30, 2022		December 31, 2021		(in billions)	June 30, 2023		December 31, 2022
Segregated for the benefit of securities and cleared derivative customers	Segregated for the benefit of securities and cleared derivative customers	$	19.8	$	14.6	Segregated for the benefit of securities and cleared derivative customers	$	17.0	$	18.7
Cash reserves at non-U.S. central banks and held for other general purposes	Cash reserves at non-U.S. central banks and held for other general purposes	7.3		5.1		Cash reserves at non-U.S. central banks and held for other general purposes	8.6		8.1
Total restricted cash(a)	Total restricted cash(a)	$	27.1	$	19.7	Total restricted cash(a)	$	25.6	$	26.8

(a)Comprises ~~$25.8~~$24.3 billion and ~~$18.4~~$25.4 billion in deposits with banks, and $1.3 billion and ~~$1.3~~$1.4 billion in cash and due from banks on the Consolidated balance sheet as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, respectively.

Also, as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, the Firm had the following other restricted assets:

•Cash and securities pledged with clearing organizations for the benefit of customers of ~~$39.1~~$36.9 billion and ~~$47.5~~$42.4 billion, respectively.

•Securities with a fair value of ~~$33.8~~$23.4 billion and ~~$30.0~~$31.7 billion, respectively, were also restricted in relation to customer activity.

~~168~~181

Note 2123 – Regulatory capital

Refer to Note 27 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a detailed discussion on regulatory capital.

The Federal Reserve establishes capital requirements, including well-capitalized requirements, for the consolidated financial holding company. The ~~OCC~~Office of the Comptroller of the Currency ("OCC") establishes similar minimum capital requirements and standards for the Firm’s principal IDI subsidiary, JPMorgan Chase Bank, N.A.

Under the risk-based capital and leverage-based guidelines of the Federal Reserve, JPMorgan Chase is required to maintain minimum ratios for CET1 capital, Tier 1 capital, Total capital, Tier 1 leverage and the SLR. Failure to meet these minimum requirements could cause the Federal Reserve to take action. IDI subsidiaries are also subject to these capital requirements established by their respective primary regulators.

The following table presents the risk-based regulatory capital ratio requirements and well-capitalized ratios to which the Firm and its IDI subsidiaries were subject as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021.~~2022.


		Standardized capital ratio requirements				Advanced capital ratio requirements				Well-capitalized ratios					Standardized capital ratio requirements				Advanced capital ratio requirements				Well-capitalized ratios
		BHC(a)		IDI(b)		BHC(a)		IDI(b)		BHC(c)		IDI(d)			BHC(a)(b)		IDI(c)		BHC(a)(b)		IDI(c)		BHC(d)		IDI(e)
Risk-based capital ratios	Risk-based capital ratios													Risk-based capital ratios
CET1 capital	CET1 capital	11.2	%	7.0	%	10.5	%	7.0	%	NA		6.5	%	CET1 capital	12.5	%	7.0	%	11.0	%	7.0	%	NA		6.5	%
Tier 1 capital	Tier 1 capital	12.7		8.5		12.0		8.5		6.0	%	8.0		Tier 1 capital	14.0		8.5		12.5		8.5		6.0	%	8.0
Total capital	Total capital	14.7		10.5		14.0		10.5		10.0		10.0		Total capital	16.0		10.5		14.5		10.5		10.0		10.0

Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and its IDI subsidiaries are subject.

(a)Represents the regulatory capital ratio requirements applicable to the Firm. The CET1, Tier 1 and Total capital ratio requirements each include a respective minimum requirement plus a GSIB surcharge of ~~3.5%~~4.0% as calculated under Method 2; plus a ~~3.2%~~4.0% SCB for Basel III Standardized ratios and a fixed 2.5% capital conservation buffer for Basel III Advanced ratios. The countercyclical buffer is currently set to 0% by the federal banking agencies.

(b)For the period ended December 31, 2022, the CET1, Tier 1, and Total capital ratio requirements under Basel III Standardized applicable to the Firm were 12.0%, 13.5% and 15.5%, respectively; the Basel III Advanced CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 10.5%, 12.0%, and 14.0%, respectively.

(c)Represents requirements for JPMorgan Chase’s IDI subsidiaries. The CET1, Tier 1 and Total capital ratio requirements include a fixed capital conservation buffer requirement of 2.5% that is applicable to the IDI subsidiaries. The IDI subsidiaries are not subject to the GSIB surcharge.

~~(c)~~(d)Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve.

~~(d)~~(e)Represents requirements for IDI subsidiaries pursuant to regulations issued under the FDIC Improvement Act.

The following table presents the leverage-based regulatory capital ratio requirements and well-capitalized ratios to which the Firm and its IDI subsidiaries were subject as of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021.~~2022.


	Capital ratio requirements(a)				Well-capitalized ratios
	BHC		IDI		BHC(b)	IDI
Leverage-based capital ratios
Tier 1 leverage	4.0	%	4.0	%	NA	5.0	%
SLR	5.0		6.0		NA	6.0

Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and its IDI subsidiaries are subject.

(a)Represents minimum SLR requirement of 3.0%, as well as supplementary leverage buffer requirements of 2.0% and 3.0% for BHC and IDI subsidiaries, respectively.

(b)The Federal Reserve's regulations do not establish well-capitalized thresholds for these measures for BHCs.

CECL regulatory capital transition

~~On December 31, 2021, the CECL capital transition provisions~~, ~~which delayed the effects of CECL on regulatory capital for two years, expired.~~ Beginning January 1, 2022, the $2.9 billion CECL capital benefit, ~~recognized as of December 31, 2021,~~provided by the Federal Reserve in response to the COVID-19 pandemic, is being phased out at 25% per year over a three-year period. As of ~~September~~June 30, ~~2022,~~2023, the Firm's CET1 capital reflected the remaining ~~$2.2~~$1.4 billion benefit associated with the CECL capital transition provisions.

Refer to Note 27 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further information on CECL capital transition provisions.

~~169~~182

The following tables present risk-based capital metrics under both the Basel III Standardized and Basel III Advanced approaches and leverage-based capital metrics for JPMorgan Chase and JPMorgan Chase Bank, N.A. As of ~~September~~June 30, ~~2022~~2023 and December 31, ~~2021,~~2022, JPMorgan Chase and JPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject.


September 30, 2022 (in millions, except ratios)		Basel III Standardized						Basel III Advanced
		JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
June 30, 2023 (in millions, except ratios)														June 30, 2023 (in millions, except ratios)	Basel III Standardized						Basel III Advanced
															JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.				JPMorgan Chase Bank, N.A.
Risk-based capital metrics:(a)	Risk-based capital metrics:(a)													Risk-based capital metrics:(a)
CET1 capital	CET1 capital	$	209,661		$	264,466		$	209,661		$	264,466		CET1 capital	$	235,827		$	279,233		$	235,827			$	279,233
Tier 1 capital	Tier 1 capital	236,363			264,470			236,363			264,470			Tier 1 capital	262,585			279,236			262,585				279,236
Total capital	Total capital	268,076			282,192			256,157			269,897			Total capital	295,281			298,582			281,953			(b)	285,500

Risk-weighted assets	Risk-weighted assets	1,678,498			1,614,628			1,609,968			1,471,019			Risk-weighted assets	1,706,927			1,642,804			1,694,714			(b)	1,541,700

CET1 capital ratio	CET1 capital ratio	12.5		%	16.4		%	13.0		%	18.0		%	CET1 capital ratio	13.8		%	17.0		%	13.9		%		18.1		%
Tier 1 capital ratio	Tier 1 capital ratio	14.1			16.4			14.7			18.0			Tier 1 capital ratio	15.4			17.0			15.5				18.1
Total capital ratio	Total capital ratio	16.0			17.5			15.9			18.3			Total capital ratio	17.3			18.2			16.6				18.5


December 31, 2021 (in millions, except ratios)		Basel III Standardized						Basel III Advanced
		JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
December 31, 2022 (in millions, except ratios)														December 31, 2022 (in millions, except ratios)	Basel III Standardized						Basel III Advanced
															JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
Risk-based capital metrics:(a)	Risk-based capital metrics:(a)													Risk-based capital metrics:(a)
CET1 capital	CET1 capital	$	213,942		$	266,907		$	213,942		$	266,907		CET1 capital	$	218,934		$	269,668		$	218,934		$	269,668
Tier 1 capital	Tier 1 capital	246,162			266,910			246,162			266,910			Tier 1 capital	245,631			269,672			245,631			269,672
Total capital	Total capital	274,900			281,826			265,796			272,299			Total capital	277,769			288,433			264,583			275,255

Risk-weighted assets	Risk-weighted assets	1,638,900			1,582,280			1,547,920			1,392,847			Risk-weighted assets	1,653,538			1,597,072			1,609,773			1,475,602

CET1 capital ratio	CET1 capital ratio	13.1		%	16.9		%	13.8		%	19.2		%	CET1 capital ratio	13.2		%	16.9		%	13.6		%	18.3		%
Tier 1 capital ratio	Tier 1 capital ratio	15.0			16.9			15.9			19.2			Tier 1 capital ratio	14.9			16.9			15.3			18.3
Total capital ratio	Total capital ratio	16.8			17.8			17.2			19.5			Total capital ratio	16.8			18.1			16.4			18.7

(a)The capital metrics reflect the CECL capital transition provisions. ~~Additionally, loans originated under~~

(b)Includes the ~~PPP receive a zero percent risk weight.~~impacts of certain assets associated with the First Republic acquisition to which the Standardized approach has been applied as permitted by the transition provisions in the U.S. capital rules.


Three months ended (in millions, except ratios)	Three months ended (in millions, except ratios)	September 30, 2022						December 31, 2021						Three months ended (in millions, except ratios)	June 30, 2023						December 31, 2022
		JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.				JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
Leverage-based capital metrics:(a)	Leverage-based capital metrics:(a)													Leverage-based capital metrics:(a)
Adjusted average assets(b)	Adjusted average assets(b)	$	3,791,804		$	3,327,201		$	3,782,035		$	3,334,925		Adjusted average assets(b)	$	3,796,579		$	3,308,478		$	3,703,873		$	3,249,912
Tier 1 leverage ratio	Tier 1 leverage ratio	6.2		%	7.9		%	6.5		%	8.0		%	Tier 1 leverage ratio	6.9		%	8.4		%	6.6		%	8.3		%
Total leverage exposure	Total leverage exposure	$	4,460,636		$	4,002,580		$	4,571,789		$	4,119,286		Total leverage exposure	$	4,492,761		$	3,993,500		$	4,367,092		$	3,925,502
SLR	SLR	5.3		%	6.6		%	5.4		%	6.5		%	SLR	5.8		%	7.0		%	5.6		%	6.9		%

(a)The capital metrics reflect the CECL capital transition provisions.

~~170~~183

Note 2224 – Off–balance sheet lending-related

financial instruments, guarantees, and other

commitments

JPMorgan Chase provides lending-related financial instruments (e.g., commitments and guarantees) to address the financing needs of its customers and clients. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the customer or client draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the customer or client subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm’s view, representative of its expected future credit exposure or funding requirements. Refer to Note 28 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for a further discussion of lending-related commitments and guarantees, and the Firm’s related accounting policies.

To provide for expected credit losses in wholesale and certain consumer lending-related commitments, an allowance for credit losses on lending-related commitments is maintained. Refer to Note 1213 for further information regarding the allowance for credit losses on lending-related commitments.

The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021.~~2022. The amounts in the table below for credit card, home equity and certain scored business banking lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time. The Firm can reduce or cancel credit card and certain scored business banking lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. In addition, the Firm typically closes credit card lines when the borrower is 60 days or more past due. The Firm may reduce or close HELOCs when there are significant decreases in the value of the underlying property, or when there has been a demonstrable decline in the creditworthiness of the borrower.

~~171~~184


Off–balance sheet lending-related financial instruments, guarantees and other commitments	Off–balance sheet lending-related financial instruments, guarantees and other commitments																Off–balance sheet lending-related financial instruments, guarantees and other commitments
		Contractual amount												Carrying value(h)					Contractual amount												Carrying value(i)
		September 30, 2022										Dec 31, 2021			Sep 30, 2022		Dec 31, 2021				June 30, 2023										Dec 31, 2022		Jun 30, 2023			Dec 31, 2022
By remaining maturity (in millions)	By remaining maturity (in millions)	Expires in 1 year or less		Expires after 1 year through 3 years		Expires after 3 years through 5 years		Expires after 5 years		Total		Total								By remaining maturity (in millions)	Expires in 1 year or less		Expires after 1 year through 3 years		Expires after 3 years through 5 years		Expires after 5 years		Total		Total
Lending-related	Lending-related																			Lending-related
Consumer, excluding credit card:	Consumer, excluding credit card:																			Consumer, excluding credit card:
Residential real estate(a)	Residential real estate(a)	$	6,546	$	3,133	$	6,447	$	6,735	$	22,861	$	32,996		$	91	$	100		Residential real estate(a)	$	9,164	$	5,873	$	6,304	$	12,692	$	34,033	$	21,287	$	714	(j)	$	75
Auto and other	Auto and other	10,687		—		—		1,320		12,007		12,338			—		2			Auto and other	14,203		324		—		2,286		16,813		12,231		236		(j)	—
Total consumer, excluding credit card	Total consumer, excluding credit card	17,233		3,133		6,447		8,055		34,868		45,334			91		102			Total consumer, excluding credit card	23,367		6,197		6,304		14,978		50,846		33,518		950			75
Credit card(b)	Credit card(b)	798,855		—		—		—		798,855		730,534			—		—			Credit card(b)	881,485		—		—		—		881,485		821,284		—			—
Total consumer(c)	Total consumer(c)	816,088		3,133		6,447		8,055		833,723		775,868			91		102			Total consumer(c)	904,852		6,197		6,304		14,978		932,331		854,802		950			75
Wholesale:	Wholesale:																			Wholesale:
Other unfunded commitments to extend credit(d)	Other unfunded commitments to extend credit(d)	92,849		135,571		190,735		22,144		441,299		453,467			2,498		2,037			Other unfunded commitments to extend credit(d)	123,374		160,273		202,330		23,345		509,322		440,407		3,564		(h)(j)	2,328		(h)
Standby letters of credit and other financial guarantees(d)	Standby letters of credit and other financial guarantees(d)	13,829		8,328		4,590		1,066		27,813		28,530			456		476			Standby letters of credit and other financial guarantees(d)	14,960		8,073		4,274		1,099		28,406		27,439		517			408
Other letters of credit(d)	Other letters of credit(d)	3,357		385		96		—		3,838		4,448			13		9			Other letters of credit(d)	3,022		233		106		—		3,361		4,134		23			6
Total wholesale(c)	Total wholesale(c)	110,035		144,284		195,421		23,210		472,950		486,445			2,967		2,522			Total wholesale(c)	141,356		168,579		206,710		24,444		541,089		471,980		4,104			2,742
Total lending-related	Total lending-related	$	926,123	$	147,417	$	201,868	$	31,265	$	1,306,673	$	1,262,313		$	3,058	$	2,624		Total lending-related	$	1,046,208	$	174,776	$	213,014	$	39,422	$	1,473,420	$	1,326,782	$	5,054		$	2,817
Other guarantees and commitments	Other guarantees and commitments																			Other guarantees and commitments
Securities lending indemnification agreements and guarantees(e)	Securities lending indemnification agreements and guarantees(e)	$	309,553	$	—	$	—	$	—	$	309,553	$	337,770		$	—	$	—		Securities lending indemnification agreements and guarantees(e)	$	296,547	$	—	$	—	$	—	$	296,547	$	283,386	$	—		$	—
Derivatives qualifying as guarantees	Derivatives qualifying as guarantees	4,244		310		12,737		41,074		58,365		55,730			1,006		475			Derivatives qualifying as guarantees	3,861		228		11,959		40,852		56,900		59,180		181			649
Unsettled resale and securities borrowed agreements	Unsettled resale and securities borrowed agreements	137,055		445		—		—		137,500		103,681			(9)		1			Unsettled resale and securities borrowed agreements	108,556		585		—		—		109,141		116,975		—			(2)
Unsettled repurchase and securities loaned agreements	Unsettled repurchase and securities loaned agreements	88,455		490		—		—		88,945		74,263			(10)		—			Unsettled repurchase and securities loaned agreements	92,811		547		—		—		93,358		66,407		—			(7)
Loan sale and securitization-related indemnifications:	Loan sale and securitization-related indemnifications:																			Loan sale and securitization-related indemnifications:
Mortgage repurchase liability	Mortgage repurchase liability	NA										NA			54		61			Mortgage repurchase liability	NA										NA		76			76
Loans sold with recourse	Loans sold with recourse	NA								826		827			28		19			Loans sold with recourse	NA								768		820		27			28
Exchange & clearing house guarantees and commitments(f)	Exchange & clearing house guarantees and commitments(f)	105,501		—		—		—		105,501		182,701			—		—			Exchange & clearing house guarantees and commitments(f)	140,102		—		—		—		140,102		191,068		—			—
Other guarantees and commitments(g)	Other guarantees and commitments(g)	7,343		602		298		2,204		10,447		10,490			60		69			Other guarantees and commitments(g)	6,569		848		166		3,574		11,157		8,634		43			53

(a)Includes certain commitments to purchase loans from correspondents.

(b)Also includes commercial card lending-related commitments primarily in CB and CIB.

(c)Predominantly all consumer and wholesale lending-related commitments are in the U.S.

(d)~~At September~~As of June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, reflected the contractual amount net of risk participations totaling ~~$29~~$87 million and ~~$44~~$71 million, respectively, for other unfunded commitments to extend credit; ~~$8.5~~$8.0 billion and ~~$7.9~~$8.2 billion, respectively, for standby letters of credit and other financial guarantees; ~~and $502~~$425 million and ~~$451~~$512 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.

(e)~~At September~~As of June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, collateral held by the Firm in support of securities lending indemnification agreements was ~~$326.0~~$312.6 billion and ~~$357.4~~$298.5 billion, respectively. Securities lending collateral primarily consists of cash, G7 government securities, and securities issued by U.S. GSEs and government agencies.

(f)~~At September~~As of June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, includes guarantees to the Fixed Income Clearing Corporation under the sponsored member repo program and commitments and guarantees associated with the Firm’s membership in certain clearing houses.

(g)~~At September~~As of June 30, ~~2022,~~2023, and December 31, ~~2021,~~2022, primarily includes unfunded commitments related to certain tax-oriented equity investments, unfunded commitments to purchase secondary market loans, and other equity investment commitments.

(h)As of June 30, 2023 and December 31, 2022 includes net markdowns on held-for-sale positions related to unfunded commitments in the bridge financing portfolio.

(i)For lending-related products, the carrying value ~~represents~~includes the allowance for lending-related commitments and the guarantee liability; for derivative-related products, and lending-related commitments for which the fair value option was elected, the carrying value represents the fair value. ~~At September~~

(j)As of June 30, ~~2022,~~2023, includes ~~net markdowns on held-for-sale positions related to~~fair value adjustments associated with the First Republic acquisition for residential real estate lending-related commitments totaling $576 million, for auto and other lending-related commitments totaling $236 million and for other unfunded commitments ~~in the bridge financing portfolio.~~

to extend credit totaling $1.6 billion. Refer to Note 28 for additional information.

~~172~~185

Other unfunded commitments to extend credit

Other unfunded commitments to extend credit generally consist of commitments for working capital and general corporate purposes, extensions of credit to support commercial paper facilities and bond financings in the event that those obligations cannot be remarketed to new investors, as well as committed liquidity facilities to clearing organizations. The Firm also issues commitments under multipurpose facilities which could be drawn upon in several forms, including the issuance of a standby letter of credit.

Standby letters of credit and other financial guarantees

Standby letters of credit and other financial guarantees are conditional lending commitments issued by the Firm to guarantee the performance of a client or customer to a third party under certain arrangements, such as commercial paper facilities, bond financings, acquisition financings, trade financings and similar transactions.

The following table summarizes the contractual amount and carrying value of standby letters of credit and other financial guarantees and other letters of credit arrangements as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021.~~2022.

Standby letters of credit, other financial guarantees and other letters of credit


		September 30, 2022				December 31, 2021					June 30, 2023				December 31, 2022
(in millions)	(in millions)	Standby letters of credit and other financial guarantees		Other letters of credit		Standby letters of credit and other financial guarantees		Other letters of credit		(in millions)	Standby letters of credit and other financial guarantees		Other letters of credit		Standby letters of credit and other financial guarantees		Other letters of credit
Investment-grade(a)	Investment-grade(a)	$	19,632	$	2,846	$	19,998	$	3,087	Investment-grade(a)	$	19,574	$	2,385	$	19,205	$	3,040
Noninvestment-grade(a)	Noninvestment-grade(a)	8,181		992		8,532		1,361		Noninvestment-grade(a)	8,832		976		8,234		1,094
Total contractual amount	Total contractual amount	$	27,813	$	3,838	$	28,530	$	4,448	Total contractual amount	$	28,406	$	3,361	$	27,439	$	4,134

Allowance for lending-related commitments	Allowance for lending-related commitments	$	89	$	13	$	123	$	9	Allowance for lending-related commitments	$	146	$	23	$	82	$	6
Guarantee liability	Guarantee liability	367		—		353		—		Guarantee liability	371		—		326		—
Total carrying value	Total carrying value	$	456	$	13	$	476	$	9	Total carrying value	$	517	$	23	$	408	$	6
Commitments with collateral	Commitments with collateral	$	15,137	$	660	$	14,511	$	999	Commitments with collateral	$	16,414	$	549	$	15,296	$	795

(a)The ratings scale is based on the Firm’s internal risk ratings. Refer to Note 1112 for further information on internal risk ratings.

Derivatives qualifying as guarantees

The Firm transacts in certain derivative contracts that have the characteristics of a guarantee under U.S. GAAP. Refer to Note 28 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for further information on these derivatives.

The following table summarizes the derivatives qualifying as guarantees as of ~~September~~June 30, ~~2022,~~2023, and December 31, ~~2021.~~2022.


(in millions)	(in millions)	September 30, 2022		December 31, 2021		(in millions)	June 30, 2023		December 31, 2022

Notional amounts	Notional amounts					Notional amounts
Derivative guarantees	Derivative guarantees	$	58,365	$	55,730	Derivative guarantees	$	56,900	$	59,180
Stable value contracts with contractually limited exposure	Stable value contracts with contractually limited exposure	31,567		29,778		Stable value contracts with contractually limited exposure	31,715		31,820
Maximum exposure of stable value contracts with contractually limited exposure	Maximum exposure of stable value contracts with contractually limited exposure	2,943		2,882		Maximum exposure of stable value contracts with contractually limited exposure	1,442		2,063

Fair value	Fair value					Fair value
Derivative payables	Derivative payables	1,006		475		Derivative payables	181		649

In addition to derivative contracts that meet the characteristics of a guarantee, the Firm is both a purchaser and seller of credit protection in the credit derivatives market. Refer to Note 45 for a further discussion of credit derivatives.

Merchant charge-backs

Under the rules of payment networks, ~~the Firm,~~ in its role as a merchant acquirer, the Firm's Merchant Services business in CIB Payments, retains a contingent liability for disputed processed credit and debit card transactions that result in a charge-back to the merchant. If a dispute is resolved in the cardholder’s favor, ~~Merchant Services~~the Firm will (through the cardholder’s issuing bank) credit or refund the amount to the cardholder and will charge back the transaction to the merchant. If ~~Merchant Services~~the Firm is unable to collect the amount from the merchant, ~~Merchant Services~~the Firm will bear the loss for the amount credited or refunded to the cardholder. ~~Merchant Services~~The Firm mitigates this risk by withholding future settlements, retaining cash reserve accounts or obtaining other collateral. In addition, ~~Merchant Services~~the Firm recognizes a valuation allowance that covers the payment or performance risk ~~to the Firm~~ related to charge-backs.

~~173~~186

Loan ~~sales-~~sales and securitization-related indemnifications

In connection with the Firm’s mortgage loan sale and securitization activities with GSEs the Firm has made representations and warranties that the loans sold meet certain requirements, and that may require the Firm to repurchase mortgage loans and/or indemnify the loan purchaser if such representations and warranties are breached by the Firm.

The liability related to repurchase demands associated with private label securitizations is separately evaluated by the Firm in establishing its litigation reserves. Refer to Note 2426 of this Form 10-Q and Note 30 of JPMorgan Chase’s ~~2021~~2022 Form 10-K for additional information regarding litigation.


Segment results and reconciliation(a)	Segment results and reconciliation(a)																													Segment results and reconciliation(a)
As of or for the three months ended September 30, (in millions, except ratios)		Consumer & Community Banking							Corporate & Investment Bank							Commercial Banking							Asset & Wealth Management
		2022			2021				2022			2021				2022			2021				2022			2021
As of or for the three months ended June 30, (in millions, except ratios)																														As of or for the three months ended June 30, (in millions, except ratios)	Consumer & Community Banking							Corporate & Investment Bank							Commercial Banking						Asset & Wealth Management
																															2023			2022				2023			2022				2023			2022			2023			2022
Noninterest revenue	Noninterest revenue	$	3,762		$	4,138			$	9,231		$	9,061			$	836		$	988			$	3,126		$	3,312			Noninterest revenue	$	3,543		$	3,850		(b)	$	10,802		$	8,805		(b)	$	835		$	904		$	3,358		$	3,084
Net interest income	Net interest income	10,569			8,383				2,644			3,335				2,212			1,532				1,413			988				Net interest income	13,690			8,708				1,717			3,198				3,153			1,779			1,585			1,222
Total net revenue	Total net revenue	14,331			12,521				11,875			12,396				3,048			2,520				4,539			4,300				Total net revenue	17,233			12,558				12,519			12,003				3,988			2,683			4,943			4,306
Provision for credit losses	Provision for credit losses	529			(459)				513			(638)				618			(363)				(102)			(60)				Provision for credit losses	1,862			761				38			59				1,097			209			145			44
Noninterest expense	Noninterest expense	8,047			7,238				6,618			5,871				1,180			1,032				3,028			2,762				Noninterest expense	8,313			7,658			(b)	6,894			6,810			(b)	1,300			1,156			3,163			2,919
Income/(loss) before income tax expense/(benefit)	Income/(loss) before income tax expense/(benefit)	5,755			5,742				4,744			7,163				1,250			1,851				1,613			1,598				Income/(loss) before income tax expense/(benefit)	7,058			4,139				5,587			5,134				1,591			1,318			1,635			1,343
Income tax expense/(benefit)	Income tax expense/(benefit)	1,421			1,391			(b)	1,212			1,516			(b)	304			442			(b)	394			402			(b)	Income tax expense/(benefit)	1,752			1,031			(b)	1,495			1,417			(b)	383			324			409			339
Net income/(loss)	Net income/(loss)	$	4,334		$	4,351		(b)	$	3,532		$	5,647		(b)	$	946		$	1,409		(b)	$	1,219		$	1,196		(b)	Net income/(loss)	$	5,306		$	3,108			$	4,092		$	3,717			$	1,208		$	994		$	1,226		$	1,004
Average equity	Average equity	$	50,000		$	50,000			$	103,000		$	83,000			$	25,000		$	24,000			$	17,000		$	14,000			Average equity	$	54,346		$	50,000			$	108,000		$	103,000			$	29,505		$	25,000		$	16,670		$	17,000
Total assets	Total assets	500,752			493,169				1,384,618			1,355,752				247,485			227,670				232,303			221,702				Total assets	620,193			500,219				1,432,054			1,403,558				305,280			242,456			247,118			235,553
ROE	ROE	33		%	34		%		13		%	26		%		14		%	22		%		28		%	33		%		ROE	38		%	24		%		15		%	14		%		16		%	15		%	29		%	23		%
Overhead ratio	Overhead ratio	56			58				56			47				39			41				67			64				Overhead ratio	48			61				55			57				33			43			64			68


As of or for the three months ended September 30, (in millions, except ratios)		Corporate					Reconciling Items(a)				Total
		2022		2021			2022		2021		2022			2021
As of or for the three months ended June 30, (in millions, except ratios)																	As of or for the three months ended June 30, (in millions, except ratios)	Corporate				Reconciling Items(a)				Total
																		2023		2022		2023		2022		2023			2022
Noninterest revenue	Noninterest revenue	$	(1,094)	$	(242)		$	(663)	$	(690)	$	15,198		$	16,567		Noninterest revenue	$	1,980	$	(244)	$	(990)	$	(812)	$	19,528		$	15,587
Net interest income	Net interest income	792		(1,054)			(112)		(104)		17,518			13,080			Net interest income	1,738		324		(104)		(103)		21,779			15,128
Total net revenue	Total net revenue	(302)		(1,296)			(775)		(794)		32,716			29,647			Total net revenue	3,718		80		(1,094)		(915)		41,307			30,715
Provision for credit losses	Provision for credit losses	(21)		(7)			—		—		1,537			(1,527)			Provision for credit losses	(243)		28		—		—		2,899			1,101
Noninterest expense	Noninterest expense	305		160			—		—		19,178			17,063			Noninterest expense	1,152		206		—		—		20,822			18,749
Income/(loss) before income tax expense/(benefit)	Income/(loss) before income tax expense/(benefit)	(586)		(1,449)			(775)		(794)		12,001			14,111			Income/(loss) before income tax expense/(benefit)	2,809		(154)		(1,094)		(915)		17,586			10,865
Income tax expense/(benefit)	Income tax expense/(benefit)	(292)		(533)		(b)	(775)		(794)		2,264			2,424			Income tax expense/(benefit)	169		20		(1,094)		(915)		3,114			2,216
Net income/(loss)	Net income/(loss)	$	(294)	$	(916)	(b)	$	—	$	—	$	9,737		$	11,687		Net income/(loss)	$	2,640	$	(174)	$	—	$	—	$	14,472		$	8,649
Average equity	Average equity	$	57,944	$	82,556		$	—	$	—	$	252,944		$	253,556		Average equity	$	69,364	$	52,986	$	—	$	—	$	277,885		$	247,986
Total assets	Total assets	1,408,726		1,459,283			NA		NA		3,773,884			3,757,576			Total assets	1,263,595		1,459,528		NA		NA		3,868,240			3,841,314
ROE	ROE	NM		NM			NM		NM		15		%	18		%	ROE	NM		NM		NM		NM		20		%	13		%
Overhead ratio	Overhead ratio	NM		NM			NM		NM		59			58			Overhead ratio	NM		NM		NM		NM		50			61


	Fair value purchase price allocation as of May 1, 2023
(in millions)
Purchase price consideration
Amounts paid/due to the FDIC, net of cash acquired(a)	$	13,589
Purchase Money Note (at fair value)	48,848
Settlement of First Republic deposit and other related party transactions(b)	5,447
Contingent consideration - Shared-loss agreements	15
Purchase price consideration	$	67,899

Assets
Securities	$	30,285
Loans	152,335
Core deposit and customer relationship intangibles	1,462
Indemnification assets - Shared-loss agreements	675
Accounts receivable and other assets(c)	7,551
Total assets acquired	$	192,308

Liabilities
Deposits	$	87,507
FHLB advances	27,919
Lending-related commitments	2,409
Accounts payable and other liabilities(c)	3,006
Deferred tax liabilities	856
Total liabilities assumed	$	121,697

Fair value of net assets acquired	$	70,611
Estimated gain on acquisition, after income taxes	$	2,712



	May 1, 2023
(in millions)	UPB		Fair value
Residential real estate	$	106,240	$	91,906
Auto and other	3,092		2,031
Total consumer	109,332		93,937
Secured by real estate	37,119		33,605
Commercial & industrial	4,333		3,933
Other	22,597		20,860
Total wholesale	64,049		58,398
Total loans	$	173,381	$	152,335


Nine months ended September 30, 2022	Total number of shares of common stock repurchased	Average price paid per share of common stock(a)		Aggregate purchase price of common stock repurchases (in millions)(a)		Dollar value of remaining authorized repurchase (in millions)(a)



First quarter	18,106,991	$	138.04	$	2,500	$	9,052




Second quarter	4,981,047	$	124.88	$	622	$	29,633	(b)(c)
July	—	—		—		—
August	—	—		—		—
September	—	—		—		—
Third quarter	—	—		—		—
Year-to-date	23,088,038	$	135.20	$	3,122	$	29,633	(c)


Exhibit No.						Description of Exhibit

15						Letter re: Unaudited Interim Financial Information.(a)

22						Subsidiary Guarantors and Issuers of Guaranteed Securities ~~(incorporated by reference to Exhibit 22.2 to the Annual Report on Form 10-K of JPMorgan Chase & Co. (File No. 1-5805) for the year ended December 31, 2021.)~~.(a)

31.1						Certification.(a)

31.2						Certification.(a)

32						Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(b)

101.INS						The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.(c)
101.SCH						XBRL Taxonomy Extension Schema Document.(a)
101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document.(a)
101.DEF						XBRL Taxonomy Extension Definition Linkbase Document.(a)
101.LAB						XBRL Taxonomy Extension Label Linkbase Document.(a)
101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document.(a)
104						Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).


By:			/s/ Elena Korablina
			Elena Korablina
			Managing Director and Firmwide Controller
			(Principal Accounting Officer)