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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 endedCommission file
SeptemberJune 30, 20222023number1-5805
JPMorgan Chase & Co.
(Exact name of registrant as specified in its charter)
Delaware13-2624428
(State or other jurisdiction of
incorporation or organization)
(I.R.S. employer
identification no.)
383 Madison Avenue,
New York,New York10179
(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 classTrading Symbol(s)Name of each exchange on which registered
Common stockJPMThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-Cumulative Preferred Stock, Series DDJPM PR DThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-Cumulative Preferred Stock, Series EEJPM PR CThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-Cumulative Preferred Stock, Series GGJPM PR JThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.55% Non-Cumulative Preferred Stock, Series JJJPM PR KThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.625% Non-Cumulative Preferred Stock, Series LLJPM PR LThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.20% Non-Cumulative Preferred Stock, Series MMJPM PR MThe New York Stock Exchange
Alerian MLP Index ETNs due May 24, 2024AMJNYSE Arca, Inc.
Guarantee of Callable Fixed Rate Notes due June 10, 2032 of JPMorgan Chase Financial Company LLCJPM/32The 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 filerAccelerated filer
Non-accelerated filerSmaller 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 SeptemberJune 30, 2022: 2,933,204,8882023: 2,906,085,273



FORM 10-Q
TABLE OF CONTENTS
Page
Item 1.
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9197
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181197
182198
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Item 2.
1920
2122
4447
4548
5154
5965
6470
7683
7784
82
84
8591
8894
8995
Item 3.
193209
Item 4.
193209
Item 1.
193209
Item 1A.
193209
Item 2.
193209
Item 3.
194210
Item 4.
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Item 5.
194210
Item 6.
194211
2


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,
3Q222Q221Q224Q213Q21202220212Q231Q234Q223Q222Q2220232022
Selected income statement dataSelected income statement dataSelected income statement data
Total net revenueTotal 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 expenseTotal noninterest expense19,178 18,749 19,191 17,888 17,063 57,118 53,455 Total noninterest expense20,822 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 lossesProvision for credit losses1,537 1,101 1,463 (1,288)(1,527)4,101 (7,968)Provision for credit losses2,899 2,275 2,288 1,537 1,101 5,174 2,564 
Income before income tax expenseIncome before income tax expense12,001 10,865 10,063 12,657 14,111 32,929 46,905 Income before income tax expense17,586 15,967 13,237 12,001 10,865 33,553 20,928 
Income tax expenseIncome tax expense2,264 2,216 1,781 2,258 2,424 6,261 8,970 Income tax expense3,114 3,345 2,229 2,264 2,216 6,459 3,997 
Net incomeNet 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 dataEarnings per share dataEarnings per share data
Net income: BasicNet 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 Diluted3.12 2.76 2.63 3.33 3.74 8.51 12.02  Diluted4.75 4.10 3.57 3.12 2.76 8.85 5.39 
Average shares: BasicAverage shares: Basic2,961.2 2,962.2 2,977.0 2,977.3 2,999.9 2,966.8 3,036.4 Average shares: Basic2,943.8 2,968.5 2,962.9 2,961.2 2,962.2 2,956.1 2,969.6 
Diluted Diluted2,965.4 2,966.3 2,981.0 2,981.8 3,005.1 2,970.9 3,041.7  Diluted2,948.3 2,972.7 2,967.1 2,965.4 2,966.3 2,960.5 2,973.7 
Market and per common share dataMarket and per common share dataMarket and per common share data
Market capitalizationMarket capitalization306,520 330,237 400,379 466,206 483,748 306,520 483,748 Market capitalization422,661 380,803 393,484 306,520 330,237 422,661 330,237 
Common shares at period-endCommon shares at period-end2,933.2 2,932.6 2,937.1 2,944.1 2,955.3 2,933.2 2,955.3 Common shares at period-end2,906.1 2,922.3 2,934.3 2,933.2 2,932.6 2,906.1 2,932.6 
Book value per shareBook value per share87.00 86.38 86.16 88.07 86.36 87.00 86.36 Book value per share98.11 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 shareCash dividends declared per share1.00 1.00 1.00 1.00 1.00 3.00 2.80 Cash dividends declared per share1.00 1.00 1.00 1.00 1.00 2.00 2.00 
Selected ratios and metricsSelected ratios and metricsSelected 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 ratioOverhead ratio59 61 62 61 58 61 58 Overhead ratio50 52 55 59 61 51 62 
Loans-to-deposits ratioLoans-to-deposits ratio46 45 42 44 43 46 43 Loans-to-deposits ratio54 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 assetsTrading 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 lossesInvestment securities, net of allowance for credit losses618,246 663,718 679,460 672,232 595,132 618,246 595,132 Investment securities, net of allowance for credit losses612,203 610,075 631,162 618,246 663,718 612,203 663,718 
LoansLoans1,112,633 1,104,155 1,073,285 1,077,714 1,044,615 1,112,633 1,044,615 Loans1,300,069 1,128,896 1,135,647 1,112,633 1,104,155 1,300,069 1,104,155 
Total assetsTotal assets3,773,884 3,841,314 3,954,687 3,743,567 3,757,576 3,773,884 3,757,576 Total assets3,868,240 3,744,305 3,665,743 3,773,884 3,841,314 3,868,240 3,841,314 
DepositsDeposits2,408,615 2,471,544 2,561,207 2,462,303 2,402,353 2,408,615 2,402,353 Deposits2,398,962 2,377,253 2,340,179 2,408,615 2,471,544 2,398,962 2,471,544 
Long-term debtLong-term debt287,473 288,212 293,239 301,005 298,465 287,473 298,465 Long-term debt364,078 295,489 295,865 287,473 288,212 364,078 288,212 
Common stockholders’ equityCommon stockholders’ equity255,180 253,305 253,061 259,289 255,203 255,180 255,203 Common stockholders’ equity285,112 275,678 264,928 255,180 253,305 285,112 253,305 
Total stockholders’ equityTotal stockholders’ equity288,018 286,143 285,899 294,127 290,041 288,018 290,041 Total stockholders’ equity312,516 303,082 292,332 288,018 286,143 312,516 286,143 
HeadcountHeadcount288,474 278,494 273,948 271,025 265,790 288,474 265,790 Headcount300,066 (e)296,877 293,723 288,474 278,494 300,066 (e)278,494 
Credit quality metricsCredit quality metricsCredit quality metrics
Allowances for credit lossesAllowances 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 loansAllowance for loan losses to total retained loans1.70 %1.69 %1.69 %1.62 %1.86 %1.70 %1.86 %Allowance for loan losses to total retained loans1.75 %1.85 %1.81 %1.70 %1.69 %1.75 %1.69 %
Nonperforming assetsNonperforming 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-offsNet charge-offs727 657 582 550 524 1,966 2,315 Net charge-offs1,411 1,137 887 727 657 2,548 1,239 
Net charge-off rateNet charge-off rate0.27 %0.25 %0.24 %0.22 %0.21 %0.25 %0.32 %Net charge-off rate0.47 %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 19-2020-21 for a further discussion of these measures.
(b)Quarterly ratios are based upon annualized amounts.
(c)For the ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, the percentage represents average ratios for the three months ended SeptemberJune 30, 20222023 and 2021.2022.
(d)The capital metricsratios 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 45-5048-53 of this Form 10-Q and pages 86-96 of JPMorgan Chase’s 20212022 Form 10-K for additional information.
(e)Excluded 5,132 individuals associated with the First Republic acquisition who became employees effective July 2, 2023.
3


INTRODUCTION
The following is Management’s discussion and analysis of the financial condition and results of operations (“MD&A”) of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) for the thirdsecond quarter of 2022.2023.
This Quarterly Report on Form 10-Q for the thirdsecond quarter of 20222023 (“Form 10-Q”) should be read together with JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 20212022 (“20212022 Form 10-K”). Refer to the Glossary of terms and acronyms and line of business metrics on pages 184-192200–208 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 and10-Q; Part I, Item 1A, Risk Factors on pages 9-339-32 of the 20212022 Form 10-K10-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 SeptemberJune 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 20212022 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.
4


EXECUTIVE OVERVIEW
This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of this Form 10-Q. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, this Form 10-Q and the 20212022 Form 10-K should be read together and in their entirety.
Financial performance of JPMorgan ChaseFinancial performance of JPMorgan ChaseFinancial 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,
20222021Change20222021Change20232022Change20232022Change
Selected income statement dataSelected income statement dataSelected income statement data
Noninterest revenueNoninterest 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 incomeNet interest income17,51813,0803446,51838,71020Net interest income21,779 15,128 4442,490 29,000 47
Total net revenueTotal net revenue$32,716$29,64710$94,148$92,3922Total net revenue41,307 30,715 3479,656 61,432 30
Total noninterest expenseTotal noninterest expense19,17817,0631257,11853,4557Total noninterest expense20,822 18,749 1140,929 37,940 8
Pre-provision profitPre-provision profit13,53812,584837,03038,937(5)Pre-provision profit20,485 11,966 7138,727 23,492 65
Provision for credit lossesProvision for credit losses1,537(1,527)NM4,101(7,968)NMProvision for credit losses2,899 1,101 1635,174 2,564 102
Net incomeNet income9,73711,687(17)26,66837,935(30)Net income14,472 8,649 6727,094 16,931 60
Diluted earnings per shareDiluted earnings per share$3.12$3.74(17)$8.51$12.02(29)Diluted earnings per share4.75 2.76 728.85 5.39 64
Selected ratios and metricsSelected ratios and metricsSelected ratios and metrics
Return on common equityReturn on common equity15%18%14%20%Return on common equity20 %13 %19 %13 %
Return on tangible common equityReturn on tangible common equity18221724Return on tangible common equity25 17 24 16 
Book value per shareBook value per share$87.00$86.361$87.00$86.361Book value per share$98.11 $86.38 14$98.11 $86.38 14
Tangible book value per shareTangible book value per share69.9069.8769.9069.87Tangible book value per share79.90 69.53 1579.90 69.53 15
Capital ratios(a)
Capital ratios(a)
Capital ratios(a)
CET1 capitalCET1 capital12.5%12.9%12.5%12.9%CET1 capital13.8 %12.2 %13.8 %12.2 %
Tier 1 capitalTier 1 capital14.115.014.115.0Tier 1 capital15.4 14.1 15.4 14.1 
Total capitalTotal capital16.016.916.016.9Total capital17.3 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 2823,031 21,243 8
Markets(b)
Markets(b)
6,771 6,269 823,314 22,106 5
Markets(b)
7,018 7,790 (10)15,400 16,543 (7)
Total net revenue - managed basisTotal net revenue - managed basis$33,491 $30,441 10$96,711 $94,955 2Total net revenue - managed basis$42,401 $31,630 34$81,737 $63,220 29
(a)The capital metricsratios 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 45-5048-53 of this Form 10-Q and pages 86-96 of JPMorgan Chase’s 20212022 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 thirdsecond quarter of 20222023 versus the thirdsecond quarter of 2021,2022, unless otherwise specified.
Firmwide overview
For the thirdsecond 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 structuralcompensation 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 milliondue to the allowance for credit losses, consisting of a net addition of $937 million in wholesale, driven by loan growthadditional headcount and lending-related commitment activity, as well as the impact of updates towage 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.
5


The prior year provision for credit losseswas a net benefit of $1.5$2.9 billion, reflecting a $1.5 billion net reduction inaddition to the allowance for credit losses and $1.4 billion of $2.1net 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 SeptemberJune 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 SeptemberJune 30, 2022, a net decrease of $1.6 billion2023, relatively flat from the prior year, drivenas lower consumer nonaccrual loans due to loan sales in the prior year were offset by lowerhigher 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 acrossin 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%, reflectingdriven 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 bothCorporate related to the Firm's international consumer and small businesinitiatives.
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 versusgrew 15%, ending the prior year.second quarter of 2023 at $79.90.
As of SeptemberJune 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 51-5654-61 for additional information.
Refer to Consolidated ResultResults 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 19-2020-21 for a further discussion of each of these measures.

6


Business segment highlights
Selected business metrics for each of the Firm’s four lines of business ("LOB") are presented below for the thirdsecond 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 flat4% 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 21-4322-46 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 ninesix months of 2022,2023, consisting of:
$1.9 1.2 trillion
Total credit provided and capital raised (including loans and commitments)(a)
$196120
billion
Credit for consumers
$2417
billion
Credit for U.S. small businesses
$799520 billionCredit for corporations
$799535 billionCapital 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.

7


Recent events
On September 12, 2022, JPMorgan Chase announced that it had signedBasel 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 agreementexpanded 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 155209 of JPMorgan Chase’s 2021this Form 10-K10-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 20222023 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.
FourthIn 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 2022in 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 expectsand 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, distributionmarket 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 19-2020-21.
8


Business Developments
WarFirst 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 Ukrainean 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 durationJPMorgan Chase’s Consolidated Financial Statements as of and potential outcomesfor the period ended June 30, 2023 reflect the impact of the warFirst 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 stepscontinues to close positionsconvert certain operations, and reduce exposures connectedto integrate clients, products and services, associated with the war, and continuesFirst Republic acquisition, to assist clientsalign 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 monitorevaluate to which segments certain clients, products and manage the operational risksservices associated with the war,First Republic acquisition, including compliance withdeposits, should be allocated. Accordingly, reporting classifications and allocations may change in future periods, including across the financialFirm's segments.
Current market and economic sanctions and the increased risk of cyber attacks.conditions
Refer to Wholesale Credit PortfolioPart I, Item 1A, Risk Factors on pages 64-72, Allowance for Credit Losses9-32 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 purposes209 of this Form 10-Q “Russia” refersfor a discussion of material risk factors that could affect the Firm. These risk factors include potential impacts to exposure to clientsthe Firm associated with current market and counterpartieseconomic conditions, including inflationary pressures, higher interest rates and geopolitical tensions (including secondary effects of the Firm forwar 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 Firmadditional market disruption, government actions (including with respect to which economic or financial sanctions relatingmonetary 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 forceased 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 continuesLIBOR 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 50-51page 50 of JPMorgan Chase's 20212022 Form 10-K for additional information.

9


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 ninesix months ended September June 30, 20222023 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 85-8791-93 of this Form 10-Q and pages 150-153149-152 of JPMorgan Chase’s 20212022 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)20222021Change20222021Change
Investment banking fees$1,674 $3,282 (49)%$5,268 $9,722 (46)%
Principal transactions5,383 3,546 52 15,478 14,122 10 
Lending- and deposit-related fees1,731 1,801 (4)5,443 5,248 
Asset management, administration and commissions5,069 5,257 (4)15,671 15,480 
Investment securities losses(959)(256)(275)(1,506)(397)(279)
Mortgage fees and related income314 600 (48)1,152 1,855 (38)
Card income1,086 1,005 3,194 4,002 (20)
Other income(a)
900 1,332 (32)2,930 3,650 (20)
Noninterest revenue15,198 16,567 (8)47,630 53,682 (11)
Net interest income17,518 13,080 34 46,518 38,710 20 
Total net revenue$32,716 $29,647 10 %$94,148 $92,392 %
Revenue
Three months ended June 30,Six months ended June 30,
(in millions)20232022Change20232022Change
Investment banking fees$1,513 $1,586 (5)%$3,162 $3,594 (12)%
Principal transactions6,910 4,990 38 14,525 10,095 44 
Lending- and deposit-related fees1,828 1,873 (2)3,448 3,712 (7)
Asset management fees3,774 3,517 7,239 7,169 
Commissions and other fees1,739 1,723 3,434 3,433 — 
Investment securities losses(900)(153)(488)(1,768)(547)(223)
Mortgage fees and related income278 378 (26)499 838 (40)
Card income1,094 1,133 (3)2,328 2,108 10 
Other income(a)(b)
3,292 540 NM4,299 2,030 112 
Noninterest revenue19,528 15,587 25 37,166 32,432 15 
Net interest income21,779 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 SeptemberJune 30, 20222023 and 2021,2022, respectively, and $2.9$1.5 billion and $3.8$2.0 billion for the ninesix months ended SeptemberJune 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 bydue 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 28-3330-36 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 performancerevenue in the macro businesses, particularlyprincipal 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 Derivativesrelated to cash deployment transactions in Equity Markets.Treasury and CIO,
partially offset by
Credit Adjustments & Other was a loss of $31 million,net losses on certain legacy private equity investments in Corporate, compared with a gain of $108 millionnet gains in the prior year.
Principal transactions revenue in CIB may in certain cases havegenerally 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 lowerdecreased 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 commissionslending-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
10


pages 28-33 and pages 38-4141-44, 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 portfoliosportfolio in Treasury and CIO. Refer to Corporate segment results on pages 42-4345-46 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 23-2725-29 and Notes 56 and 1415 for additional information.

10


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 volumereflecting growth in commercial card and merchant processingCommercial 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 28-3330-36 and pages 34-3737-40, respectively, Critical Accounting Estimates on pages 91-93, and Note 56 for additional information.
Other income deincrecreasedased, 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 ofdue 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 $125down $42 billion, and the yield was 3.05%5.01%, up 125279 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 182198 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 19-2020-21 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 volatilechallenging market conditions resulted in lower issuance activity in acquisition financing, and
lower advisory fees driven bydue 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 ProductsCurrencies & Emerging Markets and Credit, andRates,
higher revenue associated with Derivatives and Prime Brokerage in Equity Markets revenue in principal transactions, primarily in Prime Finance,
largelythe increase in Markets principal transactions revenue was more than offset by a decline in Markets NII, primarily due to higher funding costs
a losslosses 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 gainlosses 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 CIOhigher 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 increaseddecreased 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 volumelending-related fees driven by the impact of the First Republic acquisition in CCB. Refer to CCB segment results on pages 23-27AWM and Note 5 for additional information.CCB.
Asset management administration and commissions revenuefees increased, predominantlyincreased driven by:by the impact of the First Republic acquisition in CCB.
Ahigher travel-related commissions in CCB,
higher asset managementsset management fees including in AWM due towas 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 andinflows.
Commissions and other feeshigher annuity sales in CCB,
partially offset by
was relatively flat. lower administration fees inRefer 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 portfoliosportfolio in both periods in Treasury and CIO.

Mortgage fees and related income
decreased driven by
11


Mortgage fees and related income decreased due to:
Home Lending, reflecting lower production revenue fromdue to a decline in volume, and lower margins and volume,
largely offset by
higher net mortgage servicing revenue resulting from
adue to lower net gaingains 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 offsetincreased driven by higher payments-related revenue, on volumereflecting growth in commercial card and merchant processingCommercial 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 ofdue 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 gainsthe 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 onlower net gains related to certain renewable energyother 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 asnet 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 $203down $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.
12


Provision for credit lossesProvision for credit lossesProvision 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)20222021Change20222021Change(in millions)20232022Change20232022Change
Consumer, excluding credit cardConsumer, excluding credit card$(69)$(31)(123)%$166 $(1,823)NMConsumer, excluding credit card$555 $62 NM$803 $235 242 %
Credit cardCredit card592 (355)NM1,828 (3,917)NMCredit card1,324 730 81 %2,546 1,236 106 
Total consumerTotal consumer523 (386)NM1,994 (5,740)NMTotal consumer1,879 792 137 3,349 1,471 128 
WholesaleWholesale1,000 (1,127)NM2,088 (2,223)NMWholesale1,007 303 232 1,811 1,088 66 
Investment securitiesInvestment securities14 (14)NM19 (5)NMInvestment securities13 117 14 180 
Total provision for credit lossesTotal provision for credit losses$1,537 $(1,527)NM$4,101��$(7,968)NMTotal 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:
$937included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments, composed of $763 million in wholesaledriven 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 lossesnet addition also reflected:
$233 million in consumer predominantly inCard was flat as the addition to the allowance resulting from higher outstanding balances wasServices, 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 inaddition 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 1213 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 consistedincluded $1.5 billion, consisting of:
$1.9 billion800 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 scenariossecond quarter of 2023, and the increasedimpact of the additional weight placed on the adverse scenarios beginning in the first quarter of 2022;2023, and
$168649 million in consumer primarily, predominantly driven by Card Services, reflecting higher outstanding balances, predominantlyloan 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 reductionreduced 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 effectssecond quarter of the pandemic gradually recede.2023.
Net charge-offs decreased $349 millionincreased $1.3 billion, predominantly driven by CCB, primarily Card reflecting the ongoing financial strength of U.S. consumers. However, median deposit balances continueServices, 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 inaddition to the allowance for credit losses and net charge-offs of $2.3$1.2 billion.



13


Noninterest expense
(in millions)Three months ended September 30,Nine months ended September 30,
20222021Change20222021Change
Compensation expense$10,539 $9,087 16 %$31,627 $29,502 %
Noncompensation expense:
Occupancy1,162 1,109 3,425 3,314 
Technology, communications and equipment(a)
2,366 2,473 (4)7,102 7,480 (5)
Professional and outside services2,481 2,523 (2)7,522 7,111 
Marketing1,017 712 43 2,818 2,089 35 
Other expense(b)
1,613 1,159 39 4,624 3,959 17 
Total noncompensation expense8,639 7,976 25,491 23,953 
Total noninterest expense$19,178 $17,063 12 %$57,118 $53,455 %
Noninterest expense
(in millions)Three months ended June 30,Six months ended June 30,
20232022Change20232022Change
Compensation expense$11,216 $10,301 %$22,892 $21,088 %
Noncompensation expense:
Occupancy1,070 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 services2,561 2,469 5,009 5,041 (1)
Marketing1,122 881 27 2,167 1,801 20 
Other expense(b)(c)
2,586 1,593 62 4,225 3,011 40 
Total noncompensation expense9,606 8,448 14 18,037 16,852 
Total noninterest expense$20,822 $18,749 11 %$40,929 $37,940 %
(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 SeptemberJune 30, 20222023 and 2021,2022, respectively, and $239$596 million and $289$192 million for the ninesix months ended SeptemberJune 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 expenseby:
additional headcount, primarily in technology and investments in the business,front office, as well as the impact of wage inflation, and
higher revenue-related expensecompensation 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, primarilyreflecting lower depreciation expense in CCB on lower autoAuto 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 investmentsrevenue-related compensation in the business,AWM, partially offset by lowera 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 autoAuto lease assets, partially offset by higher operating losses.assets.
The prior year included a $550 million contribution to the Firm's Foundation.






14


Income tax expense
(in millions)Three months ended September 30,Nine months ended September 30,
20222021Change20222021Change
Income before income tax expense$12,001 $14,111 (15)%$32,929 $46,905 (30)%
Income tax expense2,264 2,424 (7)6,261 8,970 (30)
Effective tax rate18.9 %17.2 %19.0 %19.1 %
Income tax expense
(in millions)Three months ended June 30,Six months ended June 30,
20232022Change20232022Change
Income before income tax expense$17,586 $10,865 62 %$33,553 $20,928 60 %
Income tax expense3,114 2,216 41 6,459 3,997 62 
Effective tax rate17.7 %20.4 %19.3 %19.1 %

Quarterly results
The effective tax rate increased and reflects decreased, reflecting:
the absenceimpact of anthe income tax benefitexpense associated with the First Republic acquisition that was reflected in the prior year related toestimated bargain purchase gain, which resulted in a reduction in the Firm's 2020 U.S federalFirm’s effective tax return, largelyrate 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 settlementshigher level of pre-tax income and changes in the current year weremix 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
the absenceimpact of anthe income tax benefitexpense associated with the First Republic acquisition that was reflected in the prior year related toestimated bargain purchase gain, which resulted in a reduction in the Firm's 2020 U.S. federalFirm’s effective tax return.rate.

15


CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS
Consolidated balance sheets analysis
The following is a discussion of the significant changes between SeptemberJune 30, 2022,2023, and December 31, 2021.2022.
Selected Consolidated balance sheets dataSelected Consolidated balance sheets dataSelected Consolidated balance sheets data
(in millions)(in millions)September 30,
2022
December 31,
2021
Change(in millions)June 30,
2023
December 31,
2022
Change
AssetsAssetsAssets
Cash and due from banksCash and due from banks$24,654 $26,438 (7)%Cash and due from banks$26,064 $27,697 (6)%
Deposits with banksDeposits with banks619,533 714,396 (13)Deposits with banks469,059 539,537 (13)
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements301,878 261,698 15 Federal funds sold and securities purchased under resale agreements325,628 315,592 
Securities borrowedSecurities borrowed193,216 206,071 (6)Securities borrowed163,563 185,369 (12)
Trading assetsTrading assets506,487 433,575 17 Trading assets636,996 453,799 40 
Available-for-sale securitiesAvailable-for-sale securities188,140 308,525 (39)Available-for-sale securities203,262 205,857 (1)
Held-to-maturity securities, net of allowance for credit losses430,106 363,707 18 
Held-to-maturity securitiesHeld-to-maturity securities408,941 425,305 (4)
Investment securities, net of allowance for credit lossesInvestment securities, net of allowance for credit losses618,246 672,232 (8)Investment securities, net of allowance for credit losses612,203 631,162 (3)
LoansLoans1,112,633 1,077,714 Loans1,300,069 1,135,647 14 
Allowance for loan lossesAllowance for loan losses(18,185)(16,386)11 Allowance for loan losses(21,980)(19,726)(11)
Loans, net of allowance for loan lossesLoans, net of allowance for loan losses1,094,448 1,061,328 Loans, net of allowance for loan losses1,278,089 1,115,921 15 
Accrued interest and accounts receivableAccrued interest and accounts receivable143,905 102,570 40 Accrued interest and accounts receivable111,561 125,189 (11)
Premises and equipmentPremises and equipment27,199 27,070 — Premises and equipment29,493 27,734 
Goodwill, MSRs and other intangible assetsGoodwill, MSRs and other intangible assets60,806 56,691 Goodwill, MSRs and other intangible assets64,238 60,859 
Other assetsOther assets183,512 181,498 Other assets151,346 182,884 (17)
Total assetsTotal assets$3,773,884 $3,743,567 %Total assets$3,868,240 $3,665,743 %
Cash and due from banks and deposits with banks decreased primarily as a result of lowerthe 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 increased 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 decreaseddecreased driven by Markets, reflecting lower client-driven activities partially offset by higherand 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 asdue to higher levels of debt and equity instruments relatedin 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 reflectsdecreased 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-maturityfirst quarter of 2023 (“HTM”) portfolio in the second quarter of 2022., and
The decrease in AFSlower HTM securities was also duedriven 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
The 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:
highergrowth 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 loansrevolver utilization and originations in CIB,CB,
partially offset by
lower mortgage warehouse loanssecurities-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 consistingof $1.8 billion, consisting of:
$1.61.1 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
updates to the Firm's macroeconomic forecast, including deterioration in the macroeconomic scenariossecond quarter of 2023, and the increasedimpact of the additional weight placed on the adverse scenarios beginning in the first quarter of 2022,2023, 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 reduction1.1 billion to establish the allowance for the First Republic loans in the allowance related to a decrease in uncertainty associated with borrower behavior as thesecond quarter of 2023.
16


effectsThe 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 tonet 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 ofadditional 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 predominantlydecreased primarily due to higherlower 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 %
Federal funds purchased and securities loaned or sold under repurchase agreements266,272 202,613 31 
Short-term borrowings41,022 44,027 (7)
Trading liabilities178,809 177,976 — 
Accounts payable and other liabilities286,934 300,141 (4)
Beneficial interests issued by consolidated variable interest entities (“VIEs”)19,647 12,610 56 
Long-term debt364,078 295,865 23 
Total liabilities3,555,724 3,373,411 
Stockholders’ equity312,516 292,332 
Total liabilities and stockholders’ equity$3,868,240 $3,665,743 %
Deposits increased, reflecting:
higher MSRsincreases 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
additionsan 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 agreements239,939 194,340 23 
Short-term borrowings47,866 53,594 (11)
Trading liabilities189,878 164,693 15 
Accounts payable and other liabilities300,016 262,755 14 
Beneficial interests issued by consolidated variable interest entities (“VIEs”)12,079 10,750 12 
Long-term debt287,473 301,005 (4)
Total liabilities3,485,866 3,449,440 
Stockholders’ equity288,018 294,127 (2)
Total liabilities and stockholders’ equity$3,773,884 $3,743,567 %
Deposits decreased reflecting:partially offset by
a reductionthe 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 increaseongoing attrition in CorporateCB 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 51-5654-61 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 liabilitiesincreased predominantly decreased primarily due to higherlower 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 toheld 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 51-5654-61 and Notes 1314 and 2224 for additional information, specifically Firm-sponsored VIEs and loan securitization trusts.
17


Long-term debt decreased driven by:
a decline inincreased, reflecting the fair valueimpact 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.
ReferCIO. Refer to Liquidity Risk Management on pages 51-5654-61; 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 ninesix months ended SeptemberJune 30, 20222023 and 2021.2022.
(in millions)(in millions)Nine months ended September 30,(in millions)Six months ended June 30,
20222021(in millions)20232022
Net cash provided by/(used in)Net cash provided by/(used in)
Operating activitiesOperating activities$5,897 $(7,011)Operating activities$(92,376)$24,101 
Investing activitiesInvesting activities(86,289)(29,186)Investing activities5,551 (125,811)
Financing activitiesFinancing activities16,087 278,015 Financing activities14,642 48,970 
Effect of exchange rate changes on cashEffect of exchange rate changes on cash(32,342)(9,558)Effect of exchange rate changes on cash72 (18,834)
Net increase/(decrease) in cash and due from banks and deposits with banksNet increase/(decrease) in cash and due from banks and deposits with banks$(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 borrowedassets and accrued interest and accounts receivable, partiallyreceivable.
Investing activities
In 2023, cash provided reflected net proceeds from investment securities, largely offset by higher accounts payablenet 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 proceedsoriginations of investment securities.
In 2021, cash used resulted from net loan originationsloans, 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, andlargely offset by net proceeds fromactivity 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 20212022 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 20212022 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,
2022202120232022
(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 incomeOther income$900 $663 $1,563$1,332 $690 $2,022 Other income$3,292 $990 $4,282 $540 $812 $1,352 
Total noninterest revenueTotal noninterest revenue15,198 663 15,86116,567 690 17,257 Total noninterest revenue19,528 990 20,518 15,587 812 16,399 
Net interest incomeNet interest income17,518 112 17,63013,080 104��13,184 Net interest income21,779 104 21,883 15,128 103 15,231 
Total net revenueTotal net revenue32,716 775 33,49129,647 794 30,441 Total net revenue41,307 1,094 42,401 30,715 915 31,630 
Total noninterest expenseTotal noninterest expense19,178 NA19,17817,063 NA17,063 Total noninterest expense20,822 NA20,822 18,749 NA18,749 
Pre-provision profitPre-provision profit13,538 775 14,31312,584 794 13,378 Pre-provision profit20,485 1,094 21,579 11,966 915 12,881 
Provision for credit lossesProvision for credit losses1,537 NA1,537(1,527)NA(1,527)Provision for credit losses2,899 NA2,899 1,101 NA1,101 
Income before income tax expenseIncome before income tax expense12,001 775 12,77614,111 794 14,905 Income before income tax expense17,586 1,094 18,680 10,865 915 11,780 
Income tax expenseIncome tax expense2,264 775 3,0392,424 794 3,218 Income tax expense3,114 1,094 4,208 2,216 915 3,131 
Net incomeNet income$9,737 NA$9,737$11,687 NA$11,687 Net income$14,472 NA$14,472 $8,649 NA$8,649 
Overhead ratioOverhead ratio59 %NM57 %58 %NM56 %Overhead ratio50 %NM49 %61 %NM59 %
Nine months ended September 30,Six months ended June 30,
2022202120232022
(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 incomeOther 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 revenueTotal noninterest revenue47,630 2,250 49,880 53,682 2,241 55,923 Total noninterest revenue37,166 1,857 39,023 32,432 1,587 34,019 
Net interest incomeNet interest income46,518 313 46,831 38,710 322 39,032 Net interest income42,490 224 42,714 29,000 201 29,201 
Total net revenueTotal net revenue94,148 2,563 96,711 92,392 2,563 94,955 Total net revenue79,656 2,081 81,737 61,432 1,788 63,220 
Total noninterest expenseTotal noninterest expense57,118 NA57,118 53,455 NA53,455 Total noninterest expense40,929 NA40,929 37,940 NA37,940 
Pre-provision profitPre-provision profit37,030 2,563 39,593 38,937 2,563 41,500 Pre-provision profit38,727 2,081 40,808 23,492 1,788 25,280 
Provision for credit lossesProvision for credit losses4,101 NA4,101 (7,968)NA(7,968)Provision for credit losses5,174 NA5,174 2,564 NA2,564 
Income before income tax expenseIncome before income tax expense32,929 2,563 35,492 46,905 2,563 49,468 Income before income tax expense33,553 2,081 35,634 20,928 1,788 22,716 
Income tax expenseIncome tax expense6,261 2,563 8,824 8,970 2,563 11,533 Income tax expense6,459 2,081 8,540 3,997 1,788 5,785 
Net IncomeNet Income$26,668 NA$26,668 $37,935 NA$37,935 Net Income$27,094 NA$27,094 $16,931 NA$16,931 
Overhead ratioOverhead ratio61 %NM59 %58 %NM56 %Overhead ratio51 %NM50 %62 %NM60 %
(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,
20222021Change20222021Change20232022Change20232022Change
Net interest income – reportedNet 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 adjustmentsFully taxable-equivalent adjustments112 104 313 322 (3)Fully taxable-equivalent adjustments104 103 224 201 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 assetsAverage interest-earning assets$3,344,949 $3,219,786 $3,377,390 $3,174,858 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)
952,488 894,892 957,837 881,547 
Less: Average Markets interest-earning assets(b)
1,003,877 957,304 993,283 960,556 
Average interest-earning assets excluding MarketsAverage interest-earning assets excluding Markets$2,392,461 $2,324,894 %$2,419,553 $2,293,311 %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 basisNet yield on average interest-earning assets – managed basis2.09 %1.62 %1.85 %1.64 %Net yield on average interest-earning assets – managed basis2.62 %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 MarketsNet yield on average interest-earning assets excluding Markets2.81 %1.91 %2.34 %1.92 %Net yield on average interest-earning assets excluding Markets3.83 %2.26 %3.82 %2.11 %
Noninterest revenue – reportedNoninterest revenue – reported$15,198 $16,567 (8)%$47,630 $53,682 (11)%Noninterest revenue – reported$19,528$15,58725 %$37,166$32,43215 %
Fully taxable-equivalent adjustmentsFully taxable-equivalent adjustments663 690 (4)2,250 2,241 — Fully taxable-equivalent adjustments99081222 1,8571,58717 
Noninterest revenue – managed basisNoninterest revenue – managed basis$15,861 $17,257 (8)$49,880 $55,923 (11)Noninterest revenue – managed basis$20,518$16,39925 $39,023$34,01915 
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)
7,5056,24120 15,99212,77625 
Noninterest revenue excluding MarketsNoninterest revenue excluding Markets$9,797 $12,955 (24)$31,040 $39,994 (22)Noninterest revenue excluding Markets$13,013$10,15828 $23,031$21,243
Memo: Total Markets net revenue(b)
Memo: Total Markets net revenue(b)
$6,771 $6,269 $23,314 $22,106 
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-endAveragePeriod-endAverage
(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,
20222021202220212023202220232022
Common stockholders’ equityCommon 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: GoodwillLess: Goodwill51,461 50,315 51,323 49,457 50,739 49,323 Less: Goodwill52,380 51,662 52,342 50,575 52,031 50,442 
Less: Other intangible assetsLess: Other intangible assets1,205 882 1,208 849 1,076 868 Less: Other intangible assets3,629 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 equityTangible 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 equityReturn on tangible common equityNANA18 %22 %17 %24 %Return on tangible common equityNANA25 %17 %24 %16 %
Tangible book value per shareTangible book value per share$69.90 $71.53 NANANANATangible book value per share$79.90 $73.12 NANANANA
(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 19-2020-21 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 20212022 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 20212022 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 BankingCorporate & Investment BankCommercial Banking
Three months ended June 30,Three months ended June 30,Consumer & Community BankingCorporate & Investment BankCommercial Banking
(in millions, except ratios)(in millions, except ratios)20222021Change20222021Change20222021Change(in millions, except ratios)20232022Change20232022Change20232022Change
Total net revenueTotal net revenue$14,331 $12,52114%$11,875$12,396(4)%$3,048$2,52021%Total net revenue$17,233 $12,558 (a)37 %$12,519 $12,003 (a)4%$3,988 $2,683 49 %
Total noninterest expenseTotal noninterest expense8,047 7,238116,6185,871131,1801,03214Total noninterest expense8,313 7,658 (a)6,894 6,810 (a)11,300 1,156 12 
Pre-provision profit/(loss)Pre-provision profit/(loss)6,284 5,283195,2576,525(19)1,8681,48826Pre-provision profit/(loss)8,920 4,900 82 5,625 5,193 82,688 1,527 76 
Provision for credit lossesProvision for credit losses529 (459)NM513(638)NM618(363)NMProvision for credit losses1,862 761 145 38 59 (36)1,097 209 425 
Net income/(loss)Net income/(loss)4,334 4,351(a)3,5325,647(a)(37)9461,409(a)(33)Net income/(loss)5,306 3,108 (a)71 4,092 3,717 (a)101,208 994 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 ManagementCorporateTotal
Three months ended June 30,Three months ended June 30,Asset & Wealth ManagementCorporateTotal
(in millions, except ratios)(in millions, except ratios)20222021Change20222021Change20222021Change(in millions, except ratios)20232022Change20232022Change20232022Change
Total net revenueTotal net revenue$4,539$4,3006%$(302)$(1,296)77%$33,491$30,44110%Total net revenue$4,943 $4,306 15 %$3,718$80NM$42,401 $31,630 34 %
Total noninterest expenseTotal noninterest expense3,0282,76210305 1609119,17817,06312Total noninterest expense3,163 2,919 1,15220645920,822 18,749 11 
Pre-provision profit/(loss)Pre-provision profit/(loss)1,5111,538(2)(607)(1,456)5814,31313,3787Pre-provision profit/(loss)1,780 1,387 28 2,566(126)NM21,579 12,881 68 
Provision for credit lossesProvision for credit losses(102)(60)(70)(21)(7)(200)1,537(1,527)NMProvision for credit losses145 44 230 (243)28NM2,899 1,101 163 
Net income/(loss)Net income/(loss)1,2191,196(a)2(294)(916)(a)689,73711,687(17)Net income/(loss)1,226 1,004 22 2,640(174)NM14,472 8,649 67 
ROEROE28 %33%NMNM15 %18%ROE29 %23 %NMNM20 %13 %
Nine months ended September 30,Consumer & Community BankingCorporate & Investment BankCommercial Banking
Six months ended June 30,Six months ended June 30,Consumer & Community BankingCorporate & Investment BankCommercial Banking
(in millions, except ratios)(in millions, except ratios)20222021Change20222021Change20222021Change(in millions, except ratios)20232022Change20232022Change20232022Change
Total net revenueTotal net revenue$39,174 $37,7984%$37,351$40,215(7)%$8,129$7,39610%Total net revenue$33,689 $24,740 (a)36 %$26,119 $25,579(a)2%$7,499 $5,081 48 %
Total noninterest expenseTotal noninterest expense23,490 21,502920,66119,49863,4652,98216Total noninterest expense16,378 15,313 (a)14,377 14,173(a)12,608 2,285 14 
Pre-provision profit/(loss)Pre-provision profit/(loss)15,684 16,296(4)16,69020,717(19)4,6644,4146Pre-provision profit/(loss)17,311 9,427 84 11,742 11,40634,891 2,796 75 
Provision for credit lossesProvision for credit losses1,968 (5,929)NM1,017(1,048)NM984(858)NMProvision for credit losses3,264 1,439 127 96 504(81)1,514 366 314 
Net income/(loss)Net income/(loss)10,329 16,783(a)(38)11,64216,591(a)(30)2,7904,012(a)(30)Net income/(loss)10,549 6,016 (a)75 8,513 8,089(a)52,555 1,844 39 
ROEROE27%44%14 %26%(a)14 %21%ROE39 %23 %15 %15 %17 %14 %
Nine months ended September 30,Asset & Wealth ManagementCorporateTotal
Six months ended June 30,Six months ended June 30,Asset & Wealth ManagementCorporateTotal
(in millions, except ratios)(in millions, except ratios)20222021Change20222021Change20222021Change(in millions, except ratios)20232022Change20232022Change20232022Change
Total net revenueTotal net revenue$13,160$12,4845%$(1,103)$(2,938)62%$96,711$94,9552%Total net revenue$9,727 $8,621 13 %$4,703$(801)NM$81,737 $63,220 29 %
Total noninterest expenseTotal noninterest expense8,8077,92211695 1,551(55)57,11853,4557Total noninterest expense6,254 5,779 1,31239023640,929 37,940 
Pre-provision profit/(loss)Pre-provision profit/(loss)4,3534,562(5)(1,798)(4,489)6039,59341,500(5)Pre-provision profit/(loss)3,473 2,842 22 3,391(1,191)NM40,808 25,280 61 
Provision for credit lossesProvision for credit losses96(191)NM36 58(38)4,101(7,968)NMProvision for credit losses173 198 (13)127571235,174 2,564 102 
Net income/(loss)Net income/(loss)3,2313,612(a)(11)(1,324)(3,063)(a)5726,66837,935(30)Net income/(loss)2,593 2,012 29 2,884(1,030)NM27,094 16,931 60 
ROEROE25 %34%

NMNM14%20%ROE31 %23 %NMNM19 %13 %
(a)In the first quarter of 2022,2023, the Firm changed its methodology for allocating income taxesallocations 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.

23


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, 2023June 30, 2022
Client assets (in billions)(a)
$2,862 (b)$2,177 
Number of client advisors8,367 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,
2023202220232022
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 BankingCommercial BankingAsset & Wealth ManagementCorporateTotal
Selected Income Statement Data
Revenue
Asset management fees$107 $ $ $ $107 
All other income105  174 2,762 (a)3,041 
Noninterest revenue212  174 2,762 3,148 
Net interest income619 178 129 (29)897 
Total net revenue831 178 303 2,733 4,045 
Provision for credit losses408 608 146  1,162 
Noninterest expense37   562 599 
Net income293 (327)119 2,301 2,386 
Selected Balance Sheet Data (period-end)
Loans$94,721 $39,500 $13,696 $ $147,917 (b)
Deposits68,351    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 ninesix months ended SeptemberJune 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 20212022 Form 10-K and Line of Business Metrics on page 190206 for a further discussion of the business profile of CCB.
Selected income statement dataSelected income statement dataSelected 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)20222021Change20222021Change(in millions, except ratios)20232022Change20232022Change
RevenueRevenueRevenue
Lending- and deposit-related feesLending- 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 commissions939 893 52,815 2,564 10
Asset management feesAsset management fees816 (d)684 

19 1,492 (d)1,410 
Mortgage fees and related incomeMortgage fees and related income313 596 (47)1,146 1,847 (38)Mortgage fees and related income274 377 (27)497 833 (40)
Card incomeCard income665 651 21,933 2,888 (33)Card income483 621 (f)(22)1,222 1,162 (f)
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 revenueNoninterest revenue3,762 4,138 (9)11,570 13,452 (14)Noninterest revenue3,543 3,850 (8)7,166 7,705 (7)
Net interest incomeNet interest income10,569 8,383 2627,604 24,346 13Net interest income13,690 (d)8,708 57 26,523 (d)17,035 56 
Total net revenueTotal net revenue14,331 12,521 1439,174 37,798 4Total net revenue17,233 12,558 37 33,689 24,740 36 
Provision for credit lossesProvision for credit losses529 (459)NM1,968 (5,929)NMProvision for credit losses1,862 (d)761 145 3,264 (d)1,439 127 
Noninterest expenseNoninterest expenseNoninterest expense
Compensation expenseCompensation expense3,345 3,012 119,753 8,965 9Compensation expense3,628 3,237 12 7,173 6,408 12 
Noncompensation expense(a)(b)
Noncompensation expense(a)(b)
4,702 4,226 1113,737 12,537 10
Noncompensation expense(a)(b)
4,685 (d)4,421 (f)9,205 (d)8,905 (f)
Total noninterest expenseTotal noninterest expense8,047 7,238 1123,490 21,502 9Total noninterest expense8,313 7,658 16,378 15,313 
Income before income tax expenseIncome before income tax expense5,755 5,742 13,716 22,225 (38)Income before income tax expense7,058 4,139 71 14,047 7,988 76 
Income tax expenseIncome tax expense1,421 1,391 (d)23,387 5,442 (d)(38)Income tax expense1,752 1,031 (f)70 3,498 1,972 (f)77 
Net incomeNet 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 businessRevenue by line of businessRevenue by line of business
Consumer & Business Banking(b)
$8,010 $6,157 30$20,630 $17,808 16
Banking & Wealth ManagementBanking & Wealth Management$10,936 (e)$6,502 (f)68 $20,977 (e)$12,517 (f)68 
Home LendingHome Lending920 1,400 (34)3,090 4,207 (27)Home Lending1,007 (e)1,001 1,727 (e)2,170 (20)
Card & Auto5,401 4,964 915,454 15,783 (2)
Card Services & AutoCard Services & Auto5,290 5,055 10,985 10,053 
Mortgage fees and related income details:Mortgage fees and related income details:Mortgage fees and related income details:
Production revenueProduction revenue93 614 (85)454 1,888 (76)Production revenue102 150 (32)177 361 (51)
Net mortgage servicing revenue(c)
Net mortgage servicing revenue(c)
220 (18)NM692 (41)NM
Net mortgage servicing revenue(c)
172 227 (24)320 472 (32)
Mortgage fees and related incomeMortgage fees and related income$313 $596 (47)%$1,146 $1,847 (38)%Mortgage fees and related income$274 $377 (27)%$497 $833 (40)%
Financial ratiosFinancial ratiosFinancial ratios
Return on equityReturn on equity33 %34 %27 %44 %Return on equity38 %24 %39 %23 %
Overhead ratioOverhead ratio56 58 60 57 Overhead ratio48 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 SeptemberJune 30, 20222023 and 2021,2022, respectively, and $2.0 billion$852 million and $2.5$1.3 billion for the ninesix months ended SeptemberJune 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 SeptemberJune 30, 20222023 and 2021,2022, respectively, and $191$13 million and $(363)$137 million for the ninesix months ended SeptemberJune 30, 20222023 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 taxesallocations 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 marginsrates 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 lowerhigher 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 gainasset management fees in MSR risk management compared with a net loss in the prior yearBWM 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 fromof 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 businesshigher 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 lowerauto 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, largelypredominantly 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 thenet addition to the allowance resultingfor 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 wasthe 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 withreduced borrower behavior as the effects of the pandemic gradually recede.uncertainty.
The prior year included a $950$150 million reduction inaddition to the allowance for credit losses across CCB.in Card Services.
Refer to Credit and Investment Risk Management on pages 57-7662-83 and Allowance for Credit Losses on pages 73-7580-82 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:
growthdeposit margin expansion on higher rates, partially offset by lower average deposits in depositsBWM, and
higher margins in CBB, and higher revolving loansNII in Card Services driven by increased revolving balances,
partially offset by
a reduction associated withthe 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 gaintravel-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 predominantlyfees in BWM driven by travel-related commissionsthe 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, andpartner 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 tocompensation 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 lowerauto 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 continueServices, 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 decreaseestablish the allowance for the First Republic loans and lending-related commitments, in uncertainty associated with borrower behavior as the effectssecond quarter of the pandemic gradually recede.2023.
The prior year included an $8.2 billion reduction ina $275 million addition to the allowance for credit losses across CCB.



in Card Services and Home Lending.
2426


Selected metricsSelected metricsSelected 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)20222021Change20222021Change(in millions, except headcount)20232022Change20232022Change
Selected balance sheet data (period-end)Selected balance sheet data (period-end)Selected balance sheet data (period-end)
Total assetsTotal assets$500,752 $493,169 2%$500,752 $493,169 %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 
Card170,462 143,166 19170,462 143,166 19 
Card ServicesCard Services191,353 165,494 16 191,353 165,494 16 
AutoAuto67,201 68,391 (2)67,201 68,391 (2)Auto73,587 67,842 73,587 67,842 
Total loansTotal loans442,511 431,705 3442,511 431,705 Total loans558,331 441,769 26 558,331 441,769 26 
DepositsDeposits1,173,241 1,093,852 71,173,241 1,093,852 Deposits1,173,514 (e)1,178,825 — 1,173,514 (e)1,178,825 — 
EquityEquity50,000 50,000 50,000 50,000 — Equity55,500��50,000 11 55,500 50,000 11 
Selected balance sheet data (average)Selected balance sheet data (average)Selected balance sheet data (average)
Total assetsTotal assets$498,858 $491,512 1$494,704 $487,107 Total assets$576,417 $496,177 16 $541,788 $492,592 10 
Loans:Loans:Loans:
Consumer & Business Banking30,788 43,256 (29)32,264 47,469 (32)
Banking & Wealth ManagementBanking & Wealth Management30,628 (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 
Card168,125 141,950 18158,721 137,687 15 
Card ServicesCard Services187,028 158,434 18 183,758 153,941 19 
AutoAuto66,979 67,785 (1)68,258 67,313 Auto71,083 68,569 69,920 68,908 
Total loansTotal loans442,744 434,141 2436,134 432,745 Total loans518,308 436,627 19 484,255 432,774 12 
DepositsDeposits1,174,227 1,076,323 91,169,474 1,034,947 13 Deposits1,157,309 (g)1,180,453 (2)1,135,261 (g)1,167,057 (3)
EquityEquity50,000 50,000 50,000 50,000 — Equity54,346 50,000 53,180 50,000 
HeadcountHeadcount133,803 126,586 6%133,803 126,586 %Headcount137,087 130,907 %137,087 130,907 %
(a)At SeptemberJune 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 109pages 108-109 of JPMorgan Chase's 20212022 Form 10-K for a further discussion onof the PPP.
(b)At SeptemberJune 30, 20222023 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 SeptemberJune 30, 20222023 and 2021,2022, respectively, and $8.3$4.4 billion and $14.6$9.5 billion for the ninesix months ended SeptemberJune 30, 20222023 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 metricsSelected metricsSelected 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)20222021Change20222021Change(in millions, except ratio data)20232022Change20232022Change
Credit data and quality statisticsCredit data and quality statisticsCredit 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 Banking105 66 59275 203 35
Banking & Wealth ManagementBanking & Wealth Management92 81 14 171 170 
Home LendingHome Lending(59)(74)20(196)(204)4Home Lending(28)(68)59 (46)(137)66 
Card592 495 201,678 2,233 (25)
Card ServicesCard Services1,124 580 94 2,046 1,086 88 
AutoAuto41 NM86 14 NMAuto63 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) rateNet charge-off/(recovery) rateNet 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 LendingHome Lending(0.14)(0.18)(0.16)(0.16)Home Lending(0.05)(0.16)(0.05)(0.16)
Card1.40 1.391.41 2.18
Card ServicesCard Services2.41 1.47 2.25 1.42 
AutoAuto0.24 0.020.17 0.03Auto0.36 0.11 0.38 0.13 
Total net charge-off/(recovery) rateTotal net charge-off/(recovery) rate0.62 %0.47 %0.58 %0.72 %Total net charge-off/(recovery) rate0.98 %0.57 %0.97 %0.55 %
30+ day delinquency rate30+ day delinquency rate30+ 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 %
Card1.23 1.00 1.23 1.00 
Card ServicesCard Services1.70 1.05 1.70 1.05 
AutoAuto0.75 0.46 0.75 0.46 Auto0.92 0.69 0.92 0.69 
90+ day delinquency rate - Card0.57 %0.49 %0.57 %0.49 %
90+ day delinquency rate - Card Services90+ day delinquency rate - Card Services0.84 %0.51 %0.84 %0.51 %
Allowance for loan lossesAllowance for loan lossesAllowance for loan losses
Consumer & Business Banking$722 $797 (9)$722 $797 (9)
Banking & Wealth ManagementBanking & Wealth Management$731 $697 $731 $697 
Home LendingHome Lending667 630 6667 630 6Home Lending777 (f)785 (1)777 (f)785 (1)
Card10,400 11,650 (11)10,400 11,650 (11)
Card ServicesCard Services11,600 10,400 12 11,600 10,400 12 
AutoAuto715 813 (12)715 813 (12)Auto717 740 (3)717 740 (3)
Total allowance for loan lossesTotal 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 SeptemberJune 30, 20222023 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 SeptemberJune 30, 20222023 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 110-116108-109 of JPMorgan Chase's 20212022 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 SeptemberJune 30, 2023 and 2022, and 2021, nonaccrual loans excluded $57included $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 109pages 108-109 of JPMorgan Chase's 20212022 Form 10-K for a further discussion of the PPP.
(e)(d)At SeptemberJune 30, 20222023 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 110-116108-109 of JPMorgan Chase's 20212022 Form 10-K for further information on consumer payment assistance activity.assistance.
(f)(e)At SeptemberJune 30, 20222023 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.
26
28


Selected metricsSelected metricsSelected 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)20222021Change20222021Change(in billions, except ratios and where otherwise noted)20232022Change20232022Change
Business MetricsBusiness MetricsBusiness Metrics
Number of branchesNumber of branches4,802 4,854 (1)%4,802 4,854 (1)%Number of branches4,874 4,822 %4,874 4,822 %
Active digital customers (in thousands)(a)
Active digital customers (in thousands)(a)
61,985 57,961 761,985 57,961 7
Active digital customers (in thousands)(a)
65,559 (f)60,735 65,559 (f)60,735 
Active mobile customers (in thousands)(b)
Active mobile customers (in thousands)(b)
48,904 44,333 1048,904 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 volumeDebit and credit card sales volume$395.8 $349.9 13$1,144.3 $984.5 16Debit and credit card sales volume$424.0 $397.0 $811.3 $748.5 
Total payments transaction volume (in trillions)(c)
Total payments transaction volume (in trillions)(c)
1.5 (f)1.5 — 2.9 (f)2.8 
Consumer & Business Banking
Banking & Wealth ManagementBanking & Wealth Management
Average depositsAverage deposits$1,156.9 $1,056.3 10$1,152.2 $1,015.5 13Average deposits$1,142.8 (g)$1,163.4 (2)$1,120.7 (g)$1,149.8 (3)
Deposit marginDeposit margin1.83 %1.29 %1.46 %1.29 %Deposit margin2.83 %1.31 %2.81 %1.27 %
Business Banking average loansBusiness Banking average loans$19.6 $22.8 (14)$19.8 $23.8 (17)
Business banking origination volumeBusiness banking origination volume$1.0 $0.8 17$3.2 $13.1 (f)(75)Business banking origination volume1.3 1.2 2.3 2.2 
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 advisorsNumber of client advisors5,0174,68975,0174,6897Number of client advisors5,153 4,890 5,153 4,890
Home LendingHome LendingHome Lending
Mortgage origination volume by channelMortgage origination volume by channelMortgage origination volume by channel
RetailRetail$7.8 $23.7 (67)$33.9 $69.4 (51)Retail$7.3 (h)$11.0 (34)$10.9 (h)$26.1 (58)
CorrespondentCorrespondent4.3 17.9 (76)24.8 51.1 (51)Correspondent3.9 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 15586.7 $509.3 15Third-party mortgage loans serviced (period-end)$604.5 $575.6 604.5 $575.6 
MSR carrying value (period-end)MSR carrying value (period-end)8.1 5.3 538.1 5.3 53MSR 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 x3.85 x4.93 x3.85 x
Credit Card
Credit card sales volume, excluding commercial card$272.3 $232.0 17$779.9 $639.4 22
Card ServicesCard Services
Sales volume, excluding commercial cardSales volume, excluding commercial card$294.0 $271.2 $560.2 $507.6 10 
Net revenue rateNet revenue rate9.92 %9.74 %9.79 %10.84 %Net revenue rate9.11 %9.59 %9.73 %9.72 %
Net yield on average loansNet yield on average loans9.31 9.50 9.60 9.73 
AutoAutoAuto
Loan and lease origination volumeLoan 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 assetsAverage auto operating lease assets13.5 18.8 (28)%14.9 19.5 (24)%Average auto operating lease assets11.0 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 38-4141-44 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 SeptemberJune 30, 20222023 and 2021,2022, respectively, and $73.3$19.8 billion and $134.2$58.1 billion for the ninesix months ended SeptemberJune 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 underExcludes the PPPimpact of $10.6 billion for the nineFirst Republic acquisition.
(g)For the three and six months ended SeptemberJune 30, 2021. The program2023, 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 20212022 Form 10-K and Line of Business Metrics on page 190206 for a further discussion of the business profile of CIB.
Selected income statement dataSelected income statement dataSelected 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)20222021Change20222021Change(in millions, except ratios)20232022Change20232022Change
RevenueRevenueRevenue
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 transactionsPrincipal transactions5,258 3,577 47 15,529 13,648 14 Principal transactions6,697 5,048 33 14,105 10,271 37 
Lending- and deposit-related feesLending- and deposit-related fees589 634 (7)1,871 1,860 Lending- and deposit-related fees533 641 (17)1,072 1,282 (16)
Asset management, administration and commissions1,198 1,240 (3)3,867 3,772 
Commissions and other feesCommissions and other fees1,219 1,328 (8)2,453 2,660 (8)
Card incomeCard income400 337 (c)19 715 603 (c)19 
All other incomeAll other income424 313 35 1,208 924 31 All other income396 (199)(c)NM769 293 (c)162 
Noninterest revenueNoninterest revenue9,231 9,061 27,937 30,061 (7)Noninterest revenue10,802 8,805 23 22,325 18,809 19 
Net interest incomeNet interest income2,644 3,335 (21)9,414 10,154 (7)Net interest income1,717 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 26,119 25,579 
Provision for credit lossesProvision for credit losses513 (638)NM1,017 (1,048)NMProvision for credit losses38 59 (36)96 504 (81)
Noninterest expenseNoninterest expenseNoninterest expense
Compensation expenseCompensation expense3,311 2,827 17 10,827 10,738 Compensation expense3,461 3,510 (1)7,546 7,516 — 
Noncompensation expenseNoncompensation expense3,307 3,044 9,834 8,760 12 Noncompensation expense3,433 3,300 (c)6,831 6,657 (c)
Total noninterest expenseTotal noninterest expense6,618 5,871 13 20,661 19,498 Total noninterest expense6,894 6,810 14,377 14,173 
Income before income tax expenseIncome before income tax expense4,744 7,163 (34)15,673 21,765 (28)Income before income tax expense5,587 5,134 11,646 10,902 
Income tax expenseIncome tax expense1,212 1,516 (b)(20)4,031 5,174 (b)(22)Income tax expense1,495 1,417 (c)3,133 2,813 (c)11 
Net incomeNet income$3,532 $5,647 (b)(37)%$11,642 $16,591 (b)(30)%Net income$4,092 $3,717 10 %$8,513 $8,089 %
Financial ratiosFinancial ratiosFinancial ratios
Return on equityReturn on equity13 %26 %14 %26 %(b)Return on equity15 %14 %15 %15 %
Overhead ratioOverhead ratio56 47 55 48 Overhead ratio55 57 (c)55 55 
Compensation expense as percentage of total net revenueCompensation expense as percentage of total net revenue28 23 29 27 Compensation expense as percentage of total net revenue28 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 SeptemberJune 30, 20222023 and 2021,2022, respectively and $2.1$1.8 billion and $1.5 billion for both the ninesix months ended SeptemberJune 30, 2023 and 2022, and 2021.respectively.
(b)(c)In the first quarter of 2022,2023, the Firm changed its methodology for allocating income taxesallocations 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 dataSelected income statement dataSelected 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)20222021Change20222021Change(in millions)20232022Change20232022Change
Revenue by businessRevenue by businessRevenue by business
Investment BankingInvestment Banking$1,713 $3,025 (43)%$5,121 $9,300 (45)%Investment Banking$1,494 $1,351 11 %$3,054 $3,408 (10)%
PaymentsPayments1,989 1,624 225,306 4,469 19Payments2,451 1,519 (b)61 4,847 3,420 (b)42 
LendingLending323 244 321,054 738 43Lending299 410 (27)566 731 (23)
Total BankingTotal Banking4,025 4,893 (18)11,481 14,507 (21)Total Banking4,244 3,280 29 8,467 7,559 12 
Fixed Income MarketsFixed Income Markets4,469 3,672 2214,878 13,531 10Fixed Income Markets4,567 4,711 (3)10,266 10,409 (1)
Equity MarketsEquity Markets2,302 2,597 (11)8,436 8,575 (2)Equity Markets2,451 3,079 (20)5,134 6,134 (16)
Securities ServicesSecurities Services1,110 1,126 (1)3,329 3,264 2Securities Services1,221 1,151 2,369 2,219 
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 ServicesTotal Markets & Securities Services7,850 7,503 525,870 25,708 1Total Markets & Securities Services8,275 8,723 (5)17,652 18,020 (2)
Total net revenueTotal net revenue$11,875 $12,396 (4)%$37,351 $40,215 (7)%Total net revenue$12,519 $12,003 %$26,119 $25,579 %
(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, downup 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.
Equity underwritingAdvisory fees were $290$540 million, down 72%19%, and ddue 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 volatilechallenging market conditions resulted in lower issuance activity.activity in the leveraged loan market primarily related to acquisition financing.
AdvisoryEquity underwriting fees were $848$318 million, down 31%up 30%, driven by aprimarily 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 included61%. 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 feesmargin 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 incomeand included $80 million of fair value losses on higherhedges 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, particularlyreflecting lower revenue in Currencies & Emerging Markets, Commodities and Rates partiallyas the macro businesses substantially normalized from the prior year's elevated levels of volatility and client activity, largely offset by lowerhigher 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 productsin Equity Derivatives, compared to a record thirdstrong 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 levelsfees and lower deposits, predominantly offset by improved deposit margins.average deposits.
Credit Adjustments & Other was a lossgain of $31$36 million, compared with a gainloss 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 structuralnon-compensation expense, investments in the businessas 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 impactincluding 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 57-7662-83 and Allowance for Credit Losses on pages 73-7580-82 for a further discussionsdiscussion 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 $22510%. 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.
EquityDebt underwriting fees were $784 million, down 75%, and debt underwriting fees were $2.4$1.4 billion, down 39%22%, as volatilechallenging market conditions resulted in lower issuance activity.activity in acquisition financing.
Advisory fees were $2.3$1.3 billion, down 18%12%, driven bydue 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 feesmargin 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 higherreflecting lower revenue in macro businesses, particularly in Currencies & Emerging Markets partiallyand Commodities, largely offset by lowerhigher 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 byEquity 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 levelsfees and lower average deposits.
Credit Adjustments & Other was a loss of $773$117 million, reflectingdriven 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
31


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 structuralnon-compensation expense, and investments in the business, including higher compensation, as well as higher legal expense, partiallylargely 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 impactcharge-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.
29


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)20222021Change20222021Change
Selected balance sheet data (period-end)
Total assets$1,384,618 $1,355,752 %$1,384,618 $1,355,752 %
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 loans220,961 203,647 220,961 203,647 
Equity103,000 83,000 24 103,000 83,000 24 
Selected balance sheet data (average)
Total assets$1,403,247 $1,331,240 $1,413,662 $1,332,244 
Trading assets-debt and equity instruments386,895 442,623 (13)405,655 461,728 (12)
Trading assets-derivative receivables83,084 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 $217,351 $192,902 13 
Equity103,000 83,000 24 103,000 83,000 24 
Headcount71,797 66,267 %71,797 66,267 %
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)20232022Change20232022Change
Selected balance sheet data (period-end)
Total assets$1,432,054 $1,403,558 %$1,432,054 $1,403,558 %
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 loans233,409 217,251 233,409 217,251 
Equity108,000 103,000 108,000 103,000 
Selected balance sheet data (average)
Total assets$1,461,857 $1,429,953 $1,445,848 $1,418,955 
Trading assets-debt and equity instruments533,082 411,079 30 511,047 415,190 23 
Trading assets-derivative receivables63,094 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 $227,711 $215,181 
Deposits722,818 773,664 (7)711,266 765,200 (7)
Equity108,000 103,000 108,000 103,000 
Headcount74,822 69,447 %74,822 69,447 %
(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 relatedlending-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)20222021Change20222021Change
Credit data and quality statistics
Net charge-offs/(recoveries)$17 $NM$75 $(17)NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained(a)
$583 $547 $583 $547 
Nonaccrual loans held-for-sale and loans at fair value(b)
824 1,234 (33)824 1,234 (33)
Total nonaccrual loans1,407 1,781 (21)1,407 1,781 (21)
Derivative receivables339 393 (14)339 393 (14)
Assets acquired in loan satisfactions85 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 commitments1,582 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 retained1.13 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 loans0.64 %0.87 %0.64 %0.87 %


32


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)20232022Change20232022Change
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 loans1,742 1,537 13 1,742 1,537 13 
Derivative receivables286 447 (36)286 447 (36)
Assets acquired in loan satisfactions133 84 58 133 84 58 
Total nonperforming assets$2,161 $2,068 $2,161 $2,068 
Allowance for credit losses:
Allowance for loan losses$2,531 $1,809 40 $2,531 $1,809 40 
Allowance for lending-related commitments1,207 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 retained1.30 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 loans0.75 %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 SeptemberJune 30, 20222023 and 2021,2022, respectively.
(b)At SeptemberJune 30, 20222023 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.
30


Investment banking feesInvestment banking feesInvestment 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)20222021Change20222021Change(in millions)20232022Change20232022Change
AdvisoryAdvisory$848 $1,228 (31)%$2,313 $2,824 (18)%Advisory$540 $664 (19)%$1,296 $1,465 (12)%
Equity underwritingEquity underwriting290 1,032 (72)784 3,151 (75)Equity underwriting318 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 feesTotal 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
2022202120222021
RankShareRankShareRankShareRankShareRankShare
Based on fees(a)
M&A(b)
Global#2 9.6 %#9.1 %#2 8.2 %#8.9 %#9.6 %
U.S.3 9.1 10.0 2 8.8 9.7 10.7 
Equity and equity-related(c)
Global2 5.8 9.7 2 5.8 9.3 8.8 
U.S.1 15.6 12.9 1 14.2 11.8 11.7 
Long-term debt(d)
Global2 6.4 7.5 1 7.4 8.7 8.4 
U.S.2 12.2 10.6 1 12.3 12.5 12.1 
Loan syndications
Global1 9.8 8.7 1 11.1 11.2 10.9 
U.S.1 12.8 10.2 1 11.9 13.1 12.6 
Global investment banking fees(e)
#1 8.1 %#8.8 %#1 8.1 %#9.3 %#9.3 %













33


League table results – wallet share
Three months ended June 30,Six months ended June 30,Full-year 2022
2023202220232022
RankShareRankShareRankShareRankShareRankShare
Based on fees(a)
M&A(b)
Global#2 8.7 %#7.5 %#2 9.3 %#7.4 %#8.0 %
U.S.2 11.5 8.3 2 11.8 8.4 9.0 
Equity and equity-related(c)
Global1 7.6 6.0 1 7.1 5.6 5.7 
U.S.1 14.7 15.1 1 13.3 13.2 13.8 
Long-term debt(d)
Global2 6.8 7.2 1 6.7 7.6 6.9 
U.S.2 10.4 12.5 2 10.0 12.3 12.2 
Loan syndications
Global1 12.4 12.2 1 12.6 11.3 11.0 
U.S.1 15.7 13.9 1 16.1 11.9 12.7 
Global investment banking fees(e)
#1 8.3 %#8.1 %#1 8.4 %#7.9 %#7.8 %
(a)Source: Dealogic as of OctoberJuly 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.

































31
34


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 20212022 Form 10-K for further information.
For the periods presented below, the predominantprimary 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,
2022202120232022

(in millions)

(in millions)
Fixed Income MarketsEquity
Markets
Total
Markets
Fixed Income MarketsEquity
Markets
Total
Markets

(in millions)
Fixed Income MarketsEquity
Markets
Total
Markets
Fixed Income MarketsEquity
Markets
Total
Markets
Principal transactionsPrincipal 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 feesLending- and deposit-related fees75 7 82 83 87 Lending- and deposit-related fees76 7 83 76 80 
Asset management, administration and commissions141 458 599 127 467 594 
Commissions and other feesCommissions and other fees151 472 623 128 516 644 
All other incomeAll other income211 (11)200 173 (40)133 All other income369 (40)329 166 (31)135 
Noninterest revenueNoninterest revenue3,540 2,524 6,064 2,007 2,295 4,302 Noninterest revenue3,716 3,789 7,505 3,304 2,937 6,241 
Net interest income929 (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 revenueTotal 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,
2022202120232022

(in millions)

(in millions)
Fixed Income MarketsEquity
Markets
Total
Markets
Fixed Income MarketsEquity
Markets
Total
Markets

(in millions)
Fixed Income MarketsEquity
Markets
Total
Markets
Fixed Income MarketsEquity
Markets
Total
Markets
Principal transactionsPrincipal 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 feesLending- and deposit-related fees229 15 244 234 12 246 Lending- and deposit-related fees146 14 160 154 162 
Asset management, administration and commissions425 1,535 1,960 377 1,496 1,873 
Commissions and other feesCommissions and other fees295 994 1,289 284 1,063 1,347 
All other incomeAll other income494 (96)398 532 (60)472 All other income700 (54)646 283 (71)212 
Noninterest revenueNoninterest revenue10,584 8,256 18,840 8,256 7,673 15,929 Noninterest revenue8,659 7,333 15,992 7,044 5,732 12,776 
Net interest income4,294 180 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 revenueTotal 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)20222021Change20222021Change
Assets under custody (“AUC”) by asset class (period-end)
(in billions):
Fixed Income$14,025 $15,799 (11)%$14,025 $15,799 (11)%
Equity9,767 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)20232022Change20232022Change
Assets under custody (“AUC”) by asset class (period-end)
(in billions):
Fixed Income$14,708 $14,720 — %$14,708 $14,720 — %
Equity11,892 10,359 15 11,892 10,359 15 
Other(a)
3,824 3,500 3,824 3,500 
Total AUC$30,424 $28,579 $30,424 $28,579 
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 totalFirmwide 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 metricsInternational metricsInternational 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)20222021Change20222021Change(in millions, except where otherwise noted)20232022Change20232022Change
Total net revenue(a)
Total net revenue(a)
Total net revenue(a)
Europe/Middle East/AfricaEurope/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-PacificAsia-Pacific2,060 1,973 6,068 6,026 Asia-Pacific1,889 2,023 (7)4,022 4,008 — 
Latin America/CaribbeanLatin America/Caribbean549 526 1,690 1,480 14 Latin America/Caribbean543 464 17 1,105 1,141 (3)
Total international net revenueTotal international net revenue6,262 5,700 10 20,383 18,551 10 Total international net revenue6,245 6,767 (8)13,208 14,121 (6)
North AmericaNorth America5,613 6,696 (16)16,968 21,664 (22)North America6,274 5,236 (c)20 12,911 11,458 (c)13 
Total net revenueTotal net revenue$11,875 $12,396 (4)$37,351 $40,215 (7)Total net revenue$12,519 $12,003 $26,119 $25,579 
Loans retained (period-end)(a)
Loans retained (period-end)(a)
Loans retained (period-end)(a)
Europe/Middle East/AfricaEurope/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-PacificAsia-Pacific16,670 14,544 15 16,670 14,544 15 Asia-Pacific14,789 16,427 (10)14,789 16,427 (10)
Latin America/CaribbeanLatin America/Caribbean8,035 6,495 24 8,035 6,495 24 Latin America/Caribbean8,704 7,961 8,704 7,961 
Total international loansTotal international loans62,949 53,961 17 62,949 53,961 17 Total international loans63,245 59,912 63,245 59,912 
North AmericaNorth America117,655 97,250 21 117,655 97,250 21 North America131,205 111,307 18 131,205 111,307 18 
Total loans retainedTotal 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/AfricaEurope/Middle East/Africa$240,548 $245,895 (2)$253,300 $243,279 Europe/Middle East/Africa$228,490 $272,919 (16)$229,655 $259,781 (12)
Asia-PacificAsia-Pacific123,024 131,110 (6)129,059 131,836 (2)Asia-Pacific128,253 129,514 (1)127,146 132,126 (4)
Latin America/CaribbeanLatin America/Caribbean38,231 47,374 (19)41,207 46,607 (12)Latin America/Caribbean38,911 41,785 (7)38,825 42,720 (9)
Total internationalTotal international$401,803 $424,379 (5)$423,566 $421,722 — Total international$395,654 $444,218 (11)$395,626 $434,627 (9)
North AmericaNorth America267,412 289,997 (8)276,529 292,317 (5)North America251,825 278,170 (9)245,016 281,164 (13)
Total client deposits and other third-party liabilitiesTotal 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 AmericaNorth America$18,285 $20,792 (12)$18,285 $20,792 (12)North America$20,512 $18,816 $20,512 $18,816 
All other regionsAll other regions8,872 11,170 (21)8,872 11,170 (21)All other regions9,912 9,763 9,912 9,763 
Total AUCTotal AUC$27,157 $31,962 (15)%$27,157 $31,962 (15)%Total AUC$30,424 $28,579 %$30,424 $28,579 %
(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.
33
36


COMMERCIAL BANKING
Refer to pages 73-75 of JPMorgan Chase’s 20212022 Form 10-K and Line of Business Metrics on page 191207 for a discussion of the business profile of CB.
Selected income statement dataSelected income statement dataSelected 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)20222021Change20222021Change(in millions)20232022Change20232022Change
RevenueRevenueRevenue
Lending- and deposit-related feesLending- and deposit-related fees$288 $355 (19)%$1,000 $1,036 (3)%Lending- and deposit-related fees$249 $348 (28)%$476 $712 (33)%
Card incomeCard income201 170 18 374 337 11 
All other incomeAll other income548 633 (13)1,607 1,819 (12)All other income385 386 — 766 722 
Noninterest revenueNoninterest revenue836 988 (15)2,607 2,855 (9)Noninterest revenue835 904 (8)1,616 1,771 (9)
Net interest incomeNet interest income2,212 1,532 44 5,522 4,541 22 Net interest income3,153 (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 lossesProvision for credit losses618 (363)NM984 (858)NMProvision for credit losses1,097 (b)209 425 1,514 (b)366 314 
Noninterest expenseNoninterest expenseNoninterest expense
Compensation expenseCompensation expense577 511 13 1,689 1,477 14 Compensation expense656 559 17 1,297 1,112 17 
Noncompensation expenseNoncompensation expense603 521 16 1,776 1,505 18 Noncompensation expense644 597 1,311 1,173 12 
Total noninterest expenseTotal noninterest expense1,180 1,032 14 3,465 2,982 16 Total noninterest expense1,300 1,156 12 2,608 2,285 14 
Income before income tax expenseIncome before income tax expense1,250 1,851 (32)3,680 5,272 (30)Income before income tax expense1,591 1,318 21 3,377 2,430 39 
Income tax expenseIncome tax expense304 442 (b)(31)890 1,260 (b)(29)Income tax expense383 324 18 822 586 40 
Net incomeNet 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 SeptemberJune 30, 2023 and 2022, respectively and 2021 and $222$171 million and $231$142 million for the ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, respectively.
(b)InIncludes the first quarterimpact of 2022, the Firm changed its methodologyFirst 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)20222021Change20222021Change
Revenue by product
Lending$1,176 $1,138 %$3,339 $3,478 (4)%
Payments1,568 947 66 3,754 2,704 39 
Investment banking(a)
274 416 (34)816 1,136 (28)
Other30 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 Banking1,052 878 20 2,809 2,580 
Commercial Real Estate Banking624 602 1,795 1,805 (1)
Other6 23 (74)10 69 (86)
Total net revenue$3,048 $2,520 21 %$8,129 $7,396 10 %
Financial ratios
Return on equity14 %22 %14 %21 %
Overhead ratio39 41 43 40 


Selected income statement data (continued)
Three months ended June 30,Six months ended June 30,
(in millions, except ratios)20232022Change20232022Change
Revenue by product
Lending$1,480 (c)$1,058 40 %$2,702 (c)$2,163 25 %
Payments2,248 1,253 79 4,276 2,275 88 
Investment banking(a)
213 234 (9)463 453 
Other47 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 
Revenue by client segments
Middle Market Banking$1,916 (d)$1,169 64 $3,597 (d)$2,149 67 
Corporate Client Banking1,229 927 33 2,405 1,757 37 
Commercial Real Estate Banking806 (d)590 37 1,448 (d)1,171 24 
Other37 (3)NM49 NM
Total net revenue$3,988 $2,683 49 %$7,499 $5,081 48 %
Financial ratios
Return on equity16 %15 %17 %14 %
Overhead ratio33 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 ofdeposit margin expansion on higher deposit marginsrates and growth inhigher average loans, predominantlypartially 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%, largelypredominantly driven by higher structural and volume- and revenue-relatedcompensation 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 inthe First Republic loans and lending-related commitments and the impact ofcommitments. The net addition also reflected $389 million driven by updates to the Firm's macroeconomic scenarios, compared with acertain assumptions related to office real estate, as well as net benefit of $363 milliondowngrade activity in theMiddle Market Banking.
The prior year.year provision was $209 million.
Refer to Credit and Investment Risk Management on pages 57-7662-83 and Allowance for Credit Losses on pages 73-7580-82 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 ofdeposit margin expansion on higher deposit marginsrates and growth inhigher average loans, largelypartially 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, indeposit-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%, predominantlylargely driven by higher volume- and revenue-related and structuralcompensation 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 netan addition of $608 million to establish the allowance for credit losses, driven by growth inthe First Republic loans and lending-related commitments, andin the impactsecond 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 acertain assumptions related to office real estate, as well as net benefit of $858 million in thedowngrade activity.
The prior year.year provision was $366 million.

3538


Selected metricsSelected metricsSelected 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)20222021Change20222021Change(in millions, except headcount)20232022Change20232022Change
Selected balance sheet data (period-end)Selected balance sheet data (period-end)Selected balance sheet data (period-end)
Total assetsTotal assets$247,485 $227,670 %$247,485 $227,670 %Total assets$305,280 $242,456 26 %$305,280 $242,456 26 %
Loans:Loans:Loans:
Loans retainedLoans retained231,829 201,283 15 231,829 201,283 15 Loans retained282,124 (b)223,541 26 282,124 (b)223,541 26 
Loans held-for-sale and loans at fair valueLoans held-for-sale and loans at fair value137 3,412 (96)137 3,412 (96)Loans held-for-sale and loans at fair value1,540 566 172 1,540 566 172 
Total loansTotal loans$231,966 $204,695 13 $231,966 $204,695 13 Total loans$283,664 $224,107 27 $283,664 $224,107 27 
EquityEquity25,000 24,000 25,000 24,000 Equity30,000 25,000 20 30,000 25,000 20 
Period-end loans by client segmentPeriod-end loans by client segmentPeriod-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 BankingCorporate Client Banking52,940 45,107 17 52,940 45,107 17 Corporate Client Banking60,511 49,503 22 60,511 49,503 22 
Commercial Real Estate BankingCommercial Real Estate Banking107,241 100,458 107,241 100,458 Commercial Real Estate Banking142,897 (c)105,982 35 142,897 (c)105,982 35 
OtherOther78 212 (63)78 212 (63)Other371 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 assetsTotal assets$246,318 $222,760 11 $239,772 $224,955 Total assets$290,875 $239,381 22 $273,269 $236,444 16 
Loans:Loans:Loans:
Loans retainedLoans retained227,539 199,789 14 218,255 202,002 Loans retained270,091 (d)218,478 24 253,542 (d)213,536 19 
Loans held-for-sale and loans at fair valueLoans held-for-sale and loans at fair value1,589 2,790 (43)1,578 2,840 (44)Loans held-for-sale and loans at fair value726 1,004 (28)939 1,572 (40)
Total loansTotal loans$229,128 $202,579 13 $219,833 $204,842 Total loans$270,817 $219,482 23 $254,481 $215,108 18 
Average loans by client segmentAverage loans by client segmentAverage loans by client segment
Middle Market BankingMiddle 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 BankingCorporate Client Banking52,432 43,330 21 48,645 44,154 10 Corporate Client Banking59,159 47,832 24 57,877 46,720 24 
Commercial Real Estate BankingCommercial Real Estate Banking106,546 100,120 104,659 100,213 Commercial Real Estate Banking133,394 (e)104,890 27 120,838 (e)103,701 17 
OtherOther148 97 53 142 232 (39)Other227 120 89 219 137 60 
Total loansTotal loans$229,128 $202,579 13 $219,833 $204,842 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 
DepositsDeposits275,196 300,339 (8)270,595 308,518 (12)
EquityEquity25,000 24,000 25,000 24,000 Equity29,505 25,000 18 29,005 25,000 16 
HeadcountHeadcount14,299 12,584 14 %14,299 12,584 14 %Headcount15,991 13,811 16 %15,991 13,811 16 %
(a)At SeptemberJune 30, 20222023 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 109pages 108-109 of JPMorgan Chase's 20212022 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.
36
39


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)20222021Change20222021Change(in millions, except ratios)20232022Change20232022Change
Credit data and quality statisticsCredit data and quality statisticsCredit data and quality statistics
Net charge-offs/(recoveries)Net charge-offs/(recoveries)$42 $31 35 %$49 $63 (22)%Net charge-offs/(recoveries)$100 $NM$137 $NM
Nonperforming assetsNonperforming assetsNonperforming 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 valueNonaccrual loans held-for-sale and loans at fair value — —  — — Nonaccrual loans held-for-sale and loans at fair value — —  — — 
Total nonaccrual loansTotal nonaccrual loans$836 $735 14 $836 $735 14 Total nonaccrual loans$1,068 $761 40 $1,068 $761 40 
Assets acquired in loan satisfactionsAssets acquired in loan satisfactions7 16 (56)7 16 (56)Assets acquired in loan satisfactions NM NM
Total nonperforming assetsTotal 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 lossesAllowance 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 commitmentsAllowance for lending-related commitments864 711 22 864 711 22 Allowance for lending-related commitments801 725 10 801 725 10 
Total allowance for credit lossesTotal 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 retainedAllowance for loan losses to period-end loans retained1.32 1.17 1.32 1.17 Allowance for loan losses to period-end loans retained1.68 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 loansNonaccrual loans to period-end total loans0.36 0.36 0.36 0.36 Nonaccrual loans to period-end total loans0.38 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 SeptemberJune 30, 20222023 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 SeptemberAs of June 30, 2022, nonaccrual loans excluded $272023, 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.
37
40


ASSET & WEALTH MANAGEMENT
Refer to pages 76-78 of JPMorgan Chase’s 20212022 Form 10-K and Line of Business Metrics on pages 191-192207–208 for a discussion of the business profile of AWM.
Selected income statement dataSelected income statement dataSelected 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,
20222021Change20222021Change20232022Change20232022Change
RevenueRevenueRevenue
Asset management, administration and commissions$3,044 $3,096 (2)%$9,196 $9,003 %
Asset management feesAsset management fees$2,930 $2,797 %$5,691 $5,696 — %
Commissions and other feesCommissions and other fees196 240 (18)377 456 (17)
All other incomeAll other income82 216 (62)253 620 (59)All other income232 (a)47 394 623 (a)171 264 
Noninterest revenueNoninterest revenue3,126 3,312 (6)9,449 9,623 (2)Noninterest revenue3,358 3,084 6,691 6,323 
Net interest incomeNet interest income1,413 988 43 3,711 2,861 30 Net interest income1,585 (a)1,222 30 3,036 (a)2,298 32 
Total net revenueTotal net revenue4,539 4,300 13,160 12,484 Total net revenue4,943 4,306 15 9,727 8,621 13 
Provision for credit lossesProvision for credit losses(102)(60)(70)96 (191)NMProvision for credit losses145 (a)44 230 173 (a)198 (13)
Noninterest expenseNoninterest expenseNoninterest expense
Compensation expenseCompensation expense1,649 1,387 19 4,687 4,132 13 Compensation expense1,746 1,508 16 3,481 3,038 15 
Noncompensation expenseNoncompensation expense1,379 1,375 — 4,120 3,790 Noncompensation expense1,417 1,411 — 2,773 2,741 
Total noninterest expenseTotal noninterest expense3,028 2,762 10 8,807 7,922 11 Total noninterest expense3,163 2,919 6,254 5,779 
Income before income tax expenseIncome before income tax expense1,613 1,598 4,257 4,753 (10)Income before income tax expense1,635 1,343 22 3,300 2,644 25 
Income tax expenseIncome tax expense394 402 (a)(2)1,026 1,141 (a)(10)Income tax expense409 339 21 707 632 12 
Net incomeNet income$1,219 $1,196 (a)$3,231 $3,612 (a)(11)Net income$1,226 $1,004 22 $2,593 $2,012 29 
Revenue by line of businessRevenue by line of businessRevenue by line of business
Asset ManagementAsset Management$2,209 $2,337 (5)$6,660 $6,758 (1)Asset Management$2,128 $2,137 — $4,562 $4,451 
Global Private BankGlobal Private Bank2,330 1,963 19 6,500 5,726 14 Global Private Bank2,815 (a)2,169 30 5,165 (a)4,170 24 
Total net revenueTotal net revenue$4,539 $4,300 %$13,160 $12,484 %Total net revenue$4,943 $4,306 15 %$9,727 $8,621 13 %
Financial ratiosFinancial ratiosFinancial ratios
Return on equityReturn on equity28 %33 %25 %34 %Return on equity29 %23 %31 %23 %
Overhead ratioOverhead ratio67 64 

67 63 Overhead ratio64 68 64 67 
Pre-tax margin ratio:Pre-tax margin ratio:Pre-tax margin ratio:
Asset ManagementAsset Management31 36 31 36 Asset Management27 29 32 31 
Global Private BankGlobal Private Bank40 38 34 40 Global Private Bank37 33 35 30 
Asset & Wealth ManagementAsset & Wealth Management36 37 32 38 Asset & Wealth Management33 31 34 31 
(a)InIncludes the first quarterimpact of 2022, the Firm changed its methodologyFirst 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%, largelyflat 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 comparedNII 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 brokeragehigher 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 expensecompensation, 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.
Refer to Credit and Investment Risk Management on pages 57-7662-83 and Allowance for Credit Losses on pages 73-7580-82 for further discussions of the credit portfolios and the allowance for credit losses.
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, downup 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 gainsoffset 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 depositsdeposit margin expansion reflecting higher rates on lower average deposit balances, and
higher lending-related fees and average loans as well as improved marginsdriven 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 expensecompensation, 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 millionto 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 metricsSelected metricsSelected 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)20222021Change20222021Change(in millions, except ranking data, headcount and ratios)20232022Change20232022Change
% 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 year1 year70 60 70 60 1 year59 64 59 64 
3 years3 years76 78 76 78 3 years66 73 66 73 
5 years5 years84 78 84 78 5 years80 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 assetsTotal assets$232,303 $221,702 %$232,303 $221,702 %Total assets$247,118 $235,553 %$247,118 $235,553 %
LoansLoans214,989 202,871 214,989 202,871 Loans222,493 (d)218,841 222,493 (d)218,841 
DepositsDeposits242,315 242,309 — 242,315 242,309 — Deposits199,763 257,437 (22)199,763 257,437 (22)
EquityEquity17,000 14,000 21 17,000 14,000 21 Equity17,000 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 assetsTotal assets$232,748 $219,022 $233,209 $213,679 Total assets$238,987 $234,565 $233,933 $233,444 — 
LoansLoans216,714 200,635 216,065 194,888 11 Loans219,469 (e)216,846 215,491 (e)215,735 — 
DepositsDeposits253,026 229,710 10 269,754 218,742 23 Deposits211,872 268,861 (21)218,078 278,256 (22)
EquityEquity17,000 14,000 21 17,000 14,000 21 Equity16,670 17,000 (2)16,337 17,000 (4)
HeadcountHeadcount25,769 22,051 17 25,769 22,051 17 Headcount26,931 23,981 12 26,931 23,981 12 
Number of Global Private Bank client advisorsNumber of Global Private Bank client advisors3,110 2,646 18 3,110 2,646 18 Number of Global Private Bank client advisors3,214 2,866 12 3,214 2,866 12 
Credit data and quality statistics(c)
Credit data and quality statistics(c)
Credit data and quality statistics(c)
Net charge-offs/(recoveries)Net charge-offs/(recoveries)$(13)$(1)NM$(5)$22 NMNet charge-offs/(recoveries)$2 $(78)$ $NM
Nonaccrual loansNonaccrual loans467 686 (32)467 686 (32)Nonaccrual loans615 620 (1)615 620 (1)
Allowance for credit losses:Allowance for credit losses:Allowance for credit losses:
Allowance for loan lossesAllowance for loan losses$461 $402 15$461 $402 15 Allowance for loan losses$649 $547 19 $649 $547 19 
Allowance for lending-related commitmentsAllowance for lending-related commitments21 20 521 20 Allowance for lending-related commitments39 22 77 39 22 77 
Total allowance for credit lossesTotal 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) rateNet charge-off/(recovery) rate(0.02)%— % %0.02 %Net charge-off/(recovery) rate %0.02 % %0.01 %
Allowance for loan losses to period-end loansAllowance for loan losses to period-end loans0.21 0.20 0.21 0.20 Allowance for loan losses to period-end loans0.29 0.25 0.29 0.25 
Allowance for loan losses to nonaccrual loansAllowance for loan losses to nonaccrual loans99 59 99 59 Allowance for loan losses to nonaccrual loans106 88 106 88 
Nonaccrual loans to period-end loansNonaccrual loans to period-end loans0.22 0.34 0.22 0.34 Nonaccrual loans to period-end loans0.28 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 assetsAssets 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 lowercontinued 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 assetsClient assetsClient assets
As of September 30,As of June 30,
(in billions)(in billions)20222021Change(in billions)20232022Change
Assets by asset classAssets by asset classAssets by asset class
LiquidityLiquidity$615 $685 (10)%Liquidity$826 $654 26 %
Fixed incomeFixed income612 695 (12)Fixed income718 624 15 
EquityEquity609 725 (16)Equity792 641 24 
Multi-assetMulti-asset577 702 (18)Multi-asset647 615 
AlternativesAlternatives203 189 Alternatives205 209 (2)
Total assets under managementTotal assets under management2,616 2,996 (13)Total assets under management3,188 2,743 16 
Custody/brokerage/administration/depositsCustody/brokerage/administration/deposits1,207 1,100 10 Custody/brokerage/administration/deposits1,370 (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 segmentAssets by client segmentAssets by client segment
Private BankingPrivate Banking$698 $773 (10)Private Banking$881 $712 24 
Global InstitutionalGlobal Institutional1,209 1,375 (12)Global Institutional1,423 1,294 10 
Global FundsGlobal Funds709 848 (16)Global Funds884 737 20 
Total assets under managementTotal assets under management$2,616 $2,996 (13)Total assets under management$3,188 $2,743 16 
Private BankingPrivate Banking$1,848 $1,817 Private Banking$2,170 (b)$1,715 27 
Global InstitutionalGlobal Institutional1,261 1,425 (12)Global Institutional1,497 1,339 12 
Global FundsGlobal Funds714 854 (16)Global Funds891 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)2022202120222021
Assets under management rollforward
Beginning balance$2,743 $2,987 $3,113 $2,716 
Net asset flows:
Liquidity(36)(11)(88)48 
Fixed income9 11 5 36 
Equity6 16 26 67 
Multi-asset(5)(2)11 
Alternatives2 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 impacts40 (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)2023202220232022
Assets under management rollforward
Beginning balance$3,006 $2,960 $2,766 $3,113 
Net asset flows:
Liquidity60 — 153 (52)
Fixed income37 (1)63 (4)
Equity20 42 20 
Multi-asset3 (3)1 
Alternatives1 2 
Market/performance/other impacts61 (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 flows112 (1)264 (6)
Market/performance/other impacts99 (317)246 (491)
Ending balance, June 30$4,558 $3,798 $4,558 $3,798 







4043


InternationalInternationalInternational
Three months ended September 30,Nine months ended September 30,Three months ended June 30,Six months ended June 30,
(in millions)(in millions)20222021Change20222021Change(in millions)20232022Change20232022Change
Total net revenue (a)
Total net revenue (a)
Total net revenue(a)
Europe/Middle East/AfricaEurope/Middle East/Africa$868 $905 (4)%$2,357 $2,627 (10)%Europe/Middle East/Africa$853 $719 19 %$1,700 $1,489 14 %
Asia-PacificAsia-Pacific458 503 (9)1,370 1,513 (9)Asia-Pacific497 452 10 974 912 
Latin America/CaribbeanLatin America/Caribbean237 229 736 659 12 Latin America/Caribbean247 248 — 487 499 (2)
Total international net revenueTotal international net revenue1,563 1,637 (5)4,463 4,799 (7)Total international net revenue1,597 1,419 13 3,161 2,900 
North AmericaNorth America2,976 2,663 12 8,697 7,685 13 North America3,346 2,887 16 6,566 5,721 15 
Total net revenue(a)
Total net revenue(a)
$4,539 $4,300 %$13,160 $12,484 %
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)20222021Change20222021Change(in billions)20232022Change20232022Change
Assets under managementAssets under managementAssets under management
Europe/Middle East/AfricaEurope/Middle East/Africa$455 $548 (17)%$455 $548 (17)%Europe/Middle East/Africa$527 $481 10 %$527 $481 10 %
Asia-PacificAsia-Pacific205 246 (17)205 246 (17)Asia-Pacific252 214 18 252 214 18 
Latin America/CaribbeanLatin America/Caribbean67 76 (12)67 76 (12)Latin America/Caribbean79 68 16 79 68 16 
Total international assets under managementTotal international assets under management727 870 (16)727 870 (16)Total international assets under management858 763 12 858 763 12 
North AmericaNorth America1,889 2,126 (11)1,889 2,126 (11)North America2,330 1,980 18 2,330 1,980 18 
Total assets under managementTotal 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 assetsClient assetsClient assets
Europe/Middle East/AfricaEurope/Middle East/Africa$566 $669 (15)$566 $669 (15)Europe/Middle East/Africa$663 $595 11 $663 $595 11 
Asia-PacificAsia-Pacific306 371 (18)306 371 (18)Asia-Pacific378 324 17 378 324 17 
Latin America/CaribbeanLatin America/Caribbean181 181 — 181 181 — Latin America/Caribbean217 184 18 217 184 18 
Total international client assetsTotal international client assets1,053 1,221 (14)1,053 1,221 (14)Total international client assets1,258 1,103 14 1,258 1,103 14 
North AmericaNorth America2,770 2,875 (4)2,770 2,875 (4)North America3,300 2,695 22 3,300 2,695 22 
Total client assetsTotal 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 20212022 Form 10-K for a discussion of Corporate.
Selected income statement and balance sheet dataSelected income statement and balance sheet dataSelected 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)20222021Change20222021Change(in millions, except headcount)20232022Change20232022Change
RevenueRevenueRevenue
Principal transactionsPrincipal transactions$(76)$(103)26 %$(220)$161 NMPrincipal transactions$113 $17 NM$195 $(144)NM
Investment securities lossesInvestment securities losses(959)(256)(275)%(1,506)(397)(279)%Investment securities losses(900)(153)(488)%(1,768)(547)(223)%
All other incomeAll other income(59)117 NM43 168 (74)All other income2,767 (c)(108)NM2,798 (c)102 NM
Noninterest revenueNoninterest revenue(1,094)(242)(352)(1,683)(68)NMNoninterest revenue1,980 (244)NM1,225 (589)NM
Net interest incomeNet interest income792 (1,054)NM580 (2,870)NMNet interest income1,738 (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 NM4,703 (801)NM
Provision for credit lossesProvision for credit losses(21)(7)(200)36 58 (38)Provision for credit losses(243)28 NM127 57 123 
Noninterest expenseNoninterest expense305 160 91 695 1,551 (55)Noninterest expense1,152 (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)NM3,264 (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 

NM380 (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 $(1,030)NM
Total net revenueTotal net revenueTotal net revenue
Treasury and CIOTreasury and CIO$(180)$(1,198)85 $(1,042)$(2,984)65 Treasury and CIO$1,261 $82 NM$2,367 $(862)NM
Other CorporateOther Corporate(122)(98)(24)(61)46 NMOther Corporate2,457 (c)(2)NM2,336 (c)61 NM
Total net revenueTotal net revenue$(302)$(1,296)77 $(1,103)$(2,938)62 Total net revenue$3,718 $80 NM$4,703 $(801)NM
Net income/(loss)Net income/(loss)Net income/(loss)
Treasury and CIOTreasury and CIO$(68)$(998)93 $(728)$(2,629)72 Treasury and CIO$1,057 $88 NM$1,681 $(660)NM
Other CorporateOther Corporate(226)82 (c)NM(596)(434)(c)(37)Other Corporate1,583 (c)(262)

NM1,203 (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 NM14,449 (b)546 NMDeposits (period-end)(b)21,083 

13,191 60 21,083 13,191 60 
HeadcountHeadcount42,806 38,302 12 %42,806 

38,302 12 %Headcount45,235 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 SeptemberJune 30, 20222023 and 2021,2022, respectively, and $177$101 million and $197$118 million for the ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, respectively.
(b)Predominantly relates to the Firm's international consumer growth initiatives.
(c)InIncludes the first quarterimpacts of 2022, the Firm changed its methodologyFirst Republic acquisition. Refer to Note 28 for allocating incomeadditional information.
(d)Income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conformassociated with the current presentation.First Republic acquisition are reflected in the estimated bargain purchase gain.

Quarterly results
Net lossincome 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 costsexpense 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 ratesprior 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
42


to Treasury and CIO on certain revenues and expenses was
45


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 drivenexpense associated with the First Republic acquisition reflected in the estimated bargain purchase gain, partially offset by benefits related to tax audit settlements and the changechanges in the level and mix of income and expenses subject to U.S. federal and state and local taxes that also impactedimpact the Firm'sFirm’s tax reserves.
Year-to-date results
Net lossincome 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 withrepositioning 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 CIOhigher revenue related to cash deployment transactions which were more than offset byin Treasury and CIO, and
higher losses in the related net interest income earnedprior 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
higherlower net gains related to certain other Corporate investments.
Noninterest expense of $695$1.3 billion was up $922 million was down $856driven by expense of $562 million predominantly driven by:
associated with the First Republic acquisitionlower structural , higher legal expense, reflectingand a greater benefit in the impact of movements in foreign exchangeprior 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 wasexpense 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 drivenexpense associated with the First Republic acquisition reflected in the estimated bargain purchase gain, largely offset by benefits related to tax audit settlements and the changechanges in the level and mix of income and expenses subject to U.S. federal and state and locallocal taxes that also impactedimpact the Firm'sFirm’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 SeptemberJune 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 51-5654-61 for further information on liquidity and funding risk. Refer to Market Risk Management on pages 77-8184-89 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)20222021Change20222021Change
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 %$616,547 $593,026 %
Selected income statement and balance sheet data
As of or for the three months
ended June 30,
As of or for the six months
ended June 30,
(in millions)20232022Change20232022Change
Investment securities losses$(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 
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 SeptemberAs of June 30, 20222023 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.
43
46


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 protectsprotecting 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.
jpmcgovernancea07.jpg
Refer to pages 81-84 of JPMorgan Chase’s 20212022 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 20212022 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 functionsForm 10-Q page referenceForm 10-K page reference
Strategic risk85
Capital risk45-5086-96
Liquidity risk51-5697-104
Reputation risk105
Consumer credit risk59-63110-116
Wholesale credit risk64-72117-128
Investment portfolio risk76132
Market risk77-81133-140
Country risk82-83141-142
Operational risk84143-149
Compliance risk146
Conduct risk147
Legal risk148
Estimations and Model risk149
Risk governance and oversight functionsForm 10-Q page referenceForm 10-K page reference
Strategic Risk85
Capital Risk48–5386-96
Liquidity Risk54–6197-104
Reputation Risk105
Consumer Credit Risk65–69110-115
Wholesale Credit Risk70–79116-126
Investment Portfolio Risk130
Market Risk84–89131-138
Country Risk139-140
Climate Risk141
Operational Risk142-148
Compliance Risk145
Conduct Risk146
Legal Risk147
Estimations and Model Risk148

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 20212022 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-basedStandardized risk-based ratios are currently more binding than the Basel III Advanced-risk-basedAdvanced risk-based ratios.
Basel III also includes a requirement for Advanced Approaches banking organizations, including the Firm, to calculate theits 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 48-4951 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 SeptemberJune 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, fromwhich 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 20212022 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 currentFirm’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 are2024 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 accounteffect.
Basel III Finalization
In July 2023, the Firm's increasingFederal 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 20212022 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.
StandardizedAdvanced
(in millions, except ratios)September 30, 2022December 31, 2021
Capital ratio requirements(b)
September 30, 2022December 31, 2021
Capital ratio requirements(b)
Risk-based capital metrics:(a)
CET1 capital$209,661 $213,942 $209,661 $213,942 
Tier 1 capital236,363 246,162 236,363 246,162 
Total capital268,076 274,900 256,157 265,796 
Risk-weighted assets1,678,498 1,638,900 1,609,968 1,547,920 
CET1 capital ratio12.5 %13.1 %11.2 %13.0 %13.8 %10.5 %
Tier 1 capital ratio14.1 15.0 12.7 14.7 15.9 12.0 
Total capital ratio16.0 16.8 14.7 15.9 17.2 14.0 
StandardizedAdvanced
(in millions, except ratios)June 30, 2023December 31, 2022
Capital ratio requirements(b)
June 30, 2023December 31, 2022
Capital ratio requirements(b)
Risk-based capital metrics:(a)
CET1 capital$235,827 $218,934 $235,827 $218,934 
Tier 1 capital262,585 245,631 262,585 245,631 
Total capital295,281 277,769 281,953 (c)264,583 
Risk-weighted assets1,706,927 1,653,538 1,694,714 (c)1,609,773 
CET1 capital ratio13.8 %13.2 %12.5 %13.9 %13.6 %11.0 %
Tier 1 capital ratio15.4 14.9 14.0 15.5 15.3 12.5 
Total capital ratio17.3 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, 2022December 31, 2021
Capital ratio requirements(c)
Leverage-based capital metrics:(a)
Adjusted average assets(b)
$3,791,804 $3,782,035 
Tier 1 leverage ratio6.2 %6.5 %4.0 %
Total leverage exposure$4,460,636 $4,571,789 
SLR5.3 %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, 2023December 31, 2022
Capital ratio requirements(c)
Leverage-based capital metrics:(a)
Adjusted average assets(b)
$3,796,579 $3,703,873 
Tier 1 leverage ratio6.9 %6.6 %4.0 %
Total leverage exposure$4,492,761 $4,367,092 
SLR5.8 %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 SeptemberJune 30, 20222023 and December 31, 2021.2022.
(in millions)(in millions)September 30, 2022December 31, 2021(in millions)June 30, 2023December 31, 2022
Total stockholders’ equityTotal stockholders’ equity$288,018 $294,127 Total stockholders’ equity$312,516 $292,332 
Less: Preferred stockLess: Preferred stock32,838 34,838 Less: Preferred stock27,404 27,404 
Common stockholders’ equityCommon stockholders’ equity255,180 259,289 Common stockholders’ equity285,112 264,928 
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 assetsOther intangible assets1,205 882 Other intangible assets3,629 1,224 
Standardized/Advanced CET1 capitalStandardized/Advanced CET1 capital$209,661 $213,942 Standardized/Advanced CET1 capital$235,827 $218,934 
Preferred stock32,838 34,838 
Add: Preferred stockAdd: Preferred stock27,404 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 capitalStandardized/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 capitalLong-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 
OtherOther(821)(380)Other(1,187)(784)
Standardized Tier 2 capitalStandardized Tier 2 capital$31,713 $28,738 Standardized Tier 2 capital$32,696 $32,138 
Standardized Total capitalStandardized 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 capitalAdvanced Tier 2 capital$19,794 $19,634 Advanced Tier 2 capital$19,368 $18,952 
Advanced Total capitalAdvanced Total capital$256,157 $265,796 Advanced Total capital$281,953 $264,583 
(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 CET1 capital.
(b)IncludesAs 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 calledGoodwill 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 relatedIncluded an incremental $714 million allowance for credit losses on certain assets associated with the First Republic acquisition to which the Firm's investmentStandardized 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 ninesix months ended SeptemberJune 30, 2022.2023.
NineSix months ended SeptemberJune 30,
(in millions)
20222023
Standardized/Advanced CET1 capital at December 31, 20212022$213,942218,934 
Net income applicable to common equity25,42926,365 
Dividends declared on common stock(8,921)(5,911)
Net purchase of treasury stock(2,017)(4,304)
Changes in additional paid-in capital450534 
Changes related to AOCI applicable to capital:
Unrealized gains/(losses) on investment securities(19,050)2,969 
Adjustment related to AOCITranslation 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 SeptemberJune 30, 20222023$209,661235,827 
Standardized/Advanced Tier 1 capital at December 31, 20212022$246,162245,631 
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 SeptemberJune 30, 20222023$236,363262,585 
Standardized Tier 2 capital at December 31, 20212022$28,73832,138 
Change in long-term debt and other instruments qualifying as Tier 2447 (145)
Change in qualifying allowance for credit losses(b)
2,9691,106 
Other(441)(403)
Change in Standardized Tier 2 capital2,975558 
Standardized Tier 2 capital at SeptemberJune 30, 20222023$31,71332,696 
Standardized Total capital at SeptemberJune 30, 20222023$268,076295,281 
Advanced Tier 2 capital at December 31, 20212022$19,63418,952 
Change in long-term debt and other instruments qualifying as Tier 2447 (145)
Change in qualifying allowance for credit losses(b)(c)
154964 
Other(441)(403)
Change in Advanced Tier 2 capital160416 
Advanced Tier 2 capital at SeptemberJune 30, 20222023$19,79419,368 
Advanced Total capital at SeptemberJune 30, 20222023$256,157281,953 
(a)Includes cash flow hedgesforeign currency translation adjustments and DVAthe 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 calledIncluded an incremental $714 million allowance for redemptioncredit 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 ninesix months ended SeptemberJune 30, 2022.2023. The amounts in the rollforward categories are estimates, based on the predominant driver of the change.
StandardizedAdvancedStandardizedAdvanced
Nine months ended September 30, 2022
(in millions)
Credit risk RWA(c)
Market risk RWATotal RWA
Credit risk RWA(c)
Market risk RWAOperational 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 RWATotal RWA
Credit risk RWA(c)(d)
Market risk RWAOperational risk
RWA
Total RWA
December 31, 2022December 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 RWAChanges in RWA37,012 2,586 39,598 22,209 2,707 37,132 62,048 Changes in RWA64,194 (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, 2023June 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 SeptemberJune 30, 20222023 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 20212022 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, 2021Three months ended
(in millions, except ratio)
June 30,
2023
December 31, 2022
Tier 1 capitalTier 1 capital$236,363 $246,162 Tier 1 capital$262,585 $245,631 
Total average assetsTotal average assets3,842,247 3,831,655 Total average assets3,851,388 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 exposureTotal leverage exposure$4,460,636 $4,571,789 Total leverage exposure$4,492,761 $4,367,092 
SLRSLR5.3 %5.4 %SLR5.8 %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 20212022 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 BankingConsumer & Community Banking$50.0 $50.0 Consumer & Community Banking$55.5 $52.0 $50.0 
Corporate & Investment BankCorporate & Investment Bank103.0 83.0 Corporate & Investment Bank108.0 108.0 103.0 
Commercial BankingCommercial Banking25.0 24.0 Commercial Banking30.0 28.5 25.0 
Asset & Wealth ManagementAsset & Wealth Management17.0 14.0 Asset & Wealth Management17.0 16.0 17.0 
CorporateCorporate60.2 88.3 Corporate74.6 71.2 69.9 
Total common stockholders’ equityTotal common stockholders’ equity$255.2 $259.3 Total common stockholders’ equity$285.1 $275.7 $264.9 





51


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.

48


The following table sets forth the Firm’s repurchases of common stock for the three and ninesix months ended SeptemberJune 30, 20222023 and 2021.2022.
Three months ended September 30,Nine months ended September 30,
(in millions)202220212022
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)2023202220232022
Total number of shares of common stock repurchased16.7 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 20212022 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 193-194209–210 of this Form 10-Q and page 3534 of JPMorgan Chase’s 20212022 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 SeptemberJune 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-Q60 and Note 21 of JPMorgan Chase’s 2021 Form 10-K18 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 20222023 Comprehensive Capital Analysis and Review (“CCAR”) stress test process.
On August 4, 2022,July 27, 2023, the Federal Reserve affirmedannounced the Firm's 20222023 SCB requirement of 4.0% (up2.9% (down from 3.2%the current 4.0%), and the Firm’swhich will result in a Standardized CET1
capital ratio requirement, including regulatory buffers, of 12.0% (up11.4% (down from 11.2%the current 12.5%). for the fourth quarter of 2023. The 2022 SCB requirement becamewill 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 20212022 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 thethese 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 SeptemberJune 30, 20222023 and December 31, 2021.2022.
September 30, 2022December 31, 2021June 30, 2023December 31, 2022
(in billions, except ratio)(in billions, except ratio)External TLACLTDExternal TLACLTD(in billions, except ratio)External TLACLTDExternal TLACLTD
Total eligible amountTotal eligible amount$473.2 $225.1 $464.6 $210.4 Total eligible amount$493.8 $218.2 $486.0 $228.5 
% of RWA% of RWA28.2 %13.4 %28.4 %12.8 %% of RWA28.9 %12.8 %29.4 %13.8 %
Regulatory requirementsRegulatory requirements22.5 9.5 22.5 9.5 Regulatory requirements23.0 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 exposure10.6 %5.0 %10.2 %4.6 %% of total leverage exposure11.0 %4.9 %11.1 %5.2 %
Regulatory requirementsRegulatory requirements9.5 4.5 9.5 4.5 Regulatory requirements9.5 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 51-5654-61 for further information on long-term debt issued by the Parent Company.
Refer to Part I, Item 1A: Risk Factors on pages 9-339-32 of JPMorgan Chase’s 20212022 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 20212022 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, 2023June 30, 2023
(in millions)(in millions)ActualMinimum(in millions)ActualMinimum
Net CapitalNet 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 SeptemberJune 30, 2022,2023, J.P. Morgan Securities plc was compliant with theits MREL requirements, that became fully phased-in onrequirements.
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, 2023June 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 capitalTotal capital$54,025 Total capital$55,711 
CET1 ratio23.2 %4.5 %
CET1 capital ratioCET1 capital ratio17.1 %4.5 %
Tier 1 capital ratioTier 1 capital ratio22.1 6.0 
Total capital ratioTotal capital ratio29.8 %8.0 %Total capital ratio28.2 8.0 
Tier 1 leverage ratioTier 1 leverage ratio7.0 3.3 (b)
(a)Represents minimum Pillar 1 requirements specified by the PRA. J.P. Morgan Securities plc's capital ratios as of SeptemberJune 30, 20222023 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 SeptemberJune 30, 2022,2023, JPMSE was compliant with theits MREL requirements.
The following table presents JPMSE’s risk-based and leverage-based capital metrics:
September 30, 2022
Regulatory Minimum ratios(a)
June 30, 2023June 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 capitalTotal capital$33,555 Total capital$43,524 
CET1 ratio17.3 %4.5 %
CET1 capital ratioCET1 capital ratio19.9 %4.5 %
Tier 1 capital ratioTier 1 capital ratio19.9 6.0 
Total capital ratioTotal capital ratio27.8 %8.0 %Total capital ratio35.4 8.0 
Tier 1 leverage ratioTier 1 leverage ratio5.5 3.0 
(a)Represents minimum Pillar 1 requirements specified by the EU CRR. J.P. Morgan SE’s capital and leverage ratios as of SeptemberJune 30, 20222023 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 20212022 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 SeptemberJune 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 endedThree months ended
Average amount
(in millions)
Average amount
(in millions)
September 30,
2022
June 30, 2022September 30,
2021
Average amount
(in millions)
June 30,
2023
March 31, 2023June 30,
2022
JPMorgan Chase & Co.:JPMorgan Chase & Co.:JPMorgan Chase & Co.:
HQLAHQLAHQLA
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 outflowsNet cash outflows$635,072 $676,234 $645,557 Net cash outflows$683,446 $642,650 $676,234 
LCRLCR113 %110 %112 %LCR112 %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.:
LCRLCR165 %169 %174 %LCR129 %140 %169 %
Net excess eligible HQLANet 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 SeptemberJune 30, 2022,2023, compared with the three months ended June 30, 2022, predominantly dueprior year period, driven by dividend payments from JPMorgan Chase Bank, N.A. to long-term debt issuancesthe 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 SeptemberJune 30, 2022,2023, compared with the three months ended June 30, 2022 due to a decrease inMarch 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 fromwas further impacted by a reduction in cash fromprimarily 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 SeptemberJune 30, 2022 was lower than2023 decreased when compared with the same period in the prior year, due toreflecting 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 theaverage deposits and loan growth, as well as lower market valuevalues 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.
TheActions 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 fluctuatesmay fluctuate from period to period due to changes in itstheir 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 20212022 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
54


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 SeptemberJune 30, 20222023 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 decreaseddecrease compared to December 31, 2021, primarily due to2022, was driven by a decreasereduction 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 BankBanks as a result of collateral pledged by the Firm to such banks of approximately $317$332 billion and $308$323 billion as of SeptemberJune 30, 20222023 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 BankBanks discount window and other central banks. Although available, the Firm does not view this borrowing capacity at the Federal Reserve BankBanks discount window and the other central banks as a primary source of liquidity.


51


NSFR
The net stable funding ratio (“NSFR”) rule requiresis a liquidity requirement for large banking organizations that is intended to measure the Firm and JPMorgan Chase Bank, N.A. maintain an amountadequacy of “available” stable funding that is sufficient to meet their “required” amounts of stable funding over a one-year horizon.
As of SeptemberJune 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 understandinginterpretation of the final rule. TheBy 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 SeptemberJune 30, 2022,2023, and December 31, 2021,2022, and the average deposit balances for the three and ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, respectively.
September 30, 2022December 31, 2021Three months ended September 30,Nine months ended September 30,June 30, 2023December 31, 2022Three months ended June 30,Six months ended June 30,
DepositsAverageAverage
AverageAverage
(in millions)(in millions)September 30, 2022December 31, 20212022202120222021(in millions)June 30, 2023December 31, 20222023202220232022
Consumer & Community BankingConsumer & 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 BankCorporate & Investment Bank721,690 762,539 750,538 758,534 Corporate & Investment Bank722,818 773,664 711,266 765,200 
Commercial BankingCommercial Banking271,857 323,954 281,276 300,433 299,337 293,817 Commercial Banking269,026 271,342 275,196 300,339 270,595 308,518 
Asset & Wealth ManagementAsset & Wealth Management242,315 282,052 253,026 229,710 269,754 218,742 Asset & Wealth Management199,763 233,130 211,872 268,861 218,078 278,256 
CorporateCorporate14,449 396 15,151 454 8,385 452 Corporate21,083 14,203 20,219 8,995 18,931 4,948 
Total FirmTotal 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 
DepositsThe 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, 2022December 31, 2021
Deposits$2,408.6 $2,462.3 
Deposits as a % of total liabilities69 %71 %
Loans$1,112.6 $1,077.7 
Loans-to-deposits ratio46 %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 higherlower for the three months ended SeptemberJune 30, 20222023 compared to the three months ended SeptemberJune 30, 2021, reflecting:2022. The decrease was driven by:
an increasethe 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 consumernet 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 thanprimarily 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 depositsprimarily in existing accounts asdue to increased customer spending, continued to grow.and
Thean increase in deposits in Corporate was driven byrelated 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 16-1716-19 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 months15,044 5,452 8,670 3,658 
Over six months but within 12 months8,014 3,524 7,035 2,850 
Over 12 months770 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, 2023December 31, 2022
Deposits$2,399.0 $2,340.2 
Deposits as a % of total liabilities67 %69 %
Loans$1,300.1 $1,135.6 
Loans-to-deposits ratio54 %49 %

57


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 endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 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 
Time138,985 54,670 118,960 52,904 
Total interest-bearing deposits1,309,175 1,393,818 1,289,741 1,395,047 
Total deposits in U.S. offices1,955,942 2,106,877 1,925,489 2,104,341 
Non-U.S. offices
Noninterest-bearing24,948 28,832 25,390 28,789 
Interest-bearing
Demand320,822 335,102 320,527 331,348 
Time85,702 61,501 82,725 59,501 
Total interest-bearing deposits406,524 396,603 403,252 390,849 
Total deposits in non-U.S. offices431,472 425,435 428,642 419,638 
Total deposits$2,387,414 $2,532,312 $2,354,131 $2,523,979 
(Unaudited)Average interest rates
Three months endedSix months ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022
U.S. offices
Noninterest-bearingNANANANA
Interest-bearing
Demand(a)
3.41 %0.32 %3.09 %0.18 %
Savings(b)
1.04 0.12 0.97 0.10 
Time4.53 0.92 4.52 0.60 
Total interest-bearing deposits1.93 0.20 1.75 0.14 
Total deposits in U.S. offices1.28 0.12 1.19 0.08 
Non-U.S. offices
Noninterest-bearingNANANANA
Interest-bearing
Demand2.53 0.08 2.38 0.02 
Time5.66 0.72 5.32 0.38 
Total interest-bearing deposits3.21 0.20 2.98 0.08 
Total deposits in non-U.S. offices3.01 0.16 2.80 0.06 
Total deposits1.60 %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.




58


The following table summarizes short-term and long-term funding, excluding deposits, as of SeptemberJune 30, 2022,2023, and December 31, 2021,2022, and average balances for the three and ninesix months ended September June 30, 20222023 and 2021,2022, respectively. Refer to the Consolidated Balance Sheets Analysis on pages 16-1716-19 and Note 1011 for additional information.
September 30, 2022December 31, 2021Three months ended September 30,Nine months ended September 30,
Sources of funds (excluding deposits)AverageAverage
(in millions)2022202120222021
Commercial paper$13,953 $15,108 $16,926 $10,304 $17,039 $12,275 
Other borrowed funds10,651 9,999 12,351 12,257 12,821 12,467 
Federal Funds purchased1,492 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 funds23,262 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 debt21,797 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 advances11,098 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, 2023December 31, 2022Three months ended June 30,Six months ended June 30,
AverageAverage
(in millions)2023202220232022
Commercial paper$11,686 $12,557 $11,057 $19,589 $11,930 $17,097 
Other borrowed funds7,532 8,418 9,791 12,533 9,931 13,061 
Federal funds purchased1,783 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 funds21,804 (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 debt19,763 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 advances36,094 (d)11,093 28,420 11,106 19,804 11,107 
Purchase Money Note(d)
48,883 NA32,745 NA16,463 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 and48-53, 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 20212022 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 SeptemberJune 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 increasedecrease in commercial paper at June 30, 2023 from December 31, 2022, and for the average three and ninesix months ended SeptemberJune 30, 20222023 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 thelower net issuance levels primarily forresulting 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 ninesix months ended SeptemberJune 30, 20222023 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 20212022 Form 10-K for additional information on the IHC and long-term debt.
Long-term unsecured fundingLong-term unsecured fundingLong-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,
2022202120222021202220212022202120232022202320222023202220232022
(Notional in millions)(Notional in millions)Parent CompanySubsidiaries(Notional in millions)Parent CompanySubsidiaries
IssuanceIssuanceIssuance
Senior notes issued in the U.S. marketSenior 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. marketsSenior notes issued in non-U.S. markets — 2,752 5,581  —  — Senior notes issued in non-U.S. markets —  2,752  —  — 
Total senior notesTotal senior notes8,500 4,500 32,352 39,331  —  — Total senior notes2,500 13,000 2,500 23,852  —  — 
Subordinated debt3,500 — 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 – issuanceTotal 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/redemptionsMaturities/redemptionsMaturities/redemptions
Senior notesSenior 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 debtSubordinated debt   —  — Subordinated debt2,027 — 2,027 —  —  — 
Structured notesStructured notes72 530 1,464 3,691 6,108 7,280 21,178 25,453 Structured notes324 415 771 1,392 6,479 7,428 13,981 15,075 
Total long-term unsecured funding – maturities/redemptionsTotal 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, andas 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 ninesix months ended SeptemberJune 30, 2023 and 2022, and 2021, respectively.
Long-term secured fundingLong-term secured fundingLong-term secured funding
Three months ended September 30,Nine months ended September 30,Three months ended June 30,Six months ended June 30,
IssuanceMaturities/RedemptionsIssuanceMaturities/RedemptionsIssuanceMaturities/RedemptionsIssuanceMaturities/Redemptions
(in millions)(in millions)20222021202220212022202120222021(in millions)20232022202320222023202220232022
Credit card securitizationCredit card securitization$997 $— $750 $— $997 $— $1,400 $2,550 Credit card securitization$ $— $ $— $ $— $1,000 $650 
FHLB advancesFHLB advances — 3 1,002  — 9 3,008 FHLB advances25,775 (a)— 602 25,775 (a)— 604 
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 NA50,000 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 fundingTotal 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 20212022 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 riskNote 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 SeptemberJune 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)
SeptemberJune 30, 20222023Long-term issuerShort-term issuerOutlookLong-term issuerShort-term issuerOutlookLong-term issuerShort-term issuerOutlook
Moody’s Investors ServiceA1P-1StableAa2P-1StableAa3P-1Stable
Standard & Poor’s(a)
A-A-2PositiveStableA+A-1PositiveStableA+A-1PositiveStable
Fitch RatingsAA-F1+StableAAF1+StableAAF1+Stable
(a) In January 2022, the three rating agenciesOn 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'sFirm’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 20212022 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 59-7565-82 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 106-132106-130 of JPMorgan Chase’s 20212022 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, 2212, 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 59-6365-69 and Note 1112 for further discussions of the consumer credit environment and consumer loans. Refer to Wholesale Credit Portfolio on pages 64-7270-79 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 portfolioTotal credit portfolioTotal 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 retainedLoans 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-saleLoans held-for-sale3,073 8,688 71 48 Loans held-for-sale5,592 3,970 119 54 
Loans at fair valueLoans at fair value41,487 58,820 804 815 Loans at fair value38,789 42,079 777 829 
Total loansTotal loans1,112,633 1,077,714 6,674 7,795 Total loans1,300,069 1,135,647 7,273 6,720 
Derivative receivablesDerivative receivables92,534 57,081 

339 316 Derivative receivables64,217 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 assetsTotal credit-related assets1,260,088 1,194,440 7,013 8,111 Total credit-related assets1,407,027 1,255,784 7,559 7,016 
Assets acquired in loan satisfactionsAssets acquired in loan satisfactionsAssets acquired in loan satisfactions
Real estate ownedReal estate ownedNANA199 213 Real estate ownedNANA243 203 
OtherOtherNANA31 22 OtherNANA36 28 
Total assets acquired in loan satisfactions
Total assets acquired in loan satisfactions
NANA230 235 
Total assets acquired in loan satisfactions
NANA279 231 
Lending-related commitmentsLending-related commitments1,306,673 1,262,313 470 764 Lending-related commitments1,473,420 1,326,782 332 455 
Total credit portfolioTotal 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 derivativesLiquid securities and other cash collateral held against derivatives(25,068)(10,102)NANALiquid securities and other cash collateral held against derivatives(23,282)(23,014)NANA
(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 SeptemberJune 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,


63


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, 2023Dec 31, 2022
Total nonaccrual loans$7,273$6,720
Total loans1,300,0691,135,647
Firmwide nonaccrual loans to total loans outstanding0.56 %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,
20222021202220212023202220232022
Net charge-offsNet charge-offs$727 $524 $1,966 $2,315 Net charge-offs$1,411$657$2,548$1,239
Average retained loansAverage retained loans1,059,962 968,369 1,033,586 958,260 Average retained loans1,194,044 1,035,933 1,138,550 1,020,180 
Net charge-off ratesNet charge-off rates0.27 %0.21 %0.25 %0.32 %Net charge-off rates0.47 %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 bankingbanking. The consumer credit portfolio also includes certain loans as well asand 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 110-116110-115 and Note 12 of JPMorgan Chase's 20212022 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 20212022 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 portfolioConsumer credit portfolioConsumer 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 cardConsumer, excluding credit cardConsumer, 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 – retainedTotal loans – retained301,403 295,556 3,917 4,878 Total loans – retained396,195 300,753 3,784 3,874 
Loans held-for-saleLoans held-for-sale682 1,287 42 — Loans held-for-sale549 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 loansTotal consumer, excluding credit card loans313,796 323,306 4,378 5,350 Total consumer, excluding credit card loans408,204 311,375 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 cardTotal consumer exposure, excluding credit card348,664 368,640 Total consumer exposure, excluding credit card459,050 (i)344,893 
Credit cardCredit cardCredit card
Loans retained(g)(f)
Loans retained(g)(f)
170,462 154,296 NANA
Loans retained(g)(f)
191,348 185,175 NANA
Total credit card loansTotal credit card loans170,462 154,296 NANATotal credit card loans191,348 185,175 NANA
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)
202220212022202120222021202320222023202220232022
Consumer, excluding credit cardConsumer, excluding credit cardConsumer, excluding credit card
Residential real estateResidential 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 otherAuto and other135 66 64,086 78,091 0.84 0.34 Auto and other147 94 66,470 66,879 0.89 0.56 
Total consumer, excluding credit card - retainedTotal consumer, excluding credit card - retained76 (8)301,347 298,019 0.10 (0.01)Total consumer, excluding credit card - retained122 27 359,543 299,649 0.14 0.04 
Credit card - retainedCredit card - retained592 495 168,125 141,371 1.40 1.39 Credit card - retained1,124 580 187,027 158,434 2.41 1.47 
Total consumer - retainedTotal 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)
202220212022202120222021202320222023202220232022
Consumer, excluding credit cardConsumer, excluding credit cardConsumer, excluding credit card
Residential real estateResidential 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 otherAuto and other342 187 66,812 79,478 0.68 0.31 Auto and other299 207 65,145 68,197 0.93 0.61 
Total consumer, excluding credit card - retainedTotal consumer, excluding credit card - retained149 (18)298,840 299,620 0.07 (0.01)Total consumer, excluding credit card - retained254 73 330,227 297,566 0.16 0.05 
Credit card - retainedCredit card - retained1,678 2,233 158,721 137,012 1.41 2.18 Credit card - retained2,046 1,086 183,757 153,941 2.25 1.42 
Total consumer - retainedTotal 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 SeptemberJune 30, 20222023 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.
59


(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.
65

(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 SeptemberJune 30, 20222023 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 SeptemberJune 30, 20222023 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 SeptemberJune 30, 20222023 and 2021,2022, respectively, and were $19.0$12.4 billion and $27.9$21.0 billion for the ninesix months ended SeptemberJune 30, 20222023 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 yearsTotal
Consumer, excluding credit card
Residential real estate$16,797 $27,570 $109,586 $183,944 $337,897 
Auto and other19,826 (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 other45,771 3,678 5 
Credit card568   
Loans due after one year at variable interest rates
Residential real estate(c)
$7,238 $49,968 $92,407 
Auto and other76 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 fromincreased compared to December 31, 20212022 driven by residential real estate loans at fair valueassociated with the First Republic acquisition and auto and other loans, largely offset by higher retained residential real estateauto 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 fromcompared to December 31, 2021 reflecting improved credit performance and loan sales.2022. Net recoveries were lower for the three and ninesix months ended SeptemberJune 30, 2022 when2023 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 loan2022, 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 lowerwarehouse loan purchase activity in CIB.sales. Nonaccrual loans at fair value decreased fromwere relatively flat compared to December 31, 20212022.
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 netthe 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 SeptemberJune 30, 2022. This amount2023, 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
CurrentCurrent$670 $689 Current$614 $659 
30-89 days past due30-89 days past due131 135 30-89 days past due112 136 
90 or more days past due90 or more days past due362 623 90 or more days past due215 302 
Total government guaranteed loansTotal 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 retainedFor 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 grantedthe three and six months ended June 30, 2023, respectively. The changes to borrowers experiencing financial difficulty, which include boththe 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”) loansbut 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, 2022December 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 asother consumer unsecured loans, and overdrafts. The portfolio decreasedincreased when compared withto December 31, 2021 predominantly2022 due to PPP loan forgivenessoriginations of scored Auto loans and an increase in business banking and paydowns predominantlyother 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 SeptemberJune 30, 2022 when2023 compared to the same periodperiods in the prior year due to higher overdraftscored 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 portfolioAuto net charge-off rates were 0.27%0.41% and 0.03%0.12% for the three months ended SeptemberJune 30, 20222023 and 2021,2022, respectively, and 0.19%0.43% and 0.01%0.15% for the ninesix months ended SeptemberJune 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 SeptemberJune 30, 20222023 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 loansNonaccrual loansNonaccrual 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 loansTotal nonaccrual loans4,378 5,350 Total nonaccrual loans4,265 4,325 
Assets acquired in loan satisfactionsAssets acquired in loan satisfactionsAssets acquired in loan satisfactions
Real estate ownedReal estate owned118 112 Real estate owned126 129 
OtherOther31 22 Other36 28 
Total assets acquired in loan satisfactionsTotal assets acquired in loan satisfactions149 134 Total assets acquired in loan satisfactions162 157 
Total nonperforming assetsTotal nonperforming assets$4,527 $5,484 Total nonperforming assets$4,427 $4,482 
(a)At SeptemberJune 30, 20222023 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 SeptemberJune 30, 20222023 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 ninesix months ended SeptemberJune 30, 20222023 and 2021.2022.
Nonaccrual loan activityNonaccrual loan activityNonaccrual loan activity
Nine months ended September 30, (in millions)20222021
Six months ended June 30,
(in millions)
Six months ended June 30,
(in millions)
20232022
Beginning balanceBeginning balance$5,350 $6,467 Beginning balance$4,325 $5,350 
AdditionsAdditions1,648 2,032 Additions1,290 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-offsCharge-offs176 167 Charge-offs202 117 
Returned to performing statusReturned to performing status1,099 1,295 Returned to performing status573 824 
Foreclosures and other liquidationsForeclosures and other liquidations136 61 Foreclosures and other liquidations89 97 
Total reductionsTotal reductions2,620 3,148 Total reductions1,350 1,827 
Net changesNet changes(972)(1,116)Net changes(60)(678)
Ending balanceEnding 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 due313 331 
150 or more days past due289 664 
Total PCD loans$11,854 $13,741 
% of 30+ days past due to total retained PCD loans5.08 %7.24 %
Nonaccrual loans$1,203 $1,616 
(in millions, except ratios)Three months ended September 30,Nine months ended September 30,
2022202120222021
Net charge-offs/(recoveries)$(3)$$(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 by2022 reflecting growth infrom new accounts and revolving balances on higher consumer spendingwhich 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. Netnet charge-offs increased for the three and six months ended SeptemberJune 30, 20222023 compared withto the same periodperiods 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 SeptemberFor 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 66-6972-75 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 bankingBWM and auto dealer exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for creditloan 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 SeptemberJune 30, 2022,2023, the decreaseincrease in nonperforming exposure was driven by a declineloans, 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 declinereduction 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 $13.5increased $69.1 billion driven by the impact of the First Republic acquisition, and net portfolio activity in CIB and CB, including a decreasean increase in held-for-sale positions in the bridge financing portfolio, partially offset by net portfolio activity in AWM.portfolio.

Wholesale credit portfolioWholesale credit portfolioWholesale credit portfolio
Credit exposureNonperformingCredit exposureNonperforming
(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 retainedLoans retained$596,208 $560,354 $1,882 $2,054 Loans retained$668,145 $603,670 $2,593 $1,963 
Loans held-for-saleLoans held-for-sale2,391 7,401 29 48 Loans held-for-sale5,043 3,352 48 26 
Loans at fair valueLoans at fair value29,776 32,357 385 343 Loans at fair value27,329 32,075 367 406 
LoansLoans628,375 600,112 2,296 2,445 Loans700,517 639,097 3,008 2,395 
Derivative receivablesDerivative receivables92,534 57,081 339 316 Derivative receivables64,217 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 assetsTotal wholesale credit-related assets775,830 716,838 2,635 2,761 Total wholesale credit-related assets807,475 759,234 3,294 2,691 
Assets acquired in loan satisfactionsAssets acquired in loan satisfactionsAssets acquired in loan satisfactions
Real estate ownedReal estate ownedNANA81 101 Real estate owned NA117 74 
OtherOtherNANA — Other NA — 
Total assets acquired in loan satisfactionsTotal assets acquired in loan satisfactionsNANA81 101 Total assets acquired in loan satisfactions NA117 74 
Lending-related commitmentsLending-related commitments472,950 486,445 470 764 Lending-related commitments541,089 471,980 332 455 
Total wholesale credit portfolioTotal 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 derivativesLiquid securities and other cash collateral held against derivatives(25,068)(10,102)NANALiquid securities and other cash collateral held against derivatives(23,282)(23,014) 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 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 conformIncluded 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 ratingsrating profiles of the wholesale credit portfolio as of SeptemberJune 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 20212022 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 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IG1 year or less 1 year through 5 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % 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 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IG
Loans retainedLoans retained$213,399 $242,119 $140,690 $596,208 $423,292 $172,916 $596,208 71 %Loans retained
Derivative receivablesDerivative receivables92,534 92,534 Derivative receivables64,217 64,217 
Less: Liquid securities and other cash collateral held against derivativesLess: 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 collateralTotal derivative receivables, net of collateral28,268 18,799 20,399 67,466 52,070 15,396 67,466 77 Total derivative receivables, net of collateral12,198 11,089 17,648 40,935 32,682 8,253 40,935 80 
Lending-related commitmentsLending-related commitments110,035 339,705 23,210 472,950 329,043 143,907 472,950 70 Lending-related commitments141,356 375,289 24,444 541,089 354,209 186,880 541,089 65 
SubtotalSubtotal351,702 600,623 184,299 1,136,624 804,405 332,219 1,136,624 71 Subtotal379,180 652,234 218,755 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 customersReceivables from customers54,921 54,921 Receivables from customers42,741 42,741 
Total exposure – net of liquid securities and other cash collateral held against derivativesTotal 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 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IG1 year or less 1 year through 5 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % 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 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IG
Loans retainedLoans retained$214,064 $218,176 $128,114 $560,354 $410,011 $150,343 $560,354 73 %Loans retained
Derivative receivablesDerivative receivables57,081 57,081 Derivative receivables70,880 70,880 
Less: Liquid securities and other cash collateral held against derivativesLess: 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 collateralTotal derivative receivables, net of collateral13,648 12,814 20,517 46,979 31,934 15,045 46,979 68 Total derivative receivables, net of collateral13,508 14,880 19,478 47,866 36,231 11,635 47,866 76 
Lending-related commitmentsLending-related commitments120,929 340,308 25,208 486,445 331,116 155,329 486,445 68 Lending-related commitments101,083 347,456 23,441 471,980 327,168 144,812 471,980 69 
SubtotalSubtotal348,641 571,298 173,839 1,093,778 773,061 320,717 1,093,778 71 Subtotal319,352 616,232 187,932 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 customersReceivables from customers59,645 59,645 Receivables from customers49,257 49,257 
Total exposure – net of liquid securities and other cash collateral held against derivativesTotal 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 Septemberas 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 Septemberas of June 30, 20222023 and December 31, 2021,2022, representing approximately 2.7%2.8% and 3.5%2.7% of total wholesale credit exposure, respectively. Crespectivelyriticized. Criticized exposure decreasedincreased, driven by net portfolio activityclient-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 SeptemberJune 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 SeptemberJune 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 metricsSelected 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-gradeNoninvestment-grade
As of or for the nine months ended
Credit exposure(f)(g)
Investment- gradeNoncriticizedCriticized performingCriticized nonperforming
September 30, 2022
As of or for the six months endedAs of or for the six months ended
Credit exposure(f)(g)(h)
Investment- gradeNoncriticizedCriticized performingCriticized nonperforming
June 30, 2023June 30, 202330 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- gradeNoncriticizedCriticized performingCriticized nonperforming30 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 EstateReal EstateReal 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 ManagersAsset Managers138,143 87,284 50,713 138 8 
Consumer & RetailConsumer & Retail118,893 61,434 50,208 6,720 531 Consumer & Retail125,935 62,890 54,980 7,511 554 416 59 (3,618) 
Asset Managers107,519 89,284 18,221 8 6 222 (1) (12,253)
IndustrialsIndustrials77,206 43,489 30,310 3,242 165 362 16 (2,072)(3)
Technology, Media & TelecommunicationsTechnology, Media & Telecommunications76,419 43,356 25,917 6,877 269 47 38 (1,402) Technology, Media & Telecommunications76,444 41,401 27,127 7,708 208 125 78 (3,396) 
Industrials70,480 38,533 29,156 2,635 156 263 32 (666)(2)
HealthcareHealthcare58,215 41,088 15,430 1,602 95 59 24 (636)(97)Healthcare65,547 43,569 19,435 2,140 403 292 13 (2,829)(13)
Banks & Finance CosBanks & Finance Cos57,425 33,021 23,328 1,047 29 214  (406)(612)Banks & Finance Cos61,659 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) 
UtilitiesUtilities35,757 25,124 9,746 768 119 60 (2)(1,989) 
Oil & GasOil & Gas44,055 23,623 19,785 599 48 72 (1)(513) Oil & Gas33,233 18,969 13,768 446 50 42 4 (1,384) 
Utilities35,226 25,699 8,374 1,002 151 11 21 (575) 
AutomotiveAutomotive35,116 25,503 9,030 459 124 74  (480) Automotive32,947 23,385 9,174 235 153 56  (623) 
State & Municipal Govt(c)
34,804 33,987 687 123 7 7  (9)(60)
Chemicals & PlasticsChemicals & Plastics22,195 12,020 9,243 811 121 26  (835) 
InsuranceInsurance22,740 17,610 4,957 173  87  (198)(7,871)Insurance21,874 15,513 6,062 299  14  (531)(7,529)
Chemicals & Plastics19,504 12,022 6,822 569 91 13 3 (167) 
Central GovtCentral Govt16,493 16,206 287    10 (5,015)(484)Central Govt16,845 16,396 318 127 4   (3,724)(229)
Metals & MiningMetals & Mining16,432 9,172 6,883 327 50 5 (1)(15)(2)Metals & Mining15,631 8,528 6,623 450 30  (6)(209) 
TransportationTransportation15,506 6,204 6,737 2,410 155 37 3 (302) Transportation15,447 6,879 7,002 1,516 50 64 (18)(598) 
Securities FirmsSecurities Firms9,077 6,116 2,961   4  (14)(2,693)
Financial Markets InfrastructureFinancial Markets Infrastructure7,122 7,001 121       Financial Markets Infrastructure4,993 4,599 394     (1) 
Securities Firms6,771 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)
SubtotalSubtotal$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 valueLoans held-for-sale and loans at fair value32,167 Loans held-for-sale and loans at fair value32,372 
Receivables from customersReceivables from customers54,921 Receivables from customers42,741 
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 metricsSelected 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-gradeNoninvestment-grade
As of or for the year endedAs of or for the year ended
Credit exposure(f)(g)
Investment- gradeNoncriticizedCriticized performingCriticized nonperformingAs of or for the year ended
Credit exposure(f)(g)
Investment- gradeNoncriticizedCriticized performingCriticized nonperforming
December 31, 2021
December 31, 2022December 31, 2022
(in millions)(in millions)
Credit exposure(f)(g)
Investment- gradeNoncriticizedCriticized performingCriticized nonperforming30 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- gradeNoncriticizedCriticized performingCriticized nonperforming30 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 EstateReal EstateReal Estate
Individuals and Individual Entities(b)
Individuals and Individual Entities(b)
Individuals and Individual Entities(b)
Asset ManagersAsset Managers95,656 78,925 16,665 61 
Consumer & RetailConsumer & Retail122,789 59,622 53,317 9,445 405 Consumer & Retail120,555 60,781 51,871 7,295 608 
Asset Managers81,228 68,593 12,630 — — — (3,900)
IndustrialsIndustrials72,483 39,052 30,500 2,809 122 282 44 (1,258)— 
Technology, Media & TelecommunicationsTechnology, Media & Telecommunications84,070 49,610 25,540 8,595 325 58 (1)(900)(i)(12)Technology, Media & Telecommunications72,286 39,199 25,689 7,096 302 62 39 (1,766)— 
Industrials66,974 36,953 26,957 2,895 169 428 13 (586)(i)(1)
HealthcareHealthcare59,014 42,133 15,136 1,686 59 204 (4)(490)(174)Healthcare62,613 43,839 17,117 1,479 178 43 27 (1,055)— 
Banks & Finance CosBanks & Finance Cos54,684 29,732 23,809 1,138 (503)(i)(810)Banks & Finance Cos51,816 27,811 22,994 961 50 36 — (262)(994)
State & Municipal Govt(c)
State & Municipal Govt(c)
33,847 33,191 529 126 36 — (9)(5)
UtilitiesUtilities36,218 25,981 9,294 807 136 21 15 (607)(1)
Oil & GasOil & Gas42,606 20,698 20,222 1,558 128 60 (564)(i)— Oil & Gas38,668 20,547 17,616 474 31 57 (6)(414)— 
Utilities33,203 25,069 7,011 914 209 11 (367)(i)(4)
AutomotiveAutomotive34,573 24,606 9,446 399 122 95 (3)(463)— Automotive33,287 23,908 8,839 416 124 198 (2)(513)— 
State & Municipal Govt(c)
33,216 32,522 586 101 74 — — (14)
Chemicals & PlasticsChemicals & Plastics20,030 12,134 7,103 744 49 10 (298)— 
InsuranceInsurance13,926 9,943 3,887 96 — — — (25)(i)(2,366)Insurance21,045 15,468 5,396 181 — — (273)(7,296)
Chemicals & Plastics17,660 11,319 5,817 518 — (89)— 
Central GovtCentral Govt11,317 11,067 250 — — — — (6,961)(72)Central Govt19,095 18,698 362 35 — — 10 (4,591)(677)
Metals & MiningMetals & Mining16,696 7,848 8,491 294 63 27 (15)(i)(4)Metals & Mining15,915 8,825 6,863 222 (1)(27)(4)
TransportationTransportation14,635 6,010 5,983 2,470 172 21 20 (100)(i)(24)Transportation15,009 6,497 6,862 1,574 76 24 (339)— 
Securities FirmsSecurities Firms8,066 4,235 3,716 115 — — (13)(26)(2,811)
Financial Markets InfrastructureFinancial Markets Infrastructure4,377 3,987 390 — — — — — — Financial Markets Infrastructure4,962 4,525 437 — — — — — — 
Securities Firms4,180 2,599 1,578 — — — (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 (5)(5,435)(2,948)
SubtotalSubtotal$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 valueLoans held-for-sale and loans at fair value39,758 

Loans held-for-sale and loans at fair value35,427 

Receivables from customersReceivables from customers59,645 Receivables from customers49,257 
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 Septemberas of June 30, 2022,2023, not actual rankings of such exposures atas of December 31, 2021.2022.
(b)IndividualsIndividuals 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 Septemberas 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 Septemberas 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 SeptemberJune 30, 2022, of which $98.3 billion was multifamily lending as shown in the table below.2023. Criticized exposure decreasedincreased 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 Septemberas of June 30, 2022,2023, driven by client-specific upgrades and net portfolio activitydowngrades, partially offset by client-specific downgrades.upgrades.
September 30, 2022June 30, 2023
(in millions, except ratios)(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade
% Drawn(d)
(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit 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 
IndustrialIndustrial17,997  17,997 66 74 
OfficeOffice15,035 26 15,061 74 74 Office17,623 24 17,647 62 76 
Industrial14,965  14,965 74 68 
Services and Non Income ProducingServices and Non Income Producing13,679 4 13,683 68 48 Services and Non Income Producing15,656 63 15,719 64 53 
Other Income Producing Properties(b)
12,285 150 12,435 69 61 
RetailRetail10,136 10 10,146 69 66 Retail12,899 35 12,934 61 71 
LodgingLodging3,609 12 3,621 5 34 Lodging3,902 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, 2021December 31, 2022
(in millions, except ratios)(in millions, except ratios)Loans and Lending-related CommitmentsDerivative
Receivables
Credit exposure% Investment-
grade
% Drawn(d)
(in millions, except ratios)Loans and Lending-related CommitmentsDerivative
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 
IndustrialIndustrial15,928 15,929 72 71 
OfficeOffice16,409 234 16,643 75 71 Office14,917 25 14,942 74 73 
Industrial11,546 66 11,612 75 64 
Services and Non Income ProducingServices and Non Income Producing11,512 24 11,536 63 50 Services and Non Income Producing13,968 10 13,978 65 48 
Other Income Producing Properties(b)
13,018 498 13,516 77 55 
RetailRetail9,580 106 9,686 61 69 Retail10,192 10,200 75 68 
LodgingLodging2,859 63 2,922 33 Lodging3,347 38 3,385 37 
Total Real Estate ExposureTotal 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.


68
74


Consumer & Retail
Consumer & Retail exposure was $118.9$125.9 billion as of SeptemberJune 30, 2022, and predominantly included Retail, Food and Beverage, and Business and Consumer Services as shown in the table below.2023. Criticized exposure decreasedincreased by $2.6$162 million from $7.9 billion from $9.9 billion atas of December 31, 20212022 to $7.3$8.1 billion atas of SeptemberJune 30, 20222023, driven by net portfolio activity and client-specific upgrades partiallydowngrades predominantly offset by client-specific downgrades. upgrades and net portfolio activity.
September 30, 2022June 30, 2023
(in millions, except ratios)(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade
% Drawn(d)
(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit 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 ServicesBusiness and Consumer Services33,127 348 33,475 49 41 
Food and BeverageFood and Beverage31,239 900 32,139 61 41 Food and Beverage31,747 1,195 32,942 56 40 
Business and Consumer Services30,939 472 31,411 48 39 
Consumer Hard GoodsConsumer Hard Goods13,310 222 13,532 53 42 Consumer Hard Goods13,927 285 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, 2021December 31, 2022
(in millions, except ratios)(in millions, except ratios)Loans and Lending-related CommitmentsDerivative
Receivables
Credit exposure% Investment-
grade
% Drawn(d)
(in millions, except ratios)Loans and Lending-related CommitmentsDerivative
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 ServicesBusiness and Consumer Services31,256 384 31,640 50 40 
Food and BeverageFood and Beverage30,434 957 31,391 59 33 Food and Beverage31,706 736 32,442 59 39 
Business and Consumer Services32,159 347 32,506 46 33 
Consumer Hard GoodsConsumer Hard Goods17,035 111 17,146 46 30 Consumer Hard Goods13,879 172 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 & RetailTotal 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 SeptemberJune 30, 20222023 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 SeptemberJune 30, 2022, including $26.2 billion2023 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 $647which $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, 2022June 30, 2023
(in millions, except ratios)(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade
% Drawn(c)
(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade
% Drawn(c)
Exploration & Production (“E&P”) and Oil field ServicesExploration & 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, 2021December 31, 2022
(in millions, except ratios)(in millions, except ratios)Loans and Lending-related CommitmentsDerivative
Receivables
Credit exposure% Investment-
grade
% Drawn(c)
(in millions, except ratios)Loans and Lending-related CommitmentsDerivative
Receivables
Credit exposure% Investment-
grade
% Drawn(c)
Exploration & Production (“E&P”) and Oil field ServicesExploration & 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 & GasTotal 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, overapproximately 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 ninesix months ended September June 30, 20222023 and 2021.2022. Since SeptemberJune 30, 2021,2022, nonaccrual loan exposure decreased $596increased by $518 million driven by paydownsHealthcare, 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 RussiaTransportation and Russia-associated clients in the first quarter of 2022.civic organizations resulting from net portfolio activity.
Wholesale nonaccrual loan activityWholesale nonaccrual loan activityWholesale nonaccrual loan activity
Nine month ended September 30, 2022,
(in millions)
20222021
Six months ended June 30,
(in millions)
Six months ended June 30,
(in millions)
20232022
Beginning balanceBeginning balance$2,445 $4,106 Beginning balance$2,395 $2,445 
AdditionsAdditions1,635 2,021 Additions1,649 1,239 
Reductions:Reductions:Reductions:
Paydowns and otherPaydowns and other1,108 1,782 Paydowns and other618 776 
Gross charge-offsGross charge-offs127 180 Gross charge-offs281 83 
Returned to performing statusReturned to performing status516 893 Returned to performing status85 326 
SalesSales33 380 Sales52 
Total reductionsTotal reductions1,784 3,235 Total reductions1,036 1,194 
Net changesNet changes(149)(1,214)Net changes613 45 
Ending balanceEnding 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 ninesix months ended SeptemberJune 30, 20222023 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,
20222021202220212023202220232022
LoansLoansLoans
Average loans retainedAverage loans retained$590,490 $528,979 $576,025 $521,628 Average loans retained$647,474 $577,850 $624,566 $568,673 
Gross charge-offsGross charge-offs109 52 232 187 Gross charge-offs189 71 294 123 
Gross recoveries collectedGross 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) rateNet charge-off/(recovery) rate0.04 %0.03 %0.03 %0.03 %Net charge-off/(recovery) rate0.10 %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 yearsAfter 5 years through 15 yearsAfter 15 yearsTotal
Wholesale loans:
Secured by real estate(a)
$17,025 $61,188 $50,001 $41,680 $169,894 
Commercial and industrial54,346 114,370 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 industrial5,775 1,238 66 
Other30,048 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 industrial108,595 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 estateCommercial
 and industrial
OtherTotal

(in millions, except ratios)
20232022202320222023202220232022
Net charge-offs/(recoveries)$85 $$81 $47 $(1)$$165 $50 
Average retained loans153,590 120,441 171,684 162,702 322,200 294,707 647,474 577,850 
Net charge-off/(recovery) rate0.22 %0.01 %0.19 %0.12 % %— %0.10 %0.03 %
Six months ended June 30,
Secured by real estateCommercial
 and industrial
OtherTotal

(in millions, except ratios)
20232022202320222023202220232022
Net charge-offs/(recoveries)$90 $$151 $54 $7 $18 $248 $80 
Average retained loans139,822 119,139 171,136 158,222 313,608 291,312 624,566 568,673 
Net charge-off/(recovery) rate0.13 %0.01 %0.18 %0.07 % %0.01 %0.08 %0.03 %













77




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 OTCover-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 SeptemberJune 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 $92.5was $64.2 billion and $57.1$70.9 billion at SeptemberJune 30, 2022,2023, and December 31, 2021,2022, respectively. The increasedecrease 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 receivablesDerivative receivablesDerivative receivables
(in millions)(in millions)September 30,
2022
December 31,
2021
(in millions)June 30,
2023
December 31,
2022
Total, net of cash collateralTotal, 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 receivablesLiquid 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 collateralTotal, 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 receivablesOther collateral held against derivative receivables(2,299)(1,544)Other collateral held against derivative receivables(1,257)(1,261)
Total, net of collateralTotal, net of collateral$65,167 $45,435 Total, net of collateral$39,678 $46,605 
Ratings profile of derivative receivablesRatings profile of derivative receivablesRatings profile of derivative receivables


September 30, 2022December 31, 2021
June 30, 2023December 31, 2022

(in millions, except ratios)

(in millions, except ratios)
Exposure net of collateral% of exposure net of collateralExposure net of collateral% of exposure net of collateral

(in millions, except ratios)
Exposure net of collateral% of exposure net of collateralExposure net of collateral% of exposure net of collateral
Investment-gradeInvestment-grade$50,030 77 %$30,278 67 %Investment-grade$31,560 80 %$35,097 75 %
Noninvestment-gradeNoninvestment-grade15,137 23 15,157 (a)33 Noninvestment-grade8,118 20 11,508 (a)25 
TotalTotal$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 activitiesCredit derivatives and credit-related notes used in credit portfolio management activitiesCredit 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 commitmentsLoans and lending-related commitments$4,766 $4,138 Loans and lending-related commitments$16,801 $6,422 
Derivative receivablesDerivative receivables19,510 14,573 (b)Derivative receivables14,304 11,721 
Credit derivatives and credit-related notes used in credit portfolio management activitiesCredit 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 20212022 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 sheetsreflected 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 SeptemberJune 30, 20222023 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 increasedadditional weight placed on the adverse scenarios beginning in the first quarter of 2022, due to the effects associated with higher inflation, changes2023, 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 loanthe 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 byalso reflected a reduction related toof $587 million as a decrease in uncertainty associated with borrower behavior as the effectsresult 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, 2022Assumptions at June 30, 2023
4Q222Q234Q234Q232Q244Q24
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, 2021Assumptions at December 31, 2022
2Q224Q222Q232Q234Q232Q24
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, theThe year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentpercentage 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 20212022 Form 10-K for a description of the policies, methodologies and judgments used to determine the Firm’s allowancesallowance 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 64-7270-79 and Note 1112 for additional information on the consumer and wholesale credit portfolios.
Refer to Critical Accounting Estimates Used by the Firm on pages 85-8791-93 for further information on the allowance for credit losses and related management judgments.
7380


Allowance for credit losses and related informationAllowance for credit losses and related informationAllowance for credit losses and related information
2022202120232022
Nine months ended September 30,Consumer, excluding
credit card
Credit cardWholesaleTotalConsumer, excluding
credit card
Credit cardWholesaleTotal
Six months ended June 30,Six months ended June 30,Consumer, excluding
credit card
Credit cardWholesaleTotalConsumer, excluding
credit card
Credit cardWholesaleTotal
(in millions, except ratios)(in millions, except ratios)Consumer, excluding
credit card
Credit cardWholesaleTotalConsumer, excluding
credit card
Credit cardWholesaleTotal(in millions, except ratios)
Allowance for loan lossesAllowance for loan lossesAllowance 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-offsGross charge-offs590 2,294 232 3,116 452 2,957 187 3,596 Gross charge-offs501 2,432 294 3,227 384 1,505 123 2,012 
Gross recoveries collectedGross 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 lossesProvision for loan losses202 1,828 1,733 3,763 (1,778)(3,917)(2,162)(7,857)Provision for loan losses751 2,546 2,067 5,364 237 1,236 1,125 2,598 
OtherOther1  1 2 (2)— (4)(6)Other  25 25 — 
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 commitmentsAllowance for lending-related commitmentsAllowance 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 commitmentsProvision for lending-related commitments(36) 325 289 (45)— (61)(106)Provision for lending-related commitments52  (253)(201)(2)— (37)(39)
OtherOther  1 1 — — Other1  4 5 (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 methodologyImpairment methodologyImpairment 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-basedPortfolio-based2,521 10,182 5,516 18,219 2,445 11,267 4,269 17,981 Portfolio-based3,019 11,600 7,854 22,473 2,605 10,173 5,089 17,867 
Total allowance for loan lossesTotal 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 $17,750 
Impairment methodologyImpairment methodologyImpairment methodology
Asset-specificAsset-specific$ $ $84 $84 $— $— $129 $129 Asset-specific$ $ $65 $65 $— $— $78 $78 
Portfolio-basedPortfolio-based77  2,390 2,467 142 — 2,034 2,176 Portfolio-based129  1,992 2,121 110 — 2,034 2,144 
Total allowance for lending-related commitmentsTotal 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 securitiesTotal allowance for investment securitiesNA$61 NA$73 Total allowance for investment securitiesNANA$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-periodRetained loans, end-of-period$396,195 $191,348 $668,145 $1,255,688 $302,631 $165,494 $584,265 $1,052,390 
Retained loans, averageRetained loans, average298,840 158,721 576,025 1,033,586 299,620 137,012 521,628 958,260 Retained loans, average330,227 183,757 624,566 1,138,550297,566 153,941 568,673 1,020,180
Credit ratiosCredit ratiosCredit ratios
Allowance for loan losses to retained loansAllowance for loan losses to retained loans0.60 %6.10 %1.00 %1.70 %0.63 %8.14 %0.87 %1.86 %Allowance for loan losses to retained loans0.52 %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 NM317 314 38 NM222 259 
Allowance for loan losses to retained nonaccrual loans(e)
Allowance for loan losses to retained nonaccrual loans(e)
54 NM321 345 46 NM260 283 
Allowance for loan losses to retained nonaccrual loans excluding credit cardAllowance for loan losses to retained nonaccrual loans excluding credit card46 NM317 134 38 NM222 93 Allowance for loan losses to retained nonaccrual loans excluding credit card54 NM321 163 46 NM260 117 
Net charge-off/(recovery) ratesNet charge-off/(recovery) rates0.07 1.41 0.03 0.25 (0.01)2.18 0.03 0.32 Net charge-off/(recovery) rates0.16 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 dependentcollateral-dependent loans, including those considered TDRs and those for which foreclosure is deemed probable, modified PCDand nonaccrual risk-rated loans and non-collateral dependent loans that have been modifiedfor 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 SeptemberAs of June 30, 2022, excludes an2023 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, 2022December 31, 2021June 30, 2023December 31, 2022

(in millions, except ratios)

(in millions, except ratios)
Allowance for loan lossesPercent of retained loans to total retained loansAllowance for loan lossesPercent of retained loans to total retained loans
(in millions, except ratios)
Allowance for loan lossesPercent of retained loans to total retained loansAllowance for loan lossesPercent of retained loans to total retained loans
Residential real estateResidential real estate$849 22 %$817 22 %Residential real estate$1,022 26 %$1,070 22 %
Auto and otherAuto and other970 6 948 Auto and other1,026 5 970 
Consumer, excluding credit cardConsumer, excluding credit card1,819 28 1,765 29 Consumer, excluding credit card2,048 32 2,040 28 
Credit cardCredit card10,400 16 10,250 15 Credit card11,600 15 11,200 17 
Total consumerTotal consumer12,219 44 12,015 45 Total consumer13,648 47 13,240 45 
Secured by real estateSecured by real estate1,559 12 1,495 12 Secured by real estate2,548 13 1,782 12 
Commercial and industrialCommercial and industrial3,226 15 1,881 14 Commercial and industrial3,837 14 3,507 15 
OtherOther1,181 29 995 29 Other1,947 27 1,197 28 
Total wholesaleTotal wholesale5,966 56 4,371 55 Total wholesale8,332 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 SeptemberJune 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 42-4345-46 and Note 910 for further information on the investment securities portfolio and internal risk ratings. Refer to Liquidity Risk Management on pages 51-5654-61 for further information on related liquidity risk. Refer to Market Risk Management on pages 77-8184-89 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 Septemberof June 30, 20222023 and December 31, 2021.2022.
(in billions)(in billions)September 30, 2022December 31, 2021(in billions)June 30, 2023December 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 valueTotal 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'sFirm’s 40% ownership stake in C6 Bank.Bank and 49% ownership in Viva Wallet.
Refer to page 132130 of JPMorgan Chase’s 20212022 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 133-140131-138 of JPMorgan Chase’s 20212022 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 149148 of JPMorgan Chase’s 20212022 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 149148 of JPMorgan Chase’s 20212022 Form 10-K for information regarding model reviews and approvals.
Refer to page 135133 of JPMorgan Chase’s 20212022 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 138-140136-138 of JPMorgan Chase’s 20212022 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, 2022June 30, 2022September 30, 2021
(in millions) Avg.MinMax Avg.MinMax Avg.MinMax
CIB trading VaR by risk type
Fixed income$64 $45 $82 $60 $48 $79 $38 $30 $46 
Foreign exchange9 6 15 13 
Equities11 8 14 11 15 11 15 
Commodities and other14 11 20 14 12 17 11 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 VaR51 36 

69 

50 38 66 32 22 44 
Credit Portfolio VaR10 (b)(c)6 (b)17 (b)(c)17 (b)(c)(b)31 (b)(c)
Diversification benefit to CIB VaR(8)(a) NM(e) NM(e)(15)(a)NM(e)NM(e)(4)(a)NM(e)NM(e)
CIB VaR53 38 

71 

52 38 70 33 22 45 
CCB VaR6 4 11 10 
Corporate and other LOB VaR12 (d)10 

13 10 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 VaR14 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, 2023March 31, 2023June 30, 2022
(in millions) Avg.MinMax Avg.MinMax Avg.MinMax
CIB trading VaR by risk type
Fixed income$57 $50 $66 $56 $45 $71 $60 $48 $79 
Foreign exchange12 7 24 10 17 13 
Equities8 5 11 10 11 15 
Commodities and other12 8 17 15 11 19 14 12 17 
Diversification benefit to CIB trading VaR(a)
(48) NM NM(44)NMNM(43)NMNM
CIB trading VaR41 31 

50 

44 34 55 50 38 66 
Credit Portfolio VaR(b)
14 11 18 11 17 17 31 (e)
Diversification benefit to CIB VaR(a)
(11) NM NM(10)NMNM(15)NMNM
CIB VaR44 34 

55 

45 35 58 52 38 70 
CCB VaR9 (d)6 14 11 15 (d)
Corporate and other LOB VaR(c)
13 11 

15 

15 13 17 10 11 
Diversification benefit to other VaR(a)
(7) NM NM(8)NMNM(3)NMNM
Other VaR15 13 19 18 14 22 12 10 14 
Diversification benefit to CIB and other VaR(a)
(12) NM NM(16)NMNM(10)NMNM
Total VaR$47 $36 

$56 

$47 $37 $57 $54 $41 $71 
(a)DiversificationDiversification 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 monthsperiod 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 foroccurred 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 SeptemberJune 30, 20222023, when compared with June 30, 2022,March 31, 2023, reflecting increased market volatility impacting Fixedincreases 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 increaseddecreased by $18$7 million for the three months ended SeptemberJune 30, 2022,2023, compared with the same period in the prior year. This increase wasyear predominantly driven by market volatilityrisk reductions impacting FixedCredit 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
jpm-20220930_g2.jpg4782
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 selectcertain 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, certainother 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 SeptemberJune 30, 2022,2023, the Firm posted backtesting gains on 137134 of the 261259 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 SeptemberJune 30, 2022,2023, the Firm posted backtesting gains on 3334 of the 6665 days, and observed seventwo 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 SeptemberJune 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
jpm-20220930_g3.jpgCapture1.jpg
7986


Earnings-at-riskStructural 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 134132 of JPMorgan Chase’s 20212022 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 usedare a key assumption in the Firm's earnings-at-risk. The baseline and scenarios includereflects 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 scenariosmay differ from actual deposit rates paid,the modeled assumptions, primarily due to repricing lagscustomer 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 (Referincome. 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)(in billions)September 30, 2022December 31, 2021(in billions)June 30, 2023(a)December 31, 2022
Parallel shift:Parallel shift:Parallel shift:
+100 bps shift in rates+100 bps shift in rates$(2.1)$5.0 +100 bps shift in rates$2.5 $(2.0)
-100 bps shift in rates-100 bps shift in rates1.3 NM(a)-100 bps shift in rates(2.2)2.4 
Steeper yield curve:Steeper yield curve:Steeper yield curve:
+100 bps shift in long-term rates+100 bps shift in long-term rates0.7 1.8 +100 bps shift in long-term rates0.6 0.8 
-100 bps shift in short-term rates-100 bps shift in short-term rates2.1 NM(a)-100 bps shift in short-term rates(1.6)3.2 
Flatter yield curve:Flatter yield curve:Flatter yield curve:
+100 bps shift in short-term rates+100 bps shift in short-term rates(2.8)3.2 +100 bps shift in short-term rates1.8 (2.8)
-100 bps shift in long-term rates-100 bps shift in long-term rates(0.8)NM(a)-100 bps shift in long-term rates(0.6)(0.9)
(a)GivenReflects the levelimpact of market interest rates, these scenarios werethe aforementioned model update to incorporate deposit repricing lags. Prior periods have not consideredbeen revised.
In the absence of the model update to be meaningfulincorporate 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.
TheIn addition, the change in the Firm’s U.S. dollar sensitivities as of SeptemberJune 30, 20222023 compared to December 31, 20212022 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 SeptemberJune 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.
87


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, 2022December 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 rates0.6 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, 2023December 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 rates0.8 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 SeptemberJune 30, 20222023 and December 31, 20212022.
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 140138 of JPMorgan Chase’s 20212022 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 SeptemberJune 30, 20222023 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)
Gain/(loss) (in millions)
September 30, 2022December 31, 2021
Gain/(loss) (in millions)
June 30, 2023December 31, 2022
ActivityActivityDescriptionSensitivity measureActivityDescriptionSensitivity measure
Debt and equity(a)
Debt and equity(a)
Debt and equity(a)
Asset Management activitiesAsset 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 equityOther 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 exposuresCredit- and funding-related exposuresCredit- and funding-related exposures
Non-USD LTD cross-currency basisNon-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”) exposureNon-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)15 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 currency4 
Derivatives – funding spread riskDerivatives – 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)(4)
CVA - counterparty credit risk(b)
CVA - counterparty credit risk(b)
Credit risk component of CVA and associated hedges10% credit spread widening(1)N/A
CVA - counterparty credit risk(b)
Credit risk component of CVA and associated hedges10% credit spread widening (1)
Fair value option elected liabilities – funding spread riskFair 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 spread40 41 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 spread45 43 
Fair value option elected liabilities – interest rate sensitivityFair 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 spread2 
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 141-142139-140 of JPMorgan Chase’s 20212022 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 thecounterparty, 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.

82


Risk Reporting
The following table presents the Firm’s top 20 exposures by country (excluding the U.S.) as of SeptemberJune 30, 20222023 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 increaseincreases in exposureexposures to Germany and the decrease in exposure to the U.K.United Kingdom were primarily due to changesdriven by increases in cash placementsplaced 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 recentresulting 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 SeptemberJune 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 exposureTotal exposure
Deposits with banks(b)
Lending(c)
Trading and investing(d)
Other(e)
Total exposureTotal exposure
GermanyGermany$98.6 $5.9 $0.3 $104.8 $61.7 Germany$94.0 $12.5 $5.5 $0.3 $112.3 $93.2 
United KingdomUnited Kingdom60.1 9.9 1.9 71.9 96.4 United Kingdom44.1 25.6 17.4 1.9 89.0 70.1 
JapanJapan31.5 8.7 0.2 40.4 45.5 Japan32.7 2.7 7.7 0.3 43.4 55.8 
Australia16.2 4.4  20.6 39.1 
France11.7 2.8 4.1 18.6 14.0 
Switzerland12.9 1.4 2.7 17.0 20.9 
BrazilBrazil7.7 8.3  16.0 12.0 Brazil1.9 4.6 11.2  17.7 17.8 
CanadaCanada13.0 2.6 0.2 15.8 16.9 Canada2.4 10.7 3.0 0.2 16.3 14.4 
AustraliaAustralia5.0 6.3 3.0  14.3 25.7 
SwitzerlandSwitzerland7.6 3.3 1.4 1.7 14.0 15.3 
FranceFrance0.4 10.7 0.1 1.4 12.6 18.1 
ChinaChina9.6 5.1 0.1 14.8 18.6 China3.3 5.0 4.1  12.4 13.7 
BelgiumBelgium6.7 1.7 1.4  9.8 9.2 
SingaporeSingapore6.6 3.7 0.5 10.8 12.3 Singapore1.8 3.9 3.6 0.2 9.5 9.9 
IndiaIndia1.2 3.6 3.9 0.6 9.3 9.0 
South KoreaSouth Korea4.7 4.5 0.1 9.3 8.7 South Korea1.0 3.8 3.5 0.2 8.5 10.0 
NetherlandsNetherlands0.1 6.4 0.6 0.2 7.3 7.1 
MexicoMexico1.0 4.3 2.0  7.3 5.4 
Saudi ArabiaSaudi Arabia0.8 4.0 1.8  6.6 7.9 
SpainSpain8.4 0.8  9.2 10.1 Spain0.4 5.1 0.9  6.4 5.8 
India5.3 2.9 0.7 8.9 14.7 
Saudi Arabia5.7 2.4  8.1 9.1 
Belgium6.3 1.3  7.6 6.8 
Hong Kong SARHong Kong SAR2.3 1.4 0.8 0.4 4.9 4.5 
LuxembourgLuxembourg4.7 1.5  6.2 11.5 Luxembourg0.8 2.6 1.3  4.7 5.3 
Netherlands6.2 (0.4)0.4 6.2 6.8 
Malaysia4.6 0.7 0.3 5.6 2.7 
Mexico4.6 0.3  4.9 4.9 
Hong Kong SAR2.6 1.2  3.8 5.9 
SwedenSweden1.2 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 SeptemberJune 30, 20222023 and December 31, 2021, respectively.2022.
(b)Lending and deposits includesPredominantly 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 representsIncludes 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 SeptemberJune 30, 2022,2023, not actual rankings of such exposures atas of December 31, 2021.2022.
83


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 20212022 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 73-7580-82 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 MEVsmacroeconomic 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 scenarioscen
91


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 thirdfirst 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 secondfirst 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 SeptemberJune 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.
85


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 SeptemberJune 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 SeptemberJune 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 valueTotal level 3 assets
June 30, 2023
(in millions, except ratios)
June 30, 2023
(in millions, except ratios)
Total assets at fair valueTotal level 3 assets
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements$299.2 $— Federal funds sold and securities purchased under resale agreements$322,579 $— 
Securities borrowedSecurities borrowed67.3 — Securities borrowed55,905 — 
Trading assets:Trading assets:Trading assets:
Trading–debt and equity instrumentsTrading–debt and equity instruments413.9 2.9 Trading–debt and equity instruments572,739 3,313 
Derivative receivables(a)
Derivative receivables(a)
92.5 11.1 
Derivative receivables(a)
64,217 10,749 
Total trading assetsTotal trading assets506.4 14.0 Total trading assets636,956 14,062 
AFS securitiesAFS securities188.1 0.2 AFS securities203,262 267 
LoansLoans41.6 1.6 Loans38,789 3,808 
MSRsMSRs8.1 8.1 MSRs8,229 8,229 
OtherOther14.0 0.4 Other13,250 417 
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 basisTotal assets measured at fair value on a nonrecurring basis3.2 2.0 Total assets measured at fair value on a nonrecurring basis1,936 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 assetsTotal 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 SeptemberJune 30, 20222023 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 acceleratedhigher 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 152pages 151-152 of JPMorgan Chase’s 20212022 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 152-153page 152 of JPMorgan Chase’s 20212022 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 152151 of JPMorgan Chase’s 20212022 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 SeptemberJune 30, 2022.2023.
Litigation reserves
Refer to Note 2426 of this Form 10-Q, and Note 30 of JPMorgan Chase’s 20212022 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
StandardSummary of guidanceEffects 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 wasand December 21, 2022 updates were effective when issued.
The Firm electedRefer to apply certainAccounting 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
StandardSummary of guidanceEffects 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 guidancerequirements 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
StandardSummary of guidanceEffects 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 20212022 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)2022202120222021(in millions, except per share data)2023202220232022
RevenueRevenueRevenue
Investment banking feesInvestment banking fees$1,674 $3,282 $5,268 $9,722 Investment banking fees$1,513 $1,586 $3,162 $3,594 
Principal transactionsPrincipal transactions5,383 3,546 15,478 14,122 Principal transactions6,910 4,990 14,525 10,095 
Lending- and deposit-related feesLending- and deposit-related fees1,731 1,801 5,443 5,248 Lending- and deposit-related fees1,828 1,873 3,448 3,712 
Asset management, administration and commissions5,069 5,257 15,671 15,480 
Asset management feesAsset management fees3,774 3,517 7,239 7,169 
Commissions and other feesCommissions and other fees1,739 1,723 3,434 3,433 
Investment securities lossesInvestment securities losses(959)(256)(1,506)(397)Investment securities losses(900)(153)(1,768)(547)
Mortgage fees and related incomeMortgage fees and related income314 600 1,152 1,855 Mortgage fees and related income278 378 499 838 
Card incomeCard income1,086 1,005 3,194 4,002 Card income1,094 1,133 2,328 2,108 
Other incomeOther income900 1,332 2,930 3,650 Other income3,292 540 4,299 2,030 
Noninterest revenueNoninterest revenue15,198 16,567 47,630 53,682 Noninterest revenue19,528 15,587 37,166 32,432 
Interest incomeInterest income25,611 14,480 59,753 42,845 Interest income41,644 18,646 78,648 34,142 
Interest expenseInterest expense8,093 1,400 13,235 4,135 Interest expense19,865 3,518 36,158 5,142 
Net interest incomeNet interest income17,518 13,080 46,518 38,710 Net interest income21,779 15,128 42,490 29,000 
Total net revenueTotal net revenue32,716 29,647 94,148 92,392 Total net revenue41,307 30,715 79,656 61,432 
Provision for credit lossesProvision for credit losses1,537 (1,527)4,101 (7,968)Provision for credit losses2,899 1,101 5,174 2,564 
Noninterest expenseNoninterest expenseNoninterest expense
Compensation expenseCompensation expense10,539 9,087 31,627 29,502 Compensation expense11,216 10,301 22,892 21,088 
Occupancy expenseOccupancy expense1,162 1,109 3,425 3,314 Occupancy expense1,070 1,129 2,185 2,263 
Technology, communications and equipment expenseTechnology, communications and equipment expense2,366 2,473 7,102 7,480 Technology, communications and equipment expense2,267 2,376 4,451 4,736 
Professional and outside servicesProfessional and outside services2,481 2,523 7,522 7,111 Professional and outside services2,561 2,469 5,009 5,041 
MarketingMarketing1,017 712 2,818 2,089 Marketing1,122 881 2,167 1,801 
Other expenseOther expense1,613 1,159 4,624 3,959 Other expense2,586 1,593 4,225 3,011 
Total noninterest expenseTotal noninterest expense19,178 17,063 57,118 53,455 Total noninterest expense20,822 18,749 40,929 37,940 
Income before income tax expenseIncome before income tax expense12,001 14,111 32,929 46,905 Income before income tax expense17,586 10,865 33,553 20,928 
Income tax expenseIncome tax expense2,264 2,424 6,261 8,970 Income tax expense3,114 2,216 6,459 3,997 
Net incomeNet income$9,737 $11,687 $26,668 $37,935 Net income$14,472 $8,649 $27,094 $16,931 
Net income applicable to common stockholdersNet 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 dataNet income per common share dataNet income per common share data
Basic earnings per shareBasic 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 shareDiluted earnings per share3.12 3.74 8.51 12.02 Diluted earnings per share4.75 2.76 8.85 5.39 
Weighted-average basic sharesWeighted-average basic shares2,961.2 2,999.9 2,966.8 3,036.4 Weighted-average basic shares2,943.8 2,962.2 2,956.1 2,969.6 
Weighted-average diluted sharesWeighted-average diluted shares2,965.4 3,005.1 2,970.9 3,041.7 Weighted-average diluted shares2,948.3 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)2022202120222021(in millions)2023202220232022
Net incomeNet income$9,737 $11,687 $26,668 $37,935 Net income$14,472 $8,649 $27,094 $16,931 
Other comprehensive income/(loss), after–taxOther comprehensive income/(loss), after–taxOther comprehensive income/(loss), after–tax
Unrealized losses on investment securities(2,145)(434)(13,629)(4,099)
Unrealized gains/(losses) on investment securitiesUnrealized gains/(losses) on investment securities757 (4,031)2,969 (11,484)
Translation adjustments, net of hedgesTranslation adjustments, net of hedges(581)(187)(1,322)(373)Translation adjustments, net of hedges70 (679)267 (741)
Fair value hedgesFair value hedges38 199 (42)Fair value hedges11 51 (10)161 
Cash flow hedgesCash flow hedges(1,698)(450)(5,837)(2,108)Cash flow hedges(497)(1,348)301 (4,139)
Defined benefit pension and OPEB plansDefined benefit pension and OPEB plans(1,004)(917)83 Defined benefit pension and OPEB plans(6)20 (61)87 
DVA on fair value option elected liabilitiesDVA on fair value option elected liabilities625 (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–taxTotal other comprehensive income/(loss), after–tax128 (4,802)3,051 (14,285)
Comprehensive incomeComprehensive 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, 2022December 31, 2021(in millions, except share data)June 30, 2023December 31, 2022
AssetsAssetsAssets
Cash and due from banksCash and due from banks$24,654 $26,438 Cash and due from banks$26,064 $27,697 
Deposits with banksDeposits with banks619,533 714,396 Deposits with banks469,059 539,537 
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 securitiesHeld-to-maturity securities408,941 425,305 
Investment securities, net of allowance for credit lossesInvestment securities, net of allowance for credit losses618,246 672,232 Investment securities, net of allowance for credit losses612,203 631,162 
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 lossesAllowance for loan losses(18,185)(16,386)Allowance for loan losses(21,980)(19,726)
Loans, net of allowance for loan lossesLoans, net of allowance for loan losses1,094,448 1,061,328 Loans, net of allowance for loan losses1,278,089 1,115,921 
Accrued interest and accounts receivableAccrued interest and accounts receivable143,905 102,570 Accrued interest and accounts receivable111,561 125,189 
Premises and equipmentPremises and equipment27,199 27,070 Premises and equipment29,493 27,734 
Goodwill, MSRs and other intangible assetsGoodwill, MSRs and other intangible assets60,806 56,691 Goodwill, MSRs and other intangible assets64,238 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 
LiabilitiesLiabilitiesLiabilities
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 liabilitiesTrading liabilities189,878 164,693 Trading liabilities178,809 177,976 
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’ equityStockholders’ equityStockholders’ 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 capitalAdditional paid-in capital88,865 88,415 Additional paid-in capital89,578 89,044 
Retained earningsRetained earnings288,776 272,268 Retained earnings317,359 296,456 
Accumulated other comprehensive lossesAccumulated 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’ equityTotal stockholders’ equity288,018 294,127 Total stockholders’ equity312,516 292,332 
Total liabilities and stockholders’ equityTotal 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 SeptemberJune 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, 2022December 31, 2021(in millions)June 30, 2023December 31, 2022
AssetsAssetsAssets
Trading assetsTrading assets$1,991 $2,010 Trading assets$2,368 $2,151 
LoansLoans31,597 33,024 Loans39,125 34,411 
All other assetsAll other assets562 490 All other assets532 550 
Total assetsTotal assets$34,150 $35,524 Total assets$42,025 $37,112 
LiabilitiesLiabilitiesLiabilities
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs$12,079 $10,750 Beneficial interests issued by consolidated VIEs$19,647 $12,610 
All other liabilitiesAll other liabilities274 245 All other liabilities247 279 
Total liabilitiesTotal 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.
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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)2022202120222021(in millions, except per share data)2023202220232022
Preferred stockPreferred stockPreferred stock
Balance at the beginning of the periodBalance 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 
IssuanceIssuance 2,000  7,350 Issuance —  — 
RedemptionRedemption — (2,000)(2,575)Redemption —  (2,000)
Balance at September 3032,838 34,838 32,838 34,838 
Balance at June 30Balance at June 3027,404 32,838 27,404 32,838 
Common stockCommon stockCommon stock
Balance at the beginning and end of the periodBalance at the beginning and end of the period4,105 4,105 4,105 4,105 Balance at the beginning and end of the period4,105 4,105 4,105 4,105 
Additional paid-in capitalAdditional paid-in capitalAdditional paid-in capital
Balance at the beginning of the periodBalance at the beginning of the period88,614 88,194 88,415 88,394 Balance at the beginning of the period89,155 88,260 89,044 88,415 
Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effectsShares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects251 227 450 93 Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects423 354 534 199 
Other (64) (130)
Balance at September 3088,865 88,357 88,865 88,357 
Balance at June 30Balance at June 3089,578 88,614 89,578 88,614 
Retained earningsRetained earningsRetained earnings
Balance at the beginning of the periodBalance at the beginning of the period282,445 256,983 272,268 236,990 Balance at the beginning of the period306,208 277,177 296,456 272,268 
Cumulative effect of change in accounting principlesCumulative effect of change in accounting principles — 449 — 
Net incomeNet income9,737 11,687 26,668 37,935 Net income14,472 8,649 27,094 16,931 
Dividends declared:Dividends declared:Dividends declared:
Preferred stockPreferred 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 30288,776 265,276 288,776 265,276 
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 30Balance at June 30317,359 282,445 317,359 282,445 
Accumulated other comprehensive income/(loss)Accumulated other comprehensive income/(loss)Accumulated other comprehensive income/(loss)
Balance at the beginning of the periodBalance 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-taxOther comprehensive income/(loss), after-tax128 (4,802)3,051 (14,285)
Balance at June 30Balance at June 30(14,290)(14,369)(14,290)(14,369)
Treasury stock, at costTreasury stock, at costTreasury stock, at cost
Balance at the beginning of the periodBalance 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)
RepurchaseRepurchase (5,240)(3,122)(16,440)Repurchase(2,316)(622)(5,271)(3,122)
ReissuanceReissuance58 46 1,105 1,126 Reissuance48 46 967 1,047 
Balance at September 30(107,432)(103,498)(107,432)(103,498)
Balance at June 30Balance at June 30(111,640)(107,490)(111,640)(107,490)
Total stockholders’ equityTotal 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.
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JPMorgan Chase & Co.
Consolidated statements of cash flows (unaudited)
Nine months ended September 30,Six months ended June 30,
(in millions)(in millions)20222021(in millions)20232022
Operating activitiesOperating activitiesOperating activities
Net incomeNet 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 lossesProvision for credit losses4,101 (7,968)Provision for credit losses5,174 2,564 
Depreciation and amortizationDepreciation and amortization5,380 6,001 Depreciation and amortization2,156 3,609 
Deferred tax (benefit)/expenseDeferred tax (benefit)/expense(3,455)(1,063)Deferred tax (benefit)/expense(2,238)(2,086)
Bargain purchase gain associated with the First Republic acquisitionBargain purchase gain associated with the First Republic acquisition(2,712)— 
OtherOther3,815 2,662 Other3,008 2,172 
Originations and purchases of loans held-for-saleOriginations 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-saleProceeds from sales, securitizations and paydowns of loans held-for-sale149,420 244,966 Proceeds from sales, securitizations and paydowns of loans held-for-sale47,746 116,764 
Net change in:Net change in:Net change in:
Trading assetsTrading assets(114,006)2,700 Trading assets(178,766)(53,816)
Securities borrowedSecurities borrowed12,347 (42,471)Securities borrowed21,835 3,379 
Accrued interest and accounts receivableAccrued interest and accounts receivable(41,621)(26,148)Accrued interest and accounts receivable16,107 (43,051)
Other assetsOther assets(17,114)(358)Other assets44,599 (14,930)
Trading liabilitiesTrading liabilities34,950 (10,668)Trading liabilities(4,846)23,646 
Accounts payable and other liabilitiesAccounts payable and other liabilities75,961 47,547 Accounts payable and other liabilities(24,563)70,976 
Other operating adjustmentsOther operating adjustments1,040 (987)Other operating adjustments1,300 800 
Net cash provided by/(used in) operating activitiesNet cash provided by/(used in) operating activities5,897 (7,011)Net cash provided by/(used in) operating activities(92,376)24,101 
Investing activitiesInvesting activitiesInvesting activities
Net change in:Net change in:Net change in:
Federal funds sold and securities purchased under resale agreementsFederal 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 maturitiesProceeds from paydowns and maturities33,542 39,106 Proceeds from paydowns and maturities13,762 20,952 
PurchasesPurchases(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 maturitiesProceeds from paydowns and maturities30,646 39,346 Proceeds from paydowns and maturities23,470 21,913 
Proceeds from salesProceeds from sales62,252 146,858 Proceeds from sales69,875 36,217 
PurchasesPurchases(75,204)(163,211)Purchases(52,433)(66,200)
Proceeds from sales and securitizations of loans held-for-investmentProceeds from sales and securitizations of loans held-for-investment36,199 25,981 Proceeds from sales and securitizations of loans held-for-investment19,526 22,185 
Other changes in loans, netOther changes in loans, net(96,151)(45,028)Other changes in loans, net(33,353)(67,802)
Net cash used in the First Republic acquisitionNet cash used in the First Republic acquisition(9,920)— 
All other investing activities, netAll 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 activitiesNet cash provided by/(used in) investing activities5,551 (125,811)
Financing activitiesFinancing activitiesFinancing activities
Net change in:Net change in:Net change in:
DepositsDeposits(44,336)234,716 Deposits(27,782)5,841 
Federal funds purchased and securities loaned or sold under repurchase agreementsFederal funds purchased and securities loaned or sold under repurchase agreements45,910 39,753 Federal funds purchased and securities loaned or sold under repurchase agreements63,590 28,586 
Short-term borrowingsShort-term borrowings(4,813)4,710 Short-term borrowings(3,135)5,622 
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs2,042 (1,839)Beneficial interests issued by consolidated VIEs7,708 552 
Proceeds from long-term borrowingsProceeds from long-term borrowings68,944 69,272 Proceeds from long-term borrowings19,357 45,873 
Payments of long-term borrowingsPayments 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 stockRedemption of preferred stock(2,000)(2,575)Redemption of preferred stock (2,000)
Treasury stock repurchasedTreasury stock repurchased(3,162)(16,286)Treasury stock repurchased(5,167)(3,162)
Dividends paidDividends paid(10,186)(9,472)Dividends paid(6,651)(6,774)
All other financing activities, netAll other financing activities, net1,158 (1,573)All other financing activities, net(1,275)423 
Net cash provided by financing activitiesNet cash provided by financing activities16,087 278,015 Net cash provided by financing activities14,642 48,970 
Effect of exchange rate changes on cash and due from banks and deposits with banksEffect 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 banks72 (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 banksNet 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 periodCash and due from banks and deposits with banks at the beginning of the period740,834 527,609 Cash and due from banks and deposits with banks at the beginning of the period567,234 740,834 
Cash and due from banks and deposits with banks at the end of the periodCash 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 paidCash interest paid$11,075 $3,882 Cash interest paid$35,250 $4,457 
Cash income taxes paid, netCash income taxes paid, net226 17,617 Cash income taxes paid, net5,466 3,100 
The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.
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Refer to the Glossary of Terms and Acronyms on pages 184-192200–205 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 20212022 Form 10-K.
Certain amounts reported in prior periods have been reclassifiedrevised 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 20212022 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 activitiesbalances 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 20212022 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.
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Note 2 – Fair value measurement
Refer to Note 2 of JPMorgan Chase’s 20212022 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.

96103


The following table presents the assets and liabilities reported at fair value as of SeptemberJune 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 basisAssets and liabilities measured at fair value on a recurring basisAssets 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 1Level 2Level 3Total fair value
June 30, 2023 (in millions)June 30, 2023 (in millions)Level 1Level 2Level 3
Derivative
netting
adjustments
(f)
Total fair value
Federal funds sold and securities purchased under resale agreementsFederal 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 borrowedSecurities 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 – nonagencyResidential – nonagency 2,188 9  2,197 Residential – nonagency 2,684 5  2,689 
Commercial – nonagencyCommercial – nonagency 1,432 11  1,443 Commercial – nonagency 1,517 6  1,523 
Total mortgage-backed securitiesTotal 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 municipalitiesObligations 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 paperCertificates 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 securitiesNon-U.S. government debt securities28,727 44,693 166  73,586 Non-U.S. government debt securities41,423 63,986 199  105,608 
Corporate debt securitiesCorporate debt securities 26,427 348  26,775 Corporate debt securities 33,106 522  33,628 
LoansLoans 5,210 865  6,075 Loans 6,984 1,105  8,089 
Asset-backed securitiesAsset-backed securities 2,627 26  2,653 Asset-backed securities 2,497 14  2,511 
Total debt instrumentsTotal debt instruments104,769 180,360 2,208  287,337 Total debt instruments170,465 218,363 2,563  391,391 
Equity securitiesEquity securities91,572 2,109 580  94,261 Equity securities148,222 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 
OtherOther 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 rateInterest rate12,023 263,527 3,582 (253,300)25,832 Interest rate1,988 282,125 4,199 (260,603)27,709 
CreditCredit 13,215 719 (12,063)1,871 Credit 12,535 1,150 (12,440)1,245 
Foreign exchangeForeign exchange886 353,603 1,344 (318,966)36,867 Foreign exchange204 226,130 1,345 (205,485)22,194 
EquityEquity 80,920 4,881 (74,175)11,626 Equity 57,619 3,773 (54,068)7,324 
CommodityCommodity 38,348 606 (22,616)16,338 Commodity 17,358 282 (11,895)5,745 
Total derivative receivablesTotal derivative receivables12,909 749,613 11,132 (681,120)92,534 Total derivative receivables2,192 595,767 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 – nonagencyResidential – nonagency 4,762   4,762 Residential – nonagency 3,544   3,544 
Commercial – nonagencyCommercial – nonagency 1,937   1,937 Commercial – nonagency 2,056   2,056 
Total mortgage-backed securitiesTotal mortgage-backed securities 60,030   60,030 Total mortgage-backed securities1 85,367   85,368 
U.S. Treasury and government agenciesU.S. Treasury and government agencies90,487    90,487 U.S. Treasury and government agencies62,688 49   62,737 
Obligations of U.S. states and municipalitiesObligations 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 securitiesNon-U.S. government debt securities6,547 8,054   14,601 Non-U.S. government debt securities13,397 8,643   22,040 
Corporate debt securitiesCorporate debt securities 119 180  299 Corporate debt securities 121 267  388 
Asset-backed securities:Asset-backed securities:Asset-backed securities:
Collateralized loan obligationsCollateralized 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 securitiesTotal available-for-sale securities97,034 90,926 180  188,140 Total available-for-sale securities76,086 126,909 267  203,262 
Loans(e)
Loans(e)
 39,913 1,574  41,487 
Loans(e)
 34,981 3,808  38,789 
Mortgage servicing rightsMortgage 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 basisTotal 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)$1,278,970 
DepositsDeposits$ $19,109 $1,826 $ $20,935 Deposits$ $49,515 $2,053 $ $51,568 
Federal funds purchased and securities loaned or sold under repurchase agreementsFederal 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 borrowingsShort-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 rateInterest rate7,373 255,680 3,027 (248,681)17,399 Interest rate1,610 270,411 5,321 (262,185)15,157 
CreditCredit 10,814 376 (10,456)734 Credit 13,306 461 (13,201)566 
Foreign exchangeForeign exchange727 351,568 837 (330,302)22,830 Foreign exchange185 222,444 956 (209,408)14,177 
EquityEquity 74,707 5,207 (71,775)8,139 Equity 62,016 5,654 (57,865)9,805 
CommodityCommodity 31,415 407 (24,221)7,601 Commodity 18,650 635 (12,445)6,840 
Total derivative payablesTotal derivative payables8,100 724,184 9,854 (685,435)56,703 Total derivative payables1,795 586,827 13,027 (555,104)46,545 
Total trading liabilitiesTotal trading liabilities112,032 753,356 9,925 (685,435)189,878 Total trading liabilities103,232 617,591 13,090 (555,104)178,809 
Accounts payable and other liabilitiesAccounts payable and other liabilities4,445 1,423 69  5,937 Accounts payable and other liabilities3,486 1,547 68  5,101 
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs 5   5 Beneficial interests issued by consolidated VIEs 1   1 
Long-term debtLong-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 basisTotal 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 
97104


Fair value hierarchy
Derivative
netting
adjustments
(f)
Fair value hierarchy
Derivative
netting
adjustments
(f)
December 31, 2021 (in millions)Level 1Level 2Level 3Total fair value
December 31, 2022 (in millions)December 31, 2022 (in millions)Level 1Level 2Level 3
Derivative
netting
adjustments
(f)
Total fair value
Federal funds sold and securities purchased under resale agreementsFederal 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 borrowedSecurities 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 – nonagencyResidential – nonagency— 2,358 28 — 2,386 Residential – nonagency— 2,498 — 2,503 
Commercial – nonagencyCommercial – nonagency— 1,506 10 — 1,516 Commercial – nonagency— 1,448 — 1,455 
Total mortgage-backed securitiesTotal 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 municipalitiesObligations of U.S. states and municipalities— 7,068 — 7,075 Obligations of U.S. states and municipalities— 6,608 — 6,615 
Certificates of deposit, bankers’ acceptances and commercial paperCertificates 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 securitiesNon-U.S. government debt securities26,982 44,581 81 — 71,644 Non-U.S. government debt securities18,213 48,429 155 — 66,797 
Corporate debt securitiesCorporate debt securities— 24,491 332 — 24,823 Corporate debt securities— 25,626 463 — 26,089 
LoansLoans— 7,366 708 — 8,074 Loans— 5,744 759 — 6,503 
Asset-backed securitiesAsset-backed securities— 2,668 26 — 2,694 Asset-backed securities— 2,536 23 — 2,559 
Total debt instrumentsTotal debt instruments95,509 139,015 1,457 — 235,981 Total debt instruments79,404 171,606 2,178 — 253,188 
Equity securitiesEquity securities86,904 1,741 662 — 89,307 Equity securities82,483 2,060 665 — 85,208 
Physical commodities(b)
Physical commodities(b)
5,357 20,788 — — 26,145 
Physical commodities(b)
9,595 16,673 — 26,270 
OtherOther— 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 rateInterest rate1,072 267,493 

2,020 (248,611)21,974 Interest rate3,390 292,956 

4,069 (271,996)28,419 
CreditCredit— 9,321 518 (8,808)1,031 Credit— 9,722 607 (9,239)1,090 
Foreign exchangeForeign exchange134 168,590 

855 (156,954)12,625 Foreign exchange169 240,207 

1,203 (218,214)23,365 
EquityEquity— 65,139 3,492 (58,650)9,981 Equity— 57,485 4,428 (52,774)9,139 
CommodityCommodity— 26,232 421 (15,183)11,470 Commodity— 24,982 375 (16,490)8,867 
Total derivative receivablesTotal derivative receivables1,206 536,775 

7,306 (488,206)57,081 Total derivative receivables3,559 625,352 

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)
72,539 — — 72,543 
U.S. GSEs and government agencies(a)
71,500 — — 71,503 
Residential – nonagencyResidential – nonagency— 6,070 — — 6,070 Residential – nonagency— 4,620 — — 4,620 
Commercial – nonagencyCommercial – nonagency— 4,949 — — 4,949 Commercial – nonagency— 1,958 — — 1,958 
Total mortgage-backed securitiesTotal mortgage-backed securities83,558 — — 83,562 Total mortgage-backed securities78,078 — — 78,081 
U.S. Treasury and government agenciesU.S. Treasury and government agencies177,463 — — — 177,463 U.S. Treasury and government agencies92,060 — — — 92,060 
Obligations of U.S. states and municipalitiesObligations 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 securitiesNon-U.S. government debt securities5,430 10,779 — — 16,209 Non-U.S. government debt securities10,591 9,105 — — 19,696 
Corporate debt securitiesCorporate debt securities— 160 161 — 321 Corporate debt securities— 118 239 — 357 
Asset-backed securities:Asset-backed securities:Asset-backed securities:
Collateralized loan obligationsCollateralized loan obligations— 9,662 — — 9,662 Collateralized loan obligations— 5,792 — — 5,792 
OtherOther— 5,448 — — 5,448 Other— 3,085 — — 3,085 
Total available-for-sale securitiesTotal available-for-sale securities182,897 125,467 161 — 308,525 Total available-for-sale securities102,654 102,964 239 — 205,857 
Loans(e)
Loans(e)
— 56,887 1,933 — 58,820 
Loans(e)
— 40,661 1,418 — 42,079 
Mortgage servicing rightsMortgage 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 basisTotal 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)$1,105,603 
DepositsDeposits$— $9,016 $2,317 $— $11,333 Deposits$— $26,458 $2,162 $— $28,620 
Federal funds purchased and securities loaned or sold under repurchase agreementsFederal 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 borrowingsShort-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 rateInterest rate981 237,714 

2,036 (232,537)8,194 Interest rate2,643 284,280 

3,368 (274,321)15,970 
CreditCredit— 10,468 

444 (10,032)880 Credit— 9,377 

594 (9,217)754 
Foreign exchangeForeign exchange123 174,349 

1,274 (161,649)14,097 Foreign exchange160 250,647 

714 (232,665)18,856 
EquityEquity— 72,609 

7,118 (62,494)17,233 Equity— 57,649 

4,812 (53,657)8,804 
CommodityCommodity— 26,600 

1,328 (18,216)9,712 Commodity— 22,748 

521 (16,512)6,757 
Total derivative payablesTotal derivative payables1,104 521,740 

12,200 (484,928)50,116 Total derivative payables2,803 624,701 

10,009 (586,372)51,141 
Total trading liabilitiesTotal trading liabilities88,935 548,456 

12,230 (484,928)164,693 Total trading liabilities101,522 652,733 

10,093 (586,372)177,976 
Accounts payable and other liabilitiesAccounts payable and other liabilities5,115 467 

69 — 5,651 Accounts payable and other liabilities5,702 1,283 

53 — 7,038 
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs— 12 

— — 12 Beneficial interests issued by consolidated VIEs— 

— — 
Long-term debtLong-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 basisTotal 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 SeptemberJune 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 SeptemberJune 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 SeptemberJune 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 SeptemberJune 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 20212022 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, 2023June 30, 2023
Product/InstrumentProduct/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 flowsYield3%20%7%
Residential mortgage-backed securities and loans(b)
$1,641 Discounted cash flowsYield6%40%7%
Prepayment speed3%11%8%Prepayment speed3%11%8%
Conditional default rate0%5%0%Conditional default rate0%5%0%
Loss severity0%110%4%Loss severity0%110%3%
Commercial mortgage-backed securities and loans(c)
Commercial mortgage-backed securities and loans(c)
413 Market comparablesPrice$0$100$83
Commercial mortgage-backed securities and loans(c)
2,318 Market comparablesPrice$0$101$84
Corporate debt securitiesCorporate debt securities528 Market comparablesPrice$0$110$95Corporate debt securities789 Market comparablesPrice$0$242$95
Loans(d)
Loans(d)
1,137 Market comparablesPrice$0$356$83
Loans(d)
1,671 Market comparablesPrice$0$108$78
Non-U.S. government debt securitiesNon-U.S. government debt securities166 Market comparablesPrice$6$100$90Non-U.S. government debt securities199 Market comparablesPrice$6$106$91
Net interest rate derivativesNet interest rate derivatives580 Option pricingInterest rate volatility28 bps682 bps131 bpsNet interest rate derivatives(1,105)Option pricingInterest rate volatility26 bps674 bps131 bps
Interest rate spread volatility23 bps35 bps26 bpsInterest rate spread volatility37 bps77 bps64 bps
Bermudan switch value8%58%18%Bermudan switch value0%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 flowsPrepayment speed0%21%7%(17)Discounted cash flowsPrepayment speed0%15%5%
Net credit derivativesNet credit derivatives320 Discounted cash flowsCredit correlation30%60%44%Net credit derivatives673 Discounted cash flowsCredit correlation35%65%48%
Credit spread1 bps6,152 bps678 bpsCredit spread0 bps11,279 bps342 bps
Recovery rate15%67%46%Recovery rate10%90%40%
23 Market comparablesPrice$15$104$8216 Market comparablesPrice$15$115$83
Net foreign exchange derivativesNet foreign exchange derivatives595 Option pricingIR-FX correlation(40)%60%20%Net foreign exchange derivatives461 Option pricingIR-FX correlation(40)%60%19%
(88)Discounted cash flowsPrepayment speed9%9%(72)Discounted cash flowsPrepayment speed11%11%
Interest rate curve2%32%8%Interest rate curve0%30%6%
Net equity derivativesNet 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 volatility5%146%38%Equity volatility3%167%32%
Equity correlation17%99%55%Equity correlation15%100%58%
Equity-FX correlation(86)%60%(28)%Equity-FX correlation(86)%60%(29)%
Equity-IR correlation15%50%27%Equity-IR correlation10%35%21%
Net commodity derivativesNet commodity derivatives199 Option pricingOil commodity forward$65 / BBL$319 / BBL$192 / BBLNet commodity derivatives(353)Option pricingOil commodity forward$95 / BBL$249 / BBL$172 / BBL
Natural gas commodity forward$2 / MMBTU$18 / MMBTU$10 / MMBTUNatural gas commodity forward$1 / MMBTU$7 / MMBTU$4 / MMBTU
Commodity volatility4%144%74%Commodity volatility5%175%90%
Commodity correlation(30)%77%24%Commodity correlation(28)%80%26%
MSRsMSRs8,140 Discounted cash flowsRefer to Note 14MSRs8,229 Discounted cash flowsRefer to Note 15
Long-term debt, short-term borrowings, and deposits(e)
Long-term debt, short-term borrowings, and deposits(e)
24,723 Option pricingInterest rate volatility28 bps682 bps131 bps
Long-term debt, short-term borrowings, and deposits(e)
27,806 Option pricingInterest rate volatility26 bps674 bps131 bps
Interest rate correlation(85)%89%16%Bermudan switch value0%58%20%
IR-FX correlation(35)%60%7%Interest rate correlation(82)%90%15%
Equity correlation17%99%55%IR-FX correlation(35)%60%5%
Equity-FX correlation(86)%60%(28)%Equity correlation15%100%58%
Equity-IR correlation15%50%27%Equity-FX correlation(86)%60%(29)%
Long-term debt, short-term borrowings, and deposits(e)
Equity-IR correlation10%35%21%
1,115 Discounted cash flowsCredit correlation30%60%44%1,376 Discounted cash flowsCredit correlation35%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.
100107


Changes in and ranges of unobservable inputs
Refer to Note 2 of JPMorgan Chase’s 20212022 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 SeptemberJune 30, 20222023 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.




101108


Fair value measurements using significant unobservable inputsFair 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 3Fair 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 3Fair 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 agreementsFederal 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 agenciesU.S. GSEs and government agencies803 5 5  (32) (5)776 5 U.S. GSEs and government agencies757  106 (106)(40) (11)706 (6)
Residential – nonagencyResidential – nonagency14  1 (5)  (1)9  Residential – nonagency5 6  (6)   5  
Commercial – nonagencyCommercial – nonagency10 (1) (1) 3  11 (1)Commercial – nonagency10 (1)   5 (8)6 (1)
Total mortgage-backed securitiesTotal mortgage-backed securities827 4 6 (6)(32)3 (6)796 4 Total mortgage-backed securities772 5 106 (112)(40)5 (19)717 (7)
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities7 1  (1)   7 1 Obligations of U.S. states and municipalities6       6  
Non-U.S. government debt securitiesNon-U.S. government debt securities205 (11)21 (22)(4)8 (31)166 (11)Non-U.S. government debt securities169 29 50 (49)   199 31 
Corporate debt securitiesCorporate debt securities574 2 45 (75)(28)66 (236)348 11 Corporate debt securities538  61 (43)(2)7 (39)522 (2)
LoansLoans898 (15)103 (144)(43)252 (186)865 (16)Loans926 (6)246 (65)(18)102 (80)1,105 (6)
Asset-backed securitiesAsset-backed securities20 5 15 (13)  (1)26 1 Asset-backed securities7  4 (1) 4  14  
Total debt instrumentsTotal debt instruments2,531 (14)190 (261)(107)329 (460)2,208 (10)Total debt instruments2,418 28 467 (270)(60)118 (138)2,563 16 
Equity securitiesEquity securities661 (43)16 (60)(2)18 (10)580 (46)Equity securities581 (16)50 (36) 104 (52)631 (16)
Physical commoditiesPhysical commodities2 (1)1     2 (1)Physical commodities  6     6  
OtherOther87 19 10  (32)1 (1)84 15 Other140 (19)2  (6) (4)113 (18)
Total trading assets – debt and equity instrumentsTotal trading assets – debt and equity instruments3,281 (39)(c)217 (321)(141)348 (471)2,874 (42)(c)Total trading assets – debt and equity instruments3,139 (7)(c)525 (306)(66)222 (194)3,313 (18)(c)
Net derivative receivables:(b)
Net derivative receivables:(b)
Net derivative receivables:(b)
Interest rateInterest rate420 (574)60 (108)(38)848 (53)555 (552)Interest rate754 (1,043)60 (42)49 (914)14 (1,122)(960)
CreditCredit249 56 6 (1)41 2 (10)343 69 Credit452 228  (1)31 2 (23)689 240 
Foreign exchangeForeign exchange245 217 31 (43)43 (1)15 507 166 Foreign exchange545 (37)51 (67)(126)55 (32)389 (29)
EquityEquity(1,234)904 272 (424)385 (134)(95)(326)902 Equity(885)(148)295 (675)(726)349 (91)(1,881)9 
CommodityCommodity26 116 14 (51)29 4 61 199 141 Commodity(287)(50)35 (51)16 (12)(4)(353)(71)
Total net derivative receivablesTotal net derivative receivables(294)719 (c)383 (627)460 719 (82)1,278 726 (c)Total net derivative receivables579 (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 securitiesCorporate debt securities186 (6)     180 (6)Corporate debt securities250 17      267 17 
Total available-for-sale securitiesTotal available-for-sale securities186 (6)(d)     180 (6)(d)Total available-for-sale securities250 17 (d)     267 17 (d)
LoansLoans2,020 (53)(c)37 (85)(102)213 (456)1,574 (52)(c)Loans1,479 (3)(c)2,137 (7)(490)760 (68)3,808 (52)(c)
Mortgage servicing rightsMortgage servicing rights7,439 504 (e)510 (79)(234)  8,140 504 (e)Mortgage servicing rights7,755 275 (e)546 (92)(255)  8,229 275 (e)
Other assetsOther assets408 11 (c)2 (1)(44)  376 11 (c)Other assets406 16 (c)5 (2)(14)8 (2)417 16 (c)
Fair value measurements using significant unobservable inputsFair value measurements using significant unobservable inputs
Three months ended September 30, 2022
(in millions)
Fair value at
  July 1,
2022
Total realized/unrealized (gains)/lossesTransfers into
level 3
Transfers (out of) level 3Fair value at
September 30, 2022
Change in unrealized (gains)/losses related
to financial instruments held at September 30, 2022
PurchasesSalesIssuances
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)/lossesTransfers into
level 3
Transfers (out of) level 3Fair value at
June 30, 2023
Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2023
PurchasesSalesIssuances
Settlements(h)
Liabilities:(a)
Liabilities:(a)
Liabilities:(a)
DepositsDeposits$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 borrowingsShort-term borrowings2,101 (22)(c)(f)  863 (1,354) (4)1,584 (51)(c)(f)Short-term borrowings1,410 50 (c)(f)  1,191 (927)2 (22)1,704 29 (c)(f)
Trading liabilities – debt and equity instrumentsTrading liabilities – debt and equity instruments56 3 (c)(5)14   7 (4)71 7 (c)Trading liabilities – debt and equity instruments63 (1)(c) (2) (2)6 (1)63 (1)(c)
Accounts payable and other liabilitiesAccounts payable and other liabilities73 (4)(c)      69 (4)(c)Accounts payable and other liabilities56 5 (c)(2)3   8 (2)68 5 (c)
Long-term debtLong-term debt23,077 (1,037)(c)(f)  2,943 (2,404)297 (448)22,428 (1,075)(c)(f)Long-term debt25,227 325 (c)(f)  2,667 (2,550)113 (357)25,425 354 (c)(f)
102109


Fair value measurements using significant unobservable inputsFair 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 3Fair 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 3Fair 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 agreementsFederal funds sold and securities purchased under resale agreements$— $— $— $— $— $— $— $— $— Federal funds sold and securities purchased under resale agreements$— $— $— $— $— $$— $$— 
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 agenciesU.S. GSEs and government agencies329 (12)13 (6)(25)— — 299 (12)U.S. GSEs and government agencies286 (1)643 (118)(7)— — 803 (2)
Residential – nonagencyResidential – nonagency16 — — (1)— — 24 (1)Residential – nonagency10 — — (1)— — 14 — 
Commercial – nonagencyCommercial – nonagency10 — (13)14 — 19 Commercial – nonagency10 — — — — — — 10 — 
Total mortgage-backed securitiesTotal mortgage-backed securities355 (5)23 (6)(39)14 — 342 (7)Total mortgage-backed securities306 (1)648 (118)(8)— — 827 (2)
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities— — — (1)— — — Obligations of U.S. states and municipalities— — — — — — — 
Non-U.S. government debt securitiesNon-U.S. government debt securities183 (2)128 (98)— — (107)104 (1)Non-U.S. government debt securities133 (9)177 (86)— (16)205 (8)
Corporate debt securitiesCorporate debt securities487 (33)38 (115)(3)25 (29)370 (25)Corporate debt securities293 (16)272 (12)— 57 (20)574 (16)
LoansLoans795 — 219 (197)(130)409 (114)982 Loans1,049 (33)122 (164)(152)254 (178)898 (32)
Asset-backed securitiesAsset-backed securities35 (4)— — (7)28 — Asset-backed securities28 — (10)— — 20 — 
Total debt instrumentsTotal debt instruments1,863 (39)411 (420)(173)448 (257)1,833 (31)Total debt instruments1,816 (59)1,220 (390)(160)318 (214)2,531 (58)
Equity securitiesEquity securities690 (41)(44)— 62 (38)634 (34)Equity securities663 (99)98 (61)— 106 (46)661 (90)
Physical commoditiesPhysical commodities— — — — — — — 
OtherOther47 26 17 — (31)— (1)58 26 Other175 66 — (158)— (2)87 60 
Total trading assets – debt and equity instrumentsTotal trading assets – debt and equity instruments2,600 (54)(c)433 (464)(204)510 (296)2,525 (39)(c)Total trading assets – debt and equity instruments2,654 (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 rateInterest rate(22)618 21 (44)(683)

13 (16)(113)246 Interest rate367 160 99 (135)105 

44 (220)420 204 
CreditCredit(17)(9)(7)59 (4)(32)(6)(1)Credit44 264 (3)(65)249 255 
Foreign exchangeForeign exchange(583)28 (44)41 (5)(557)15 Foreign exchange76 193 15 (19)(38)24 (6)245 174 
EquityEquity(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 
CommodityCommodity(1,167)88 130 (88)156 (2)11 (872)178 Commodity(414)382 18 (69)112 (1)(2)26 423 
Total net derivative receivablesTotal 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 securitiesCorporate debt securities— — 95 — — — — 95 — Corporate debt securities205 (19)— — — — — 186 (19)
Total available-for-sale securitiesTotal available-for-sale securities— — 

95 — — — — 95 — 

Total available-for-sale securities205 (19)(d)— — — — — 186 (19)(d)
LoansLoans1,734 (13)(c)209 (1)(180)427 (105)2,071 (11)(c)Loans2,072 (82)(c)273 (95)(250)226 (124)2,020 (80)(c)
Mortgage servicing rightsMortgage servicing rights4,549 (11)(e)1,013 (201)— — 5,351 (11)(e)Mortgage servicing rights7,294 654 (e)341 (614)(236)— — 7,439 654 (e)
Other assetsOther assets518 (35)(c)— (165)— — 321 (34)(c)Other assets341 116 (c)(28)(20)— (6)408 116 (c)
Fair value measurements using significant unobservable inputsFair value measurements using significant unobservable inputs
Three months ended
September 30, 2021
(in millions)
Fair value at
July 1,
2021
Total realized/unrealized (gains)/lossesTransfers into
level 3
Transfers (out of) level 3Fair value at
September 30, 2021
Change in unrealized (gains)/losses related
to financial instruments held at September 30, 2021
PurchasesSalesIssuances
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)/lossesTransfers into
level 3
Transfers (out of) level 3Fair value at
June 30, 2022
Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2022
PurchasesSalesIssuances
Settlements(h)
Liabilities:(a)
Liabilities:(a)
Liabilities:(a)
DepositsDeposits$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 borrowingsShort-term borrowings3,075 (699)(c)(f)— — 1,166 (1,121)— (10)2,411 (124)(c)(f)Short-term borrowings2,146 14 (c)(f)— — 963 (1,036)14 — 2,101 93 (c)(f)
Trading liabilities – debt and equity instrumentsTrading liabilities – debt and equity instruments36 (2)(c)(8)— — (1)30 (c)Trading liabilities – debt and equity instruments41 (c)(20)— — 30 — 56 (c)
Accounts payable and other liabilitiesAccounts payable and other liabilities51 — 

— — — — — — 51 (c)Accounts payable and other liabilities108 (2)(c)(28)— — — (6)73 (2)(c)
Long-term debtLong-term debt23,527 (216)(c)(f)— — 2,950 (2,512)

11 (246)23,514 

(242)(c)(f)Long-term debt24,394 (2,640)(c)(f)— — 3,470 (2,045)

179 (281)23,077 

(2,613)(c)(f)


103110


Fair value measurements using significant unobservable inputsFair 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 3Fair 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 3Fair 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 agreementsFederal funds sold and securities purchased under resale agreements$— $— $$— $(1)$$— $$— 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 agenciesU.S. GSEs and government agencies265 31 670 (125)(60)— (5)776 29 U.S. GSEs and government agencies759 131 (113)(64)— (14)706 
Residential – nonagencyResidential – nonagency28 — (5)(12)— (8)(1)Residential – nonagency— (6)(2)— 
Commercial – nonagencyCommercial – nonagency10 (1)— (1)— — 11 (1)Commercial – nonagency— — — (1)(8)(1)
Total mortgage-backed securitiesTotal mortgage-backed securities303 30 676 (131)(72)(13)796 27 Total mortgage-backed securities771 14 131 (119)(67)(22)717 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities— (1)— — — Obligations of U.S. states and municipalities— — (1)— — — — 
Non-U.S. government debt securitiesNon-U.S. government debt securities81 (53)426 (288)(4)51 (47)166 (50)Non-U.S. government debt securities155 40 100 (96)— — — 199 43 
Corporate debt securitiesCorporate debt securities332 (33)378 (146)(65)164 (282)348 (27)Corporate debt securities463 24 110 (60)(2)30 (43)522 18 
LoansLoans708 (52)522 (406)(202)777 (482)865 (25)Loans759 682 (127)(113)125 (223)1,105 
Asset-backed securitiesAsset-backed securities26 17 (23)— (4)26 Asset-backed securities23 — (3)(1)(15)14 (1)
Total debt instrumentsTotal debt instruments1,457 (102)2,019 (995)(343)1,000 (828)2,208 (72)Total debt instruments2,178 80 1,028 (406)(183)169 (303)2,563 63 
Equity securitiesEquity securities662 (955)337 (361)(2)977 (78)580 (407)Equity securities665 (47)108 (107)— 140 (128)631 (27)
Physical CommoditiesPhysical Commodities— (1)— — — — (1)Physical Commodities— — (2)— — — 
OtherOther160 86 36 — (195)(4)84 58 Other64 (40)96 — (4)(4)113 (19)
Total trading assets – debt and equity instrumentsTotal trading assets – debt and equity instruments2,279 (972)(c)2,395 (1,356)(540)1,978 (910)2,874 (422)(c)Total trading assets – debt and equity instruments2,909 (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 rateInterest rate(16)(181)285 (337)218 

865 (279)555 25 Interest rate701 (697)95 (92)27 

(1,079)(77)(1,122)(582)
CreditCredit74 387 14 (8)(120)— (4)343 367 Credit13 474 (4)202 26 (25)689 497 
Foreign exchangeForeign exchange(419)755 178 (86)75 17 (13)507 716 Foreign exchange489 52 79 (108)(201)119 (41)389 29 
EquityEquity(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 
CommodityCommodity(907)920 82 (257)297 61 199 878 Commodity(146)(42)39 (118)(111)(11)36 (353)(206)
Total net derivative receivablesTotal net derivative receivables(4,894)5,353 (c)1,491 (2,137)

1,158 

193 114 

1,278 5,092 (c)Total net derivative receivables673 (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 securitiesCorporate debt securities161 17 — — — — 180 Corporate debt securities239 28 — — — — — 267 28 
Total available-for-sale securitiesTotal available-for-sale securities161 (d)17 — — — — 180 (d)Total available-for-sale securities239 28 (d)— — — — — 267 28 (d)
LoansLoans1,933 (37)(c)431 (185)(633)829 (764)1,574 79 (c)Loans1,418 23 (c)2,285 (73)(585)917 (177)3,808 24 (c)
Mortgage servicing rightsMortgage servicing rights5,494 2,117 (e)1,981 (750)(702)— — 8,140 2,117 (e)Mortgage servicing rights7,973 264 (e)577 (90)(495)— — 8,229 264 (e)
Other assetsOther assets306 136 (c)48 (29)(81)(6)376 131 (c)Other assets405 21 (c)17 (2)(30)(2)417 21 (c)
Fair value measurements using significant unobservable inputsFair value measurements using significant unobservable inputs
Nine months ended September 30, 2022
(in millions)
Fair value at
Jan 1,
2022
Total realized/unrealized (gains)/lossesTransfers into
level 3
Transfers (out of) level 3Fair value at
September 30, 2022
Change in unrealized (gains)/losses related
to financial instruments held at September 30, 2022
PurchasesSalesIssuances
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)/lossesTransfers into
level 3
Transfers (out of) level 3Fair value at
June 30, 2023
Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2023
PurchasesSalesIssuances
Settlements(h)
Liabilities:(a)
Liabilities:(a)
Liabilities:(a)
DepositsDeposits$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 borrowingsShort-term borrowings2,481 (409)(c)(f)— — 3,249 (3,737)15 (15)1,584 17 (c)(f)Short-term borrowings1,401 140 (c)(f)— — 2,242 (2,059)(22)1,704 34 (c)(f)
Trading liabilities – debt and equity instrumentsTrading liabilities – debt and equity instruments30 (13)(c)(39)48 — — 51 (6)71 14 (c)Trading liabilities – debt and equity instruments84 (13)(c)(27)— (2)18 (3)63 — 
Accounts payable and other liabilitiesAccounts payable and other liabilities69 (10)(c)(28)43 — — (6)69 (9)(c)Accounts payable and other liabilities53 (c)(2)— — (2)68 (c)
Long-term debtLong-term debt24,374 (5,345)(c)(f)— — 10,463 (6,925)

739 (878)22,428 

(5,097)(c)(f)Long-term debt24,092 1,681 (c)(f)— — 5,400 (5,525)

204 (427)25,425 

1,674 (c)(f)


104111


Fair value measurements using significant unobservable inputsFair 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 3Fair 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 3Fair 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 agreementsFederal funds sold and securities purchased under resale agreements$— $— $— $— $— $— $— $— $— Federal funds sold and securities purchased under resale agreements$— $— $— $— $— $$— $$— 
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 agenciesU.S. GSEs and government agencies449 (22)20 (62)(86)(1)299 (25)U.S. GSEs and government agencies265 26 665 (125)(28)— — 803 24 
Residential – nonagencyResidential – nonagency28 24 (24)(4)— (1)24 (2)Residential – nonagency28 — — (12)— (7)14 (1)
Commercial – nonagencyCommercial – nonagency12 (1)(16)14 — 19 Commercial – nonagency10 — — — — — — 10 — 
Total mortgage-backed securitiesTotal mortgage-backed securities480 (14)56 (87)(106)15 (2)342 (21)Total mortgage-backed securities303 26 670 (125)(40)— (7)827 23 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities— — — (1)— — — Obligations of U.S. states and municipalities— — — — — — — 
Non-U.S. government debt securitiesNon-U.S. government debt securities182 (10)330 (284)(7)— (107)104 (2)Non-U.S. government debt securities81 (42)405 (266)— 43 (16)205 (106)
Corporate debt securitiesCorporate debt securities507 (18)357 (415)(3)138 (196)370 (3)Corporate debt securities332 (35)333 (71)(37)98 (46)574 (44)
LoansLoans893 785 (434)(256)584 (596)982 — Loans708 (37)419 (262)(159)525 (296)898 (13)
Asset-backed securitiesAsset-backed securities28 41 (43)(1)(7)28 — Asset-backed securities26 — (10)— (3)20 — 
Total debt instrumentsTotal debt instruments2,098 (28)1,569 (1,263)(374)739 (908)1,833 (26)Total debt instruments1,457 (88)1,829 (734)(236)671 (368)2,531 (140)
Equity securitiesEquity securities476 (38)258 (114)— 140 (88)634 (92)Equity securities662 (912)321 (301)— 959 (68)661 (474)
Physical CommoditiesPhysical Commodities— — — — — — — 
OtherOther49 74 118 — (86)(100)58 37 Other160 67 26 — (163)— (3)87 70 
Total trading assets – debt and equity instrumentsTotal trading assets – debt and equity instruments2,623 (c)1,945 (1,377)(460)882 (1,096)2,525 (81)(c)Total trading assets – debt and equity instruments2,279 (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 rateInterest rate258 1,587 92 (146)(1,874)

68 (98)(113)212 Interest rate(16)393 225 (229)256 

17 (226)420 428 
CreditCredit(224)140 (11)103 (13)(7)(6)143 Credit74 331 (7)(161)(2)249 330 
Foreign exchangeForeign exchange(434)(196)67 (98)140 (42)(557)(44)Foreign exchange(419)538 147 (43)32 18 (28)245 486 
EquityEquity(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 
CommodityCommodity(731)(505)140 (382)600 (3)(872)(223)Commodity(907)804 68 (206)268 (1)— 26 469 
Total net derivative receivablesTotal 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 securitiesCorporate debt securities— — 95 — — — — 95 — Corporate debt securities161 17 — — — — 186 
Total available-for-sale securitiesTotal available-for-sale securities— — 

95 — — — — 95 — 

Total available-for-sale securities161 (d)17 — — — — 186 (d)
LoansLoans2,305 (79)(c)516 (326)(699)1,027 (673)2,071 (92)(c)Loans1,933 16 (c)394 (100)(531)616 (308)2,020 (24)(c)
Mortgage servicing rightsMortgage servicing rights3,276 258 (e)2,410 (23)(570)— — 5,351 258 (e)Mortgage servicing rights5,494 1,613 (e)1,471 (671)(468)— — 7,439 1,613 (e)
Other assetsOther assets538 (c)10 (18)(217)— (1)321 22 (c)Other assets306 125 (c)46 (28)(37)(6)408 119 (c)
Fair value measurements using significant unobservable inputsFair value measurements using significant unobservable inputs
Nine months ended September 30, 2021
(in millions)
Fair value at
Jan 1,
2021
Total realized/unrealized (gains)/lossesTransfers into
level 3
Transfers (out of) level 3Fair value at
September 30, 2021
Change in unrealized (gains)/losses related
to financial instruments held at September 30, 2021
PurchasesSalesIssuances
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)/lossesTransfers into
level 3
Transfers (out of) level 3Fair value at
June 30, 2022
Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2022
PurchasesSalesIssuances
Settlements(h)
Liabilities:(a)
Liabilities:(a)
Liabilities:(a)
DepositsDeposits$2,913 $(67)(c)(f)$— $— $252 $(360)$$(363)$2,377 $(60)(c)(f)Deposits$2,317 $(302)(c)(f)$— $— $246 $(69)$— $(160)$2,032 $(298)(c)(f)
Short-term borrowingsShort-term borrowings2,420 (1,095)(c)(f)— — 5,479 (4,333)(69)2,411 (117)(c)(f)Short-term borrowings2,481 (387)(c)(f)— — 2,386 (2,383)15 (11)2,101 (c)(f)
Trading liabilities – debt and equity instrumentsTrading liabilities – debt and equity instruments51 (6)(c)(100)36 — — 62 (13)30 (2)(c)Trading liabilities – debt and equity instruments30 (16)(c)(34)34 — — 44 (2)56 15 (c)
Accounts payable and other liabilitiesAccounts payable and other liabilities68 (10)(c)— — — — (8)51 (9)(c)Accounts payable and other liabilities69 (6)(c)(28)43 — — (6)73 (6)(c)
Long-term debtLong-term debt23,397 190 (c)(f)— — 9,884 (9,250)

29 (736)23,514 

48 (c)(f)Long-term debt24,374 (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 SeptemberJune 30, 20222023 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 Septemberboth June 30, 20222023 and December 31, 2021,2022, respectively.
105112


(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 realizedRealized and unrealized gains/(losses) recorded in income on level 3 AFS securities were not material both for the three and ninesix months ended SeptemberJune 30, 20222023 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 ninesix months ended SeptemberJune 30, 20222023 and 2021.2022. Unrealized (gains)/losses are reported in OCI, and were $(256)$23 million and $318$(344) million for the three months ended SeptemberJune 30, 20222023 and 2021,2022, respectively and $(829)$(277) million and $300$(574) million for the ninesix months ended SeptemberJune 30, 20222023 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 108115 for further information on changes impacting items measured at fair value on a nonrecurring basis.
Three and ninesix months ended SeptemberJune 30, 20222023
Level 3 assets were $24.3$26.8 billion at SeptemberJune 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 SeptemberJune 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, 20222023 was predominantly driven by:
$3.82.3 billion increaseand $2.4 billion, respectively, in gross derivative receivablesnon-trading loans primarily due to gains and purchases partially offset by settlements.
$2.6$1.9 billion increaseof 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 SeptemberJune 30, 2022,2023, significant transfers from level 2 into level 3 included the following:
$1.11.2 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 SeptemberJune 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:
$524930 million of gross equityinterest rate derivative receivables as a result of an increase in observability and a decrease in the significance of unobservable inputs.
For the ninesix months ended SeptemberJune 30, 2022, significant transfers from level 2 into level 3 included the following:
$2.01.6 billion of total debt and equity instruments, predominantlylargely 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.
$1.51.3 billion and $639 million of gross interest rateequity 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 ninesix months ended SeptemberJune 30, 2022, significant transfers from level 3 into level 2 included the following:
$1.0 billion and $758965 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 billion920 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 101-106108-113 for further information on these instruments.
Three months ended SeptemberJune 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
$1.13.4 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.
$1.22.8 billion of net gains on liabilities, predominantly driven by gains in long-term debt due to market movements.
ThreeSix months ended SeptemberJune 30, 20212023
$1.3 billion139 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 receivableslosses 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.
NineSix months ended SeptemberJune 30, 2022
$6.65.5 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.
$6.25.0 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.
$988 million of net gains on liabilities, driven by gains in short-term borrowings due to market movements.
Refer to Note 1415 for information on MSRs.
Credit and funding adjustments — derivatives
The following table provides the impact of credit and funding adjustments on principal transactions revenue in the respective periods, excluding the effect of any associated hedging activities. The FVA presented below includes the impact of the Firm’s own credit quality on the inception value of liabilities as well as the impact of changes in the Firm’s own credit quality over time.
Three months ended September 30,Nine months ended September 30,Three months ended June 30,Six months ended June 30,
(in millions)(in millions)2022202120222021(in millions)2023202220232022
Credit and funding adjustments:Credit and funding adjustments:Credit and funding adjustments:
Derivatives CVADerivatives CVA$(6)$60 $(171)$343 Derivatives CVA$66 $147 $121 $(165)
Derivatives FVADerivatives FVA5 38 (46)99 Derivatives FVA63 55 (51)
Refer to Note 2 of JPMorgan Chase’s 20212022 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.

107114


Assets and liabilities measured at fair value on a nonrecurring basis
The following tables present the assets and liabilities held as of SeptemberJune 30, 20222023 and 20212022, for which nonrecurring fair value adjustments were recorded during the ninesix months ended SeptemberJune 30, 20222023 and 20212022, by major product category and fair value hierarchy.
Fair value hierarchyTotal fair valueFair value hierarchyTotal fair value
September 30, 2022 (in millions)Level 1Level 2Level 3
June 30, 2023 (in millions)June 30, 2023 (in millions)Level 1Level 2Level 3Total fair value
LoansLoans$ $1,142 

$927 (b)$2,069 Loans$ $803 

$840 (b)
Other assets(a)
Other assets(a)
 37 1,119 1,156 
Other assets(a)
 7 286 293 
Total assets measured at fair value on a nonrecurring basisTotal assets measured at fair value on a nonrecurring basis$ $1,179 $2,046 $3,225 Total assets measured at fair value on a nonrecurring basis$ $810 $1,126 $1,936 
Accounts payable and other liabilitiesAccounts payable and other liabilities  112  112 Accounts payable and other liabilities     
Total liabilities measured at fair value on a nonrecurring basisTotal liabilities measured at fair value on a nonrecurring basis$ $ $112 $112 Total liabilities measured at fair value on a nonrecurring basis$ $ $ $ 
Fair value hierarchyTotal fair valueFair value hierarchyTotal fair value
September 30, 2021 (in millions)Level 1Level 2Level 3
June 30, 2022 (in millions)June 30, 2022 (in millions)Level 1Level 2Level 3Total fair value
LoansLoans$— $1,175 

$314 $1,489 Loans$— $1,516 

$665 
Other assetsOther assets— 1,202 

1,209 Other assets— 22 1,083 

1,105 
Total assets measured at fair value on a nonrecurring basisTotal 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 liabilitiesAccounts payable and other liabilities— — 

Accounts payable and other liabilities— — 293 

293 
Total liabilities measured at fair value on a nonrecurring basisTotal liabilities measured at fair value on a nonrecurring basis$— $— $$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 SeptemberJune 30, 2022, $1.0 billion2023, $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 SeptemberJune 30, 2022, $652023, $23 million related to residential real estate loans carried at the net realizable value of the underlying collateral (e.g., collateral-dependent loans). These amounts are classified as level 3 as they are valued using information from broker’s price opinions, appraisals and automated valuation models and discounted based upon the Firm’s experience with actual liquidation values. These discounts ranged from 9%3% to 56% with a weighted average of 23%25%.
Nonrecurring fair value changes
The following table presents the total change in value of assets and liabilities for which fair value adjustments have been recognized for the three and ninesix months ended SeptemberJune 30, 20222023 and 20212022, related to assets and liabilities held at those dates.
Three months ended September 30,Nine months ended September 30,
(in millions)2022202120222021
Loans$(28) $(10)

$(77)

$(40)
Other assets(a)
(76) 84 

(122)177 
Accounts payable and other liabilities52  — 

(108)
Total nonrecurring fair value gains/(losses)$(52)$74 $(307)$143 


Three months ended June 30,Six months ended June 30,
(in millions)2023202220232022
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 SeptemberJune 30, 20222023 and 2021,2022, respectively, and $(105)$(93) million and $197$(29) million for the ninesix months ended SeptemberJune 30, 20222023 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.

108115


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 SeptemberJune 30, 20222023 and 20212022, 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)2022202120222021As of or for the period ended, (in millions)2023202220232022
Other assetsOther assetsOther 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, 20212022 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 SeptemberJune 30, 20222023 were $1.5 billion.
(c)The cumulative downward carrying value changes/impairment between January 1, 2018 and SeptemberJune 30, 20222023 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 beare convertible into Visa Class A common shares (“Visa A shares”) at a specified conversion rate upon final resolution of certain litigation matters involving Visa. TheOn 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 intoto Visa Class A common shares is 1.6059 at September 30, 2022, anddecreased 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.
109116


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 SeptemberJune 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, 2022December 31, 2021June 30, 2023December 31, 2022
Estimated fair value hierarchyEstimated fair value hierarchyEstimated fair value hierarchyEstimated fair value hierarchy
(in billions)(in billions)Carrying
value
Level 1Level 2Level 3Total estimated
fair value
Carrying
value
Level 1Level 2Level 3Total estimated
fair value
(in billions)Carrying
value
Level 1Level 2Level 3Total estimated
fair value
Carrying
value
Level 1Level 2Level 3Total estimated
fair value
Financial assetsFinancial assetsFinancial assets
Cash and due from banksCash 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 banksDeposits with banks619.5 619.1 0.4  619.5 714.4 714.4 — — 714.4 Deposits with banks469.1 469.0 0.1  469.1 539.5 539.3 0.2 — 539.5 
Accrued interest and accounts receivableAccrued interest and accounts receivable143.5  143.3 0.2 143.5 102.1 — 102.0 0.1 102.1 Accrued interest and accounts receivable111.1  111.1 0.1 111.2 124.7 — 124.6 0.1 124.7 
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements2.6  2.6  2.6 9.0 — 9.0 — 9.0 Federal funds sold and securities purchased under resale agreements3.0  3.0  3.0 3.7 — 3.7 — 3.7 
Securities borrowedSecurities borrowed125.9  125.9  125.9 124.6 — 124.6 — 124.6 Securities borrowed107.7  107.7  107.7 115.3 — 115.3 — 115.3 
Investment securities, held-to-maturityInvestment securities, held-to-maturity430.1 199.1 190.7  389.8 363.7 183.3 179.3 — 362.6 Investment securities, held-to-maturity408.9 185.8 189.5  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 
OtherOther106.4  104.7 1.8 106.5 98.7 — 97.4 1.4 98.8 Other69.2  66.9 2.4 69.3 101.2 — 99.6 1.7 101.3 
Financial liabilitiesFinancial liabilitiesFinancial liabilities
DepositsDeposits$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 agreementsFederal funds purchased and securities loaned or sold under repurchase agreements59.4  59.4  59.4 67.9 — 67.9 — 67.9 Federal funds purchased and securities loaned or sold under repurchase agreements49.7  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 liabilitiesAccounts payable and other liabilities260.3  254.4 5.4 259.8 217.6 — 212.1 4.9 217.0 Accounts payable and other liabilities248.1  238.8 8.8 247.6 257.5 — 251.2 5.6 256.8 
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs12.1  12.0  12.0 10.7 — 10.8 — 10.8 Beneficial interests issued by consolidated VIEs19.6  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, 2022December 31, 2021June 30, 2023December 31, 2022
Estimated fair value hierarchyEstimated fair value hierarchyEstimated fair value hierarchyEstimated fair value hierarchy
(in billions)(in billions)
Carrying value(a) (b)
Level 1Level 2Level 3Total estimated fair value
Carrying value(a) (b)
Level 1Level 2Level 3Total estimated fair value(in billions)
Carrying value(a) (b)(c)
Level 1Level 2Level 3Total estimated fair value
Carrying value(a) (b)
Level 1Level 2Level 3Total estimated fair value
Wholesale lending-related commitmentsWholesale 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 171169 of JPMorgan Chase’s 20212022 Form 10-K for a further discussion of the valuation of lending-related commitments.
110117


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 ninesix months ended SeptemberJune 30, 20222023 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,
2022202120232022
(in millions)(in millions)Principal transactionsAll other income
Total changes in fair value recorded (e)
Principal transactionsAll other income
Total changes in fair value recorded (e)
(in millions)Principal transactionsAll other income
Total changes in fair value recorded (e)
Principal transactionsAll other income
Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreementsFederal 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 borrowedSecurities borrowed(209) (209)(22) (22)Securities borrowed(60) (60)(101)— (101)
Trading assets:Trading assets:Trading assets:
Debt and equity instruments, excluding loansDebt and equity instruments, excluding loans(1,782) (1,782)(2,255)— (2,255)Debt and equity instruments, excluding loans1,160  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 riskChanges in instrument-specific credit risk34   34 66 —  66 Changes in instrument-specific credit risk100   100 (136)(f)—  (136)
Other changes in fair valueOther changes in fair value(36)  (36)—  Other changes in fair value2 2 (c)4 (11)—  (11)
Loans:Loans:Loans:
Changes in instrument-specific credit riskChanges in instrument-specific credit risk(133)3 (c)(130)119 (7)(c)112 Changes in instrument-specific credit risk6 (5)(c)1 (83)11 (c)(72)
Other changes in fair valueOther 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 assetsOther assets12 (7)(d)5 (22)— (22)Other assets(16)(1)(d)(17)(2)(d)
Deposits(a)
Deposits(a)
364  364 38 — 38 
Deposits(a)
(395) (395)382 — 382 
Federal funds purchased and securities loaned or sold under repurchase agreementsFederal funds purchased and securities loaned or sold under repurchase agreements104  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 liabilitiesTrading liabilities9  9 (1) (1)Trading liabilities(15) (15)54 — 54 
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs   —  — Beneficial interests issued by consolidated VIEs   — — — 
Other liabilitiesOther 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 






111118


Nine months ended September 30,Six months ended June 30,
2022202120232022
(in millions)(in millions)Principal transactionsAll other income
Total changes in fair value recorded (e)
Principal transactionsAll other income
Total changes in fair value recorded (e)
(in millions)Principal transactionsAll other income
Total changes in fair value recorded (e)
Principal transactionsAll other income
Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreementsFederal 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 borrowedSecurities borrowed(508) (508)(119)— (119)Securities borrowed28  28 (299)— (299)
Trading assets:Trading assets:Trading assets:
Debt and equity instruments, excluding loansDebt and equity instruments, excluding loans(2,693) (2,693)(1,188)(1)(c)(1,189)Debt and equity instruments, excluding loans2,755  2,755 (911)— (911)
Loans reported as trading assets:Loans reported as trading assets: — Loans reported as trading assets:
Changes in instrument-specific credit riskChanges in instrument-specific credit risk(109) (109)342 — 342 Changes in instrument-specific credit risk231  231 (142)(f)— (142)
Other changes in fair valueOther changes in fair value(58) (58)(7)— (7)Other changes in fair value5 2 (c)7 (22)— (22)
Loans:Loans:Loans:
Changes in instrument-specific credit riskChanges in instrument-specific credit risk(210)26 (c)(184)540 (9)(c)531 Changes in instrument-specific credit risk71 (4)(c)67 (77)23 (c)(54)
Other changes in fair valueOther changes in fair value(1,560)(881)(c)(2,441)(82)1,733 (c)1,651 Other changes in fair value119 104 (c)223 (1,220)(774)(c)(1,994)
Other assetsOther assets21 (6)(d)15 (23)(d)(17)Other assets14 (1)(d)13 (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 agreementsFederal funds purchased and securities loaned or sold under repurchase agreements310  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 liabilitiesTrading liabilities(3) (3)(2)— (2)Trading liabilities(30) (30)(12)— (12)
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs(1) (1)— — — Beneficial interests issued by consolidated VIEs   (1)— (1)
Other liabilitiesOther liabilities(6) (6)— Other liabilities(1) (1)(4)— (4)
Long-term debt(a)(b)
Long-term debt(a)(b)
11,193 158 (c)(d)11,351 (262)(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) millionnot material both for the three and six months ended SeptemberJune 30, 20222023 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.

112119


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 SeptemberJune 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, 2022December 31, 2021June 30, 2023December 31, 2022
(in millions)(in millions)Contractual principal outstandingFair valueFair value over/(under) contractual principal outstandingContractual principal outstandingFair valueFair value over/(under) contractual principal outstanding(in millions)Contractual principal outstandingFair valueFair value over/(under) contractual principal outstandingContractual principal outstandingFair valueFair value over/(under) contractual principal outstanding
LoansLoansLoans
Nonaccrual loansNonaccrual loansNonaccrual loans
Loans reported as trading assetsLoans 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)
LoansLoans962 814 (148)918 797 (121)Loans911 760 (151)967 829 (138)
SubtotalSubtotal3,666 1,171 (2,495)4,181 1,343 (2,838)Subtotal3,648 1,289 (2,359)3,484 1,197 (2,287)
90 or more days past due and government guaranteed90 or more days past due and government guaranteed90 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 assetsLoans reported as trading assets7,093 5,718 (1,375)8,594 7,528 (1,066)Loans reported as trading assets9,217 7,560 (1,657)7,823 6,135 (1,688)
LoansLoans42,236 40,529 (1,707)57,695 57,742 47 Loans39,995 37,953 (2,042)42,588 41,135 (1,453)
SubtotalSubtotal49,329 46,247 (3,082)66,289 65,270 (1,019)Subtotal49,212 45,513 (3,699)50,411 47,270 (3,141)
Total loansTotal 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 debtLong-term debtLong-term debt
Principal-protected debtPrincipal-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)
NA38,523 NANA41,135 NA
Nonprincipal-protected debt(c)
NA44,085 NANA41,176 NA
Total long-term debtTotal long-term debtNA$65,945 NANA$74,934 NATotal long-term debtNA$78,609 NANA$72,281 NA
Long-term beneficial interestsLong-term beneficial interestsLong-term beneficial interests
Nonprincipal-protected debt(c)
Nonprincipal-protected debt(c)
NA$5 NANA$12 NA
Nonprincipal-protected debt(c)
NA$1 NANA$NA
Total long-term beneficial interestsTotal long-term beneficial interestsNA$5 NANA$12 NATotal long-term beneficial interestsNA$1 NANA$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 SeptemberJune 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 SeptemberJune 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 20212022 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, 2022December 31, 2021June 30, 2023December 31, 2022
(in millions)(in millions)Long-term debtShort-term borrowingsDepositsTotalLong-term debtShort-term borrowingsDepositsTotal(in millions)Long-term debtShort-term borrowingsDepositsTotalLong-term debtShort-term borrowingsDepositsTotal
Risk exposureRisk exposureRisk exposure
Interest rateInterest rate$29,043 $295 $16,563 $45,901 $34,127 $$4,860 $38,988 Interest rate$34,860 $225 $46,527 $81,612 $31,973 $260 $24,655 $56,888 
CreditCredit3,909 246  4,155 6,352 858 — 7,210 Credit4,618 247  4,865 4,105 170 — 4,275 
Foreign exchangeForeign exchange2,616 838 42 3,496 3,386 315 1,066 4,767 Foreign exchange2,675 997 3 3,675 2,674 788 50 3,512 
EquityEquity27,941 5,711 3,616 37,268 29,317 6,827 5,125 41,269 Equity33,590 4,830 3,202 41,622 30,864 4,272 3,545 38,681 
CommodityCommodity1,257 12 2 (a)1,271 405 — (a)408 Commodity2,017  1 (a)2,018 1,655 16 (a)1,673 
Total structured notesTotal 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 SeptemberJune 30, 20222023 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, 2023December 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)LoansDerivativesLoansDerivatives
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 Estate206,912 165,069 331 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 Managers138,143 52,730 14,751 70,662 95,656 40,511 16,397 38,748 
Consumer & Retail125,935 47,410 2,278 76,247 120,555 45,867 1,650 73,038 
Industrials77,206 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 
Healthcare65,547 22,727 1,720 41,100 62,613 22,970 1,683 37,960 
Banks & Finance Cos61,659 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 
Utilities35,757 7,162 3,089 25,506 36,218 9,107 3,269 23,842 
Oil & Gas33,233 9,607 1,352 22,274 38,668 9,632 5,121 23,915 
Automotive32,947 15,169 602 17,176 33,287 14,735 529 18,023 
Chemicals & Plastics22,195 6,343 510 15,342 20,030 5,771 407 13,852 
Insurance21,874 2,772 8,175 10,927 21,045 2,387 8,081 10,577 
Central Govt16,845 3,670 10,827 2,348 19,095 3,167 12,955 2,973 
Metals & Mining15,631 4,786 311 10,534 15,915 5,398 475 10,042 
Transportation15,447 5,779 606 9,062 15,009 5,005 567 9,437 
Securities Firms9,077 957 3,392 4,728 8,066 556 3,387 4,123 
Financial Markets Infrastructure4,993 184 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 
Subtotal1,273,451 668,145 64,217 541,089 1,146,530 603,670 70,880 471,980 
Loans held-for-sale and loans at fair value32,372 32,372   35,427 35,427 — — 
Receivables from customers(f)
42,741    49,257 — — — 
Total wholesale1,348,564 700,517 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 20212022 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 DerivativeUse of DerivativeDesignation and disclosureAffected
segment or unit
10-Q page reference
Manage specifically identified risk exposures in qualifying hedge accounting relationships:
Interest rate
Hedge fixed rate assets and liabilitiesFair value hedgeCorporate121-122130-131
Interest rate
Hedge floating-rate assets and liabilitiesCash flow hedgeCorporate123132
Foreign exchange
Hedge foreign currency-denominated assets and liabilitiesFair value hedgeCorporate121-122130-131
Foreign exchange
Hedge foreign currency-denominated forecasted revenue and expenseCash flow hedgeCorporate123132
Foreign exchange
Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entitiesNet investment hedgeCorporate124133
Commodity
Hedge commodity inventoryFair value hedgeCIB, AWM121-122130-131
Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships:
Interest rate
Manage the risk associated with mortgage commitments, warehouse loans and MSRsSpecified risk managementCCB125134
Credit
Manage the credit risk associated with wholesale lending exposuresSpecified risk managementCIB125134
Interest rate and foreign exchange
Manage the risk associated with certain other specified assets and liabilitiesSpecified risk managementCorporate125134
Market-making derivatives and other activities:
Various
Market-making and related risk managementMarket-making and otherCIB125134
Various
Other derivativesMarket-making and otherCIB, AWM, Corporate125134
115124


Notional amount of derivative contracts
The following table summarizes the notional amount of free-standing derivative contracts outstanding as of SeptemberJune 30, 2022,2023, and December 31, 2021.2022.
Notional amounts(b)
Notional amounts(b)
(in billions)(in billions)September 30, 2022December 31, 2021(in billions)June 30, 2023December 31, 2022
Interest rate contractsInterest rate contractsInterest rate contracts
SwapsSwaps$26,999 $24,075 Swaps$29,292 $24,491 
Futures and forwardsFutures and forwards3,692 2,520 Futures and forwards3,341 2,636 
Written optionsWritten options2,905 3,018 Written options3,329 3,047 
Purchased optionsPurchased options2,879 3,188 Purchased options3,390 2,992 
Total interest rate contractsTotal interest rate contracts36,475 32,801 Total interest rate contracts39,352 33,166 
Credit derivatives(a)
Credit derivatives(a)
1,307 1,053 
Credit derivatives(a)
1,477 1,132 
Foreign exchange contractsForeign exchange contractsForeign exchange contracts
Cross-currency swapsCross-currency swaps3,843 4,112 Cross-currency swaps4,436 4,196 
Spot, futures and forwardsSpot, futures and forwards8,829 7,679 Spot, futures and forwards8,681 7,017 
Written optionsWritten options873 741 Written options867 775 
Purchased optionsPurchased options856 727 Purchased options826 759 
Total foreign exchange contractsTotal foreign exchange contracts14,401 13,259 Total foreign exchange contracts14,810 12,747 
Equity contractsEquity contractsEquity contracts
SwapsSwaps608 612 Swaps598 618 
Futures and forwardsFutures and forwards110 139 Futures and forwards110 110 
Written optionsWritten options713 654 Written options755 636 
Purchased optionsPurchased options660 598 Purchased options707 580 
Total equity contractsTotal equity contracts2,091 2,003 Total equity contracts2,170 1,944 
Commodity contractsCommodity contractsCommodity contracts
SwapsSwaps148 185 Swaps137 136 
Spot, futures and forwardsSpot, futures and forwards149 188 Spot, futures and forwards142 136 
Written optionsWritten options133 135 Written options133 117 
Purchased optionsPurchased options100 111 Purchased options110 98 
Total commodity contractsTotal commodity contracts530 619 Total commodity contracts522 487 
Total derivative notional amountsTotal derivative notional amounts$54,804 $49,735 Total derivative notional amounts$58,331 $49,476 
(a)Refer to the Credit derivatives discussion on page 126135 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.
116125


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 SeptemberJune 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 receivablesGross derivative payablesGross derivative receivablesGross derivative payables
September 30, 2022
(in millions)
Not designated as hedgesDesignated as hedgesTotal derivative receivables
Net derivative receivables(b)
Not designated as hedgesDesignated
as hedges
Total derivative payables
Net derivative payables(b)
June 30, 2023
(in millions)
June 30, 2023
(in millions)
Not designated as hedgesDesignated as hedgesTotal derivative receivables
Net derivative receivables(b)
Not designated as hedgesDesignated
as hedges
Total derivative payables
Net derivative payables(b)
Trading assets and liabilitiesTrading assets and liabilitiesTrading assets and liabilities
Interest rateInterest 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 
CreditCredit13,934  13,934 1,871 11,190  11,190 734 Credit13,685  13,685 1,245 13,767  13,767 566 
Foreign exchangeForeign exchange353,791 2,042 355,833 36,867 351,385 1,747 353,132 22,830 Foreign exchange226,793 886 227,679 22,194 222,739 846 223,585 14,177 
EquityEquity85,801  85,801 11,626 79,914  79,914 8,139 Equity61,392  61,392 7,324 67,670  67,670 9,805 
CommodityCommodity34,532 4,422 38,954 16,338 27,238 4,584 31,822 7,601 Commodity16,872 768 17,640 5,745 18,465 820 19,285 6,840 
Total fair value of trading assets and liabilitiesTotal 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 receivablesGross derivative payablesGross derivative receivablesGross derivative payables
December 31, 2021
(in millions)
Not designated as hedgesDesignated as hedgesTotal derivative receivables
Net derivative receivables(b)
Not designated as hedgesDesignated
as hedges
Total derivative payables
Net derivative payables(b)
December 31, 2022
(in millions)
December 31, 2022
(in millions)
Not designated as hedgesDesignated as hedgesTotal derivative receivables
Net derivative receivables(b)
Not designated as hedgesDesignated
as hedges
Total derivative payables
Net derivative payables(b)
Trading assets and liabilitiesTrading assets and liabilitiesTrading assets and liabilities
Interest rateInterest rate$270,562 

$23 $270,585 $21,974 $240,731 $— $240,731 $8,194 Interest rate$300,411 

$$300,415 $28,419 $290,291 $— $290,291 $15,970 
CreditCredit9,839 — 9,839 1,031 10,912 — 10,912 880 Credit10,329 — 10,329 1,090 9,971 — 9,971 754 
Foreign exchangeForeign exchange169,186 393 169,579 12,625 174,622 1,124 175,746 14,097 Foreign exchange239,946 1,633 241,579 23,365 248,911 2,610 251,521 18,856 
EquityEquity68,631 — 68,631 9,981 79,727 — 79,727 17,233 Equity61,913 — 61,913 9,139 62,461 — 62,461 8,804 
CommodityCommodity21,233 5,420 26,653 11,470 20,837 7,091 27,928 9,712 Commodity23,652 1,705 25,357 8,867 20,758 2,511 23,269 6,757 
Total fair value of trading assets and liabilitiesTotal 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.
117126


Derivatives netting
The following tables present, as of SeptemberJune 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, 2022December 31, 2021June 30, 2023December 31, 2022
(in millions)(in millions)Gross derivative receivablesAmounts netted on the Consolidated balance sheetsNet derivative receivablesGross derivative receivablesAmounts netted on the Consolidated balance sheetsNet
derivative receivables
(in millions)Gross derivative receivablesAmounts netted on the Consolidated balance sheetsNet derivative receivablesGross derivative receivablesAmounts netted on the Consolidated balance sheetsNet
derivative receivables
U.S. GAAP nettable derivative receivablesU.S. GAAP nettable derivative receivablesU.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–clearedOTC–cleared67,743 (67,282)461 14,144 (13,839)305 OTC–cleared91,665 (91,508)157 93,800 (93,424)376 
Exchange-traded(a)
Exchange-traded(a)
1,061 (567)494 498 (489)
Exchange-traded(a)
573 (526)47 559 (311)248 
Total interest rate contractsTotal interest rate contracts275,887 (253,300)22,587 266,595 (248,611)17,984 Total interest rate contracts286,456 (260,603)25,853 298,281 (271,996)26,285 
Credit contracts:Credit contracts:Credit contracts:
OTCOTC11,181 (9,685)1,496 8,035 (7,177)858 OTC8,850 (7,818)1,032 8,474 (7,535)939 
OTC–clearedOTC–cleared2,520 (2,378)142 1,671 (1,631)40 OTC–cleared4,674 (4,622)52 1,746 (1,704)42 
Total credit contractsTotal credit contracts13,701 (12,063)1,638 9,706 (8,808)898 Total credit contracts13,524 (12,440)1,084 10,220 (9,239)981 
Foreign exchange contracts:Foreign exchange contracts:Foreign exchange contracts:
OTCOTC348,675 (317,060)31,615 166,185 (156,251)9,934 OTC223,998 (204,582)19,416 237,941 (216,796)21,145 
OTC–clearedOTC–cleared1,968 (1,904)64 789 (703)86 OTC–cleared910 (901)9 1,461 (1,417)44 
Exchange-traded(a)
Exchange-traded(a)
11 (2)9 — 
Exchange-traded(a)
11 (2)9 15 (1)14 
Total foreign exchange contractsTotal foreign exchange contracts350,654 (318,966)31,688 166,980 (156,954)10,026 Total foreign exchange contracts224,919 (205,485)19,434 239,417 (218,214)21,203 
Equity contracts:Equity contracts:Equity contracts:
OTCOTC44,162 (38,061)6,101 25,704 (23,977)1,727 OTC24,672 (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 contractsTotal equity contracts82,392 (74,175)8,217 61,799 (58,650)3,149 Total equity contracts58,868 (54,068)4,800 58,790 (52,774)6,016 
Commodity contracts:Commodity contracts:Commodity contracts:
OTCOTC23,803 (9,815)13,988 15,063 (6,868)8,195 OTC9,317 (5,539)3,778 14,430 (7,633)6,797 
OTC–clearedOTC–cleared132 (127)5 49 (49)— OTC–cleared111 (111) 120 (112)
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 contractsTotal commodity contracts36,678 (22,616)14,062 23,391 (15,183)8,208 Total commodity contracts15,694 (11,895)3,799 23,653 (16,490)7,163 
Derivative receivables with appropriate legal opinionDerivative receivables with appropriate legal opinion759,312 (681,120)78,192 (d)528,471 (488,206)40,265 (d)Derivative receivables with appropriate legal opinion599,461 (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 obtainedDerivative receivables where an appropriate legal opinion has not been either sought or obtained14,342 14,342 16,816 16,816 Derivative receivables where an appropriate legal opinion has not been either sought or obtained9,247 9,247 9,232 9,232 
Total derivative receivables recognized on the Consolidated balance sheetsTotal 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 amountsNet amounts$67,466 $46,979 Net amounts$40,935 $47,866 
118127


September 30, 2022December 31, 2021June 30, 2023December 31, 2022
(in millions)(in millions)Gross derivative payablesAmounts netted on the Consolidated balance sheetsNet derivative payablesGross derivative payablesAmounts netted on the Consolidated balance sheetsNet
derivative payables
(in millions)Gross derivative payablesAmounts netted on the Consolidated balance sheetsNet derivative payablesGross derivative payablesAmounts netted on the Consolidated balance sheetsNet
derivative payables
U.S. GAAP nettable derivative payablesU.S. GAAP nettable derivative payablesU.S. GAAP nettable derivative payables
Interest rate contracts:Interest rate contracts:Interest rate contracts:
OTCOTC$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–clearedOTC–cleared69,890 (69,517)373 15,695 (15,492)203 OTC–cleared94,771 (94,554)217 97,417 (97,126)291 
Exchange-traded(a)
Exchange-traded(a)
507 (507) 292 (288)
Exchange-traded(a)
512 (504)8 327 (305)22 
Total interest rate contractsTotal interest rate contracts263,481 (248,681)14,800 239,563 (232,537)7,026 Total interest rate contracts275,299 (262,185)13,114 287,852 (274,321)13,531 
Credit contracts:Credit contracts:Credit contracts:
OTCOTC8,347 (7,965)382 9,021 (8,421)600 OTC9,240 (8,768)472 8,054 (7,572)482 
OTC–clearedOTC–cleared2,628 (2,491)137 1,679 (1,611)68 OTC–cleared4,438 (4,433)5 1,674 (1,645)29 
Total credit contractsTotal credit contracts10,975 (10,456)519 10,700 (10,032)668 Total credit contracts13,678 (13,201)477 9,728 (9,217)511 
Foreign exchange contracts:Foreign exchange contracts:Foreign exchange contracts:
OTCOTC346,765 (328,364)18,401 171,610 (160,946)10,664 OTC220,326 (208,507)11,819 246,457 (231,248)15,209 
OTC–clearedOTC–cleared1,985 (1,934)51 706 (703)OTC–cleared993 (901)92 1,488 (1,417)71 
Exchange-traded(a)
Exchange-traded(a)
13 (4)9 — 
Exchange-traded(a)
15  15 20 — 20 
Total foreign exchange contractsTotal foreign exchange contracts348,763 (330,302)18,461 172,323 (161,649)10,674 Total foreign exchange contracts221,334 (209,408)11,926 247,965 (232,665)15,300 
Equity contracts:Equity contracts:Equity contracts:
OTCOTC39,131 (35,650)3,481 31,379 (27,830)3,549 OTC28,206 (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 contractsTotal equity contracts75,424 (71,775)3,649 72,000 (62,494)9,506 Total equity contracts63,863 (57,865)5,998 58,124 (53,657)4,467 
Commodity contracts:Commodity contracts:Commodity contracts:
OTCOTC15,885 (11,378)4,507 14,874 (9,667)5,207 OTC9,591 (6,061)3,530 11,954 (7,642)4,312 
OTC–clearedOTC–cleared126 (126) 73 (73)— OTC–cleared116 (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 contractsTotal commodity contracts29,495 (24,221)5,274 23,901 (18,216)5,685 Total commodity contracts16,757 (12,445)4,312 21,087 (16,512)4,575 
Derivative payables with appropriate legal opinionDerivative payables with appropriate legal opinion728,138 (685,435)42,703 (d)518,487 (484,928)33,559 (d)Derivative payables with appropriate legal opinion590,931 (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 obtainedDerivative payables where an appropriate legal opinion has not been either sought or obtained14,000 14,000 16,557 16,557 Derivative payables where an appropriate legal opinion has not been either sought or obtained10,718 10,718 12,757 12,757 
Total derivative payables recognized on the Consolidated balance sheetsTotal 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 amountsNet 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 SeptemberJune 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 SeptemberJune 30, 2022,2023, and December 31, 2021,2022, respectively. Derivative cash collateral relates to OTC and OTC-cleared derivative instruments.
119128


Liquidity risk and credit-related contingent features
Refer to Note 5 of JPMorgan Chase’s 20212022 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 SeptemberJune 30, 2022,2023, and December 31, 2021.2022.
OTC and OTC-cleared derivative payables containing downgrade triggersOTC and OTC-cleared derivative payables containing downgrade triggersOTC and OTC-cleared derivative payables containing downgrade triggers
(in millions)(in millions)September 30, 2022December 31, 2021(in millions)June 30, 2023December 31, 2022
Aggregate fair value of net derivative payablesAggregate fair value of net derivative payables$20,153 $20,114 Aggregate fair value of net derivative payables$15,243 $16,023 
Collateral postedCollateral posted20,090 19,402 Collateral posted14,144 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 SeptemberJune 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 paymentspayment 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 derivativesLiquidity impact of downgrade triggers on OTC and OTC-cleared derivativesLiquidity impact of downgrade triggers on OTC and OTC-cleared derivatives
September 30, 2022December 31, 2021June 30, 2023December 31, 2022
(in millions)(in millions)Single-notch downgradeTwo-notch downgradeSingle-notch downgradeTwo-notch downgrade(in millions)Single-notch downgradeTwo-notch downgradeSingle-notch downgradeTwo-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 Septemberboth June 30, 20222023 and December 31, 2021.2022.
120129


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 ninesix months ended SeptemberJune 30, 20222023 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 impactGains/(losses) recorded in income
Income statement impact of
excluded components
(e)
OCI impact
Three months ended September 30, 2022
(in millions)
DerivativesHedged itemsIncome statement impactAmortization approachChanges 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)
DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair value
Derivatives - Gains/(losses) recorded in OCI(f)
Contract typeContract typeContract 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  
TotalTotal$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 impactGains/(losses) recorded in income
Income statement impact of
excluded components(e)
OCI impact
Three months ended September 30, 2021
(in millions)
DerivativesHedged itemsIncome statement impactAmortization approachChanges 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)
DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair value
Derivatives - Gains/(losses) recorded in OCI(f)
Contract typeContract typeContract 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 (71)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)— 
TotalTotal$(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 impactGains/(losses) recorded in income
Income statement impact of
excluded components
(e)
OCI impact
Nine months ended September 30, 2022
(in millions)
DerivativesHedged itemsIncome statement impactAmortization approachChanges 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)
DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair value
Derivatives - Gains/(losses) recorded in OCI(f)
Contract typeContract typeContract 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  
TotalTotal$(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 impactGains/(losses) recorded in income
Income statement impact of
excluded components(e)
OCI impact
Nine months ended September 30, 2021
(in millions)
DerivativesHedged itemsIncome statement impactAmortization approachChanges 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)
DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair value
Derivatives - Gains/(losses) recorded in OCI(f)
Contract typeContract typeContract 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)— 
TotalTotal$(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 includeIncludes 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.
121130


As of SeptemberJune 30, 20222023 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
AssetsAssetsAssets
Investment securities - AFSInvestment securities - AFS$83,829 (c)$(6,391)$489 $(5,902)Investment securities - AFS$136,444 (c)$(2,752)$(3,462)$(6,214)
LiabilitiesLiabilitiesLiabilities
Long-term debtLong-term debt$168,982 $(15,968)$406 $(15,562)Long-term debt176,509 (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
AssetsAssetsAssets
Investment securities - AFSInvestment securities - AFS$65,746 (c)$417 $661 $1,078 Investment securities - AFS$84,073 (c)$(4,149)$(1,542)$(5,691)
LiabilitiesLiabilitiesLiabilities
Long-term debtLong-term debt$195,642 $(1,999)$8,834 $6,835 Long-term debt175,257 (11,879)(3,313)(15,192)
Beneficial interests issued by consolidated VIEs749 — (1)(1)
(a)Excludes physical commodities with a carrying value of $15.0$12.8 billion and $25.7$26.0 billion at SeptemberJune 30, 20222023 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 SeptemberJune 30, 20222023 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.
122131


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 ninesix months ended SeptemberJune 30, 20222023 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 typeContract typeContract type
Interest rate(a)
Interest rate(a)
$(160)$(2,279)$(2,119)
Interest rate(a)
$(474)$(1,199)$(725)
Foreign exchange(b)
Foreign exchange(b)
(118)(232)(114)
Foreign exchange(b)
9 80 71 
TotalTotal$(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 typeContract typeContract 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)
TotalTotal$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 typeContract typeContract type
Interest rate(a)
Interest rate(a)
$169 $(7,149)$(7,318)
Interest rate(a)
$(902)$(738)$164 
Foreign exchange(b)
Foreign exchange(b)
(186)(548)(362)
Foreign exchange(b)
(46)186 232 
TotalTotal$(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 typeContract typeContract 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)
TotalTotal$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 ninesix months ended SeptemberJune 30, 20222023 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 SeptemberJune 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 sixseven 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 ninesix months ended SeptemberJune 30, 20222023 and 2021.2022.
Gains/(losses) recorded in income and other comprehensive income/(loss)Gains/(losses) recorded in income and other comprehensive income/(loss)
2022202120232022
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 derivativesForeign exchange derivatives$26 $2,992 $(73)$1,028 Foreign exchange derivatives$121 $(88)$(116)$3,520 
Gains/(losses) recorded in income and other comprehensive income/(loss)Gains/(losses) recorded in income and other comprehensive income/(loss)
2022202120232022
Nine months ended September 30,
(in millions)
Amounts recorded in
income(a)(b)
Amounts recorded in OCI
Amounts recorded in
income(a)(b)
Amounts recorded in OCI
Six months ended June 30,
(in millions)
Six months ended June 30,
(in millions)
Amounts recorded in
income(a)(b)
Amounts recorded in OCI
Amounts recorded in
income(a)(b)
Amounts recorded in OCI
Foreign exchange derivativesForeign exchange derivatives$(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 ninethree months ended SeptemberJune 30, 20222023 and three and ninesix months ended SeptemberJune 30, 20212022 were not material. Refer to Note 1921 for further information.
124133


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)2022202120222021(in millions)2023202220232022
Contract typeContract typeContract 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 43 (76)
TotalTotal$(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.































125134


Credit derivatives
Refer to Note 5 of JPMorgan Chase’s 20212022 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 SeptemberJune 30, 20222023 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 amountMaximum 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 derivativesCredit derivativesCredit derivatives
Credit default swapsCredit default swaps$(558,532)$572,446 $13,914 $1,486 Credit default swaps$(649,720)$677,813 $28,093 $5,774 
Other credit derivatives(a)
Other credit derivatives(a)
(69,476)87,111 17,635 17,761 
Other credit derivatives(a)
(55,887)73,831 17,944 13,765 
Total credit derivativesTotal credit derivatives(628,008)659,557 31,549 19,247 Total credit derivatives(705,607)751,644 46,037 19,539 
Credit-related notes(b)
Credit-related notes(b)
   7,691 
Credit-related notes(b)
   8,064 
TotalTotal$(628,008)$659,557 $31,549 $26,938 Total$(705,607)$751,644 $46,037 $27,603 
Maximum payout/Notional amountMaximum payout/Notional amount
December 31, 2021 (in millions)Protection sold
Protection purchased with identical underlyings(c)
Net protection (sold)/purchased(d)
Other protection purchased(e)
December 31, 2022 (in millions)December 31, 2022 (in millions)Protection sold
Protection purchased with identical underlyings(c)
Net protection (sold)/purchased(d)
Other protection purchased(e)
Credit derivativesCredit derivativesCredit derivatives
Credit default swapsCredit default swaps$(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 derivativesTotal 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 
TotalTotal$(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 SeptemberJune 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 year1–5 years>5 yearsTotal
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 year1–5 years>5 yearsTotal
notional amount
Fair value of receivables(b)
Fair value of payables(b)
Net fair value
Risk rating of reference entityRisk rating of reference entityRisk rating of reference entity
Investment-gradeInvestment-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)$3,076 
Noninvestment-gradeNoninvestment-grade(30,272)(94,086)(20,831)(145,189)815 (4,614)(3,799)Noninvestment-grade(38,784)(106,800)(6,203)(151,787)2,575 (3,606)(1,031)
TotalTotal$(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)$2,045 
December 31, 2021
(in millions)
<1 year1–5 years>5 yearsTotal
notional amount
Fair value of receivables(b)
Fair value of payables(b)
Net fair value
December 31, 2022
(in millions)
December 31, 2022
(in millions)
<1 year1–5 years>5 yearsTotal
notional amount
Fair value of receivables(b)
Fair value of payables(b)
Net fair value
Risk rating of reference entityRisk rating of reference entityRisk rating of reference entity
Investment-gradeInvestment-grade$(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)$829 
Noninvestment-gradeNoninvestment-grade(32,175)(84,851)(7,289)(124,315)2,630 (2,003)627 Noninvestment-grade(33,244)(87,011)(6,370)(126,625)1,267 (3,209)(1,942)
TotalTotal$(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.
126135


Note 56 – Noninterest revenue and noninterest expense
Noninterest revenue
Refer to Note 6 of JPMorgan Chase’s 20212022 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)2022202120222021(in millions)2023202220232022
UnderwritingUnderwritingUnderwriting
EquityEquity$271 $1,034 $743 $3,169 Equity$317 $230 $550 $472 
DebtDebt578 1,019 2,263 3,713 Debt704 711 1,376 1,685 
Total underwritingTotal underwriting849 2,053 3,006 6,882 Total underwriting1,021 941 1,926 2,157 
AdvisoryAdvisory825 1,229 2,262 2,840 Advisory492 645 1,236 1,437 
Total investment banking feesTotal 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)2022202120222021(in millions)2023202220232022
Trading revenue by instrument typeTrading revenue by instrument typeTrading 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 exchangeForeign exchange1,398 648 4,147 2,287 Foreign exchange1,435 1,425 2,986 2,749 
EquityEquity1,868 1,863 6,426 6,449 Equity2,941 2,303 5,634 4,558 
CommodityCommodity562 315 1,808 1,165 Commodity368 499 1,294 1,246 
Total trading revenueTotal trading revenue5,408 3,661 15,542 14,152 Total trading revenue6,944 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 transactionsPrincipal 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)2022202120222021(in millions)2023202220232022
Lending-related fees(a)Lending-related fees(a)$379 $374 $1,103 $1,102 Lending-related fees(a)$590 $362 $959 $724 
Deposit-related feesDeposit-related fees1,352 1,427 4,340 4,146 Deposit-related fees1,238 1,511 2,489 2,988 
Total lending- and deposit-related feesTotal 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 commissionsfees
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)2022202120222021
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 fees3,495 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 fees368 248 1,030 760 
Total commissions and fees1,016 967 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)2023202220232022
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 servicesCommissions 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)2023202220232022
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.
127136


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)2022202120222021(in millions)2023202220232022
Interchange and merchant processing incomeInterchange 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 paymentsRewards 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 incomeTotal 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)
2023202220232022
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.
(c)    Gain on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% of the entity.
Refer to Note 17 for information on operating lease income included within other incomeincome.
.
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)2022202120222021(in millions)2023202220232022
Legal expenseLegal expense$47 $76 $239 $289 Legal expense$420 $73 $596 $192 
FDIC-related expenseFDIC-related expense338 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 20212022 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)2022202120222021(in millions)2023202220232022
Interest incomeInterest incomeInterest income
Loans(a)
Loans(a)
$13,985 $10,445 $36,244 $30,777 
Loans(a)
$20,306 $11,626 $38,014 $22,259 
Taxable securitiesTaxable securities2,696 1,553 6,964 4,735 Taxable securities4,194 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 instrumentsTrading assets - debt instruments2,390 1,682 6,206 5,175 Trading assets - debt instruments4,013 2,049 7,659 3,816 
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements1,413 231 2,353 639 Federal funds sold and securities purchased under resale agreements3,767 543 6,898 940 
Securities borrowed(c)
Securities borrowed(c)
772 

(73)858 (240)
Securities borrowed(c)
1,866 173 3,582 86 
Deposits with banksDeposits with banks3,015 174 4,332 342 Deposits with banks5,189 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 incomeTotal interest income$25,611 $14,480 $59,753 $42,845 Total interest income$41,644 $18,646 $78,648 $34,142 
Interest expenseInterest expenseInterest expense
Interest-bearing depositsInterest-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 agreementsFederal funds purchased and securities loaned or sold under repurchase agreements1,267 119 1,852 194 Federal funds purchased and securities loaned or sold under repurchase agreements3,400 445 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 debtLong-term debt2,405 1,054 5,042 3,244 Long-term debt3,876 1,561 7,189 2,637 
Beneficial interest issued by consolidated VIEsBeneficial interest issued by consolidated VIEs62 18 110 66 Beneficial interest issued by consolidated VIEs197 30 344 48 
Total interest expenseTotal interest expense$8,093 $1,400 $13,235 $4,135 Total interest expense$19,865 $3,518 $36,158 $5,142 
Net interest incomeNet interest income$17,518 $13,080 $46,518 $38,710 Net interest income$21,779 $15,128 $42,490 $29,000 
Provision for credit lossesProvision for credit losses1,537 (1,527)4,101 (7,968)Provision for credit losses2,899 1,101 5,174 2,564 
Net interest income after provision for credit lossesNet 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.
128138


Note 78 – Pension and other postretirement employee benefit plans
Refer to Note 8 of JPMorgan Chase’s 20212022 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,
2022202120222021(in millions)2023202220232022
Pension and OPEB plansPension and OPEB plansPension and OPEB plansPension 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 plansTotal defined contribution plans353 327 1,054 998 Total defined contribution plans397 357 762 701 
Total pension and OPEB cost included in noninterest expenseTotal 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 SeptemberAs of June 30, 20222023 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).

129139


Note 89 – Employee share-based incentives
Refer to Note 9 of JPMorgan Chase’s 20212022 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)2022202120222021(in millions)2023202220232022
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 periodsCost 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 employeesAccrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees392 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 employees385 441 898 976 
Total noncash compensation expense related to employee share-based incentive plansTotal 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 20212022 performance year, the Firm granted 1920 million RSUs and 720801 thousand PSUs with weighted-average grant date fair values of $151.06$138.57 per RSU and $149.99$139.81 per PSU.
130140


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 SeptemberJune 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

Duringtransferred obligations of U.S. states and municipalities with a carrying value of $7.1 billion resulting in the second quarterrecognition 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 20212022 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, 2022December 31, 2021June 30, 2023December 31, 2022
(in millions)(in millions)
Amortized cost(b)(c)
Gross unrealized gainsGross unrealized lossesFair value
Amortized cost(b)(c)
Gross unrealized gainsGross unrealized lossesFair value(in millions)
Amortized cost(c)(d)
Gross unrealized gainsGross unrealized lossesFair value
Amortized cost(c)(d)
Gross unrealized gainsGross unrealized lossesFair value
Available-for-sale securitiesAvailable-for-sale securitiesAvailable-for-sale securities
Mortgage-backed securities:Mortgage-backed securities:Mortgage-backed securities:
U.S. GSEs and government agenciesU.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 2,164 U.S.1,803 1 119 1,685 1,576 111 1,466 
Non-U.S.Non-U.S.3,235 6 20 3,221 3,882 25 3,906 Non-U.S.1,861 4 6 1,859 3,176 27 3,154 
CommercialCommercial2,073  136 1,937 4,944 22 17 4,949 Commercial2,223 1 168 2,056 2,113 — 155 1,958 
Total mortgage-backed securitiesTotal mortgage-backed securities67,290 210 7,470 60,030 83,754 821 1,013 83,562 Total mortgage-backed securities90,636 332 5,600 85,368 84,059 485 6,463 78,081 
U.S. Treasury and government agenciesU.S. Treasury and government agencies94,558 204 4,275 90,487 178,038 668 1,243 177,463 U.S. Treasury and government agencies63,998 297 1,558 62,737 95,217 302 3,459 92,060 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities9,038 70 526 8,582 14,890 972 15,860 Obligations of U.S. states and municipalities24,279 172 428 24,023 7,103 86 403 6,786 
Non-U.S. government debt securitiesNon-U.S. government debt securities15,200 17 616 14,601 16,163 92 46 16,209 Non-U.S. government debt securities22,588 20 568 22,040 20,360 14 678 19,696 
Corporate debt securitiesCorporate debt securities333  34 299 332 19 321 Corporate debt securities410  22 388 381 — 24 357 
Asset-backed securities:Asset-backed securities:Asset-backed securities:
Collateralized loan obligationsCollateralized loan obligations11,244  324 10,920 9,674 18 9,662 Collateralized loan obligations5,506 3 72 5,437 5,916 125 5,792 
OtherOther3,256 19 54 3,221 5,403 47 5,448 Other3,324 2 57 3,269 3,152 69 3,085 
Unallocated portfolio layer fair value
basis adjustments(a)
Unallocated portfolio layer fair value
basis adjustments(a)
(865) (865)NANANA
Total available-for-sale securitiesTotal available-for-sale securities200,919 520 13,299 188,140 308,254 2,614 2,343 308,525 Total available-for-sale securities209,876 826 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 agenciesU.S. GSEs and government agencies114,012  15,112 98,900 102,556 1,400 853 103,103 U.S. GSEs and government agencies110,517 29 13,201 97,345 113,492 35 13,709 99,818 
U.S. ResidentialU.S. Residential10,750 1 1,251 9,500 7,316 106 7,211 U.S. Residential10,293 3 1,206 9,090 10,503 1,244 9,262 
CommercialCommercial10,311 1 791 9,521 3,730 11 54 3,687 Commercial10,712 7 741 9,978 10,361 10 734 9,637 
Total mortgage-backed securitiesTotal mortgage-backed securities135,073 2 17,154 117,921 113,602 1,412 1,013 114,001 Total mortgage-backed securities131,522 39 15,148 116,413 134,356 48 15,687 118,717 
U.S. Treasury and government agenciesU.S. Treasury and government agencies218,614  19,502 199,112 185,204 169 2,103 183,270 U.S. Treasury and government agencies202,655  16,825 185,830 207,463 — 18,363 189,100 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities19,387 6 1,529 17,864 13,985 453 44 14,394 Obligations of U.S. states and municipalities11,617 44 758 10,903 19,747 53 1,080 18,720 
Asset-backed securities:Asset-backed securities:Asset-backed securities:
Collateralized loan obligationsCollateralized loan obligations54,566  2,049 52,517 48,869 75 22 48,922 Collateralized loan obligations61,095 42 951 60,186 61,414 1,522 59,896 
OtherOther2,466  102 2,364 2,047 2,041 Other2,052  84 1,968 2,325 — 110 2,215 
Total held-to-maturity securitiesTotal held-to-maturity securities430,106 8 40,336 389,778 363,707 2,110 3,189 362,628 Total held-to-maturity securities408,941 125 33,766 375,300 425,305 105 36,762 388,648 
Total investment securities, net of allowance for credit lossesTotal 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 ninesix months ended SeptemberJune 30, 2022,2023, respectively, and $15.9$14.3 billion and $79.0$27.5 billion for the three and ninesix months ended SeptemberJune 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 SeptemberJune 30, 20222023 and December 31, 2021,2022, respectively.
(c)(d)Excludes $2.1 billion and $1.9$2.5 billion of accrued interest receivablesreceivable at Septemberboth June 30, 20222023 and December 31, 2021, respectively.2022. The Firm did not reverse through interest income any accrued interest receivablesreceivable for the three and ninesix months ended SeptemberJune 30, 20222023 and 2021.2022. Refer to Note 10 of JPMorgan Chase’s 20212022 Form 10-K for further discussion of accounting policies for accrued interest receivablesreceivable 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.
131141


AFS securities impairment
The following tables present the fair value and gross unrealized losses by aging category for AFS securities at SeptemberJune 30, 20222023 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 SeptemberJune 30, 20222023 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 lossesAvailable-for-sale securities with gross unrealized losses
Less than 12 months12 months or moreLess than 12 months12 months or more
September 30, 2022 (in millions)Fair valueGross
unrealized losses
Fair valueGross
unrealized losses
Total fair valueTotal gross unrealized losses
June 30, 2023 (in millions)June 30, 2023 (in millions)Fair valueGross
unrealized losses
Fair valueGross
unrealized losses
Total fair valueTotal gross unrealized losses
Available-for-sale securitiesAvailable-for-sale securitiesAvailable-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 
CommercialCommercial1,674 106 263 30 1,937 136 Commercial154 3 1,761 165 1,915 168 
Total mortgage-backed securitiesTotal mortgage-backed securities6,053 213 434 46 6,487 259 Total mortgage-backed securities529 10 4,649 283 5,178 293 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities4,243 493 61 33 4,304 526 Obligations of U.S. states and municipalities10,757 123 1,961 305 12,718 428 
Non-U.S. government debt securitiesNon-U.S. government debt securities9,847 475 1,474 141 11,321 616 Non-U.S. government debt securities8,745 64 5,316 504 14,061 568 
Corporate debt securitiesCorporate debt securities174 4 125 30 299 34 Corporate debt securities123 2 77 20 200 22 
Asset-backed securities:Asset-backed securities:Asset-backed securities:
Collateralized loan obligationsCollateralized loan obligations8,271 244 2,510 80 10,781 324 Collateralized loan obligations20  5,066 72 5,086 72 
OtherOther2,468 49 148 5 2,616 54 Other1,157 16 1,888 41 3,045 57 
Total available-for-sale securities with gross unrealized lossesTotal 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 lossesAvailable-for-sale securities with gross unrealized losses
Less than 12 months12 months or moreLess than 12 months12 months or more
December 31, 2021 (in millions)Fair valueGross
unrealized losses
Fair valueGross
unrealized losses
Total fair valueTotal gross unrealized losses
December 31, 2022 (in millions)December 31, 2022 (in millions)Fair valueGross
unrealized losses
Fair valueGross
unrealized losses
Total fair valueTotal gross unrealized losses
Available-for-sale securitiesAvailable-for-sale securitiesAvailable-for-sale securities
Mortgage-backed securities:Mortgage-backed securities:Mortgage-backed securities:
Residential:Residential:Residential:
U.S.U.S.$303 $$45 $$348 $U.S.$1,187 $71 $260 $40 $1,447 $111 
Non-U.S.Non-U.S.133 — — 133 Non-U.S.2,848 25 70 2,918 27 
CommercialCommercial2,557 349 12 2,906 17 Commercial1,131 74 813 81 1,944 155 
Total mortgage-backed securitiesTotal mortgage-backed securities2,993 394 13 3,387 20 Total mortgage-backed securities5,166 170 1,143 123 6,309 293 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities120 — — 120 Obligations of U.S. states and municipalities3,051 241 364 162 3,415 403 
Non-U.S. government debt securitiesNon-U.S. government debt securities5,060 37 510 5,570 46 Non-U.S. government debt securities6,941 321 3,848 357 10,789 678 
Corporate debt securitiesCorporate debt securities166 46 18 212 19 Corporate debt securities150 207 22 357 24 
Asset-backed securities:Asset-backed securities:Asset-backed securities:
Collateralized loan obligationsCollateralized loan obligations8,110 18 208 — 8,318 18 Collateralized loan obligations3,010 61 2,701 64 5,711 125 
OtherOther89 — 178 267 Other2,586 51 256 18 2,842 69 
Total available-for-sale securities with gross unrealized lossesTotal 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.
132142


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 SeptemberJune 30, 20222023 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 SeptemberJune 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 20212022 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)2022202120222021(in millions)2023202220232022
Realized gainsRealized gains$88 $60 $170 $481 Realized gains$198 $69 $329 $82 
Realized lossesRealized losses(1,047)(316)(1,676)(878)Realized losses(1,098)(222)(2,097)(629)
Investment securities lossesInvestment securities losses$(959)$(256)$(1,506)$(397)Investment securities losses$(900)$(153)$(1,768)$(547)
Provision for credit lossesProvision for credit losses$14 $(14)$19 $(5)Provision for credit losses$13 $$14 $
133143


Contractual maturities and yields
The following table presents the amortized cost and estimated fair value at SeptemberJune 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 yearsDue 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 yearsDue after five years through 10 years
Due after
10 years(c)
Total
Available-for-sale securitiesAvailable-for-sale securitiesAvailable-for-sale securities
Mortgage-backed securitiesMortgage-backed securitiesMortgage-backed securities
Amortized costAmortized cost$$3,213 $4,107 $59,969 $67,290 Amortized cost$15 $3,622 $5,077 $81,922 $90,636 
Fair valueFair value3,023 4,137 52,869 60,030 Fair value14 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 agenciesU.S. Treasury and government agenciesU.S. Treasury and government agencies
Amortized costAmortized cost$20,409 $58,159 $9,753 $6,237 $94,558 Amortized cost$7,471 $36,773 $13,276 $6,478 $63,998 
Fair valueFair value19,913 55,378 8,958 6,238 90,487 Fair value7,384 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 municipalitiesObligations of U.S. states and municipalitiesObligations of U.S. states and municipalities
Amortized costAmortized cost$18 $75 $622 $8,323 $9,038 Amortized cost$11 $72 $1,244 $22,952 $24,279 
Fair valueFair value18 74 623 7,867 8,582 Fair value11 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 securitiesNon-U.S. government debt securitiesNon-U.S. government debt securities
Amortized costAmortized cost$7,465 $3,475 $3,951 $309 $15,200 Amortized cost$13,373 $3,423 $3,352 $2,440 $22,588 
Fair valueFair value7,456 3,340 3,492 313 14,601 Fair value13,360 3,321 2,929 2,430 22,040 
Average yield(a)
Average yield(a)
2.83 %2.76 %1.24 %2.10 %2.39 %
Average yield(a)
4.78 %2.97 %1.23 %3.61 %3.86 %
Corporate debt securitiesCorporate debt securitiesCorporate debt securities
Amortized costAmortized cost$— $329 $13 $— $342 Amortized cost$199 $227 $14 $— $440 
Fair valueFair value— 286 13 — 299 Fair value151 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 securitiesAsset-backed securitiesAsset-backed securities
Amortized costAmortized cost$104 $1,618 $3,512 $9,266 $14,500 Amortized cost$— $1,313 $3,875 $3,642 $8,830 
Fair valueFair value101 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 securitiesTotal available-for-sale securitiesTotal 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 $210,771 
Fair valueFair value27,489 63,688 20,660 76,303 188,140 Fair value20,920 44,093 26,378 111,871 203,262 (d)
Average yield(a)
Average yield(a)
1.56 %1.75 %2.59 %3.30 %2.46 %
Average yield(a)
3.32 %4.44 %5.30 %4.78 %4.63 %
Held-to-maturity securitiesHeld-to-maturity securitiesHeld-to-maturity securities
Mortgage-backed securitiesMortgage-backed securitiesMortgage-backed securities
Amortized costAmortized cost$— $1,759 $11,828 $121,498 $135,085 Amortized cost$99 $3,835 $10,482 $117,142 $131,558 
Fair valueFair value— 1,616 10,235 106,070 117,921 Fair value97 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 agenciesU.S. Treasury and government agenciesU.S. Treasury and government agencies
Amortized costAmortized cost$31,247 $120,211 $67,156 $— $218,614 Amortized cost$60,878 $92,403 $49,374 $— $202,655 
Fair valueFair value30,802 112,245 56,065 — 199,112 Fair value59,517 85,053 41,260 — 185,830 
Average yield(a)
Average yield(a)
0.53 %0.69 %1.27 %— %0.84 %
Average yield(a)
0.46 %0.93 %1.27 %— %0.87 %
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalitiesObligations of U.S. states and municipalities
Amortized costAmortized cost$— $84 $2,523 $16,821 $19,428 Amortized cost$— $— $640 $11,015 $11,655 
Fair valueFair value— 78 2,470 15,316 17,864 Fair value— — 608 10,295 10,903 
Average yield(a)
Average yield(a)
— %3.06 %4.01 %4.18 %4.16 %
Average yield(a)
— %— %4.39 %4.04 %4.06 %
Asset-backed securitiesAsset-backed securitiesAsset-backed securities
Amortized costAmortized cost$— $— $17,229 $39,802 $57,031 Amortized cost$— $74 $21,388 $41,685 $63,147 
Fair valueFair 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 securitiesTotal held-to-maturity securitiesTotal 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 valueFair value30,802 113,939 85,637 159,400 389,778 Fair value59,614 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 nineeight years for agency residential MBS, and sixseven 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 20212022 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 lendingfinancing 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 SeptemberJune 30, 20222023 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, 2022June 30, 2023
(in millions)(in millions)Gross amountsAmounts netted on the Consolidated balance sheetsAmounts presented on the Consolidated balance sheets
Amounts not nettable on the Consolidated balance sheets(b)
Net
amounts(c)
(in millions)Gross amountsAmounts netted on the Consolidated balance sheetsAmounts presented on the Consolidated balance sheets
Amounts not nettable on the Consolidated balance sheets(b)
Net
amounts(c)
AssetsAssetsAssets
Securities purchased under resale agreementsSecurities 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 borrowedSecurities borrowed233,381 (40,165)193,216 (139,178)54,038 Securities borrowed205,579 (42,016)163,563 (119,543)44,020 
LiabilitiesLiabilitiesLiabilities
Securities sold under repurchase agreementsSecurities 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, 2021December 31, 2022
(in millions)(in millions)Gross amountsAmounts netted on the Consolidated balance sheetsAmounts presented on the Consolidated balance sheets
Amounts not nettable on the Consolidated balance sheets(b)
Net
amounts(c)
(in millions)Gross amountsAmounts netted on the Consolidated balance sheetsAmounts presented on the Consolidated balance sheets
Amounts not nettable on the Consolidated balance sheets(b)
Net
amounts(c)
AssetsAssetsAssets
Securities purchased under resale agreementsSecurities 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 borrowedSecurities borrowed250,333 (44,262)206,071 (154,599)51,472 Securities borrowed228,279 (42,910)185,369 (131,578)53,791 
LiabilitiesLiabilitiesLiabilities
Securities sold under repurchase agreementsSecurities 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)
(a)Includes securities-for-securities lending agreements of $5.9$5.0 billion and $5.6$7.0 billion at SeptemberJune 30, 20222023 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 SeptemberJune 30, 20222023 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.
135145


The tables below present as of SeptemberJune 30, 2022,2023, and December 31, 20212022 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements.
Gross liability balanceGross liability balance
September 30, 2022December 31, 2021June 30, 2023December 31, 2022
(in millions) (in millions)Securities sold under repurchase agreementsSecurities loaned and otherSecurities sold under repurchase agreementsSecurities loaned and other (in millions)Securities sold under repurchase agreementsSecurities loaned and otherSecurities sold under repurchase agreementsSecurities loaned and other
Mortgage-backed securitiesMortgage-backed securitiesMortgage-backed securities
U.S. GSEs and government agenciesU.S. GSEs and government agencies$52,178 $ $37,046 $— U.S. GSEs and government agencies$72,006 $ $58,050 $— 
Residential - nonagencyResidential - nonagency1,871  1,508 — Residential - nonagency2,333  2,414 — 
Commercial - nonagencyCommercial - nonagency1,439  1,463 — Commercial - nonagency2,178  2,007 — 
U.S. Treasury, GSEs and government agenciesU.S. Treasury, GSEs and government agencies216,942 1,096 241,578 358 U.S. Treasury, GSEs and government agencies223,411 987 191,254 1,464 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities2,213 24 1,916 Obligations of U.S. states and municipalities2,038  1,735 
Non-U.S. government debtNon-U.S. government debt158,424 1,383 174,971 1,572 Non-U.S. government debt127,427 1,509 155,156 1,259 
Corporate debt securitiesCorporate debt securities37,938 1,766 38,180 1,619 Corporate debt securities36,575 1,882 37,121 461 
Asset-backed securitiesAsset-backed securities2,524  1,211 — Asset-backed securities3,816  2,981 — 
Equity securitiesEquity securities32,226 47,376 35,026 49,054 Equity securities27,082 46,173 30,075 49,254 
TotalTotal$505,755 $51,645 $532,899 $52,610 Total$496,866 $50,551 $480,793 $52,443 
Remaining contractual maturity of the agreementsRemaining contractual maturity of the agreements
Overnight and continuousGreater than
90 days
Overnight and continuousGreater than
90 days
September 30, 2022 (in millions)Up to 30 days30 – 90 daysTotal
June 30, 2023 (in millions)June 30, 2023 (in millions)Overnight and continuousUp to 30 days30 – 90 daysGreater than
90 days
Total
Total securities sold under repurchase agreementsTotal 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 otherTotal securities loaned and other50,090 476 3 1,076 51,645 Total securities loaned and other49,166 243 2 1,140 50,551 
Remaining contractual maturity of the agreementsRemaining contractual maturity of the agreements
Overnight and continuousGreater than
90 days
Overnight and continuousGreater than
90 days
December 31, 2021 (in millions)Up to 30 days30 – 90 daysTotal
December 31, 2022 (in millions)December 31, 2022 (in millions)Overnight and continuousUp to 30 days30 – 90 daysGreater than
90 days
Total
Total securities sold under repurchase agreementsTotal 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 otherTotal securities loaned and other50,034 1,701 — 875 52,610 Total securities loaned and other50,138 1,285 1,017 52,443 
Transfers not qualifying for sale accounting
At Septemberboth 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.
136146


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 20212022 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 20212022 Form 10-K for more information on SPEs.
The following tables summarize the Firm’s loan balances by portfolio segment.
September 30, 2022Consumer, excluding credit cardCredit cardWholesale
Total(a)(b)
June 30, 2023June 30, 2023Consumer, excluding credit cardCredit cardWholesale
Total(b)(c)
(in millions)(in millions)Consumer, excluding credit cardCredit cardWholesale
Total(a)(b)
(in millions)
RetainedRetainedRetained$396,195 (a)$191,348 $668,145 (a)$1,255,688 
Held-for-saleHeld-for-sale682  2,391 3,073 Held-for-sale549  5,043 5,592 
At fair valueAt fair value11,711  29,776 41,487 At fair value11,460 (a) 27,329 

38,789 
TotalTotal$313,796 $170,462 $628,375 $1,112,633 Total$408,204 $191,348 $700,517 $1,300,069 
December 31, 2021Consumer, excluding credit cardCredit cardWholesale
Total(a)(b)
December 31, 2022December 31, 2022Consumer, excluding credit cardCredit cardWholesale
Total(b)(c)
(in millions)(in millions)Consumer, excluding credit cardCredit cardWholesale
Total(a)(b)
(in millions)
RetainedRetainedRetained$300,753 $185,175 $603,670 $1,089,598 
Held-for-saleHeld-for-sale1,287 — 7,401 8,688 Held-for-sale618 — 3,352 3,970 
At fair valueAt fair value26,463 — 32,357 58,820 At fair value10,004 — 32,075 42,079 
TotalTotal$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 Septemberas of June 30, 2022,2023 and December 31, 2021,2022, respectively. The Firm wrote off accruedAccrued interest receivables of $8 million and $10 millionwritten off was not material for the three and six months ended SeptemberJune 30, 20222023 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 SeptemberJune 30, 2022,2023, and December 31, 2021.2022.
137147


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.
2022202120232022
Three months ended September 30,
(in millions)
Consumer, excluding
credit card
Credit cardWholesaleTotalConsumer, excluding
credit card
Credit cardWholesaleTotal
Three months ended June 30,
(in millions)
Three months ended June 30,
(in millions)
Consumer, excluding
credit card
Credit cardWholesaleTotalConsumer, excluding
credit card
Credit cardWholesaleTotal
PurchasesPurchases$447 (b)(c)$ $462 $909 $101 (b)(c)$— $245 $346 Purchases$92,002 (b)(c)(d)$ $58,398 (b)$150,400 $973 (c)(d)$— $228 $1,201 
SalesSales2,755  11,226 13,981 — — 7,826 7,826 Sales438  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 
2022202120232022
Nine months ended September 30,
(in millions)
Consumer, excluding
credit card
Credit cardWholesaleTotalConsumer, excluding
credit card
Credit cardWholesaleTotal
Six months ended June 30, 2022
(in millions)
Six months ended June 30, 2022
(in millions)
Consumer, excluding
credit card
Credit cardWholesaleTotalConsumer, excluding
credit card
Credit cardWholesaleTotal
PurchasesPurchases$1,539 (b)(c)$ $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 
SalesSales2,884  32,938 35,822 181 — 22,307 22,488 Sales438  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 includesIncludes 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 ninesix months ended SeptemberJune 30, 20222023 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 SeptemberJune 30, 2023 and 2022, and 2021, respectively, and $11.6$2.3 billion and $19.3$9.2 billion for the ninesix months ended SeptemberJune 30, 20222023 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 ninesix months ended SeptemberJune 30, 20222023, 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 ninesix months ended SeptemberJune 30, 20212022, 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.


138148


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 estateResidential 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 loansTotal 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 $5.4Included $91.9 billion of loans respectively, in Business Banking underassociated 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 20212022 Form 10-K for further information on consumer credit quality indicators.



139149


Residential real estate
The following tables provide information on delinquency, whichDelinquency 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 loansTotal
Term loans by origination year(d)(f)
Revolving loansTotal
20222021202020192018Prior to 2018Within the revolving periodConverted to term loans20232022202120202019Prior to 2019Within the revolving periodConverted 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$236,285Current(c)$13,596 $65,317 $86,325 $57,052 $22,211 $65,271 $7,584 $8,877 $326,233 
30–149 days past due30–149 days past due8121318155171218578030–149 days past due3 19 44 29 41 710 39 216 1,101 
150 or more days past due150 or more days past due41174944186706150 or more days past due 6 2 6 10 473 3 176 676 
Total retained loansTotal retained loans$36,447$66,687$43,979$15,712$6,508$52,185$5,763$10,490$237,771Total retained loans$13,599 $65,342 $86,371 $57,087 $22,262 $66,454 $7,626 $9,269 $328,010 
% of 30+ days past due to total retained loans(c)(e)
% of 30+ days past due to total retained loans(c)(e)
0.02 %0.02 %0.04 %0.18 %0.34 %1.89 %0.28 %3.54 %0.61 %
% of 30+ days past due to total retained loans(c)(e)
0.02 %0.04 %0.05 %0.06 %0.23 %1.75 %0.55 %4.23 %0.54 %
Gross charge-offsGross charge-offs$ $ $ $ $ $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 loansTotal
Term loans by origination year(d)(f)
Revolving loansTotal
20212020201920182017Prior to 2017Within the revolving periodConverted to term loans20222021202020192018Prior to 2018Within the revolving periodConverted to term loans
Loan delinquency(a)(b)
Loan delinquency(a)(b)
Loan delinquency(a)(b)
CurrentCurrent$68,742$48,334$18,428$7,929$11,684$49,147$6,392$11,807$222,463Current$39,934$66,072$43,315$15,397$6,339$49,632$5,589$9,685$235,963
30–149 days past due30–149 days past due132327225781118288330–149 days past due2911142059715208914
150 or more days past due150 or more days past due112125331,06962841,449150 or more days past due161074804175684
Total retained loansTotal retained loans$68,755$48,368$18,476$7,981$11,739$50,794$6,409$12,273$224,795Total 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, individualIndividual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $27 millionwhich 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 SeptemberJune 30, 20222023 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 estateprior to 2019, respectively, and $2.5 billion of revolving loans excludedwithin 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.
140150


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, 2022December 31, 2021(in millions, except weighted-average data)June 30, 2023December 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 660Equal to or greater than 660$3 $Equal to or greater than 660$68 $
Less than 660Less than 6601 Less than 6605 — 
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 660Equal to or greater than 66040 37 Equal to or greater than 660569 174 
Less than 660Less than 6604 15 Less than 66011 
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 660Equal to or greater than 6604,047 2,701 Equal to or greater than 66017,260 (l)12,034 
Less than 660Less than 66063 89 Less than 660254 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 660Equal to or greater than 660222,577 209,295 Equal to or greater than 660298,791 (l)215,096 
Less than 660Less than 6608,736 9,658 Less than 6609,526 (l)8,659 
No FICO/LTV availableNo FICO/LTV available2,247 2,930 No FICO/LTV available1,526 1,406 (k)
U.S. government-guaranteed53 66 
Total retained loansTotal 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)
CaliforniaCalifornia$73,200 $71,383 California$128,038 (n)$73,112 
New YorkNew York34,518 32,545 New York49,413 (n)34,471 
FloridaFlorida18,727 16,182 Florida22,518 (n)18,870 
TexasTexas15,011 13,865 Texas15,448 14,968 
MassachusettsMassachusetts14,351 (n)6,380 
IllinoisIllinois11,411 11,565 Illinois11,052 11,296 
ColoradoColorado9,887 8,885 Colorado10,765 9,968 
WashingtonWashington9,019 8,292 Washington9,778 9,060 
New JerseyNew Jersey7,122 6,832 New Jersey8,106 7,108 
Massachusetts6,370 6,105 
ConnecticutConnecticut5,465 5,242 Connecticut7,142 5,432 
All other(k)
47,041 43,899 
All otherAll other51,399 46,896 
Total retained loansTotal 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 SeptemberJune 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 ninesix months ended SeptemberJune 30, 20222023 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 SeptemberJune 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. ThesePrior-period amounts have been excluded fromrevised to conform with the geographic regions presented based uponcurrent 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.


141151


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 grantsgranted concessions to borrowers who arewere experiencing financial difficulty arewere 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 ofFor the three and six months ended June 30, 2022, new TDRs was $80were $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 periodsperiod 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,
202220212022202120222022
Number of loans approved for a trial modificationNumber of loans approved for a trial modification820 1,448 3,258 4,014 Number of loans approved for a trial modification1,165 2,691 
Number of loans permanently modifiedNumber of loans permanently modified784 917 3,615 3,817 Number of loans permanently modified1,289 2,831 
Concession granted:(a)
Concession granted:(a)
Concession granted:(a)
Interest rate reductionInterest rate reduction47 %75 %54 %74 %Interest rate reduction45 %56 %
Term or payment extensionTerm or payment extension61 64 65 49 Term or payment extension54 67 
Principal and/or interest deferredPrincipal and/or interest deferred9 19 11 24 Principal and/or interest deferred10 12 
Principal forgivenessPrincipal forgiveness 1 Principal forgiveness
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 periodsperiod 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,
20222021202220212022
Weighted-average interest rate of loans with interest rate reductions – before TDRWeighted-average interest rate of loans with interest rate reductions – before TDR5.39 %4.65 %4.65 %4.55 %Weighted-average interest rate of loans with interest rate reductions – before TDR4.76 %4.55 %
Weighted-average interest rate of loans with interest rate reductions – after TDRWeighted-average interest rate of loans with interest rate reductions – after TDR3.52 2.89 3.34 2.91 Weighted-average interest rate of loans with interest rate reductions – after TDR3.36 3.31 
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDRWeighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR20232223Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR2223
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDRWeighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR37373837Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR3839
Charge-offs recognized upon permanent modificationCharge-offs recognized upon permanent modification$ $— $1 $— Charge-offs recognized upon permanent modification$$
Principal deferredPrincipal deferred4 15 23 Principal deferred11 
Principal forgivenPrincipal forgiven — 1 Principal forgiven— 
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 periodsperiod presented, and for which the payment default occurred within one year of the modification. The dollar amountsamount presented representrepresents 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 SeptemberJune 30, 20222023 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, whichDelinquency 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, 2022June 30, 2023

(in millions, except ratios)

(in millions, except ratios)
Term loans by origination yearRevolving loans
(in millions, except ratios)
Term loans by origination yearRevolving loans
20222021202020192018Prior to 2018Within the revolving periodConverted to term loansTotal20232022202120202019Prior to 2019Within the revolving periodConverted to term loansTotal
Loan delinquencyLoan delinquencyLoan delinquency
CurrentCurrent$17,530 $22,540 (b)$12,815(b)$4,687$1,892$862$2,291$66$62,683Current$17,763 $18,062 $16,287 $8,801 $2,765 $1,041 $2,544 $113 $67,376 
30–119 days past due30–119 days past due164 502 8663342115388830–119 days past due121 234 216 79 48 28 14 15 755 
120 or more days past due120 or more days past due  5315261120 or more days past due 1 25 13  1 2 12 54 
Total retained loansTotal retained loans$17,694 $23,042 $12,954$4,750$1,926$884$2,311$71$63,632Total 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-offsGross charge-offs$106 $168 $82 $28 $16 $30 $ $1 $431 
December 31, 2021December 31, 2022

(in millions, except ratios)

(in millions, except ratios)
Term loans by origination yearRevolving loans
(in millions, except ratios)
Term loans by origination yearRevolving loans
20212020201920182017Prior to 2017Within the revolving periodConverted to term loansTotal20222021202020192018Prior to 2018Within the revolving periodConverted to term loansTotal
Loan delinquencyLoan delinquencyLoan delinquency
CurrentCurrent$35,323(c)$18,324(c)$7,443$3,671$1,800$666$2,242$120$69,589Current$22,187 $20,212 $11,401 $3,991 $1,467 $578 $2,342 $118 $62,296 
30–119 days past due30–119 days past due192720885331211261,12330–119 days past due263 308 100 68 33 17 12 10 811 
120 or more days past due120 or more days past due3515749120 or more days past due— 53 24 — — 85 
Total retained loansTotal retained loans$35,515$19,079$7,531$3,724$1,832$688$2,259$133$70,761Total 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 SeptemberJune 30, 20222023 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.

144153


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, 2022December 31, 2021June 30, 2023December 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)
CaliforniaCalifornia$9,904 $11,163 California$10,353 $9,689 
TexasTexas7,233 7,859 Texas8,070 7,216 
FloridaFlorida4,792 4,901 Florida5,344 4,847 
New YorkNew York4,401 5,848 New York4,634 4,345 
IllinoisIllinois2,762 2,930 Illinois3,062 2,839 
New JerseyNew Jersey2,219 2,355 New Jersey2,462 2,219 
PennsylvaniaPennsylvania1,843 2,004 Pennsylvania1,873 1,822 
GeorgiaGeorgia1,698 1,748 Georgia1,858 1,708 
Louisiana1,615 1,801 
ArizonaArizona1,590 1,887 Arizona1,700 1,551 
OhioOhio1,672 1,603 
All otherAll other25,575 28,265 All other27,157 25,353 
Total retained loansTotal retained loans$63,632 $70,761 Total retained loans$68,185 $63,192 
(a)At SeptemberJune 30, 20222023 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 SeptemberJune 30, 20222023 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 ninesix months ended SeptemberJune 30, 20222023 and 20212022.
(d)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at SeptemberJune 30, 2022.2023.




















Loan modifications
CertainThe Firm grants certain modifications of auto and other loan modifications are considered to be TDRs as they provide various concessionsloans to borrowers who are experiencing financial difficulty. Loans with short-term ordifficulty, 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. Additionalthere were no additional commitments to lend to borrowers whose loans have been modified in TDRs as of SeptemberFDMs.
For the three and six months ended June 30, 2022, auto and December 31, 2021other TDRs were not material.


145154


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 20212022 Form 10-K for further information on the credit card loan portfolio, including credit quality indicators.
The following tables provide information on delinquency which isand 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)
TotalWithin the revolving periodConverted to term loansTotal
Loan delinquencyLoan delinquencyLoan 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 accruing30–89 days past due and still accruing1,078 59 1,137 30–89 days past due and still accruing1,580 68 1,648 
90 or more days past due and still accruing90 or more days past due and still accruing936 28 964 90 or more days past due and still accruing1,570 35 1,605 
Total retained loansTotal retained loans$169,668 $794 $170,462 Total retained loans$190,490 $858 $191,348 
Loan delinquency ratiosLoan delinquency ratiosLoan delinquency ratios
% of 30+ days past due to total retained loans% of 30+ days past due to total retained loans1.19 %10.96 %1.23 %% of 30+ days past due to total retained loans1.65 %12.00 %1.70 %
% of 90+ days past due to total retained loans% of 90+ days past due to total retained loans0.55 3.53 0.57 % of 90+ days past due to total retained loans0.82 4.08 0.84 
Gross charge-offsGross 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)
TotalWithin the revolving periodConverted to term loansTotal
Loan delinquencyLoan delinquencyLoan 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 accruing30–89 days past due and still accruing770 59 829 30–89 days past due and still accruing1,356 64 1,420 
90 or more days past due and still accruing90 or more days past due and still accruing741 27 768 90 or more days past due and still accruing1,230 36 1,266 
Total retained loansTotal retained loans$153,309 $987 $154,296 Total retained loans$184,379 $796 $185,175 
Loan delinquency ratiosLoan delinquency ratiosLoan delinquency ratios
% of 30+ days past due to total retained loans% of 30+ days past due to total retained loans0.99 %8.71 %1.04 %% of 30+ days past due to total retained loans1.40 %12.56 %1.45 %
% of 90+ days past due to total retained loans% of 90+ days past due to total retained loans0.48 2.74 0.50 % of 90+ days past due to total retained loans0.67 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, 2022December 31, 2021(in millions, except ratios)June 30, 2023December 31, 2022
Geographic region(a)
Geographic region(a)
Geographic region(a)
CaliforniaCalifornia$25,811 $23,030 California$29,258 $28,154 
TexasTexas17,672 15,879 Texas19,992 19,171 
New YorkNew York14,085 12,652 New York15,511 15,046 
FloridaFlorida11,702 10,412 Florida13,439 12,905 
IllinoisIllinois9,402 8,530 Illinois10,457 10,089 
New JerseyNew Jersey7,078 6,367 New Jersey7,902 7,643 
OhioOhio5,325 4,923 Ohio5,898 5,792 
ColoradoColorado5,124 4,573 Colorado5,840 5,493 
PennsylvaniaPennsylvania5,033 4,708 Pennsylvania5,549 5,517 
Michigan4,112 3,773 
ArizonaArizona4,647 4,487 
All otherAll other65,118 59,449 All other72,855 70,878 
Total retained loansTotal retained loans$170,462 $154,296 Total retained loans$191,348 $185,175 
Percentage of portfolio based on carrying value with estimated refreshed FICO scoresPercentage of portfolio based on carrying value with estimated refreshed FICO scoresPercentage of portfolio based on carrying value with estimated refreshed FICO scores
Equal to or greater than 660Equal to or greater than 66087.2 %88.5 %Equal to or greater than 66086.4 %86.8 %
Less than 660Less than 66012.6 11.3 Less than 66013.4 13.0 
No FICO availableNo FICO available0.2 0.2 No FICO available0.2 0.2 
(a)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at SeptemberJune 30, 2022.2023.


146155


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 mostcertain 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 modificationscard 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’sFirm's standard charge-off policy. In most cases, the Firm does not reinstate the borrower’sborrower'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 loansFinancial 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 loansFinancial 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,
2022202120222021
Balance of new TDRs(a)
$111$82$274$315
Weighted-average interest rate of loans – before TDR20.26 %17.75 %19.19 %17.79 %
Weighted-average interest rate of loans – after TDR3.81 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 yearstatus of FDMs during the modification. The amounts presented representthree and six months ended June 30, 2023.

(in millions)
Amortized cost basis
Three months ended June 30,Six months ended June 30,
20232023
Current and less than 30 days past due and still accruing$128 $264 
30-89 days past due and still accruing32 38 
90 or more days past due and still accruing21 24 
Total$181 $326 
There were $6 million FDMs that re-defaulted during both the balancethree 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’sFirm'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,
20222022
Balance of new TDRs(a)
$81 $163 
Weighted-average interest rate of loans – before TDR18.94 %18.47 %
Weighted-average interest rate of loans – after TDR4.62 4.75 
Balance of loans that redefaulted within one year of modification(b)
$$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.

147156


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 20212022 Form 10-K for further information on these risk ratings.
The following tables provide information on internalInternal 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 estateCommercial and industrial
Other(b)
Total retained loansSecured by real estateCommercial 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 ratingsLoans by risk ratingsLoans by risk ratings
Investment-gradeInvestment-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:
NoncriticizedNoncriticized23,599 22,495 77,270 62,039 56,962 52,440 157,831 136,974 Noncriticized36,387 23,272 84,133 81,393 77,360 57,888 197,880 162,553 
Criticized performingCriticized performing3,156 3,645 8,976 6,900 1,071 770 13,203 11,315 Criticized performing4,314 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-gradeTotal noninvestment-grade26,990 26,466 87,190 69,908 58,736 53,969 172,916 150,343 Total noninvestment-grade41,219 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 loans78.43 %77.73 %47.31 %52.02 %80.78 %81.76 %71.00 %73.17 %% of investment-grade to total retained loans74.54 %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 loans2.71 3.34 5.99 5.40 0.58 0.52 2.53 2.39 % of total criticized to total retained loans2.99 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 loans0.19 0.27 0.57 0.67 0.23 0.26 0.32 0.37 % of criticized nonaccrual to total retained loans0.32 0.19 0.85 0.61 0.19 0.23 0.39 0.33 
(a)At SeptemberAs of June 30, 20222023 included $33.9 billion of Secured by real estate loans, $3.9 billion of Commercial and December 31, 2021 nonaccrualindustrial loans, excluded $28 million and $127 million, respectively,$18.2 billion of PPPOther loans 90 or more days past due and guaranteed byassociated 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 20212022 Form 10-K for more information on SPEs.
Secured by real estateSecured by real estate

(in millions)

(in millions)
September 30, 2022
(in millions)
June 30, 2023
Term loans by origination yearRevolving loansTerm loans by origination yearRevolving loans
20222021202020192018Prior to 2018Within the revolving periodConverted to term loansTotal20232022202120202019Prior to 2019Within the revolving periodConverted to term loansTotal
Loans by risk ratingsLoans by risk ratingsLoans by risk ratings
Investment-gradeInvestment-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-gradeNoninvestment-grade4,862 5,415 3,278 3,763 2,560 6,280 830 2 26,990 Noninvestment-grade2,606 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 $161,871 
Gross charge-offsGross charge-offs$ $25 $21 $ $ $47 $ $ $93 
    
Secured by real estateSecured by real estate

(in millions)

(in millions)
December 31, 2021
(in millions)
December 31, 2022
Term loans by origination yearRevolving loansTerm loans by origination yearRevolving loans
20212020201920182017Prior to 2017Within the revolving periodConverted to term loansTotal20222021202020192018Prior to 2018Within the revolving periodConverted to term loansTotal
Loans by risk ratingsLoans by risk ratingsLoans by risk ratings
Investment-gradeInvestment-grade$23,346 $16,030 $17,265 $8,103 $7,325 $19,066 $1,226 $$92,369 Investment-grade$24,134 $22,407 $14,773 $14,666 $5,277 $17,289 $1,006 $— $99,552 
Noninvestment-gradeNoninvestment-grade5,364 3,826 4,564 3,806 2,834 5,613 458 26,466 Noninvestment-grade6,072 5,602 3,032 3,498 2,395 5,659 920 27,180 
Total retained loansTotal retained loans$28,710 $19,856 $21,829 $11,909 $10,159 $24,679 $1,684 $$118,835 Total retained loans$30,206 $28,009 $17,805 $18,164 $7,672 $22,948 $1,926 $$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 industrialCommercial and industrial

(in millions)

(in millions)
September 30, 2022
(in millions)
June 30, 2023
Term loans by origination yearRevolving loansTerm loans by origination yearRevolving loans
20222021202020192018Prior to 2018Within the revolving periodConverted to term loansTotal20232022202120202019Prior to 2019Within the revolving periodConverted to term loansTotal
Loans by risk ratingsLoans by risk ratingsLoans by risk ratings
Investment-gradeInvestment-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-gradeNoninvestment-grade19,371 13,289 3,820 3,097 803 975 45,755 80 87,190 Noninvestment-grade10,510 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 $170,055 
Gross charge-offsGross charge-offs$ $6 $20 $1 $2 $6 $149 $4 $188 
Commercial and industrialCommercial and industrial

(in millions)

(in millions)
December 31, 2021
(in millions)
December 31, 2022
Term loans by origination yearRevolving loansTerm loans by origination yearRevolving loans
20212020201920182017Prior to 2017Within the revolving periodConverted to term loansTotal20222021202020192018Prior to 2018Within the revolving periodConverted to term loansTotal
Loans by risk ratingsLoans by risk ratingsLoans by risk ratings
Investment-gradeInvestment-grade$21,342 $6,268 $3,609 $1,269 $1,108 $819 $41,367 $$75,783 (b)Investment-grade$21,072 $8,338 $3,045 $1,995 $748 $989 $40,087 $$76,275 

Noninvestment-gradeNoninvestment-grade19,314 7,112 4,559 2,177 930 430 35,312 74 69,908 Noninvestment-grade24,088 12,444 3,459 2,506 525 1,014 47,267 82 91,385 
Total retained loansTotal 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, $1882023 included $231 million, $764 million, $444 million, $346 million, $92 million, and $270 million of the $215 million total PPPretained 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 SBAprior 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 inrevolving 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 yearRevolving loansTerm loans by origination yearRevolving loans
20222021202020192018Prior to 2018Within the revolving periodConverted to term loansTotal20232022202120202019Prior to 2019Within the revolving periodConverted to term loansTotal
Loans by risk ratingsLoans by risk ratingsLoans by risk ratings
Investment-gradeInvestment-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-gradeNoninvestment-grade12,693 7,571 2,229 698 521 504 34,503 17 58,736 Noninvestment-grade6,821 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 $336,219 
Gross charge-offsGross charge-offs$ $ $5 $5 $ $ $3 $ $13 
Other(a)
Other(a)

(in millions)

(in millions)
December 31, 2021
(in millions)
December 31, 2022
Term loans by origination yearRevolving loansTerm loans by origination yearRevolving loans
20212020201920182017Prior to 2017Within the revolving periodConverted to term loansTotal20222021202020192018Prior to 2018Within the revolving periodConverted to term loansTotal
Loans by risk ratingsLoans by risk ratingsLoans by risk ratings
Investment-gradeInvestment-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-gradeNoninvestment-grade16,905 2,399 1,455 935 218 467 31,585 53,969 Noninvestment-grade16,829 7,096 1,821 699 451 475 32,240 82 59,693 
Total retained loansTotal 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 20212022 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.

149158


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)
MultifamilyOther commercialTotal retained loans secured by real estate
(in millions, except ratios)
MultifamilyOther commercialTotal 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 estateRetained 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 
CriticizedCriticized1,560 1,671 1,831 2,300 3,391 3,971 Criticized2,141 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 estate1.99 %2.26 %3.93 %5.11 %2.71 %3.34 %% of criticized to total retained loans secured by real estate2.13 %2.42 %4.40 %4.19 %2.99 %3.08 %
Criticized nonaccrualCriticized 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 estate0.07 %0.12 %0.39 %0.52 %0.19 %0.27 %% of criticized nonaccrual loans to total retained loans secured by real estate0.06 %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 estateCommercial
 and industrial
OtherTotal
 retained loans
Secured by real estateCommercial
 and industrial
OtherTotal
 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 loansTotal 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 delinquencyLoan delinquencyLoan delinquency
Current and less than 30 days past due and still accruingCurrent 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 accruing30–89 days past due and still accruing144 331 1,529 1,193 1,395 1,590 3,068 3,114 30–89 days past due and still accruing215 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)
 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 loansTotal 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 estateCommercial
and industrial
OtherTotal
retained loans

(in millions)
Secured by real estateCommercial
and industrial
OtherTotal
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 loansNonaccrual loansNonaccrual loans
With an allowanceWith 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 ninesix months ended SeptemberJune 30, 20222023 and 2021.2022.
159


Loan modifications
CertainThe 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, 2023Six months ended June 30, 2023
Amortized cost basis% of loan modifications to total retained Commercial and industrial loansFinancial effect of loan modificationAmortized cost basis% of loan modifications to total retained Commercial and industrial loansFinancial 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 delay5  %Provided payment deferrals with delayed amounts primarily re-amortized over the remaining tenor5  %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, 2023Six months ended June 30, 2023
Amortized cost basis% of loan modifications to total retained Other loansFinancial effect of loan modificationAmortized cost basis% of loan modifications to total retained Other loansFinancial 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 extension38 0.01 %Extended loans by a weighted-average of 3 months54 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 industrialOther
(in millions)Three months ended June 30, 2023Six months ended June 30, 2023Three months ended June 30, 2023Six 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 accruing3 3   
Criticized nonaccrual67 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, 2023Six months ended June 30, 2023
Loan modification
Term extension3 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 concessionslend to borrowers who are experiencing financial difficulty. Loans with short-term or other insignificant modifications that are not considered concessions are not TDRs. New TDRsdifficulty 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 forand $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 SeptemberJune 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 $587new 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 SeptemberJune 30, 2022 and 2021 reflected extendingextended maturity dates and covenant waivers primarily in the Commercial and Industrial loan class in 2022 as well as principal deferrals largely inclass. For the Other loan class in 2021. New TDRs for the ninethree and six months ended SeptemberJune 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 waswere not material to the Firm forFirm.
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.
150161


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 20212022 Form 10-K for a detailed discussion of the allowance for credit losses and the related accounting policies.

151162


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 20212022 Form 10-K and Note 910 of this Form 10-Q for further information on the allowance for credit losses on investment securities.
2022202120232022
Nine months ended September 30,
(in millions)
Consumer, excluding
credit card
Credit cardWholesaleTotalConsumer, excluding credit cardCredit cardWholesaleTotal
Six months ended June 30,
(in millions)
Six months ended June 30,
(in millions)
Consumer, excluding
credit card
Credit cardWholesaleTotalConsumer, excluding credit cardCredit cardWholesaleTotal
Allowance for loan lossesAllowance for loan lossesAllowance 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)NANA
Gross charge-offsGross charge-offs590 2,294 232 3,116 452 2,957 187 3,596 Gross charge-offs501 2,432 294 3,227 384 1,505 123 2,012 
Gross recoveries collectedGross 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 lossesProvision for loan losses202 1,828 1,733 3,763 (1,778)(3,917)(2,162)(7,857)Provision for loan losses751 2,546 2,067 5,364 237 1,236 1,125 2,598 
OtherOther1  1 2 (2)— (4)(6)Other  25 25 — — 
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 commitmentsAllowance for lending-related commitmentsAllowance 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 commitmentsProvision for lending-related commitments(36) 325 289 (45)— (61)(106)Provision for lending-related commitments52  (253)(201)(2)— (37)(39)
OtherOther  1 1 — — Other1  4 5 (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 securitiesTotal allowance for investment securitiesNA61 NA73 Total allowance for investment securities104 NA47 
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 methodologyAllowance for loan losses by impairment methodologyAllowance 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-basedPortfolio-based2,521 10,182 5,516 18,219 2,445 11,267 4,269 17,981 Portfolio-based3,019 11,600 7,854 22,473 2,605 10,173 5,089 17,867 
Total allowance for loan lossesTotal 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 methodologyLoans by impairment methodologyLoans 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-basedPortfolio-based289,185 169,668 593,926 1,052,779 283,844 142,083 530,456 956,383 Portfolio-based392,756 191,348 665,558 1,249,662 289,948 164,667 581,857 1,036,472 
Total retained loansTotal 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 $1,052,390 
Collateral-dependent loansCollateral-dependent loansCollateral-dependent loans
Net charge-offsNet charge-offs$(29)$ $13 $(16)$26 $— $$35 Net charge-offs$5 $ $77 $82 $(15)$— $$(7)
Loans measured at fair value of collateral less cost to sellLoans measured at fair value of collateral less cost to sell3,718  537 4,255 4,460 — 364 4,824 Loans measured at fair value of collateral less cost to sell3,388  762 4,150 3,935 — 607 4,542 
Allowance for lending-related commitments by impairment methodologyAllowance for lending-related commitments by impairment methodologyAllowance for lending-related commitments by impairment methodology
Asset-specificAsset-specific$ $— $84 $84 $— $— $129 $129 Asset-specific$ $— $65 $65 $— $— $78 $78 
Portfolio-basedPortfolio-based77 — 2,390 2,467 142 — 2,034 2,176 Portfolio-based129 — 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 $2,222 
Lending-related commitments by impairment methodologyLending-related commitments by impairment methodologyLending-related commitments by impairment methodology
Asset-specificAsset-specific$ $ $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 commitmentsTotal 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 SeptemberJune 30, 2022 excludes2023, 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 dependentcollateral-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 includesnonaccrual 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 beTDRs 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 SeptemberJune 30, 20222023 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.




152163


Discussion of changes in the allowance
The allowance for credit losses as of SeptemberJune 30, 20222023 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 increasedadditional weight placed on the adverse scenarios beginning in the first quarter of 2022, due to the effects associated with higher inflation, changes2023, 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 loanthe 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 byalso reflected a reduction related toof $587 million as a decrease in uncertainty associated with borrower behavior as the effectsresult 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, 2022Assumptions at June 30, 2023
4Q222Q234Q234Q232Q244Q24
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, 2021Assumptions at December 31, 2022
2Q224Q222Q232Q234Q232Q24
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, theThe year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentpercentage 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 2021Chase’s 2022 Form 10-K for a description of the policies, methodologies and judgments used to determine the Firm’s allowancesallowance 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 64-7270-79 and Note 1112 for additional information on the consumer and wholesale credit portfolios.
Refer to Critical Accounting Estimates Used by the Firm on pages 85-8791-93 for further information on the allowance for credit losses and related management judgments.


153164


Note 1314 – Variable interest entities
Refer to Note 1 and Note 14 of JPMorgan Chase’s 20212022 Form 10-K for a further description of JPMorgan Chase’sthe Firm's accounting policies regarding consolidation ofand 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 BusinessTransaction TypeActivityForm 10-Q page references
CCBCredit card securitization trustsSecuritization of originated credit card receivables154165
Mortgage securitization trustsServicing and securitization of both originated and purchased residential mortgages154-156165-167
CIBMortgage and other securitization trustsSecuritization of both originated and purchased residential and commercial mortgages, and other consumer loans154-156165-167
Multi-seller conduitsAssisting clients in accessing the financial markets in a cost-efficient manner and structuring transactions to meet investor needs156167
Municipal bond vehiclesFinancing of municipal bond investments156167
The Firm also invests in and provides financing and other services to VIEs sponsored by third parties. Refer to pages 157-159168-169 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.
154165


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 VIEsAssets
held in consolidated securitization VIEs
Assets held in nonconsolidated securitization VIEs with continuing involvementTrading assets Investment securitiesOther financial assetsTotal interests held by JPMorgan
Chase
June 30, 2023 (in millions)June 30, 2023 (in millions)Total assets held by securitization VIEsAssets
held in consolidated securitization VIEs
Assets held in nonconsolidated securitization VIEs with continuing involvementTrading assets Investment securitiesOther financial assetsTotal 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 ARMsPrime/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 
SubprimeSubprime10,063  4,589 6   6 Subprime9,300  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 
TotalTotal$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 VIEsAssets
held in consolidated securitization VIEs
Assets held in nonconsolidated securitization VIEs with continuing involvementTrading assets Investment securitiesOther financial assetsTotal interests held by
JPMorgan
Chase
December 31, 2022 (in millions)December 31, 2022 (in millions)Total assets held by securitization VIEsAssets
held in consolidated securitization VIEs
Assets held in nonconsolidated securitization VIEs with continuing involvementTrading assets Investment securitiesOther financial assetsTotal 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 ARMsPrime/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 
SubprimeSubprime10,966 27 10,115 — — Subprime9,709 — 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 
TotalTotal$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 $252which were $92 million and $159$34 million respectively, at SeptemberJune 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 Septemberboth June 30, 20222023 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 millionDecember 31, 2022, respectively, and $131 million of noninvestment-grade retained interests were not material at Septemberboth 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 Septemberboth June 30, 20222023 and December 31, 2021,2022, respectively.
155166


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)2022202120222021(in millions)2023202220232022
Transfers of securities to VIEsTransfers of securities to VIEsTransfers of securities to VIEs
U.S. GSEs and government agenciesU.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 ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, respectively and retained interests in any such Firm-sponsored VIEs as of SeptemberJune 30, 20222023 and December 31, 20212022 were not material.
The following table presents information on the Firm's interests in nonconsolidated re-securitization VIEs.
Nonconsolidated
re-securitization VIEs
Nonconsolidated
re-securitization VIEs
(in millions)(in millions)September 30, 2022December 31, 2021(in millions)June 30, 2023December 31, 2022
U.S. GSEs and government agenciesU.S. GSEs and government agenciesU.S. GSEs and government agencies
Interest in VIEsInterest in VIEs$2,138 $1,947 Interest in VIEs$3,412 $2,580 
As of SeptemberJune 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 SeptemberJune 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 SeptemberJune 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.
156167


Consolidated VIE assets and liabilities
The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of SeptemberJune 30, 2022,2023 and December 31, 2021.2022.
AssetsLiabilitiesAssetsLiabilities
September 30, 2022 (in millions)Trading assetsLoans
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 assetsLoans
Other(c)
 Total
assets(d)
Beneficial interests in
VIE assets(e)
Other(f)
Total
liabilities
VIE program typeVIE program typeVIE program type
Firm-sponsored credit card trustsFirm-sponsored credit card trusts$$9,186$93$9,279$1,996$3$1,999Firm-sponsored credit card trusts$$9,168$82$9,250$999$2$1,001
Firm-administered multi-seller conduitsFirm-administered multi-seller conduits20,80313420,9378,500408,540Firm-administered multi-seller conduits128,59816928,76816,3833116,414
Municipal bond vehiclesMunicipal bond vehicles1,99171,9981,43651,441Municipal bond vehicles2,313212,3342,133102,143
Mortgage securitization entities(a)
Mortgage securitization entities(a)
7981281014769216
Mortgage securitization entities(a)
7331074313260192
OtherOther810(b)3161,126157Other54626(b)250930144
TotalTotal$1,991$31,597$562$34,150$12,079$274$12,353Total$2,368$39,125$532$42,025$19,647$247$19,894
AssetsLiabilitiesAssetsLiabilities
December 31, 2021 (in millions)Trading assetsLoans
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 assetsLoans
Other(c)
 Total
assets(d)
Beneficial interests in
VIE assets(e)
Other(f)
Total
liabilities
VIE program typeVIE program typeVIE program type
Firm-sponsored credit card trustsFirm-sponsored credit card trusts$$11,108$102$11,210$2,397$1$2,398Firm-sponsored credit card trusts$$9,699$100$9,799$1,999$2$2,001
Firm-administered multi-seller conduitsFirm-administered multi-seller conduits119,8837119,9556,198416,239Firm-administered multi-seller conduits22,81917022,9899,236399,275
Municipal bond vehiclesMunicipal bond vehicles2,00922,0111,9761,976Municipal bond vehicles2,08972,0961,232101,242
Mortgage securitization entities(a)
Mortgage securitization entities(a)
9553298717985264
Mortgage securitization entities(a)
7811079114367210
OtherOther1,078(b)2831,361118Other621,112(b)2631,437161
TotalTotal$2,010$33,024$490$35,524$10,750$245$10,995Total$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 SeptemberJune 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 SeptemberJune 30, 20222023, 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 20212022 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.
157168


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 SeptemberJune 30, 20222023 and December 31, 20212022 was $6.2$5.9 billion and $6.8$5.8 billion, respectively. The fair value of assets held by such VIEs at Septemberboth June 30, 20222023 and December 31, 20212022 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 ninesix months ended SeptemberJune 30, 20222023 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,
20222021202220212023202220232022
(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 securitizedPrincipal 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 collectedServicing fees collected12  39 — 56  121 — Servicing fees collected6 1 20 — 12 1 44 — 
Cash flows received on interestsCash flows received on interests131 71 121 92 413 196 477 215 Cash flows received on interests86 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.
158169


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)2022202120222021(in millions)2023202220232022
Carrying value of loans soldCarrying 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 cashProceeds received from loan sales as cash2 70 15 110 Proceeds received from loan sales as cash33 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)
$(25)$— $(25)$
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 SeptemberJune 30, 20222023 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 ownedReal estate owned9 Real estate owned9 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 SeptemberJune 30, 2022,2023, and December 31, 2021.2022.
Net liquidation losses/(recoveries)Net liquidation losses/(recoveries)
Securitized assets90 days past dueThree months ended September 30,Nine months ended September 30,Securitized assets90 days past dueThree 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
2022202120222021(in millions)June 30, 2023December 31, 2022June 30, 2023December 31, 20222023202220232022
Securitized loansSecuritized loansSecuritized loans
Residential mortgage:Residential mortgage:Residential mortgage:
Prime / Alt-A & option ARMsPrime / 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)
SubprimeSubprime4,589 10,115 613 1,609 (1)— (4)18 Subprime1,353 1,743 141 212 2 (3)4 (3)
Commercial and otherCommercial and other119,387 93,698 950 1,456 11 244 22 265 Commercial and other127,826 127,037 1,231 948  19 11 
Total loans securitizedTotal 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)
159170


Note 1415 – Goodwill and Mortgage servicing rights
Refer to Note 15 of JPMorgan Chase’s 20212022 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 BankingConsumer & Community Banking$32,120 $31,474 Consumer & Community Banking$32,116 $32,121 
Corporate & Investment BankCorporate & Investment Bank7,909 7,906 Corporate & Investment Bank8,253 8,008 
Commercial BankingCommercial Banking2,985 2,986 Commercial Banking2,985 2,985 
Asset & Wealth ManagementAsset & Wealth Management7,847 7,222 Asset & Wealth Management8,344 7,902 
CorporateCorporate600 727 Corporate682 646 
Total goodwillTotal 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)2022202120222021(in millions)2023202220232022
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 ninesix months ended SeptemberJune 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)PrimarilyPredominantly 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 20212022 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 SeptemberJune 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 SeptemberJune 30, 2022,2023, or December 31, 2021,2022, nor was goodwill written off due to impairment during the ninesix months ended SeptemberJune 30, 20222023 or 2021.2022.
160171


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 20212022 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 ninesix months ended SeptemberJune 30, 20222023 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)2022202120222021(in millions, except where otherwise noted)2023202220232022
Fair value at beginning of periodFair 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 MSRsOriginations of MSRs140 429 736 1,252 Originations of MSRs78 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)(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 flowsChanges 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 ratesDiscount 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 66 
Total changes in valuation due to other inputs and assumptionsTotal changes in valuation due to other inputs and assumptions39 (144)105 (211)Total changes in valuation due to other inputs and assumptions(8)3 66 
Total changes in valuation due to inputs and assumptionsTotal changes in valuation due to inputs and assumptions504 (11)2,117 258 Total changes in valuation due to inputs and assumptions275 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 incomeContractual service fees, late fees and other ancillary fees included in income391 334 1,156 932 Contractual service fees, late fees and other ancillary fees included in income388 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 backedmortgage-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.
161172


The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the three and ninesix months ended SeptemberJune 30, 20222023 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)2022202120222021(in millions)2023202220232022
CCB mortgage fees and related incomeCCB mortgage fees and related incomeCCB mortgage fees and related income
Production revenueProduction 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 revenueLoan servicing revenue400 328 1,203 892 Loan servicing revenue402 435 802 803 
Changes in MSR asset fair value due to collection/realization of expected cash flowsChanges 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 revenueTotal operating revenue166 127 501 322 Total operating revenue147 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)3 66 
Changes in derivative fair value and otherChanges 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 managementTotal risk management54 (145)191 (363)Total risk management25 28 13 137 
Total net mortgage servicing revenueTotal net mortgage servicing revenue220 (18)692 (41)Total net mortgage servicing revenue172 227 320 472 
Total CCB mortgage fees and related incomeTotal CCB mortgage fees and related income313 596 1,146 1,847 Total CCB mortgage fees and related income274 377 497 833 
All otherAll other1 6 All other4 2 
Mortgage fees and related incomeMortgage fees and related income$314 $600 $1,152 $1,855 Mortgage fees and related income$278 $378 $499 $838 
(a)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.
(b)Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices).
Changes in fair value based on variations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In the following table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change.
The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at SeptemberJune 30, 2022,2023, and December 31, 2021,2022, and outlines hypothetical sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.
(in millions, except rates)(in millions, except rates)Sep 30,
2022
Dec 31,
2021
(in millions, except rates)Jun 30,
2023
Dec 31,
2022
Weighted-average prepayment speed assumption (constant prepayment rate)Weighted-average prepayment speed assumption (constant prepayment rate)6.27 %9.90 %Weighted-average prepayment speed assumption (constant prepayment rate)6.27 %6.12 %
Impact on fair value of 10% adverse changeImpact on fair value of 10% adverse change$(187)$(210)Impact on fair value of 10% adverse change$(186)$(183)
Impact on fair value of 20% adverse changeImpact on fair value of 20% adverse change(363)(404)Impact on fair value of 20% adverse change(361)(356)
Weighted-average option adjusted spread(a)
Weighted-average option adjusted spread(a)
5.47 %6.44 %
Weighted-average option adjusted spread(a)
5.77 %5.77 %
Impact on fair value of a 100 basis point adverse changeImpact on fair value of a 100 basis point adverse change$(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 changeImpact 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.


162173


Note 1516 – Deposits
Refer to Note 17 of JPMorgan Chase’s 20212022 Form 10-K for further information on deposits.
At SeptemberAs of June 30, 20222023 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. officesU.S. officesU.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. officesTotal deposits in U.S. offices1,992,304 2,071,457 Total deposits in U.S. offices1,968,671 1,921,248 
Non-U.S. officesNon-U.S. officesNon-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. officesTotal deposits in non-U.S. offices416,311 390,846 Total deposits in non-U.S. offices430,291 418,931 
Total depositsTotal 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, 2023December 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 withRepresents 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
2024145,737 83,015 228,752 
20251,213 194 1,407 
2026309 71 380 
2027160 25 185 
202895 1,087 1,182 
After 5 years533 214 747 
Total$148,047 $84,606 $232,653 
Note 1617 – Leases
Refer to Note 18 of JPMorgan Chase’s 20212022 Form 10-K for a further discussion on leases.
Firm as lessee
At SeptemberJune 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 tocarrying values of the Firm’s operating leases:leases were as follows:
(in millions)(in millions)September 30, 2022December 31, 2021(in millions)June 30, 2023December 31, 2022
Right-of-use assetsRight-of-use assets$7,905 $7,888 Right-of-use assets$8,399 (a)$7,782 
Lease liabilitiesLease liabilities8,234 8,328 Lease liabilities8,756 (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 SeptemberJune 30, 2023 and 2022 and 2021$935 million and $1.5 billion$976 million for both the ninesix months ended SeptemberJune 30, 20222023 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)
2022202120222021
(in millions)
2023202220232022
Operating lease incomeOperating lease income$870 $1,190 $2,863 $3,792 Operating lease income$716 $945 $1,471 $1,993 
Depreciation expenseDepreciation expense620 785 1,998 2,595 Depreciation expense457 668 876 1,379 


163174


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, 2023December 31, 2022
Under 1 year1-5 yearsAfter 5 yearsTotalTotal
Parent company
Senior debt:Fixed rate$6,709 $84,418 $96,845 $187,972 $194,515 
Variable rate367 7,226 2,200 9,793 11,565 
Interest rates(f)
2.29 %2.82 %3.53 %3.15 %3.06 %
Subordinated debt:Fixed rate$ $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)$93 
Variable rate7,000 4,000  11,000 11,000 
Interest rates(f)
4.64 %4.29 %6.07 %4.43 %4.32 %
Purchase Money Note(a):
Fixed rate$ $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 $15,383 
Variable rate17,426 21,968 5,451 44,845 41,506 
Interest rates(f)
3.95 %4.98%1.52 %1.88 %2.02 %
Subordinated debt:Fixed rate$ $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 20212022 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 SeptemberJune 30, 20222023 and December 31, 2021,2022, and the quarterly dividend declarations for the three and ninesix months ended SeptemberJune 30, 20222023 and 2021.2022.
Shares
Carrying value
 (in millions)
Contractual rate in effect at September 30, 2022Earliest 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, 2022December 31, 2021September 30, 2022December 31, 2021Issue dateThree months ended September 30,Nine months ended September 30,June 30, 2023December 31, 2022June 30, 2023December 31, 2022Issue dateThree months ended June 30,Six months ended June 30,
2021Contractual rate in effect at September 30, 2022Earliest redemption date
Floating annualized rate(a)
2022Contractual rate in effect at June 30, 2023
Earliest redemption date(b)
Floating annualized rate(c)
Fixed-rate:Fixed-rate:Fixed-rate:
Series AA — $ $— 6/4/2015 %9/1/2020NA$—$—$—$305.00
Series BB —  — 7/29/2015 9/1/2020NA307.50
Series DDSeries DD169,625 169,625 1,696 1,696 9/21/20185.750 12/1/2023NA143.75143.75431.25431.25Series DD169,625 169,625 $1,696 $1,696 9/21/20185.750 %12/1/2023NA$143.75 $143.75 $287.50$287.50
Series EESeries EE185,000 185,000 1,850 1,850 1/24/20196.000 3/1/2024NA150.00150.00450.00450.00Series EE185,000 185,000 1,850 1,850 1/24/20196.000 3/1/2024NA150.00 150.00 300.00300.00
Series GGSeries GG90,000 90,000 900 900 11/7/20194.750 12/1/2024NA118.75118.75356.25356.25Series GG90,000 90,000 900 900 11/7/20194.750 12/1/2024NA118.75 118.75 237.50237.50
Series JJSeries JJ150,000 150,000 1,500 1,500 3/17/20214.550 6/1/2026NA113.75113.75341.25207.28(b)Series JJ150,000 150,000 1,500 1,500 3/17/20214.550 6/1/2026NA113.75 113.75 227.50227.50
Series LLSeries LL185,000 185,000 1,850 1,850 5/20/20214.625 6/1/2026NA115.63129.76346.89129.76(b)Series LL185,000 185,000 1,850 1,850 5/20/20214.625 6/1/2026NA115.63 115.63 231.26231.26
Series MMSeries MM200,000 200,000 2,000 2,000 7/29/20214.200 9/1/2026NA105.00315.00(c)Series MM200,000 200,000 2,000 2,000 7/29/20214.200 9/1/2026NA105.00 105.00 210.00210.00
Fixed-to-floating-rate:Fixed-to-floating-rate:Fixed-to-floating-rate:
Series ISeries I293,375 293,375 $2,934 $2,934 4/23/2008LIBOR + 3.47%4/30/2018LIBOR + 3.47%$163.87$90.96$375.03$276.42Series I — $ $— 4/23/2008 %4/30/2018SOFR + 3.47%$ $119.03 $—$211.16
Series QSeries Q150,000 150,000 1,500 1,500 4/23/20135.150 5/1/2023LIBOR + 3.25128.75128.75386.25386.25Series Q150,000 150,000 1,500 1,500 4/23/2013LIBOR + 3.255/1/2023SOFR + 3.25218.48 128.75 347.23257.50(d)
Series RSeries R150,000 150,000 1,500 1,500 7/29/20136.000 8/1/2023LIBOR + 3.30150.00150.00450.00450.00Series R150,000 150,000 1,500 1,500 7/29/20136.000 8/1/2023SOFR + 3.30150.00 150.00 300.00300.00
Series SSeries S200,000 200,000 2,000 2,000 1/22/20146.750 2/1/2024LIBOR + 3.78168.75168.75506.25506.25Series S200,000 200,000 2,000 2,000 1/22/20146.750 2/1/2024SOFR + 3.78168.75 168.75 337.50337.50
Series USeries U100,000 100,000 1,000 1,000 3/10/20146.125 4/30/2024LIBOR + 3.33153.13153.13459.38459.38Series U100,000 100,000 1,000 1,000 3/10/20146.125 4/30/2024SOFR + 3.33153.13 153.13 306.25306.25
Series VSeries V250,000 250,000 2,500 2,500 6/9/2014LIBOR + 3.32%7/1/2019LIBOR + 3.32146.1588.55340.91263.54Series V —  — 6/9/2014 7/1/2019SOFR + 3.32 108.36 194.76
Series XSeries X160,000 160,000 1,600 1,600 9/23/20146.100 10/1/2024LIBOR + 3.33152.50152.50457.50457.50Series X160,000 160,000 1,600 1,600 9/23/20146.100 10/1/2024SOFR + 3.33152.50 152.50 305.00305.00
Series ZSeries Z 200,000  2,000 4/21/2015 5/1/2020LIBOR + 3.8099.23300.97Series Z —  — 4/21/2015 5/1/2020SOFR + 3.80 — 
Series CCSeries CC125,750 125,750 1,258 1,258 10/20/20174.625 11/1/2022LIBOR + 2.58115.63115.63346.88346.88Series CC125,750 125,750 1,258 1,258 10/20/2017LIBOR + 2.5811/1/2022SOFR + 2.58201.36 115.63 384.15231.25(e)
Series FFSeries FF225,000 225,000 2,250 2,250 7/31/20195.000 8/1/2024SOFR + 3.38125.00125.00375.00375.00Series FF225,000 225,000 2,250 2,250 7/31/20195.000 8/1/2024SOFR + 3.38125.00 125.00 250.00250.00
Series HHSeries HH300,000 300,000 3,000 3,000 1/23/20204.600 2/1/2025SOFR + 3.125115.00115.00345.00345.00Series HH300,000 300,000 3,000 3,000 1/23/20204.600 2/1/2025SOFR + 3.125115.00 115.00 230.00230.00
Series IISeries II150,000 150,000 1,500 1,500 2/24/20204.000 4/1/2025SOFR + 2.745100.00100.00300.00300.00Series II150,000 150,000 1,500 1,500 2/24/20204.000 4/1/2025SOFR + 2.745100.00 100.00 200.00200.00
Series KKSeries KK200,000 200,000 2,000 2,000 5/12/20213.650 6/1/2026CMT + 2.8591.25110.51273.75110.51(b)Series KK200,000 200,000 2,000 2,000 5/12/20213.650 6/1/2026CMT + 2.8591.25 91.25 182.50182.50
Total preferred stockTotal preferred stock3,283,750 3,483,750 $32,838 $34,838 Total preferred stock2,740,375 2,740,375 $27,404 $27,404 
(a)FloatingRepresented 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 basedrate for Series Q preferred stock became floating and payable quarterly starting on May 1, 2023; prior to which the numberdividend 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 for0.26% per annum) plus the period. Dividends were declared quarterly thereafter at the contractual rate.spread of 3.25%.
(c)(e)No dividends were declared fromThe 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 SeptemberJune 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.
164177


Note 1820 – Earnings per share
Refer to Note 23 of JPMorgan Chase’s 20212022 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 ninesix months ended SeptemberJune 30, 20222023 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,
20222021202220212023202220232022
Basic earnings per shareBasic earnings per shareBasic earnings per share
Net incomeNet income$9,737 $11,687 $26,668 $37,935 Net income$14,472 $8,649 $27,094 $16,931 
Less: Preferred stock dividendsLess: Preferred stock dividends432 402 1,239 1,174 Less: Preferred stock dividends373 410 729 807 
Net income applicable to common equityNet income applicable to common equity9,305 11,285 25,429 36,761 Net income applicable to common equity14,099 8,239 26,365 16,124 
Less: Dividends and undistributed earnings allocated to participating securitiesLess: Dividends and undistributed earnings allocated to participating securities50 56 134 185 Less: Dividends and undistributed earnings allocated to participating securities88 44 161 85 
Net income applicable to common stockholdersNet 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 shareNet 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 shareDiluted earnings per shareDiluted earnings per share
Net income applicable to common stockholdersNet 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 RSUs4.2 5.2 4.1 5.3 
Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARsAdd: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs4.5 4.1 4.4 4.1 
Total weighted-average diluted shares outstandingTotal weighted-average diluted shares outstanding2,965.4 3,005.1 2,970.9 3,041.7 Total weighted-average diluted shares outstanding2,948.3 2,966.3 2,960.5 2,973.7 
Net income per shareNet income per share$3.12 $3.74 $8.51 $12.02 Net income per share$4.75 $2.76 $8.85 $5.39 

165178


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 hedgesFair value hedgesCash flow hedgesDefined benefit
pension and
OPEB plans
DVA on fair value option elected liabilitiesAccumulated 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 hedgesFair value hedgesCash flow hedgesDefined benefit pension and
OPEB plans
DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
Balance at July 1, 2021$4,515 $(659)$(163)$725 $(1,055)$(793)$2,570 
Net change(434)(187)(450)(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 hedgesFair value hedgesCash flow hedgesDefined benefit
pension and
OPEB plans
DVA on fair value option elected liabilitiesAccumulated 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 hedgesFair value hedgesCash flow hedgesDefined benefit pension and
OPEB plans
DVA on fair value option elected liabilitiesAccumulated 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)$963 
As of or for the three months ended
June 30, 2023
(in millions)
Unrealized
gains/(losses)
on investment securities
Translation adjustments, net of hedgesFair value hedgesCash flow hedgesDefined benefit
pension and
OPEB plans
DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
Balance at April 1, 2023$(6,912)$(1,348)$(54)$(4,858)$(1,506)$260 $(14,418)
Net change757 70 11 (497)(6)(207)128 
Balance at June 30, 2023$(6,155)(a)$(1,278)$(43)$(5,355)$(1,512)$53 $(14,290)
As of or for the three months ended
June 30, 2022
(in millions)
Unrealized
gains/(losses)
on investment securities
Translation adjustments, net of hedgesFair value hedgesCash flow hedgesDefined benefit pension and
OPEB plans
DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
Balance at April 1, 2022$(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 $(14,369)
As of or for the six months ended
June 30, 2023
(in millions)
Unrealized
gains/(losses)
on investment securities
Translation adjustments, net of hedgesFair value hedgesCash flow hedgesDefined benefit
pension and
OPEB plans
DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
Balance at January 1, 2023$(9,124)$(1,545)$(33)$(5,656)$(1,451)$468 $(17,341)
Net change2,969 267 (10)301 (61)(415)3,051 
Balance at June 30, 2023$(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 hedgesFair value hedgesCash flow hedgesDefined benefit pension and
OPEB plans
DVA on fair value option elected liabilitiesAccumulated 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 SeptemberJune 30, 2022 and 20212023 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 20212022 Form 10-K for further information.
















166179


The following table presents the pre-tax and after-tax changes in the components of OCI.
2022202120232022
Three months ended September 30,
(in millions)
Pre-taxTax effectAfter-taxPre-taxTax effectAfter-tax
Three months ended June 30,
(in millions)
Three months ended June 30,
(in millions)
Pre-taxTax effectAfter-taxPre-taxTax effectAfter-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 periodNet 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 changeNet change(2,826)681 (2,145)(570)136 (434)Net change995 (238)757 (5,303)1,272 (4,031)
Translation adjustments(b):
Translation adjustments(b):
Translation adjustments(b):
TranslationTranslation(3,017)164 (2,853)(1,030)63 (967)Translation126 10 136 (3,550)193 (3,357)
HedgesHedges2,992 (720)2,272 1,028 (248)780 Hedges(88)22 (66)3,524 (846)2,678 
Net changeNet change(25)(556)(581)(2)(185)(187)Net change38 32 70 (26)(653)(679)
Fair value hedges, net change(c):
Fair value hedges, net change(c):
50 (12)38 12 (3)
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 periodNet 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)(18)
Net changeNet 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)(2)
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 $(4,802)
2022202120232022
Nine month ended September 30,
(in millions)
Pre-taxTax effectAfter-taxPre-taxTax effectAfter-tax
Six months ended June 30,
(in millions)
Six months ended June 30,
(in millions)
Pre-taxTax effectAfter-taxPre-taxTax effectAfter-tax
Unrealized gains/(losses) on investment securities:Unrealized gains/(losses) on investment securities:Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the periodNet unrealized gains/(losses) arising during the period$(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 changeNet change(17,937)4,308 (13,629)(5,395)1,296 (4,099)Net change3,905 (936)2,969 (15,111)3,627 (11,484)
Translation adjustments(b):
Translation adjustments(b):
Translation adjustments(b):
TranslationTranslation(6,908)381 (6,527)(1,950)92 (1,858)Translation1,099 (31)1,068 (3,891)217 (3,674)
HedgesHedges6,854 (1,649)5,205 1,958 (473)1,485 Hedges(1,051)250 (801)3,862 (929)2,933 
Net changeNet change(54)(1,268)(1,322)(381)(373)Net change48 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 periodNet 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 changeNet change(7,680)1,843 (5,837)(2,774)666 (2,108)Net change396 (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 lossTotal 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.Theincome. 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 reclassifiedwere not material for the ninethree months ended SeptemberJune 30, 20222023 and for the three and ninesix months ended SeptemberJune 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.




167180


Note 2022 – Restricted cash and other restricted
assets
Refer to Note 26 of JPMorgan Chase’s 20212022 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 customersSegregated 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 purposesCash reserves at non-U.S. central banks and held for other general purposes7.3 5.1 Cash reserves at non-U.S. central banks and held for other general purposes8.6 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 SeptemberJune 30, 20222023 and December 31, 2021,2022, respectively.
Also, as of SeptemberJune 30, 20222023 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.


168181


Note 2123 – Regulatory capital
Refer to Note 27 of JPMorgan Chase’s 20212022 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 OCCOffice 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 SeptemberJune 30, 20222023 and December 31, 2021.2022.
Standardized capital ratio requirementsAdvanced
capital ratio requirements
Well-capitalized ratiosStandardized capital ratio requirementsAdvanced
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 ratiosRisk-based capital ratiosRisk-based capital ratios
CET1 capitalCET1 capital11.2 %7.0 %10.5 %7.0 %NA6.5 %CET1 capital12.5 %7.0 %11.0 %7.0 %NA6.5 %
Tier 1 capitalTier 1 capital12.7 8.5 12.0 8.5 6.0 %8.0 Tier 1 capital14.0 8.5 12.5 8.5 6.0 %8.0 
Total capitalTotal capital14.7 10.5 14.0 10.5 10.0 10.0 Total capital16.0 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 SeptemberJune 30, 20222023 and December 31, 2021.2022.
Capital ratio requirements(a)
Well-capitalized ratios
BHCIDI
BHC(b)
IDI
Leverage-based capital ratios
Tier 1 leverage4.0 %4.0 %NA5.0 %
SLR5.0 6.0 NA6.0 
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 SeptemberJune 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, fromwhich impacted Tier 2 capital, adjusted average assets, total leverage exposure and RWA, as applicable.
Refer to Note 27 of JPMorgan Chase’s 20212022 Form 10-K for further information on CECL capital transition provisions.
169182


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 SeptemberJune 30, 20222023 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 StandardizedBasel 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 StandardizedBasel 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 capitalCET1 capital$209,661 $264,466 $209,661 $264,466 CET1 capital$235,827 $279,233 $235,827 $279,233 
Tier 1 capitalTier 1 capital236,363 264,470 236,363 264,470 Tier 1 capital262,585 279,236 262,585 279,236 
Total capitalTotal capital268,076 282,192 256,157 269,897 Total capital295,281 298,582 281,953 (b)285,500 
Risk-weighted assetsRisk-weighted assets1,678,498 1,614,628 1,609,968 1,471,019 Risk-weighted assets1,706,927 1,642,804 1,694,714 (b)1,541,700 
CET1 capital ratioCET1 capital ratio12.5 %16.4 %13.0 %18.0 %CET1 capital ratio13.8 %17.0 %13.9 %18.1 %
Tier 1 capital ratioTier 1 capital ratio14.1 16.4 14.7 18.0 Tier 1 capital ratio15.4 17.0 15.5 18.1 
Total capital ratioTotal capital ratio16.0 17.5 15.9 18.3 Total capital ratio17.3 18.2 16.6 18.5 
December 31, 2021
(in millions, except ratios)
Basel III StandardizedBasel 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 StandardizedBasel 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 capitalCET1 capital$213,942 $266,907 $213,942 $266,907 CET1 capital$218,934 $269,668 $218,934 $269,668 
Tier 1 capitalTier 1 capital246,162 266,910 246,162 266,910 Tier 1 capital245,631 269,672 245,631 269,672 
Total capitalTotal capital274,900 281,826 265,796 272,299 Total capital277,769 288,433 264,583 275,255 
Risk-weighted assetsRisk-weighted assets1,638,900 1,582,280 1,547,920 1,392,847 Risk-weighted assets1,653,538 1,597,072 1,609,773 1,475,602 
CET1 capital ratioCET1 capital ratio13.1 %16.9 %13.8 %19.2 %CET1 capital ratio13.2 %16.9 %13.6 %18.3 %
Tier 1 capital ratioTier 1 capital ratio15.0 16.9 15.9 19.2 Tier 1 capital ratio14.9 16.9 15.3 18.3 
Total capital ratioTotal capital ratio16.8 17.8 17.2 19.5 Total capital ratio16.8 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, 2022December 31, 2021Three months ended
(in millions, except ratios)
June 30, 2023December 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 ratioTier 1 leverage ratio6.2 %7.9 %6.5 %8.0 %Tier 1 leverage ratio6.9 %8.4 %6.6 %8.3 %
Total leverage exposureTotal 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 
SLRSLR5.3 %6.6 %5.4 %6.5 %SLR5.8 %7.0 %5.6 %6.9 %
(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.


170183


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 20212022 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 SeptemberJune 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.
171184


Off–balance sheet lending-related financial instruments, guarantees and other commitmentsOff–balance sheet lending-related financial instruments, guarantees and other commitmentsOff–balance sheet lending-related financial instruments, guarantees and other commitments
Contractual amount
Carrying value(h)
Contractual amount
Carrying value(i)
September 30, 2022Dec 31,
2021
Sep 30,
2022
Dec 31,
2021
June 30, 2023Dec 31,
2022
Jun 30,
2023
Dec 31,
2022
By remaining maturity
(in millions)
By remaining maturity
(in millions)
Expires in 1 year or lessExpires after
1 year through
3 years
Expires after
3 years through
5 years
Expires after 5 yearsTotalTotalBy remaining maturity
(in millions)
Expires in 1 year or lessExpires after
1 year through
3 years
Expires after
3 years through
5 years
Expires after 5 yearsTotalTotal
Lending-relatedLending-relatedLending-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 otherAuto and other10,687   1,320 12,007 12,338  Auto and other14,203 324  2,286 16,813 12,231 236 (j)— 
Total consumer, excluding credit cardTotal consumer, excluding credit card17,233 3,133 6,447 8,055 34,868 45,334 91 102 Total consumer, excluding credit card23,367 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 
Other letters of credit(d)
3,022 233 106  3,361 4,134 23 
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-relatedTotal 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 commitmentsOther guarantees and commitmentsOther 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 guaranteesDerivatives qualifying as guarantees4,244 310 12,737 41,074 58,365 55,730 1,006 475 Derivatives qualifying as guarantees3,861 228 11,959 40,852 56,900 59,180 181 649 
Unsettled resale and securities borrowed agreementsUnsettled resale and securities borrowed agreements137,055 445   137,500 103,681 

(9)Unsettled resale and securities borrowed agreements108,556 585   109,141 116,975 

 (2)
Unsettled repurchase and securities loaned agreementsUnsettled repurchase and securities loaned agreements88,455 490   88,945 74,263 (10)— Unsettled repurchase and securities loaned agreements92,811 547   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 liabilityMortgage repurchase liabilityNANA54 61 Mortgage repurchase liabilityNANA76 76 
Loans sold with recourseLoans sold with recourseNA826 827 28 19 Loans sold with recourseNA768 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 SeptemberAs 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 SeptemberAs 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 SeptemberAs 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 SeptemberAs 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 representsincludes 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 tofair 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.














172185


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 SeptemberJune 30, 2022,2023, and December 31, 2021.2022.
Standby letters of credit, other financial guarantees and other letters of credit
September 30, 2022December 31, 2021June 30, 2023December 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 amountTotal 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 commitmentsAllowance for lending-related commitments$89 $13 $123 $Allowance for lending-related commitments$146 $23 $82 $
Guarantee liabilityGuarantee liability367  353 — Guarantee liability371  326 — 
Total carrying valueTotal carrying value$456 $13 $476 $Total carrying value$517 $23 $408 $
Commitments with collateralCommitments 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 20212022 Form 10-K for further information on these derivatives.
The following table summarizes the derivatives qualifying as guarantees as of SeptemberJune 30, 2022,2023, and December 31, 2021.2022.
(in millions)(in millions)September 30, 2022December 31, 2021(in millions)June 30, 2023December 31, 2022
Notional amountsNotional amountsNotional amounts
Derivative guaranteesDerivative guarantees$58,365 $55,730 Derivative guarantees$56,900 $59,180 
Stable value contracts with contractually limited exposureStable value contracts with contractually limited exposure31,567 29,778 Stable value contracts with contractually limited exposure31,715 31,820 
Maximum exposure of stable value contracts with contractually limited exposureMaximum exposure of stable value contracts with contractually limited exposure2,943 2,882 Maximum exposure of stable value contracts with contractually limited exposure1,442 2,063 
Fair valueFair valueFair value
Derivative payablesDerivative payables1,006 475 Derivative payables181 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 Servicesthe 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 Servicesthe Firm is unable to collect the amount from the merchant, Merchant Servicesthe Firm will bear the loss for the amount credited or refunded to the cardholder. Merchant ServicesThe Firm mitigates this risk by withholding future settlements, retaining cash reserve accounts or obtaining other collateral. In addition, Merchant Servicesthe Firm recognizes a valuation allowance that covers the payment or performance risk to the Firm related to charge-backs.
173186


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 20212022 Form 10-K for additional information regarding litigation.
Sponsored member repo program
The Firm acts as a sponsoring member to clear eligible overnight and term resale and repurchase agreements through the Government Securities Division of the Fixed Income Clearing Corporation (“FICC”) on behalf of clients that become sponsored members under the FICC’s rules. The Firm also guarantees to the FICC the prompt and full payment and performance of its sponsored member clients’ respective obligations under the FICC’s rules. The Firm minimizes its liability under these guarantees by obtaining a security interest in the cash or high-quality securities collateral that the clients place with the clearing house therefore the Firm expects the risk of loss to be remote. The Firm’s maximum possible exposure, without taking into consideration the associated collateral, is included in the Exchange & clearing house guarantees and commitments line on page 172.185. Refer to Note 11 of JPMorgan Chase’s 20212022 Form 10-K for additional information on credit risk mitigation practices on resale agreements and the types of collateral pledged under repurchase agreements.
Guarantees of subsidiaries
The Parent Company has guaranteed certain long-term debt and structured notes of its subsidiaries, including JPMorgan Chase Financial Company LLC (“JPMFC”), a 100%-owned finance subsidiary. All securities issued by JPMFC are fully and unconditionally guaranteed by the Parent Company and no other subsidiary of the Parent Company guarantees these securities. These guarantees, which rank on a paritypari passu with the Firm’s unsecured and unsubordinated indebtedness, are not included in the table on page 172185 of this Note. Refer to Note 20 of JPMorgan Chase’s 20212022 Form 10-K for additional information.
Note 2325 – Pledged assets and collateral
Refer to Note 29 of JPMorgan Chase’s 20212022 Form 10-K for a discussion of the Firm’s pledged assets and collateral.
Pledged assets
The Firm pledges financial assets that it owns to maintain potential borrowing capacity at discount windows with Federal Reserve banks, various other central banks and FHLBs. Additionally, the Firm pledges assets for other purposes, including to collateralize repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits. Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are parenthetically identified on the Consolidated balance sheets as assets pledged.
The following table presents the Firm’s pledged assets.
(in billions)(in billions)September 30, 2022December 31, 2021(in billions)June 30, 2023December 31, 2022
Assets that may be sold or repledged or otherwise used by secured partiesAssets that may be sold or repledged or otherwise used by secured parties$121.7 $126.3 Assets that may be sold or repledged or otherwise used by secured parties$161.3 $110.8 
Assets that may not be sold or repledged or otherwise used by secured parties(a)Assets that may not be sold or repledged or otherwise used by secured parties(a)105.8 112.0 Assets that may not be sold or repledged or otherwise used by secured parties(a)288.4 114.8 
Assets pledged at Federal Reserve banks and FHLBs(b)Assets pledged at Federal Reserve banks and FHLBs(b)539.7 476.4 Assets pledged at Federal Reserve banks and FHLBs(b)621.8 567.6 
Total pledged assetsTotal pledged assets$767.2 $714.7 Total pledged assets$1,071.5 $793.2 
(a)As of June 30, 2023, included $120.0 billion of assets pledged to the FDIC as part of the shared-loss agreements associated with the First Republic acquisition. Refer to Note 28 for additional information.
(b)As of June 30, 2023, included $23.7 billion of assets pledged to the FHLB associated with the First Republic acquisition.
Total pledged assets do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities. Refer to Note 1314 for additional information on assets and liabilities of consolidated VIEs. Refer to Note 1011 for additional information on the Firm’s securities financing activities. Refer to Note 20 of JPMorgan Chase’s 20212022 Form 10-K for additional information on the Firm’s long-term debt.
Collateral
The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use. This collateral is generally obtained under resale and other securities financing agreements, prime brokerage-related held-for-investment customer receivables and derivative contracts. Collateral is generally used under repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits.
The following table presents the fair value of collateral accepted.
(in billions)(in billions)September 30, 2022December 31, 2021(in billions)June 30, 2023December 31, 2022
Collateral permitted to be sold or repledged, delivered, or otherwise usedCollateral permitted to be sold or repledged, delivered, or otherwise used$1,340.7 $1,471.3 Collateral permitted to be sold or repledged, delivered, or otherwise used$1,303.7 $1,346.9 
Collateral sold, repledged, delivered or otherwise usedCollateral sold, repledged, delivered or otherwise used1,040.1 1,111.0 Collateral sold, repledged, delivered or otherwise used986.3 1,019.4 
174187


Note 2426 – Litigation
Contingencies
As of SeptemberJune 30, 2022,2023, the Firm and its subsidiaries and affiliates are defendants or respondents in numerous legal proceedings, including private, civil litigations, government investigations or regulatory enforcement matters. The litigations range from individual actions involving a single plaintiff to class action lawsuits with potentially millions of class members. Investigations and regulatory enforcement matters involve both formal and informal proceedings, by both governmental agencies and self-regulatory organizations. These legal proceedings are at varying stages of adjudication, arbitration or investigation, and involve each of the Firm’s lines of business and several geographies and a wide variety of claims (including common law tort and contract claims and statutory antitrust, securities and consumer protection claims), some of which present novel legal theories.
The Firm believes the estimate of the aggregate range of reasonably possible losses, in excess of reserves established, for its legal proceedings is from $0 to approximately $1.2$1.3 billion at SeptemberJune 30, 2022.2023. This estimated aggregate range of reasonably possible losses was based upon information available as of that date for those proceedings in which the Firm believes that an estimate of reasonably possible loss can be made. For certain matters, the Firm does not believe that such an estimate can be made, as of that date. The Firm’s estimate of the aggregate range of reasonably possible losses involves significant judgment, given:
the number, variety and varying stages of the proceedings, including the fact that many are in preliminary stages,
the existence in many such proceedings of multiple defendants, including the Firm, whose share of liability (if any) has yet to be determined,
the numerous yet-unresolved issues in many of the proceedings, including issues regarding class certification and the scope of many of the claims, and
the attendant uncertainty of the various potential outcomes of such proceedings, including where the Firm has made assumptions concerning future rulings by the court or other adjudicator, or about the behavior or incentives of adverse parties or regulatory authorities, and those assumptions prove to be incorrect.
In addition, the outcome of a particular proceeding may be a result which the Firm did not take into account in its estimate because the Firm had deemed the likelihood of that outcome to be remote. Accordingly, the Firm’s estimate of the aggregate range of reasonably possible losses will change from time to time, and actual losses may vary significantly.
Set forth below are descriptions of the Firm’s material legal proceedings.
1MDB Litigation. J.P. Morgan (Suisse) SA was named as a defendant in a civil litigation filed in May 2021 in Malaysia by 1Malaysia Development Berhad (“1MDB”), a Malaysian state-owned and controlled investment fund. J.P. Morgan (Suisse) SA was served in August 2022. The claim alleges “dishonest assistance” against J.P. Morgan (Suisse) SA in relation to payments of $300 million and $500 million, from 2009 and 2010, respectively, received from 1MDB and paid into an account at J.P. Morgan Suisse (SA) held by 1MDB PetroSaudi Limited, a joint venture company between 1MDB and PetroSaudi Holdings (Cayman) Limited. In September 2022, the Firm filed an application challenging the validity of service and the Malaysian court’sCourt’s jurisdiction to hear the claim. In April 2023, 1MDB discontinued its claim against J.P. Morgan (Suisse) SA, but requested permission of the Court to refile in the future, which the Court took under consideration.
Amrapali. India’s Enforcement Directorate (“ED”) is investigating J.P. Morgan India Private Limited in connection with investments made in 2010 and 2012 by two offshore funds formerly managed by JPMorgan Chase entities into residential housing projects developed by the Amrapali Group (“Amrapali”). In 2017, numerous creditors filed civil claims against Amrapali, including petitions brought by home buyers relating to delays in delivering or failure to deliver residential units. The home buyers’ petitions have been overseen by the Supreme Court of India and are ongoing. In August 2021, the ED issued an order fining J.P. Morgan India Private Limited approximately $31.5 million. The Firm is appealing the order and the fine. Relatedly, in July 2019, the Supreme Court of India issued an order making preliminary findings that Amrapali and other parties, including unspecified JPMorgan Chase entities and the offshore funds that had invested in the projects, violated certain currency control and money laundering provisions, and ordering the ED to conduct a further inquiry under India’s Prevention of Money Laundering Act (“PMLA”) and Foreign Exchange Management Act (“FEMA”). In May 2020, the ED attached approximately $25 million from J.P. Morgan India Private Limited in connection with the criminal PMLA investigation. The Firm is responding to and cooperating with the PMLA investigation.
Federal Republic of Nigeria Litigation. JPMorgan Chase Bank, N.A. operated an escrow and depository account for the Federal Government of Nigeria (“FGN”) and two major international oil companies. The account held approximately $1.1 billion in connection with a dispute among the clients over rights to an oil field. Following the settlement of the dispute, JPMorgan Chase Bank, N.A. paid out the monies in the account in 2011 and 2013 in accordance with directions received from its clients. In November 2017, the Federal Republic of Nigeria (“FRN”) commenced a claim in the English High Court for approximately $875 million in payments made out of the accounts. The FRN alleged that the payments were
175


instructed as part of a complex fraud not involving JPMorgan Chase Bank, N.A., but that JPMorgan Chase Bank, N.A. was or should have been on notice that the payments may be fraudulent. A trial was held between February and April 2022. In June 2022, the Court decided the case in favor of JPMorgan Chase Bank, N.A. and dismissed it in full. The FRN has requested permission to appeal the decision relating solely to the 2013 payment of approximately $75 million.
Foreign Exchange Investigations and Litigation. The Firm previously reported settlements with certain government authorities relating to its foreign exchange (“FX”) sales and trading activities and controls related to those activities. Among those resolutions, in May 2015, the Firm pleaded guilty to a single violation of federal antitrust law. The Department of Labor ("DOL") granted the Firm a five-year exemption of disqualificationexemptions that allowspermit the Firm and its affiliates to continue to rely on the Qualified Professional Asset Manager exemption under the Employee Retirement Income Security Act (“ERISA”) until January 2023. The Firm will need the DOL to approve a further exemption to cover the remainder of
188


through the ten-year disqualification period following the antitrust plea. In October 2022, the DOL published a proposed exemption for the remainder of the disqualification period. This proposal will be open for public comment until December 2022. The only remaining FX-related governmental inquiry is a South Africa Competition Commission matter which is currently pending before the South Africa Competition Tribunal.
With respect to civil litigation matters, in August 2018, the United States District Court for the Southern District of New York granted final approval to the Firm’s settlement of a consolidated class action brought by U.S.-based plaintiffs, which principally alleged violations of federal antitrust laws based on an alleged conspiracy to manipulate foreign exchange rates and also sought damages on behalf of persons who transacted in FX futures and options on futures. CertainAlthough certain members of the settlement class filed requests to the Court to be excluded from the class, and certainan agreement to resolve their claims was reached in December 2022. The District Court denied certification of them filed a complaint against the Firm and other foreign exchange dealers in November 2018. A number of these actions remain pending. Further, a putative class action has been filed against the Firm and other foreign exchange dealers on behalf of certain consumersparties who purchased foreign currencies at allegedly inflated rates. Another putative class action was broughtrates and granted summary judgment against the Firm and other foreign exchange dealers on behalfnamed plaintiffs in March 2023. Those plaintiffs have filed a notice of purported indirect purchasers of FX instruments. In 2020, the Court approved a settlement by the Firm and 11 other defendants of that class action for a total of $10 million.appeal. In addition, some FX-related individual and putative class actions based on similar alleged underlying conduct have been filed outside the U.S., including in the U.K., Israel, the Netherlands, Brazil and Australia. An agreement to resolve one of the UK actions was reached in December 2022. In a putative class action pending beforeJuly 2023, the U.K. Court of Appeal overturned the Competition Appeal Tribunal, proposed class representatives have appealed the tribunal'sTribunal's earlier denial of a request for class certification on an opt-out
basis. In Israel, a settlement in principle has been reached in the putative class action, which remains subject to court approval.
Inquiries Concerning Preservation Requirements. In December 2021 certain of the Firm’s subsidiaries entered into resolutions with the U.S. Securities and Exchange Commission (“SEC”) and the U.S. Commodity Futures Trading Commission (“CFTC”) to resolve their respective civil investigations of compliance with records preservation requirements applicable to broker-dealer firms, swap dealers and futures commission merchants. The SEC and CFTC found that J.P. Morgan Securities LLC did not maintain copies of certain communications required to be maintained under their respective record keeping rules, where such communications were sent or received by employees over electronic messaging channels that had not been approved for employee use by the Firm. The CFTC resolution also included JPMorgan Chase Bank, N.A. and J.P. Morgan Securities plc as swap dealers. The SEC and CFTC also found related supervision failures. Under these resolutions, J.P. Morgan Securities LLC paid a $125 million civil monetary penalty to the SEC, and J.P. Morgan Securities LLC, JPMorgan Chase Bank, N.A. and J.P. Morgan Securities plc paid a total $75 million civil monetary penalty to the CFTC. The Firm continues to respond to requests for information and other material from certain authorities concerning its compliance with records preservation requirements in connection with business communications sent over electronic messaging channels that have not been approved by the Firm. The Firm is cooperating with these inquiries.
In March 2022, a shareholder derivative action was filed in the United States District Court for the Eastern District of New York against the Firm’s Board of Directors asserting breaches of fiduciary duty and violation of federal securities laws based on the Board’s alleged failure to exercise adequate oversight over compliance with records preservation requirements. The complaint seeks damages, restitution, disgorgement and corporate governance reforms. The plaintiff filed an amended complaint in August 2022, which defendants have moved to dismiss.
Interchange Litigation. Groups of merchants and retail associations filed a series of class action complaints alleging that Visa and Mastercard, as well as certain banks, conspired to set the price of credit and debit card interchange fees and enacted related rules in violation of antitrust laws. In 2012, the parties initially settled the cases for a cash payment, a temporary reduction of credit card interchange, and modifications to certain credit card network rules. In 2017, after the approval ofbut that settlement was reversed on appeal the case wasand remanded to the United States District Court for the Eastern District of New York for further proceedings consistent with the appellate decision.York.
The original class action was divided into two separate actions, one seeking primarily monetary relief and the other seeking primarily injunctive relief. In September 2018, the
176


parties to the monetary class action finalized an agreement which amends and supersedes the prior settlement agreement. Pursuant to this settlement, the defendants collectively contributed an additional $900 million to the approximately $5.3 billion previously held in escrow from the original settlement. In December 2019, the amended settlement agreement was approved by the District Court. Certain merchants appealedIn March 2023, the United States Court of Appeals for the Second Circuit affirmed the District Court’s approval order,of the settlement, and those appeals are pending.two merchants have filed petitions for rehearing of the Appellate Court’s approval. Based on the percentage of merchants that opted out of the amended class settlement, $700 million has been returned to the
defendants from the settlement escrow in accordance with the settlement agreement. The injunctive class action continues separately, and in September 2021, the District Court granted plaintiffs’ motion for class certification in part, and denied the motion in part.
In addition,Of the merchants who opted out of the amended damages class settlement, certain merchants have filed individual actions raising similar allegations against Visa and Mastercard, as well as against the Firm and other banks, andbanks. While some of those actions remain pending.pending, the defendants have reached settlements with the merchants who opted out representing approximately 65% of the combined Mastercard-branded and Visa-branded payment card sales volume.
Jeffrey Epstein Litigation. JPMorgan Chase Bank, N.A. was named as a defendant in two lawsuits filed in the United States District Court for the Southern District of New York alleging that JPMorgan Chase Bank, N.A. knowingly facilitated Jeffrey Epstein’s sex trafficking and other unlawful conduct by providing banking services to Epstein until 2013. One case, which was filed in November 2022, was a putative class action filed by an alleged sex-trafficking victim of Epstein, and the other case, which was filed in December 2022, was brought on behalf of the government of the United States Virgin Islands and also alleges certain Virgin Islands statutory claims. In March 2023, the Court granted in part and denied in part JPMorgan Chase Bank, N.A.’s motions to dismiss these complaints, allowing some claims to proceed in both lawsuits. Also in March 2023, JPMorgan Chase Bank, N.A. filed third-party complaints impleading the Firm’s former employee, James Edward Staley, into the two lawsuits, asserting claims for indemnification, contribution, breach of fiduciary duty and violation of the faithless servant doctrine. In May 2023, the Court denied Staley’s motion to dismiss the impleader complaints. In June 2023, the Court granted the putative class’ motion for class certification and granted a preliminary approval of a settlement between the class and JPMorgan Chase Bank, N.A., pursuant to which JPMorgan Chase Bank, N.A. will pay $290 million to a fund for Epstein survivors. The actions involving the government of the United States Virgin Islands and Staley are proceeding.
LIBOR and Other Benchmark Rate Investigations and Litigation. JPMorgan Chase has responded to inquiries from various governmental agencies and entities around the world relating primarily to the British Bankers Association’s (“BBA”) London Interbank Offered Rate (“LIBOR”) for various currencies and the European Banking Federation’s Euro Interbank Offered Rate (“EURIBOR”). The Swiss Competition Commission’s investigation relating to EURIBOR, to which the Firm and one other bank remain subject, continues. In December 2016, the European Commission issued a decision against the Firm and other banks finding an infringement of European antitrust rules relating to EURIBOR. The Firm has filed an appeal of that decision with the European General Court, and that appeal is pending.
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In addition, the Firm has been named as a defendant along with other banks in various individual and putative class actions related to benchmark rates, including U.S. dollar LIBOR. In actions related to U.S. dollar LIBOR during the period that it was administered by the BBA, the Firm has obtained dismissal of certain actions and resolved certain other actions, and others are in various stages of litigation. The United States District Court for the Southern District of New York has granted class certification of antitrust claims related to bonds and interest rate swaps sold directly by the defendants, including the Firm. A consolidated putative class action related to the period that U.S. dollar LIBOR was administered by ICE Benchmark Administration has been dismissed. In addition, a group of individual plaintiffs filed a lawsuit asserting antitrust claims, alleging that the Firm and other defendants were engaged in an unlawful agreement to set U.S. dollar LIBOR and conspired to monopolize the market for LIBOR-based consumer loans and credit cards. Defendants moved to dismiss plaintiffs’ complaint. In December 2021, the court denied plaintiffs’ motions for a preliminary injunction seeking to enjoin defendants from setting U.S. dollar LIBOR and enforcing any financial
instruments that rely on U.S. dollar LIBOR. In September 2022, the Court dismissed plaintiffs' complaint in its entirety, and plaintiffs filed an amended complaint asserting similar antitrust claims, in October 2022.which defendants have moved to dismiss. The Firm’s settlements of putative class actions related to Swiss franc LIBOR, the Singapore Interbank Offered Rate and the Singapore Swap Offer Rate, and the Australian Bank Bill Swap Reference Rate remainreceived final court approval in November 2022, while the settlement related to Swiss franc LIBOR remains subject to court approval.
Metals and U.S. Treasuries Investigations and Litigation and Related Inquiries. The Firm previously reported that it and/or certain of its subsidiaries had entered into resolutions with the U.S. Department of Justice (“DOJ”), the U.S. Commodity Futures Trading Commission (“CFTC”) and the U.S. Securities and Exchange Commission (“SEC”), which, collectively, resolved those agencies’ respective investigations relating to historical trading practices by former employees in the precious metals and U.S. treasuries markets and related conduct from 2008 to 2016.
The Firm entered into a Deferred Prosecution Agreement (“DPA”) with the DOJ in which it agreed to the filing of a criminal information charging JPMorgan Chase & Co. with two counts of wire fraud and agreed, along with JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC, to certain terms and obligations as set forth therein. Under the terms of the DPA, the criminal information will be dismissed after three years, provided that JPMorgan Chase & Co., JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC fully comply with all of their obligations.
Across the three resolutions with the DOJ, CFTC and SEC, JPMorgan Chase & Co., JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC agreed to pay a total monetary amount of approximately $920 million. A portion of the total monetary amount includes victim compensation payments.
Several putative class action complaints have been filed in the United States District Court for the Southern District of New York against the Firm and certain former employees, alleging a precious metals futures and options price manipulation scheme in violation of the Commodity Exchange Act. Some of the complaints also allege unjust enrichment and deceptive acts or practices under the General Business Law of the State of New York. The Court consolidated these putative class actions, and, in July 2022, the Court granted final approval of a settlement among the parties. In addition, several putative class actions were filed in the United States District Courts for the Northern District of Illinois and Southern District of New York against the Firm, alleging manipulation of U.S. Treasury futures and options, and bringing claims under the Commodity Exchange Act. The actions in the Northern District of Illinois were transferred to the Southern District of New York. The Court consolidated these putative class actions, and, in June 2022, the Court granted final approval of a settlement among the parties. In Canada, plaintiffs have commenced
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putative class action proceedings based on similar alleged underlying conduct related to precious metals.
In October 2020, two putative class action complaints were filed under the Securities Exchange Act of 1934 in the United States District Court for the Eastern District of New York against the Firm and certain individual defendants on behalf of shareholders who acquired shares during the putative class period alleging that certain SEC filings of the Firm were materially false or misleading in that they did not disclose certain information relating to the above-referenced investigations. The Court consolidated these putative class actions in January 2021. Plaintiffs filed their second amended complaint in May 2021, which additionally alleged that certain orders in precious metals futures contracts placed by precious metals futures traders during the putative class period were materially false and misleading. Defendants have moved to dismiss.
In May 2022, a shareholder derivative suit purporting to act on behalf of the Firm, was filed in the Supreme Court of the State of New York asserting breach of fiduciary duty and unjust enrichment claims against certain current and former officers and directors of the Firm. The complaint claims the Firm’s Board of Directors wrongfully rejected the shareholder’s demand to commence litigation and seeks damages, disgorgement and corporate governance reforms on the basis of alleged supervisory failures with regard to certain historical spoofing-related conduct that was the subject of the Firm’s resolutions with the DOJ, CFTC and SEC in September 2020, as well as certain fiduciary activities that were separately the subject of a resolution between JPMorgan Chase Bank, N.A. and the OCC in November 2020. Defendants have moved to dismiss.
Securities Lending Antitrust Litigation. JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC, J.P. Morgan Prime, Inc., and J.P. Morgan Strategic Securities Lending Corp. are named as defendants in a putative class action filed in the United States District Court for the Southern District of New York. The complaint asserts violations of federal antitrust law and New York State common law in connection with an alleged conspiracy to prevent the emergence of anonymous exchange trading for securities lending transactions. Defendants’ motion to dismiss the complaint was denied. Plaintiffs have moved to certify a class in this action, which defendants have opposed. The parties have reached an agreement in principle to settle this action, subject to final documentation and court approval.
Shareholder Litigation. Several shareholder putative class actions, as well as shareholder derivative actions purporting to act on behalf of the Firm, have been filed against the Firm, its Board of Directors and certain of its current and former officers.
Certain of these shareholder suits relate to historical trading practices by former employees in the precious metals and U.S. treasuries markets and related conduct which were the subject of the Firm’s resolutions with the DOJ, CFTC and SEC in September 2020, and fiduciary activities that were separately the subject of a resolution between JPMorgan Chase Bank, N.A. and the OCC in November 2020. One of these shareholder derivative suits was filed in the Supreme Court of the State of New York in May 2022, asserting breach of fiduciary duty and unjust enrichment claims relating to the historical trading practices and related conduct and fiduciary activities which
were the subject of the resolutions described above. In December 2022, the court granted defendants’ motion to dismiss this action in full, and in January 2023, the plaintiff filed a notice of appeal, which remains pending. A second shareholder derivative action was filed in the United States District Court for the Eastern District of New York in December 2022 relating to the historical trading practices and related conduct, which asserts breach of fiduciary duty and contribution claims and alleges that the shareholder is excused from making a demand to commence litigation because such a demand would have been futile. Defendants have moved to dismiss the complaint. In addition, a consolidated putative class action is pending in the United States District Court for the Eastern District of New York on behalf of shareholders who acquired shares of JPMorgan Chase common stock during the putative class period, alleging that certain SEC filings of the Firm were materially false or misleading because they did not disclose certain information relating to the historical trading practices and conduct. Defendants have moved to dismiss the amended complaint in this action.
A separate shareholder derivative suit was filed in March 2022 in the United States District Court for the Eastern District of New York asserting breaches of fiduciary duty and violations of federal securities laws based on the alleged failure of the Board of Directors to exercise adequate oversight over the Firm’s compliance with records preservation requirements which were the subject of resolutions between certain of the Firm’s subsidiaries and the SEC and the CFTC. Defendants’ motion to dismiss the amended complaint is pending.
Two shareholder derivative suits were filed in May and June 2023, respectively, in the United States District Court for the Southern District of New York asserting breaches of fiduciary duty and unjust enrichment based on the alleged failure of the Board of Directors and James Dimon to exercise adequate oversight with respect to the Firm’s provision of banking services to Jeffrey Epstein. These actions allege that the shareholders are opposing.excused from making a demand to commence litigation because such a demand would have been futile. These actions were consolidated and defendants have moved to dismiss the amended complaint filed by the plaintiffs.
* * *
In addition to the various legal proceedings discussed above, JPMorgan Chase and its subsidiaries are named as defendants or are otherwise involved in a substantial number of other legal proceedings. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and it intends to defend itself vigorously. Additional legal proceedings may be initiated from time to time in the future.
The Firm has established reserves for several hundred of its currently outstanding legal proceedings. In accordance with
the provisions of U.S. GAAP for contingencies, the Firm accrues for a litigation-related liability when it is probable
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that such a liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upward or downward, as appropriate, based on management’s best judgment after consultation with counsel. The Firm’s legal expense was $47$420 million and $76$73 million for the three months ended SeptemberJune 30, 20222023 and 2021, respectively, and $239 million and $289 million for the nine months ended September 30, 2022, and 2021, respectively. There is no assurance that the Firm’s litigation reserves will not need to be adjusted in the future.
In view of the inherent difficulty of predicting the outcome of legal proceedings, particularly where the claimants seek very large or indeterminate damages, or where the matters present novel legal theories, involve a large number of parties or are in early stages of discovery, the Firm cannot state with confidence what will be the eventual outcomes of the currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences related to those matters. JPMorgan Chase believes, based upon its current knowledge and after consultation with counsel, consideration of the material legal proceedings described above and after taking into account its current litigation reserves and its estimated aggregate range of possible losses, that the other legal proceedings currently pending against it should not have a material adverse effect on the Firm’s consolidated financial condition. The Firm notes, however, that in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will not significantly exceed the reserves it has currently accrued or that a matter will not have material reputational consequences. As a result, the outcome of a particular matter may be material to JPMorgan Chase’s operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of JPMorgan Chase’s income for that period.
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Note 2527 – Business segments
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 Segment results below, and Note 32 of JPMorgan Chase’s 20212022 Form 10-K for a further discussion of JPMorgan Chase’s business segments.
Segment results
The following table provides a summary of the Firm’s segment results as of or for the three and ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, on a managed basis. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm
(and (and each of the reportable business segments) on an FTE basis.
Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. Refer to Note 32 of JPMorgan Chase’s 20212022 Form 10-K for additional information on the Firm’s managed basis.
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 93 of JPMorgan Chase’s 20212022 Form 10-K for additional information on capital allocation.


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 BankingAsset & Wealth Management
20222021202220212022202120222021
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 BankingAsset & Wealth Management
20232022202320222023202220232022
Noninterest revenueNoninterest revenue$3,762$4,138$9,231$9,061$836$988$3,126$3,312Noninterest revenue$3,543$3,850(b)$10,802$8,805(b)$835$904$3,358$3,084
Net interest incomeNet interest income10,5698,3832,6443,3352,2121,5321,413988Net interest income13,6908,7081,7173,1983,1531,7791,5851,222
Total net revenueTotal net revenue14,33112,52111,87512,3963,0482,5204,5394,300Total net revenue17,23312,55812,51912,0033,9882,6834,9434,306
Provision for credit lossesProvision for credit losses529(459)513(638)618(363)(102)(60)Provision for credit losses1,86276138591,09720914544
Noninterest expenseNoninterest expense8,0477,2386,6185,8711,1801,0323,0282,762Noninterest expense8,3137,658(b)6,8946,810(b)1,3001,1563,1632,919
Income/(loss) before income tax expense/(benefit)Income/(loss) before income tax expense/(benefit)5,7555,7424,7447,1631,2501,8511,6131,598Income/(loss) before income tax expense/(benefit)7,0584,1395,5875,1341,5911,3181,6351,343
Income tax expense/(benefit)Income tax expense/(benefit)1,4211,391(b)1,2121,516(b)304442(b)394402(b)Income tax expense/(benefit)1,7521,031(b)1,4951,417(b)383324409339
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 equityAverage equity$50,000$50,000$103,000$83,000$25,000$24,000$17,000$14,000Average equity$54,346$50,000$108,000$103,000$29,505$25,000$16,670$17,000
Total assetsTotal assets500,752493,1691,384,6181,355,752247,485227,670232,303221,702Total assets620,193500,2191,432,0541,403,558305,280242,456247,118235,553
ROEROE33 %34 %13 %26 %14 %22 %28 %33 %ROE38 %24 %15 %14 %16 %15 %29 %23 %
Overhead ratioOverhead ratio5658 56 47 39 41 67 64 Overhead ratio48 61 55 57 33 43 64 68 
As of or for the three months
ended September 30,
(in millions, except ratios)
Corporate
Reconciling Items(a)
Total
202220212022202120222021
As of or for the three months
ended June 30,
(in millions, except ratios)
As of or for the three months
ended June 30,
(in millions, except ratios)
Corporate
Reconciling Items(a)
Total
202320222023202220232022
Noninterest revenueNoninterest revenue$(1,094)$(242)$(663)$(690)$15,198$16,567Noninterest revenue$1,980$(244)$(990)$(812)$19,528$15,587
Net interest incomeNet interest income792(1,054)(112)(104)17,51813,080Net interest income1,738324(104)(103)21,77915,128
Total net revenueTotal net revenue(302)(1,296)(775)(794)32,71629,647Total net revenue3,71880(1,094)(915)41,30730,715
Provision for credit lossesProvision for credit losses(21)(7)1,537(1,527)Provision for credit losses(243)282,8991,101
Noninterest expenseNoninterest expense30516019,17817,063Noninterest expense1,15220620,82218,749
Income/(loss) before income tax expense/(benefit)Income/(loss) before income tax expense/(benefit)(586)(1,449)(775)(794)12,00114,111Income/(loss) before income tax expense/(benefit)2,809(154)(1,094)(915)17,58610,865
Income tax expense/(benefit)Income tax expense/(benefit)(292)(533)(b)(775)(794)2,2642,424Income tax expense/(benefit)16920(1,094)(915)3,1142,216
Net income/(loss)Net income/(loss)$(294)$(916)(b)$$$9,737$11,687Net income/(loss)$2,640$(174)$$$14,472$8,649
Average equityAverage equity$57,944$82,556$$$252,944$253,556Average equity$69,364$52,986$$$277,885$247,986
Total assetsTotal assets1,408,7261,459,283NANA3,773,8843,757,576Total assets1,263,5951,459,528NANA3,868,2403,841,314
ROEROENMNMNMNM15 %18 %ROENMNMNMNM20 %13 %
Overhead ratioOverhead ratioNMNMNMNM59 58 Overhead ratioNMNMNMNM50 61 
(a)Segment managed results reflect revenue on an FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results.
(b)In the first quarter of 2022,2023, the Firm changed its methodology for allocating income taxesallocations 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.




179192


Segment results and reconciliation(a)
Segment results and reconciliation(a)
Segment results and reconciliation(a)
As of or for the nine months
ended September 30,
(in millions, except ratios)
Consumer &
Community Banking
Corporate &
Investment Bank
Commercial BankingAsset & Wealth Management
20222021202220212022202120222021
As of or for the six months
ended June 30,
(in millions, except ratios)
As of or for the six months
ended June 30,
(in millions, except ratios)
Consumer &
Community Banking
Corporate &
Investment Bank
Commercial BankingAsset & Wealth Management
20232022202320222023202220232022
Noninterest revenueNoninterest revenue$11,570$13,452$27,937$30,061$2,607$2,855$9,449$9,623Noninterest revenue$7,166$7,705(b)$22,325$18,809(b)$1,616$1,771$6,691$6,323
Net interest incomeNet interest income27,60424,3469,41410,1545,5224,5413,7112,861Net interest income26,52317,0353,7946,7705,8833,3103,0362,298
Total net revenueTotal net revenue39,17437,79837,35140,2158,1297,39613,16012,484Total net revenue33,68924,74026,11925,5797,4995,0819,7278,621
Provision for credit lossesProvision for credit losses1,968(5,929)1,017(1,048)984(858)96(191)Provision for credit losses3,2641,439965041,514366173198
Noninterest expenseNoninterest expense23,49021,50220,66119,4983,4652,9828,8077,922Noninterest expense16,37815,313(b)14,37714,173(b)2,6082,2856,2545,779
Income/(loss) before income tax expense/(benefit)Income/(loss) before income tax expense/(benefit)13,71622,22515,67321,7653,6805,2724,2574,753Income/(loss) before income tax expense/(benefit)14,0477,98811,64610,9023,3772,4303,3002,644
Income tax expense/(benefit)Income tax expense/(benefit)3,3875,442(b)4,0315,174(b)8901,260(b)1,0261,141(b)Income tax expense/(benefit)3,4981,972(b)3,1332,813(b)822586707632
Net income/(loss)Net income/(loss)$10,329$16,783(b)$11,642$16,591(b)$2,790$4,012(b)$3,231$3,612(b)Net income/(loss)$10,549$6,016$8,513$8,089$2,555$1,844$2,593$2,012
Average equityAverage equity$50,000$50,000$103,000$83,000$25,000$24,000$17,000$14,000Average equity$53,180$50,000$108,000$103,000$29,005$25,000$16,337$17,000
Total assetsTotal assets500,752493,1691,384,6181,355,752247,485227,670232,303221,702Total assets620,193500,2191,432,0541,403,558305,280242,456247,118235,553
ROEROE27 %44 %14 %26 %(b)14 %21 %25 %34 %ROE39 %23 %15 %15 %17 %14 %31 %23 %
Overhead ratioOverhead ratio6057 55 48 43 40 67 63 Overhead ratio49 62 55 55 35 45 64 67 
As of or for the nine months
ended September 30,
(in millions, except ratios)
Corporate
Reconciling Items(a)
Total
202220212022202120222021
Noninterest revenue$(1,683)$(68)$(2,250)$(2,241)$47,630$53,682
Net interest income580(2,870)(313)(322)46,51838,710
Total net revenue(1,103)(2,938)(2,563)(2,563)94,14892,392
Provision for credit losses36584,101(7,968)
Noninterest expense6951,55157,11853,455
Income/(loss) before income tax expense/(benefit)(1,834)(4,547)(2,563)(2,563)32,92946,905
Income tax expense/(benefit)(510)(1,484)(b)(2,563)(2,563)6,2618,970
Net income/(loss)$(1,324)$(3,063)(b)$$$26,668$37,935
Average equity$56,147$79,011$$$251,147$250,011
Total assets1,408,7261,459,283NANA3,773,8843,757,576
ROENMNMNMNM14 %20 %
Overhead ratioNMNMNMNM61 58 

As of or for the six months
ended June 30,
(in millions, except ratios)
Corporate
Reconciling Items(a)
Total
202320222023202220232022
Noninterest revenue$1,225$(589)$(1,857)$(1,587)$37,166$32,432
Net interest income3,478(212)(224)(201)42,49029,000
Total net revenue4,703(801)(2,081)(1,788)79,65661,432
Provision for credit losses127575,1742,564
Noninterest expense1,31239040,92937,940
Income/(loss) before income tax expense/(benefit)3,264(1,248)(2,081)(1,788)33,55320,928
Income tax expense/(benefit)380(218)(2,081)(1,788)6,4593,997
Net income/(loss)$2,884$(1,030)$$$27,094$16,931
Average equity$68,038$55,234$$$274,560$250,234
Total assets1,263,5951,459,528NANA3,868,2403,841,314
ROENMNMNMNM19 %13 %
Overhead ratioNMNMNMNM51 62 
(a)Segment managed results reflect revenue on an FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results.
(b)In the first quarter of 2022,2023, the Firm changed its methodology for allocating income taxesallocations 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.
180193


Note 28 – Business combinations
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 an estimated bargain purchase gain of $2.7 billion recorded in other income. The estimated bargain purchase gain represents the excess of the estimated fair value of the net assets acquired above the purchase price. The First Republic acquisition further advances the Firm's wealth management strategy and is complementary to the Firm's existing franchises.
The Firm has determined that this acquisition constitutes a business combination under U.S. GAAP. Accordingly, the initial recognition of the assets acquired and liabilities assumed were generally measured at their estimated fair values as of May 1, 2023. The determination of those fair values required management to make certain market-based assumptions about expected future cash flows, discount rates and other valuation inputs at the time of the acquisition. The Firm believes that the fair value estimates of the assets acquired and liabilities assumed provide a reasonable basis for determining the estimated bargain purchase gain.
The Firm and the FDIC have not yet completed the settlement process under which the purchase price, and the identification of the assets acquired and liabilities assumed, will be finalized. The finalization of this settlement process may impact the amount of the estimated bargain purchase gain. The purchase and assumption agreement entered into with the FDIC allows for final settlement to occur up to a year after the acquisition date.
In addition, the purchase price and the estimated bargain purchase gain could change pending management's finalization of its acquisition date fair value estimates for certain of the assets acquired and liabilities assumed (such as loans and commitments, intangible assets and leases), which may take place up to one year from the acquisition date, as permitted by U.S. GAAP.
In connection with the First Republic acquisition, the Firm and the FDIC entered into two shared-loss agreements with respect to certain loans and lending-related commitments (the "shared-loss assets"): the Commercial Shared-Loss Agreement ("CSLA") and the Single-Family Shared-Loss Agreement (“SFSLA”). The CSLA covers 80% of credit losses, on a pari-passu basis, over 5 years with a subsequent 3-year recovery period for certain acquired commercial loans and other real estate exposure. The SFSLA covers 80% of credit losses, on a pari-passu basis, for 7 years for certain acquired loans secured by mortgages on real property or shares in cooperative property constituting a primary residence. The indemnification assets which represent the fair value of the CSLA and SFSLA are reflected in the total assets acquired.

As part of the consideration paid, JPMorgan Chase issued a five-year, $50 billion secured note to the FDIC (the "Purchase Money Note"). The Purchase Money Note bears interest at a fixed rate of 3.4% and is secured by certain of the acquired loans. The Purchase Money Note is prepayable upon notice to the FDIC.
The Firm had placed a $5 billion deposit with First Republic Bank on March 16, 2023, as part of $30 billion of deposits provided by a consortium of large U.S. banks. The Firm's $5 billion deposit was effectively settled as part of the acquisition and the associated allowance for credit losses was released upon closing. The Firm subsequently repaid the remaining $25 billion of deposits to the consortium of banks, including accrued interest through the payment date on May 9, 2023.

194


The computation of the purchase price, the estimated fair value of the assets acquired and liabilities assumed as part of the First Republic acquisition and the related estimated bargain purchase gain are presented below.
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 agreements15
Purchase price consideration$67,899
Assets
Securities$30,285
Loans152,335
Core deposit and customer relationship intangibles1,462
Indemnification assets - Shared-loss agreements675
Accounts receivable and other assets(c)
7,551
Total assets acquired$192,308
Liabilities
Deposits$87,507
FHLB advances27,919
Lending-related commitments2,409
Accounts payable and other liabilities(c)
3,006
Deferred tax liabilities856
Total liabilities assumed$121,697
Fair value of net assets acquired$70,611
Estimated gain on acquisition, after income taxes$2,712
(a)Includes $10.6 billion of cash paid to the FDIC at acquisition and $3.7 billion payable to the FDIC, less cash acquired of $680 million.
(b)Includes $447 million of securities financing transactions with First Republic Bank that were effectively settled on the acquisition date.
(c)Other assets include $1.2 billion in tax-oriented investments and $756 million of lease right-of-use assets. Other liabilities include the related tax-oriented investment liabilities of $669 million and lease liabilities of $756 million. Refer to Note 14 and Note 17 for additional information.
The issuance of the $50 billion Purchase Money Note, the effective settlement of the Firm's $5 billion deposit and $447 million of securities financing with First Republic Bank, and the $3.7 billion payable to the FDIC as part of the purchase price consideration are considered non-cash transactions.
The following describes the accounting policies and fair value methodologies generally used by the Firm for the following assets acquired and liabilities assumed: core deposit and customer relationship intangibles, shared-loss agreements and the related indemnification assets, Purchase Money Note, and FHLB advances.
Refer to JPMorgan Chase’s 2022 Form 10-K for a discussion of the Firm’s accounting policies and valuation methodologies for securities, loans, deposits, and lending-related commitments.
Core deposit and customer relationship intangibles
Core deposit and certain wealth management customer relationship intangibles were acquired as part of the First Republic transaction. The core deposit intangible of $1.3 billion was valued by discounting estimated after-tax cost savings over the remaining useful life of the deposits using the favorable source of funds method. The after-tax cost savings were estimated based on the difference between the cost of maintaining the core deposit base relative to the cost of next best alternative funding sources available to market participants. The customer relationship intangibles of $187 million were valued by discounting estimated after-tax earnings over their remaining useful lives using the multi-period excess earnings method. Both intangible asset valuations utilized assumptions that the Firm believes a market participant would use to estimate fair values, such as growth and attrition rates, projected fee income as well
as related costs to service the relationships, and discount rates. The core deposit and customer relationship intangibles will be amortized over a projected period of future cash flows of approximately 7 years. As of June 30, 2023, the carrying values of the core deposit and customer relationship intangibles were $1.2 billion and $183 million, respectively, reflecting accumulated amortization of approximately $30 million and $4 million, respectively.
Indemnification assets - Shared-loss agreements
The indemnification assets represent forecasted recoveries from the FDIC associated with the shared-loss assets over the respective shared loss recovery periods. The indemnification assets were recorded at fair value in other assets on the Consolidated balance sheets on the acquisition date. The fair values of the indemnification assets were estimated based on the timing of the forecasted losses underlying the related allowance for credit losses.
195


The subsequent quarterly remeasurement of the indemnification assets will be based on changes in amount and timing of forecasted losses in the allowance for credit losses associated with the shared loss assets and will be recorded in other income. Under certain circumstances, the Firm may be required to make a payment to the FDIC upon termination of the shared-loss agreements based on the level of actual losses and recoveries on the shared-loss assets. The estimated potential future payment is reflected as contingent consideration as part of the purchase price consideration.
Purchase Money Note and FHLB advances
The Purchase Money Note is recorded in long-term debt on the Consolidated balance sheets. The fair value of the Purchase Money Note was estimated based on a discounted cash flow methodology and incorporated estimated market discount rates.
The FHLB advances assumed in the acquisition are recorded in short-term borrowings and in long-term debt. The fair value of the FHLB advances was based on a discounted cash flow methodology and considered the observed FHLB advance issuance rates.
Loans
The following table presents the unpaid principal balance and estimated fair value of the loans acquired as of May 1, 2023.
May 1, 2023
(in millions)UPBFair value
Residential real estate$106,240 $91,906 
Auto and other3,092 2,031 
Total consumer109,332 93,937 
Secured by real estate37,119 33,605 
Commercial & industrial4,333 3,933 
Other22,597 20,860 
Total wholesale64,049 58,398 
Total loans$173,381 $152,335 
Unaudited pro forma condensed combined financial information
Included in the Firm's Consolidated statements of income are noninterest revenue, net interest income and net income contributed by First Republic since the acquisition date of May 1, 2023 of $3.1 billion, $897 million and $2.4 billion, respectively, for the three and six months ended June 30, 2023.
The following table presents certain unaudited pro forma financial information for the three and six months ended June 30, 2023 and 2022 as if the First Republic acquisition had occurred on January 1, 2022, including recognition of the estimated bargain purchase gain of $2.7 billion and the provision for credit losses of $1.2 billion. Additional adjustments include the interest on the Purchase Money Note and the impact of amortizing and accreting certain estimated fair value adjustments related to intangible assets and loans.
The Firm expects to achieve operating cost savings and other business synergies resulting from the acquisition that are not reflected in the pro forma amounts. The pro forma information is not necessarily indicative of the historical results of operations had the acquisition occurred on January 1, 2022, nor is it indicative of the results of operations in future periods, particularly in light of recent changes in market and economic conditions.
Three months ended June 30,Six months ended June 30,
(in millions)2023202220232022
Noninterest revenue$16,924 $15,853 $34,832 $35,675 
Net interest income22,184 16,180 44,084 30,997 
Net income13,565 9,086 26,726 18,887 

196


pwclogobwaa10.jpg
Report of Independent Registered Public Accounting Firm


To the Board of Directors and Shareholders of JPMorgan Chase & Co.:
Results of Review of Interim Financial Statements
We have reviewed the accompanying consolidated balance sheet of JPMorgan Chase & Co. and its subsidiaries (the “Firm”) as of SeptemberJune 30, 2022,2023, and the related consolidated statements of income, comprehensive income and changes in stockholders’ equity for the three-month and nine-monthsix-month periods ended September 30,June 30,2023 and 2022 and 2021 and the consolidated statements of cash flows for the nine-monthsix-month periods ended SeptemberJune 30, 20222023 and 2021,2022, including the related notes (collectively referred to as the “interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of the Firm as of December 31, 2021,2022, and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity and of cash flows for the year then ended (not presented herein), and in our report dated February 22, 2022,21, 2023, which included a paragraph describing a change in the manner of accounting for credit losses on certain financial instruments in 2020, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet information as of December 31, 2021,2022, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.
Basis for Review Results
These interim financial statements are the responsibility of the Firm’s management. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Firm in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.PwC Signature 2Q23.jpg
jpm-20220930_g5.jpg
NovemberAugust 3, 20222023
























PricewaterhouseCoopers LLP, 300 Madison Avenue, New York, NY 10017
181197


JPMorgan Chase & Co.
Consolidated average balance sheets, interest and rates (unaudited)Consolidated average balance sheets, interest and rates (unaudited)Consolidated average balance sheets, interest and rates (unaudited)
(Taxable-equivalent interest and rates; in millions, except rates)(Taxable-equivalent interest and rates; in millions, except rates)(Taxable-equivalent interest and rates; in millions, except rates)
Three months ended September 30, 2022Three months ended September 30, 2021Three months ended June 30, 2023Three months ended June 30, 2022
Average
balance
Interest(f)
Rate
(annualized)
Average
balance
Interest(f)
Rate
(annualized)
Average
balance
Interest(f)
Rate
(annualized)
Average
balance
Interest(f)
Rate
(annualized)
AssetsAssetsAssets
Deposits with banksDeposits with banks$652,321 $3,015 1.83 %$756,653 $174 0.09 %Deposits with banks$495,018 $5,189 4.20 %$694,644 $1,079 0.62 %
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements322,053 1,413 1.74 262,679 231 0.35 Federal funds sold and securities purchased under resale agreements326,563 3,767 4.63 305,132 543 0.71 
Securities borrowedSecurities borrowed204,479 772 1.50 189,418 (73)

(0.15)(h)Securities borrowed191,393 1,866 3.91 207,437 173 

0.33 
Trading assets – debt instrumentsTrading assets – debt instruments283,414 2,401 3.36 275,860 1,689 2.43 Trading assets – debt instruments391,945 4,025 4.12 273,736 2,058 3.02 
Taxable securitiesTaxable securities619,517 2,696 1.73 534,771 1,553 1.15 Taxable securities578,876 4,194 2.91 644,037 2,289 1.43 
Nontaxable securities(a)
Nontaxable securities(a)
27,648 300 4.30 30,573 331 4.30 
Nontaxable securities(a)
32,676 390 4.79 28,762 309 4.31 
Total investment securitiesTotal investment securities647,165 2,996 1.84 (g)565,344 1,884 1.32 (g)Total investment securities611,552 4,584 3.01 (g)672,799 2,598 1.55 (g)
LoansLoans1,112,761 14,022 5.00 1,042,591 10,473 3.99 Loans1,238,237 20,351 6.59 1,093,106 11,656 4.28 
All other interest-earning assets(b)
All other interest-earning assets(b)
122,756 1,104 3.57 127,241 206 0.64 
All other interest-earning assets(b)
89,072 1,966 8.85 139,040 642 1.85 
Total interest-earning assetsTotal interest-earning assets3,344,949 25,723 3.05 3,219,786 14,584 1.80 Total interest-earning assets3,343,780 41,748 5.01 3,385,894 18,749 2.22 
Allowance for loan lossesAllowance for loan losses(17,757)(19,500)Allowance for loan losses(20,055)(17,194)
Cash and due from banksCash and due from banks26,805 27,065 Cash and due from banks25,228 28,712 
Trading assets – equity and other instrumentsTrading assets – equity and other instruments129,221 177,315 Trading assets – equity and other instruments169,558 151,309 
Trading assets – derivative receivablesTrading assets – derivative receivables83,950 65,574 Trading assets – derivative receivables63,339 84,483 
Goodwill, MSRs and other intangible AssetsGoodwill, MSRs and other intangible Assets60,085 54,947 Goodwill, MSRs and other intangible Assets62,530 59,355 
All other noninterest-earning assetsAll other noninterest-earning assets214,994 200,032 All other noninterest-earning assets207,008 219,084 
Total assetsTotal assets$3,842,247 $3,725,219 Total assets$3,851,388 $3,911,643 
LiabilitiesLiabilitiesLiabilities
Interest-bearing depositsInterest-bearing deposits$1,728,852 $3,159 0.73 %$1,677,837 $126 0.03 %Interest-bearing deposits$1,715,699 $9,591 2.24 %$1,790,421 $898 0.20 %
Federal funds purchased and securities loaned or sold under repurchase agreementsFederal funds purchased and securities loaned or sold under repurchase agreements239,582 1,267 2.10 240,912 119 0.20 Federal funds purchased and securities loaned or sold under repurchase agreements263,718 3,400 5.17 233,376 445 0.76 
Short-term borrowings(c)
Short-term borrowings(c)
45,797 155 1.35 43,759 31 0.26 
Short-term borrowings(c)
35,335 428 4.87 50,833 113 0.91 
Trading liabilities – debt and all other interest-bearing
liabilities(d)(e)
Trading liabilities – debt and all other interest-bearing
liabilities(d)(e)
278,049 1,045 1.49 241,297 52 0.09 (h)
Trading liabilities – debt and all other interest-bearing
liabilities(d)(e)
293,269 2,373 3.25 274,435 471 0.69 
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs11,039 62 2.24 14,232 18 0.50 Beneficial interests issued by consolidated VIEs15,947 197 4.95 10,577 30 1.11 
Long-term debtLong-term debt253,012 2,405 3.77 257,593 1,054 1.62 Long-term debt294,239 3,876 5.28 246,195 1,561 2.54 
Total interest-bearing liabilitiesTotal interest-bearing liabilities2,556,331 8,093 1.26 2,475,630 1,400 0.22 Total interest-bearing liabilities2,618,207 19,865 3.04 2,605,837 3,518 0.54 
Noninterest-bearing depositsNoninterest-bearing deposits716,518 691,622 Noninterest-bearing deposits671,715 741,891 
Trading liabilities – equity and other instruments(e)
Trading liabilities – equity and other instruments(e)
36,985 35,505 
Trading liabilities – equity and other instruments(e)
28,513 40,937 
Trading liabilities – derivative payablesTrading liabilities – derivative payables56,994 55,907 Trading liabilities – derivative payables46,934 61,026 
All other liabilities, including the allowance for lending-related commitmentsAll other liabilities, including the allowance for lending-related commitments189,637 178,770 All other liabilities, including the allowance for lending-related commitments180,730 181,128 
Total liabilitiesTotal liabilities3,556,465 3,437,434 Total liabilities3,546,099 3,630,819 
Stockholders’ equityStockholders’ equityStockholders’ equity
Preferred stockPreferred stock32,838 34,229 Preferred stock27,404 32,838 
Common stockholders’ equityCommon stockholders’ equity252,944 253,556 Common stockholders’ equity277,885 247,986 
Total stockholders’ equityTotal stockholders’ equity285,782 287,785 Total stockholders’ equity305,289 280,824 
Total liabilities and stockholders’ equityTotal liabilities and stockholders’ equity$3,842,247 $3,725,219 Total liabilities and stockholders’ equity$3,851,388 $3,911,643 
Interest rate spreadInterest rate spread1.79 %1.58 %Interest rate spread1.97 %1.68 %
Net interest income and net yield on interest-earning assetsNet interest income and net yield on interest-earning assets$17,630 2.09 $13,184 1.62 Net interest income and net yield on interest-earning assets$21,883 2.62 $15,231 1.80 
(a)Represents securities which are tax-exempt for U.S. federal income tax purposes.
(b)Includes brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated Balance Sheets.
(c)Includes commercial paper.
(d)All other interest-bearing liabilities include brokerage-related customer payables.
(e)The combined balance of trading liabilities – debt and equity instruments was $143.1$153.7 billion and $122.5$140.2 billion for the three months ended SeptemberJune 30, 20222023 and 2021,2022, respectively.
(f)Interest includes the effect of certain related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(g)The annualized rate for securities based on amortized cost was 1.80%2.96% and 1.34%1.52% for the three months ended SeptemberJune 30, 20222023 and 2021,2022, respectively, and does not give effect to changes in fair value that are reflected in AOCI.
(h)Negative interest income and yield are 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.

182198



JPMorgan Chase & Co.
Consolidated average balance sheets, interest and rates (unaudited)Consolidated average balance sheets, interest and rates (unaudited)Consolidated average balance sheets, interest and rates (unaudited)
(Taxable-equivalent interest and rates; in millions, except rates)(Taxable-equivalent interest and rates; in millions, except rates)(Taxable-equivalent interest and rates; in millions, except rates)
Nine months ended September 30, 2022Nine months ended September 30, 2021Six months ended June 30, 2023Six months ended June 30, 2022
Average
balance
Interest(f)
Rate
(annualized)
Average
balance
Interest(f)
Rate
(annualized)
Average
balance
Interest(f)
Rate
(annualized)
Average
balance
Interest(f)
Rate
(annualized)
AssetsAssetsAssets
Deposits with banksDeposits with banks$696,096 $4,332 0.83 %$703,616 $342 0.06 %Deposits with banks$500,311 $10,008 4.03 %$718,346 $1,317 0.37 %
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements307,478 2,353 1.02 269,324 639 0.32 Federal funds sold and securities purchased under resale agreements319,911 6,898 4.35 300,070 940 0.63 
Securities borrowedSecurities borrowed209,932 858 0.55 185,127 (240)

(0.17)(h)Securities borrowed192,114 3,582 3.76 212,704 86 

0.08 
Trading assets – debt instrumentsTrading assets – debt instruments276,464 6,234 3.01 291,673 5,198 2.38 Trading assets – debt instruments374,908 7,685 4.13 272,931 3,833 2.83 
Taxable securitiesTaxable securities635,312 6,964 1.47 546,258 4,735 1.16 Taxable securities587,750 8,161 2.80 643,340 4,268 1.34 
Nontaxable securities(a)
Nontaxable securities(a)
28,310 916 4.33 31,308 1,018 4.35 
Nontaxable securities(a)
29,022 698 4.85 28,647 616 4.34 
Total investment securitiesTotal investment securities663,622 7,880 1.59 (g)577,566 5,753 1.33 (g)Total investment securities616,772 8,859 2.90 (g)671,987 4,884 1.47 (g)
LoansLoans1,091,663 36,339 4.45 1,027,023 30,867 4.02 Loans1,184,231 38,105 6.49 1,080,939 22,317 4.16 
All other interest-earning assets(b)
All other interest-earning assets(b)
132,135 2,070 2.09 120,529 608 0.67 
All other interest-earning assets(b)
92,372 3,735 8.15 136,902 966 1.42 
Total interest-earning assetsTotal interest-earning assets3,377,390 60,066 2.38 3,174,858 43,167 1.82 Total interest-earning assets3,280,619 78,872 4.85 3,393,879 34,343 2.04 
Allowance for loan lossesAllowance for loan losses(17,127)(23,546)Allowance for loan losses(19,593)(16,807)
Cash and due from banksCash and due from banks27,823 26,338 Cash and due from banks25,640 28,340 
Trading assets – equity and other instrumentsTrading assets – equity and other instruments145,712 180,253 Trading assets – equity and other instruments160,868 154,093 
Trading assets – derivative receivablesTrading assets – derivative receivables78,650 70,139 Trading assets – derivative receivables63,929 75,956 
Goodwill, MSRs and other intangible AssetsGoodwill, MSRs and other intangible Assets59,005 54,467 Goodwill, MSRs and other intangible Assets61,697 58,455 
All other noninterest-earning assetsAll other noninterest-earning assets215,203 206,818 All other noninterest-earning assets207,913 215,313 
Total assetsTotal assets$3,886,656 $3,689,327 Total assets$3,781,073 $3,909,229 
LiabilitiesLiabilitiesLiabilities
Interest-bearing depositsInterest-bearing deposits$1,766,672 $4,239 0.32 %$1,652,807 $404 0.03 %Interest-bearing deposits$1,692,993 $17,228 2.05 %$1,785,896 $1,080 0.12 %
Federal funds purchased and securities loaned or sold under repurchase agreementsFederal funds purchased and securities loaned or sold under repurchase agreements241,019 1,852 1.03 267,659 194 0.10 Federal funds purchased and securities loaned or sold under repurchase agreements258,045 6,204 4.85 241,749 558 0.47 
Short-term borrowings(c)
Short-term borrowings(c)
48,159 285 0.79 43,998 97 0.29 
Short-term borrowings(c)
37,039 849 4.63 49,360 157 0.64 
Trading liabilities – debt and all other interest-bearing
liabilities(d)(e)
Trading liabilities – debt and all other interest-bearing
liabilities(d)(e)
271,891 1,707 0.84 239,666 130 0.07 (h)
Trading liabilities – debt and all other interest-bearing
liabilities(d)(e)
285,467 4,344 3.07 268,762 662 0.50 
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs10,836 110 1.36 15,501 66 0.57 Beneficial interests issued by consolidated VIEs14,722 344 4.71 10,733 48 0.90 
Long-term debtLong-term debt251,125 5,042 2.68 248,581 3,244 1.74 Long-term debt271,912 7,189 5.33 250,165 2,637 2.13 
Total interest-bearing liabilitiesTotal interest-bearing liabilities2,589,702 13,235 0.68 2,468,212 4,135 0.22 Total interest-bearing liabilities2,560,178 36,158 2.85 2,606,665 5,142 0.40 
Noninterest-bearing depositsNoninterest-bearing deposits730,816 653,685 Noninterest-bearing deposits661,138 738,083 
Trading liabilities – equity and other instruments(e)
Trading liabilities – equity and other instruments(e)
40,415 35,312 
Trading liabilities – equity and other instruments(e)
29,137 42,159 
Trading liabilities – derivative payablesTrading liabilities – derivative payables57,523 62,089 Trading liabilities – derivative payables48,139 57,792 
All other liabilities, including the allowance for lending-related commitmentsAll other liabilities, including the allowance for lending-related commitments183,988 187,601 All other liabilities, including the allowance for lending-related commitments180,517 181,116 
Total liabilitiesTotal liabilities3,602,444 3,406,899 Total liabilities3,479,109 3,625,815 
Stockholders’ equityStockholders’ equityStockholders’ equity
Preferred stockPreferred stock33,065 32,417 Preferred stock27,404 33,180 
Common stockholders’ equityCommon stockholders’ equity251,147 250,011 Common stockholders’ equity274,560 250,234 
Total stockholders’ equityTotal stockholders’ equity284,212 282,428 Total stockholders’ equity301,964 283,414 
Total liabilities and stockholders’ equityTotal liabilities and stockholders’ equity$3,886,656 $3,689,327 Total liabilities and stockholders’ equity$3,781,073 $3,909,229 
Interest rate spreadInterest rate spread1.70 %1.60 %Interest rate spread2.00 %1.64 %
Net interest income and net yield on interest-earning assetsNet interest income and net yield on interest-earning assets$46,831 1.85 $39,032 1.64 Net interest income and net yield on interest-earning assets$42,714 2.63 $29,201 1.74 
(a)Represents securities which are tax-exempt for U.S. federal income tax purposes.
(b)Includes brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated Balance Sheets.
(c)Includes commercial paper.
(d)All other interest-bearing liabilities include brokerage-related customer payables.
(e)The combined balance of trading liabilities – debt and equity instruments was $141.2$148.5 billion and $128.1$140.2 billion for the ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, respectively.
(f)Interest includes the effect of certain related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(g)The annualized rate for securities based on amortized cost was 1.57%2.85% and 1.35%1.45% for the ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, respectively, and does not give effect to changes in fair value that are reflected in AOCI.
(h)Negative interest income and yield are 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.
183199


GLOSSARY OF TERMS AND ACRONYMS
20212022 Form 10-K: Annual report on Form 10-K for year ended December 31, 2021,2022, filed with the U.S. Securities and Exchange Commission.
ABS: Asset-backed securities
Active foreclosures: Loans referred to foreclosure where formal foreclosure proceedings are ongoing. Includes both judicial and non-judicial states.
AFS: Available-for-sale
Allowance for loan losses to total retained loans: represents period-end allowance for loan losses divided by retained loans.
Amortized cost: Amount at which a financing receivable or investment is originated or acquired, adjusted for accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, charge-offs, foreign exchange, and fair value hedge accounting adjustments. For AFS securities, amortized cost is also reduced by any impairment losses recognized in earnings. Amortized cost is not reduced by the allowance for credit losses, except where explicitly presented net.
AOCI: Accumulated other comprehensive income/(loss)
ARM(s): Adjustable rate mortgage(s)
AUC: “Assets under custody”: Represents assets held directly or indirectly on behalf of clients under safekeeping, custody and servicing arrangements.
Auto loan and lease origination volume: Dollar amount of auto loans and leases originated.
AWM: Asset & Wealth Management
Beneficial interests issued by consolidated VIEs: represents the interest of third-party holders of debt, equity securities, or other obligations, issued by VIEs that JPMorgan Chase consolidates.
BHC: Bank holding company
BWM: Banking & Wealth Management
Bridge Financing Portfolio: A portfolio of held-for-sale unfunded loan commitments and funded loans. The unfunded commitments include both short-term bridge loan commitments that will ultimately be replaced by longer term financing as well as term loan commitments. The funded loans include term loans and funded revolver facilities.
CB: Commercial Banking
CBB: Consumer & Business Banking
CCAR: Comprehensive Capital Analysis and Review
CCB: Consumer & Community Banking
CDS: Credit default swaps
CECL: Current Expected Credit Losses
CEO: Chief Executive Officer
CET1 capital: Common equity Tier 1 capital
CFO: Chief Financial Officer
CFTC: Commodity Futures Trading Commission
CIB: Corporate & Investment Bank
CIO: Chief Investment Office
Client assets: Represent assets under management as well as custody, brokerage, administration and deposit accounts.
Client deposits and other third-party liabilities: Deposits, as well as deposits that are swept to on-balance sheet liabilities (e.g., commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements) as part of client cash management programs.
Client investment assets: Represent assets under management as well as custody, brokerage and annuity accounts, and deposits held in investment accounts.
CLTV: Combined loan-to-value
CMT: Constant Maturity Treasury
Collateral-dependent: A loan is considered to be collateral-dependent when repayment of the loan is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty, including when foreclosure is deemed probable based on borrower delinquency.
Commercial Card: provides a wide range of payment services to corporate and public sector clients worldwide through the commercial card products. Services include procurement, corporate travel and entertainment, expense management services, and business-to-business payment solutions.
Credit derivatives: Financial instruments whose value is derived from the credit risk associated with the debt of a third-party issuer (the reference entity) which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller). Upon the occurrence of a credit event by the reference entity, which may include, among other events, the bankruptcy or failure to pay its obligations, or certain restructurings of the debt of the reference entity, neither party has recourse to the reference entity. The protection purchaser has recourse to the protection seller for the difference between the face value of the CDS contract and the fair value at the time of settling the credit derivative contract. The determination as to whether a credit event has occurred is generally made by the relevant International Swaps and Derivatives Association (“ISDA”) Determinations Committee.
Criticized: Criticized loans, lending-related commitments and derivative receivables that are classified as special mention, substandard and doubtful categories for regulatory purposes and are generally consistent with a rating of CCC+/Caa1 and below, as defined by S&P and Moody’s.
CRR: Capital Requirements Regulation
CVA: Credit valuation adjustment
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Deposit margin: Represents net interest income expressed as a percentage of average deposits.
DVA: Debit valuation adjustment
EC: European Commission
Eligible HQLA: Eligible high-quality liquid assets, for purposes of calculating the LCR, is the amount of
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unencumbered HQLA that satisfy certain operational considerations as defined in the LCR rule.
Eligible LTD: Long-term debt satisfying certain eligibility criteria
Embedded derivatives: are implicit or explicit terms or features of a financial instrument that affect some or all of the cash flows or the value of the instrument in a manner similar to a derivative. An instrument containing such terms or features is referred to as a “hybrid.” The component of the hybrid that is the non-derivative instrument is referred to as the “host.” For example, callable debt is a hybrid instrument that contains a plain vanilla debt instrument (i.e., the host) and an embedded option that allows the issuer to redeem the debt issue at a specified date for a specified amount (i.e., the embedded derivative). However, a floating rate instrument is not a hybrid composed of a fixed-rate instrument and an interest rate swap.
EPS: Earnings per share
ERISA: Employee Retirement Income Security Act of 1974
ESG: Environmental, Social and Governance
ETD: “Exchange-traded derivatives”: Derivative contracts that are executed on an exchange and settled via a central clearing house.
EU: European Union
Expense categories:
Volume- and/or revenue-related expenses generally correlate with changes in the related business/transaction volume or revenue. Examples of volume- and revenue-related expenses include commissions and incentive compensation, depreciation expense related to operating lease assets, and brokerage expense related to equities trading transaction volume.
Investments include expenses associated with supporting medium- to longer-term strategic plans of the Firm. Examples of investments include initiatives in technology (including related compensation), marketing, and compensation for new bankers and client advisors.
Structural expenses are those associated with the day-to-day cost of running the bank and are expenses not covered by the above two categories. Examples of structural expenses include employee salaries and benefits, as well as noncompensation costs such as real estate and all other expenses.
Fannie Mae: Federal National Mortgage Association
FASB: Financial Accounting Standards Board
FCA: Financial Conduct Authority
FDIC: Federal Deposit Insurance Corporation
FDM: "Financial difficulty modification" applies to loan modifications effective January 1, 2023, andis deemed to occur when the Firm modifies specific terms of the original loan agreement. The following types of modifications are considered FDMs: principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications.
Federal Reserve: The Board of the Governors of the Federal Reserve System
FFIEC: Federal Financial Institutions Examination Council
FHA: Federal Housing Administration
FHLB: Federal Home Loan Bank
FICO score: A measure of consumer credit risk based on information in consumer credit reports produced by Fair Isaac Corporation. Because certain aged data is excluded from credit reports based on rules in the Fair Credit Reporting Act, FICO scores may not reflect all historical information about a consumer.
FICC: Fixed Income Clearing Corporation
FINRA: Financial Industry Regulatory Authority
Firm: JPMorgan Chase & Co.
Forward points: represents the interest rate differential between two currencies, which is either added to or subtracted from the current exchange rate (i.e., “spot rate”) to determine the forward exchange rate.
Freddie Mac: Federal Home Loan Mortgage Corporation
Free-standing derivatives: is a derivative contract entered into either separate and apart from any of the Firm’s other financial instruments or equity transactions. Or, in conjunction with some other transaction and is legally detachable and separately exercisable.
FTE: Fully taxable-equivalent
FVA: Funding valuation adjustment
FX: Foreign exchange
G7: “Group of Seven nations”: Countries in the G7 are Canada, France, Germany, Italy, Japan, the U.K. and the U.S.
G7 government securities: Securities issued by the government of one of the G7 nations.
Ginnie Mae: Government National Mortgage Association
GSIB: Global systemically important banks
HELOC: Home equity line of credit
Home equity – senior lien: represents loans and commitments where JPMorgan Chase holds the first security interest on the property.
Home equity – junior lien: represents loans and commitments where JPMorgan Chase holds a security interest that is subordinate in rank to other liens.
HQLA: High-quality liquid assets
HTM: Held-to-maturity
IBOR: Interbank Offered Rate
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IDI: Insured depository institutions
IHC: JPMorgan Chase Holdings LLC, an intermediate holding company
Investment-grade: An indication of credit quality based on JPMorgan Chase’s internal risk assessment system. “Investment grade” generally represents a risk profile similar to a rating of a “BBB-”/“Baa3” or better, as defined by independent rating agencies.
IR: Interest rate
ISDA: International Swaps and Derivatives Association
JPMorgan Chase: JPMorgan Chase & Co.
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JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank, National Association
JPMorgan Chase Foundation or Foundation: a not-for-profit organization that makes contributions for charitable and educational purposes.
J.P. Morgan Securities: J.P. Morgan Securities LLC
JPMSE: J.P. Morgan SE
LCR: Liquidity coverage ratio
LIBOR: London Interbank Offered Rate
LLC: Limited Liability Company
LOB: Line of business
LTV: “Loan-to-value ratio”: For residential real estate loans, the relationship, expressed as a percentage, between the principal amount of a loan and the appraised value of the collateral (i.e., residential real estate) securing the loan.
Origination date LTV ratio
The LTV ratio at the origination date of the loan. Origination date LTV ratios are calculated based on the actual appraised values of collateral (i.e., loan-level data) at the origination date.
Current estimated LTV ratio
An estimate of the LTV as of a certain date. The current estimated LTV ratios are calculated using estimated collateral values derived from a nationally recognized home price index measured at the metropolitan statistical area (“MSA”) level. These MSA-level home price indices consist of actual data to the extent available and forecasted data where actual data is not available. As a result, the estimated collateral values used to calculate these ratios do not represent actual appraised loan-level collateral values; as such, the resulting LTV ratios are necessarily imprecise and should therefore be viewed as estimates.
Combined LTV ratio
The LTV ratio considering all available lien positions, as well as unused lines, related to the property. Combined LTV ratios are used for junior lien home equity products.
Macro businesses: the macro businesses include Rates, Currencies and Emerging Markets, Fixed Income Financing and Commodities in CIB's Fixed Income Markets.
Managed basis: A non-GAAP presentation of Firmwide financial results that includes reclassifications to present
revenue on a fully taxable-equivalent basis. Management also uses this financial measure at the segment level, because it believes this provides information to enable investors to understand the underlying operational performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors.
Markets: consists of CIB's Fixed Income Markets and Equity Markets businesses.
Master netting agreement: A single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and
settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer or deliver collateral or margin when due).
MBS: Mortgage-backed securities
MD&A: Management’s discussion and analysis
Measurement alternative: Measures 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.
Merchant Services: offers merchants payment processing capabilities, fraud and risk management, data and analytics, and other payments services. Through Merchant Services, merchants of all sizes can accept payments via credit and debit cards and payments in multiple currencies.
MEV: Macroeconomic variable
Moody’s: Moody’s Investor Services
Mortgage product types:
Alt-A
Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan. Alt-A lending characteristics may include one or more of the following: (i) limited documentation; (ii) a high CLTV ratio; (iii) loans secured by non-owner occupied properties; or (iv) a debt-to-income ratio above normal limits. A substantial proportion of the Firm’s Alt-A loans are those where a borrower does not provide complete documentation of his or her assets or the amount or source of his or her income.
Option ARMs
The option ARM real estate loan product is an adjustable-rate mortgage loan that provides the borrower with the option each month to make a fully amortizing, interest-only or minimum payment. The minimum payment on an option ARM loan is based on the interest rate charged during the introductory period. This introductory rate is usually significantly below the fully indexed rate. The fully indexed rate is calculated using an index rate plus a margin. Once the introductory period ends, the contractual interest rate charged on the loan increases to the fully indexed rate and adjusts monthly to reflect movements in the index. The minimum payment is typically insufficient to cover interest
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accrued in the prior month, and any unpaid interest is deferred and added to the principal balance of the loan. Option ARM loans are subject to payment recast, which converts the loan to a variable-rate fully amortizing loan upon meeting specified loan balance and anniversary date triggers.
Prime
Prime mortgage loans are made to borrowers with good credit records who meet specific underwriting requirements, including prescriptive requirements related to income and overall debt levels. New prime mortgage borrowers provide full documentation and generally have reliable payment histories.
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Subprime
Subprime loans are loans that, prior to mid-2008, were offered to certain customers with one or more high risk characteristics, including but not limited to: (i) unreliable or poor payment histories; (ii) a high LTV ratio of greater than 80% (without borrower-paid mortgage insurance); (iii) a high debt-to-income ratio; (iv) an occupancy type for the loan is other than the borrower’s primary residence; or (v) a history of delinquencies or late payments on the loan.
MREL: Minimum requirements for own funds and eligible liabilities
MSR: Mortgage servicing rights
NA: Data is not applicable or available for the period presented.
Net Capital Rule: Rule 15c3-1 under the Securities Exchange Act of 1934.
Net charge-off/(recovery) rate: represents net charge-offs/(recoveries) (annualized) divided by average retained loans for the reporting period.
Net interchange income includes the following components:
Interchange income: Fees earned by credit and debit card issuers on sales transactions.
Rewards costs: The cost to the Firm for points earned by cardholders enrolled in credit card rewards programs generally tied to sales transactions.
Partner payments: Payments to co-brand credit card partners based on the cost of loyalty program rewards earned by cardholders on credit card transactions.
Net yield on interest-earning assets: The average rate for interest-earning assets less the average rate paid for all sources of funds.
NFA: National Futures Association
NM: Not meaningful
Nonaccrual loans: Loans for which interest income is not recognized on an accrual basis. Loans (other than credit card loans and certain consumer loans insured by U.S. government agencies) are placed on nonaccrual status when full payment of principal and interest is not expected, regardless of delinquency status, or when principal and
interest has been in default for a period of 90 days or more unless the loan is both well-secured and in the process of collection. Collateral-dependent loans are typically maintained on nonaccrual status.
Nonperforming assets: Nonperforming assets include nonaccrual loans, nonperforming derivatives and certain assets acquired in loan satisfactions, predominantly real estate owned and other commercial and personal property.
NSFR: Net Stable Funding Ratio
OCC: Office of the Comptroller of the Currency
OCI: Other comprehensive income/(loss)
OPEB: Other postretirement employee benefit
OTC: “Over-the-counter derivatives”: Derivative contracts that are negotiated, executed and settled bilaterally between two derivative counterparties, where one or both counterparties is a derivatives dealer.
OTC cleared: “Over-the-counter cleared derivatives”: Derivative contracts that are negotiated and executed bilaterally, but subsequently settled via a central clearing house, such that each derivative counterparty is only exposed to the default of that clearing house.
Overhead ratio: Noninterest expense as a percentage of total net revenue.
Parent Company: JPMorgan Chase & Co.
Participating securities: represents unvested share-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, “dividends”), which are included in the earnings per share calculation using the two-class method. JPMorgan Chase grants restricted stock and RSUs to certain employees under its share-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends.
PCD: “Purchased credit deteriorated” assets represent acquired financial assets that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Firm.
Pillar 1: The Basel framework consists of a three “Pillar” approach. Pillar 1 establishes minimum capital requirements, defines eligible capital instruments, and prescribes rules for calculating RWA.
Pillar 3: The Basel framework consists of a three “Pillar” approach. Pillar 3 encourages market discipline through disclosure requirements which allow market participants to assess the risk and capital profiles of banks.
PPP: Paycheck Protection Program under the Small Business Association (“SBA”)
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PRA: Prudential Regulation Authority
Pre-provision profit/(loss): represents total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.
Principal transactions revenue: Principal transactions revenue is driven by many factors, including the bid-offer spread, which is the difference between the price at which the Firm is willing to buy a financial or other instrument and the price at which the Firm is willing to sell that instrument. It also consists of realized (as a result of closing out or termination of transactions, or interim cash payments) and unrealized (as a result of changes in valuation) gains and
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losses on financial and other instruments (including those accounted for under the fair value option) primarily used in client-driven market-making activities and on private equity investments. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities (including physical commodities inventories and financial instruments that reference commodities). Principal transactions revenue also includes certain realized and unrealized gains and losses related to hedge accounting and specified risk-management activities, including: (a) certain derivatives designated in qualifying hedge accounting relationships (primarily fair value hedges of commodity and foreign exchange risk), (b) certain derivatives used for specific risk management purposes, primarily to mitigate credit risk and foreign exchange risk, and (c) other derivatives.
PSU(s): Performance share units
Regulatory VaR: Daily aggregated VaR calculated in accordance with regulatory rules.
REO: Real estate owned
Reported basis: Financial statements prepared under U.S. GAAP, which excludes the impact of taxable-equivalent adjustments.
Retained loans: Loans that are held-for-investment (i.e. excludes loans held-for-sale and loans at fair value).
Revenue wallet: Total fee revenue based on estimates of investment banking fees generated across the industry (i.e., the revenue wallet) from investment banking transactions in M&A, equity and debt underwriting, and loan syndications. Source: Dealogic, a third-party provider of investment banking competitive analysis and volume based league tables for the above noted industry products.
RHS: Rural Housing Service of the U.S. Department of Agriculture
ROE: Return on equity
ROTCE: Return on tangible common equity
ROU assets: Right-of-use assets
RSU(s): Restricted stock units
RWA: “Risk-weighted assets”: Basel III establishes two comprehensive approaches for calculating RWA (a
Standardized approach and an Advanced approach) which include capital requirements for credit risk, market risk, and in the case of Basel III Advanced, also operational risk. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Basel III Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Basel III Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. Market risk RWA is calculated on a generally consistent basis between Basel III Standardized and Basel III Advanced.
S&P: Standard and Poors
SA-CCR: Standardized Approach for Counterparty Credit Risk
SAR as it pertains to Hong Kong: Special Administrative Region
SAR(s) as it pertains to employee stock awards: Stock appreciation rights
SCB: Stress capital buffer
Scored portfolios: Consumer loan portfolios that predominantly include residential real estate loans, credit card loans, auto loans to individuals and certain small business loans.
SEC: U.S. Securities and Exchange Commission
Securitized Products Group: Comprised of Securitized Products and tax-oriented investments.
Seed capital: Initial JPMorgan capital invested in products, such as mutual funds, with the intention of ensuring the fund is of sufficient size to represent a viable offering to clients, enabling pricing of its shares, and allowing the manager to develop a track record. After these goals are achieved, the intent is to remove the Firm’s capital from the investment.
Shelf securities: Securities registered with the SEC under a shelf registration statement that have not been issued, offered or sold. These securities are not included in league tables until they have actually been issued.
Single-name: Single reference-entities
SLR: Supplementary leverage ratio
SOFR: Secured Overnight Financing Rate
SPEs: Special purpose entities
Structural interest rate risk: represents interest rate risk of the non-trading assets and liabilities of the Firm.
Structured notes: Structured notes are financial instruments whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, underlying reference pool of loans or other market variables. The notes typically contain embedded (but not separable or detachable) derivatives. Contractual cash flows for principal, interest, or both can vary in amount and timing
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throughout the life of the note based on non-traditional indexes or non-traditional uses of traditional interest rates or indexes.
Suspended foreclosures: Loans referred to foreclosure where formal foreclosure proceedings have started but are currently on hold, which could be due to bankruptcy or loss mitigation. Includes both judicial and non-judicial states.
Taxable-equivalent basis: In presenting managed results, the total net revenue for each of the business segments and the Firm is presented on a tax-equivalent basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities; the corresponding income tax impact related to tax-exempt items is recorded within income tax expense.
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TBVPS: Tangible book value per share
TCE: Tangible common equity
TDR: “Troubled debt restructuring” applies to loan modifications granted prior to January 1, 2023 and is deemed to occur when the Firm modifies the original terms of a loan agreement by granting a concession to a borrower that is experiencing financial difficulty. Loans with short-term and other insignificant modifications that are not considered concessions are not TDRs.
TLAC: Total Loss Absorbing Capacity
U.K.: United Kingdom
U.S.: United States of America
U.S. GAAP: Accounting principles generally accepted in the United States of America.
U.S. government agencies: U.S. government agencies include, but are not limited to, agencies such as Ginnie Mae and FHA, and do not include Fannie Mae and Freddie Mac which are U.S. government-sponsored enterprises (“U.S. GSEs”). In general, obligations of U.S. government agencies are fully and explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government in the event of a default.
U.S. GSE(s): “U.S. government-sponsored enterprises” are quasi-governmental, privately-held entities established or chartered by the U.S. government to serve public purposes as specified by the U.S. Congress to improve the flow of credit to specific sectors of the economy and provide certain essential services to the public. U.S. GSEs include Fannie Mae and Freddie Mac, but do not include Ginnie Mae or FHA. U.S. GSE obligations are not explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government.
U.S. Treasury: U.S. Department of the Treasury
Unaudited: Financial statements and/or information that have not been subject to auditing procedures by an independent registered public accounting firm.
VA: U.S. Department of Veterans Affairs
VaR: “Value-at-risk” is a measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment.
VIEs: Variable interest entities
Warehouse loans: consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as loans.
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LINE OF BUSINESS METRICS
CONSUMER & COMMUNITY BANKING (“CCB”)
Debit and credit card sales volume: Dollar amount of card member purchases, net of returns.
Deposit margin/deposit spread:margin: Represents net interest income expressed as a percentage of average deposits.
Home Lending Production and Home Lending Servicing revenue comprises the following:
Net mortgage servicing revenue: Includes operating revenue earned from servicing third-party mortgage loans, which is recognized over the period in which the service is provided; changes in the fair value of MSRs; the impact of risk management activities associated with MSRs; and gains and losses on securitization of excess mortgage servicing. Net mortgage servicing revenue also includes gains and losses on sales and lower of cost or fair value adjustments of certain repurchased loans insured by U.S. government agencies.
Production revenue: Includes fees and income recognized as earned on mortgage loans originated with the intent to sell, and the impact of risk management activities associated with the mortgage pipeline and warehouse loans. Production revenue also includes gains and losses on sales and lower of cost or fair value adjustments on mortgage loans held-for-sale (excluding certain repurchased loans insured by U.S. government agencies), and changes in the fair value of financial instruments measured under the fair value option.
Mortgage origination channels comprise the following:
Retail: Borrowers who buy or refinance a home through direct contact with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties.
Correspondent: Banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.
Credit Card:card: is a business that primarily issues credit cards to consumers and small businesses.
Net revenue rate: represents CreditRepresents Card Services net revenue (annualized) expressed as a percentage of average loans for the period.
Auto loan and lease origination volume: Dollar amount of auto loans and leases originated.
CORPORATE & INVESTMENT BANK (“CIB”)
Definition of selected CIB revenue:
Investment Banking: incorporates all revenue associated with investment banking activities, and is reported net of investment banking revenue shared with other LOBs.
Payments is a full service provider of cash management solutions, which primarily includes merchant acquiring, cross border and domestic payments, liquidity and account services, and global trade for multinational corporations, e-commerce and marketplace operators, and financial institutions.
Lending: includes net interest income, fees, gains or losses on loan sale activity, gains or losses on securities received as part of a loan restructuring, and the risk management results related to the credit portfolio.
Fixed Income Markets: primarily includes revenue related to market-making across global fixed income markets, including foreign exchange, interest rate, credit and commodities markets.
Equity Markets: primarily includes revenue related to market-making across global equity products, including cash instruments, derivatives, convertibles and prime brokerage.
Securities Services: primarily includes custody, fund accounting and administration, and securities lending products sold principally to asset managers, insurance companies and public and private investment funds. Also includes collateral management and depositary receipts businesses which provide collateral management products, and depositary bank services for American and global depositary receipt programs.
Description of certain business metrics:
Assets under custody (“AUC”): represents activities associated with the safekeeping and servicing of assets on which Securities Services earns fees.
Investment banking fees: represents advisory, equity underwriting, bond underwriting and loan syndication fees.
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COMMERCIAL BANKING (“CB”)
Commercial Banking provides comprehensive financial solutions, including lending, payments, investment banking and asset management products across three primary client segments: Middle Market Banking, Corporate Client Banking and Commercial Real Estate Banking. Other includes amounts not aligned with a primary client segment.
Middle Market Banking: covers small and midsized companies, local governments and nonprofit clients.
Corporate Client Banking: covers large corporations.
Commercial Real Estate Banking: covers investors, developers, and owners of multifamily, office, retail, industrial and affordable housing properties.
CB product revenue comprises the following:
Lending: includes a variety of financing alternatives, which are primarily provided on a secured basis; collateral includes receivables, inventory, equipment, real estate or other assets. Products include term loans, revolving lines of credit, bridge financing, asset-based structures, leases, and standby letters of credit.
Payments: includes cash management solutions, which primarily includes merchant acquiring, cross border and domestic payments, liquidity and account services, and global trade solutions offered to CB clients.

Investment banking: includes revenue from a range of products providing CB clients with sophisticated capital-raising alternatives, as well as balance sheet and risk management tools through advisory, equity underwriting, and loan syndications. Revenue from fixed income and equity market products used by CB clients is also included.
Other: revenue primarily includes tax-equivalent adjustments generated from Community Development Banking and activity derived from principal transactions.
ASSET & WEALTH MANAGEMENT (“AWM”)
Assets under management (“AUM”): represent assets managed by AWM on behalf of its Private Banking, Global Institutional and Global Funds clients. Includes “Committed capital not Called.”
Client assets: represent assets under management, as well as custody, brokerage, administration and deposit accounts.
Multi-asset: Any fund or account that allocates assets under management to more than one asset class.
Alternative assets: The following types of assets constitute alternative investments – hedge funds, currency, real estate, private equity and other investment funds designed to focus on nontraditional strategies.
AWM’s lines of business consist of the following:
Asset Management: offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients’ investment needs.
Global Private Bank: provides retirement products and services, brokerage, custody, trusts and estates, loans, mortgages, deposits and investment management to high net worth clients.
AWM’s client segments consist of the following:
Private Banking: clients include high- and ultra-high-net-worth individuals, families, money managers and business owners.
Global Institutional: clients include both corporate and public institutions, endowments, foundations, nonprofit organizations and governments worldwide.
Global Funds: clients include financial intermediaries and individual investors.
Asset Management has two high-level measures of its overall fund performance:
Percentage of mutual fund assets under management in funds rated 4- or 5-star: Mutual fund rating services rank funds based on their risk-adjusted performance over various periods. A 5-star rating is the best rating and represents the top 10% of industry-wide ranked funds. A 4-star rating represents the next 22.5% of industry-wide ranked funds. A 3-star rating represents the next 35% of industry-wide ranked funds. A 2-star rating represents the next 22.5% of industry-wide ranked funds. A 1-star rating is the worst rating and represents the bottom 10% of industry-wide ranked funds. An overall Morningstar rating is derived from a weighted average of the performance associated with a fund’s three-, five- and ten- year (if applicable) Morningstar Rating metrics. For U.S.-domiciled funds, separate star ratings are provided at the individual share class level. The Nomura “star rating” is based on three-year risk-adjusted performance only. Funds with fewer than three years of history are not rated and hence excluded from these rankings. All ratings, the assigned peer
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categories and the asset values used to derive these rankings are sourced from the applicable fund rating provider. Where applicable, the fund rating providers redenominate asset values into U.S. dollars. The percentage of AUM is based on star ratings at the share class level for U.S.-domiciled funds, and at a “primary share class” level to represent the star rating of all other funds, except for Japan, for which Nomura provides ratings at the fund level. The performance data may have been different if all share classes had been included. Past performance is not indicative of future results.
Percentage of mutual fund assets under management in funds ranked in the 1st or 2nd quartile (one, three, and five years): All quartile rankings, the assigned peer categories and the asset values used to derive these rankings are sourced from the fund rating providers. Quartile rankings are based on the net-of-fee absolute return of each fund. Where applicable, the fund rating providers redenominate asset values into U.S. dollars. The percentage of AUM is based on fund performance and associated peer rankings at the share class level for U.S.-domiciled funds, at a “primary share class” level to represent the quartile ranking for U.K., Luxembourg and Hong Kong funds and at the fund level for all other funds. The performance data may have been different if all share classes had been included. Past performance is not indicative of future results.
Primary share class” means the C share class for European funds and Acc share class for Hong Kong and Taiwan funds. If these share classes are not available, the oldest share class is used as the primary share class.
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Item 3.    Quantitative and Qualitative Disclosures About Market Risk.
Refer to the Market Risk Management section of Management’s discussion and analysis and pages 133-140131-138 of JPMorgan Chase’s 20212022 Form 10-K for a discussion of the quantitative and qualitative disclosures about market risk.
Item 4.    Controls and Procedures.
As of the end of the period covered by this report, an evaluation was carried out under the supervision and with the participation of the Firm’s management, including its Chairman and Chief Executive Officer and its Chief Financial Officer, of the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934). Based on that evaluation, the Chairman and Chief Executive Officer and the Chief Financial Officer concluded that these disclosure controls and procedures were effective. Refer to Exhibits 31.1 and 31.2 for the Certifications furnished by the Chairman and Chief Executive Officer and Chief Financial Officer, respectively.
The Firm is committed to maintaining high standards of internal control over financial reporting. Nevertheless, because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Deficiencies or lapses in internal controls may occur from time to time, and there can be no assurance that any such deficiencies will not result in significant deficiencies or material weaknesses in internal control in the future and collateral consequences therefrom. Refer to “Management’s report on internal control over financial reporting” on page 156155 of JPMorgan Chase’s 20212022 Form 10-K for further information. There
On May 1, 2023, the Firm acquired certain assets and assumed certain liabilities of First Republic Bank from the FDIC. The Firm has included internal controls over these acquired assets and assumed liabilities in its evaluation of the effectiveness of disclosure controls and procedures. Otherwise, there was no change in the Firm’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) that occurred during the three months ended SeptemberJune 30, 2022,2023, that has materially affected, or is reasonably likely to materially affect, the Firm’s internal control over financial reporting.
Part II – Other Information
Item 1. Legal Proceedings.
Refer to the discussion of the Firm’s material legal proceedings in Note 2426 of this Form 10-Q for information that updates the disclosures set forth under Part I, Item 3: Legal Proceedings, in JPMorgan Chase’s 20212022 Form 10-K.
Item 1A. Risk Factors.
Refer toThe following discussion supplements the discussion of risk factors affecting the Firm as set forth in Part I, Item 1A: Risk Factors on pages 9-339-32 of JPMorgan Chase’s 20212022 Form 10-K and Forward-Looking Statements on page 8995 of this Form 10-Q for a10-Q. The discussion of certain risk factors, affectingas so supplemented, sets forth the material risk factors that could affect JPMorgan Chase’s financial condition and operations. Readers should not consider any descriptions of such factors to be a complete set of all potential risks that could affect the Firm.
JPMorgan Chase’s acquisition of certain assets and liabilities of First Republic Bank may not result in all of the benefits anticipated.
On May 1, 2023, JPMorgan Chase Bank, N.A. acquired certain assets and assumed certain liabilities of First Republic Bank from the FDIC (the “First Republic acquisition”). There can be no assurance that the First Republic acquisition will have the anticipated positive results, including with respect to:
the total cost of integration
the time required to complete the integration
the amount of longer-term cost savings
the overall performance of the assets and liabilities acquired in the First Republic acquisition, or
an improved price for JPMorgan Chase’s common stock.
Integration of an acquired business can be complex and costly, and typically will involve the combination of relevant accounting and data processing systems and management controls, as well as managing relevant relationships with employees, clients, suppliers and other business partners. Integration efforts could divert management attention and resources, which could adversely affect JPMorgan Chase’s operations or results. In addition, JPMorgan Chase could incur unanticipated costs or losses in connection with the First Republic acquisition and its integration efforts.
Acquisitions may also result in business disruptions that cause JPMorgan Chase to lose clients and customers, or cause clients and customers to move their business to competing financial institutions. It is possible that the integration process could result in the disruption of ongoing businesses or inconsistencies in standards, controls, procedures and policies that could adversely affect JPMorgan Chase’s ability to maintain relationships with clients, customers, depositors and employees. In addition, the loss of key employees in connection with the First Republic acquisitioncould adversely affect JPMorgan Chase’s ability to successfully conduct its business.
Supervision and regulation
Refer to the Supervision and regulation section on pages 4–8 of JPMorgan Chase’s 20212022 Form 10-K for information on Supervision and Regulation.
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.
The Firm did not have any unregistered sale of equity securities during the three months ended SeptemberJune 30, 2022.2023.
Repurchases under the common share repurchase program
Refer to Capital Risk Management on pages 45-5048-53 of this Form 10-Q and pages 86-96 of JPMorgan Chase’s 20212022 Form 10-K for information regarding repurchases under the Firm’s common share repurchase program.
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.
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.Directors.



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Shares repurchased pursuant to the common share repurchase program during the ninesix months ended SeptemberJune 30, 20222023 were as follows.
Nine months ended September 30, 2022Total 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 quarter18,106,991 $138.04 $2,500 $9,052 
Second quarter4,981,047 $124.88 $622 $29,633 (b)(c)
   July— — — — 
   August— — — — 
   September— — — — 
Third quarter— — — — 
Year-to-date23,088,038 $135.20 $3,122 $29,633 (c)
Six months ended June 30, 2023Total 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)(b)
First quarter21,995,253 $133.67 $2,940 $26,693 
April5,327,553 $134.39 $716 $25,977 
May6,251,030 136.77 855 25,122 
June5,132,716 140.66 722 24,400 
Second quarter16,711,299 $137.20 $2,293 $24,400 
Year-to-date38,706,552 $135.19 $5,233 $24,400 
(a)Excludes excise tax and commissions cost. As part of the Inflation Reduction Act of 2022, a 1% excise tax was imposed on net share repurchases effective January 1, 2023.
(b)The remaining amount of $8.8 billion under the prior Board authorization was canceled when the $30 billion repurchase program was authorized by the Board of Directors effective May 1, 2022.
(c)Represents the amount remaining under the $30 billion repurchase program.
Item 3.    Defaults Upon Senior Securities.
None.
Item 4.    Mine Safety Disclosures.
Not applicable.
Item 5.    Other Information.
Director and executive officer trading arrangements
The following table provides information concerning Rule 10b5-1 trading arrangements adopted in the second quarter of 2023 by any director or any executive officer who is subject to the filing requirements of Section 16 of the Securities Exchange Act of 1934. These trading arrangements are intended to satisfy the affirmative defense of Rule 10b5-1(c). Certain of the Firm's directors and executive officers may participate in employee stock purchase plans, 401(k) plans or dividend reinvestment plans of the Firm that have been designed to comply with Rule 10b5-1(c). No non-Rule 10b5-1 trading arrangements were adopted by any director or executive officer during the second quarter of 2023. Additionally, no Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were terminated by any director or executive officer in the second quarter of 2023.
NameTitleAdoption date
Duration(a)
Aggregate number of shares to be sold
Stacey FriedmanGeneral CounselMay 6, 2023May 6, 2023 - December 29, 20238,620 
Marianne LakeCo-CEO, CCBMay 12, 2023May 12, 2023 - December 29, 202332,243 
(a)Subject to compliance with Rule 10b5-1, duration could cease earlier than the final date shown above to the extent that the aggregate number of shares to be sold under the trading arrangement have been sold.

None.
Iran threat reduction disclosure
Pursuant to Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012, which added Section 13(r) to the Securities Exchange Act of 1934, an issuer is required to disclose in its annual or quarterly reports, as applicable, whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with individuals or entities designated pursuant to certain Executive Orders. Disclosure may be required even where the activities, transactions or dealings were conducted in compliance with applicable law. As of the date of this report, the Firm is not aware of any activity, transaction or dealing by any of its affiliates during the quarter ended June 30, 2023 that requires disclosure under Section 219.

During the first quarter of 2023, a foreign-incorporated subsidiary of JPMorgan Chase & Co. processed a transaction in the amount of EUR 9.90 for its client, a non-U.S. subsidiary of a U.S. insurance provider, where the transaction originated from an external account held by an individual designated under 31 C.F.R. Part 594. The transaction, which was received into the client’s account held at the foreign-incorporated subsidiary of JPMorgan Chase & Co., was for the premium of a non-life insurance product that is now suspended and no funds were made available to the designated individual. The transaction was processed in error. JPMorgan Chase & Co. charged a fee of $0.006 for this transaction. JPMorgan Chase & Co. does not intend to engage in such transactions in the future.





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Item 6.    Exhibits.
Exhibit No.Description of Exhibit
15
22
31.1
31.2
32
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)
104Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).
(a)Filed herewith.
(b)Furnished herewith. This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
(c)Pursuant to Rule 405 of Regulation S-T, includes the following financial information included in the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended SeptemberJune 30, 2022,2023, formatted in XBRL (eXtensible Business Reporting Language) interactive data files: (i) the Consolidated statements of income (unaudited) for the three and ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, (ii) the Consolidated statements of comprehensive income (unaudited) for the three and ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, (iii) the Consolidated balance sheets (unaudited) as of SeptemberJune 30, 2022,2023, and December 31, 2021,2022, (iv) the Consolidated statements of changes in stockholders’ equity (unaudited) for the three and ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, (v) the Consolidated statements of cash flows (unaudited) for the ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, and (vi) the Notes to Consolidated Financial Statements (unaudited).
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SIGNATURE



Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
JPMorgan Chase & Co.
(Registrant)

By:/s/ Elena Korablina
Elena Korablina
Managing Director and Firmwide Controller
(Principal Accounting Officer)

Date:NovemberAugust 3, 20222023





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