~~0000019617FALSE2023Q112/31truefalsehttp://fasb.org/us-gaap/2022#NoninterestIncomeOtherhttp://fasb.org/us-gaap/2022#NoninterestIncomeOther~~0000019617us-gaap:ExternalCreditRatingInvestmentGradeMember2024-03-31

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

the Securities Exchange Act of 1934

For the quarterly period ended

Commission file

March 31, ~~2023~~2024

number

1-5805

JPMorgan Chase & Co.

(Exact name of registrant as specified in its charter)


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

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

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

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


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	JPM	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-Cumulative Preferred Stock, Series DD	JPM PR D	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-Cumulative Preferred Stock, Series EE	JPM PR C	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-Cumulative Preferred Stock, Series GG	JPM PR J	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.55% Non-Cumulative Preferred Stock, Series JJ	JPM PR K	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.625% Non-Cumulative Preferred Stock, Series LL	JPM PR L	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.20% Non-Cumulative Preferred Stock, Series MM	JPM PR M	The New York Stock Exchange
Alerian MLP Index ETNs due May 24, 2024	AMJ	NYSE Arca, Inc.
Guarantee of Callable Fixed Rate Notes due June 10, 2032 of JPMorgan Chase Financial Company LLC	JPM/32	The New York Stock Exchange
Guarantee of Alerian MLP Index ETNs due January 28, 2044 of JPMorgan Chase Financial Company LLC	AMJB	NYSE Arca, Inc.

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

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

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


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

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

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

Number of shares of common stock outstanding as of March 31, ~~2023: 2,922,288,509~~2024: 2,871,667,879

FORM 10-Q

TABLE OF CONTENTS

Part I – Financial information

Page

Item 1.

Financial Statements.

Consolidated Financial Statements – JPMorgan Chase & Co.:

Consolidated statements of income (unaudited) for the three months ended March ~~months ended~~3 1 , 202 4 ~~March 31,~~and 202 3 ~~and 202~~2

7983

Consolidated statements of comprehensive income (unaudited) for the ~~thr~~eethree months ended March ~~31, 2023~~ 3 1 , 202 4 and 202 23

8084

Consolidated balance sheets (unaudited) at March ~~31, 2023~~ 3 1 , 202 4 and December 31, 202 23

8185

Consolidated statements of changes in stockholders’ equity (unaudited) for the ~~thre~~three e months ended MMarch ~~arch 31, 2023~~ 3 1 , 202 4 and 202 23

8286

Consolidated statements of cash flows (unaudited) for the three months ended March ~~31, 2023~~ 3 1 , 202 4 and 202 23

8387

Notes to Consolidated Financial Statements (unaudited)

8488

Report of Independent Registered Public Accounting Firm

~~166~~174

Consolidated Average Balance Sheets, Interest and Rates (unaudited) for the three months ended March ~~31, 2023~~ 3 1 , 202 4 and 202 23

~~167~~175

Glossary of Terms and Acronyms and Line of Business Metrics

~~168~~176

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Consolidated Financial Highlights

Introduction

Executive Overview

Consolidated Results of Operations

Consolidated Balance Sheets and Cash Flows Analysis

Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures

Business Segment Results

Firmwide Risk Management

3537

Capital Risk Management

3638

Liquidity Risk Management

4244

Consumer Credit Portfolio

5054

Wholesale Credit Portfolio

5458

Investment Portfolio Risk Management

6670

Market Risk Management

6771

Country Risk Management

7377

Critical Accounting Estimates Used by the Firm

7478

Accounting and Reporting Developments

7781

Forward-Looking Statements

7882

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

~~177~~185

Item 4.

Controls and Procedures.

~~177~~185

Part II – Other information

Item 1.

Legal Proceedings.

~~177~~185

Item 1A.

Risk Factors.

~~177~~185

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

~~177~~185

Item 3.

Defaults Upon Senior Securities.

~~178~~186

Item 4.

Mine Safety Disclosures.

~~178~~186

Item 5.

Other Information.

~~178~~186

Item 6.

Exhibits.

~~178~~187

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)
		1Q23			4Q22			3Q22			2Q22			1Q22
As of or for the period ended, (in millions, except per share, ratio, employee data and where otherwise noted)

As of or for the period ended, (in millions, except per share, ratio, employee data and where otherwise noted)

1Q24
1Q24
Selected income statement data
Selected income statement data
Selected income statement data	Selected income statement data
Total net revenue	Total net revenue	$	38,349		$	34,547		$	32,716		$	30,715		$	30,717
Total net revenue
Total net revenue
Total noninterest expense
Total noninterest expense
Total noninterest expense	Total noninterest expense	20,107			19,022			19,178			18,749			19,191
Pre-provision profit(a)	Pre-provision profit(a)	18,242			15,525			13,538			11,966			11,526
Pre-provision profit(a)
Pre-provision profit(a)
Provision for credit losses
Provision for credit losses
Provision for credit losses	Provision for credit losses	2,275			2,288			1,537			1,101			1,463
Income before income tax expense	Income before income tax expense	15,967			13,237			12,001			10,865			10,063
Income before income tax expense
Income before income tax expense
Income tax expense	Income tax expense	3,345			2,229			2,264			2,216			1,781
Income tax expense
Income tax expense
Net income
Net income
Net income	Net income	$	12,622		$	11,008		$	9,737		$	8,649		$	8,282

Earnings per share data	Earnings per share data

Earnings per share data

Earnings per share data
Net income: Basic
Net income: Basic
Net income: Basic	Net income: Basic	$	4.11		$	3.58		$	3.13		$	2.77		$	2.64
Diluted	Diluted	4.10			3.57			3.12			2.76			2.63
Diluted
Diluted
Average shares: Basic	Average shares: Basic	2,968.5			2,962.9			2,961.2			2,962.2			2,977.0
Average shares: Basic
Average shares: Basic
Diluted
Diluted
Diluted	Diluted	2,972.7			2,967.1			2,965.4			2,966.3			2,981.0

Market and per common share data	Market and per common share data

Market and per common share data

Market and per common share data
Market capitalization
Market capitalization
Market capitalization	Market capitalization	380,803			393,484			306,520			330,237			400,379
Common shares at period-end	Common shares at period-end	2,922.3			2,934.3			2,933.2			2,932.6			2,937.1
Common shares at period-end
Common shares at period-end
Book value per share
Book value per share
Book value per share	Book value per share	94.34			90.29			87.00			86.38			86.16
Tangible book value per share (“TBVPS”)(a)	Tangible book value per share (“TBVPS”)(a)	76.69			73.12			69.90			69.53			69.58
Tangible book value per share (“TBVPS”)(a)
Tangible book value per share (“TBVPS”)(a)
Cash dividends declared per share
Cash dividends declared per share
Cash dividends declared per share	Cash dividends declared per share	1.00			1.00			1.00			1.00			1.00

Selected ratios and metrics	Selected ratios and metrics

Selected ratios and metrics

Selected ratios and metrics
Return on common equity (“ROE”)(b)
Return on common equity (“ROE”)(b)
Return on common equity (“ROE”)(b)	Return on common equity (“ROE”)(b)	18		%	16		%	15		%	13		%	13		%
Return on tangible common equity (“ROTCE”)(a)(b)	Return on tangible common equity (“ROTCE”)(a)(b)	23			20			18			17			16
Return on tangible common equity (“ROTCE”)(a)(b)
Return on tangible common equity (“ROTCE”)(a)(b)
Return on assets(b)
Return on assets(b)
Return on assets(b)	Return on assets(b)	1.38			1.16			1.01			0.89			0.86
Overhead ratio	Overhead ratio	52			55			59			61			62
Overhead ratio
Overhead ratio
Loans-to-deposits ratio
Loans-to-deposits ratio
Loans-to-deposits ratio	Loans-to-deposits ratio	47			49			46			45			42
Firm Liquidity coverage ratio (“LCR”) (average)	Firm Liquidity coverage ratio (“LCR”) (average)	114			112			113			110			110
Firm Liquidity coverage ratio (“LCR”) (average)
Firm Liquidity coverage ratio (“LCR”) (average)
JPMorgan Chase Bank, N.A. LCR (average)	JPMorgan Chase Bank, N.A. LCR (average)	140			151			165			169			181
Common equity Tier 1 (“CET1”) capital ratio(c)		13.8			13.2			12.5			12.2			11.9
Tier 1 capital ratio(c)		15.4			14.9			14.1			14.1			13.7
Total capital ratio(c)		17.4			16.8			16.0			15.7			15.4
JPMorgan Chase Bank, N.A. LCR (average)
JPMorgan Chase Bank, N.A. LCR (average)
Common equity Tier 1 (“CET1”) capital ratio (c)(d)
Common equity Tier 1 (“CET1”) capital ratio (c)(d)
Common equity Tier 1 (“CET1”) capital ratio (c)(d)
Tier 1 capital ratio(c)(d)
Tier 1 capital ratio(c)(d)
Tier 1 capital ratio(c)(d)
Total capital ratio(c)(d)
Total capital ratio(c)(d)
Total capital ratio(c)(d)
Tier 1 leverage ratio(c)	Tier 1 leverage ratio(c)	6.9			6.6			6.2			6.2			6.2
Tier 1 leverage ratio(c)
Tier 1 leverage ratio(c)
Supplementary leverage ratio (“SLR”)(c)
Supplementary leverage ratio (“SLR”)(c)
Supplementary leverage ratio (“SLR”)(c)	Supplementary leverage ratio (“SLR”)(c)	5.9			5.6			5.3			5.3			5.2

Selected balance sheet data (period-end)	Selected balance sheet data (period-end)

Selected balance sheet data (period-end)

Selected balance sheet data (period-end)
Trading assets
Trading assets
Trading assets	Trading assets	$	578,892		$	453,799		$	506,487		$	465,577		$	511,528
Investment securities, net of allowance for credit losses	Investment securities, net of allowance for credit losses	610,075			631,162			618,246			663,718			679,460
Investment securities, net of allowance for credit losses
Investment securities, net of allowance for credit losses
Loans
Loans
Loans	Loans	1,128,896			1,135,647			1,112,633			1,104,155			1,073,285
Total assets	Total assets	3,744,305			3,665,743			3,773,884			3,841,314			3,954,687
Total assets
Total assets
Deposits
Deposits
Deposits	Deposits	2,377,253			2,340,179			2,408,615			2,471,544			2,561,207
Long-term debt	Long-term debt	295,489			295,865			287,473			288,212			293,239
Long-term debt
Long-term debt
Common stockholders’ equity
Common stockholders’ equity
Common stockholders’ equity	Common stockholders’ equity	275,678			264,928			255,180			253,305			253,061
Total stockholders’ equity	Total stockholders’ equity	303,082			292,332			288,018			286,143			285,899
Headcount		296,877			293,723			288,474			278,494			273,948
Total stockholders’ equity
Total stockholders’ equity
Employees
Employees
Employees

Credit quality metrics

Credit quality metrics

Credit quality metrics	Credit quality metrics
Allowances for credit losses	Allowances for credit losses	$	22,774		$	22,204		$	20,797		$	20,019		$	19,591
Allowances for credit losses
Allowances for credit losses
Allowance for loan losses to total retained loans
Allowance for loan losses to total retained loans
Allowance for loan losses to total retained loans	Allowance for loan losses to total retained loans	1.85		%	1.81		%	1.70		%	1.69		%	1.69		%
Nonperforming assets	Nonperforming assets	$	7,418		$	7,247		$	7,243		$	7,845		$	8,605
Nonperforming assets
Nonperforming assets
Net charge-offs
Net charge-offs
Net charge-offs	Net charge-offs	1,137			887			727			657			582
Net charge-off rate	Net charge-off rate	0.43		%	0.33		%	0.27		%	0.25		%	0.24		%
Net charge-off rate
Net charge-off rate

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

(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 16-17 for a further discussion of these measures.

(b)~~Quarterly ratios~~Ratios are based upon annualized amounts.

(c)The ratios reflect the Current Expected Credit Losses (“CECL”) capital transition provisions. Refer to Note 21 of this Form 10-Q and Note 27 of JPMorgan Chase’s 2023 Form 10-K for additional information.

(d)Reflects the Firm’s ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages ~~36-41 of this Form 10-Q and pages 86-96 of JPMorgan Chase’s 2022 Form 10-K~~38-43 for additional information.

INTRODUCTION

The following is Management’s discussion and analysis of the financial condition and results of operations (“MD&A”) of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) for the first quarter of ~~2023.~~2024.

This Quarterly Report on Form 10-Q for the first quarter of ~~2023~~2024 (“Form 10-Q”) should be read together with JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023 (“~~2022~~2023 Form 10-K”). Refer to the Glossary of terms and acronyms and line of business metrics on pages ~~168-176~~176-184 for definitions of terms and acronyms used throughout this Form 10-Q.

This Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-Q and are subject to significant risks and uncertainties. Refer to Forward-looking Statements on page 78 82of this Form ~~10-Q;~~10-Q and Part I, Item 1A, Risk Factors on pages ~~9-32~~9-33 of the ~~2022~~2023 Form ~~10-K; and Part II, Item 1A, Risk Factors on page 177 of this Form 10-Q~~10-K for a discussion of certain of those risks and uncertainties and the factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results will be in line with any outlook information set forth herein, and the Firm does not undertake to update any forward-looking statements.

JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had ~~$3.7~~$4.1 trillion in assets and ~~$303.1~~$336.6 billion in stockholders’ equity as of March 31, ~~2023.~~2024. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers, predominantly in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally.

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

For management reporting purposes, the Firm’s activities are organized into four major reportable business segments, as well as a Corporate segment. The Firm’s consumer business ~~segment~~ is the Consumer & Community Banking (“CCB”). segment. The Firm’s wholesale ~~business segments~~businesses are the Corporate & Investment Bank (“CIB”), Commercial Banking (“CB”), and Asset & Wealth Management (“AWM”). segments. Refer to Business Segment Results on pages ~~18-34~~18-36 and Note 25 of this Form 10-Q, and Note 32 of JPMorgan Chase’s ~~2022~~2023 Form 10-K, for a description of the Firm’s business segments and the products and services they provide to their respective client bases. As a result of the organizational changes announced on January 25, 2024, the Firm will be reorganizing its business segments to reflect the manner in which the segments will be managed. The reorganization of the business segments will be effective in the second quarter of 2024. Refer to Recent events on page 52 of JPMorgan Chase's 2023 Form 10-K for additional information.

On May 1, 2023, JPMorgan Chase acquired ~~the substantial majority of~~certain assets and assumed ~~the deposits and~~ certain ~~other~~ liabilities of First Republic Bank (the “First Republic acquisition”) from the Federal Deposit Insurance Corporation (“~~the Acquisition”~~FDIC”). ~~The financial information and other disclosures contained~~All references in this Form 10-Q ~~do not give effect~~ to “excluding First Republic,” “including First Republic,” “associated with First Republic” or “attributable to First Republic” refer to excluding or including the ~~Acquisition.~~relevant effects of the First Republic acquisition, as well as subsequent related business and activities, as applicable. Refer to Note 26 for additional information.

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

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 ~~2022~~2023 Form 10-K should be read together and in their entirety.

Financial performance of JPMorgan Chase

(unaudited)

As of or for the period ended,

(in millions, except per share data and ratios)

(unaudited)

As of or for the period ended,

(in millions, except per share data and ratios)

Three months ended March 31,

2023

2022

Change

(unaudited)

As of or for the period ended,

(in millions, except per share data and ratios)

2024

Selected income statement data

Noninterest revenue

17,638

16,845

Noninterest revenue

Net interest income

20,711

13,872

Total net revenue

38,349

30,717

Total net revenue

Total noninterest expense

20,107

19,191

Pre-provision profit

18,242

11,526

Pre-provision profit

Provision for credit losses

2,275

1,463

Net income

12,622

8,282

Net income

Diluted earnings per share

4.10

2.63

Selected ratios and metrics

Return on common equity

18%

13%

Return on tangible common equity

Book value per share

94.34

86.16

Tangible book value per share

76.69

69.58

Capital ratios(a)

Tangible book value per share

Capital ratios(a)(b)

CET1 capital

13.8%

11.9%

Tier 1 capital

15.4

13.7

Tier 1 capital

Total capital

17.4

15.4

Memo:

NII excluding Markets(b)

20,936

11,752

NIR excluding Markets(b)

10,018

11,085

(10)

Markets(b)

8,382

8,753

(4)

Memo:

NII excluding Markets(c)

NIR excluding Markets(c)

Markets(c)

Total net revenue - managed basis

39,336

31,590

Total net revenue - managed basis

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

(a)The ratios reflect the CECL capital transition provisions. Refer to ~~Capital Risk Management on pages 36-41~~Note 21 of this Form 10-Q and ~~pages 86-96~~Note 27 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for additional information.

(b)Reflects the Firm’s ratios under the Basel III Standardized approach. Refer to Capital Risk Management on pages 38-43 for additional information.

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

Comparisons noted in the sections below are for the first quarter of ~~2023~~2024 versus the first quarter of ~~2022,~~2023, unless otherwise specified.

Firmwide overview

For the first quarter of ~~2023,~~2024, JPMorgan Chase reported net income of ~~$12.6~~$13.4 billion, up ~~52%~~6%, earnings per share of ~~$4.10,~~$4.44, ROE of ~~18%~~17% and ROTCE of ~~23%~~21%. The Firm's results included a $725 million increase to the FDIC special assessment in Corporate.

•Total net revenue was ~~$38.3~~$41.9 billion, up ~~25%~~9%, reflecting:

–Net interest income ("NII") of ~~$20.7~~$23.1 billion, up ~~49%~~11%, driven by the acquisition of First Republic, the impact of balance sheet mix and higher rates, as well as higher revolving balances in Card Services, partially offset by ~~lower Markets net interest income~~deposit margin compression, and lower average deposit ~~balances. Net interest income~~balances in CCB. NII excluding Markets was ~~$20.9~~$23.0 billion, up ~~78%~~10%.

–Noninterest revenue ("NIR") was ~~$17.6~~$18.9 billion, up 5%7%, driven by higher ~~principal transactions revenue in Markets, predominantly offset by higher~~asset management fees, lower net investment

securities losses in Treasury and CIO, ~~lower Investment Banking~~the impact of First Republic and higher investment banking fees, ~~lower auto operating lease income and lower production revenue in Home Lending.~~

–~~Total Markets revenue declined reflecting~~partially offset by lower Markets ~~NII, predominantly offset by higher NIR.~~noninterest revenue.

•Noninterest expense was ~~$20.1~~$22.8 billion, up 5%13%, driven by higher ~~structural expense and continued investments in the business, primarily~~ compensation expense, ~~reflecting headcount growth and wage inflation, as well as~~including an increase in employees, the impact of First Republic and the $725 million increase to the FDIC special assessment in ~~the Federal Deposit Insurance Corporation ("FDIC") assessment that was announced in 2022, partially offset by lower auto lease depreciation.~~Corporate.

•The provision for credit losses was ~~$2.3~~$1.9 billion, reflecting a$2.0 billion of net ~~addition~~charge-offs. Net charge-offs increased $819 million, predominantly driven by CCB, primarily Card Services.

The prior year included net charge-offs of $1.1 billion ~~to the allowance for credit losses~~ and a $1.1 billion ~~of net charge-offs. T~~he net addition to the allowance for credit losses was predominantly driven by a deterioration in the Firm's weighted-average economic outlook, including the impact from changes to the Firm's macroeconomic scenarios and increased probability of a moderate recession due to tightening financial conditions, and consisted of:

–~~$726 million in wholesale, which also reflected net downgrade activity, and $416 million in consumer.~~

~~Net charge-offs were up $555 million predominantly driven by CCB, reflecting continued normalization in delinquencies.~~

~~The prior year included a $902 million net addition to the allowance for credit losses and net charge-offs of $582 million.~~losses.

•The total allowance for credit losses was ~~$22.8~~$24.7 billion at March 31, ~~2023.~~2024. The Firm had an allowance for loan losses to retained loans coverage ratio of ~~1.85%~~1.77%, compared with ~~1.69%~~1.85% in the prior year.

•The Firm’s nonperforming assets totaled ~~$7.4~~$8.3 billion at March 31, ~~2023, a net decrease of $1.2 billion, predominantly~~2024, up 11%, driven by ~~lower consumer~~wholesale nonaccrual loans, ~~reflecting paydowns~~which reflects downgrades in Real Estate, concentrated in Office, and ~~loan sales,~~the impact of First Republic. Refer to Wholesale Credit Portfolio and ~~lower nonperforming derivative receivables.~~Consumer Credit Portfolio on pages 58-66 and pages 54-57, respectively, for additional information.

•Firmwide average loans of ~~$1.1~~$1.3 trillion were up 6%16%, predominantly driven by higher loans in ~~CB,~~ CCB and ~~CIB, partially offset by lower loans in AWM.~~

•~~Firmwide~~ ~~average deposits~~ ~~of $2.3 trillion were down 8%, predominantly driven by:~~

–~~declines in CIB and~~ CB, ~~due to attrition and in AWM due to migration into higher-yielding investments~~primarily as a result of ~~the rising interest rate environment, partially offset by net issuances of structured notes in CIB~~,

–~~a decline in CCB from existing accounts primarily due to migration to higher-yielding investments and increased customer spending,~~ ~~and~~First Republic.

•Firmwide average deposits of $2.4 trillion were up 2%, driven by:

–growth in CIB due to net issuances of structured notes as a result of client demand, and net inflows in Payments and Securities Services,

–the impact of First Republic, and

–an increase in Corporate related to the Firm's ~~ongoing~~ international consumer initiatives,

largely offset by

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

~~Period-end deposits~~ ~~were up reflecting inflows in March 2023 as a result of~~ ~~disruptions in the market related~~Refer to ~~recent bank failures.~~Liquidity Risk Management on pages 44-51 for additional information.

Selected capital and other metrics

•CET1 capital was ~~$227~~$258 billion, and the Standardized and Advanced CET1 ratios were ~~13.8%~~15.0% and ~~13.9%~~15.3%, respectively.

•SLR was ~~5.9%~~6.1%.

•TBVPS grew ~~10%~~15%, ending the first quarter of ~~2023~~2024 at ~~$76.69.~~$88.43.

•As of March 31, ~~2023,~~2024, the Firm had ~~average~~ eligible end-of-period High Quality Liquid Assets (“HQLA”) of approximately ~~$732~~$823 billion andunencumbered marketable securities with a fair value of approximately ~~$700~~$673 billion, resulting in approximately ~~$1.4~~$1.5 trillion of liquidity sources. Refer to Liquidity Risk Management on pages ~~42-47~~44-51 for additional information.

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

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

Business segment highlights

Selected business metrics for each of the Firm’s four lines of business ("LOB") are presented below for the first quarter of ~~2023.~~2024, and include the impact of First Republic, unless otherwise specified.


CCB ROE ~~40%~~ 35%						•Average deposits down ~~4%;~~3%, or down 7% excluding First Republic; client investment assets ~~down 1%~~up 46%, or up 25% excluding First Republic •Average loans up ~~5% year-over-year ("YoY") and flat quarter-over-quarter ("QoQ");~~27%, or up 6% excluding First Republic; Card Services net charge-off rate of ~~2.07%~~3.32% •Debit and credit card sales volume(a) up ~~10%~~9% •Active mobile customers(b) up 9%7%
CIB ROE ~~16%~~ 18%						•#1 ranking for Global Investment Banking fees with ~~8.7%~~9.1% wallet share in 1Q24 •~~Total~~ Markets revenue ~~of $8.4 billion,~~ down 4%5%, with Fixed Income Markets ~~flat~~down 7% and Equity Markets ~~down 12%~~flat
CB ROE ~~18%~~ 24%						•Gross Investment Banking and Markets(c)revenue of ~~$881~~$913 million, up ~~21%~~4% •Average loans up ~~13% YoY and~~17%, or up 1% ~~QoQ;~~excluding First Republic; average deposits flat, or down ~~16%~~3% excluding First Republic
AWM ROE ~~34%~~ 33%						•Assets under management ("AUM") of ~~$3.0~~$3.6 trillion, up 2%19% •Average loans ~~down~~up 6%, or up 1% ~~YoY and QoQ;~~excluding First Republic; average deposits up 2%, or down ~~22%~~4% excluding First Republic

(a)Excludes Commercial Card.

(b)Users of all mobile platforms who have logged in within the past 90 days. Excludes First Republic.

(c)Includes gross revenues earned by the Firm that are subject to a revenue sharing arrangement between CB and the CIB for Investment Banking and Markets products sold to CB clients. This includes revenues related to fixed income and equity markets products. Refer to page 65 of the Firm’s 2023 Form 10-K for a discussion of revenue sharing.

Refer to the Business Segment Results on pages ~~18-34~~18-36 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 three months of ~~2023,~~2024, consisting ~~of:~~of approximately:


$~~588~~655 billion						Total credit provided and capital raised (including loans and commitments)

$57 55 billion						Credit for consumers

$9 10 billion						Credit for U.S. small businesses

$~~232~~575 billion						~~Credit for corporations~~

~~$280 billion~~						~~Capital raised for corporate clients and non-U.S. government entities~~

$10 billion						Credit and capital ~~raised~~for corporations and non-U.S. government entities(a)

$15 billion						Credit and capital for nonprofit and U.S. government entities~~(a)~~(b)

(a)Credit and capital for corporations and non-U.S. government entities include Individuals and Individual Entities primarily consisting of Global Private Bank clients within AWM.

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

Recent events

•On ~~May 1, 2023,~~April 8, 2024, JPMorgan Chase announced that two of its directors, Timothy P. Flynn and Michael A. Neal, had decided to retire from the Board of Directors of the Firm acquired the substantial majority of assets and assumed the deposits and certain other liabilities of First Republic Bank from the FDIC (the “Acquisition”). The Firm believes that the Acquisition will be accretive to earnings, will help to further advance the Firm’s wealth management strategy, and is expected to be complementary to the Firm’s existing franchises.

The FDIC will provide loss sharing agreements with respect to the following loans acquired in the Acquisition: 80% of losses on single-family residential mortgage loans will be covered for seven years, and 80% of losses on commercial loans will be covered for five years.

The Firm is estimating the impact that the Acquisition will have on its financial statements, and expects to record an estimated $2.6 billion post-tax bargain purchase gain in connection with the Acquisition. The Firm also expects to recognize restructuring costs of approximately $2.0 billion over the course of 2023 and 2024. The Firm expects that these estimates will be further refined over the purchase accounting measurement period.

The Firm will repay the $25 billion of deposits placed by large U.S. banks with First Republic Bank on March 16, 2023. The Firm will eliminate its $5 billion deposit in consolidation and release the associated allowance for credit losses.

~~The financial information and other disclosures contained in this Form 10-Q do not give effect to the Acquisition.~~ ~~Refer to Note 26 for~~ ~~additional information concerning the Acquisition.~~when their terms expire.

•On ~~March 24, 2023, JPMorgan Chase obtained final approval from China’s State Administration~~April 8, 2024, Visa commenced an initial exchange offer expiring on May 3, 2024, for ~~Market Regulation~~any and all outstanding shares of Visa Class B-1 common stock (“Visa B-1 shares”). Holders participating in the exchange offer would receive a combination of Visa Class B-2 common stock (“Visa B-2 shares”) and Visa Class C common stock (“Visa C shares”) in exchange for Visa B-1 shares that are validly tendered and accepted for exchange by Visa. The Firm has tendered its 37.2 million Visa B-1 shares, and that tender is pending Visa’s acceptance. Upon acceptance by Visa of the Firm’s tender, the Visa C shares received by the Firm would be recognized at fair value, which is expected to ~~complete its acquisition~~result in a gain that may be recorded as early as the second quarter of ~~China International Fund Management Co., Ltd. ("CIFM").~~

•~~On March 22, 2023, JPMorgan Chase announced that it had entered into a definitive agreement~~2024. Refer to ~~acquire Aumni, a provider of investment analytics software.~~Note 2 for additional information.

Outlook

These current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-Q, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page ~~78,~~82of this Form 10-Q and ~~page 154 and~~Part I, Item 1A, Risk Factors on pages ~~9-32~~9-33 of the ~~Firm’s 2022~~2023 Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in ~~2023~~2024 will be in line with the outlook information set forth below, and the Firm does not undertake to update any forward-looking statements.

JPMorgan Chase’s current outlook for full-year ~~2023~~2024 should be viewed against the backdrop of the global and U.S. economies, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the U.S. and other countries where the Firm does business. Each of these factors will affect the performance of the Firm. The Firm will continue to make appropriate adjustments to its businesses and operations in response to ongoing developments in the business, economic, regulatory and legal environments in which it operates.

The Firm expects to be subject to a special assessment by the FDIC as a result of the estimated losses incurred by the Deposit Insurance Fund from recent bank failures. The FDIC has expressed its intent to issue a notice of proposed rulemaking related to the special assessment in May 2023.

~~The full-year 2023 outlook does not include the effects of the First Republic Bank acquisition.~~

Full-year ~~2023~~2024

•Management expects ~~both~~ net interest income to be approximately $90 billion and net interest income excluding Markets to be approximately ~~$81~~$89 billion, market dependent.

•Management expects adjusted expense to be approximately ~~$81~~$91 billion, market ~~dependent and excluding any FDIC special assessment.~~dependent.

•Management expects the net charge-off rate in Card Services to be ~~approximately 2.6%~~less than 3.50%.

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

Business Developments

First Republic acquisition

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

~~Refer~~JPMorgan Chase’s Consolidated Financial Statements as of and for the period ended March 31, 2024 reflect the impact of First Republic. Where meaningful to ~~Part I, Item 1A, Risk Factors on pages 9-32~~the disclosure, the impact of ~~JPMorgan Chase's 2022 Form 10-K~~the First Republic acquisition, as well as subsequent related business and ~~Part II, Item 1A, Risk Factors on~~ ~~page 177~~activities, are disclosed in various sections of this Form ~~10-Q for a discussion of material risk factors that could affect the Firm. These risk factors include potential impacts~~10-Q. The Firm continues to ~~the Firm~~convert certain operations, and to integrate clients, products and services, associated with ~~current market~~the First Republic acquisition to align with the Firm’s businesses and economic conditions, including inflationary pressures, rapidly rising interest rates, the failure of market participants and geopolitical tensions (including secondary effects of the war in Ukraine), any or all of which could result in additional market disruption, government actions (including with respect to monetary policies), ongoing impacts to global supply chains, and other geopolitical risks.

~~Interbank Offered Rate (“IBOR”) transition~~

operations. The Firm expects that these actions will be largely completed by the end of 2024.

Refer to Note 26 and ~~other market participants are preparing~~page 20 for the final stages of the transition from the use of the London Interbank Offered Rate (“LIBOR”) and other IBORs in accordance 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 U.S. dollar LIBOR (i.e., overnight, one-month, three-month, six-month and 12-month LIBOR) (“LIBOR Cessation”) is scheduled for June 30, 2023. On April 3, 2023, the U.K. Financial Conduct Authority announced that the one-month, three-month and six-month tenors of U.S. dollar LIBOR will continueadditional information related 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.~~First Republic.

Regulatory developments

On March ~~1, 2023,~~5, 2024, the Consumer Financial Protection Bureau issued a final rule that lowers the threshold at or below which large credit card issuers, including the Firm, ~~announced that, after June 30, 2023, CME Term SOFR will be the replacement reference rate~~can charge late fees to customers on a "safe harbor" basis. The final rule also eliminates an automatic annual inflation adjustment for ~~certain outstanding floating rate and fixed-to-floating rate debt securities, preferred stock and certificates~~large credit card issuers. The effective date of ~~deposit issued by JPMorgan Chase and certain of its subsidiaries that use U.S. dollar LIBOR as the reference rate and that are governed by New York or Delaware law.~~this rule is May 14, 2024. The Firm ~~is prepared~~does not expect a material impact to participate in initiatives by the principal central counterparties (“CCPs”) to convert cleared derivatives contracts linked to U.S. dollar LIBOR in the second quarter of 2023. The Firm continues its client outreach with respect to U.S. dollar LIBOR-linked products and continues to monitor and evaluate client, industry, market, regulatory and legislative developments. Refer to Business Developments on page 50 of JPMorgan Chase's 2022 Form 10-K for additional information.Firmwide net interest income.

CONSOLIDATED RESULTS OF OPERATIONS

This section provides a comparative discussion of JPMorgan Chase’s Consolidated Results of Operations on a reported basis for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, unless otherwise specified. Factors that relate primarily to a single business segment are discussed in more detail within that business segment's results. Refer to pages ~~74-76~~78-80 of this Form 10-Q and pages ~~149-152~~155–158 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.


Revenue	Revenue
		Three months ended March 31,
Revenue
Revenue
		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,
(in millions)
(in millions)
(in millions)	(in millions)	2023		2022		Change
Investment banking fees	Investment banking fees	$	1,649	$	2,008	(18)	%
Investment banking fees
Investment banking fees
Principal transactions
Principal transactions
Principal transactions	Principal transactions	7,615		5,105		49
Lending- and deposit-related fees	Lending- and deposit-related fees	1,620		1,839		(12)
Lending- and deposit-related fees
Lending- and deposit-related fees
Asset management fees	Asset management fees	3,465		3,652		(5)
Asset management fees
Asset management fees
Commissions and other fees
Commissions and other fees
Commissions and other fees	Commissions and other fees	1,695		1,710		(1)

Investment securities losses	Investment securities losses	(868)		(394)		(120)

Investment securities losses

Investment securities losses
Mortgage fees and related income
Mortgage fees and related income
Mortgage fees and related income	Mortgage fees and related income	221		460		(52)
Card income	Card income	1,234		975		27
Other income(a)		1,007		1,490		(32)
Card income
Card income
Other income(a)(b)
Other income(a)(b)
Other income(a)(b)
Noninterest revenue
Noninterest revenue
Noninterest revenue	Noninterest revenue	17,638		16,845		5
Net interest income	Net interest income	20,711		13,872		49
Net interest income
Net interest income
Total net revenue	Total net revenue	$	38,349	$	30,717	25	%
Total net revenue
Total net revenue

(a) Included operating lease income of ~~$755~~$672 million and ~~$1.0 billion~~$755 million for the three months ended March 31, 2024 and 2023, ~~and 2022,~~ respectively.

(b) ~~Also includes losses on~~Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm’s alternative energy tax-oriented ~~investments.~~investments that was previously recognized in other income is now being recognized in income tax expense. Refer to ~~Note~~Notes 1, 5 and 13 for additional information.

Quarterly results

Investment banking fees ~~decreased~~increased, reflecting in ~~CIB, reflecting lower~~CIB:

•higher underwriting fees that benefited from improved market conditions, and consisted of

–an increase in debt underwriting fees predominantly driven by higher industry-wide issuance in leveraged loans and high-yield bonds, as ~~challenging market conditions resulted~~well as higher issuance in high grade bonds reflecting wallet share gains, and

–an increase in equity underwriting fees driven by IPO and convertible securities offerings, reflecting wallet share gains,

partially offset by

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

Refer to CIBCIB segment results on pages ~~23-27~~24-28 and Note 5 for additional information.

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

•~~increased, reflecting:~~lower Fixed Income Markets revenue in Rates and Commodities, partially offset by higher revenue in Securitized Products,

•higher ~~net~~Equity Markets revenue in ~~Fixed Income Markets, driven by Rates benefiting from~~ ~~favorable market conditions early in the quarter~~Equity Derivatives and ~~elevated volatility in March 2023, as well as in Securitized Products~~Prime Finance, and ~~Fixed Income Financing, partially offset by lower revenue in Currencies & Emerging Markets~~ ~~compared to a strong prior year~~,

•~~in Equity Markets, higher revenue in principal transactions, particularly in Prime Finance and Equity Derivatives, which was more than offset by~~lower losses ~~in net interest income,~~

•~~a loss~~ of ~~$153~~$15 million in Credit Adjustments & Other ~~in CIB,~~ compared with ~~a loss~~losses of ~~$524~~$153 million in the prior ~~year,~~ ~~and~~

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

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

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

Lending- and deposit-related fees increased, reflecting:

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

•higher other lending- and deposit-related fees in CIB and CB.

Refer to CIB, CB and AWM segment results on pages ~~23-27~~24-28, pages 29-31 and pages ~~33-34,~~32-34, respectively, and Note 5 for additional information.

~~Lending- and deposit-related fees~~ ~~decreased due to lower cash management fees in CB and CIB associated with the higher level of credits earned by clients that reduce such fees.~~ ~~Refer to CIB and CB segment results on pages 23-27, pages 28-29 and Note 5 for additional information.~~

Asset management fees ~~decreased~~increased driven by ~~lower~~strong net inflows and higher average market levels ~~and lower performance fees, partially offset by~~ ~~the removal of most money market fund fee waivers~~in AWM and ~~to a lesser extent,~~CCB, as well as the impact of ~~lower market levels~~First Republic in CCB. Refer to CCB and AWM segment results on pages ~~30-32~~21-23 and pages 32-34, respectively, and Note 5 for additional information.

Commissions and other ~~fees:~~fees ~~refer~~increased predominantly due to higher commissions from annuity sales in CCB and higher custody fees associated with a higher level of assets under custody in CIB. Refer to CCB and CIB ~~and AWM segment~~Segment results on pages ~~23-27~~21-23 and pages ~~30-32~~24-28, respectively, and Note 5 for additional information.

Investment securities losses reflected ~~higher~~lower net losses on sales of U.S. GSE, ~~and~~ government agency MBS and U.S. Treasuries associated with repositioning the investment securities portfolio in Treasury and CIO. Refer to Corporate segment results on pages ~~33-34~~35-36 and Note 9 for additional information.

Mortgage fees and related income ~~decreased driven by~~increased in Home Lending, reflecting ~~lower~~higher production revenue, ~~from a decline in volume, and lower net mortgage servicing revenue due to a net loss compared with a net gain in~~ which included the ~~prior year in MSR risk management.~~ impact of First Republic. Refer to CCB segment results on pages ~~20-22~~21-23 and Notes 5 and 14 for additional information.

Card income ~~increased driven by:~~

•~~higher net interchange income largely~~decreased due to ~~a reduction~~an increase in ~~rewards costs and partner payments related to a periodic tax refund on airline miles redeemed, and higher annual fees, partially offset by higher amortization related to~~ new account origination costs, ~~in CCB, and~~

•largely offset by higher ~~payments-related revenue on volume~~annual fees, reflecting continued growth in ~~Commercial Card~~the portfolio, in ~~CIB.~~CCB.

Refer to CCB and ~~CIB~~CB segment results on pages ~~20-22~~21-23 and ~~pages 23-27~~page 29, respectively, and Note 5 for additional information.

~~Other income~~ de~~creased reflecting:~~

•~~the absence of a gain on an equity investment in the prior year in CIB,~~

•~~lower auto operating lease income in CCB from a decline in volume, and~~

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

~~partially offset by~~

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

Other income increased predominantly driven by the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance on January 1, 2024, resulting in the amortization of certain of the Firm's alternative energy tax-oriented investments previously recognized in other income now being recognized in income tax expense.

The prior year included net valuation gains in AWM, including $339 million on the original minority interest in China International Fund Management (“CIFM”).

Refer to AWM segment results on pages 32-34 for additional information on CIFM; Notes 1, 5 and 13 for additional information on the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance.

Net interest income increased, driven by the acquisition of First Republic, the impact of balance sheet mix and higher rates,, as well as higher revolving balances in Card Services, partially offset by ~~lower Markets net interest income~~deposit margin compression reflecting higher rates paid across the LOBs, and lower average deposit ~~balances.~~balances in CCB.

The Firm’s average interest-earning assets were ~~$3.2~~$3.4 trillion, ~~down $185~~up $229 billion, and the yield was ~~4.68%~~5.55%, up ~~282~~87 basis points (“bps”). The net yield on these assets, on an FTE basis, was ~~2.63%~~2.71%, an increase of 968 bps. The net yield excluding Markets was ~~3.80%~~3.83%, up ~~185~~3 bps.

Refer to the Consolidated average balance sheets, interest and rates schedule on page ~~167~~175 for further information. 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 16-17 for a further discussion of ~~Net~~net yield excluding Markets.

Provision for credit losses

Three months ended March 31,

Provision for credit losses

Three months ended March 31,

(in millions)

2023

2022

Change

Consumer, excluding credit card

248

173

Consumer, excluding credit card

Credit card

1,222

506

142

Total consumer

1,470

679

116

Total consumer

Wholesale

804

785

Investment securities

(1)

Investment securities

Total provision for credit losses

2,275

1,463

Total provision for credit losses

Quarterly results

The provision for credit losses was ~~$2.3~~$1.9 billion, reflecting ~~a net addition of $1.1 billion to the allowance for credit losses and $1.1~~$2.0 billion of net ~~charge-offs.~~charge-offs, an increase of $819 million, predominantly driven by Card Services, as the portfolio continued to normalize.

The ~~net addition to the~~ allowance for credit losses was ~~predominantly~~ driven by a deterioration in the Firm's weighted-average economic outlook, including the impact from changes to the Firm’s macroeconomic scenarios and increased probability of a moderate recession due to tightening financial conditions, and ~~consisted of:~~relatively flat, reflecting:

•~~$726~~a net reduction in the allowance of $142 million in wholesale, which ~~also reflected~~included a net ~~downgrade activity, and an~~ addition to the allowance for credit losses associated with ~~Other assets~~net downgrade activity, largely in ~~Corporate,~~Real Estate, primarily in CB, which was more than offset by the net impact of changes in the loan and lending-related commitment portfolios, as well as updates to certain macroeconomic variables, and

•~~$416~~a net addition of $44 million inconsumer., consisting of $153 million in Card Services, predominantly offset by a $125 million net reduction in Home Lending.

~~Net charge-offs increased $555 million, predominantly driven by CCB, reflecting continued normalization~~The provision in ~~delinquencies.~~

~~The~~the prior year ~~included~~was $2.3 billion, reflecting a ~~$902 million~~$1.1 billion net ~~addition~~addition to the allowance for credit losses and net charge-offs of ~~$582 million.~~$1.1 billion.

Refer to CCBCCB segment results on pages ~~20-22~~,21-23, CIB on pages ~~23-27,~~24-28, CB on pages ~~28-29,~~29-31, AWM on pages ~~30-32,~~32-34, Corporate on pages 35-36; Allowance for Credit Losses on pages ~~63-65, and~~67-69; Notes 9 and 12 for additional information on the credit portfolio and the allowance for credit losses.


Noninterest expense
Noninterest expense
Noninterest expense	Noninterest expense
(in millions)	(in millions)	Three months ended March 31,
		2023		2022		Change
(in millions)

2024
2024
Compensation expense
Compensation expense
Compensation expense	Compensation expense	$	11,676	$	10,787	8	%
Noncompensation expense:	Noncompensation expense:
Noncompensation expense:
Noncompensation expense:
Occupancy
Occupancy
Occupancy	Occupancy	1,115		1,134		(2)
Technology, communications and equipment(a)	Technology, communications and equipment(a)	2,184		2,360		(7)
Technology, communications and equipment(a)
Technology, communications and equipment(a)
Professional and outside services
Professional and outside services
Professional and outside services	Professional and outside services	2,448		2,572		(5)
Marketing	Marketing	1,045		920		14
Marketing
Marketing
Other expense(b)
Other expense(b)
Other expense(b)	Other expense(b)	1,639		1,418		16
Total noncompensation expense	Total noncompensation expense	8,431		8,404		—
Total noncompensation expense
Total noncompensation expense
Total noninterest expense	Total noninterest expense	$	20,107	$	19,191	5	%
Total noninterest expense
Total noninterest expense

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

(b)Included Firmwide legal (benefit)/expense of ~~$176~~$(72) million and ~~$119~~$176 million for the three months ended March 31, 2024 and 2023, respectively; as well as FDIC-related expense of $973 million and ~~2022,~~$317 million for the three months ended March 31, 2024 and 2023, respectively. Refer to Note 5 for additional information.

(c)Included the impact of First Republic of $454 million for the three months ended March 31, 2024. Refer to Business Segment Results on page 20 for additional information.

Quarterly results

Compensation expense increased driven ~~by additional headcount,~~by:

•an increase in employees, primarily in ~~technology and operations, as well as~~ front office and technology,

•the impact of ~~wage inflation, partially offset by lower~~First Republic, predominantly in CCB and Corporate, and

•higher volume- and revenue-related compensation, predominantly in ~~CIB.~~CCB and AWM.

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

•the $725 million increase to the FDIC special assessment in Corporate,

•the impact of First Republic in CCB and ~~primarily included~~:Corporate, and

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

•~~higher structural expense, including the impact of the increase in the FDIC assessment that was announced in 2022,~~

partially offset by

•lower ~~volume-related~~legal expense ~~reflecting lower depreciation expense on lower Auto lease assets.~~in CIB.

Refer to Business Segment Results on page 20 and Note 26 for additional information on First Republic; Note 5 for additional information on other expense.


Income tax expense
Income tax expense
Income tax expense	Income tax expense
(in millions)	(in millions)	Three months ended March 31,
		2023			2022			Change
(in millions)

2024
2024
Income before income tax expense
Income before income tax expense
Income before income tax expense	Income before income tax expense	$	15,967		$	10,063		59	%
Income tax expense	Income tax expense	3,345			1,781			88
Income tax expense
Income tax expense
Effective tax rate	Effective tax rate	20.9		%	17.7		%
Effective tax rate
Effective tax rate

(a)Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures guidance, the amortization of certain of the Firm’s alternative energy tax-oriented investments is now being recognized in income tax expense. Refer to Notes 1, 5 and 13 for additional information.

Quarterly results

The effective tax rateincreased driven by:

•the adoption of updates to the Accounting for Investments in Tax Credit Structures guidance on January 1, 2024, resulting in an increase to income tax expense of approximately $450 million,

partially offset by

•higher benefits related to the vesting of employee share-based awards in the current period as a result of the Firm's higher ~~level of pre-tax income that decreased the relative net impact of certain~~share price.

The prior year included tax benefits from changes in the level and ~~expenses, and the~~ mix of income and expenses subject to U.S. federal, ~~and~~ state and local ~~taxes, as well as lower benefits related to the vesting of employee share based awards in the current period.~~taxes.

CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS

Consolidated balance sheets analysis

The following is a discussion of the significant changes between March 31, ~~2023,~~2024 and December 31, ~~2022.~~2023. Refer to pages 155–158 for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Balance Sheets.


Selected Consolidated balance sheets data	Selected Consolidated balance sheets data							Selected Consolidated balance sheets data
(in millions)	(in millions)	March 31, 2023		December 31, 2022		Change		(in millions)		March 31, 2024						December 31, 2023			Change
Assets	Assets
Cash and due from banks
Cash and due from banks
Cash and due from banks	Cash and due from banks	$	25,098	$	27,697	(9)	%	$	22,750			$		$	29,066		(22)	(22)	%
Deposits with banks	Deposits with banks	520,902		539,537		(3)
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	317,111		315,592		—
Securities borrowed	Securities borrowed	195,917		185,369		6
Trading assets	Trading assets	578,892		453,799		28
Available-for-sale securities	Available-for-sale securities	197,248		205,857		(4)
Held-to-maturity securities	Held-to-maturity securities	412,827		425,305		(3)
Investment securities, net of allowance for credit losses	Investment securities, net of allowance for credit losses	610,075		631,162		(3)
Loans	Loans	1,128,896		1,135,647		(1)
Allowance for loan losses	Allowance for loan losses	(20,053)		(19,726)		(2)
Loans, net of allowance for loan losses	Loans, net of allowance for loan losses	1,108,843		1,115,921		(1)
Accrued interest and accounts receivable	Accrued interest and accounts receivable	115,316		125,189		(8)
Premises and equipment	Premises and equipment	28,266		27,734		2
Goodwill, MSRs and other intangible assets	Goodwill, MSRs and other intangible assets	62,090		60,859		2
Other assets	Other assets	181,795		182,884		(1)
Total assets	Total assets	$	3,744,305	$	3,665,743	2	%	Total assets		$	4,090,727		$			$	3,875,393		6	6	%

Cash and due from banks and deposits with banks decreased ~~primarily as a result of~~driven by CIB Markets activities ~~partially offset by the impact of higher deposits. Deposits with banks reflect the Firm’s placement of its excess~~and cash ~~with various central banks, including the Federal Reserve Banks.~~deployment in Treasury and CIO.

~~Securities borrowed~~Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting higher client-driven market-making activities and higher demand for securities to cover short ~~positions.~~

positions, as well as when compared with seasonally lower levels at year-end. Refer to Note 10 for additional information on securities purchased under resale agreements and ~~and~~ securities borrowed.

Trading assets increased due to to:

•higher levels of ~~debt~~equity and ~~equity~~debt instruments in Markets, reflecting strong client-driven market-making activities, ~~including in the U.S. Treasury market,~~ and when compared with ~~the~~ seasonally lower levels at ~~year-end.~~ year-end, and to a lesser extent

•higher short-term cash deployment in Treasury and CIO.

Refer to Notes 2 and 4 for additional information.

Investment securities ~~decreased primarily due to~~was relatively flat, reflecting:

•lower HTM securities as a result of maturities and paydowns, ~~of U.S. Treasuries~~ and ~~U.S. GSE and government agency MBS in both~~

•higher available-for-sale ~~(“AFS”~~("AFS") ~~and held-to-maturity (“HTM”) securities. The decrease in AFS was also due to~~securities, reflecting net ~~sales,~~purchases, partially offset by ~~the transfer of securities from HTM to AFS.~~maturities and paydowns.

Refer to Corporate segment results on pages ~~33-34,~~35-36, Investment Portfolio Risk Management on page ~~66,~~70, and Notes 2 and 9 for additional information.

Loans ~~were relatively flat~~decreased, reflecting,:

•a reduction in Card Services due to the impact of seasonality,

•a decline in Home Lending as sales outpaced originations, and ~~included:~~

•lower wholesale loans in ~~CIB,~~

•~~lower balances in Card Services, reflecting the impact of seasonality, and~~

•~~lower securities-based lending in~~ AWM

~~predominantly offset by~~

•~~higher revolver utilization and originations in CB.~~ due to paydowns.

The allowance for loan losses was relatively flat~~increased,~~ reflecting a net addition of $914 million to the allowance for loan losses, predominantly driven by a deterioration in the Firm's weighted-average economic outlook, including the impact from changes to the Firm’s macroeconomic scenarios and increased probability of a moderate recession due to tightening financial conditions, consisting of:, reflecting:

•~~$499~~a net reduction of $92 million in wholesale, which ~~also reflected~~included a net addition to the allowance associated with net downgrade activity, largely in Real Estate, primarily in CB, which was more than offset by the impact of changes in the loan portfolios as well as updates to certain macroeconomic variables, and

•a net addition of $23 million in consumer, consisting of $153 million in Card Services, predominantly offset by a $146 million net reduction in Home Lending.

There was also a $58 million net reduction in the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets.

Refer to Consolidated Results of Operations and ~~$415 million in~~ ~~consumer~~.

~~The allowance for loan losses also reflected a reduction of $587 million as a result of the 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.

~~Refer to~~ Credit and Investment Risk Management on pages ~~48-66,~~10-12 and pages 52-70, and Notes 2, 3, 11 and 12 for additional information on loans and the total allowance for credit ~~losses.~~

~~Accrued interest~~losses; and ~~accounts receivable~~ ~~decreased primarily due to lower receivables in Payments related to~~Business Segment Results on page 20 and Note 26 for additional information on the ~~timing of processing payment activities, with December 31, 2022 falling on a weekend.~~First Republic acquisition.

~~Premises~~Accrued interest and ~~equipment~~accounts receivable~~: refer~~ increased predominantly driven by higher client receivables related to ~~Note 16 for information on leases.~~

client-driven activities in Markets.

Goodwill, MSRs and other ~~intangibles~~intangible assets: ~~increased due to higher other intangibles and goodwill as a result of the Firm's acquisition of the remaining 51% interest in CIFM.~~ ~~Refer~~refer to Note 14 for additional ~~information.~~information on goodwill, mortgage servicing rights and other intangible assets.


Selected Consolidated balance sheets data (continued)	Selected Consolidated balance sheets data (continued)
(in millions)	(in millions)	March 31, 2023		December 31, 2022		Change
(in millions)
(in millions)										March 31, 2024						December 31, 2023			Change
Liabilities	Liabilities
Deposits
Deposits
Deposits	Deposits	$	2,377,253	$	2,340,179	2	%	$	2,428,409			$		$	2,400,688		1	1	%
Federal funds purchased and securities loaned or sold under repurchase agreements	Federal funds purchased and securities loaned or sold under repurchase agreements	246,396		202,613		22
Short-term borrowings	Short-term borrowings	42,241		44,027		(4)
Trading liabilities	Trading liabilities	189,864		177,976		7
Accounts payable and other liabilities	Accounts payable and other liabilities	275,077		300,141		(8)
Beneficial interests issued by consolidated variable interest entities (“VIEs”)	Beneficial interests issued by consolidated variable interest entities (“VIEs”)	14,903		12,610		18
Long-term debt	Long-term debt	295,489		295,865		—
Total liabilities	Total liabilities	3,441,223		3,373,411		2
Stockholders’ equity	Stockholders’ equity	303,082		292,332		4
Total liabilities and stockholders’ equity	Total liabilities and stockholders’ equity	$	3,744,305	$	3,665,743	2	%	Total liabilities and stockholders’ equity		$	4,090,727		$			$	3,875,393		6	6	%

Deposits increased, reflecting ~~inflows in March 2023, primarily in CCB and CB, as a result of disruptions in~~ the market related to recent bank failures, which changed the outflow trend that started in the second half of 2022. AWM also experienced deposit inflows in March which were more than offset by migration to higher-yielding investments by month end. The increase in period-end deposits also reflected:net impact of:

•~~net issuances of structured notes~~higher balances in CIB, ~~as a result of client demand~~driven by net inflows related to client-driven activities in Payments, and Securities Services,

•an increase in ~~Corporate related~~CCB due to new accounts and seasonal inflows,largely offset by a decline in deposits in existing accounts due to migration into higher-yielding investments,

•a decrease in AWM due to continued migration into higher-yielding investments, partially offset by an increase in deposits in existing accounts due to a change in product offerings associated with First Republic, and

•a decrease in CB primarily due to seasonal outflows and continued deposit attrition, largely offset by the ~~Firm's ongoing international consumer initiatives.~~realignment of additional clients associated with First Republic from CCB to CB that began in the fourth quarter of 2023.

Federal funds purchased and securities loaned or sold under repurchase agreements increased ~~due to~~driven by Markets, reflecting higher client-driven market-making activities and higher secured financing of trading assets, ~~and the impact of a~~as well as when compared with seasonally lower ~~level of netting on client-driven market-making activities in Markets.~~levels at year-end.

Refer to Liquidity Risk Management on pages ~~42-47~~44-51 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; ~~and also to~~ Notes 2 and 15 for deposits and Note 10 for federal funds purchased and securities loaned or sold under repurchase ~~agreements.~~agreements; Business Segment Results on page 20 and Note 26 for additional information on the First Republic acquisition.

Trading liabilities increased due to ~~client-driven market-making activities in Fixed Income Markets, which resulted in~~ higher levels of short positions in debt instruments ~~partially offset by~~in Fixed Income Markets, reflecting client-driven market-making activities, and when compared with seasonally lower ~~derivative payables as a result of market movements.~~ levels at year-end.Refer to Notes 2 and 4 for additional information.

Accounts payable and other liabilities ~~decreased~~increased predominantly due to ~~lower~~higher client payables related to client-driven activities in ~~Markets, as well as lower payables in Payments related to the timing of processing payment activities, with December 31, 2022 falling on a weekend.~~Markets.

Beneficial interests issued by consolidated VIEs increased driven by by:

•higher levels of Firm-administered multi-seller conduit commercial paper held by third ~~parties.~~ parties in CIB, reflecting changes in the Firm’s short-term liquidity management, and

•the issuance of credit card securitizations in Treasury and CIO.

Refer to Liquidity Risk Management on pages ~~42-47~~44-51 and Notes 13 and 22 for additional information, specifically Firm-sponsored VIEs and loan securitization trusts.

Long-term debt~~: refe~~r increased driven by issuances in Treasury and CIO, predominantly offset by maturities. Refer to Liquidity Risk Management on pages ~~42-47~~44-51; and Note 26 for additional ~~information.~~information on the First Republic acquisition.

Stockholders’ equity: refer to Consolidated statements of changes in stockholders’ equity on page ~~82,~~86, Capital Actions on page ~~40,~~42, and Note 19 for additional information.

Consolidated cash flows analysis

The following is a discussion of cash flow activities during the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023.


(in millions)

(in millions)	(in millions)	Three months ended March 31,			(in millions)				Three months ended March 31,
			2023					2022		2024	2023
Net cash provided by/(used in)	Net cash provided by/(used in)
Operating activities	Operating activities		$	(111,241)		$	(41,917)
Operating activities
Operating activities
Investing activities	Investing activities		23,794			(72,608)
Financing activities	Financing activities		64,557			132,772
Effect of exchange rate changes on cash	Effect of exchange rate changes on cash		1,656			(4,549)
Net increase/(decrease) in cash and due from banks and deposits with banks			$	(21,234)		$	13,698
Net decrease in cash and due from banks and deposits with banks

Operating activities

•In 2024, cash used resulted from higher trading assets and higher accrued interest and accounts receivable, partially offset by higher trading liabilities, accounts payable and other liabilities, and lower other assets.

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

Investing activities

•In ~~2022,~~2024, cash used resulted from higher ~~trading assets, and accrued interest and accounts receivable, largely~~securities purchased under resale agreements, partially offset by ~~higher accounts payable~~proceeds from sales and ~~other liabilities and trading liabilities.~~securitizations of loans held-for-investment.

~~Investing activities~~

•In 2023, cash provided primarily reflected net proceeds from investment securities.

•~~In 2022, cash used resulted from higher securities purchased under resale agreements, net purchases of investment securities, and higher net originations of loans.~~

Financing activities

•In 2024, cash provided reflected higher securities loaned or sold under repurchase agreements, higher deposits, net proceeds from long- and short-term borrowings and proceeds from the issuance of preferred stock.

•In 2023, cash provided reflected higher securities loaned or sold under repurchase agreements and deposits, partially offset by net payments on ~~long- and short-term borrowings.~~

•~~In 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 13-14, Capital Risk Management on pages ~~36-41,~~38-43, and Liquidity Risk Management on pages ~~42-47,~~44-51, and the Consolidated Statements of Cash Flows on page 8387 of this Form 10-Q, and pages ~~97-104~~102–109 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a further discussion of the activities affecting the Firm’s cash flows.


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 ~~79-83.~~83-87.

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);

. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the LOBs;

•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~~62–64 of JPMorgan Chase’s ~~2022~~2023 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 March 31,
		2023								2022
	Three months ended March 31,																												Three months ended March 31,
	2024																					2024										2023
(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(b)		Managed basis			Reported				Fully taxable-equivalent adjustments(b)			Managed basis
Other income	Other income	$	1,007		$	867	$	1,874		$	1,490		$	775	$	2,265
Total noninterest revenue	Total noninterest revenue	17,638			867		18,505			16,845			775		17,620
Net interest income	Net interest income	20,711			120		20,831			13,872			98		13,970
Total net revenue	Total net revenue	38,349			987		39,336			30,717			873		31,590
Total noninterest expense	Total noninterest expense	20,107			NA		20,107			19,191			NA		19,191
Pre-provision profit	Pre-provision profit	18,242			987		19,229			11,526			873		12,399
Provision for credit losses	Provision for credit losses	2,275			NA		2,275			1,463			NA		1,463
Income before income tax expense	Income before income tax expense	15,967			987		16,954			10,063			873		10,936
Income tax expense	Income tax expense	3,345			987		4,332			1,781			873		2,654
Net income	Net income	$	12,622		NA		$	12,622		$	8,282		NA		$	8,282

Overhead ratio
Overhead ratio
Overhead ratio	Overhead ratio	52		%	NM		51		%	62		%	NM		61		%	54	%	NM				53	%		52	%			NM			51	%

(a)Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures guidance, under the modified retrospective method.Refer to Notes 1, 5 and 13 for additional information.

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

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

(in millions, except rates) Three months ended March 31,
2023 2022 Change
Net interest income – reported $ 20,711 $ 13,872 49 %
Fully taxable-equivalent adjustments 120 98 22
Net interest income – managed basis(a)
$ 20,831 $ 13,970 49
Less: Markets net interest income(b)
(105) 2,218 NM
Net interest income excluding Markets(a)
$ 20,936 $ 11,752 78
Average interest-earning assets $ 3,216,757 $ 3,401,951 (5)
Less: Average Markets interest-earning assets(b)
982,572 963,845 2
Average interest-earning assets excluding Markets $ 2,234,185 $ 2,438,106 (8) %
Net yield on average interest-earning assets – managed basis 2.63 % 1.67 %
Net yield on average Markets interest-earning assets(b)
(0.04) 0.93
Net yield on average interest-earning assets excluding Markets 3.80 % 1.95 %

Noninterest revenue – reported

17,638

16,845

(in millions, except rates)

2024

Net interest income – reported

Fully taxable-equivalent adjustments

867

775

Fully taxable-equivalent adjustments

Net interest income – managed basis(a)

Less: Markets net interest income(b)

Net interest income excluding Markets(a)

Average interest-earning assets

Less: Average Markets interest-earning assets(b)

Average interest-earning assets excluding Markets

Net yield on average interest-earning assets – managed basis

Net yield on average Markets interest-earning assets(b)

Net yield on average interest-earning assets excluding Markets

Noninterest revenue – reported(c)

Fully taxable-equivalent adjustments(c)

Noninterest revenue – managed basis

18,505

17,620

Less: Markets noninterest revenue(b)

8,487

6,535

Less: Markets noninterest revenue(b)

Noninterest revenue excluding Markets

10,018

11,085

(10)

Memo: Total Markets net revenue(b)

8,382

8,753

(4)

Memo: Total Markets net revenue(b)

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

(b)Refer to page 2627 for further information on Markets.

(c)Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures guidance, under the modified retrospective method.Refer to Notes 1, 5 and 13 for additional information.

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


		Period-end
		Period-end				Average
		Period-end

		Period-end										Average
(in millions, except per share and ratio data)	(in millions, except per share and ratio data)	Mar 31, 2023		Dec 31, 2022		Three months ended March 31,
						2023			2022
		2024
		2024
Common stockholders’ equity
Common stockholders’ equity
Common stockholders’ equity	Common stockholders’ equity	$	275,678	$	264,928	$	271,197		$	252,506
Less: Goodwill	Less: Goodwill	52,144		51,662		51,716			50,307
Less: Goodwill
Less: Goodwill
Less: Other intangible assets
Less: Other intangible assets
Less: Other intangible assets	Less: Other intangible assets	2,191		1,224		1,296			896
Add: Certain deferred tax liabilities(a)	Add: Certain deferred tax liabilities(a)	2,754		2,510		2,549			2,498
Add: Certain deferred tax liabilities(a)
Add: Certain deferred tax liabilities(a)
Tangible common equity
Tangible common equity
Tangible common equity	Tangible common equity	$	224,097	$	214,552	$	220,734		$	203,801

Return on tangible common equity	Return on tangible common equity	NA		NA		23		%	16		%

Return on tangible common equity

Return on tangible common equity
Tangible book value per share	Tangible book value per share	$	76.69	$	73.12	NA			NA
Tangible book value per share
Tangible book value per share

(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.

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.

As a result of the organizational changes announced on January 25, 2024, the Firm will be reorganizing its business segments to reflect the manner in which the segments will be managed. The reorganization of the business segments will be effective in the second quarter of 2024. Refer to Recent events on page 52 of JPMorgan Chase's 2023 Form 10-K for additional information.

Refer to Explanation and Reconciliation of the Firm’s use of Non-GAAP Financial Measures on pages 16-17 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 therefore 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 or businesses within each segment join efforts to sell products and services to the Firm’s clients and customers, the participating ~~business segments~~businesses 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)~~segments/businesses involved in the transaction. The segment and business 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 ~~67-72~~71-76 for additional information.

Capital allocation

The amount of capital assigned to each business segment is referred to as equity. 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.

Refer to Line of business equity on page ~~39,~~41, and page 9398 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for additional information on capital allocation.

Refer to Business Segment Results – Description of business segment reporting methodology on pages ~~61-62~~65–85 and Note 32 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a further discussion of those methodologies.

Segment results – managed basis

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


Three months ended March 31,	Three months ended March 31,	Consumer & Community Banking								Corporate & Investment Bank								Commercial Banking							Three months ended March 31,	Consumer & Community Banking									Corporate & Investment Bank												Commercial Banking
(in millions, except ratios)	(in millions, except ratios)	2023			2022				Change	2023			2022				Change	2023			2022			Change	(in millions, except ratios)	2024		2023			Change					2024			2023						Change				2024		2023								Change
Total net revenue	Total net revenue	$	16,456		$	12,182		(a)	35%	$	13,600		$	13,576		(a)	—%	$	3,511		$	2,398		46%	Total net revenue	$	17,653	$	16,456	7		7		%			$	13,633		$	13,600		—			—		%		$	3,951		$	3,511			13			13	%
Total noninterest expense	Total noninterest expense	8,065			7,655			(a)	5	7,483			7,363			(a)	2	1,308			1,129			16	Total noninterest expense	9,297		8,065	8,065	15			15					7,218			7,483	7,483		(4)				(4)				1,506			1,308	1,308		15				15
Pre-provision profit/(loss)	Pre-provision profit/(loss)	8,391			4,527				85	6,117			6,213				(2)	2,203			1,269			74	Pre-provision profit/(loss)	8,356		8,391	8,391	—			—					6,415			6,117	6,117		5				5				2,445			2,203	2,203		11				11
Provision for credit losses	Provision for credit losses	1,402			678				107	58			445				(87)	417			157			166	Provision for credit losses	1,913		1,402	1,402	36			36					32			58	58		(45)				(45)				(31)			417	417		NM				NM
Net income/(loss)	Net income/(loss)	5,243			2,908			(a)	80	4,421			4,372			(a)	1	1,347			850			58	Net income/(loss)	4,831		5,243	5,243	(8)			(8)					4,753			4,421	4,421		8				8				1,869			1,347	1,347		39				39
Return on equity (“ROE”)	Return on equity (“ROE”)	40		%	23		%			16		%	16		%	(a)		18		%	13		%


Three months ended March 31,	Three months ended March 31,	Asset & Wealth Management							Corporate					Total							Three months ended March 31,	Asset & Wealth Management									Corporate										Total
(in millions, except ratios)	(in millions, except ratios)	2023			2022			Change	2023		2022		Change	2023			2022			Change	(in millions, except ratios)	2024		2023			Change					2024			2023			Change				2024			2023						Change
Total net revenue	Total net revenue	$	4,784		$	4,315		11%	$	985	$	(881)	NM	$	39,336		$	31,590		25%	Total net revenue	$	5,109	$	4,784	7		7		%			$	2,202		$	985		124%				$	42,548		$	39,336		8			8	%
Total noninterest expense	Total noninterest expense	3,091			2,860			8	160		184		(13)	20,107			19,191			5	Total noninterest expense	3,460		3,091	3,091	12			12					1,276			160			NM				22,757			20,107	20,107		13			13
Pre-provision profit/(loss)	Pre-provision profit/(loss)	1,693			1,455			16	825		(1,065)		NM	19,229			12,399			55	Pre-provision profit/(loss)	1,649		1,693	1,693	(3)			(3)					926			825			12				19,791			19,229	19,229		3			3
Provision for credit losses	Provision for credit losses	28			154			(82)	370		29		NM	2,275			1,463			56	Provision for credit losses	(57)		28	28	NM			NM					27			370			(93)				1,884			2,275	2,275		(17)			(17)
Net income/(loss)	Net income/(loss)	1,367			1,008			36	244		(856)		NM	12,622			8,282			52	Net income/(loss)	1,290		1,367	1,367	(6)			(6)					676			244			177				13,419			12,622	12,622		6			6
ROE	ROE	34		%	23		%		NM		NM			18		%	13		%

~~(a)~~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.

The following sections provide a comparative discussion of the Firm’s results by segment as of or for the three months ended March 31, 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


Three months ended March 31,	Three months ended March 31,	2023		2022
Three months ended March 31,
Three months ended March 31,
Client assets (in billions)(a)
Client assets (in billions)(a)
Client assets (in billions)(a)	Client assets (in billions)(a)	$	2,594	$	2,389
Number of client advisors	Number of client advisors	8,314		7,614
Number of client advisors
Number of client advisors

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

Selected metrics - J.P. Morgan Payments

Three months ended March 31,

(in millions, except where otherwise noted)

2023

2022

(in millions, except where otherwise noted)

2024

Total net revenue(a)

4,458

2,595

Total net revenue(a)

Merchant processing volume (in billions)

558.8

490.2

Average deposits (in billions)

707

821

Average deposits (in billions)

(a) ~~Excludes~~Includes certain revenues that are reported as investment banking product revenue in CB, and excludes the net impact of equity investments.

Segment information related to First Republic

The following table presents selected impacts to CCB, CB, AWM and Corporate associated with First Republic as of or for the three months ended March 31, 2024.


	As of or for the three months ended March 31, 2024
(in millions)	Consumer & Community Banking		Commercial Banking		Asset & Wealth Management		Corporate			Total
Selected Income Statement Data
Revenue
Asset management fees	$	133	$	—	$	—	$	—		$	133
All other income	146		54		69		(87)		(a)	182
Noninterest revenue	279		54		69		(87)			315
Net interest income	752		298		298		—			1,348
Total net revenue	1,031		352		367		(87)			1,663

Provision for credit losses	(9)		4		(26)		—			(31)
Noninterest expense	518		28		33		227			806
Net income	395		243		272		(242)			668

Selected Balance Sheet Data (period-end)
Loans	$	93,565	$	38,126	$	10,188	$	—		$	141,879
Deposits	40,525		8,343		14,904		—			63,772

(a)For the three months ended March 31, 2024, reflects measurement period adjustments, which reduced the estimated bargain purchase gain by $(16) million. Refer to Note 26 for additional information.

The following sections provide a comparative discussion of the Firm’s results by segment as of or for the three months ended March 31, 2024 and 2023, ~~and 2022.~~unless otherwise specified.

1920

CONSUMER & COMMUNITY BANKING

Refer to pages ~~63-66~~68-71 of JPMorgan Chase's ~~2022~~2023 Form 10-K and Line of Business Metrics on page ~~174~~182 for a further discussion of the business profile of CCB.

Selected income statement data

Three months ended March 31,

Selected income statement data

Three months ended March 31,

(in millions, except ratios)

2023

2022

Change

Revenue

Lending- and deposit-related fees

823

805

Asset management fees

676

726

(7)

Asset management fees

Mortgage fees and related income

223

456

(51)

Card income

739

541

(d)

Card income

All other income(a)

1,162

1,327

(d)

(12)

Noninterest revenue

3,623

3,855

(6)

Noninterest revenue

Net interest income

12,833

8,327

Net interest income

Total net revenue

16,456

12,182

Provision for credit losses

1,402

678

107

Provision for credit losses

Noninterest expense

Compensation expense

3,545

3,171

Compensation expense

Noncompensation expense(b)

4,520

4,484

(d)

Total noninterest expense

8,065

7,655

Total noninterest expense

Income before income tax expense

6,989

3,849

Income tax expense

1,746

941

(d)

Income tax expense

Net income

5,243

2,908

Revenue by line of business

Revenue by business

Banking & Wealth Management

10,041

6,015

(d)

Home Lending

720

1,169

(38)

Home Lending

Card Services & Auto

5,695

4,998

Mortgage fees and related income details:

Production revenue

211

(64)

Net mortgage servicing revenue(c)

148

245

(40)

Net mortgage servicing revenue(c)

Mortgage fees and related income

223

456

(51)

Financial ratios

Return on equity

Overhead ratio

(a)Primarily includes operating lease income and commissions and other fees. ~~For~~Operating lease income was $665 million and $741 million for the three months ended March 31, ~~2023~~2024 and ~~2022, operating lease income was $741 million and $1.0 billion,~~2023, respectively.

(b)Included depreciation expense on leased assets of ~~$407~~$427 million and ~~$694~~$407 million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

(c)Included MSR risk management results of ~~$(12)~~$(1) million and ~~$109~~$(12) million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

(d)~~In the first quarter of 2023, the allocations of~~Includes First Republic. Refer to page 20 for additional information.

(e)Banking & Wealth Management and Home Lending included revenue ~~and expense to CCB~~ associated with ~~a Merchant Services revenue sharing agreement were discontinued~~First Republic of $639 million and ~~are now retained in Payments in CIB. Prior-period amounts have been revised to conform with~~$392 million, respectively, for the ~~current presentation.~~three months ended March 31, 2024.

Quarterly results

Net income was ~~$5.2~~$4.8 billion, ~~up 80%~~down 8%.

Net revenue was ~~$16.5~~$17.7 billion, ~~an increase of 35%~~up 7%.

Net interest income was ~~$12.8~~$13.7 billion, up ~~54%~~7%, driven by:

•~~deposit margin expansion on~~ higher ~~rates,~~ Card Services NII, reflecting an increase in revolving balances, and

•the impact of First Republic in Home Lending,

partially offset by

•deposit margin compression, reflecting higher rates paid and lower average deposits in Banking & Wealth Management ~~(“BWM”~~("BWM").

Noninterest revenue was $3.9 billion, up 9%, driven by:

•higher asset management fees reflecting higher average market levels, strong net inflows and the impact of First Republic, as well as other service fees associated with First Republic, and higher commissions from annuity sales in BWM, and

•higher ~~revolving loans~~production revenue in ~~Card Services,~~Home Lending, which included the impact of First Republic,

partially offset by

•~~tighter loan spreads in Home Lending.~~

~~Noninterest revenue was $3.6 billion, down 6%, driven by:~~

•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, reflecting a net loss compared with a net gain in the prior year in MSR risk management,~~

~~largely offset by~~

•~~an increase in~~ card income driven by ~~higher net interchange largely due to a reduction~~an increase in ~~rewards costs and partner payments related to a periodic tax refund on airline miles redeemed, and higher annual fees, partially offset by higher amortization related to~~ new account origination costs, ~~and~~

•largely offset by higher ~~travel-related commissions~~annual fees, reflecting continued growth in ~~Card Services.~~the portfolio. Net interchange income was relatively flat as the impact of increased debit and credit card sales volume was offset by higher reward costs and partner payments.

Refer to Note 5 for additional information on card income, asset management fees, and commissions and other ~~fees. Refer to Note 14~~fees; and Critical Accounting Estimates on pages 78-80 for ~~further information regarding changes in the value of the MSR asset and related hedges, and mortgage fees and related income.~~credit card rewards liability.

Noninterest expense was ~~$8.1~~$9.3 billion, up 5%15%, ~~largely driven by:~~reflecting:

•higher compensation expense, predominantly driven by ~~wage inflation~~an increase in employees, including the impact of First Republic and ~~headcount growth,~~in technology, as well as ~~investments in the business,~~higher revenue-related compensation, primarily for bankers and advisors, and

~~largely offset by~~

•~~lower auto lease depreciation~~higher noncompensation expense, largely driven by the impact of First Republic and investments in marketing and technology.

Refer to Business Segment Results on ~~lower auto lease assets.~~page 20 and Note 26 for additional information on the First Republic acquisition.

The provision for credit losses was ~~$1.4~~$1.9 billion, ~~and included:~~reflecting:

•net charge-offs of ~~$1.1~~$1.9 billion, up ~~$499~~$827 million, ~~predominantly driven by~~including $766 million in Card Services, reflecting continued portfolio normalization, and $50 million in ~~delinquencies,~~Auto, driven by a decline in used vehicle valuations, and

•a $34 million net addition to the allowance for credit losses, consisting of:

–$153 million in Card Services, primarily due to seasoning of newer vintages, largely offset by reduced borrower uncertainty, and

•–a $125 million net reduction in Home Lending, primarily due to improvements in the outlook for home prices.

The provision in the prior year was $1.4 billion, reflecting net charge-offs of $1.1 billion and a $350 million net addition to the allowance for credit losses, ~~driven by a deterioration in the Firm’s weighted-average economic outlook, including $300 million~~predominantly in Card ~~Services and $50 million in Home Lending.~~

~~The prior year included a $125 million addition to the allowance for credit losses across CCB.~~Services.

Refer to Credit and Investment Risk Management on pages ~~48-66~~52-70 and Allowance for Credit Losses on pages ~~63-65~~67-69 for a further discussion of the credit portfolios and the allowance for credit losses.

Selected metrics

As of or for the three months
ended March 31,

(in millions, except headcount)

2023

2022

Change

Selected metrics

As of or for the three months
ended March 31,

(in millions, except employees)

Selected balance sheet data (period-end)

Total assets

506,382

486,183

Total assets

Loans:

Banking & Wealth Management(a)

28,038

32,772

(14)

Loans:

Banking & Wealth

Management

Banking & Wealth

Management

Banking & Wealth

Management

Home Lending(a)

Card Services

Auto

Total loans

Deposits

Equity

Selected balance sheet data (average)

Total assets

Loans:

Banking & Wealth

Management

Banking & Wealth

Management

Banking & Wealth

Management

Home Lending(b)

172,058

172,025

—

Card Services

180,079

152,283

Card Services

Auto

69,556

69,251

—

Total loans

449,731

426,331

Total loans

Deposits

1,147,474

1,189,308

(4)

Equity

52,000

50,000

Selected balance sheet data (average)

Total assets

506,775

488,967

Loans:

Banking & Wealth Management

28,504

33,742

(16)

Home Lending(c)

172,124

176,488

(2)

Card Services

180,451

149,398

Auto

68,744

69,250

(1)

Total loans

449,823

428,878

Deposits

1,112,967

1,153,513

(4)

Equity

52,000

50,000

Headcount

135,983

129,268

Employees

(a)At March 31, ~~2023~~2024 and 2022, included $205 million and $2.9 billion of loans, respectively, in Business Banking under the PPP. Refer to Credit Portfolio on pages 108-109 of JPMorgan Chase's 2022 Form 10-K for a further discussion of the PPP.

~~(b)At March 31,~~ 2023, ~~and 2022,~~ Home Lending loans held-for-sale and loans at fair value were ~~$4.2~~$4.8 billion and ~~$5.8~~$4.2 billion, respectively.

~~(c)~~(b)Average Home Lending loans held-for sale and loans at fair value were ~~$3.5~~$4.7 billion and ~~$10.8~~$3.5 billion for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

(c)At March 31, 2024, included $3.9 billion and $89.7 billion for Banking & Wealth Management and Home Lending, respectively, associated with First Republic.

(d)Includes First Republic.

(e)Average Banking & Wealth Management and Home Lending loans associated with First Republic were $4.0 billion and $90.2 billion, respectively, for the three months ended March 31, 2024.

(f)

Included $40.6 billion associated with First Republic for the three months ended March 31, 2024.

Selected metrics
As of or for the three months
ended March 31,
(in millions, except ratio data) 2023 2022 Change
Credit data and quality statistics
Nonaccrual loans(a)(b)
$ 3,835 $ 4,531 (15) %
Net charge-offs/(recoveries)
Banking & Wealth Management 79 89 (11)
Home Lending (18) (69) 74
Card Services 922 506 82
Auto 69 27 156
Total net charge-offs/(recoveries) $ 1,052 $ 553 90
Net charge-off/(recovery) rate
Banking & Wealth Management(c)
1.12 % 1.07 %
Home Lending (0.04) (0.17)
Card Services 2.07 1.37
Auto 0.41 0.16
Total net charge-off/(recovery) rate 0.96 % 0.54 %
30+ day delinquency rate
Home Lending(d)(e)
0.81 % 1.03 %
Card Services 1.68 1.09
Auto 0.90 0.57
90+ day delinquency rate - Card Services 0.83 % 0.54 %
Allowance for loan losses
Banking & Wealth Management $ 720 $ 697 3
Home Lending 427 785 (46)
Card Services 11,400 10,250 11
Auto 716 738 (3)
Total allowance for loan losses $ 13,263 (f) $ 12,470 6 %


Selected metrics
	As of or for the three months ended March 31,
(in millions, except ratio data)	2024			2023			Change
Credit data and quality statistics
Nonaccrual loans(a)	$	3,647		$	3,835		(5)%
Net charge-offs/(recoveries)
Banking & Wealth Management	79			79			—
Home Lending	(7)			(18)			61
Card Services	1,688			922			83
Auto	119			69			72
Total net charge-offs/(recoveries)	$	1,879		$	1,052		79

Net charge-off/(recovery) rate
Banking & Wealth Management	1.02		%	1.12		%
Home Lending	(0.01)			(0.04)
Card Services	3.32			2.07
Auto	0.62			0.41
Total net charge-off/(recovery) rate	1.33		%	0.96		%

30+ day delinquency rate
Home Lending(b)	0.70		%	0.81		%
Card Services	2.23			1.68
Auto	1.03			0.90

90+ day delinquency rate - Card Services	1.16		%	0.83		%

Allowance for loan losses
Banking & Wealth Management	$	706		$	720		(2)
Home Lending	432		(c)	427			1
Card Services	12,606			11,400			11
Auto	742			716			4
Total allowance for loan losses	$	14,486		$	13,263	(d)	9%

(a)At March 31, ~~2023~~2024 and ~~2022,~~2023, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of ~~$164~~$107 million and ~~$315~~$164 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 March 31, ~~2023~~2024 and 2022, generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic. Refer to Credit Portfolio on pages 108-109 of JPMorgan Chase's 2022 Form 10-K for further information on consumer assistance.

~~(c)At March 31,~~ 2023, and 2022, included $205 million and $2.9 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 pages 108-109 of JPMorgan Chase's 2022 Form 10-K for a further discussion of the PPP.

~~(d)~~At March 31, 2023 and 2022, the principal balance of loans under payment deferral programs offered in response to the COVID-19 pandemic was $353 million and $728 million in Home Lending, respectively. Loans that are performing according to their modified terms are generally not considered delinquent. Refer to Credit Portfolio on pages 108-109 of JPMorgan Chase's 2022 Form 10-K for further information on consumer assistance.

~~(e)At March 31, 2023 and 2022,~~ excluded mortgage loans insured by U.S. government agencies of ~~$219~~$147 million and ~~$370~~$219 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.

~~(f)~~(c)Includes First Republic.

(d)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 of JPMorgan Chase’s 2023 Form 10-K for further information.


Selected metrics	Selected metrics
		As of or for the three months ended March 31,
Selected metrics
Selected metrics
		As of or for the three months ended March 31,
		As of or for the three months ended March 31,
		As of or for the three months ended March 31,
(in billions, except ratios and where otherwise noted)
(in billions, except ratios and where otherwise noted)
(in billions, except ratios and where otherwise noted)	(in billions, except ratios and where otherwise noted)	2023			2022			Change
Business Metrics	Business Metrics
Business Metrics
Business Metrics
Number of branches
Number of branches
Number of branches	Number of branches	4,784			4,810			(1)	%
Active digital customers (in thousands)(a)	Active digital customers (in thousands)(a)	64,998			60,286			8
Active digital customers (in thousands)(a)
Active digital customers (in thousands)(a)
Active mobile customers (in thousands)(b)
Active mobile customers (in thousands)(b)
Active mobile customers (in thousands)(b)	Active mobile customers (in thousands)(b)	50,933			46,527			9
Debit and credit card sales volume	Debit and credit card sales volume	$	387.3		$	351.5		10
Debit and credit card sales volume
Debit and credit card sales volume
Total payments transaction volume (in trillions)(c)
Total payments transaction volume (in trillions)(c)
Total payments transaction volume (in trillions)(c)	Total payments transaction volume (in trillions)(c)	1.4			1.3			8

Banking & Wealth Management	Banking & Wealth Management

Banking & Wealth Management

Banking & Wealth Management
Average deposits
Average deposits
Average deposits	Average deposits	$	1,098.5		$	1,136.1		(3)
Deposit margin	Deposit margin	2.78		%	1.22		%
Deposit margin
Deposit margin
Business Banking average loans
Business Banking average loans
Business Banking average loans	Business Banking average loans	$	19.9		$	24.8		(20)
Business banking origination volume	Business banking origination volume	1.0			1.0			—
Business banking origination volume
Business banking origination volume
Client investment assets(d)	Client investment assets(d)	690.8			696.3			(1)
Client investment assets(d)
Client investment assets(d)
Number of client advisors
Number of client advisors
Number of client advisors	Number of client advisors	5,125			4,816			6

Home Lending	Home Lending

Home Lending

Home Lending
Mortgage origination volume by channel
Mortgage origination volume by channel
Mortgage origination volume by channel	Mortgage origination volume by channel
Retail	Retail	$	3.6		$	15.1		(76)
Retail
Retail
Correspondent	Correspondent	2.1			9.6			(78)
Correspondent
Correspondent
Total mortgage origination volume(e)
Total mortgage origination volume(e)
Total mortgage origination volume(e)	Total mortgage origination volume(e)	$	5.7		$	24.7		(77)

Third-party mortgage loans serviced (period-end)	Third-party mortgage loans serviced (period-end)	$	575.9		$	575.4		—

Third-party mortgage loans serviced (period-end)

Third-party mortgage loans serviced (period-end)
MSR carrying value (period-end)
MSR carrying value (period-end)
MSR carrying value (period-end)	MSR carrying value (period-end)	7.7			7.3			5

Card Services	Card Services

Card Services

Card Services
Sales volume, excluding commercial card
Sales volume, excluding commercial card
Sales volume, excluding commercial card	Sales volume, excluding commercial card	$	266.2		$	236.4		13
Net revenue rate	Net revenue rate	10.38		%	9.87		%
Net revenue rate
Net revenue rate
Net yield on average loans
Net yield on average loans
Net yield on average loans	Net yield on average loans	9.89			9.99

Auto	Auto

Auto

Auto
Loan and lease origination volume
Loan and lease origination volume
Loan and lease origination volume	Loan and lease origination volume	$	9.2		$	8.4		10
Average auto operating lease assets	Average auto operating lease assets	11.5			16.4			(30)	%
Average auto operating lease assets
Average auto operating lease assets

(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 ~~30-32~~32-34 for additional information. At March 31, 2024, included $146.6 billion of client investment assets associated with First Republic.

(e)Firmwide mortgage origination volume was ~~$6.8~~$7.6 billion and ~~$30.2~~$6.8 billion for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

(f)Excludes First Republic.

(g)Included $40.6 billion for the three months ended March 31, 2024, associated with First Republic.

(h)Included $304 million for the three months ended March 31, 2024, associated with First Republic.

CORPORATE & INVESTMENT BANK

Refer to pages ~~67-72~~72–77 of JPMorgan Chase’s ~~2022~~2023 Form 10-K and Line of Business Metrics on page ~~174~~182 for a further discussion of the business profile of CIB.

Selected income statement data

Three months ended March 31,

Selected income statement data

Three months ended March 31,

(in millions, except ratios)

2023

2022

Change

Revenue

Investment banking fees (a)

1,654

2,050

(19)

Principal transactions

7,408

5,223

Principal transactions

Lending- and deposit-related fees

539

641

(16)

Commissions and other fees

1,234

1,332

(7)

Commissions and other fees

Card income

315

266

(c)

All other income

373

492

(c)

(24)

All other income

Noninterest revenue

11,523

10,004

Net interest income

2,077

3,572

(42)

Net interest income

Total net revenue(b)

13,600

13,576

—

Total net revenue(b)

Provision for credit losses

445

(87)

Noninterest expense

Compensation expense

4,085

4,006

Noncompensation expense

3,398

3,357

(c)

Noncompensation expense

Total noninterest expense

7,483

7,363

Income before income tax expense

6,059

5,768

Income before income tax expense

Income tax expense

1,638

1,396

(c)

Net income

4,421

4,372

Net income

Financial ratios

Return on equity

(c)

Return on equity

Overhead ratio

Compensation expense as percentage of total net revenue

(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, amortization of the cost of investments and other tax benefits related to alternative energy ~~investments; income tax credits~~investments and ~~amortization of the cost of investments in~~ affordable housing projects; and ~~tax-exempt~~ income from ~~municipal bonds~~tax-exempt securities of ~~$839~~$471 million and ~~$737~~$839 million for the three months ended March 31, 2024 and 2023, ~~and 2022,~~ respectively.

~~(c)~~In Effective January 1, 2024, the ~~first quarter~~Firm adopted updates to the Accounting for Investments in Tax Credit Structures guidance under the modified retrospective method, thereby lowering the amount of ~~2023, the allocations of revenue and expense to CCB~~tax-equivalent adjustments associated with ~~a Merchant Services revenue sharing agreement were discontinued~~the alternative energy investments. Refer to Note 1, 5 and ~~are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.~~

13 for additional information.

Selected income statement data

Three months ended March 31,

Selected income statement data

Three months ended March 31,

(in millions)

2023

2022

Change

Revenue by business

Investment Banking

1,560

2,057

(24)%

Payments

2,396

1,901

(b)

Payments

Lending

267

321

(17)

Total Banking

4,223

4,279

(1)

Total Banking

Fixed Income Markets

5,699

5,698

—

Equity Markets

2,683

3,055

(12)

Equity Markets

Securities Services

1,148

1,068

Credit Adjustments & Other(a)

(153)

(524)

Credit Adjustments & Other(a)

Total Markets & Securities Services

9,377

9,297

Total net revenue

13,600

13,576

—%

Total net revenue

(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. Refer to Notes 2, 3 and 19 for

~~(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.additional information.

Quarterly results

Net income was ~~$4.4~~$4.8 billion, up 1%8%.

Net revenue was $13.6 billion, relatively flat when compared to the prior year.

Banking revenue was ~~$4.2~~$4.5 billion, ~~down 1%~~up 6%.

•Investment Banking revenue was ~~$1.6~~$2.0 billion, ~~down 24%~~up 27%, predominantly driven by ~~lower~~higher Investment Banking fees, ~~down 19%~~up 21%, reflecting higher debt and equity underwriting fees, partially offset by lower ~~debt underwriting~~advisory fees. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.

–Debt underwriting fees were ~~$663 million, down 34%~~$1.0 billion, up 58%, predominantly driven by higher industry-wide issuance in leveraged loans and high-yield bonds, as well as higher issuance in high grade bonds reflecting wallet share gains.

–Equity underwriting fees were ~~$235~~$355 million, ~~down 6%~~up 51%, ~~as challenging market conditions resulted in lower issuance activity.~~driven by IPO and convertible securities offerings, reflecting wallet share gains.

–Advisory fees were ~~$756~~$598 million, down 6%21%, ~~compared to a strong prior year,~~ driven by a lower ~~level~~number of ~~announced deals.~~large completed transactions.

•Payments revenue was $2.4 billion, ~~up 26% and included a gain on an equity investment in the prior year.~~down 1%. Excluding the net impact of equity investments, ~~Payments~~ revenue was ~~up 55%~~down 2%, driven by deposit margin ~~expansion on~~compression reflecting higher rates ~~partially~~paid and higher deposit-related client credits, largely offset by ~~lower~~fee growth and higher average deposits.

•Lending revenue was ~~$267~~$130 million, down ~~17%~~51%, and included ~~$103~~$264 million of fair value losses on ~~hedges of~~credit protection purchased against certain retained ~~loans.~~

loans and lending-related commitments.

2324

Markets & Securities Services revenue was ~~$9.4~~$9.2 billion, ~~up 1%~~down 2%. Markets revenue was ~~$8.4~~$8.0 billion, down 4%5%.

•Fixed Income Markets revenue was ~~$5.7~~$5.3 billion, ~~flat~~down 7%, driven by lower revenues in Rates and Commodities compared ~~to the prior year, reflecting:~~

–~~lower revenue in Currencies & Emerging Markets compared to~~with a strong prior year, ~~and~~

–partially offset by higher revenue in ~~Rates with favorable market conditions early in the quarter and elevated volatility in March 2023, as well as higher revenue in Credit Trading from higher client flows.~~Securitized Products.

•Equity Markets revenue was $2.7 billion, ~~down 12%, driven by lower revenue in Equity Derivatives and Cash Equities,~~relatively flat compared to ~~a strong first quarter in~~ the prior year.

•Securities Services revenue was ~~$1.1~~$1.2 billion, up 7%3%, driven by ~~deposit margin expansion on~~ higher ~~rates, partially offset by lower~~market levels and average ~~deposits and lower average market values of assets under custody.~~deposits.

•Credit Adjustments & Other was a loss of ~~$153~~$15 million, ~~driven by losses on certain components of fair value option elected liabilities,~~ compared with a loss of ~~$524~~$153 million in the prior year.

Noninterest expense was ~~$7.5~~$7.2 billion, ~~up 2%~~down 4%, ~~largely~~predominantly driven by ~~higher compensation, including headcount growth and wage inflation, largely offset by~~ lower ~~revenue-related compensation.~~legal expense.

The provision for credit losses was ~~$58~~$32 million, ~~predominantly driven by net charge-offs of $50 million. The net addition to the allowance for credit losses was driven by net downgrade activity and~~reflecting a ~~deterioration in the Firm's weighted-average economic outlook, largely offset by a reduction in the allowance for client-specific exposures.~~

~~The prior year provision was $445~~$30 million ~~driven by a~~ net addition to the allowance for credit losses.

The provision in the prior year was $58 million, predominantly driven by net charge-offs.

Refer to Credit and Investment Risk Management on pages ~~48-66~~52-70 and Allowance for Credit Losses on pages ~~63-65~~67-69 for a further ~~discussions~~discussion of the credit portfolios and the allowance for credit losses.

Selected metrics

As of or for the three months
ended March 31,

(in millions, except headcount)

2023

2022

Change

Selected metrics

(in millions, except employees)

2024

Selected balance sheet data (period-end)

Total assets

1,436,237

1,460,463

(2)

Total assets

Loans:

Loans retained(a)

187,133

167,791

Loans retained(a)

Loans held-for-sale and loans at fair value(b)

38,335

47,260

(19)

Total loans

225,468

215,051

Total loans

Equity

108,000

103,000

Selected balance sheet data (average)

Total assets

1,429,662

1,407,835

Trading assets-debt and equity instruments

488,767

419,346

Trading assets-debt and equity instruments

Trading assets-derivative receivables

64,016

66,692

(4)

Loans:

Loans retained(a)

185,572

160,976

Loans held-for-sale and loans at fair value(b)

42,569

51,398

(17)

Loans held-for-sale and loans at fair value(b)

Total loans

228,141

212,374

Total loans

Deposits

Equity

108,000

103,000

Headcount

74,352

68,292

Equity

Employees

(a)Loans retained includes credit portfolio loans, loans held by consolidated Firm-administered multi-seller conduits, trade finance loans, other held-for-investment loans and overdrafts.

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

2425

Selected metrics

As of or for the three months
ended March 31,

Selected metrics

As of or for the three months
ended March 31,

(in millions, except ratios)

2023

2022

Change

Credit data and quality statistics

Net charge-offs/(recoveries)

150

Nonperforming assets:

Nonaccrual loans:

Nonaccrual loans retained(a)

832

871

(4)

Nonaccrual loans retained(a)

Nonaccrual loans held-for-sale and loans at fair value(b)

808

949

(15)

Total nonaccrual loans

1,640

1,820

(10)

Total nonaccrual loans

Derivative receivables

291

597

(51)

Assets acquired in loan satisfactions

(5)

Assets acquired in loan satisfactions

Total nonperforming assets

2,017

2,508

(20)

Allowance for credit losses:

Allowance for loan losses

2,454

1,687

Allowance for lending-related commitments

1,301

1,459

(11)

Allowance for lending-related commitments

Total allowance for credit losses

3,755

3,146

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

0.11

0.05

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

Allowance for loan losses to period-end loans retained

1.31

1.01

Allowance for loan losses to period-end loans retained, excluding trade finance and conduits(d)

1.81

1.31

Allowance for loan losses to period-end loans retained, excluding trade finance and conduits(d)

Allowance for loan losses to nonaccrual loans retained(a)

295

194

Nonaccrual loans to total period-end loans

0.73

0.85

Nonaccrual loans to total period-end loans

(a)Allowance for loan losses of ~~$153~~$126 million and ~~$226~~$153 million were held against these nonaccrual loans at March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

(b)At March 31, ~~2023~~2024 and ~~2022,~~2023, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of ~~$99~~$50 million and ~~$283~~$99 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 16-17.

Investment banking fees
Three months ended March 31,
(in millions) 2023 2022 Change
Advisory $ 756 $ 801 (6) %
Equity underwriting 235 249 (6)
Debt underwriting(a)
663 1,000 (34)
Total investment banking fees $ 1,654 $ 2,050 (19) %


Investment banking fees
	Three months ended March 31,
(in millions)	2024		2023		Change
Advisory	$	598	$	756	(21)	%
Equity underwriting	355		235		51
Debt underwriting(a)	1,048		663		58
Total investment banking fees	$	2,001	$	1,654	21	%

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

2526


League table results – wallet share	League table results – wallet share
		Three months ended March 31,								Full-year 2022
		2023				2022
		Rank		Share		Rank		Share			Rank		Share
League table results – wallet share
League table results – wallet share
		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,																																Full-year 2023
	2024
		Rank
		Rank
		Rank																				Share				Rank					Share				Rank						Share
Based on fees(a)	Based on fees(a)
M&A(b)	M&A(b)
M&A(b)
M&A(b)
Global
Global
Global	Global	#	2	10.1	%	#	3	7.5	%		#	2	8.1	%	#	2			9.5		9.5		%		#	2			9.4		9.4	%			#	2			9.2			9.2	%
U.S.	U.S.	1		12.5		3		8.7			2		9.0
Equity and equity-related(c)	Equity and equity-related(c)
Global	Global	2		6.6		1		5.4			2		5.7
Global
Global
U.S.	U.S.	2		11.7		1		12.2			1		13.8
Long-term debt(d)	Long-term debt(d)
Global
Global
Global	Global	1		6.7		1		7.9			1		6.9
U.S.	U.S.	2		9.5		1		12.2			1		12.2
Loan syndications	Loan syndications
Global	Global	1		13.7		1		10.7			1		11.1
Global
Global
U.S.	U.S.	1		15.5		2		10.2			1		12.7
Global investment banking fees(e)	Global investment banking fees(e)	#	1	8.7	%	#	1	7.9	%		#	1	7.9	%	Global investment banking fees(e)		#	1		9.1			9.1	%			#	1		8.3		8.3	%				#	1		8.7			8.7	%

(a)Source: Dealogic as of April ~~3, 2023.~~1, 2024. Reflects the ranking of revenue wallet and market share.

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

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

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

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

Markets revenue

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

are reflected at fair value in principal transactions revenue. Refer to Notes 5 and 6 for a description of the composition of these income statement line items. Refer to Markets revenue on page 7075 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for further information.

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


		Three months ended March 31,						Three months ended March 31,
		2023						2022
	Three months ended March 31,																			Three months ended March 31,
	2024																	2024					2023
(in millions)	(in millions)	Fixed Income Markets		Equity Markets		Total Markets		Fixed Income Markets		Equity Markets		Total Markets		(in millions)	Fixed Income Markets	Equity Markets	Total Markets		Fixed Income Markets		Equity Markets	Total Markets
Principal transactions	Principal transactions	$	4,398	$	3,029	$	7,427	$	3,389	$	2,284	$	5,673
Lending- and deposit-related fees	Lending- and deposit-related fees	70		7		77		78		4		82
Commissions and other fees	Commissions and other fees	144		522		666		157		547		704
All other income	All other income	331		(14)		317		116		(40)		76
Noninterest revenue	Noninterest revenue	4,943		3,544		8,487		3,740		2,795		6,535
Net interest income(a)	Net interest income(a)	756		(861)		(105)		1,958		260		2,218
Total net revenue	Total net revenue	$	5,699	$	2,683	$	8,382	$	5,698	$	3,055	$	8,753

(a)The decline in Equity Markets net interest income was driven by higher funding costs.

2627


Selected metrics	Selected metrics
		As of or for the three months ended March 31,
Selected metrics
Selected metrics
(in millions, except where otherwise noted)	(in millions, except where otherwise noted)	2023		2022		Change
(in millions, except where otherwise noted)

(in millions, except where otherwise noted)

2024
Assets under custody (“AUC”) by asset class (period-end) (in billions):
Assets under custody (“AUC”) by asset class (period-end) (in billions):
Assets under custody (“AUC”) by asset class (period-end) (in billions):	Assets under custody (“AUC”) by asset class (period-end) (in billions):
Fixed Income	Fixed Income	$	14,660	$	15,489	(5)	%
Fixed Income
Fixed Income
Equity
Equity
Equity	Equity	11,320		12,156		(7)
Other(a)	Other(a)	3,745		3,926		(5)
Other(a)
Other(a)
Total AUC
Total AUC
Total AUC	Total AUC	$	29,725	$	31,571	(6)
Merchant processing volume (in billions)(b)	Merchant processing volume (in billions)(b)	$	558.8	$	490.2	14
Merchant processing volume (in billions)(b)
Merchant processing volume (in billions)(b)
Client deposits and other third-party liabilities (average)(c)	Client deposits and other third-party liabilities (average)(c)	$	633,729	$	709,121	(11)	%
Client deposits and other third-party liabilities (average)(c)
Client deposits and other third-party liabilities (average)(c)

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

(b)Represents Firmwide merchant processing volume.

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


International metrics	International metrics
		As of or for the three months ended March 31,
International metrics
International metrics
(in millions, except where otherwise noted)	(in millions, except where otherwise noted)	2023		2022			Change
(in millions, except where otherwise noted)

(in millions, except where otherwise noted)

2024
Total net revenue(a)
Total net revenue(a)
Total net revenue(a)	Total net revenue(a)
Europe/Middle East/Africa	Europe/Middle East/Africa	$	4,268	$	4,692		(9)	%
Europe/Middle East/Africa
Europe/Middle East/Africa
Asia-Pacific
Asia-Pacific
Asia-Pacific	Asia-Pacific	2,133		1,985			7
Latin America/Caribbean	Latin America/Caribbean	562		677			(17)
Latin America/Caribbean
Latin America/Caribbean
Total international net revenue
Total international net revenue
Total international net revenue	Total international net revenue	6,963		7,354			(5)
North America	North America	6,637		6,222		(c)	7
North America
North America
Total net revenue
Total net revenue
Total net revenue	Total net revenue	$	13,600	$	13,576		—

Loans retained (period-end)(a)	Loans retained (period-end)(a)

Loans retained (period-end)(a)

Loans retained (period-end)(a)
Europe/Middle East/Africa
Europe/Middle East/Africa
Europe/Middle East/Africa	Europe/Middle East/Africa	$	38,568	$	38,393		—
Asia-Pacific	Asia-Pacific	14,633		17,926			(18)
Asia-Pacific
Asia-Pacific
Latin America/Caribbean
Latin America/Caribbean
Latin America/Caribbean	Latin America/Caribbean	8,070		8,098			—
Total international loans	Total international loans	61,271		64,417			(5)
Total international loans
Total international loans
North America	North America	125,862		103,374			22
North America
North America
Total loans retained
Total loans retained
Total loans retained	Total loans retained	$	187,133	$	167,791		12

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)

Client deposits and other third-party liabilities (average)(b)
Europe/Middle East/Africa
Europe/Middle East/Africa
Europe/Middle East/Africa	Europe/Middle East/Africa	$	230,833	$	246,497		(6)
Asia-Pacific	Asia-Pacific	126,026		134,767			(6)
Asia-Pacific
Asia-Pacific
Latin America/Caribbean
Latin America/Caribbean
Latin America/Caribbean	Latin America/Caribbean	38,738		43,666			(11)
Total international	Total international	$	395,597	$	424,930		(7)
Total international
Total international
North America	North America	238,132		284,191			(16)
North America
North America
Total client deposits and other third-party liabilities
Total client deposits and other third-party liabilities
Total client deposits and other third-party liabilities	Total client deposits and other third-party liabilities	$	633,729	$	709,121		(11)

AUC (period-end)(b) (in billions)	AUC (period-end)(b) (in billions)

AUC (period-end)(b) (in billions)

AUC (period-end)(b) (in billions)
North America
North America
North America	North America	$	19,883	$	20,723		(4)
All other regions	All other regions	9,842		10,848			(9)
All other regions
All other regions
Total AUC	Total AUC	$	29,725	$	31,571		(6)	%
Total AUC
Total AUC

(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.

2728

COMMERCIAL BANKING

Refer to pages ~~73-75~~78–80 of JPMorgan Chase’s ~~2022~~2023 Form 10-K and Line of Business Metrics on page ~~175~~183 for a discussion of the business profile of CB.

Selected income statement data

Three months ended March 31,

Selected income statement data

Three months ended March 31,

(in millions)

2023

2022

Change

Revenue

Lending- and deposit-related fees

227

364

(38)

Card income

173

167

Card income

All other income

381

336

Noninterest revenue

781

867

(10)

Noninterest revenue

Net interest income

2,730

1,531

Net interest income

Total net revenue(a)

3,511

2,398

Provision for credit losses

417

157

166

Provision for credit losses

Noninterest expense

Compensation expense

641

553

Compensation expense

Noncompensation expense

667

576

Noncompensation expense

Total noninterest expense

1,308

1,129

Income before income tax expense

1,786

1,112

Income before income tax expense

Income tax expense

439

262

Net income

1,347

850

Net income

(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 ~~$82~~$86 million and ~~$69~~$82 million for the three months ended March 31, 2024 and 2023, ~~and 2022,~~ respectively.

(b)Includes First Republic. Refer to page 20 for additional information.


Selected income statement data (continued)	Selected income statement data (continued)
		Three months ended March 31,
Selected income statement data (continued)
Selected income statement data (continued)
		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,
(in millions, except ratios)
(in millions, except ratios)
(in millions, except ratios)	(in millions, except ratios)	2023			2022			Change
Revenue by product	Revenue by product
Revenue by product
Revenue by product
Lending
Lending
Lending	Lending	$	1,222		$	1,105		11	%
Payments	Payments	2,028			1,022			98
Payments
Payments
Investment banking(a)
Investment banking(a)
Investment banking(a)	Investment banking(a)	250			219			14
Other	Other	11			52			(79)
Other
Other
Total net revenue
Total net revenue
Total net revenue	Total net revenue	$	3,511		$	2,398		46

Investment banking revenue, gross(b)		$	881		$	729		21
Investment Banking and Markets revenue, gross(b)

Revenue by client segments
Investment Banking and Markets revenue, gross(b)

Investment Banking and Markets revenue, gross(b)

Revenue by client segment

Revenue by client segment

Revenue by client segment
Middle Market Banking
Middle Market Banking
Middle Market Banking	Middle Market Banking	$	1,681		$	980		72
Corporate Client Banking	Corporate Client Banking	1,176			830			42
Corporate Client Banking
Corporate Client Banking
Commercial Real Estate Banking
Commercial Real Estate Banking
Commercial Real Estate Banking	Commercial Real Estate Banking	642			581			10
Other	Other	12			7			71
Other
Other
Total net revenue
Total net revenue
Total net revenue	Total net revenue	$	3,511		$	2,398		46	%

Financial ratios	Financial ratios

Financial ratios

Financial ratios
Return on equity
Return on equity
Return on equity	Return on equity	18		%	13		%
Overhead ratio	Overhead ratio	37			47
Overhead ratio
Overhead ratio

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

(b)Includes gross revenues earned by the Firm that are subject to a revenue sharing arrangement ~~with~~between CB and the CIB for Investment Banking and Markets' products sold to CB ~~clients through the Investment Banking, Markets or Payments businesses.~~clients. This includes revenues related to fixed income and equity markets products. Refer to Business Segment Results on page 18 for a discussion of revenue sharing.

(c)Includes First Republic. Refer to page 20 for additional information.

(d)Middle Market Banking and Commercial Real Estate Banking included $72 million and $278 million, respectively, for the three months ended March 31, 2024, associated with First Republic.

Quarterly results

Net income was ~~$1.3~~$1.9 billion, up ~~58%~~39%.

Net revenue was ~~$3.5~~$4.0 billion, up ~~46%~~13%. Net interest income was ~~$2.7~~$3.0 billion, up ~~78%~~11%, predominantly driven by First Republic reflecting higher average loans and the accretion of the purchase discount, partially offset by deposit margin ~~expansion on~~ compression reflecting higher rates ~~partially offset by lower average deposits.~~paid.

Noninterest revenue was ~~$781~~$925 million, ~~down 10%~~up 18%, driven ~~by lower~~by:

•higher lending-related revenue as a result of the amortization of the purchase discount on certain acquired lending-related commitments associated with First Republic,

•higher deposit-related fees, ~~due to~~partially offset by the higher level of client credits ~~earned by clients~~ that reduce such fees, ~~partially offset by~~ and

•higher card income and investment banking revenue.

Noninterest expense was ~~$1.3~~$1.5 billion, up ~~16%~~15%, ~~largely~~predominantly driven by higher compensation expense, reflecting an increase in employees including ~~headcount growth, as well as higher volume-related expense.~~front office and technology.

The provision for credit losses was ~~$417~~a net benefit of $31 million, ~~reflecting~~ reflecting:

•a $98 million net reduction in the allowance for credit losses which included an addition to the allowance for credit losses ~~predominantly driven~~associated with net downgrade activity, primarily in Commercial Real Estate, which was more than offset by ~~a deterioration~~updates to certain macroeconomic variables and the impact of changes in the ~~Firm's weighted-average economic outlook~~loan and lending-related commitment portfolios, and

•net ~~downgrade activity.~~charge-offs of $67 million.

The provision ~~for credit losses~~ in the prior year was ~~$157~~$417 million, ~~driven by~~reflecting a net addition to the allowance for credit losses.

Refer to Credit and Investment Risk Management on pages ~~48-66~~52-70 and Allowance for Credit Losses on pages ~~63-65~~67-69 for further discussions of the credit portfolios and the allowance for credit losses.


Selected metrics
	As of or for the three months ended March 31,
(in millions, except employees)	2024			2023		Change
Selected balance sheet data (period-end)
Total assets	$	303,350		$	261,181	16	%
Loans:
Loans retained	281,155		(a)	238,752		18
Loans held-for-sale and loans at fair value	280			1,538		(82)
Total loans	$	281,435		$	240,290	17
Equity	30,000			28,500		5

Period-end loans by client segment
Middle Market Banking	$	79,207	(b)	$	73,329	8
Corporate Client Banking	57,373			58,256		(2)
Commercial Real Estate Banking	144,267		(b)	108,582		33
Other	588			123		378
Total loans	$	281,435		$	240,290	17

Selected balance sheet data (average)
Total assets	$	301,221		$	255,468	18
Loans:
Loans retained	278,330		(c)	236,808		18
Loans held-for-sale and loans at fair value	1,216			1,155		5
Total loans	$	279,546		$	237,963	17

Average loans by client segment
Middle Market Banking	$	78,364	(d)	$	73,030	7
Corporate Client Banking	56,633			56,581		—
Commercial Real Estate Banking	143,959		(d)	108,143		33
Other	590			209		183
Total loans	$	279,546		$	237,963	17

Deposits	265,715		(e)	265,943		—
Equity	30,000			28,500		5

Employees	18,111			15,026		21	%

(a)Includes First Republic. Refer to page 20 for additional information.

(b)As of March 31, 2024, included $5.6 billion and $32.5 billion for Middle Market Banking and Commercial Real Estate Banking, respectively, associated with First Republic.

(c)Average loans retained associated with First Republic were $38.6 billion for the three months ended March 31, 2024.

(d)Average Middle Market Banking and Commercial Real Estate Banking loans associated with First Republic were $5.8 billion and $32.7 billion, respectively, for the three months ended March 31, 2024.

(e)Included $7.1 billion associated with First Republic for the three months ended March 31, 2024. Refer to page 20 for additional information.

2830

Selected metrics
As of or for the three months
ended March 31,
(in millions, except headcount) 2023 2022 Change
Selected balance sheet data (period-end)
Total assets $ 261,181 $ 235,127 11 %
Loans:
Loans retained 238,752 213,073 12
Loans held-for-sale and loans at fair value 1,538 1,743 (12)
Total loans $ 240,290 $ 214,816 12
Equity 28,500 25,000 14
Period-end loans by client segment
Middle Market Banking(a)
$ 73,329 $ 64,306 14
Corporate Client Banking 58,256 46,720 25
Commercial Real Estate Banking 108,582 103,685 5
Other 123 105 17
Total loans(a)
$ 240,290 $ 214,816 12
Selected balance sheet data (average)
Total assets $ 255,468 $ 233,474 9
Loans:
Loans retained 236,808 208,540 14
Loans held-for-sale and loans at fair value 1,155 2,147 (46)
Total loans $ 237,963 $ 210,687 13
Average loans by client segment
Middle Market Banking $ 73,030 $ 62,437 17
Corporate Client Banking 56,581 45,595 24
Commercial Real Estate Banking 108,143 102,498 6
Other 209 157 33
Total loans $ 237,963 $ 210,687 13
Client deposits and other third-party liabilities $ 265,971 $ 316,921 (16)
Equity 28,500 25,000 14
Headcount 15,026 13,220 14 %

~~(a)~~At March 31, 2023 and 2022, total loans included $88 million and $640 million of loans, respectively, under the PPP, of which $80 million and $604 million were in Middle Market Banking, respectively. Refer to Credit Portfolio on pages 108-109 of JPMorgan Chase's 2022 Form 10-K for a further discussion of the PPP.

Selected metrics (continued)

As of or for the three months
ended March 31,

Selected metrics (continued)

As of or for the three months
ended March 31,

(in millions, except ratios)

2023

2022

Change

Credit data and quality statistics

Net charge-offs/(recoveries)

Nonperforming assets

Nonaccrual loans:

Nonaccrual loans retained(a)

918

751

Nonaccrual loans retained(a)

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

—

Total nonaccrual loans

918

751

Total nonaccrual loans

Assets acquired in loan satisfactions

—

Total nonperforming assets

918

768

Total nonperforming assets

Allowance for credit losses:

Allowance for loan losses

3,566

2,357

Allowance for loan losses

Allowance for lending-related commitments

966

762

Total allowance for credit losses

4,532

3,119

Total allowance for credit losses

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

0.06

0.01

Allowance for loan losses to period-end loans retained

1.49

1.11

Allowance for loan losses to period-end loans retained

Allowance for loan losses to nonaccrual loans retained(a)

388

314

Nonaccrual loans to period-end total loans

0.38

0.35

Nonaccrual loans to period-end total loans

(a)Allowance for loan losses of ~~$170~~$249 million and ~~$104~~$170 million was held against nonaccrual loans retained at March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

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

(c)As of March 31, 2024, included a $732 million allowance for First Republic.

2931

ASSET & WEALTH MANAGEMENT

Refer to pages ~~76-78~~81–83 of JPMorgan Chase’s ~~2022~~2023 Form 10-K and Line of Business Metrics on pages ~~175-176~~183-184 for a discussion of the business profile of AWM.

Selected income statement data

(in millions, except ratios)

Three months ended March 31,

2023

2022

Change

(in millions, except ratios)

2024

Revenue

Asset management fees

2,761

2,899

(5)

Asset management fees

Commissions and other fees

181

216

(16)

Commissions and other fees

All other income

391

124

215

Noninterest revenue

3,333

3,239

Noninterest revenue

Net interest income

1,451

1,076

Net interest income

Total net revenue

4,784

4,315

Provision for credit losses

154

(82)

Provision for credit losses

Noninterest expense

Compensation expense

1,735

1,530

Compensation expense

Noncompensation expense

1,356

1,330

Noncompensation expense

Total noninterest expense

3,091

2,860

Income before income tax expense

1,665

1,301

Income before income tax expense

Income tax expense

298

293

Income tax expense

Net income

1,367

1,008

Revenue by line of business

Asset Management

2,434

2,314

Global Private Bank

2,350

2,001

Global Private Bank

Total net revenue

4,784

4,315

Financial ratios

Return on equity

Overhead ratio

Pre-tax margin ratio:

Asset Management

Global Private Bank

Asset & Wealth Management

(a)Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic. Refer to Note 5 for additional information.

(b)Includes First Republic. Refer to page 20 for additional information.

Quarterly results

Net income was ~~$1.4~~$1.3 billion, ~~up 36%~~down 6%.

Net revenue was ~~$4.8~~$5.1 billion, up ~~11%~~7%. Net interest income was ~~$1.5~~$1.6 billion, up ~~35%~~10%. Noninterest revenue was ~~$3.3~~$3.5 billion, up 3%5%.

Revenue from Asset Management was ~~$2.4~~$2.3 billion, down 4%. Excluding the gain of $339 million on CIFM in the prior year, revenue was up 5%11%, 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,~~

~~partially offset by~~

•~~lower performance fees, and~~

•~~lower~~higher asset management fees reflecting ~~a decline in~~strong net inflows and higher average market ~~levels, predominantly offset by the removal of most money market fund fee waivers.~~levels.

Revenue from Global Private Bank was ~~$2.4~~$2.8 billion, up ~~17%~~18%, driven by:

•~~deposit margin expansion reflecting~~ higher ~~rates~~noninterest revenue, largely driven by higher management fees on ~~lower~~strong net inflows and higher average ~~deposit balances,~~

~~partially offset by~~

•~~an investment valuation loss,~~market levels, and the amortization of the purchase discount on certain acquired lending-related commitments associated with First Republic, and

•~~tighter~~higher net interest income, driven by higher average deposits and loans associated with First Republic, and from wider spreads on ~~lower average loans.~~loans, largely offset by deposit margin compression reflecting higher rates paid.

The prior year included an investment valuation loss.

Noninterest expense was ~~$3.1~~$3.5 billion, up 8%12%, ~~predominantly~~largely driven by by:

•higher compensation ~~due to headcount growth, higher~~ including:

–revenue-related compensation, continued growth in private banking advisor teams, and

–the impact of ~~acquisitions.~~First Republic, and the acquisition of J.P. Morgan Asset Management China (formerly CIFM), as well as

•higher distribution fees.

The provision for credit losses was ~~$28 million.~~a net benefit of $57 million, reflecting a net reduction in the allowance for credit losses.

The provision in the prior year was $28 million, reflecting a net addition to the allowance for credit losses.

Refer to Note 5 for additional information on lending related fees.

3032

Selected metrics

As of or for the three months
ended March 31,

(in millions, except ranking data, headcount and ratios)

2023

2022

Change

% of JPM mutual fund assets rated as 4- or 5-star(a)

% of JPM mutual fund assets ranked in 1st or 2nd quartile:(b)

Selected metrics

As of or for the three months
ended March 31,

(in millions, except ranking data, ratios and employees)

% of JPM mutual fund assets and ETFs rated as 4- or 5-star(a)

% of JPM mutual fund assets and ETFs ranked in 1st or 2nd quartile:(b)

1 year

3 years

5 years

Selected balance sheet data (period-end)(c)

Total assets

232,516

233,070

—

Loans

211,140

215,130

(2)

Loans

Deposits

225,831

287,293

(21)

Deposits

Equity

16,000

17,000

(6)

Selected balance sheet data (average)(c)

Total assets

228,823

232,310

(2)

Loans

211,469

214,611

(1)

Loans

Deposits

224,354

287,756

(22)

Equity

16,000

17,000

(6)

Equity

Headcount

26,773

23,366

Employees

Number of Global Private Bank client advisors

3,189

2,798

Credit data and quality statistics(c)

Net charge-offs/(recoveries)

(2)

(1)

(100)

Nonaccrual loans

477

626

(24)

Nonaccrual loans

Allowance for credit losses:

Allowance for loan losses

526

516

Allowance for loan losses

Allowance for lending-related commitments

—

Total allowance for credit losses

545

535

Total allowance for credit losses

Net charge-off/(recovery) rate

—

Allowance for loan losses to period-end loans

0.25

0.24

Allowance for loan losses to period-end loans

Allowance for loan losses to nonaccrual loans

110

Nonaccrual loans to period-end loans

0.23

0.29

Nonaccrual loans to period-end loans

(a)Represents the Morningstar Rating for all domiciled funds except for Japan domiciled funds which use Nomura. Includes only Asset Management retail active open-ended mutual funds and active ETFs that have a rating. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds. Prior-period amounts have been revised to conform with the current presentation.

(b)Quartile ranking sourced from Morningstar, Lipper and Nomura based on country of domicile. Includes only Asset Management retail active open-ended mutual funds and active ETFs that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds. Prior-period amounts have been revised to conform with the current presentation.

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

(d)Includes First Republic. Refer to page 20 for additional information.

(e)Included $10.7 billion associated with First Republic for the three months ended March 31, 2024.

(f)Included $12.6 billion associated with First Republic for the three months ended March 31, 2024.

(g)

Includes First Republic.

Client assets

Assets under management ~~of $3.0~~were $3.6 trillion, ~~were~~ up 2%19%, while client assets ~~of $4.3~~were $5.2 trillion, ~~were~~ up 6%20%, each driven by higher market levels and continued net ~~inflows and the impact of the acquisition of Global Shares, partially offset by lower market levels.~~inflows.


Client assets	Client assets
		As of March 31,
		As of March 31,
		As of March 31,
		As of March 31,
(in billions)	(in billions)	2023			2022		Change		(in billions)		2024						2023			Change
Assets by asset class	Assets by asset class
Liquidity
Liquidity
Liquidity	Liquidity	$	761		$	657	16	%	$	927			$		$	761		22	22	%
Fixed income	Fixed income	682			657		4
Equity	Equity	733			739		(1)
Multi-asset	Multi-asset	627			699		(10)
Alternatives	Alternatives	203			208		(2)
Total assets under management	Total assets under management	3,006			2,960		2
Custody/brokerage/administration/deposits	Custody/brokerage/administration/deposits	1,341		(b)	1,156		16
Total client assets(a)	Total client assets(a)	$	4,347		$	4,116	6

Assets by client segment	Assets by client segment
Assets by client segment
Assets by client segment
Private Banking
Private Banking
Private Banking	Private Banking	$	826		$	777	6
Global Institutional	Global Institutional	1,347			1,355		(1)
Global Funds	Global Funds	833			828		1
Total assets under management	Total assets under management	$	3,006		$	2,960	2

Private Banking	Private Banking	$	2,090	(b)	$	1,880	11
Private Banking
Private Banking
Global Institutional	Global Institutional	1,417			1,402		1
Global Funds	Global Funds	840			834		1
Total client assets(a)	Total client assets(a)	$	4,347		$	4,116	6	%	Total client assets(a)		$	5,219		$			$	4,347		20	20	%

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

~~(b)Includes the impact of the acquisition of Global Shares.~~

Client assets (continued)

Three months ended March 31,
(in billions) 2023 2022
Assets under management rollforward
Beginning balance $ 2,766 $ 3,113
Net asset flows:
Liquidity 93 (52)
Fixed income 26 (3)
Equity 22 11
Multi-asset (2) 6
Alternatives 1 5
Market/performance/other impacts 100 (120)
Ending balance, March 31 $ 3,006 $ 2,960
Client assets rollforward
Beginning balance $ 4,048 $ 4,295
Net asset flows 152 (5)
Market/performance/other impacts 147 (174)
Ending balance, March 31 $ 4,347 $ 4,116


Client assets (continued)
	Three months ended March 31,
(in billions)	2024		2023
Assets under management rollforward
Beginning balance	$	3,422	$	2,766
Net asset flows:
Liquidity	(4)		93
Fixed income	14		26
Equity	21		22
Multi-asset	(2)		(2)
Alternatives	1		1
Market/performance/other impacts	112		100
Ending balance, March 31	$	3,564	$	3,006

Client assets rollforward
Beginning balance	$	5,012	$	4,048
Net asset flows	43		152
Market/performance/other impacts	164		147
Ending balance, March 31	$	5,219	$	4,347

3133

International

Three months ended March 31,

International

Three months ended March 31,

(in millions)

2023

2022

Change

Total net revenue(a)

Europe/Middle East/Africa

847

770

Asia-Pacific

477

460

Asia-Pacific

Latin America/Caribbean

240

251

(4)

Total international net revenue

1,564

1,481

Total international net revenue

North America

3,220

2,834

Total net revenue(a)

4,784

4,315

Total net revenue(a)

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


		As of March 31,
		As of March 31,
		As of March 31,
		As of March 31,
(in billions)
(in billions)
(in billions)	(in billions)	2023		2022		Change
Assets under management	Assets under management
Assets under management
Assets under management
Europe/Middle East/Africa
Europe/Middle East/Africa
Europe/Middle East/Africa	Europe/Middle East/Africa	$	515	$	532	(3)	%
Asia-Pacific	Asia-Pacific	244		237		3
Asia-Pacific
Asia-Pacific
Latin America/Caribbean
Latin America/Caribbean
Latin America/Caribbean	Latin America/Caribbean	74		75		(1)
Total international assets under management	Total international assets under management	833		844		(1)
Total international assets under management
Total international assets under management
North America	North America	2,173		2,116		3
North America
North America
Total assets under management
Total assets under management
Total assets under management	Total assets under management	$	3,006	$	2,960	2

Client assets	Client assets

Client assets

Client assets
Europe/Middle East/Africa
Europe/Middle East/Africa
Europe/Middle East/Africa	Europe/Middle East/Africa	$	649	$	653	(1)
Asia-Pacific	Asia-Pacific	367		354		4
Asia-Pacific
Asia-Pacific
Latin America/Caribbean
Latin America/Caribbean
Latin America/Caribbean	Latin America/Caribbean	204		190		7
Total international client assets	Total international client assets	1,220		1,197		2
Total international client assets
Total international client assets
North America
North America
North America	North America	3,127		2,919		7
Total client assets	Total client assets	$	4,347	$	4,116	6	%
Total client assets
Total client assets

3234

CORPORATE

Refer to pages ~~79-80~~84–85 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a discussion of Corporate.

Selected income statement and balance sheet data

As of or for the three months
ended March 31,

(in millions, except headcount)

2023

2022

Change

Selected income statement and balance sheet data

As of or for the three months
ended March 31,

(in millions, except employees)

Revenue

Principal transactions

(161)

Principal transactions

Investment securities losses

(868)

(394)

(120)

All other income

210

(85)

All other income

Noninterest revenue

(755)

(345)

(119)

Net interest income

1,740

(536)

Net interest income

Total net revenue(a)

985

(881)

Provision for credit losses

370

Provision for credit losses

Noninterest expense

160

184

(13)

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

455

(1,094)

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

Income tax expense/(benefit)

211

(238)

Net income/(loss)

244

(856)

Net income/(loss)

Total net revenue

Treasury and CIO

1,106

(944)

Treasury and CIO

Other Corporate

(121)

Total net revenue

985

(881)

Total net revenue

Net income/(loss)

Treasury and CIO

624

(748)

Treasury and CIO

Other Corporate

(380)

(108)

(252)

Total net income/(loss)

244

(856)

Total net income/(loss)

Total assets (period-end)

1,307,989

1,539,844

(15)

Loans (period-end)

2,267

1,957

Loans (period-end)

Deposits (period-end)(b)

19,458

1,434

Headcount

44,743

39,802

Deposits (period-end)(b)

Employees

(a)Included tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of ~~$56~~$49 million and ~~$58~~$56 million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

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

(c)Includes the impact of the First Republic acquisition. Refer to Note 5 and 26 for additional information.

(d)Includes the increase to the FDIC special assessment. Refer to Note 5 for additional information.

Quarterly results

Net income was ~~$244~~$676 million, compared with ~~a net loss of $856~~$244 million in the prior year.

Net revenue was ~~$985 million, compared with a net loss of $881 million in the prior year, driven by higher net~~$2.2 billion, up 124%.

Net interest income was $2.5 billion, up 42%, due to the impact of balance sheet mix and higher rates.

Noninterest revenue was a loss of ~~$755~~$275 million, ~~compared with a loss of $345 million in the prior year,~~ driven ~~by:~~

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

Noninterest expense of $1.3 billion was up $1.1 billion driven by:

•~~portfolio,~~the $725 million increase to the FDIC special assessment, and

•the ~~absence of proceeds~~ impact from ~~an insurance settlement in the prior year~~First Republic, largely integration and restructuring costs.

~~partially offset by~~

•~~higher net gains~~Refer to Business Segment Results on ~~certain legacy private equity investments, compared with net losses in~~page 20 for additional information on First Republic and Note 5 for additional information on the ~~prior year.~~

~~Noninterest expense of $160 million was down $24 million.~~FDIC special assessment.

The provision for credit losses was $27 million. The provision in the prior year was $370 million, reflecting an addition to the allowance for credit losses, including an ~~allowance for credit losses~~addition associated with certain Other assets.

Refer to Note 9 for additional information on the investment securities portfolio, and Note 12 for additional information on the allowance for credit losses.

~~The change in the current period tax expense was driven by the level and mix of income and expenses subject to U.S. federal and state and local taxes that also impacted the Firm's tax reserves.~~

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

3335

Treasury and CIO overview

At March 31, ~~2023,~~2024, 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 9 for further information on the Firm’s investment securities portfolio and internal risk ratings.

Refer to Liquidity Risk Management on pages ~~42-47~~44-51 for further information on liquidity and funding risk. Refer to Market Risk Management on pages ~~67-72~~71-76 for information on interest rate and foreign exchange risks.

Selected income statement and balance sheet data
As of or for the three months
ended March 31,
(in millions) 2023 2022 Change
Investment securities losses $ (868) $ (394) (120) %
Available-for-sale securities (average) $ 202,776 $ 304,314 (33)
Held-to-maturity securities (average)(a)
417,350 364,814 14
Investment securities portfolio (average) $ 620,126 $ 669,128 (7)
Available-for-sale securities (period-end) $ 195,228 $ 310,909 (37)
Held-to-maturity securities (period-end)(a)
412,827 366,585 13
Investment securities portfolio, net of allowance for credit losses (period-end)(b)
$ 608,055 $ 677,494 (10) %


Selected income statement and balance sheet data
	As of or for the three months ended March 31,
(in millions)	2024			2023		Change
Investment securities losses	$	(366)		$	(868)	58	%
Available-for-sale securities (average)	$	222,943		$	202,776	10
Held-to-maturity securities (average)(a)	354,759			417,350		(15)
Investment securities portfolio (average)	$	577,702		$	620,126	(7)
Available-for-sale securities (period-end)	$	233,770	(c)	$	195,228	20
Held-to-maturity securities (period-end)(a)	334,527			412,827		(19)
Investment securities portfolio, net of allowance for credit losses (period-end)(b)	$	568,297		$	608,055	(7)	%

(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, the Firm transferred $78.3 billion of investment securities from AFS to HTM for capital management purposes. Refer to Note 19 of this Form 10-Q and Note 91 of JPMorgan Chase’s 2023 Form 10-K for additional information on the new hedge accounting guidance.

(b)AtAs of March 31, ~~2023~~2024 and ~~2022,~~2023, the allowance for credit losses on investment securities was $120 million and $61 million, ~~and $41 million,~~ respectively.

(c)As of March 31, 2024, included $20.1 billion of AFS securities associated with First Republic. Refer to Note 26 for additional information.

3436

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 business, and the associated risks, in a manner that balances serving the interests of its clients, customers and investors, and protecting the safety and soundness of the Firm.

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

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

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

•A Firmwide risk 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 framework

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

Refer to pages ~~81-84~~86–89 of JPMorgan Chase’s ~~2022~~2023 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 ~~2022~~2023 Form 10-K discuss the risk governance and oversight functions in place to manage the risks inherent in the Firm’s business activities.

Risk governance and oversight functions

Form 10-Q page reference

Form 10-K page reference

Risk governance and oversight functions

Form 10-Q page reference

Form 10-K page reference

Strategic Risk

Capital Risk

36–41

86-96

Capital Risk

38–43

91–101

Liquidity Risk

42-47

97-104

Liquidity Risk

44–51

102-109

Reputation Risk

105

Reputation Risk

110

Consumer Credit Risk

50–53

110-115

Consumer Credit Risk

54–57

114-119

Wholesale Credit Risk

54–62

116-126

Wholesale Credit Risk

58–66

120-130

Investment Portfolio Risk

130

Investment Portfolio Risk

134

Market Risk

67–72

131-138

Market Risk

71–76

135-143

Country Risk

139-140

Country Risk

144-145

Climate Risk

141

Climate Risk

146

Operational Risk

142-148

Operational Risk

147-150

Compliance Risk

145

Compliance Risk

151

Conduct Risk

146

Conduct Risk

152

Legal Risk

147

Legal Risk

153

Estimations and Model Risk

148

Estimations and Model Risk

154

3537

CAPITAL RISK MANAGEMENT

Capital risk is the risk that 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~~91-101 of JPMorgan Chase’s ~~2022~~2023 Form 10-K, Note 21 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"), which are on-balance sheet assets and off-balance sheet exposures, weighted according to risk. ~~Two~~Under the rules currently in effect, 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~~these 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~~

In July 2023, the Board of Governors of the Federal Reserve System (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", which is referred to in this Form 10-Q as the "U.S. Basel III proposal". Under the proposal, changes to the framework 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 RWA, 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. global systemically important banks ("GSIBs"). The proposed effective date is July 1, 2025, with a three-year transition period applicable to the expanded risk-based approach.

Under the requirements of the U.S. Basel III proposal, the new expanded risk-based approach, when fully phased-in, would be the Firm's binding constraint. The Firm is managing its CET1 capital in anticipation of the finalization of the U.S. Basel III proposal.

Refer to page 92 of JPMorgan Chase’s 2023 Form 10-K for additional information on the U.S. Basel III proposal.

As of March 31, 2024, the Advanced Total Capital ratio is the most binding constraint of the Firm's Basel III risk-based ratios. However, as of March 31, 2024, with respect to the CET1 and Tier 1 risk-based ratios, the Standardized ratios are ~~currently~~ more binding than the ~~Basel III~~ Advanced ~~risk-based~~ ratios.

Basel III also includes a requirement for Advanced Approaches banking organizations, including the Firm, to calculate its SLR. ~~Refer to SLR on page 39 for additional information.~~

~~Key Regulatory Developments~~

~~CECL regulatory capital transition~~

Beginning January 1, 2022, the $2.9 billion CECL capital benefit, 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 March 31, 2023, the Firm's CET1 capital reflected the remaining $1.4 billion benefit associated with the CECL capital transition provisions.

Additionally, effective January 1, 2023, the Firm phased out 50% of the other CECL capital transition provisions which impacted Tier 2 capital, adjusted average assets, total leverage exposure and RWA, as applicable.

Refer to ~~Capital Risk Management on pages 86-96~~page 41 of this Form 10-Q and ~~Note 1~~page 98 of JPMorgan ~~Chase’s 2022~~Chase's 2023 Form 10-K for ~~further~~additional information on ~~CECL capital transition provisions and the CECL accounting guidance.~~SLR.

Refer to page 93 of JPMorgan Chase's 2023 Form 10-K for information on Other Key Regulatory Developments.

~~Risk-based Capital Targets~~

The Firm’s current target for its Basel III Standardized CET1 capital ratio is 13.0%, which the Firm surpassed in both the fourth quarter of 2022 and the first quarter of 2023. With consideration for an increase in the global systemically important banks ("GSIB") surcharge in 2024, the Firm has maintained a target ratio of 13.5% for the first quarter of 2024, which assumes no change in the Stress Capital Buffer ("SCB"). The Firm’s quarterly capital ratios may vary from these targets dependent on market conditions. These targets are based on the Basel III capital rules currently in effect.

3638

Selected capital and RWA data

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~~91-101 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a further discussion of these capital metrics. Refer to Note 21 for JPMorgan Chase Bank, N.A.’s risk-based and leverage-based capital metrics.

Standardized Advanced
(in millions, except ratios) March 31, 2023 December 31, 2022
Capital ratio requirements(b)
March 31, 2023 December 31, 2022
Capital ratio requirements(b)
Risk-based capital metrics:(a)
CET1 capital $ 227,144 $ 218,934 $ 227,144 $ 218,934
Tier 1 capital 253,837 245,631 253,837 245,631
Total capital 286,398 277,769 273,122 264,583
Risk-weighted assets 1,647,363 1,653,538 1,633,774 1,609,773
CET1 capital ratio 13.8 % 13.2 % 12.5 % 13.9 % 13.6 % 11.0 %
Tier 1 capital ratio 15.4 14.9 14.0 15.5 15.3 12.5
Total capital ratio 17.4 16.8 16.0 16.7 16.4 14.5


	Standardized								Advanced
(in millions, except ratios)	March 31, 2024			December 31, 2023			Capital ratio requirements(b)		March 31, 2024				December 31, 2023				Capital ratio requirements(b)
Risk-based capital metrics:(a)
CET1 capital	$	257,569		$	250,585				$	257,569			$	250,585
Tier 1 capital	280,771			277,306					280,771				277,306
Total capital	312,149			308,497					298,766			(c)	295,417			(c)
Risk-weighted assets	1,712,081			1,671,995					1,681,317			(c)	1,669,156			(c)
CET1 capital ratio	15.0		%	15.0		%	11.9	%	15.3		%		15.0		%		11.5	%
Tier 1 capital ratio	16.4			16.6			13.4		16.7				16.6				13.0
Total capital ratio	18.2			18.5			15.4		17.8				17.7				15.0

(a)The capital metrics reflect the CECL capital transition provisions. As of March 31, 2024, CET1 capital reflected the remaining $720 million CECL benefit and will be fully phased in as of January 1, 2025; as of December 31, 2023, CET1 capital reflected a $1.4 billion benefit. Refer to Note 21 for additional information.

(b)Represents minimum requirements and regulatory buffers applicable to the Firm for the period ended March 31, ~~2023.~~2024. For the period ended December 31, ~~2022,~~2023, the Basel III Standardized CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were ~~12.0%~~11.4%, ~~13.5%~~12.9%, and ~~15.5%~~14.9%, respectively; the Basel III Advanced CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were ~~10.5%~~11.0%, ~~12.0%~~12.5%, and ~~14.0%~~14.5%, respectively. Refer to Note 21 for additional information.

Three months ended
(in millions, except ratios) March 31, 2023 December 31, 2022
Capital ratio requirements(c)
Leverage-based capital metrics:(a)
Adjusted average assets(b)
$ 3,656,598 $ 3,703,873
Tier 1 leverage ratio 6.9 % 6.6 % 4.0 %
Total leverage exposure $ 4,327,863 $ 4,367,092
SLR 5.9 % 5.6 % 5.0 %
(c)Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by the transition provisions in the U.S. capital rules. Refer to Note 26 of this Form 10-Q and page 96 of JPMorgan Chase’s 2023 Form 10-K for additional information on First Republic acquisition.


Three months ended (in millions, except ratios)	March 31, 2024			December 31, 2023			Capital ratio requirements(c)
Leverage-based capital metrics:(a)
Adjusted average assets(b)	$	3,913,677		$	3,831,200
Tier 1 leverage ratio	7.2		%	7.2		%	4.0	%
Total leverage exposure	$	4,634,634		$	4,540,465
SLR	6.1		%	6.1		%	5.0	%

(a)The capital metrics reflect the CECL capital transition provisions. Refer to Note 21 for additional information.

(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 21 for additional information.

3739

Capital components

The following table presents reconciliations of total stockholders’ equity to Basel III CET1 capital, Tier 1 capital and Total capital as of March 31, ~~2023~~2024 and December 31, ~~2022.~~2023.


(in millions)	(in millions)	March 31, 2023		December 31, 2022		(in millions)	March 31, 2024	December 31, 2023
Total stockholders’ equity	Total stockholders’ equity	$	303,082	$	292,332
Less: Preferred stock	Less: Preferred stock	27,404		27,404
Common stockholders’ equity	Common stockholders’ equity	275,678		264,928
Add:	Add:
Certain deferred tax liabilities(a)	Certain deferred tax liabilities(a)	2,754		2,510
Certain deferred tax liabilities(a)
Certain deferred tax liabilities(a)
Other CET1 capital adjustments(b)	Other CET1 capital adjustments(b)	4,939		6,221
Less:	Less:
Goodwill(c)	Goodwill(c)	54,036		53,501
Goodwill(c)
Goodwill(c)
Other intangible assets	Other intangible assets	2,191		1,224

Standardized/Advanced CET1 capital
Standardized/Advanced CET1 capital
Standardized/Advanced CET1 capital	Standardized/Advanced CET1 capital	$	227,144	$	218,934
Add: Preferred stock	Add: Preferred stock	27,404		27,404
Less: Other Tier 1 adjustments	Less: Other Tier 1 adjustments	711		707
Standardized/Advanced Tier 1 capital	Standardized/Advanced Tier 1 capital	$	253,837	$	245,631
Long-term debt and other instruments qualifying as Tier 2 capital	Long-term debt and other instruments qualifying as Tier 2 capital	$	13,725	$	13,569
Qualifying allowance for credit losses(d)	Qualifying allowance for credit losses(d)	19,616		19,353
Other	Other	(780)		(784)
Standardized Tier 2 capital	Standardized Tier 2 capital	$	32,561	$	32,138
Standardized Total capital	Standardized Total capital	$	286,398	$	277,769
Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)		(13,276)		(13,186)
Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)(f)
Advanced Tier 2 capital	Advanced Tier 2 capital	$	19,285	$	18,952
Advanced Total capital	Advanced Total capital	$	273,122	$	264,583

(b)As of March 31, ~~2023~~2024 and December 31, ~~2022, includes~~2023, included a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of ~~$4.6~~$5.4 billion and ~~$5.2~~$4.3 billion and the benefit from the CECL capital transition provisions of ~~$1.4 billion~~$720 million and ~~$2.2~~$1.4 billion, respectively.

(c)Goodwill deducted from capital includes goodwill associated with equity method investments in nonconsolidated financial institutions based on regulatory requirements. Refer to ~~Principal investment risk on~~ page 6670 for additional ~~information.~~information on principal investment risk.

(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. Refer to Note 21 for additional information on the CECL capital transition.

(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)As of March 31, 2024 and December 31, 2023, included an incremental $634 million and $655 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules.

(g)As of March 31, 2024, for capital purposes, included $6.0 billion of preferred stock for which notices of redemption were issued during the first quarter and which were redeemed in the second quarter. Refer to Note 17 for additional information.

Capital rollforward

The following table presents the changes in Basel III CET1 capital, Tier 1 capital and Tier 2 capital for the three months ended March 31, ~~2023.~~2024.


Three months ended March 31, (in millions)	~~2023~~2024
Standardized/Advanced CET1 capital at December 31, ~~2022~~2023	$	~~218,934~~250,585
Net income applicable to common equity	~~12,266~~13,022
Dividends declared on common stock	~~(2,963)~~(3,348)
Net purchase of treasury stock	~~(2,036)~~(1,829)
Changes in additional paid-in capital	~~111~~ (225)
Changes related to AOCI applicable to capital:
Unrealized gains/(losses) on investment securities	~~2,212~~141
Translation adjustments, net of hedges(a)	~~197~~ (204)
Fair value hedges	(21)
Defined benefit pension and other postretirement employee benefit (“OPEB”) plans	~~(55)~~26
Changes related to other CET1 capital adjustments(b)	~~(1,501)~~(578)
Change in Standardized/Advanced CET1 capital	~~8,210~~6,984
Standardized/Advanced CET1 capital at March 31, ~~2023~~2024	$	~~227,144~~257,569
Standardized/Advanced Tier 1 capital at December 31, ~~2022~~2023	$	~~245,631~~277,306
Change in CET1 capital(b)	~~8,210~~6,984
~~Redemptions~~Net redemptions of noncumulative perpetual preferred stock(c)	— (3,504)
Other	~~(4)~~(15)
Change in Standardized/Advanced Tier 1 capital	~~8,206~~3,465
Standardized/Advanced Tier 1 capital at March 31, ~~2023~~2024	$	~~253,837~~280,771
Standardized Tier 2 capital at December 31, ~~2022~~2023	$	~~32,138~~31,191
Change in long-term debt and other instruments qualifying as Tier 2	~~156~~ (89)
Change in qualifying allowance for credit losses(b)	~~263~~430
Other	4 (154)
Change in Standardized Tier 2 capital	~~423~~187
Standardized Tier 2 capital at March 31, ~~2023~~2024	$	~~32,561~~31,378
Standardized Total capital at March 31, ~~2023~~2024	$	~~286,398~~312,149
Advanced Tier 2 capital at December 31, ~~2022~~2023	$	~~18,952~~18,111
Change in long-term debt and other instruments qualifying as Tier 2	~~156~~ (89)
Change in qualifying allowance for credit losses(b)(d)	~~173~~127
Other	4 (154)
Change in Advanced Tier 2 capital	~~333~~ (116)
Advanced Tier 2 capital at March 31, ~~2023~~2024	$	~~19,285~~17,995
Advanced Total capital at March 31, ~~2023~~2024	$	~~273,122~~298,766

(a)Includes foreign currency translation adjustments and the impact of related derivatives.

(b)Includes the impact of the CECL capital transition provisions and the cumulative effect of changes in accounting principles. Refer to Note 1 for additional information on changes in accounting principles and Note 21 for additional information on the CECL capital transition.

(c)As of March 31, 2024, for capital purposes, included $6.0 billion of preferred stock for which notices of redemption were issued during the first quarter and which were redeemed in the second quarter. Refer to Note 17 for additional information.

(d)As of March 31, 2024 and December 31, 2023, included an incremental $634 million and $655 million allowance for credit losses, respectively, on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules.

3840

RWA rollforward

The following table presents changes in the components of RWA under Basel III Standardized and Advanced approaches for the three months ended March 31, ~~2023.~~2024. The amounts in the rollforward categories are estimates, based on the predominant driver of the change.


		Standardized						Advanced
Three months ended March 31, 2023 (in millions)		Credit risk RWA(c)		Market risk RWA		Total RWA		Credit risk RWA(c)		Market risk RWA		Operational risk RWA		Total RWA
December 31, 2022		$	1,568,536	$	85,002	$	1,653,538	$	1,078,076	$	85,432	$	446,265	$	1,609,773
	Standardized																			Standardized					Advanced
Three months ended March 31, 2024 (in millions)																Three months ended March 31, 2024 (in millions)	Credit risk RWA(c)	Market risk RWA	Total RWA		Credit risk RWA(c)(d)	Market risk RWA	Operational risk RWA	Total RWA
December 31, 2023
Model & data changes(a)	Model & data changes(a)	(5,120)		(839)		(5,959)		(1,555)		(839)		—		(2,394)
Movement in portfolio levels(b)	Movement in portfolio levels(b)	3,166		(3,382)		(216)		28,636		(3,580)		1,339		26,395
Changes in RWA	Changes in RWA	(1,954)		(4,221)		(6,175)		27,081		(4,419)		1,339		24,001
March 31, 2023		$	1,566,582	$	80,781	$	1,647,363	$	1,105,157	$	81,013	$	447,604	$	1,633,774
March 31, 2024

(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, changes in book size, impacts associated with the First Republic acquisition, including ~~position rolloffs in legacy portfolios in Home Lending,~~the benefit of the shared-loss agreements entered into with the FDIC, changes in composition and credit quality, market movements, and deductions for excess eligible allowances for credit ~~reserves~~losses not eligible for inclusion in Tier 2 capital; for Market risk RWA, changes in position, market movements, and 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 March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, the Basel III Standardized Credit risk RWA included wholesale and retail off balance-sheet RWA of ~~$208.7~~$205.9 billion and ~~$210.1~~$208.5 billion, respectively; and the Basel III Advanced Credit risk RWA included wholesale and retail off balance-sheet RWA of ~~$184.6~~$187.8 billion and ~~$180.8~~$188.5 billion, respectively.

(d)As of March 31, 2024 and December 31, 2023, Credit risk RWA reflected approximately $50.7 billion and $52.4 billion, respectively, of RWA calculated under the Standardized approach for certain assets associated with First Republic 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 9398 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for additional information.

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

Three months ended
(in millions, except ratio)

March 31,
2023

December 31, 2022

Three months ended
(in millions, except ratio)

Tier 1 capital

253,837

245,631

Total average assets

3,709,977

3,755,271

Total average assets

Less: Regulatory capital adjustments(a)

53,379

51,398

Total adjusted average assets(b)

3,656,598

3,703,873

Total adjusted average assets(b)

Add: Off-balance sheet exposures(c)

671,265

663,219

Total leverage exposure

4,327,863

4,367,092

Total leverage exposure

SLR

5.9

5.6

SLR

(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. Refer to Note 21 for additional information on the CECL capital transition.

(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. 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. The capital that the Firm has accumulated to meet the increased requirements of the U.S. Basel III proposal has generally been retained in Corporate. Refer to line of business equity on page 9398 of JPMorgan Chase’s ~~2022~~2023 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)	March 31, 2023		December 31, 2022		(in billions)	March 31, 2024	December 31, 2023
Consumer & Community Banking	Consumer & Community Banking	$	52.0	$	50.0
Corporate & Investment Bank	Corporate & Investment Bank	108.0		103.0
Commercial Banking	Commercial Banking	28.5		25.0
Asset & Wealth Management	Asset & Wealth Management	16.0		17.0
Corporate	Corporate	71.2		69.9
Total common stockholders’ equity	Total common stockholders’ equity	$	275.7	$	264.9

3941

Capital actions

Common stock dividends

The Firm’s common stock dividends are planned as part of the Capital Management governance framework in line with the Firm’s capital management objectives.

On March 19, 2024, the Firm announced that its Board of Directors had declared a quarterly common stock dividend ~~is currently $1.00~~of $1.15 per share, payable on April 30, 2024, an increase from the prior dividend of $1.05 per share. The Firm’s dividends are subject to approval by the Board of Directors on a quarterly basis.

Common stock

The Firm is authorized to purchase up to $30 billion under its common share repurchase program previously approved by the Board of Directors.

The following table sets forth the Firm’s repurchases of common stock for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023.

Three months ended March 31,

(in millions)

2023

2022

Total number of shares of common stock repurchased

22.0

18.1

Aggregate purchase price of common stock repurchases

2,940

2,500

Total number of shares of common stock repurchased

Aggregate purchase price of common stock repurchases(a)

(a)Excludes excise tax and commissions. As part of the Inflation Reduction Act of 2022, a 1% excise tax was imposed on net share repurchases effective January 1, 2023.

The Board of Directors’ authorization to repurchase common shares is utilized at management’s discretion. The $30 billion common share repurchase program approved by the Board does not establish specific price targets or timetables. Management determines the amount and timing of common share repurchases based on various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm’s capital position (taking into account goodwill and intangibles); internal capital generation; current and proposed future capital requirements; and other investment opportunities. The amount of common shares that the Firm repurchases in any period may be substantially more or less than the amounts estimated or actually repurchased in prior periods, reflecting the dynamic nature of the decision-making process.

Refer to Capital actions on page 9499 of JPMorgan Chase’s ~~2022~~2023 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 ~~177-178~~185-186 of this Form 10-Q and page 3435 of JPMorgan Chase’s ~~2022~~2023 Form 10-K, respectively, for additional information regarding repurchases of the Firm’s equity securities.

Preferred stock

Preferred stock dividends declared were ~~$356~~$397 million and ~~$397~~$356 million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

Refer to Note 17 of this Form 10-Q and Note 21 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for additional information on the Firm’s preferred stock, including the issuance and redemption of preferred stock.

Subordinated Debt

Refer to Long-term funding ~~and issuance~~ on page 4650 of this Form 10-Q and Note 20 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for additional information on the Firm’s subordinated debt.

Capital planning and stress testing

Comprehensive Capital Analysis and Review

On April 5, ~~2023,~~2024, the Firm submitted its ~~2023~~2024 Capital Plan to the Federal Reserve under the Federal ~~Reserve’s~~Reserve's Comprehensive Capital Analysis and Review ("CCAR") process. The Firm anticipates that the Federal Reserve will disclose summary information regarding the ~~Firm’s~~Firm's stress test results by June 30, ~~2023.~~2024. Following the Federal Reserve's disclosure, the Firm expects to disclose its indicative SCB requirement, which will become effective October 1, ~~2023.~~2024. The Firm's SCB is currently ~~4.0%~~2.9%.

Refer to Capital planning and stress testing on pages ~~86-87~~91-92 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for additional information on CCAR.

Other capital requirements

Total Loss-Absorbing Capacity

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

The following table presents the eligible external TLAC and eligible LTD amounts, as well as a representation of these amounts as a percentage of the Firm’s total RWA and total leverage exposure applying the impact of the CECL capital transition provisions as of March 31, ~~2023~~2024 and December 31, ~~2022.~~2023.


		March 31, 2023						December 31, 2022
	March 31, 2024																			March 31, 2024			December 31, 2023
(in billions, except ratio)	(in billions, except ratio)	External TLAC			LTD			External TLAC			LTD			(in billions, except ratio)	External TLAC		LTD		External TLAC		LTD
Total eligible amount	Total eligible amount	$	488.2		$	222.1		$	486.0		$	228.5
% of RWA	% of RWA	29.6		%	13.5		%	29.4		%	13.8		%	% of RWA	30.4	%	13.2	%	30.7	%	13.3	%
Regulatory requirements	Regulatory requirements	23.0			10.0			22.5			9.5
Surplus/(shortfall)	Surplus/(shortfall)	$	109.4		$	57.4		$	114.0		$	71.4
% of total leverage exposure	% of total leverage exposure	11.3		%	5.1		%	11.1		%	5.2		%	% of total leverage exposure	11.2	%	4.9	%	11.3	%	4.9	%
Regulatory requirements	Regulatory requirements	9.5			4.5			9.5			4.5
Surplus/(shortfall)	Surplus/(shortfall)	$	77.1		$	27.4		$	71.2		$	32.0

Effective January 1, ~~2023,~~2024, the Firm's regulatory ~~requirements~~requirement for ~~TLAC to RWA and~~its eligible LTD to RWA ~~ratios~~ratio increased by 50 bps to ~~23.0% and 10.0%~~10.5%, ~~respectively,~~ due to the increase in the Firm’s GSIB Method 2 requirements. The Firm's regulatory requirement for its TLAC to RWA ratio remained at 23.0%. Refer to Risk-based Capital Regulatory Requirements on pages ~~89-90~~94-95 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for further information on the GSIB surcharge.

Refer to Liquidity Risk Management on pages ~~42-47~~44-51 for further information on long-term debt issued by the Parent Company.

Refer to Part I, Item 1A: Risk Factors on pages ~~9-32~~9-33 of JPMorgan Chase’s ~~2022~~2023 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 95100 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for additional information on TLAC.

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:~~capital.

March 31, 2023

March 31, 2024

(in millions)

Actual

Minimum

Actual

Minimum

Net Capital

24,528

5,675

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 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 March 31, ~~2023,~~2024, J.P. Morgan Securities plc was compliant with its MREL requirements.

~~Effective January 1, 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:


March 31, 2023					Regulatory Minimum ratios(a)
March 31, 2024
(in millions, except ratios)
(in millions, except ratios)
(in millions, except ratios)	(in millions, except ratios)	Estimated			Regulatory Minimum ratios(a)
Total capital	Total capital	$	56,532
Total capital
Total capital
CET1 capital ratio
CET1 capital ratio
CET1 capital ratio	CET1 capital ratio	17.9		%	4.5	%		16.4		%	%	4.5	%	%
Tier 1 capital ratio	Tier 1 capital ratio	23.0			6.0
Total capital ratio	Total capital ratio	29.2			8.0
Total capital ratio
Total capital ratio

Tier 1 leverage ratio	Tier 1 leverage ratio	7.1			3.3		(b)

Tier 1 leverage ratio

Tier 1 leverage ratio									6.6						3.3	(b)

(a)Represents minimum Pillar 1 requirements specified by the PRA. J.P. Morgan Securities plc's capital ratios as of March 31, ~~2023~~2024 exceeded the minimum requirements, including the additional capital requirements specified by the PRA.

(b)At least 75% of the Tier 1 leverage ratio minimum must be met with CET1 capital.

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 March 31, ~~2023,~~2024, JPMSE was compliant with its MREL requirements.

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


March 31, 2023					Regulatory Minimum ratios(a)
March 31, 2024							March 31, 2024				Regulatory Minimum ratios(a)
(in millions, except ratios)	(in millions, except ratios)	Estimated			Regulatory Minimum ratios(a)		(in millions, except ratios)	Estimated
Total capital	Total capital	$	39,572
CET1 capital ratio
CET1 capital ratio
CET1 capital ratio	CET1 capital ratio	18.8		%	4.5	%	19.1	%	4.5	%
Tier 1 capital ratio	Tier 1 capital ratio	18.8			6.0
Total capital ratio	Total capital ratio	32.2			8.0
Tier 1 leverage ratio	Tier 1 leverage ratio	5.2			3.0

(a)Represents minimum Pillar 1 requirements specified by the EU CRR. J.P. Morgan SE’s capital and leverage ratios as of March 31, ~~2023~~2024 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 96101 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for further information.

4143

LIQUIDITY RISK MANAGEMENT

Liquidity risk is the risk that the Firm will be unable to meet its ~~contractual~~cash and ~~contingent financial obligations~~collateral needs 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~~102–109 of JPMorgan Chase’s ~~2022~~2023 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 March 31, ~~2023,~~2024, December 31, ~~2022~~2023 and March 31, ~~2022~~2023 based on the Firm’s interpretation of the LCR framework.


		Three months ended
	Three months ended																	Three months ended
Average amount (in millions)	Average amount (in millions)	March 31, 2023			December 31, 2022			March 31, 2022			Average amount (in millions)	March 31, 2024		December 31, 2023		March 31, 2023
JPMorgan Chase & Co.:	JPMorgan Chase & Co.:
HQLA	HQLA
HQLA
HQLA
Eligible cash(a)
Eligible cash(a)
Eligible cash(a)	Eligible cash(a)	$	453,287		$	542,847		$	680,003
Eligible securities(b)(c)	Eligible securities(b)(c)	278,223			190,201			42,512
Total HQLA(d)(e)		$	731,510		$	733,048		$	722,515
Total HQLA(d)
Net cash outflows	Net cash outflows	$	642,650		$	652,580		$	658,998
LCR	LCR	114		%	112		%	110		%	LCR	112	%	113	%	114	%
Net excess eligible HQLA(d)	Net excess eligible HQLA(d)	$	88,860		$	80,468		$	63,517
JPMorgan Chase Bank N.A.:	JPMorgan Chase Bank N.A.:
LCR	LCR	140		%	151		%	181		%
LCR
LCR												129	%	129	%	140	%
Net excess eligible HQLA	Net excess eligible HQLA	$	278,651		$	356,733		$	560,987

(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. For purposes of calculating the LCR, HQLA securities are included at fair value, which may differ from the accounting treatment under U.S. GAAP.

(c)Predominantly U.S. Treasuries, U.S. GSE and government agency MBS, and sovereign bonds net of regulatory haircuts under the LCR rule.

(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 $758.9 billion, $735.5 billion, and $735.8 billion for March 31, 2023, December 31, 2022 and March 31, 2022, respectively.~~

The Firm’s average LCR increased during the three months ended March 31, 2023, compared with the three months period ended December 31, 2022, primarily due to a return of funds from JPMorgan Chase Bank, N.A. as a result of a dividend payment to the Parent Company.

~~The Firm's average LCR increased during the three months ended March 31, 2023, compared with the prior year period largely driven by an increase in HQLA from long-term debt issuances.~~

JPMorgan Chase Bank, N.A.'s average LCR decreased during the three months ended March 31, 2023, compared with the three months ended December 31, 2022 reflecting a decrease in JPMorgan Chase Bank, N.A.’s HQLA, primarily due to a reduction in cash associated with a decline in average deposits, a dividend payment to the Parent Company, and higher average loans.

JPMorgan Chase Bank, N.A.’s average LCR for the three months ended March 31, ~~2023~~2024 decreased ~~when~~ compared with the ~~same period~~three months ended March 31, 2023, predominantly driven by the impact of First Republic, primarily due to the increase in loans, largely offset by the ~~prior year, reflecting a decrease in JPMorgan Chase~~addition of the Purchase Money Note and Federal Home Loan Bank ~~N.A.’s HQLA as a result of a reduction in cash from a decline in deposits and loan growth, as well as lower market values of HQLA-eligible investment securities.~~ ("FHLB") advances.

Refer to Note 926 for additional information on the ~~Firm's investment securities portfolio.~~First Republic acquisition.

Each of the Firm and JPMorgan Chase Bank, N.A.'s average LCR ~~fluctuates~~may fluctuate from period to period due to changes in their respective eligible HQLA and estimated net cash outflows as a result of ongoing business ~~activity.~~activity and from the impacts of Federal Reserve actions as well as other factors.

Refer to page 98103 of JPMorgan Chase’s ~~2022~~2023 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 testing that 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~~stress tests 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 ~~IHC,~~Intermediate Holding Company (“IHC”), and operating subsidiaries at levels sufficient to comply with liquidity risk tolerances and minimum liquidity requirements, and to manage through periods of stress when access to normal funding sources may be disrupted.

~~Other liquidity~~

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 ~~$700~~$673 billion and ~~$694~~$649 billion as of March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively, although the amount of liquidity that could be raised at any particular time would be dependent on prevailing market conditions.

The increase compared to December 31, 2023, was driven by an increase in CIB trading assets, largely offset by a decrease in excess eligible HQLA securities at JPMorgan Chase Bank, N.A.

42As of March 31, 2024 and December 31, 2023, the Firm had approximately $1.5 trillion and $1.4 trillion of available cash and securities, respectively, comprised of eligible end-of-period HQLA, excluding the impact of regulatory haircuts of approximately $823 billion and $798 billion, respectively, and unencumbered marketable securities with a fair value of approximately $673 billion and $649 billion, respectively.

The Firm also had available borrowing capacity at the ~~Federal Home Loan Banks (“FHLBs”)~~FHLB and the discount window at the Federal Reserve Banks as a result of collateral pledged by the Firm to such banks of approximately ~~$330~~$352 billion and ~~$323~~$340 billion as of March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, 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 Banks discount window and other central banks. Available borrowing capacity increased from December 31, 2023 primarily due to a higher amount of wholesale loans pledged at the Federal Reserve Banks. Although available, the Firm does not view this borrowing capacity at the Federal Reserve Banks discount window and the other central banks as a primary source of liquidity.

NSFR

The net stable funding ratio (“NSFR”) is a liquidity requirement for large banking organizations that is intended to measure the adequacy of “available” stable funding that is sufficient to meet their “required” amounts of stable funding over a one-year horizon.

~~As of~~For the three months ended March 31, ~~2023,~~2024, both the Firm and JPMorgan Chase Bank, N.A. were compliant with the 100% minimum NSFR requirement, based on the Firm's ~~current~~ interpretation of the final rule. ~~The Firm will be required~~Refer to ~~publicly disclose its quarterly average~~the Firm's U.S. NSFR ~~semiannually beginning in~~Disclosure report covering December 31, 2023 and September 30, 2023 on the ~~second half of 2023.~~Firm’s website for additional information.

4345

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 22 for additional information on off-balance sheet obligations.

Deposits

The table below summarizes, by LOB and Corporate, the period-end deposit balances as of March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, and the average deposit balances for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.


		March 31, 2023		December 31, 2022				Three months ended March 31,
Deposits								Average
						March 31, 2024
		March 31, 2024
				March 31, 2024
										Three months ended March 31,
							Three months ended March 31,
						Three months ended March 31,
(in millions)
(in millions)
(in millions)	(in millions)	March 31, 2023		December 31, 2022				2023		2022
Consumer & Community Banking	Consumer & Community Banking							$	1,112,967	$	1,153,513
Consumer & Community Banking
Consumer & Community Banking
Corporate & Investment Bank
Corporate & Investment Bank
Corporate & Investment Bank	Corporate & Investment Bank	705,145		689,893				699,586		756,643
Commercial Banking	Commercial Banking	279,345		271,342				265,943		316,787
Commercial Banking
Commercial Banking
Asset & Wealth Management
Asset & Wealth Management
Asset & Wealth Management	Asset & Wealth Management	225,831		233,130				224,354		287,756
Corporate	Corporate	19,458		14,203				17,629		854
Corporate
Corporate
Total Firm	Total Firm	$	2,377,253	$	2,340,179			$	2,320,479	$	2,515,553
Total Firm
Total Firm

The Firm believes that deposits provide a stable source of funding and reduce the Firm’s reliance on the wholesale funding markets. A significant portion of the Firm’s deposits are consumer deposits and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are generally considered to be stable sources of liquidity because they are generated from customers that maintain operating service relationships with the Firm.

The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances. However, during periods of market disruption, average deposit trends may be impacted.

Average deposits were higherfor the three months ended March 31, 2024 compared to the three months ended March 31, 2023, reflecting the net impact of:

•growth in CIB due to net issuances of structured notes as a result of client demand, and net inflows related to client-driven activities in Payments and Securities Services, partially offset by deposit attrition, including actions taken to reduce certain deposits,

•an increase in Corporate related to the Firm's international consumer initiatives,

•growth in AWM from new and existing customers as a result of new product offeringsand the impact of First Republic, predominantly offset by continued migration into higher-yielding investments driven by the higher interest rate environment,

•a decrease in CCBreflecting a decline in deposits in existing accounts due to migration into higher-yielding investments and increased customer spending, largely offset by the impact of First Republic, and

•a decrease in CB due to continued deposit attrition, offset by the retention of inflows associated with disruptions in the market in the first quarter of 2023 and the impact of First Republic.

Period-end deposits increasedfrom December 31, 2023, reflecting the net impact of:

•higher balances in CIB, driven by net inflows related to client-driven activities in Paymentsand Securities Services,

•an increase in CCB due to new accounts and seasonal inflows,largely offset by a decline in deposits in existing accounts due to migration into higher-yielding investments,

•a decrease in CB primarily due to seasonal outflows and continued deposit attrition, largely offset by the realignment of additional clients associated with First Republic from CCB to CB that began in the fourth quarter of 2023.

Refer to the Firm’s Consolidated Balance Sheets Analysis and the Business Segment Results on pages 13-14 and pages 18-36, respectively, for further information on deposit and liability balance trends, as well as Note 26 for additional information on the First Republic acquisition. 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. Refer to pages ~~100-101~~105–106 of JPMorgan Chase's ~~2022~~2023 Form 10-K for additional ~~disclosure~~information on the Firm's ~~deposit balances.~~total uninsured 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)	March 31, 2024				December 31, 2023
	U.S.		Non-U.S.		U.S.		Non-U.S.
Three months or less	$	89,470	$	77,944	$	82,719	$	77,466
Over three months but within 6 months	12,640		6,341		17,736		5,358
Over six months but within 12 months	15,252		3,187		10,294		4,820
Over 12 months	839		2,021		710		2,543
Total	$	118,201	$	89,493	$	111,459	$	90,187

The table below shows the loan and deposit balances, the loans-to-deposits ratios, and deposits as a percentage of total liabilities, as of March 31, ~~2023~~2024 and December 31, ~~2022.~~2023.


(in billions except ratios)	(in billions except ratios)	March 31, 2023			December 31, 2022			(in billions except ratios)	March 31, 2024		December 31, 2023
Deposits	Deposits	$	2,377.3		$	2,340.2
Deposits as a % of total liabilities	Deposits as a % of total liabilities	69		%	69		%	Deposits as a % of total liabilities	65	%	68	%
Loans	Loans	$	1,128.9		$	1,135.6
Loans-to-deposits ratio	Loans-to-deposits ratio	47		%	49		%	Loans-to-deposits ratio	54	%	55	%

The ~~Firm believes that~~following table provides a summary of the average ~~deposit~~ balances ~~are generally more representative~~and average interest rates of ~~deposit trends than period-end deposit balances. However, during periods of market disruption those trends could be affected.~~

~~Average~~JPMorgan Chase’s deposits ~~were lower~~ for the three months ended March 31, ~~2023 compared to the three months ended March 31, 2022. The decrease was predominantly driven by:~~2024 and 2023.


(Unaudited) (in millions, except interest rates)	Average balances				Average interest rates
	Three months ended				Three months ended
	March 31, 2024		March 31, 2023		March 31, 2024		March 31, 2023
U.S. offices
Noninterest-bearing	$	624,112	$	624,607	NA		NA
Interest-bearing
Demand(a)	278,698		280,562		3.90	%	2.76	%
Savings(b)	810,845		890,815		1.37		0.89
Time	208,813		98,714		5.15		4.46
Total interest-bearing deposits	1,298,356		1,270,091		2.49		1.58
Total deposits in U.S. offices	1,922,468		1,894,698		1.69		1.05
Non-U.S. offices
Noninterest-bearing	24,532		25,836		NA		NA
Interest-bearing
Demand	338,190		320,228		3.26		2.19
Time	89,596		79,717		6.15		4.95
Total interest-bearing deposits	427,786		399,945		3.86		2.76
Total deposits in non-U.S. offices	452,318		425,781		3.66		2.60
Total deposits	$	2,374,786	$	2,320,479	2.09	%	1.34	%

•(a)~~declines in CIB~~Includes Negotiable Order of Withdrawal accounts, and ~~CB due to attrition and in AWM due to migration into higher-yielding investments as a result of the rising interest rate environment, partially offset by net issuances of structured notes in CIB,~~certain trust accounts.

•(b)~~a decline in CCB from existing accounts primarily due to migration to higher-yielding investments and increased customer spending, and~~Includes Money Market Deposit Accounts.

•~~an increase in Corporate related to the Firm's ongoing international consumer initiatives.~~

Period-end deposits increased, reflecting inflows in March 2023, primarily in CCB and CB, as a result of disruptions in the market related to recent bank failures, which changed the outflow trend that started in the second half of 2022. AWM also experienced deposit inflows in March which were more than offset by migration to higher-yielding investments by month end. The increase in period-end deposits also reflected:

•~~net issuances of structured notes in CIB as a result of client demand, and~~

•~~an increase in Corporate related to the Firm's ongoing international consumer initiatives.~~

Refer to the Firm’s Consolidated Balance Sheets Analysis and the Business Segment Results on pages 13-14 and pages 18-34, respectively, for further information on deposit and liability balance trends. Refer to Note 3 15for ~~further~~additional information on ~~structured notes.~~deposits.

4448

The following table summarizes short-term and long-term funding, excluding deposits, as of March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, and average balances for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively. Refer to the Consolidated Balance Sheets Analysis on pages 13-14 and Note 10 for additional information.

March 31, 2023 December 31, 2022 Three months ended March 31,
Sources of funds (excluding deposits) Average
(in millions) 2023 2022
Commercial paper $ 12,092 $ 12,557 $ 12,813 $ 14,577
Other borrowed funds 9,069 8,418 10,073 13,595
Federal funds purchased 1,732 1,684 1,896 1,697
Total short-term unsecured funding $ 22,893 $ 22,659 $ 24,782 $ 29,869
Securities sold under agreements to repurchase(a)
$ 240,663 $ 198,382 $ 246,281 $ 243,615
Securities loaned(a)
4,001 2,547 4,133 4,903
Other borrowed funds 21,080 23,052 22,905 27,936
Obligations of Firm-administered multi-seller conduits(b)
12,175 9,236 10,491 6,470
Total short-term secured funding $ 277,919 $ 233,217 $ 283,810 $ 282,924
Senior notes $ 183,508 $ 188,025 $ 184,972 $ 190,434
Subordinated debt 21,987 21,803 21,829 20,244
Structured notes(c)
74,618 70,839 73,744 71,173
Total long-term unsecured funding $ 280,113 $ 280,667 $ 280,545 $ 281,851
Credit card securitization(b)
$ 999 $ 1,999 $ 1,177 $ 2,275
FHLB advances 11,091 11,093 11,092 11,109
Other long-term secured funding(d)
4,285 4,105 4,156 3,908
Total long-term secured funding $ 16,375 $ 17,197 $ 16,425 $ 17,292
Preferred stock(e)
$ 27,404 $ 27,404 $ 27,404 $ 33,526
Common stockholders’ equity(e)
$ 275,678 $ 264,928 $ 271,197 $ 252,506
Sources of funds (excluding deposits)


	March 31, 2024		December 31, 2023			Average
					Three months ended March 31,
(in millions)					2024				2023
Commercial paper	$	12,435	$	14,737		$	13,574			$	12,813
Other borrowed funds	10,607		8,200			9,924				10,073
Federal funds purchased	1,316		787			1,608				1,896
Total short-term unsecured funding	$	24,358	$	23,724		$	25,106			$	24,782
Securities sold under agreements to repurchase(a)	$	321,623	$	212,804		$	289,217			$	246,281
Securities loaned(a)	2,731		2,944			4,158				4,133
Other borrowed funds	23,226		21,775			22,166				22,905
Obligations of Firm-administered multi-seller conduits(b)	20,366		17,781			20,547				10,491
Total short-term secured funding	$	367,946	$	255,304		$	336,088			$	283,810
Senior notes	$	192,274	$	191,202		$	192,343			$	184,972
Subordinated debt	19,599		19,708			19,648				21,829
Structured notes(c)	90,829		86,056			87,484				73,744
Total long-term unsecured funding	$	302,702	$	296,966		$	299,475			$	280,545
Credit card securitization(b)	$	5,323	$	2,998		$	4,567			$	1,177

FHLB advances	39,214		41,246			40,486		(g)		11,092
Purchase Money Note(d)	49,043		48,989			49,008				N/A
Other long-term secured funding(e)	4,913		4,624			4,795				4,156
Total long-term secured funding	$	98,493	$	97,857		$	98,856			$	16,425
Preferred stock(f)	$	29,900	$	27,404		$	27,952			$	27,404
Common stockholders’ equity(f)	$	306,737	$	300,474		$	300,277			$	271,197

(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)Reflects the Purchase Money Note associated with the First Republic acquisition on May 1, 2023. Refer to Note 26 for additional information.

(e)Includes long-term structured notes which are secured.

~~(e)~~(f)Refer to Capital Risk Management on pages ~~36-41,~~38-43 and Consolidated statements of changes in stockholders’ equity on page 8286 of this Form 10-Q, and Note 21 and Note 22 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for additional information on preferred stock and common stockholders’ equity.

(g)Includes the impact of First Republic. Refer to Note 26 of this Form 10-Q and pages 102–109 of JPMorgan Chase’s 2023 Form 10-K 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 March 31, ~~2023,~~2024, compared with December 31, ~~2022, due to~~2023, driven by Markets, reflecting higher client-driven market-making activities and higher secured financing of trading assets, ~~and the impact of a~~as well as when compared with seasonally lower ~~level of netting on client-driven market-making activities in Markets.~~levels at year-end.

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 decrease in period-end commercial paper at March 31, 2023 from December 31, 2022, and for the average three months ended March 31, 2023 compared to the prior year period, was due to lower net issuance levels resulting from short-term liquidity management.

~~The decrease in average unsecured other borrowed funds~~ for the three months ended March 31, 2024 from December 31, 2023 ~~compared to the prior year period~~ was due to lower issuance levels ~~of overdrafts as well as net maturities of structured notes classified as other borrowed funds in CIB.~~primarily reflecting short-term liquidity management.

4549

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.

Unsecured funding and issuance

The significant majority of the Firm’s total outstanding long-term ~~unsecured funding is~~debt has been issued by the Parent Company to provide flexibility in support of the funding needs of both bank and non-bank subsidiaries. The Parent Company advances substantially all net funding proceeds to its subsidiary, the IHC. The IHC does not issue debt to external counterparties. For the three months ended March 31, 2024, the increase in average structured notes compared to the prior year period was attributable to net issuances of structured notes in Markets due to client demand.

The following table summarizes long-term unsecured issuance and maturities or redemptions for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023. Refer to Liquidity Risk Management on pages ~~97-104~~102–109 and Note 20 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for additional information on the IHC and long-term debt.


Long-term unsecured funding	Long-term unsecured funding
		Three months ended March 31,					Three months ended March 31,
		2023		2022				2023		2022
Long-term unsecured funding
Long-term unsecured funding
		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,
		2024
		2024
		2024
(Notional in millions)
(Notional in millions)
(Notional in millions)	(Notional in millions)	Parent Company				Subsidiaries		Parent Company				Subsidiaries
Issuance	Issuance
Senior notes issued in the U.S. market	Senior notes issued in the U.S. market	$	—	$	8,100			$	—	$	—
Senior notes issued in the U.S. market
Senior notes issued in the U.S. market
Senior notes issued in non-U.S. markets	Senior notes issued in non-U.S. markets	—		2,752				—		—
Senior notes issued in non-U.S. markets
Senior notes issued in non-U.S. markets
Total senior notes
Total senior notes
Total senior notes	Total senior notes	—		10,852				—		—

Structured notes(a)	Structured notes(a)	881		1,156				7,718		8,449

Structured notes(a)

Structured notes(a)
Total long-term unsecured funding – issuance
Total long-term unsecured funding – issuance
Total long-term unsecured funding – issuance	Total long-term unsecured funding – issuance	$	881	$	12,008			$	7,718	$	8,449
Maturities/redemptions	Maturities/redemptions
Maturities/redemptions
Maturities/redemptions
Senior notes	Senior notes	$	7,098	$	3,693			$	65	$	64

Senior notes
Senior notes
Subordinated debt
Subordinated debt
Subordinated debt
Structured notes
Structured notes
Structured notes	Structured notes	447		977				7,502		7,647
Total long-term unsecured funding – maturities/redemptions	Total long-term unsecured funding – maturities/redemptions	$	7,545	$	4,670			$	7,567	$	7,711
Total long-term unsecured funding – maturities/redemptions
Total long-term unsecured funding – maturities/redemptions

(a)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.

Secured funding and issuance

The Firm can also raise secured long-term funding through securitization of consumer credit card loans and FHLB advances. The following table summarizes the securitization issuance, ~~and~~the FHLB advances, and their respective maturities or redemptions, as applicable for the three months ended March 31, 2024 and 2023, ~~and 2022,~~ respectively.


Long-term secured funding	Long-term secured funding
		Three months ended March 31,
		Issuance				Maturities/Redemptions
Long-term secured funding
Long-term secured funding
		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,
		2024
		2024
		2024
(in millions)	(in millions)	2023		2022		2023		2022
(in millions)
(in millions)
Credit card securitization
Credit card securitization
Credit card securitization	Credit card securitization	$	—	$	—	$	1,000	$	650

FHLB advances	FHLB advances	—		—		2		2

FHLB advances

FHLB advances

Other long-term secured funding(a)

Other long-term secured funding(a)

Other long-term secured funding(a)	Other long-term secured funding(a)	151		202		54		61
Total long-term secured funding	Total long-term secured funding	$	151	$	202	$	1,056	$	713
Total long-term secured funding
Total long-term secured funding

(a)Includes long-term structured notes that are secured.

(b)Includes FHLB advances associated with the First Republic acquisition on May 1, 2023. Refer to Note 26 for additional information.

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 ~~2022~~2023 Form 10-K for a further description of client-driven loan securitizations.

4650

Credit ratings

The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm’s access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors, which the Firm believes are incorporated in its liquidity risk

and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.

Additionally, the Firm’s funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to ~~liquidity risk and credit-related contingent features in~~ Note 4 and Note 13 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 March 31, ~~2023,~~2024, 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

March 31, ~~2023~~2024

Long-term issuer

Short-term issuer

Outlook

Long-term issuer

Short-term issuer

Outlook

Long-term issuer

Short-term issuer

Outlook

Moody’s Investors Service

P-1

Stable

Aa2

P-1

~~Stable~~Negative

Aa3

P-1

Stable

Standard & Poor’s (a)

A-

A-2

Stable

A+

A-1

Stable

A+

A-1

Stable

Fitch Ratings

AA-

F1+

Stable

F1+

Stable

F1+

Stable

(a) On ~~March 31, 2023,~~April 1, 2024, Standard & Poor's affirmed the credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries, and revised the outlook from stable to positive ~~to stable.~~for the entities listed above.

Refer to page ~~104~~109 of JPMorgan Chase’s ~~2022~~2023 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.

4751

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 ~~50-65~~54-69 for a further discussion of Credit Risk.

Refer to page 6670 for a further discussion of Investment Portfolio Risk. Refer to Credit and Investment Risk Management on pages ~~106-130~~111–134 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a further discussion of the Firm’s Credit and Investment Risk Management framework.

4852

CREDIT PORTFOLIO

Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer.

In the following tables, total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes 11, 22 and 4 for additional information on the Firm’s loans, lending-related commitments and derivative receivables.

Refer to Note 9 for information regarding the credit risk inherent in the Firm’s investment securities portfolio; and refer to Note 10 for information regarding ~~the~~ credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages ~~50-53~~54-57 and Note 11 for further discussions of the consumer credit environment, consumer loans and ~~consumer loans.~~nonperforming exposure. Refer to Wholesale Credit Portfolio on pages ~~54-62~~58-66 and Note 11 for further discussions of the wholesale credit environment, wholesale loans 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 11 for further information.nonperforming exposure.


Total credit portfolio	Total credit portfolio
		Credit exposure				Nonperforming(c)
		Credit exposure
		Credit exposure
		Credit exposure														Nonperforming(c)
(in millions)	(in millions)	Mar 31, 2023		Dec 31, 2022		Mar 31, 2023		Dec 31, 2022		(in millions)	Mar 31, 2024		Dec 31, 2023				Mar 31, 2024	Dec 31, 2023
Loans retained	Loans retained	$	1,084,850	$	1,089,598	$	6,054	$	5,837
Loans held-for-sale	Loans held-for-sale	5,500		3,970		51		54
Loans at fair value	Loans at fair value	38,546		42,079		790		829
Total loans	Total loans	1,128,896		1,135,647		6,895		6,720
Derivative receivables	Derivative receivables	59,274		70,880		291		296
Receivables from customers(a)	Receivables from customers(a)	43,943		49,257		—		—
Total credit-related assets	Total credit-related assets	1,232,113		1,255,784		7,186		7,016
Assets acquired in loan satisfactions	Assets acquired in loan satisfactions
Real estate owned	Real estate owned	NA		NA		195		203
Real estate owned
Real estate owned
Other	Other	NA		NA		37		28
Total assets acquired in loan satisfactions	Total assets acquired in loan satisfactions	NA		NA		232		231
Lending-related commitments	Lending-related commitments	1,383,325		1,326,782		401		455
Total credit portfolio	Total credit portfolio	$	2,615,438	$	2,582,566	$	7,819	$	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)	$	(30,794)	$	(19,330)	$	—	$	—
Liquid securities and other cash collateral held against derivatives	Liquid securities and other cash collateral held against derivatives	(20,923)		(23,014)		NA		NA		Liquid securities and other cash collateral held against derivatives	(23,012)	(22,461)		(22,461)	NA			NA	NA

(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.

(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage credit exposures.

(c)At March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of ~~$263~~$157 million and ~~$302~~$182 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.

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 March 31,
		2023			2022
(in millions, except ratios)

2024
2024
Net charge-offs
Net charge-offs
Net charge-offs	Net charge-offs	$	1,137		$	582
Average retained loans	Average retained loans	1,082,437			1,004,253
Average retained loans
Average retained loans
Net charge-off rates	Net charge-off rates	0.43		%	0.24		%
Net charge-off rates
Net charge-off rates

4953

CONSUMER CREDIT PORTFOLIO

The Firm’s retained consumer portfolio consists primarily of loans and lending-related commitments for residential real estate, credit card, and scored auto and business ~~banking.~~banking, including those associated with First Republic, primarily in residential real estate. The consumer credit portfolio also includes loans at fair value, predominantly in residential real estate. The Firm’s focus is on serving primarily the prime segment of the consumer credit market. Refer to Note 11 of this Form 10-Q; and Consumer Credit Portfolio on pages ~~110-115~~114–119 and Note 12 of JPMorgan Chase's ~~2022~~2023 Form 10-K for further information on consumer loans, as well as the Firm’s nonaccrual and charge-off accounting policies. Refer to Note 22 of this Form 10-Q and Note 28 of JPMorgan Chase's ~~2022~~2023 Form 10-K for further information on lending-related commitments.

The following tables present consumer credit-related information with respect to the scored credit portfolios held in CCB, AWM, CIB and Corporate.


Consumer credit portfolio	Consumer credit portfolio
(in millions)	(in millions)	Credit exposure				Nonaccrual loans(i)(j)(k)
		Mar 31, 2023		Dec 31, 2022		Mar 31, 2023		Dec 31, 2022
(in millions)											(in millions)		Credit exposure					Nonaccrual loans(i)
													Mar 31, 2024			Dec 31, 2023				Mar 31, 2024			Dec 31, 2023
Consumer, excluding credit card	Consumer, excluding credit card
Residential real estate(a)
Residential real estate(a)
Residential real estate(a)	Residential real estate(a)	$	236,115	$	237,561	$	3,710	$	3,745
Auto and other(b)(c)	Auto and other(b)(c)	64,332		63,192		133		129
Total loans – retained	Total loans – retained	300,447		300,753		3,843		3,874
Loans held-for-sale	Loans held-for-sale	572		618		25		28
Loans at fair value(d)	Loans at fair value(d)	10,414		10,004		427		423
Total consumer, excluding credit card loans	Total consumer, excluding credit card loans	311,433		311,375		4,295		4,325
Lending-related commitments(e)	Lending-related commitments(e)	37,568		33,518
Total consumer exposure, excluding credit card	Total consumer exposure, excluding credit card	349,001		344,893
Total consumer exposure, excluding credit card
Total consumer exposure, excluding credit card
Credit card	Credit card
Credit card
Credit card
Loans retained(f)
Loans retained(f)
Loans retained(f)	Loans retained(f)	180,079		185,175		NA		NA		206,740		211,123		211,123			NA		NA			NA

Total credit card loans	Total credit card loans	180,079		185,175		NA		NA
Total credit card loans
Total credit card loans											206,740				211,123			NA			NA
Lending-related commitments(e)(g)	Lending-related commitments(e)(g)	861,218		821,284
Total credit card exposure	Total credit card exposure	1,041,297		1,006,459
Total credit card exposure
Total credit card exposure
Total consumer credit portfolio
Total consumer credit portfolio
Total consumer credit portfolio	Total consumer credit portfolio	$	1,390,298	$	1,351,352	$	4,295	$	4,325
Credit-related notes used in credit portfolio management activities(h)	Credit-related notes used in credit portfolio management activities(h)	$	(1,082)	$	(1,187)


		Three months ended March 31,
	Three months ended March 31,																																		Three months ended March 31,
(in millions, except ratios)	(in millions, except ratios)	Net charge-offs/(recoveries)				Average loans - retained				Net charge-off/(recovery) rate(l)				(in millions, except ratios)		Net charge-offs/(recoveries)									Average loans - retained								Net charge-off/(recovery) rate(j)
		2023		2022		2023		2022		2023		2022				2024			2023						2024			2023					2024			2023
Consumer, excluding credit card	Consumer, excluding credit card
Residential real estate
Residential real estate
Residential real estate	Residential real estate	$	(20)	$	(67)	$	236,781	$	225,932	(0.03)	%	(0.12)	%	$	(6)		$	(20)			$		$	323,687		$	236,781			(0.01)		(0.01)		%	(0.03)		%
Auto and other	Auto and other	152		113		63,804		69,528		0.97		0.66
Total consumer, excluding credit card - retained	Total consumer, excluding credit card - retained	132		46		300,585		295,460		0.18		0.06
Credit card - retained	Credit card - retained	922		506		180,451		149,398		2.07		1.37
Total consumer - retained	Total consumer - retained	$	1,054	$	552	$	481,036	$	444,858	0.89	%	0.50	%	Total consumer - retained		$	1,870		$	1,054		$			$	598,670		$	481,036		1.26			1.26		%	0.89	%

(a)Includes scored mortgage and home equity loans held in CCB and ~~AWM, and scored mortgage loans held in Corporate.~~AWM.

(b)At March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, excluded operating lease assets of ~~$11.3~~$10.5 billion and ~~$12.0~~$10.4 billion, respectively. These operating lease assets are included in other assets on the Firm’s Consolidated balance sheets. Refer to Note 16 for further information.

(c)Includes scored auto and business banking loans, and overdrafts.

(d)Includes scored mortgage loans held in CCB and CIB, and other consumer unsecured loans in CIB.

(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 22 for further information.

(f)Includes billed interest and fees.

(g)Also includes commercial card lending-related commitments primarily in CB and CIB.

(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)At March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of ~~$263~~$157 million and ~~$302~~$182 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.

(j)~~Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic.~~

~~(k)At March 31, 2023 and December 31, 2022, nonaccrual loans excluded $54 million and $101 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA.~~

~~(l)~~Average consumer loans held-for-sale and loans at fair value were ~~$11.0~~$15.1 billion and ~~$23.9~~$11.0 billion for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively. These amounts were excluded when calculating net charge-off/(recovery) rates.

Consumer, excluding credit card

Portfolio analysis

Loans ~~were relatively flat compared to~~decreased from December 31, ~~2022~~2023 driven by ~~higher auto loans and loans at fair value, predominantly offset by lower~~ retained residential real estate 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 decreased compared to December 31, ~~2022, reflecting~~2023, predominantly driven by paydowns and loans sales, net of originations. Net recoveries were lower for the three months ended March 31, ~~2023~~2024 compared to the ~~same period in the~~ prior ~~year driven by lower prepayments due to higher interest rates.~~year.

Loans ~~at fair value~~held-for-sale increased from December 31, ~~2022,~~2023, predominantly driven by a transfer of certain retained loans in anticipation of securitization.

At March 31, 2024 and December 31, 2023, the carrying value of interest-only residential mortgage loans was $90.3 billion and $90.6 billion, respectively. These loans have an ~~increase in Home Lending~~interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as ~~originations outpaced warehouse loan sales, largely offset by lower CIB~~higher-balance loans ~~as sales outpaced purchases.~~to higher-income borrowers. The credit performance of this portfolio is comparable with the performance of the broader prime mortgage portfolio.

The carrying value of home equity lines of credit outstanding was ~~$14.9~~$15.3 billion at March 31, ~~2023. This amount~~2024, which included ~~$4.8~~$2.4 billion associated with First Republic. The carrying value of home equity lines of credit outstanding included $4.1 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified and ~~$4.8~~$4.1 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 March 31, 2023 and December 31, 2022, the carrying value of interest-only residential mortgage loans was $36.4 billion and $36.3 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 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)	March 31, 2023		December 31, 2022		(in millions)	March 31, 2024	December 31, 2023
Current	Current	$	549	$	659
30-89 days past due	30-89 days past due	117		136
90 or more days past due	90 or more days past due	263		302
Total government guaranteed loans	Total government guaranteed loans	$	929	$	1,097

Geographic composition and current estimated loan-to-value ratio of residential real estate loans

Refer to Note 11 for information on the geographic composition and current estimated LTVs of the Firm’s residential real estate loans.

Modified residential real estate loans

For the three months ended March 31, 2024 and 2023, residential real estate ~~FDMs~~financial difficulty modifications ("FDMs") were $39 million and $38 ~~million. In addition to FDMs, the Firm also had $23~~ million, ~~of loans~~respectively. Loans subject to trial modification where the terms of the loans have not been permanently modified, ~~as well as $2 million of~~and loans subject to discharge under Chapter 7 bankruptcy proceedings ("Chapter 7 loans")~~. 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. Refer to Note 1 and Note 11~~material for ~~further information.~~

~~For~~ the three months ended March 31, ~~2022, residential real estate TDRs were $118 million.~~2024 and 2023. Refer to Note 1 of JPMorgan Chase’s 2023 Form 10-K and Note 11 of this Form 10-Q for further ~~information on TDRs in prior periods.~~information.

5155

Auto and other: The auto and other loan portfolio, including loans at fair value, generally consists of prime-quality scored auto and business banking loans, ~~as well as~~other consumer unsecured loans, and overdrafts. The portfolio ~~increased~~decreased when compared to December 31, ~~2022~~2023, predominantly due to ~~originations of scored Auto loans, predominantly offset by paydowns.~~a loan securitization. Net charge-offs increased for the three months ended March 31, ~~2023 increased~~2024 compared to the same period in the prior year due to higher scored ~~Auto~~auto net charge-offs ~~as delinquency levels increased and~~of $50 million reflecting a decline in used vehicle valuations, ~~declined. The scored Auto net charge-off rates were 0.47% and 0.18%~~largely offset by lower overdraft charge-offs.Refer to Note 13 for ~~the three months ended March 31, 2023 and 2022, respectively.~~further information on securitization activity.

Nonperforming assets

The following table presents information as of March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, about consumer, excluding credit card, nonperforming assets.

Nonperforming assets(a)

(in millions)

March 31,
2023

December 31,
2022

(in millions)

March 31,
2024

December 31,
2023

Nonaccrual loans

Residential real estate(b)

4,162

4,196

Auto and other(c)

133

129

Residential real estate

Auto and other

Total nonaccrual loans

4,295

4,325

Assets acquired in loan satisfactions

Real estate owned

123

129

Other

Total assets acquired in loan satisfactions

160

157

Total nonperforming assets

4,455

4,482

(a)At March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of ~~$263~~$157 million and ~~$302~~$182 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 March 31, 2023 and December 31, 2022, nonaccrual loans excluded $54 million and $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 three months ended March 31, ~~2023~~2024 and ~~2022.~~2023.


Nonaccrual loan activity	Nonaccrual loan activity					Nonaccrual loan activity
Three months ended March 31, (in millions)	Three months ended March 31, (in millions)	2023		2022		Three months ended March 31, (in millions)	2024	2023
Beginning balance	Beginning balance	$	4,325	$	5,350
Additions	Additions	601		638
Reductions:	Reductions:
Principal payments and other(a)	Principal payments and other(a)	205		363
Principal payments and other(a)
Principal payments and other(a)
Charge-offs	Charge-offs	101		66
Returned to performing status	Returned to performing status	273		495
Foreclosures and other liquidations	Foreclosures and other liquidations	52		54
Total reductions	Total reductions	631		978
Net changes	Net changes	(30)		(340)
Ending balance	Ending balance	$	4,295	$	5,010

(a)Other reductions include loan sales.

Refer to Note 11 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.

5256

Credit card

Total credit card loans decreased from December 31, ~~2022~~2023 reflecting the impact of seasonality. The March 31, 2024 30+ and 90+ day delinquency rates of 2.23% and 1.16%, respectively, increased compared to the December 31, 2023 30+ and 90+ day delinquency rates of ~~1.68%~~2.14% and ~~0.83%~~1.05%, respectively, ~~increased compared~~due to ~~the December 31, 2022 30+~~credit normalization and ~~90+ day delinquency rates of 1.45% and 0.68%~~ as ~~delinquencies continued to normalize but remained below pre-pandemic levels.~~newer vintages season. Net charge-offs increased for the three months ended March 31, ~~2023~~2024 compared to the same period in the prior year ~~reflecting continued normalization in~~due to higher delinquencies.

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 11 for further information about this portfolio, including information about delinquencies.

Geographic and FICO composition of credit card loans

Refer to Note 11 for information on the geographic and FICO composition of the Firm’s credit card loans.

Modifications of credit card loans

For the three months ended March 31, 2024 and 2023, credit card FDMs were $259 million and $163 ~~million. In addition~~million, respectively. FDMs increased for the three months ended March 31, 2024 compared to ~~FDMs,~~ the ~~Firm also had $24 million of loans~~same period in the prior year due to higher delinquencies, reflecting growth in the portfolio. Loans subject to trial modification where the terms of the loans have not been permanently ~~modified. The changes to the TDR accounting guidance eliminated the TDR reasonably expected and concession assessment criteria. Accordingly, trial modifications~~modified were ~~considered TDRs, but~~ not ~~FDMs.~~

~~For~~material for the three months ended March 31, ~~2022, credit card TDRs were $82 million.~~2024 and 2023.

Refer to Note 1 of JPMorgan Chase’s 2023 Form 10-K and Note 11 of this Form 10-Q for further information.

5357

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 ~~56-59~~60-63 for further information.

The Firm’s wholesale credit portfolio includes exposure held in CIB, CB, AWM and Corporate, ~~as well as~~and risk-rated ~~BWM and auto dealer~~ exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses. The Firm continues to convert certain operations, and to integrate clients, products and services, associated with First Republic. 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.

As of March 31, 2024, retained loans decreased by $4.7 billion and lending-related commitments decreased by $4.3 billion.

As of March 31, 2024, nonperforming exposure increased by $702 million predominantly driven by Real Estate loans concentrated in Office, and Individuals, resulting from downgrades. For the three months ended March 31, ~~2023, credit continued to perform well with~~2024, wholesale net charge-offs ~~remaining low.~~were $86 million, largely in Real Estate, concentrated in Office.

As of March 31, 2023, the increase in nonperforming exposure was driven by loans, resulting from client-specific downgrades in CIB and CB, partially offset by a reduction in lending-related commitments.

As of March 31, 2023, retained loans increased $654 million driven by CB, largely offset by a decline in AWM. Lending-related commitments increased $12.6 billion driven by net portfolio activity in CB and CIB, including an increase in held-for-sale positions in the bridge financing portfolio in CB.


Wholesale credit portfolio	Wholesale credit portfolio									Wholesale credit portfolio
		Credit exposure				Nonperforming
	Credit exposure														Credit exposure					Nonperforming
(in millions)	(in millions)	Mar 31, 2023		Dec 31, 2022		Mar 31, 2023		Dec 31, 2022		(in millions)	Mar 31, 2024		Dec 31, 2023				Mar 31, 2024	Dec 31, 2023
Loans retained	Loans retained	$	604,324	$	603,670	$	2,211	$	1,963
Loans held-for-sale	Loans held-for-sale	4,928		3,352		26		26
Loans at fair value	Loans at fair value	28,132		32,075		363		406
Loans	Loans	637,384		639,097		2,600		2,395
Derivative receivables	Derivative receivables	59,274		70,880		291		296
Receivables from customers(a)	Receivables from customers(a)	43,943		49,257		—		—
Total wholesale credit-related assets	Total wholesale credit-related assets	740,601		759,234		2,891		2,691
Assets acquired in loan satisfactions	Assets acquired in loan satisfactions
Real estate owned	Real estate owned	NA		NA		72		74
Real estate owned
Real estate owned
Other	Other	NA		NA		—		—
Total assets acquired in loan satisfactions	Total assets acquired in loan satisfactions	NA		NA		72		74
Lending-related commitments	Lending-related commitments	484,539		471,980		401		455
Total wholesale credit portfolio	Total wholesale credit portfolio	$	1,225,140	$	1,231,214	$	3,364	$	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)	$	(29,712)	$	(18,143)	$	—	$	—
Liquid securities and other cash collateral held against derivatives	Liquid securities and other cash collateral held against derivatives	(20,923)		(23,014)		NA		NA		Liquid securities and other cash collateral held against derivatives	(23,012)	(22,461)		(22,461)		NA		NA	NA

(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. Refer to Credit derivatives on page 6266 and Note 4 for additional information.

5458

Wholesale credit exposure – maturity and ratings profile

The following tables present the maturity and internal risk ratings profiles of the wholesale credit portfolio as of March 31, ~~2023,~~2024 and December 31, ~~2022.~~2023. 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 ~~2022~~2023 Form 10-K for further information on internal risk ratings.


		Maturity profile(d)								Ratings profile
		1 year or less		1 year through 5 years		After 5 years		Total		Investment-grade		Noninvestment-grade		Total		Total % of IG
March 31, 2023 (in millions, except ratios)
		Maturity profile(d)
		Maturity profile(d)
		Maturity profile(d)																														Ratings profile
	1 year or less																						1 year or less			After 1 year through 5 years			After 5 years		Total				Investment-grade					Noninvestment-grade			Total	Total % of IG
March 31, 2024, (in millions, except ratios)																				March 31, 2024, (in millions, except ratios)
Loans retained	Loans retained	$	207,707	$	250,242	$	146,375	$	604,324	$	424,855	$	179,469	$	604,324	70	%	Loans retained	$	211,780	$	274,260		$	181,721		$	667,761		$		$	453,592	$		$	214,169	$	667,761		68	68	%
Derivative receivables	Derivative receivables							59,274						59,274
Less: Liquid securities and other cash collateral held against derivatives	Less: Liquid securities and other cash collateral held against derivatives							(20,923)						(20,923)
Less: Liquid securities and other cash collateral held against derivatives
Less: Liquid securities and other cash collateral held against derivatives
Total derivative receivables, net of collateral
Total derivative receivables, net of collateral
Total derivative receivables, net of collateral	Total derivative receivables, net of collateral	10,120		11,450		16,781		38,351		29,340		9,011		38,351		77
Lending-related commitments	Lending-related commitments	114,538		347,309		22,692		484,539		336,215		148,324		484,539		69
Subtotal	Subtotal	332,365		609,001		185,848		1,127,214		790,410		336,804		1,127,214		70
Loans held-for-sale and loans at fair value(a)	Loans held-for-sale and loans at fair value(a)							33,060						33,060
Receivables from customers	Receivables from customers							43,943						43,943
Receivables from customers
Receivables from customers
Total exposure – net of liquid securities and other cash collateral held against derivatives
Total exposure – net of liquid securities and other cash collateral held against derivatives
Total exposure – net of liquid securities and other cash collateral held against derivatives	Total exposure – net of liquid securities and other cash collateral held against derivatives							$	1,204,217					$	1,204,217
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)	$	(6,686)	$	(18,424)	$	(4,602)	$	(29,712)	$	(25,754)	$	(3,958)	$	(29,712)	87	%
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)																			$	(5,448)	$	(27,991)		$	(6,949)		$	(40,388)				$	(32,157)			$	(8,231)	$	(40,388)		80		%


		Maturity profile(d)								Ratings profile
		1 year or less		1 year through 5 years		After 5 years		Total		Investment-grade		Noninvestment-grade		Total		Total % of IG
December 31, 2022 (in millions, except ratios)
		Maturity profile(d)
		Maturity profile(d)
		Maturity profile(d)																																	Ratings profile
	1 year or less																								1 year or less			After 1 year through 5 years			After 5 years	Total						Investment-grade								Noninvestment-grade	Total					Total % of IG
December 31, 2023 (in millions, except ratios)
Loans retained
Loans retained
Loans retained	Loans retained	$	204,761	$	253,896	$	145,013	$	603,670	$	425,412	$	178,258	$	603,670	70	%	$	211,104		$	280,821		$	180,547		$	672,472			$		$	458,838			$		$	213,634		$	672,472			68		68		%
Derivative receivables	Derivative receivables							70,880						70,880
Less: Liquid securities and other cash collateral held against derivatives	Less: Liquid securities and other cash collateral held against derivatives							(23,014)						(23,014)
Less: Liquid securities and other cash collateral held against derivatives
Less: Liquid securities and other cash collateral held against derivatives
Total derivative receivables, net of collateral
Total derivative receivables, net of collateral
Total derivative receivables, net of collateral	Total derivative receivables, net of collateral	13,508		14,880		19,478		47,866		36,231		11,635		47,866		76
Lending-related commitments	Lending-related commitments	101,083		347,456		23,441		471,980		327,168		144,812		471,980		69
Subtotal	Subtotal	319,352		616,232		187,932		1,123,516		788,811		334,705		1,123,516		70
Loans held-for-sale and loans at fair value(a)	Loans held-for-sale and loans at fair value(a)							35,427						35,427
Receivables from customers	Receivables from customers							49,257						49,257
Receivables from customers
Receivables from customers
Total exposure – net of liquid securities and other cash collateral held against derivatives
Total exposure – net of liquid securities and other cash collateral held against derivatives
Total exposure – net of liquid securities and other cash collateral held against derivatives	Total exposure – net of liquid securities and other cash collateral held against derivatives							$	1,208,200					$	1,208,200
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)	$	(2,817)	$	(13,530)	$	(1,796)	$	(18,143)	$	(15,115)	$	(3,028)	$	(18,143)	83	%
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)																				$	(3,311)		$	(28,353)		$	(5,325)		$	(36,989)					$	(28,869)					$	(8,120)		$	(36,989)				78		%

(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)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 March 31, ~~2023,~~2024, may become payable prior to maturity based on their cash flow profile or changes in market conditions.

5559

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 that are deemed to be 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 ~~$34.4~~$45.8 billion and ~~$31.3~~$41.4 billion atas of March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, representing approximately ~~3.0%~~3.6% and ~~2.7%~~3.3% of total wholesale credit exposure, ~~respectively. C~~respectively;~~riticized~~ of the $45.8 billion, $42.2 billion was performing. The increase in criticized exposure ~~increased,~~was driven by ~~client-specific downgrades largely in~~ Real Estate concentrated in Office, reflecting downgrades, and held-for-sale commitments in Technology and Consumer ~~and Retail, Industrials, and Healthcare, partially offset by client-specific upgrades. Of~~ ~~the $34.4 billion of criticized exposure at March 31, 2023, approximately half was undrawn and $31.5 billion was performing.~~& Retail.

The table below summarizes by industry the Firm’s exposures as of March 31, ~~2023~~2024 and December 31, ~~2022.~~2023. 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 ~~2022~~2023 Form 10-K for additional information on industry concentrations.


Wholesale credit exposure – industries(a)	Wholesale credit exposure – industries(a)
												Selected metrics
												30 days or more past due and accruing loans			Net charge-offs/ (recoveries)			Credit derivative hedges and credit-related notes(h)			Liquid securities and other cash collateral held against derivative receivables
						Noninvestment-grade
																								Selected metrics
																								Selected metrics
																								Selected metrics
											30 days or more past due and accruing loans																												30 days or more past due and accruing loans	Net charge-offs/ (recoveries)	Credit derivative and credit-related notes(h)	Liquid securities and other cash collateral held against derivative receivables
					Noninvestment-grade																																	Noninvestment-grade
As of or for the three months ended	As of or for the three months ended	Credit exposure(f)(g)		Investment- grade		Noncriticized		Criticized performing		Criticized nonperforming			30 days or more past due and accruing loans			Net charge-offs/ (recoveries)			Credit derivative hedges and credit-related notes(h)			Liquid securities and other cash collateral held against derivative receivables			As of or for the three months ended	Credit exposure(f)(g)		Investment- grade		Noncriticized		Criticized performing		Criticized nonperforming
March 31, 2023
March 31, 2024																									March 31, 2024
(in millions)	(in millions)	Credit exposure(f)(g)		Investment- grade		Noncriticized		Criticized performing		Criticized nonperforming		(in millions)													Net charge-offs/ (recoveries)		Credit derivative and credit-related notes(h)		Liquid securities and other cash collateral held against derivative receivables		Credit exposure(f)(g)		Investment- grade		Noncriticized	Criticized performing	Criticized nonperforming
Real Estate
Individuals and Individual Entities(b)	Individuals and Individual Entities(b)											1,296			—			—			—
Asset Managers
Consumer & Retail	Consumer & Retail	123,237		62,484		52,596		7,496		661		353			25			(2,886)			—
Asset Managers		94,870		78,263		16,538		64		5		174			—			—			(7,354)
Technology, Media & Telecommunications	Technology, Media & Telecommunications	79,342		44,217		27,467		7,394		264		164			45			(2,820)			—
Industrials	Industrials	71,764		39,666		28,694		3,146		258		204			3			(1,946)			—
Healthcare	Healthcare	66,249		44,004		19,940		2,145		160		119			7			(2,392)			—
Banks & Finance Cos		53,942		29,958		22,938		1,025		21		1			—			(343)			(1,201)
Banks & Finance Companies
State & Municipal Govt(c)
Utilities	Utilities	35,238		25,013		9,322		767		136		68			(2)			(1,595)			—
Automotive
Oil & Gas	Oil & Gas	33,994		19,160		14,289		485		60		16			—			(1,204)			—
State & Municipal Govt(c)		33,256		32,426		706		123		1		62			—			(10)			(3)
Automotive		33,079		23,843		8,709		403		124		68			—			(694)			—
Insurance
Chemicals & Plastics	Chemicals & Plastics	21,302		12,276		8,141		882		3		14			—			(694)			—
Insurance		20,894		14,720		5,833		341		—		48			—			(457)			(6,615)
Transportation
Central Govt
Metals & Mining	Metals & Mining	16,213		8,964		6,738		476		35		14			(6)			(199)			(1)
Central Govt		15,543		15,199		220		124		—		—			—			(4,239)			(137)
Transportation		14,118		6,654		5,497		1,887		80		24			(4)			(429)			—
Securities Firms	Securities Firms	7,977		3,997		3,980		—		—		—			—			(15)			(2,609)
Financial Markets Infrastructure	Financial Markets Infrastructure	4,223		4,111		112		—		—		—			—			—			—
All other(d)	All other(d)	124,765		106,186		18,137		199		243		9			(3)			(9,063)			(3,003)
Subtotal	Subtotal	$	1,148,137	$	810,698	$	303,073	$	31,463	$	2,903	$		3,098		$	83		$	(29,712)		$	(20,923)
Loans held-for-sale and loans at fair value	Loans held-for-sale and loans at fair value	33,060
Receivables from customers	Receivables from customers	43,943
Receivables from customers
Receivables from customers
Total(e)	Total(e)	$	1,225,140
Total(e)
Total(e)

5660


(continued from previous page)	(continued from previous page)
																Selected metrics
																30 days or more past due and accruing(i) loans		Net charge-offs/ (recoveries)			Credit derivative hedges and credit-related notes(h)				Liquid securities and other cash collateral held against derivative receivables
						Noninvestment-grade
																											Selected metrics
																											Selected metrics
																											Selected metrics
														30 days or more past due and accruing loans																						30 days or more past due and accruing loans	Net charge-offs/ (recoveries)	Credit derivative and credit-related notes(h)	Liquid securities and other cash collateral held against derivative receivables
					Noninvestment-grade																														Noninvestment-grade
As of or for the year ended	As of or for the year ended	Credit exposure(f)(g)		Investment- grade		Noncriticized				Criticized performing			Criticized nonperforming				30 days or more past due and accruing(i) loans		Net charge-offs/ (recoveries)			Credit derivative hedges and credit-related notes(h)				Liquid securities and other cash collateral held against derivative receivables		As of or for the year ended		Credit exposure(f)(g)	Investment- grade	Noncriticized	Criticized performing	Criticized nonperforming
December 31, 2022
December 31, 2023
(in millions)
(in millions)
(in millions)	(in millions)	Credit exposure(f)(g)				Investment- grade			Noncriticized				Criticized performing			Criticized nonperforming				30 days or more past due and accruing(i) loans			Net charge-offs/ (recoveries)	Credit derivative hedges and credit-related notes(h)					Liquid securities and other cash collateral held against derivative receivables
Real Estate	Real Estate
Real Estate
Real Estate
Individuals and Individual Entities(b)	Individuals and Individual Entities(b)	130,815		112,006				18,104				360			345
Asset Managers
Consumer & Retail	Consumer & Retail	120,555		60,781		51,871				7,295			608			321		49			(1,157)				—
Asset Managers		95,656		78,925		16,665				61			5			15		(1)			—				(8,278)
Technology, Media & Telecommunications	Technology, Media & Telecommunications	72,286		39,199		25,689				7,096			302			62		39			(1,766)				—
Industrials	Industrials	72,483		39,052		30,500				2,809			122			282		44			(1,258)				—
Healthcare	Healthcare	62,613		43,839		17,117				1,479			178			43		27			(1,055)				—
Banks & Finance Cos		51,816		27,811		22,994				961			50			36		—			(262)				(994)
Banks & Finance Companies
State & Municipal Govt(c)
Utilities	Utilities	36,218		25,981		9,294				807			136			21		15			(607)				(1)
Automotive
Oil & Gas	Oil & Gas	38,668		20,547		17,616				474			31			57		(6)			(414)				—
State & Municipal Govt(c)		33,847		33,191		529				126			1			36		—			(9)				(5)
Automotive		33,287		23,908		8,839				416			124			198		(2)			(513)				—
Insurance
Chemicals & Plastics	Chemicals & Plastics	20,030		12,134		7,103				744			49			10		3			(298)				—
Insurance		21,045		15,468		5,396				181			—			1		—			(273)				(7,296)
Transportation
Central Govt
Metals & Mining	Metals & Mining	15,915		8,825		6,863				222			5			7		(1)			(27)				(4)
Central Govt		19,095		18,698		362				35			—			—		10			(4,591)				(677)
Transportation		15,009		6,497		6,862				1,574			76			24		2			(339)				—
Securities Firms	Securities Firms	8,066		4,235		3,716				115			—			—		(13)			(26)				(2,811)
Financial Markets Infrastructure	Financial Markets Infrastructure	4,962		4,525		437				—			—			—		—			—				—
All other(d)	All other(d)	123,307		105,284		17,555				223			245			4		(5)			(5,435)				(2,948)
Subtotal	Subtotal	$	1,146,530	$	810,772	$	304,457			$	28,587		$	2,714		$	2,698	$	181		$	(18,143)			$	(23,014)
Loans held-for-sale and loans at fair value	Loans held-for-sale and loans at fair value	35,427
Receivables from customers	Receivables from customers	49,257
Receivables from customers
Receivables from customers
Total(e)	Total(e)	$	1,231,214
Total(e)
Total(e)

(a)The industry rankings presented in the table as of December 31, ~~2022,~~2023, are based on the industry rankings of the corresponding exposures atas of March 31, ~~2023,~~2024, not actual rankings of such exposures atas of December 31, ~~2022.~~2023.

(b)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 ~~trust.~~trusts.

(c)In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at March 31, 2024 and December 31, 2023 noted above, the Firm ~~held $6.1~~held: $5.8 billion and ~~$6.6~~$5.9 billion, respectively, of trading ~~assets at March 31, 2023, and December 31, 2022, respectively; $13.5~~assets; $18.8 billion and ~~$6.8~~$21.4 billion, respectively, of AFS securities; and ~~$12.3~~$9.6 billion and ~~$19.7~~$9.9 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 9 for further information.

(d)All other includes: SPEs and Private education and civic organizations, representing approximately ~~95%~~94% and 5%6%, respectively, at both March 31, ~~2023~~2024 and December 31, ~~2022.~~2023. Refer to Note 13 for more information on exposures to SPEs.

(e)Excludes cash ~~and other deposits~~ placed with banks of ~~$541.5~~$554.1 billion and ~~$556.6~~$614.1 billion, at March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, 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)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.

5761

Presented below is additional detail on certain of the Firm’s industry exposures.

Real Estate

Real Estate exposure was ~~$170.8~~$205.8 billion as of March 31, ~~2023.~~2024. Criticized exposure increased by ~~$736 million~~$1.9 billion from ~~$4.0~~$9.2 billion at December 31, ~~2022~~2023 to ~~$4.8~~$11.1 billion at March 31, ~~2023,~~2024, driven by ~~client-specific~~ downgrades concentrated in Office, partially offset by client-specific upgrades.


		March 31, 2023
	March 31, 2024
(in millions, except ratios)
(in millions, except ratios)
(in millions, except ratios)	(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment-grade		% Drawn(d)		Loans and Lending-related Commitments	Derivative Receivables	Credit exposure	% Investment-grade	% Drawn(d)
Multifamily(a)	Multifamily(a)	$	98,713	$	25	$	98,738	81	%	88	%
Industrial	Industrial	15,964		6		15,970		73		73
Industrial
Industrial
Office
Office
Office	Office	15,106		19		15,125		74		75
Services and Non Income Producing	Services and Non Income Producing	14,334		66		14,400		67		52
Services and Non Income Producing
Services and Non Income Producing
Other Income Producing Properties(b)
Other Income Producing Properties(b)
Other Income Producing Properties(b)	Other Income Producing Properties(b)	12,484		192		12,676		71		63
Retail	Retail	10,498		16		10,514		75		68
Retail
Retail
Lodging
Lodging
Lodging	Lodging	3,330		26		3,356		7		40
Total Real Estate Exposure(c)	Total Real Estate Exposure(c)	$	170,429	$	350	$	170,779	76	%	78	%
Total Real Estate Exposure(c)
Total Real Estate Exposure(c)

		December 31, 2023
		December 31, 2022
		December 31, 2023

		December 31, 2023
(in millions, except ratios)
(in millions, except ratios)
(in millions, except ratios)	(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment- grade		% Drawn(d)		Loans and Lending-related Commitments	Derivative Receivables	Credit exposure	% Investment- grade	% Drawn(d)
Multifamily(a)	Multifamily(a)	$	99,555	$	17	$	99,572	82	%	87	%
Industrial	Industrial	15,928		1		15,929		72		71
Industrial
Industrial
Office
Office
Office	Office	14,917		25		14,942		74		73
Services and Non Income Producing	Services and Non Income Producing	13,968		10		13,978		65		48
Services and Non Income Producing
Services and Non Income Producing
Other Income Producing Properties(b)
Other Income Producing Properties(b)
Other Income Producing Properties(b)	Other Income Producing Properties(b)	12,701		150		12,851		70		62
Retail	Retail	10,192		8		10,200		75		68
Retail
Retail
Lodging
Lodging
Lodging	Lodging	3,347		38		3,385		6		37
Total Real Estate Exposure	Total Real Estate Exposure	$	170,608	$	249	$	170,857	76	%	77	%
Total Real Estate Exposure
Total Real Estate Exposure

(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 ~~78%~~83% secured; unsecured exposure is ~~approximately 78% investment-grade.~~predominantly investment-grade largely to Real Estate Investment Trusts (“REITs”) and Real Estate Operating Companies (“REOCs”) whose underlying assets are generally diversified.

(d)Represents drawn exposure as a percentage of credit exposure.

Consumer & Retail

Consumer & Retail exposure was ~~$123.2~~$125.5 billion as of March 31, ~~2023.~~2024. Criticized exposure increased by ~~$254~~$612 million from ~~$7.9~~$8.3 billion at December 31, ~~2022~~2023 to ~~$8.2~~$8.9 billion at March 31, ~~2023~~2024, driven by client-specific downgrades and net portfolio activity, largely offset by client-specific ~~upgrades and net portfolio activity.~~upgrades.


		March 31, 2023
	March 31, 2024
(in millions, except ratios)
(in millions, except ratios)
(in millions, except ratios)	(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment-grade		% Drawn(d)		Loans and Lending-related Commitments	Derivative Receivables	Credit exposure	% Investment-grade	% Drawn(d)
Retail(a)	Retail(a)	$	36,022	$	268	$	36,290	53	%	31	%
Business and Consumer Services	Business and Consumer Services	32,012		409		32,421		49		40
Business and Consumer Services
Business and Consumer Services
Food and Beverage
Food and Beverage
Food and Beverage	Food and Beverage	31,264		874		32,138		58		40
Consumer Hard Goods	Consumer Hard Goods	13,957		171		14,128		47		38
Consumer Hard Goods
Consumer Hard Goods
Leisure(b)
Leisure(b)
Leisure(b)	Leisure(b)	8,184		76		8,260		25		40
Total Consumer & Retail(c)	Total Consumer & Retail(c)	$	121,439	$	1,798	$	123,237	51	%	37	%
Total Consumer & Retail(c)
Total Consumer & Retail(c)

		December 31, 2023
		December 31, 2022
		December 31, 2023

		December 31, 2023
(in millions, except ratios)
(in millions, except ratios)
(in millions, except ratios)	(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment- grade		% Drawn(d)		Loans and Lending-related Commitments	Derivative Receivables	Credit exposure	% Investment- grade	% Drawn(d)
Retail(a)	Retail(a)	$	33,891	$	309	$	34,200	50	%	33	%
Business and Consumer Services	Business and Consumer Services	31,256		384		31,640		50		40
Business and Consumer Services
Business and Consumer Services
Food and Beverage
Food and Beverage
Food and Beverage	Food and Beverage	31,706		736		32,442		59		39
Consumer Hard Goods	Consumer Hard Goods	13,879		172		14,051		51		39
Consumer Hard Goods
Consumer Hard Goods
Leisure(b)
Leisure(b)
Leisure(b)	Leisure(b)	8,173		49		8,222		21		45
Total Consumer & Retail	Total Consumer & Retail	$	118,905	$	1,650	$	120,555	50	%	38	%
Total Consumer & Retail
Total Consumer & Retail

(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 March 31, ~~2023~~2024, approximately ~~89%~~91% of the noninvestment-grade Leisure portfolio is secured.

(c)Consumer & Retail exposure is approximately ~~57%~~60% secured; unsecured exposure is approximately ~~79%~~80% investment-grade.

(d)Represents drawn exposure as a percent of credit exposure.

Oil & Gas

Oil & Gas exposure was ~~$34.0~~$33.3 billion as of March 31, ~~2023~~2024, of which ~~$545~~$290 million was considered ~~criticized exposure.~~criticized.


		March 31, 2023
	March 31, 2024
(in millions, except ratios)
(in millions, except ratios)
(in millions, except ratios)	(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment-grade		% Drawn(c)		Loans and Lending-related Commitments	Derivative Receivables	Credit exposure	% Investment-grade	% Drawn(c)
Exploration & Production (“E&P”) and Oil field Services	Exploration & Production (“E&P”) and Oil field Services	$	16,364	$	1,847	$	18,211	53	%	29	%
Other Oil & Gas(a)	Other Oil & Gas(a)	15,544		239		15,783		61		27
Other Oil & Gas(a)
Other Oil & Gas(a)
Total Oil & Gas(b)
Total Oil & Gas(b)
Total Oil & Gas(b)	Total Oil & Gas(b)	$	31,908	$	2,086	$	33,994	56	%	28	%

		December 31, 2023
		December 31, 2022
		December 31, 2023

		December 31, 2023
(in millions, except ratios)
(in millions, except ratios)
(in millions, except ratios)	(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment- grade		% Drawn(c)		Loans and Lending-related Commitments	Derivative Receivables	Credit exposure	% Investment- grade	% Drawn(c)
Exploration & Production (“E&P”) and Oil field Services	Exploration & Production (“E&P”) and Oil field Services	$	17,729	$	4,666	$	22,395	50	%	25	%
Other Oil & Gas(a)	Other Oil & Gas(a)	15,818		455		16,273		57		25
Other Oil & Gas(a)
Other Oil & Gas(a)
Total Oil & Gas	Total Oil & Gas	$	33,547	$	5,121	$	38,668	53	%	25	%
Total Oil & Gas
Total Oil & Gas

(a)Other Oil & Gas includes Integrated Oil & Gas companies, Midstream/Oil Pipeline companies and refineries.

(b)Oil & Gas exposure is approximately ~~40%~~38% secured, ~~over~~approximately half of which is reserve-based lending to the Exploration & Production sub-sector; unsecured exposure is approximately 68% investment-grade.

(c)Represents drawn exposure as a percent of credit exposure.

5963

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 11 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 three months ended March 31, ~~2023~~2024 and ~~2022.~~2023. Since March 31, ~~2022,~~2023, nonaccrual loan exposure ~~decreased~~increased by ~~$148~~$966 million driven by ~~Transportation, civic organizations~~retained loans in Real Estate concentrated in Office and ~~SPEs, due to paydowns,~~in Healthcare, reflecting downgrades, and in Individuals, predominantly driven by the impact of First Republic, partially offset by ~~Consumer & Retail and Industrials due to~~a client-specific ~~downgrades.~~upgrade in civic organizations.


Wholesale nonaccrual loan activity	Wholesale nonaccrual loan activity					Wholesale nonaccrual loan activity
Three months ended March 31, (in millions)	Three months ended March 31, (in millions)	2023		2022		Three months ended March 31, (in millions)	2024	2023
Beginning balance	Beginning balance	$	2,395	$	2,445
Additions	Additions	672		866
Reductions:	Reductions:
Paydowns and other	Paydowns and other	267		357
Paydowns and other
Paydowns and other
Gross charge-offs	Gross charge-offs	95		17
Returned to performing status	Returned to performing status	53		186
Sales	Sales	52		3
Total reductions	Total reductions	467		563
Net changes	Net changes	205		303
Ending balance	Ending balance	$	2,600	$	2,748

The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023. 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)
(in millions, except ratios) Three months ended March 31,
2023 2022
Loans
Average loans retained $ 601,401 $ 559,395
Gross charge-offs 105 52
Gross recoveries collected (22) (22)
Net charge-offs/(recoveries) 83 30
Net charge-off/(recovery) rate 0.06 % 0.02 %


Wholesale net charge-offs/(recoveries)
(in millions, except ratios)	Three months ended March 31,
	2024			2023
Loans
Average loans retained	$	664,588		$	601,401
Gross charge-offs	136			105
Gross recoveries collected	(50)			(22)
Net charge-offs/(recoveries)	86			83
Net charge-off/(recovery) rate	0.05		%	0.06		%

Modified wholesale loans

The amortized cost of wholesale FDMs was $609 million and $437 million, of which $149 million and $220 million were nonaccrual loan exposure for the three months ended March 31, ~~2023.~~2024 and 2023, respectively. Refer to Note 1 of JPMorgan Chase’s 2023 Form 10-K and Note 11 of this Form 10-Q for further information.

~~Wholesale TDRs were $418 million for the three months ended March 31, 2022. Refer to Note 11 for further information on TDRs in prior periods.~~

6064

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 22 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.,~~(including cash on deposit, and primarily 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. Credit risk arising from lending activities subject to collateral maintenance requirements is generally mitigated by factors such as the short-term nature of the activity, the fair value of collateral held and the Firm’s right to call for, and the borrower’s obligation to provide, additional margin when the fair value of the collateral declines. Because of these mitigating factors, these receivables generally do not require an allowance for credit losses. However, if in management’s judgment, an allowance for credit losses is required, the Firm estimates expected credit losses based on the value of the collateral and probability of borrower default. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets.

Refer to Note 13of JPMorgan Chase's 2023 Form 10-K for further information on the Firm’s accounting policies for the allowance for credit losses.

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 over-the-counter ("OTC") derivatives, the Firm is exposed to the credit risk of the derivative counterparty. For exchange-traded derivatives (“ETD”), such as futures and options, and cleared over-the-counter (“OTC-cleared”) derivatives, the Firm can also be exposed to the credit risk of the relevant ~~central counterparty clearing house (“CCP”).~~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~~OTC 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 ~~89% and~~ 87% at both March 31, ~~2023,~~2024 and December 31, ~~2022, respectively.~~2023. Refer to Note 4 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 was ~~$59.3~~$56.6 billion and ~~$70.9~~$54.9 billion at March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, respectively. The ~~decrease~~increase was primarily ~~driven by~~as a result of market ~~movements in CIB Markets.~~movements. 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~~holds 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 receivables 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 4 for additional information on the Firm’s use of collateral ~~agreements.~~agreements for derivative transactions.

6165

The following tables summarize the net derivative receivables and the internal ratings profile for the periods presented.


Derivative receivables	Derivative receivables
(in millions)
(in millions)
(in millions)	(in millions)	March 31, 2023		December 31, 2022		March 31, 2024	December 31, 2023
Total, net of cash collateral	Total, net of cash collateral	$	59,274	$	70,880
Liquid securities and other cash collateral held against derivative receivables	Liquid securities and other cash collateral held against derivative receivables	(20,923)		(23,014)
Total, net of liquid securities and other cash collateral	Total, net of liquid securities and other cash collateral	$	38,351	$	47,866
Other collateral held against derivative receivables	Other collateral held against derivative receivables	(1,234)		(1,261)
Total, net of collateral	Total, net of collateral	$	37,117	$	46,605


Ratings profile of derivative receivables	Ratings profile of derivative receivables


		March 31, 2023				December 31, 2022					March 31, 2024						December 31, 2023
(in millions, except ratios)	(in millions, except ratios)	Exposure net of collateral		% of exposure net of collateral		Exposure net of collateral			% of exposure net of collateral		(in millions, except ratios)	Exposure net of collateral		% of exposure net of collateral				Exposure net of collateral			% of exposure net of collateral
Investment-grade	Investment-grade	$	28,199	76	%	$	35,097		75	%	Investment-grade	$	25,251	78	78	%		$	24,004	76		76	%
Noninvestment-grade	Noninvestment-grade	8,918		24		11,508		(a)	25
Total	Total	$	37,117	100	%	$	46,605		100	%	Total	$	32,450	100	100	%		$	31,410	100		100	%

Credit portfolio management activities

The Firm uses credit derivatives for two primary purposes: first, in its capacity as a market-maker, and second, as an end-user, to manage the Firm’s own credit risk associated with traditional lending activities (loans and lending-related commitments) and derivatives counterparty exposure in the Firm’s wholesale businesses. In addition, the Firm obtains credit protection against certain loans in the retained wholesale portfolio through the issuance of credit-related notes. Information on credit portfolio management activities is provided in the table below.

Credit derivatives and credit-related notes used in credit portfolio management activities

Notional amount of protection

purchased and sold(a)

Notional amount of protection

purchased and sold(a)

Notional amount of protection

purchased and sold(a)

(in millions)

March 31,
2023

December 31,
2022

(in millions)

March 31,
2024

December 31,
2023

Credit derivatives and credit-related notes used to manage:

Loans and lending-related commitments

13,923

6,422

Loans and lending-related commitments

Derivative receivables

15,789

11,721

Credit derivatives and credit-related notes used in credit portfolio management activities

29,712

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.

Refer to Credit derivatives in Note 4 of this Form 10-Q and Note 5 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for further information on credit derivatives and derivatives used in credit portfolio management activities.

6266

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 Firm's allowance for credit losses 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 reflected in accounts payable and other liabilities on the Consolidated balance sheets, and

•the allowance for credit losses on investment securities, which is reflected in investment securities on the Consolidated balance sheets.

Discussion of changes in the allowance

The allowance for credit losses as of March 31, 2024 was relatively flat when compared to December 31, 2023, reflecting:

•a net reduction of $142 million in wholesale, which included a net addition associated with net downgrade activity, largely in Real Estate, primarily in CB, which was ~~$22.8 billion, reflecting~~ more than offset by the net impact of changes in the loan and lending-related commitment portfolios, as well as updates to certain macroeconomic variables, and

•a net addition of ~~$1.1 billion from December 31, 2022. The~~$44 million in consumer, consisting of:

–$153 million in Card Services, primarily due to seasoning of newer vintages, largely offset by reduced borrower uncertainty,

predominantly offset by:

–a $125 million net ~~addition to the allowance for credit losses was predominantly~~ reduction in Home Lending, primarily driven by ~~a deterioration~~improvements in the ~~Firm's weighted-average economic~~ outlook ~~including the impact from changes to the Firm’s macroeconomic scenarios, and~~for home prices.

The Firm has maintained the additional weight placed on the ~~relative~~ adverse ~~scenario. The additional weight placed on~~scenarios in the ~~relative adverse scenario reflects an increased probability~~first quarter of ~~a moderate recession due~~2023 to ~~tightening financial conditions, including higher inflation, changes in monetary policy, and geopolitical risks.~~

~~The net addition to the allowance~~ ~~consisted of:~~

•~~$726 million~~ in ~~wholesale, which also reflected net downgrade activity, and an addition to the allowance for credit losses associated with Other assets in Corporate, and~~

•~~$416 million~~ in ~~consumer~~.

~~The allowance for credit losses also reflected a reduction of $587 million~~reflect downside risks as a result of ~~the adoption of changes to the TDR accounting guidance. Refer to Note 1 for further information.~~persistent inflation and tightening financial conditions.

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 ~~5.8%~~5.4% in the ~~third~~first quarter of ~~2024,~~2025, and a ~~1.2% lower~~weighted average U.S. real GDP ~~exiting~~level that is 1.7% lower than the central case at the end of the second quarter of ~~2024.~~2025.

The following table presents the Firm’s central case assumptions ~~reflected U.S. unemployment rates and U.S. real GDP as follows:~~for the periods presented:


		Assumptions at March 31, 2023
		2Q23		4Q23		2Q24
	Central case assumptions at March 31, 2024														Central case assumptions at March 31, 2024
	2Q24											2Q24		4Q24	2Q25
U.S. unemployment rate(a)	U.S. unemployment rate(a)	3.5	%	4.1	%	4.9	%	U.S. unemployment rate(a)	3.9	%	4.2	%	4.1	%
YoY growth in U.S. real GDP(b)	YoY growth in U.S. real GDP(b)	2.0	%	0.4	%	—	%	YoY growth in U.S. real GDP(b)	2.6	%	0.9	%	1.2	%

		Assumptions at December 31, 2022
		2Q23		4Q23		2Q24
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
	2Q24											2Q24		4Q24	2Q25
U.S. unemployment rate(a)	U.S. unemployment rate(a)	3.8	%	4.3	%	5.0	%	U.S. unemployment rate(a)	4.1	%	4.4	%	4.1	%
YoY growth in U.S. real GDP(b)	YoY growth in U.S. real GDP(b)	1.5	%	0.4	%	—	%	YoY growth in U.S. real GDP(b)	1.8	%	0.7	%	1.0	%

(a)Reflects quarterly average of forecasted U.S. unemployment rate.

(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.

Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.

Refer to Note 13 and Note 10 of JPMorgan Chase's ~~2022~~2023 Form 10-K for a description of the policies, methodologies and judgments used to determine the Firm’s ~~allowances~~allowance for credit losses on loans, lending-related commitments, and investment ~~securities.~~securities.

Refer to Consumer Credit Portfolio on pages ~~50-53,~~54-57, Wholesale Credit Portfolio on pages ~~54-62~~58-66 and Note 11 for additional information on the consumer and wholesale credit portfolios.

Refer to Critical Accounting Estimates Used by the Firm on pages ~~74-76~~78-80 for further information on the allowance for credit losses and related management judgments.

6367


Allowance for credit losses and related information	Allowance for credit losses and related information
		2023												2022
		2024
		2024
		2024																																				2023
Three months ended March 31,	Three months ended March 31,	Consumer, excluding credit card			Credit card			Wholesale			Total			Consumer, excluding credit card			Credit card			Wholesale			Total			Three months ended March 31,	Consumer, excluding credit card		Credit card			Wholesale			Total			Consumer, excluding credit card		Credit card			Wholesale			Total
(in millions, except ratios)	(in millions, except ratios)
Allowance for loan losses	Allowance for loan losses
Allowance for loan losses
Allowance for loan losses
Beginning balance at January 1,
Beginning balance at January 1,
Beginning balance at January 1,	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												Cumulative effect of a change in accounting principle(a)	NA											(489)		(100)			2			(587)
Gross charge-offs	Gross charge-offs	235			1,111			105			1,451			204			720			52			976
Gross recoveries collected	Gross recoveries collected	(103)			(189)			(22)			(314)			(158)			(214)			(22)			(394)
Net charge-offs/(recoveries)		132			922			83			1,137			46			506			30			582
Net charge-offs
Provision for loan losses	Provision for loan losses	247			1,222			578			2,047			175			506			687			1,368
Other	Other	—			—			4			4						—			20			20
Ending balance at March 31,	Ending balance at March 31,	$	1,666		$	11,400		$	6,987		$	20,053		$	1,894		$	10,250		$	5,048		$	17,192

Allowance for lending-related commitments	Allowance for lending-related commitments
Allowance for lending-related commitments
Allowance for lending-related commitments
Beginning balance at January 1,
Beginning balance at January 1,
Beginning balance at January 1,	Beginning balance at January 1,	$	76		$	—		$	2,306		$	2,382		$	113		$	—		$	2,148		$	2,261
Provision for lending-related commitments	Provision for lending-related commitments	1			—			(14)			(13)			(2)			—			98			96
Other	Other	—			—			1			1			—			—			1			1
Ending balance at March 31,	Ending balance at March 31,	$	77		$	—		$	2,293		$	2,370		$	111		$	—		$	2,247		$	2,358

Impairment methodology	Impairment methodology
Impairment methodology
Impairment methodology
Asset-specific(b)
Asset-specific(b)
Asset-specific(b)	Asset-specific(b)	$	(1,030)		$	—		$	437		$	(593)		$	(644)		$	262		$	485		$	103
Portfolio-based	Portfolio-based	2,696			11,400			6,550			20,646			2,538			9,988			4,563			17,089
Total allowance for loan losses	Total allowance for loan losses	$	1,666		$	11,400		$	6,987		$	20,053		$	1,894		$	10,250		$	5,048		$	17,192

Impairment methodology	Impairment methodology
Impairment methodology
Impairment methodology
Asset-specific
Asset-specific
Asset-specific	Asset-specific	$	—		$	—		$	45		$	45		$	—		$	—		$	139		$	139
Portfolio-based	Portfolio-based	77			—			2,248			2,325			111			—			2,108			2,219
Total allowance for lending-related commitments	Total allowance for lending-related commitments	$	77		$	—		$	2,293		$	2,370		$	111		$	—		$	2,247		$	2,358
Total allowance for investment securities	Total allowance for investment securities	NA									$	90		NA									$	41
Total allowance for credit losses(c)		$	1,743		$	11,400		$	9,280		$	22,513		$	2,005		$	10,250		$	7,295		$	19,591
Total allowance for credit losses(c)(d)

Memo:	Memo:
Retained loans, end of period		$	300,447		$	180,079		$	604,324		$	1,084,850		$	296,161		$	152,283		$	569,953		$	1,018,397
Memo:
Memo:
Retained loans, end-of-period
Retained loans, end-of-period
Retained loans, end-of-period
Retained loans, average	Retained loans, average	300,585			180,451			601,401			1,082,437			295,460			149,398			559,395			1,004,253			Retained loans, average	394,033		204,637	204,637		664,588	664,588		1,263,258	1,263,258		300,585		180,451	180,451		601,401	601,401		1,082,437	1,082,437
Credit ratios	Credit ratios
Allowance for loan losses to retained loans	Allowance for loan losses to retained loans	0.55		%	6.33		%	1.16		%	1.85		%	0.64		%	6.73		%	0.89		%	1.69		%
Allowance for loan losses to retained nonaccrual loans(d)		43			NM			316			331			42			NM			221			254
Allowance for loan losses to retained loans
Allowance for loan losses to retained loans																											0.44	%	6.09		%	1.20		%	1.77		%	0.55	%	6.33		%	1.16		%	1.85		%
Allowance for loan losses to retained nonaccrual loans(e)
Allowance for loan losses to retained nonaccrual loans excluding credit card	Allowance for loan losses to retained nonaccrual loans excluding credit card	43			NM			316			143			42			NM			221			102
Net charge-off/(recovery) rates	Net charge-off/(recovery) rates	0.18			2.07			0.06			0.43			0.06			1.37			0.02			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 of JPMorgan Chase’s 2023 Form 10-K for further information.

(b)Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated ~~loans for all periods presented. Prior periods also include non collateral-dependent TDRs or reasonably expected TDRs and modified purchased credit deteriorated ("PCD")~~ loans.

(c)At March 31, 2024 and 2023, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $274 million and $20 million, respectively, associated with certain accounts receivable in CIB. At March 31, 2023, the Firm also had an allowance for credit losses of $241 million associated with Other assets in ~~Corporate and $20 million~~Corporate.

(d)As of March 31, 2024, included the allowance for credit losses associated with ~~certain accounts receivable in CIB.~~First Republic.

~~(d)~~(e)The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

6468

Allocation of allowance for loan losses

The table below presents a breakdown of the allowance for loan losses by loan class. Refer to Note 11 for further information on loan classes.


		March 31, 2023				December 31, 2022
	March 31, 2024															March 31, 2024						December 31, 2023
(in millions, except ratios)	(in millions, except ratios)	Allowance for loan losses		Percent of retained loans to total retained loans		Allowance for loan losses		Percent of retained loans to total retained loans		(in millions, except ratios)	Allowance for loan losses		Percent of retained loans to total retained loans				Allowance for loan losses		Percent of retained loans to total retained loans
Residential real estate	Residential real estate	$	655	22	%	$	1,070	22	%	Residential real estate	$	656	25	25	%		$	817	25	25	%
Auto and other	Auto and other	1,011		6		970		6
Consumer, excluding credit card	Consumer, excluding credit card	1,666		28		2,040		28
Credit card	Credit card	11,400		17		11,200		17
Total consumer	Total consumer	13,066		44		13,240		45
Secured by real estate	Secured by real estate	1,865		12		1,782		12
Commercial and industrial	Commercial and industrial	3,644		16		3,507		15
Other	Other	1,478		28		1,197		28
Total wholesale	Total wholesale	6,987		56		6,486		55
Total	Total	$	20,053	100	%	$	19,726	100	%	Total	$	22,351	100	100	%		$	22,420	100	100	%

6569

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 March 31, ~~2023,~~2024, the Treasury and CIO investment securities portfolio, net of the allowance for credit losses, was ~~$608.1~~$568.3 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 ~~33-34~~35-36 and Note 9 for further information on the investment securities portfolio and internal risk ratings. Refer to Liquidity Risk Management on pages ~~42-47~~44-51 for further information on related liquidity risk. Refer to Market Risk Management on pages ~~67-72~~71-76 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 based on market circumstances and in line with its ~~strategies,~~strategic initiatives, including the Firm’s ~~commitment to support underserved communities~~environmental and ~~minority-owned businesses.~~social goals.

The table below presents the aggregate carrying values of the principal investment portfolios as of March 31, ~~2023~~2024 and December 31, ~~2022.~~2023.


(in billions)	(in billions)	March 31, 2023		December 31, 2022		(in billions)	March 31, 2024	December 31, 2023
Tax-oriented investments, primarily in alternative energy and affordable housing		$	26.1	$	26.2
Private equity, various debt and equity instruments, and real assets(a)		10.5		10.8
Tax-oriented investments, primarily in alternative energy and affordable housing(a)
Private equity, various debt and equity instruments, and real assets
Total carrying value	Total carrying value	$	36.6	$	37.0

(a)~~Includes~~Effective January 1, 2024, the ~~Firm’s 40% ownership~~Firm adopted updates to the Accounting for Investments in ~~C6 Bank and 49% ownership in Viva Wallet.~~Tax Credit Structures guidance. Refer to Note 13 for additional information.

Refer to page ~~130~~134 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a discussion of the Firm’s Investment Portfolio Risk Management governance and oversight.

6670

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 ~~131-138~~135–143 of JPMorgan Chase’s ~~2022~~2023 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 ~~148~~154 of JPMorgan Chase’s ~~2022~~2023 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 ~~148~~154 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for information regarding model reviews and approvals.

Refer to page ~~133~~137 of JPMorgan Chase’s ~~2022~~2023 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 ~~136-138~~140–143 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for further information regarding nonstatistical market risk measures used by the Firm.

6771

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
March 31, 2023 December 31, 2022 March 31, 2022
(in millions) Avg. Min Max Avg. Min Max Avg. Min Max
CIB trading VaR by risk type
Fixed income $ 56 $ 45 $ 71 $ 66 $ 54 $ 80 $ 47 $ 33 $ 64
Foreign exchange 10 6 17 11 7 14 4 3 7
Equities 7 5 10 13 7 20 12 9 18
Commodities and other 15 11 19 18 14 28 15 10 23
Diversification benefit to CIB trading VaR (44) (a) NM (f) NM (f) (50) (a) NM (f) NM (f) (33) (a) NM (f) NM (f)
CIB trading VaR 44 34

55

58 49 68 45 34 59
Credit Portfolio VaR 11 (b)(c) 8 (b) 17 (b)(c) 10 (b) 8 (b) 16 (b) 29 (b)(c) 4 (b) 235 (b)(c)
Diversification benefit to CIB VaR (10) (a) NM (f) NM (f) (8) (a) NM (f) NM (f) (10) (a) NM (f) NM (f)
CIB VaR 45 35

58

60 51

72

64 35

240

CCB VaR 11 (d) 6 15 8 6 20 4 (d) 2 5
Corporate and other LOB VaR 15 (e) 13

17

13 10

15

13 (e) 10

16

Diversification benefit to other VaR (8) (a) NM (f) NM (f) (5) (a) NM (f) NM (f) (4) (a) NM (f) NM (f)
Other VaR 18 14

22

16 13

24

13 10

17

Diversification benefit to CIB and other VaR (16) (a) NM (f) NM (f) (15) (a) NM (f) NM (f) (14) (a) NM (f) NM (f)
Total VaR $ 47 $ 37

$ 57

$ 61 $ 51 $ 71 $ 63 $ 34 $ 242


Total VaR
	Three months ended
	March 31, 2024						December 31, 2023						March 31, 2023
(in millions)	Avg.		Min		Max		Avg.		Min		Max		Avg.		Min		Max
CIB trading VaR by risk type
Fixed income	$	35	$	30	$	39	$	35	$	31	$	40	$	56	$	45	$	71
Foreign exchange	13		8		19		10		7		16		10		6		17
Equities	6		4		13		5		3		9		7		5		10
Commodities and other	7		6		10		8		6		10		15		11		19
Diversification benefit to CIB trading VaR(a)	(29)		NM		NM		(29)		NM		NM		(44)		NM		NM
CIB trading VaR	32		27		40		29		24		35		44		34		55
Credit Portfolio VaR(b)	24		20		28		16		13		26		11		8		17
Diversification benefit to CIB VaR(a)	(15)		NM		NM		(13)		NM		NM		(10)		NM		NM
CIB VaR	41		36		50		32		23		38		45		35		58
CCB VaR	3		1		6		4		1		7		11		6		15
Corporate and other LOB VaR(c)	14		13		15		10		9		15		15		13		17
Diversification benefit to other VaR(a)	(3)		NM		NM		(3)		NM		NM		(8)		NM		NM
Other VaR	14		12		16		11		9		16		18		14		22
Diversification benefit to CIB and other VaR(a)	(7)		NM		NM		(8)		NM		NM		(16)		NM		NM
Total VaR	$	48	$	43	$	58	$	35	$	26	$	44	$	47	$	37	$	57

(a)~~Diversification~~Diversification benefit represents the difference between the portfolio VaR and the sum of its individual components. This reflects the non-additive nature of VaR due to imperfect correlation across LOBs, Corporate, and risk types. For maximum and minimum VaR, diversification benefit is not meaningful as the maximum and minimum VaR for each portfolio may have occurred on different trading days than the components.

(b)~~Credit portfolio VaR includes~~Includes the derivative CVA, hedges of the CVA and ~~hedges of the~~credit protection purchased against certain retained ~~loan portfolio,~~loans and lending-related commitments, 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)~~For~~Includes average AWM VaR of $9 million for the ~~three months~~period ended March 31, ~~2022,~~2024 associated with credit protection purchased against certain retained loans and lending-related commitments, which are reported in principal transactions revenue. This VaR does not include the effects of nickel price increases and the associated volatility in the nickel market resulted in elevated average and maximum Credit Portfolio VaR. For the three months ended March 31, 2023, average and maximum Credit Portfolio VaR have decreased driven by a reduction in nickel-related exposure when compared to the same period in the prior year.

~~(d)The increase in CCB VaR~~retained loan portfolio, which is ~~driven by interest rate volatility impacting Home Lending warehouse loans, MSR, and related hedges.~~

~~(e)The increase in Corporate and other LOB VaR is driven by higher market values for~~not reported at fair value. Also includes a legacy private equity position in Corporate which is publicly ~~traded.~~

~~(f)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.~~traded.

Quarter over quarter results

Average total VaR ~~decreased~~increased by ~~$14~~$13 million for the three months ended March 31, ~~2023~~2024, when compared with December 31, ~~2022, reflecting reductions in exposure across fixed income, equities,~~2023, predominantly driven by credit protection purchased against certain retained loans and ~~commodities.~~lending-related commitments within Credit Portfolio VaR and Corporate and other LOB VaR.

Year over year results

Average total VaR ~~decreased~~increased by ~~$16~~$1 million for the three months ended March 31, ~~2023,~~2024, compared with the same period in the prior year ~~predominantly due to a reduction in the nickel-related counterparty exposure in~~driven by credit protection purchased against certain retained loans and lending-related commitments within Credit Portfolio ~~VaR.~~

VaR and Corporate and other LOB VaR, predominantly offset by market volatility rolling out of the one-year historical look-back period which had impacted fixed income and commodities.

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

First Quarter
2022

Second Quarter
2022

Third Quarter
2022

Fourth Quarter
2022

First Quarter
2023

Second Quarter
2023

Third Quarter
2023

Fourth Quarter
2023

First Quarter
2024

6872

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 certain components of total net revenue, such as those associated with the execution of new transactions (i.e., intraday client-driven trading and intraday risk management activities), fees, commissions, other valuation adjustments and net interest income. These excluded components of total net revenue may more than offset the backtesting gain or loss on a particular day. The definition of backtesting gains and losses above is consistent with the requirements for backtesting under Basel III capital rules.

A backtesting exception occurs when the daily backtesting loss exceeds the daily Risk Management VaR for the prior day. Under the Firm’s Risk Management VaR methodology, assuming current changes in market values are consistent with the historical changes used in the simulation, the Firm would expect to incur VaR backtesting exceptions five times every 100 trading 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 March 31, ~~2023,~~2024, the Firm posted backtesting gains on ~~137~~144 of the ~~259~~258 days, and observed 16eleven VaR backtesting exceptions. For the three months ended March 31, ~~2023,~~2024, the Firm posted backtesting gains on 4449 of the 64 days, and ~~observed two~~did not observe any VaR backtesting exceptions.

The following chart presents the distribution of Firmwide daily backtesting gains and losses for the trailing 12 months and three months ended March 31, ~~2023.~~2024. 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

6973

Structural interest rate risk management

The effect of interest rate exposure on the Firm’s reported net income is important as interest rate risk represents one of the Firm’s significant market risks. Interest rate risk arises not only from trading activities which are included in VaR, but also from the Firm’s traditional banking activities, which include extension of loans and credit facilities, taking deposits, issuing debt, ~~and~~as well as the investment securities ~~portfolio.~~portfolio, and associated derivative instruments.

Refer to the table on page 136 of JPMorgan Chase’s 2023 Form 10-K for a summary by LOB and Corporate identifying positions included in earnings-at-risk.

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 ~~132~~136 of JPMorgan Chase’s ~~2022~~2023 Form 10-K. These simulations exclude hedges of exposure from non-U.S. dollar foreign exchange risk arising from the Firm’s capital investments. The inclusion of the hedges in these simulations would increase U.S. dollar sensitivities and decrease non-U.S. dollar sensitivities. Refer to non-U.S. dollar foreign exchange risk on page 143 of JPMorgan Chase’s 2023 Form 10-K for more information.

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 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 are a key assumption in the Firm's earnings-at-risk. The baseline reflects certain assumptions relating to the reversal of Quantitative 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. ~~The~~Actual deposit rates paid ~~in these scenarios~~may differ from ~~actual deposit rates paid,~~the modeled assumptions, primarily due to ~~repricing lags~~customer behavior and ~~other factors.~~competition for deposits.

The Firm performs sensitivity analyses of the assumptions used in earnings-at-risk scenarios, including with respect to deposit betas and forecasts of deposit balances, both of which are especially significant in the case of consumer deposits. The results of these sensitivity analyses are reported to the CTC Risk Committee and the Board Risk Committee.

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. The Firm is currently evaluating ~~the modeling of repricing lags for deposits~~updates to deposit rates paid used in its earnings-at-risk ~~scenarios. Incorporating repricing lags, in~~scenarios considering observed pricing and client and customer behavior. In the current environment, incorporating these updated deposit rates paid would ~~significantly~~ affect the U.S. dollar ~~interest rate~~ scenarios, with higher interest rate scenarios expected to result in aan increase in positive sensitivity, and lower interest rate scenarios expected to result in aan increase in negative sensitivity, onwith respect to the Firm’s earnings-at-risk.While a relevant measure of the Firm’s interest rate exposure, the earnings-at-risk analysis does not represent a forecast of the Firm’s net interest ~~income. Refer~~income (Refer to Outlook on page 8 for additional ~~information.~~information).

The Firm’s U.S. dollar and non-U.S. dollar sensitivities are presented in the table below.

(in billions)

March 31, 2023

December 31, 2022

(In billions)

U.S. dollar:

Parallel shift:(a)

+100 bps shift in rates

(1.6)

(2.0)

+100 bps shift in rates

-100 bps shift in rates

1.7

2.4

-100 bps shift in rates

+200 bps shift in rates

-200 bps shift in rates

Steeper yield curve:

+100 bps shift in long-term rates

0.7

0.8

+100 bps shift in long-term rates

-100 bps shift in short-term rates

2.4

3.2

Flatter yield curve:

+100 bps shift in short-term rates

(2.3)

(2.8)

-100 bps shift in long-term rates

(0.7)

(0.9)

-100 bps shift in long-term rates

Non-U.S. dollar:

Parallel shift: (a)

+100 bps shift in rates

-100 bps shift in rates

(a)Reflects the simultaneous shift of U.S. dollar and non-U.S. dollar rates.

The change in the Firm’s U.S. dollar sensitivities as of March 31, ~~2023~~2024 compared to December 31, ~~2022~~2023 primarily reflected the impact of changes in the Firm’s balance sheet.

As of March 31, ~~2023,~~2024, the Firm’s sensitivity to the +/-100 basis points parallel ~~and short-term~~ shift in ~~rates is primarily the result of a greater impact from liabilities repricing compared to the impact of assets repricing, while a +/-100~~ ~~basis points~~ ~~shift in long-term~~ rates is primarily the result of a greater impact from assets repricing compared to the impact of liabilities repricing.

~~The Firm’s non-U.S. dollar sensitivities are presented in the table below.~~

(in billions) March 31, 2023 December 31, 2022
Parallel shift:
+100 bps shift in rates $ 0.8 $ 0.7
-100 bps shift in rates (0.8) (0.6)
Steeper yield curve:
-100 bps shift in short-term rates (0.7) (0.6)
Flatter yield curve:
+100 bps shift in short-term rates 0.7 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 ~~March 31, 2023~~ ~~and~~ ~~December 31, 2022~~.Economic Value Sensitivity

In addition to earnings-at-risk, which is measured as a sensitivity to a baseline of earnings over the next 12 months, the Firm also measures Economic Value Sensitivity ~~(EVS)~~(“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. The Firm's pricing and cash flow assumptions associated with deposits, as well as prepayment assumptions for loans and securities, are significant factors in the EVS measure. In accordance with the CTC ~~structural~~ interest rate risk management policy, the Firm has established limits on EVS as a percentage of ~~CET1.~~TCE.

~~Refer~~Certain assumptions used in the EVS measure may differ from those required in the fair value disclosure. For example, certain assets and liabilities with no stated maturity, such as credit card receivables and deposits, have longer assumed durations in the EVS measure. Additional information on long-term debt and held to ~~Other Risk Measures~~maturity investment securities is disclosed on ~~pages 136–138 of JPMorgan Chase’s 2022 Form 10-K for additional information.~~page 101 in Note 2 financial instruments that are not carried at fair value on the Consolidated balance sheets.

7175

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 ~~138~~136 of JPMorgan Chase’s ~~2022~~2023 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 March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, 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)

March 31, 2023

December 31, 2022

Gain/(loss) (in millions)

March 31, 2024

December 31, 2023

Activity

Description

Sensitivity measure

Debt and equity(a)

Asset Management activities

Consists of seed capital and related hedges; fund co-investments(c); and certain deferred compensation and related hedges(d)

10% decline in market value

(47)

(56)

Other debt and equity

Consists of certain real estate-related fair value option elected loans, privately held equity and other investments held at fair value(c)

10% decline in market value

(1,055)

(1,046)

Credit- and funding-related exposures

Non-USD LTD cross-currency basis

Represents the basis risk on derivatives used to hedge the foreign exchange risk on the non-USD LTD(e)

1 basis point parallel tightening of cross currency basis

(12)

Non-USD LTD hedges foreign currency (“FX”) exposure

Primarily represents the foreign exchange revaluation on the fair value of the derivative hedges(e)

10% depreciation of currency

Derivatives – funding spread risk

Impact of changes in the spread related to derivatives FVA(c)

1 basis point parallel increase in spread

(4)

CVA - counterparty credit risk(b)

Credit risk component of CVA and associated hedges

10% credit spread widening

(1)

Fair value option elected liabilities – funding spread risk

Impact of changes in the spread related to fair value option elected liabilities DVA(e)

1 basis point parallel increase in spread

Fair value option elected liabilities – interest rate sensitivity

Interest rate sensitivity on fair value option elected liabilities resulting from a change in the Firm’s own credit spread(e)

1 basis point parallel increase in spread

—

Interest rate sensitivity related to risk management of changes in the Firm’s own credit spread on the fair value option elected liabilities noted above(c)

1 basis point parallel increase in spread

—

(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.

7276

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 ~~139-140~~144–145 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a further discussion of the Firm’s country risk management.

Risk Reporting

The following table presents the Firm’s top 20 exposures by country (excluding the U.S.) as of March 31, ~~2023~~2024 and their comparative exposures as of December 31, ~~2022.~~2023. The ~~selection of countries represents~~top 20 country exposures represent 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. Country exposures may fluctuate from period to period due to a variety of factors, including client activity, market flows and ~~market flows.~~

~~The increase in exposure to Germany was predominantly driven~~liquidity management activities undertaken by ~~increases in cash placed with~~ the ~~central bank of Germany and in debt securities, due to client-driven market-making activities.~~

The decrease in exposure to Australia was predominantly driven by a reduction in cash placed with the central bank of Australia due to client-driven activities resulting from changes in interest rates.Firm.

The Firm continues to monitor ~~potential impacts~~its exposure to ~~the Firm associated with the war in Ukraine. As~~Russia which was approximately $350 million as of March 31, ~~2023, exposure to Russia was approximately $500 million.~~2024, driven by cash placed with the central bank. This amount excludes ~~certain~~ deposits placed on behalf of clients at the ~~Depository~~Deposit Insurance Agency of Russia. See Note 24 on pages 167-168 for information concerning Russian litigation.

														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)	March 31, 2023										December 31, 2022(f)		(in billions)	March 31, 2024						December 31, 2023(f)
		Deposits with banks(b)		Lending(c)		Trading and investing(d)		Other(e)		Total exposure		Total exposure
	Deposits with banks(b)															Deposits with banks(b)	Lending(c)	Trading and investing(d)	Other(e)	Total exposure		Total exposure
Germany	Germany	$	95.0	$	13.4	$	5.4	$	0.5	$	114.3	$	93.2
United Kingdom	United Kingdom	35.7		25.6		13.7		2.2		77.2		70.1
Japan	Japan	44.1		2.6		2.8		0.3		49.8		55.8
Canada	Canada	1.5		10.4		5.0		0.2		17.1		14.4
Australia
Brazil	Brazil	3.1		4.4		9.5		—		17.0		17.8
Switzerland		8.7		3.8		1.4		2.1		16.0		15.3
China	China	3.8		5.7		4.3		0.1		13.9		13.7
Australia		4.8		6.4		2.3		—		13.5		25.7
France	France	0.4		10.4		—		1.0		11.8		18.1
India	India	1.4		4.2		4.7		0.5		10.8		9.0
Switzerland
South Korea
Saudi Arabia
Singapore	Singapore	2.2		3.8		3.3		0.9		10.2		9.9
Mexico
Belgium	Belgium	6.6		1.6		1.9		—		10.1		9.2
South Korea		2.1		3.8		3.2		0.2		9.3		10.0
Italy
Netherlands	Netherlands	—		7.5		(0.2)		0.4		7.7		7.1
Mexico		0.6		4.5		2.4		—		7.5		5.4
Saudi Arabia		0.6		4.6		2.2		—		7.4		7.9
Spain	Spain	0.2		5.2		1.2		—		6.6		5.8
United Arab Emirates
Luxembourg	Luxembourg	0.9		3.0		1.1		—		5.0		5.3
Sweden		1.2		2.9		0.1		—		4.2		4.4
Malaysia		3.0		0.2		1.0		—		4.2		4.2

(a)Country exposures presented in the table reflect 88% and 87% of total F~~irmwide~~Firmwide non-U.S. exposure,where exposure is attributed to an individual country based on the Firm’s internal country risk management approach, at ~~both~~ March 31, ~~2023~~2024 and December 31, ~~2022.~~2023, respectively.

(b)Predominantly represents cash placed with central banks.

(c)Includes loans and accrued interest receivable, lending-related commitments (net of eligible collateral and the allowance for credit losses). Excludes intra-day and operating exposures, such as those from settlement and clearing activities.

(d)Includes market-making ~~inventory,~~positions and hedging, investment securities, and counterparty exposure on derivative and securities financings net of eligible ~~collateral~~collateral. Market-making positions and ~~hedging. Includes~~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.

(e)Includes physical commodities inventory and clearing house guarantee funds.

(f)The country rankings presented in the table as of December 31, ~~2022,~~2023, are based on the country rankings of the corresponding exposures at March 31, ~~2023~~2024, not actual rankings of such exposures at December 31, ~~2022.~~2023.

7377

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 generally ~~consists of:~~comprises:

•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, which is reflected in investment securities on the Consolidated balance sheets.~~securities.

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 ~~2022~~2023 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;~~losses, and ~~refer to~~ Allowance for credit losses on pages ~~63-65~~67-69 and Note 12 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 macroeconomic variables ("MEVs") that are relevant for exposures across the Firm, with modeled credit losses being driven primarily by a subset of less than twenty

variables. The specific variables that have the greatest effect on the modeled losses ~~of each portfolio~~ vary by portfolio and geography.

•Key MEVs for the consumer portfolio include regional U.S. unemployment rates and U.S. HPI.

•Key MEVs for the wholesale portfolio include U.S. unemployment, U.S. real GDP, U.S. equity prices, U.S. interest rates, U.S. corporate credit spreads, oil prices, U.S. commercial real estate prices and U.S. 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 26 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 63143 and in Note 12, the Firm’s relative adverse scenario assumes an elevated U.S. unemployment rate, averaging approximately ~~1.9%~~2.2% higher

over ~~the eight-quarter forecast, with a peak difference of~~

~~2.6% in the fourth quarter of 2023; lower~~

~~U.S. real GDP with a slower recovery, remaining approximately 3.0% lower at the end of~~ the eight-quarter forecast, with a peak difference of approximately ~~3.3%~~2.9% in the first quarter of ~~2024; and lower national HPI with a peak difference of approximately 9.3% in the fourth 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 March 31, ~~2023,~~2024, reflects credit losses beyond those estimated under the central scenario due to the weight placed on the adverse scenarios.

•The impacts of changes in many MEVs are both interrelated and nonlinear, so the results of this analysis

cannot be simply extrapolated for more severe changes in macroeconomic variables.

•Expectations of future changes in portfolio composition and borrower behavior can significantly affect the allowance for credit losses.

To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of March 31, ~~2023,~~2024, 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 ~~$650~~$800 million for residential real estate loans and lending-related commitments

•An increase of approximately ~~$2.5~~$3.2 billion for credit card loans

•▪An increase of approximately ~~$3.9~~$3.7 billion for wholesale loans and lending-related commitments

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 March 31, ~~2023.~~2024.

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.


March 31, 2023 (in millions, except ratios)		Total assets at fair value		Total level 3 assets
March 31, 2024 (in millions, except ratios)							March 31, 2024 (in millions, except ratios)	Total assets at fair value	Total level 3 assets
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	$	309,336	$	—
Securities borrowed	Securities borrowed	68,514		—
Trading assets:	Trading assets:
Trading–debt and equity instruments
Trading–debt and equity instruments
Trading–debt and equity instruments	Trading–debt and equity instruments	519,578		3,139
Derivative receivables(a)	Derivative receivables(a)	59,274		10,730
Total trading assets	Total trading assets	578,852		13,869
AFS securities	AFS securities	197,248		250
Loans	Loans	38,546		1,479
MSRs	MSRs	7,755		7,755
Other	Other	13,498		406
Total assets measured at fair value on a recurring basis	Total assets measured at fair value on a recurring basis	1,213,749		23,759
Total assets measured at fair value on a nonrecurring basis	Total assets measured at fair value on a nonrecurring basis	1,743		1,012
Total assets measured at fair value	Total assets measured at fair value	1,215,492		24,771
Total Firm assets	Total Firm assets	3,744,305
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)
Level 3 assets at fair value as a percentage of total Firm assets(a)										1	%
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)			2.0		%	Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)			2	%

(a)For purposes of the table above, the derivative receivables total reflects the impact of netting adjustments; however, the ~~$10.7~~$10.1 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.

7579

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 ~~$11.5 billion and $11.3~~$13.2 billion at both March 31, ~~2023~~2024 and December 31, ~~2022, respectively,~~2023, and is recorded in accounts payable and other liabilities on the Consolidated balance sheets. Refer to ~~page 151~~pages 157-158 of JPMorgan Chase’s ~~2022~~2023 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 page ~~152~~158 of JPMorgan Chase’s ~~2022~~2023 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 ~~151~~157 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a description of the significant valuation judgments associated with goodwill impairment.

Refer to Note 14 for additional information on goodwill, including the goodwill impairment assessment as of March 31, ~~2023.~~2024.

Litigation reserves

Refer to Note 24 of this Form 10-Q, and Note 30 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a description of the significant estimates and judgments associated with establishing litigation reserves.

7680

ACCOUNTING AND REPORTING DEVELOPMENTS


~~Financial Accounting Standards Board (“FASB”) Standards Adopted since January 1, 2021~~
~~Standard~~	~~Summary of guidance~~	~~Effects on financial statements~~
~~Reference Rate~~ ~~Reform~~ ~~Issued March~~ ~~2020 and updated January 2021 and~~ ~~December 2022~~	•~~Provides optional expedients and exceptions to current accounting guidance when financial instruments, hedge accounting relationships, and other transactions are amended due to reference rate reform.~~	•~~Issued and effective March 12, 2020. The January 7, 2021 and December 21, 2022 updates were effective when issued.~~ •~~Refer to Accounting and Reporting Developments on page 153 of JPMorgan Chase's 2022 Form 10-K for further information.~~
FASB Standards Adopted since January 1, ~~2023~~2024
Standard	Summary of guidance	Effects on financial statements
~~Derivatives and Hedging:~~ Fair Value ~~Hedging – Portfolio Layer Method~~Measurement: Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions Issued ~~March~~June 2022	•~~Expands the current ability to hedge~~Clarifies that a ~~portfolio of prepayable assets to allow more~~contractual sale restriction is not considered part of the ~~portfolio to be hedged. Non-prepayable assets can also be included in the same portfolio, thus increasing the size~~unit of account of the ~~portfolio~~equity security and, ~~the amount available to be hedged.~~therefore, is not considered in measuring fair value. •~~Clarifies~~Requires disclosure for investments in equity securities subject to contractual sale restrictions, including: 1) fair value of these investments, 2) nature and remaining duration of the ~~types of derivatives~~restriction(s) and 3) circumstances that ~~can be used as hedges, and~~could cause a lapse in the ~~balance sheet presentation and disclosure requirements for the hedge accounting adjustments.~~ •~~Allows a one-time reclassification from HTM to AFS upon adoption.~~restriction(s).	•Adopted prospectively on January 1, ~~2023.~~ •~~Refer~~2024, with no impact to ~~Note 1 for further information.~~the Firm’s consolidated financial statements.
~~Financial Instruments – Credit Losses: Troubled Debt Restructurings and Vintage Disclosures~~ ~~Issued March 2022~~	•~~Eliminates existing accounting and disclosure requirements for Troubled Debt Restructurings, including the requirement to measure the allowance using a discounted cash flow methodology.~~ •Requires disclosure of loan modifications for borrowers experiencing financial difficulty involving principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. •~~Requires disclosure of current period loan charge-off information by~~ ~~origination year.~~ •~~May be adopted prospectively, or by using a modified retrospective method wherein the effect of adoption is reflected as an adjustment to retained earnings at the effective date.~~	•~~Adopted under the modified retrospective method on January 1, 2023.~~ •~~Refer to Note 1 for further information.~~
~~FASB Standards Issued but not yet Adopted~~
~~Standard~~	~~Summary of guidance~~	~~Effects on financial statements~~
Investments - Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023	•Expands the ability to elect proportional amortization on a program-by-program basis, for ~~more~~additional types of tax-oriented investments (beyond ~~low income~~affordable 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.	•Adopted under the modified retrospective method on January 1, 2024. •Refer to Note 1 for further information.
FASB Standards Issued but not yet Adopted
Standard	Summary of guidance	Effects on financial statements
Segment Reporting: Improvements to Reportable Segment Disclosures Issued November 2023	•Requires disclosure of significant segment expenses that are readily provided to the chief operating decision maker (“CODM”) and included in segment profit or loss. •Requires disclosure of the composition and aggregate amount of other segment items, which represent the difference between profit or loss and segment revenues less significant segment expenses. •Requires disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported segment measures in assessing segment performance and deciding how to allocate resources.	•Required effective date: ~~January 1, 2024.~~ Annual financial statements for the year ending December 31, 2024 and for interim financial statements thereafter.(a) •The Firm is currently assessing the potential impact on its segment disclosures.
Income Taxes: Improvements to Income Tax Disclosures Issued December 2023	•Requires disclosure of income taxes paid disaggregated by 1) federal, state, and foreign taxes and 2) individual jurisdiction on the basis of a quantitative threshold of equal to or greater than 5 percent of total income taxes paid (net of refunds received). •Requires disclosure of the effective tax rate reconciliation by specific categories, at a minimum, with accompanying qualitative disclosures, and separate disclosure of reconciling items based on quantitative thresholds. •Requires categories within the effective tax rate reconciliation to be further disaggregated if quantitative thresholds are met.	•Required effective date: Annual financial statements for the year ending December 31, 2025.(a) •The guidance can be applied on a prospective basis with the option to apply the standard retrospectively. •The Firm is evaluating the potential impact on the Consolidated Financial ~~Statements.~~Statements disclosures, as well as the Firm’s planned date of adoption.

(a) Early adoption is permitted.

7781

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;~~geopolitical tensions and hostilities;

•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~~cyber attacks and other attempts by unauthorized parties to access information of the Firm or its customers or to disrupt the Firm’s systems; and

•The other risks and uncertainties detailed in Part I, Item 1A: Risk Factors in JPMorgan Chase’s ~~2022~~2023 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.

7882

JPMorgan Chase & Co.

Consolidated statements of income (unaudited)

Three months ended March 31,

(in millions, except per share data)

2023

2022

Revenue

Investment banking fees

1,649

2,008

Principal transactions

7,615

5,105

Principal transactions

Lending- and deposit-related fees

1,620

1,839

Asset management fees

3,465

3,652

Asset management fees

Commissions and other fees

1,695

1,710

Investment securities losses

(868)

(394)

Investment securities losses

Mortgage fees and related income

221

460

Card income

1,234

975

Card income

Other income

1,007

1,490

Noninterest revenue

17,638

16,845

Noninterest revenue

Interest income

37,004

15,496

Interest expense

16,293

1,624

Interest expense

Net interest income

20,711

13,872

Net interest income

Total net revenue

38,349

30,717

Provision for credit losses

2,275

1,463

Provision for credit losses

Noninterest expense

Compensation expense

11,676

10,787

Compensation expense

Occupancy expense

1,115

1,134

Technology, communications and equipment expense

2,184

2,360

Technology, communications and equipment expense

Professional and outside services

2,448

2,572

Marketing

1,045

920

Marketing

Other expense

1,639

1,418

Total noninterest expense

20,107

19,191

Total noninterest expense

Income before income tax expense

15,967

10,063

Income tax expense

3,345

1,781

Income tax expense

Net income

12,622

8,282

Net income applicable to common stockholders

12,193

7,845

Net income applicable to common stockholders

Net income per common share data

Basic earnings per share

4.11

2.64

Basic earnings per share

Diluted earnings per share

4.10

2.63

Weighted-average basic shares

2,968.5

2,977.0

Weighted-average basic shares

Weighted-average diluted shares

2,972.7

2,981.0

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

7983

JPMorgan Chase & Co.

Consolidated statements of comprehensive income (unaudited)

Three months ended March 31,

(in millions)

2023

2022

Net income

12,622

8,282

Net income

Other comprehensive income/(loss), after–tax

Unrealized gains/(losses) on investment securities

2,212

(7,453)

Unrealized gains/(losses) on investment securities

Translation adjustments, net of hedges

197

(62)

Fair value hedges

(21)

110

Fair value hedges

Cash flow hedges

798

(2,791)

Defined benefit pension and OPEB plans

(55)

Defined benefit pension and OPEB plans

DVA on fair value option elected liabilities

(208)

646

Total other comprehensive income/(loss), after–tax

2,923

(9,483)

Comprehensive income/(loss)

15,545

(1,201)

Total other comprehensive income/(loss), after–tax

Comprehensive income

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

8084

JPMorgan Chase & Co.

Consolidated balance sheets (unaudited)


(in millions, except share data)	(in millions, except share data)	March 31, 2023		December 31, 2022		(in millions, except share data)	March 31, 2024	December 31, 2023
Assets	Assets
Cash and due from banks	Cash and due from banks	$	25,098	$	27,697
Cash and due from banks
Cash and due from banks
Deposits with banks	Deposits with banks	520,902		539,537
Federal funds sold and securities purchased under resale agreements (included $309,336 and $311,883 at fair value)		317,111		315,592
Securities borrowed (included $68,514 and $70,041 at fair value)		195,917		185,369
Trading assets (included assets pledged of $122,046 and $93,687)		578,892		453,799
Available-for-sale securities (amortized cost of $204,671 and $216,188; included assets pledged of $13,739 and $9,158)		197,248		205,857
Federal funds sold and securities purchased under resale agreements (included $324,418 and $259,813 at fair value)
Securities borrowed (included $84,258 and $70,086 at fair value)
Trading assets (included assets pledged of $180,196 and $128,994)
Available-for-sale securities (amortized cost of $239,813 and $205,456; included assets pledged of $10,806 and $9,219)
Held-to-maturity securities	Held-to-maturity securities	412,827		425,305
Investment securities, net of allowance for credit losses	Investment securities, net of allowance for credit losses	610,075		631,162
Loans (included $38,546 and $42,079 at fair value)		1,128,896		1,135,647
Loans (included $39,046 and $38,851 at fair value)
Allowance for loan losses	Allowance for loan losses	(20,053)		(19,726)
Loans, net of allowance for loan losses	Loans, net of allowance for loan losses	1,108,843		1,115,921
Accrued interest and accounts receivable	Accrued interest and accounts receivable	115,316		125,189
Premises and equipment	Premises and equipment	28,266		27,734
Goodwill, MSRs and other intangible assets	Goodwill, MSRs and other intangible assets	62,090		60,859
Other assets (included $14,434 and $14,921 at fair value and assets pledged of $7,164 and $7,998)		181,795		182,884
Other assets (included $15,645 and $12,306 at fair value and assets pledged of $9,811 and $6,764)
Total assets(a)	Total assets(a)	$	3,744,305	$	3,665,743
Liabilities	Liabilities
Deposits (included $41,580 and $28,620 at fair value)		$	2,377,253	$	2,340,179
Federal funds purchased and securities loaned or sold under repurchase agreements (included $192,290 and $151,999 at fair value)		246,396		202,613
Short-term borrowings (included $18,074 and $15,792 at fair value)		42,241		44,027
Deposits (included $80,578 and $78,384 at fair value)
Deposits (included $80,578 and $78,384 at fair value)
Deposits (included $80,578 and $78,384 at fair value)
Federal funds purchased and securities loaned or sold under repurchase agreements (included $264,554 and $169,003 at fair value)
Short-term borrowings (included $22,856 and $20,042 at fair value)
Trading liabilities	Trading liabilities	189,864		177,976
Accounts payable and other liabilities (included $6,697 and $7,038 at fair value)		275,077		300,141
Beneficial interests issued by consolidated VIEs (included $1 and $5 at fair value)		14,903		12,610
Long-term debt (included $76,185 and $72,281 at fair value)		295,489		295,865
Accounts payable and other liabilities (included $8,917 and $5,637 at fair value)
Beneficial interests issued by consolidated VIEs (included $1 and $1 at fair value)
Long-term debt (included $92,730 and $87,924 at fair value)
Total liabilities(a)	Total liabilities(a)	3,441,223		3,373,411
Commitments and contingencies (refer to Notes 22, 23 and 24)	Commitments and contingencies (refer to Notes 22, 23 and 24)					Commitments and contingencies (refer to Notes 22, 23 and 24)
Stockholders’ equity	Stockholders’ equity
Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,740,375 and 2,740,375 shares)		27,404		27,404
Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,990,375 and 2,740,375 shares)
Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,990,375 and 2,740,375 shares)
Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,990,375 and 2,740,375 shares)
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
Additional paid-in capital	Additional paid-in capital	89,155		89,044
Retained earnings	Retained earnings	306,208		296,456
Accumulated other comprehensive losses	Accumulated other comprehensive losses	(14,418)		(17,341)
Treasury stock, at cost (1,182,645,386 and 1,170,676,094 shares)		(109,372)		(107,336)
Treasury stock, at cost (1,233,266,016 and 1,228,275,301 shares)
Total stockholders’ equity	Total stockholders’ equity	303,082		292,332
Total liabilities and stockholders’ equity	Total liabilities and stockholders’ equity	$	3,744,305	$	3,665,743

(a)The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at March 31, ~~2023,~~2024 and December 31, ~~2022.~~2023. 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 13 for a further discussion.


(in millions)	(in millions)	March 31, 2023		December 31, 2022		(in millions)	March 31, 2024	December 31, 2023
Assets	Assets
Trading assets
Trading assets
Trading assets	Trading assets	$	2,033	$	2,151
Loans	Loans	33,242		34,411
All other assets	All other assets	533		550
Total assets	Total assets	$	35,808	$	37,112
Liabilities	Liabilities
Beneficial interests issued by consolidated VIEs	Beneficial interests issued by consolidated VIEs	$	14,903	$	12,610
Beneficial interests issued by consolidated VIEs
Beneficial interests issued by consolidated VIEs
All other liabilities	All other liabilities	255		279
Total liabilities	Total liabilities	$	15,158	$	12,889

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

8185

JPMorgan Chase & Co.

Consolidated statements of changes in stockholders’ equity (unaudited)

Three months ended March 31,
(in millions, except per share data) 2023 2022
Preferred stock
Balance at the beginning of the period $ 27,404 $ 34,838
Issuance — —
Redemption — (2,000)
Balance at March 31 27,404 32,838
Common stock
Balance at the beginning and end of the period 4,105 4,105
Additional paid-in capital
Balance at the beginning of the period 89,044 88,415
Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects 111 (155)
Balance at March 31 89,155 88,260
Retained earnings
Balance at the beginning of the period 296,456 272,268
Cumulative effect of change in accounting principles 449 —
Net income 12,622 8,282
Dividends declared:
Preferred stock (356) (397)
Common stock ($1.00 and $1.00 per share, respectively)
(2,963) (2,976)
Balance at March 31 306,208 277,177
Accumulated other comprehensive income/(loss)
Balance at the beginning of the period (17,341) (84)
Other comprehensive income/(loss), after-tax 2,923 (9,483)
Balance at March 31 (14,418) (9,567)
Treasury stock, at cost
Balance at the beginning of the period (107,336) (105,415)
Repurchase (2,955) (2,500)
Reissuance 919 1,001
Balance at March 31 (109,372) (106,914)
Total stockholders’ equity $ 303,082 $ 285,899

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.


	Three months ended March 31,
(in millions, except per share data)	2024		2023
Preferred stock
Balance at the beginning of the period	$	27,404	$	27,404
Issuance	2,496		—
Redemption	—		—
Balance at March 31	29,900		27,404

Common stock
Balance at the beginning and end of the period	4,105		4,105

Additional paid-in capital
Balance at the beginning of the period	90,128		89,044
Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects	(225)		111

Balance at March 31	89,903		89,155

Retained earnings
Balance at the beginning of the period	332,901		296,456
Cumulative effect of change in accounting principles	(161)		449
Net income	13,419		12,622
Dividends declared:
Preferred stock	(397)		(356)
Common stock ($1.15 and $1.00 per share, respectively)	(3,348)		(2,963)
Balance at March 31	342,414		306,208

Accumulated other comprehensive income/(loss)
Balance at the beginning of the period	(10,443)		(17,341)
Other comprehensive income/(loss), after-tax	(1,196)		2,923
Balance at March 31	(11,639)		(14,418)

Treasury stock, at cost
Balance at the beginning of the period	(116,217)		(107,336)
Repurchase	(2,858)		(2,955)
Reissuance	1,029		919
Balance at March 31	(118,046)		(109,372)

Total stockholders’ equity	$	336,637	$	303,082

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

8286

JPMorgan Chase & Co.

Consolidated statements of cash flows (unaudited)


		Three months ended March 31,
	Three months ended March 31,								Three months ended March 31,
(in millions)	(in millions)	2023		2022		(in millions)	2024	2023
Operating activities	Operating activities
Net income	Net income	$	12,622	$	8,282
Net income
Net income
Adjustments to reconcile net income to net cash used in operating activities:	Adjustments to reconcile net income to net cash used in operating activities:
Provision for credit losses
Provision for credit losses
Provision for credit losses	Provision for credit losses	2,275		1,463
Depreciation and amortization	Depreciation and amortization	1,649		1,820
Deferred tax (benefit)/expense	Deferred tax (benefit)/expense	(606)		(730)
Bargain purchase gain associated with the First Republic acquisition
Other	Other	1,738		1,200
Originations and purchases of loans held-for-sale	Originations and purchases of loans held-for-sale	(22,009)		(66,262)
Proceeds from sales, securitizations and paydowns of loans held-for-sale	Proceeds from sales, securitizations and paydowns of loans held-for-sale	20,873		75,558
Net change in:	Net change in:
Trading assets
Trading assets
Trading assets	Trading assets	(117,067)		(91,213)
Securities borrowed	Securities borrowed	(10,460)		(18,979)
Accrued interest and accounts receivable	Accrued interest and accounts receivable	9,823		(49,719)
Other assets	Other assets	14,129		1,319
Trading liabilities	Trading liabilities	3,200		29,993
Accounts payable and other liabilities	Accounts payable and other liabilities	(27,847)		64,738
Other operating adjustments	Other operating adjustments	439		613
Net cash (used in) operating activities	Net cash (used in) operating activities	(111,241)		(41,917)
Investing activities	Investing activities
Net change in:	Net change in:
Net change in:
Net change in:
Federal funds sold and securities purchased under resale agreements
Federal funds sold and securities purchased under resale agreements
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	(1,317)		(40,407)
Held-to-maturity securities:	Held-to-maturity securities:
Proceeds from paydowns and maturities	Proceeds from paydowns and maturities	9,258		9,512
Proceeds from paydowns and maturities
Proceeds from paydowns and maturities
Purchases	Purchases	(3,621)		(13,223)
Available-for-sale securities:	Available-for-sale securities:
Proceeds from paydowns and maturities
Proceeds from paydowns and maturities
Proceeds from paydowns and maturities	Proceeds from paydowns and maturities	11,018		11,291
Proceeds from sales	Proceeds from sales	34,554		16,971
Purchases	Purchases	(26,490)		(45,357)
Proceeds from sales and securitizations of loans held-for-investment	Proceeds from sales and securitizations of loans held-for-investment	9,230		9,987
Other changes in loans, net	Other changes in loans, net	(2,257)		(18,185)

All other investing activities, net

All other investing activities, net

All other investing activities, net	All other investing activities, net	(6,581)		(3,197)
Net cash provided by/(used in) investing activities	Net cash provided by/(used in) investing activities	23,794		(72,608)
Financing activities	Financing activities
Net change in:	Net change in:
Net change in:
Net change in:
Deposits
Deposits
Deposits	Deposits	33,683		99,691
Federal funds purchased and securities loaned or sold under repurchase agreements	Federal funds purchased and securities loaned or sold under repurchase agreements	43,722		29,600
Short-term borrowings	Short-term borrowings	(1,876)		4,300
Beneficial interests issued by consolidated VIEs	Beneficial interests issued by consolidated VIEs	3,001		52
Proceeds from long-term borrowings	Proceeds from long-term borrowings	8,750		20,651
Payments of long-term borrowings	Payments of long-term borrowings	(16,171)		(13,094)
Proceeds from issuance of preferred stock

Redemption of preferred stock		—		(2,000)
Treasury stock repurchased
Treasury stock repurchased
Treasury stock repurchased	Treasury stock repurchased	(2,690)		(2,455)
Dividends paid	Dividends paid	(3,374)		(3,430)
All other financing activities, net	All other financing activities, net	(488)		(543)
Net cash provided by financing activities	Net cash provided by financing activities	64,557		132,772
Effect of exchange rate changes on cash and due from banks and deposits with banks	Effect of exchange rate changes on cash and due from banks and deposits with banks	1,656		(4,549)
Net increase/(decrease) in cash and due from banks and deposits with banks		(21,234)		13,698
Net decrease in cash and due from banks and deposits with banks
Cash and due from banks and deposits with banks at the beginning of the period	Cash and due from banks and deposits with banks at the beginning of the period	567,234		740,834
Cash and due from banks and deposits with banks at the end of the period	Cash and due from banks and deposits with banks at the end of the period	$	546,000	$	754,532
Cash interest paid	Cash interest paid	$	15,287	$	1,088
Cash income taxes paid, net	Cash income taxes paid, net	1,382		705

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

8387

Refer to the Glossary of Terms and Acronyms on pages ~~168-173~~176-181 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 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. Accordingly, reporting classification and internal risk rating profiles in the wholesale portfolio may change in future periods. Refer to Note 2526 for ~~a further discussion of~~additional information on the ~~Firm’s business segments.~~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 ~~2022~~2023 Form 10-K.

~~Certain amounts reported in prior periods have been revised to conform with the current presentation.~~

Consolidation

The Consolidated Financial Statements include the accounts of JPMorgan Chase and other entities in which the Firm has a controlling financial interest. All material intercompany balances and transactions have been eliminated.

Assets held for clients in an agency or fiduciary capacity by the Firm are not assets of JPMorgan Chase and are not included on the Consolidated balance sheets.

The Firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity.

Refer to Notes 1 and 14 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a further description of JPMorgan Chase’s accounting policies regarding consolidation.

Offsetting assets and liabilities

U.S. GAAP permits entities to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net basis on the Consolidated balance sheets when a legally enforceable master netting agreement exists. U.S. GAAP also permits securities financing ~~activities~~balances to be presented on a net basis when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances where it has determined that the specified conditions are met. Refer to Note 1 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for further information on offsetting assets and liabilities.

Accounting ~~standards~~standard adopted January 1, ~~2023~~2024

~~Derivatives~~Equity Method and ~~Hedging: Fair Value Hedging – Portfolio Layer~~Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method

The guidance expanded the types of tax-oriented investments, beyond affordable housing tax credit investments, that the Firm can elect on a program by program basis, to be accounted for using the proportional amortization method. This method requires the cost of eligible investments, within an elected program, to be amortized in proportion to the tax benefits received with the resulting amortization reported directly in income tax expense, which aligns with the associated tax credits and other tax benefits. Eligible investments must meet certain criteria, including that substantially all of the return is from income tax credits and other income tax benefits.

This guidance was adopted on January 1, 2024 under the modified retrospective method. The adoption of this guidance ~~expanded~~resulted in a change to the ~~ability to hedge a portfolio of prepayable assets to allow more~~classification and timing of the ~~portfolio to be hedged. Non-prepayable assets can also be included in the same portfolio, thus increasing the size~~amortization associated with certain of the ~~portfolio~~Firm's alternative energy tax-oriented investments. As a result of the adoption, the amortization of these investments that was previously recognized in other income is now being recognized in income tax expense. The change in accounting resulted in a decrease to retained earnings of $161 million and increased the Firm’s income tax expense and the ~~amount available to be hedged. This guidance also clarified the types of derivatives that can be used as hedges,~~effective tax rate by approximately $450 million and ~~the balance sheet presentation and disclosure requirements~~two percentage points, respectively, for the ~~hedge accounting adjustments. As permitted by the guidance, the Firm elected~~three months ended March 31, 2024, with no material impact 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.~~net income.

~~Refer to Note 4 and Note 9 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-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 12 for a description of the portfolio-based allowance approach and the asset-specific allowance approach.

8488

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 additional disclosure for ~~loan modifications to borrowers experiencing financial difficulty consisting of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or~~all investments that generate income tax credits and other income tax benefits from a ~~combination of these modifications. The~~tax-oriented investment program for which the Firm has ~~defined these types of modifications as financial difficulty modifications ("FDMs"). As a result of~~elected to apply 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. Thisproportional amortization method. The guidance also requires ~~disclosure~~a reevaluation of ~~current period gross charge-offs by vintage origination year.~~eligible investments when significant modifications or events occur that result in a change in the nature of the investment or a change in the Firm's relationship with the underlying project.

Refer to Note 115 and Note 13 for ~~further~~additional information.

8589

Note 2 – Fair value measurement

Refer to Note 2 of JPMorgan Chase’s ~~2022~~2023 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.

8690

The following table presents the assets and liabilities reported at fair value as of March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, by major product category and fair value hierarchy.


Assets and liabilities measured at fair value on a recurring basis	Assets and liabilities measured at fair value on a recurring basis
		Fair value hierarchy
		Fair value hierarchy
		Fair value hierarchy
		Fair value hierarchy						Derivative netting adjustments(f)
March 31, 2024 (in millions)

March 31, 2023 (in millions)		Level 1		Level 2		Level 3					Derivative netting adjustments(f)			Total fair value
March 31, 2024 (in millions)

March 31, 2024 (in millions)																Level 1	Level 2	Level 3	Total fair value
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	$	—	$	309,336	$	—			$			—		$	309,336
Securities borrowed	Securities borrowed	—		68,514		—		—			68,514
Trading assets:	Trading assets:
Debt instruments:	Debt instruments:
Debt instruments:
Debt instruments:
Mortgage-backed securities:	Mortgage-backed securities:
Mortgage-backed securities:
Mortgage-backed securities:
U.S. GSEs and government agencies(a)
U.S. GSEs and government agencies(a)
U.S. GSEs and government agencies(a)	U.S. GSEs and government agencies(a)	—		77,406		757		—			78,163
Residential – nonagency	Residential – nonagency	—		2,961		5		—			2,966
Commercial – nonagency	Commercial – nonagency	—		1,221		10		—			1,231
Total mortgage-backed securities	Total mortgage-backed securities	—		81,588		772		—			82,360
U.S. Treasury, GSEs and government agencies(a)	U.S. Treasury, GSEs and government agencies(a)	110,866		8,858		—		—			119,724
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	—		6,049		6		—			6,055
Certificates of deposit, bankers’ acceptances and commercial paper	Certificates of deposit, bankers’ acceptances and commercial paper	—		1,556		—		—			1,556
Non-U.S. government debt securities	Non-U.S. government debt securities	31,282		59,694		169		—			91,145
Corporate debt securities	Corporate debt securities	—		32,414		538		—			32,952
Loans	Loans	—		8,365		926		—			9,291
Asset-backed securities	Asset-backed securities	—		2,689		7		—			2,696
Total debt instruments	Total debt instruments	142,148		201,213		2,418		—			345,779
Equity securities	Equity securities	138,312		1,561		581		—			140,454
Physical commodities(b)	Physical commodities(b)	4,434		11,525		—		—			15,959
Other	Other	—		17,246		140		—			17,386
Total debt and equity instruments(c)	Total debt and equity instruments(c)	284,894		231,545		3,139		—			519,578
Derivative receivables:	Derivative receivables:
Interest rate	Interest rate	2,702		278,722		4,115		(260,511)			25,028
Interest rate
Interest rate
Credit	Credit	—		11,070		977		(11,054)			993
Foreign exchange	Foreign exchange	163		184,299		1,218		(166,455)			19,225
Equity	Equity	—		57,478		3,979		(53,729)			7,728
Commodity	Commodity	—		19,218		441		(13,359)			6,300
Total derivative receivables	Total derivative receivables	2,865		550,787		10,730		(505,108)			59,274
Total trading assets(d)	Total trading assets(d)	287,759		782,332		13,869		(505,108)			578,852
Available-for-sale securities:	Available-for-sale securities:
Mortgage-backed securities:	Mortgage-backed securities:
Mortgage-backed securities:
Mortgage-backed securities:
U.S. GSEs and government agencies(a)
U.S. GSEs and government agencies(a)
U.S. GSEs and government agencies(a)	U.S. GSEs and government agencies(a)	—		67,305		—		—			67,305
Residential – nonagency	Residential – nonagency	—		4,471		—		—			4,471
Commercial – nonagency	Commercial – nonagency	—		1,947		—		—			1,947
Total mortgage-backed securities	Total mortgage-backed securities	—		73,723		—		—			73,723
U.S. Treasury and government agencies	U.S. Treasury and government agencies	81,639		—		—		—			81,639
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	—		13,529		—		—			13,529
Non-U.S. government debt securities	Non-U.S. government debt securities	10,581		8,849		—		—			19,430
Corporate debt securities	Corporate debt securities	—		114		250		—			364
Asset-backed securities:	Asset-backed securities:
Collateralized loan obligations	Collateralized loan obligations	—		5,520		—		—			5,520
Other		—		3,043		—		—			3,043
Collateralized loan obligations
Collateralized loan obligations
Other(a)
Total available-for-sale securities	Total available-for-sale securities	92,220		104,778		250		—			197,248
Loans(e)	Loans(e)	—		37,067		1,479		—			38,546
Mortgage servicing rights	Mortgage servicing rights	—		—		7,755		—			7,755
Other assets(d)	Other assets(d)	6,240		6,852		406		—			13,498
Total assets measured at fair value on a recurring basis	Total assets measured at fair value on a recurring basis	$	386,219	$	1,308,879	$	23,759	$	(505,108)		$	1,213,749
Deposits	Deposits	$	—	$	39,372	$	2,208	$	—		$	41,580
Federal funds purchased and securities loaned or sold under repurchase agreements	Federal funds purchased and securities loaned or sold under repurchase agreements	—		192,290		—		—			192,290
Short-term borrowings	Short-term borrowings	—		16,664		1,410		—			18,074
Trading liabilities:	Trading liabilities:
Debt and equity instruments(c)	Debt and equity instruments(c)	113,813		31,277		63		—			145,153
Debt and equity instruments(c)
Debt and equity instruments(c)
Derivative payables:	Derivative payables:
Interest rate
Interest rate
Interest rate	Interest rate	4,082		267,285		3,361		(261,428)			13,300
Credit	Credit	—		11,903		525		(11,576)			852
Foreign exchange	Foreign exchange	144		186,805		673		(174,408)			13,214
Equity	Equity	—		61,681		4,864		(56,697)			9,848
Commodity	Commodity	—		20,034		728		(13,265)			7,497
Total derivative payables	Total derivative payables	4,226		547,708		10,151		(517,374)			44,711
Total trading liabilities	Total trading liabilities	118,039		578,985		10,214		(517,374)			189,864
Accounts payable and other liabilities	Accounts payable and other liabilities	4,403		2,238		56		—			6,697
Beneficial interests issued by consolidated VIEs	Beneficial interests issued by consolidated VIEs	—		1		—		—			1
Long-term debt	Long-term debt	—		50,958		25,227		—			76,185
Total liabilities measured at fair value on a recurring basis	Total liabilities measured at fair value on a recurring basis	$	122,442	$	880,508	$	39,115	$	(517,374)		$	524,691

8791


	Fair value hierarchy
		Fair value hierarchy						Derivative netting adjustments(f)
December 31, 2023 (in millions)

December 31, 2022 (in millions)		Level 1		Level 2		Level 3				Derivative netting adjustments(f)				Total fair value
December 31, 2023 (in millions)

December 31, 2023 (in millions)															Level 1			Level 2	Level 3	Total fair value
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	$	—	$	311,883	$	—				$	—				$	311,883
Securities borrowed	Securities borrowed	—		70,041		—		—					70,041
Trading assets:	Trading assets:
Debt instruments:	Debt instruments:
Debt instruments:
Debt instruments:
Mortgage-backed securities:	Mortgage-backed securities:
Mortgage-backed securities:
Mortgage-backed securities:
U.S. GSEs and government agencies(a)
U.S. GSEs and government agencies(a)
U.S. GSEs and government agencies(a)	U.S. GSEs and government agencies(a)	—		68,162		759		—			68,921
Residential – nonagency	Residential – nonagency	—		2,498		5		—			2,503
Commercial – nonagency	Commercial – nonagency	—		1,448		7		—			1,455
Total mortgage-backed securities	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)	61,191		8,546		—		—			69,737
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	—		6,608		7		—			6,615
Certificates of deposit, bankers’ acceptances and commercial paper	Certificates of deposit, bankers’ acceptances and commercial paper	—		2,009		—		—			2,009
Non-U.S. government debt securities	Non-U.S. government debt securities	18,213		48,429		155		—			66,797
Corporate debt securities	Corporate debt securities	—		25,626		463		—			26,089
Loans	Loans	—		5,744		759		—			6,503
Asset-backed securities	Asset-backed securities	—		2,536		23		—			2,559
Total debt instruments	Total debt instruments	79,404		171,606		2,178		—			253,188
Equity securities	Equity securities	82,483		2,060		665		—			85,208
Physical commodities(b)	Physical commodities(b)	9,595		16,673		2		—			26,270
Other	Other	—		18,146		64		—			18,210
Total debt and equity instruments(c)	Total debt and equity instruments(c)	171,482		208,485		2,909		—			382,876
Derivative receivables:	Derivative receivables:
Interest rate	Interest rate	3,390		292,956		4,069		(271,996)			28,419
Interest rate
Interest rate
Credit	Credit	—		9,722		607		(9,239)			1,090
Foreign exchange	Foreign exchange	169		240,207		1,203		(218,214)			23,365
Equity	Equity	—		57,485		4,428		(52,774)			9,139
Commodity	Commodity	—		24,982		375		(16,490)			8,867
Total derivative receivables	Total derivative receivables	3,559		625,352		10,682		(568,713)			70,880
Total trading assets(d)	Total trading assets(d)	175,041		833,837		13,591		(568,713)			453,756
Available-for-sale securities:	Available-for-sale securities:
Mortgage-backed securities:	Mortgage-backed securities:
Mortgage-backed securities:
Mortgage-backed securities:
U.S. GSEs and government agencies(a)
U.S. GSEs and government agencies(a)
U.S. GSEs and government agencies(a)	U.S. GSEs and government agencies(a)	3		71,500		—		—			71,503
Residential – nonagency	Residential – nonagency	—		4,620		—		—			4,620
Commercial – nonagency	Commercial – nonagency	—		1,958		—		—			1,958
Total mortgage-backed securities	Total mortgage-backed securities	3		78,078		—		—			78,081
U.S. Treasury and government agencies	U.S. Treasury and government agencies	92,060		—		—		—			92,060
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	—		6,786		—		—			6,786
Non-U.S. government debt securities	Non-U.S. government debt securities	10,591		9,105		—		—			19,696
Corporate debt securities	Corporate debt securities	—		118		239		—			357
Asset-backed securities:	Asset-backed securities:
Collateralized loan obligations	Collateralized loan obligations	—		5,792		—		—			5,792
Other		—		3,085		—		—			3,085
Collateralized loan obligations
Collateralized loan obligations
Other(a)
Total available-for-sale securities	Total available-for-sale securities	102,654		102,964		239		—			205,857
Loans(e)	Loans(e)	—		40,661		1,418		—			42,079
Mortgage servicing rights	Mortgage servicing rights	—		—		7,973		—			7,973
Other assets(d)	Other assets(d)	7,544		6,065		405		—			14,014
Total assets measured at fair value on a recurring basis	Total assets measured at fair value on a recurring basis	$	285,239	$	1,365,451	$	23,626	$	(568,713)		$	1,105,603
Deposits	Deposits	$	—	$	26,458	$	2,162	$	—		$	28,620
Federal funds purchased and securities loaned or sold under repurchase agreements	Federal funds purchased and securities loaned or sold under repurchase agreements	—		151,999		—		—			151,999
Short-term borrowings	Short-term borrowings	—		14,391		1,401		—			15,792
Trading liabilities:	Trading liabilities:
Debt and equity instruments(c)	Debt and equity instruments(c)	98,719		28,032		84		—			126,835
Debt and equity instruments(c)
Debt and equity instruments(c)
Derivative payables:	Derivative payables:
Interest rate
Interest rate
Interest rate	Interest rate	2,643		284,280		3,368		(274,321)			15,970
Credit	Credit	—		9,377		594		(9,217)			754
Foreign exchange	Foreign exchange	160		250,647		714		(232,665)			18,856
Equity	Equity	—		57,649		4,812		(53,657)			8,804
Commodity	Commodity	—		22,748		521		(16,512)			6,757
Total derivative payables	Total derivative payables	2,803		624,701		10,009		(586,372)			51,141
Total trading liabilities	Total trading liabilities	101,522		652,733		10,093		(586,372)			177,976
Accounts payable and other liabilities	Accounts payable and other liabilities	5,702		1,283		53		—			7,038
Beneficial interests issued by consolidated VIEs	Beneficial interests issued by consolidated VIEs	—		5		—		—			5
Long-term debt	Long-term debt	—		48,189		24,092		—			72,281
Total liabilities measured at fair value on a recurring basis	Total liabilities measured at fair value on a recurring basis	$	107,224	$	895,058	$	37,801	$	(586,372)		$	453,711

(a)At March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, included total U.S. GSE obligations of ~~$78.9~~$103.8 billion and ~~$73.8~~$78.5 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 4 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.

8892

(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 March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were ~~$976 million~~$1.1 billion and ~~$950 million,~~$1.0 billion, respectively. Included in these balances at March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, were trading assets of ~~$40~~$47 million and ~~$43~~$42 million, respectively, and other assets of ~~$936 million~~$1.0 billion and ~~$907~~$984 million, respectively.

(e)At both March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, included $10.2 billion ~~and $9.7 billion, respectively,~~ of residential first-lien mortgages and ~~$6.4~~$6.0 billion ~~and $6.8 billion, respectively,~~ of commercial first-lien mortgages. Residential mortgage loans include conforming mortgage loans originated with the intent to sell to U.S. GSEs and government agencies of ~~$3.6~~$3.4 billion and ~~$2.4~~$2.9 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 ~~2022~~2023 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 and arithmetic 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.

8993


Level 3 inputs(a)	Level 3 inputs(a)
March 31, 2023
March 31, 2024
March 31, 2024
March 31, 2024
Product/Instrument
Product/Instrument
Product/Instrument	Product/Instrument	Fair value (in millions)		Principal valuation technique		Unobservable inputs(g)	Range of input values		Average(i)		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)	$	1,695	Discounted cash flows		Yield	4%	30%		7%	Residential mortgage-backed securities and loans(b)	$	1,599	Discounted cash flows				Discounted cash flows			Yield			0%								68%								7%
						Prepayment speed	3%	12%		9%															Prepayment speed			3%								12%							9%
						Conditional default rate	0%	5%		0%
						Loss severity	0%	110%		3%
					Conditional default rate																														Conditional default rate			0%							6%	0%
					Loss severity																														Loss severity			0%							110%	3%
Commercial mortgage-backed securities and loans(c)	Commercial mortgage-backed securities and loans(c)	432		Market comparables		Price	$0	$99		$80	Commercial mortgage-backed securities and loans(c)	1,387		Market comparables				Market comparables			Price			$0								$90								$80
Corporate debt securities	Corporate debt securities	788		Market comparables		Price	$0	$243		$96	Corporate debt securities	570		Market comparables				Market comparables			Price			$0								$243								$100
Loans(d)	Loans(d)	1,050		Market comparables		Price	$0	$356		$84	Loans(d)	1,195		Market comparables				Market comparables			Price			$0								$111								$80
Non-U.S. government debt securities	Non-U.S. government debt securities	169		Market comparables		Price	$6	$103		$86	Non-U.S. government debt securities	173		Market comparables				Market comparables			Price			$2								$108								$92
Net interest rate derivatives	Net interest rate derivatives	775		Option pricing		Interest rate volatility	24 bps	633 bps		132 bps	Net interest rate derivatives	798		Option pricing				Option pricing			Interest rate volatility			25bps								420bps								116bps
						Interest rate spread volatility	33 bps	46 bps		36 bps
						Bermudan switch value	0%	52%		20%
						Interest rate correlation	(89)%	89%		15%
						IR-FX correlation	(35)%	60%		6%
		(21)		Discounted cash flows		Prepayment speed	0%	21%		7%
					Interest rate spread volatility																														Interest rate spread volatility			37bps							77bps	64bps
					Bermudan switch value																														Bermudan switch value			0%							52%	20%
					Interest rate correlation																														Interest rate correlation			(82)%							90%	19%
					IR-FX correlation																														IR-FX correlation			(35)%							60%	4%
	2													2						Discounted cash flows			Prepayment speed			0%								20%								6%
Net credit derivatives	Net credit derivatives	430		Discounted cash flows		Credit correlation	40%	65%		49%	Net credit derivatives	230		Discounted cash flows				Discounted cash flows			Credit correlation			24%								68%								46%
						Credit spread	0 bps	9,828 bps		370 bps
						Recovery rate	20%	90%		41%
		22		Market comparables		Price	$3	$115		$80
					Credit spread																														Credit spread			0bps							2,999bps	263bps
					Recovery rate																														Recovery rate			10%							90%	49%
	30													30						Market comparables			Price			$0								$115								$72
Net foreign exchange derivatives	Net foreign exchange derivatives	627		Option pricing		IR-FX correlation	(40)%	60%		20%	Net foreign exchange derivatives	83		Option pricing				Option pricing			IR-FX correlation			(40)%								60%								22%
		(82)		Discounted cash flows		Prepayment speed	11%			11%
						Interest rate curve	2%	18%		7%
	(59)													(59)						Discounted cash flows			Prepayment speed			11%													11%
					Interest rate curve																														Interest rate curve			2%							17%	7%
Net equity derivatives	Net equity derivatives	(885)		Option pricing		Forward equity price(h)	78%	138%		101%	Net equity derivatives	(2,781)		Option pricing				Option pricing			Forward equity price(h)			76%								152%								101%
						Equity volatility	5%	139%		32%
						Equity correlation	17%	100%		58%
						Equity-FX correlation	(86)%	60%		(28)%
						Equity-IR correlation	5%	35%		19%
					Equity volatility																														Equity volatility			4%							137%	32%
					Equity correlation																														Equity correlation			1%							100%	57%
					Equity-FX correlation																														Equity-FX correlation			(88)%							65%	(31)%
					Equity-IR correlation																														Equity-IR correlation			(40)%							25%	3%
Net commodity derivatives	Net commodity derivatives	(287)		Option pricing		Oil commodity forward	$104 / BBL	$286 / BBL		$195 / BBL	Net commodity derivatives	(503)		Option pricing				Option pricing			Oil commodity forward			$91 / BBL								$277 / BBL								$184 / BBL
						Natural gas commodity forward	$0 / MMBTU	$9 / MMBTU		$5 / MMBTU
						Commodity volatility	4%	127%		66%
						Commodity correlation	(30)%	77%		23%
					Natural gas commodity forward																														Natural gas commodity forward			$0 / MMBTU							$9 / MMBTU	$5 / MMBTU
					Commodity volatility																														Commodity volatility			15%							24%	19%
					Commodity correlation																														Commodity correlation			(35)%							96%	31%
MSRs	MSRs	7,755		Discounted cash flows		Refer to Note 14
Long-term debt, short-term borrowings, and deposits(e)	Long-term debt, short-term borrowings, and deposits(e)	27,517		Option pricing		Interest rate volatility	24 bps	633 bps		132 bps
						Bermudan switch value	0%	52%		20%
						Interest rate correlation	(89)%	89%		15%	Long-term debt, short-term borrowings, and deposits(e)		31,734		Option pricing				Option pricing			Interest rate volatility			25bps								420bps								116bps
						IR-FX correlation	(35)%	60%		6%																Bermudan switch value			0%								52%							20%
						Equity correlation	17%	100%		58%																Interest rate correlation			(82)%								90%							19%
						Equity-FX correlation	(86)%	60%		(28)%																IR-FX correlation			(35)%								60%							4%
						Equity-IR correlation	5%	35%		19%																Equity volatility			1%								134%							26%
		1,328		Discounted cash flows		Credit correlation	40%	65%		49%
Long-term debt, short-term borrowings, and deposits(e)																										Equity correlation			1%								100%							57%
																						Equity-FX correlation			(88)%								65%								(31)%
																Equity-IR correlation	Long-term debt, short-term borrowings, and deposits(e)										Equity-IR correlation			(40)%								25%							3%
													1,205							Discounted cash flows			Credit correlation			24%								68%								46%
																				Credit spread			1bps								2,501bps								80bps
																				Recovery rate			20%								60%								39%
																				Yield			5%								20%								12%
																				Loss severity			0%								100%								50%
Other level 3 assets and liabilities, net(f)	Other level 3 assets and liabilities, net(f)	1,021

(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 ~~$732~~$729 million, nonagency securities of $5$8 million and non-trading loans of ~~$958~~$862 million.

(c)Comprises ~~U.S. GSE and government agency securities of $25 million,~~ nonagency securities of ~~$10~~$12 million, trading loans of ~~$72~~$65 million and non-trading loans of ~~$325 million.~~$1.3 billion.

(d)Comprises trading loans of ~~$854~~$466 million and non-trading loans of ~~$196~~$729 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 ~~$796~~$783 million including ~~$215~~$580 million in Other 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.

9094

Changes in and ranges of unobservable inputs

Refer to Note 2 of JPMorgan Chase’s ~~2022~~2023 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 months ended March 31, ~~2023~~2024 and ~~2022.~~2023. 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~~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.


	Fair value measurements using significant unobservable inputs
Three months ended March 31, 2024 (in millions)	Fair value at Jan 1, 2024		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at March 31, 2024			Change in unrealized gains/(losses) related to financial instruments held at March 31, 2024
						Purchases(g)		Sales				Settlements(h)
Assets:(a)
Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	—	$	—		$	—	$	—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies	758		1			1		(17)				(21)		7		—			729		1
Residential – nonagency	5		(1)			—		—				—		4		—			8		(1)
Commercial – nonagency	12		(1)			1		—				—		—		—			12		(1)
Total mortgage-backed securities	775		(1)			2		(17)				(21)		11		—			749		(1)
Obligations of U.S. states and municipalities	10		—			—		—				(2)		—		(1)			7		—
Non-U.S. government debt securities	179		5			51		(67)				—		7		(2)			173		(4)
Corporate debt securities	484		11			214		(95)				(30)		4		(18)			570		12
Loans	684		5			143		(199)				(31)		62		(133)			531		5
Asset-backed securities	6		—			1		—				—		7		—			14		—
Total debt instruments	2,138		20			411		(378)				(84)		91		(154)			2,044		12
Equity securities	127		6			81		(30)				—		24		(5)			203		7
Physical commodities	7		(2)			—		—				(3)		—		—			2		(2)
Other	101		11			27		—				(32)		—		—			107		4
Total trading assets – debt and equity instruments	2,373		35		(c)	519		(408)				(119)		115		(159)			2,356		21		(c)
Net derivative receivables:(b)
Interest rate	502		(328)			53		(43)				484		129		3			800		(399)
Credit	265		(25)			—		(15)				14		(6)		27			260		87
Foreign exchange	62		3			34		(38)				(122)		(53)		138			24		67
Equity	(2,402)		(652)			321		(608)				331		(49)		278			(2,781)		(442)
Commodity	(279)		(176)			10		(68)				7		2		1			(503)		(182)
Total net derivative receivables	(1,852)		(1,178)		(c)	418		(772)				714		23		447			(2,200)		(869)		(c)
Available-for-sale securities:
Corporate debt securities	—		—			—		—				—		—		—			—		—
Total available-for-sale securities	—		—			—		—				—		—		—			—		—
Loans	3,079		37		(c)	60		(22)				(392)		303		(164)			2,901		35		(c)
Mortgage servicing rights	8,522		278		(e)	60		5				(260)		—		—			8,605		278		(e)
Other assets	758		29		(c)	47		(9)				(14)		—		—			811		28		(c)

	Fair value measurements using significant unobservable inputs
Three months ended March 31, 2024 (in millions)	Fair value at Jan 1, 2024		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at March 31, 2024			Change in unrealized (gains)/losses related to financial instruments held at March 31, 2024
						Purchases		Sales		Issuances		Settlements(h)
Liabilities:(a)
Deposits	$	1,833	$	(29)	(c)(f)	$	—	$	—	$	527	$	(203)	$	—	$	(73)		$	2,055	$	(25)	(c)(f)
Short-term borrowings	1,758		1		(c)(f)	—		—		1,645		(1,197)		—		(1)			2,206		8		(c)(f)
Trading liabilities – debt and equity instruments	37		(3)		(c)	(1)		2		—		—		3		(1)			37		(2)		(c)
Accounts payable and other liabilities	52		(4)		(c)	(3)		3		—		—		—		—			48		(4)		(c)
Long-term debt	27,726		551		(c)(f)	—		—		4,503		(3,851)		17		(268)			28,678		500		(c)(f)

9196


	Fair value measurements using significant unobservable inputs
Three months ended March 31, 2023 (in millions)	Fair value at Jan 1, 2023		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at March 31, 2023			Change in unrealized gains/(losses) related to financial instruments held at March 31, 2023
						Purchases(g)		Sales				Settlements(h)
Assets:(a)
Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	—	$	—		$	—	$	—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies	759		7			25		(7)				(24)		—		(3)			757		7
Residential – nonagency	5		1			—		—				(2)		1		—			5		1
Commercial – nonagency	7		1			—		—				(1)		3		—			10		1
Total mortgage-backed securities	771		9			25		(7)				(27)		4		(3)			772		9
Obligations of U.S. states and municipalities	7		—			—		(1)				—		—		—			6		—
Non-U.S. government debt securities	155		11			50		(47)				—		—		—			169		13
Corporate debt securities	463		24			49		(17)				—		23		(4)			538		20
Loans	759		8			436		(62)				(95)		23		(143)			926		8
Asset-backed securities	23		—			1		(2)				(1)		1		(15)			7		—
Total debt instruments	2,178		52			561		(136)				(123)		51		(165)			2,418		50
Equity securities	665		(31)			58		(71)				—		36		(76)			581		(2)
Physical commodities	2		—			—		—				(2)		—		—			—		—
Other	64		(21)			94		—				2		1		—			140		1
Total trading assets – debt and equity instruments	2,909		—			713		(207)				(123)		88		(241)			3,139		49		(c)
Net derivative receivables:(b)
Interest rate	701		346			35		(50)				(22)		(165)		(91)			754		461
Credit	13		246			3		(3)				171		24		(2)			452		239
Foreign exchange	489		89			28		(41)				(75)		64		(9)			545		126
Equity	(384)		171			318		(687)				—		111		(414)			(885)		308
Commodity	(146)		8			4		(67)				(127)		1		40			(287)		(31)
Total net derivative receivables	673		860		(c)	388		(848)				(53)		35		(476)			579		1,103		(c)
Available-for-sale securities:
Corporate debt securities	239		11			—		—				—		—		—			250		11
Total available-for-sale securities	239		11		(d)	—		—				—		—		—			250		11		(d)
Loans	1,418		26		(c)	148		(66)				(95)		157		(109)			1,479		16		(c)
Mortgage servicing rights	7,973		(11)		(e)	31		2				(240)		—		—			7,755		(11)		(e)
Other assets	405		5		(c)	12		—				(16)		—		—			406		5		(c)

	Fair value measurements using significant unobservable inputs
Three months ended March 31, 2023 (in millions)	Fair value at Jan 1, 2023		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at March 31, 2023			Change in unrealized (gains)/losses related to financial instruments held at March 31, 2023
						Purchases		Sales		Issuances		Settlements(h)
Liabilities:(a)
Deposits	$	2,162	$	48	(c)(f)	$	—	$	—	$	128	$	(67)	$	—	$	(63)		$	2,208	$	48	(c)(f)
Short-term borrowings	1,401		90		(c)(f)	—		—		1,051		(1,132)		—		—			1,410		20		(c)(f)
Trading liabilities – debt and equity instruments	84		(12)		(c)	(27)		8		—		—		12		(2)			63		1		(c)
Accounts payable and other liabilities	53		(1)		(c)	—		4		—		—		—		—			56		(1)		(c)
Long-term debt	24,092		1,356		(c)(f)	—		—		2,733		(2,975)		91		(70)			25,227		1,447		(c)(f)

Fair value measurements using significant unobservable inputs
Three months ended
March 31, 2022
(in millions) Fair value at
Jan 1,
2022 Total realized/unrealized gains/(losses) Transfers into
level 3 Transfers (out of) level 3 Fair value at
March 31, 2022 Change in unrealized gains/(losses) related
to financial instruments held at March 31, 2022
Purchases(g)
Sales
Settlements(h)
Assets:(a)
Federal funds sold and securities purchased under resale agreements $ — $ — $ — $ — $ — $ — $ — $ — $ —
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies 265 27 22 (7) (21) — — 286 26
Residential – nonagency 28 — — — (11) — (7) 10 —
Commercial – nonagency 10 — — — — — — 10 —
Total mortgage-backed securities 303 27 22 (7) (32) — (7) 306 26
Obligations of U.S. states and municipalities 7 — — — — — — 7 —
Non-U.S. government debt securities 81 (33) 228 (180) — 37 — 133 (33)
Corporate debt securities 332 (19) 61 (59) (37) 41 (26) 293 (20)
Loans 708 (4) 297 (98) (7) 271 (118) 1,049 (4)
Asset-backed securities 26 — 1 — — 4 (3) 28 —
Total debt instruments 1,457 (29) 609 (344) (76) 353 (154) 1,816 (31)
Equity securities 662 (813) 223 (240) — 853 (22) 663 (760)
Physical commodities — — — — — — — — —
Other 160 1 20 — (5) — (1) 175 16
Total trading assets – debt and equity instruments 2,279 (841) (c) 852 (584) (81) 1,206 (177) 2,654 (775) (c)
Net derivative receivables:(b)
Interest rate (16) 233 126 (94) 151

(27) (6) 367 422
Credit 74 67 4 (4) (96) (3) 2 44 66
Foreign exchange (419) 345 132 (24) 70 (6) (22) 76 364
Equity (3,626) 730

498 (559)

443

(331) 262

(2,583) 838
Commodity (907) 422 50 (137) 156 — 2 (414) 467
Total net derivative receivables (4,894) 1,797 (c) 810 (818)

724

(367) 238

(2,510) 2,157 (c)
Available-for-sale securities:
Corporate debt securities 161 27 17 — — — — 205 27
Total available-for-sale securities 161 27 (d) 17 — — — — 205 27 (d)
Loans 1,933 98 (c) 121 (5) (281) 390 (184) 2,072 156 (c)
Mortgage servicing rights 5,494 959 (e) 1,130 (57) (232) — — 7,294 959 (e)
Other assets 306 9 (c) 41 — (17) 2 — 341 9 (c)
Fair value measurements using significant unobservable inputs
Three months ended
March 31, 2022
(in millions) Fair value at
Jan 1,
2022 Total realized/unrealized (gains)/losses Transfers into
level 3 Transfers (out of) level 3 Fair value at
March 31, 2022 Change in unrealized (gains)/losses related
to financial instruments held at March 31, 2022
Purchases Sales Issuances
Settlements(h)
Liabilities:(a)
Deposits $ 2,317 $ (142) (c)(f) $ — $ — $ 108 $ (48) $ — $ (114) $ 2,121 $ (143) (c)(f)
Short-term borrowings 2,481 (401) (c)(f) — — 1,423 (1,347) 1 (11) 2,146 (153) (c)(f)
Trading liabilities – debt and equity instruments 30 (17) (c) (14) 30 — — 14 (2) 41 31 (c)
Accounts payable and other liabilities 69 (4) (c) — 42 — — 1 — 108 (4) (c)
Long-term debt 24,374 (1,668) (c)(f) — — 4,050 (2,476)

263 (149) 24,394

(1,575) (c)(f)

9397

(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 March 31, ~~2023~~2024 and December 31, ~~2022.~~2023. 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 7%6% and 8% at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively.

(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. Realized and unrealized gains/(losses) recorded on level 3 AFS securities were not material for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023.

(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 months ended March 31, ~~2023~~2024 and ~~2022.~~2023. Unrealized (gains)/losses are reported in OCI, and were ~~$(20) million and $(229) million~~not material for the three months ended March 31, ~~2023~~2024 and ~~2022, respectively.~~2023.

(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, ~~2022,~~2023, 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 9599 for further information on changes impacting items measured at fair value on a nonrecurring basis.

Three months ended March 31, ~~2023~~2024

Level 3 assets were ~~$23.8~~$24.7 billion at March 31, ~~2023, relatively flat compared to~~2024, reflecting an increase of $1.1 billion from December 31, ~~2022, with no individually significant movements.~~2023.

The increase for the three months ended March 31, 2024 was driven by:

•$1.1 billion increase in gross derivative receivables due to gains and purchases largely offset by settlements.

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 March 31, 2024, and March 31, 2023 there were no significant transfers from level 2 into level 3.

For the three months ended March 31, 2024, there were no significant transfers from level 3 into level 2.

For the three months ended March 31, 2023, significant transfers from level 3 into level 2 included the following:

•$953 million of gross equity derivative receivables as a result of an increase in observability and a decrease in the significance of unobservable inputs.

~~For the three months ended March 31, 2022, significant transfers from level 2 into level 3 included the following:~~

•~~$1.2 billion of total debt and equity instruments, largely due to equity securities of $853 million driven by a decrease in observability as a result of restricted access to certain markets.~~

~~For the three months ended March 31, 2022, there were no significant transfers from level 3 into level 2.~~

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.

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 ~~91-94~~95-98 for further information on these instruments.

Three months ended March 31, 2024

•$799 million of net losses on assets, predominantly driven by losses in net equity derivative receivables due to market movements.

•$516 million of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.

Three months ended March 31, 2023

•$891 million of net gains on assets, driven by gains in net derivative receivables due to market movements.

•$1.5 billion of net losses on liabilities, predominantly driven by an increase in the fair value of long-term debt due to market movements.

~~Three months ended March 31, 2022~~

•~~$2.0 billion of net gains on assets, predominantly driven by gains in net equity derivative receivables due to market movements and MSRs reflecting lower prepayment speeds on higher rates.~~

•~~$2.2 billion of net gains on liabilities, largely driven by gains in long-term debt due to market movements.~~

~~Refer to Note 14 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 March 31,

(in millions)

2023

2022

Credit and funding adjustments:

Derivatives CVA

(312)

Derivatives FVA

(8)

(58)

Derivatives FVA

Refer to Note 2 of JPMorgan Chase’s ~~2022~~2023 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.

9498

Assets and liabilities measured at fair value on a nonrecurring basis

The following tables present the assets and liabilities held as of March 31, ~~2023~~2024 and ~~2022~~2023, for which nonrecurring fair value adjustments were recorded during the three months ended March 31, ~~2023~~2024 and ~~2022~~2023, by major product category and fair value hierarchy.


		Fair value hierarchy							Total fair value
March 31, 2023 (in millions)		Level 1		Level 2		Level 3
	Fair value hierarchy										Fair value hierarchy	Total fair value
March 31, 2024 (in millions)
Loans
Loans
Loans	Loans	$	—	$	709	$	833	(b)	$	1,542
Other assets(a)	Other assets(a)	—		22		179			201
Total assets measured at fair value on a nonrecurring basis	Total assets measured at fair value on a nonrecurring basis	$	—	$	731	$	1,012		$	1,743
Accounts payable and other liabilities	Accounts payable and other liabilities	—		—		3			3
Total liabilities measured at fair value on a nonrecurring basis	Total liabilities measured at fair value on a nonrecurring basis	$	—	$	—	$	3		$	3


		Fair value hierarchy						Total fair value
March 31, 2022 (in millions)		Level 1		Level 2		Level 3
	Fair value hierarchy									Fair value hierarchy	Total fair value
March 31, 2023 (in millions)
Loans
Loans
Loans	Loans	$	—	$	874	$	417	$	1,291
Other assets	Other assets	—		15		802		817
Total assets measured at fair value on a nonrecurring basis	Total assets measured at fair value on a nonrecurring basis	$	—	$	889	$	1,219	$	2,108
Accounts payable and other liabilities	Accounts payable and other liabilities	—		—		28		28
Total liabilities measured at fair value on a nonrecurring basis	Total liabilities measured at fair value on a nonrecurring basis	$	—	$	—	$	28	$	28

(a)~~Primarily includes~~Included impairments on certain equity method investments, as well as 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 ~~$179~~$213 million in level 3 assets measured at fair value on a nonrecurring basis as of March 31, ~~2023, $158~~2024, $191 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 $833 million in level 3 assets measured at fair value on a nonrecurring basis as of March 31, 2023, $14 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 13% to 48% with a weighted average of 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 months ended March 31, ~~2023~~2024 and ~~2022~~2023, related to assets and liabilities held at those dates.

Three months ended March 31,
(in millions) 2023 2022
Loans $ (37) $ (18)
Other assets(a)
(65) 360
Accounts payable and other liabilities (3) (24)
Total nonrecurring fair value gains/(losses) $ (105) $ 318


	Three months ended March 31,
(in millions)	2024		2023
Loans	$	(60)	$	(37)
Other assets(a)	(41)		(65)
Accounts payable and other liabilities	—		(3)
Total nonrecurring fair value gains/(losses)	$	(101)	$	(105)

(a)Included ~~$(61)~~$(39) million and ~~$376~~$(61) million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively, of net gains/(losses) as a result of the measurement alternative. The current period also included impairments on certain equity method investments.

~~Refer to Note 11 for further information about the measurement of collateral-dependent loans.~~

9599

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 March 31, ~~2023~~2024 and ~~2022~~2023, 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 March 31,

As of or for the period ended, (in millions)

2023

2022

Other assets

Carrying value(a)

3,910

4,131

Upward carrying value changes(b)

387

Upward carrying value changes(b)

Downward carrying value changes/impairment(c)

(96)

(11)

(a)The carrying value as of December 31, ~~2022~~2023 was ~~$4.1~~$4.5 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 March 31, ~~2023~~2024 were ~~$1.5~~$1.2 billion.

(c)The cumulative downward carrying value changes/impairment between January 1, 2018 and March 31, ~~2023~~2024 were ~~$(1.0)~~$(1.3) billion.

Included in other assets above is the Firm’s interest in approximately 3737.2 million Visa ~~Class B common~~B-1 shares ~~(“Visa B shares”).~~which is held in the Firm's principal investment portfolio. These shares are subject to certain transfer restrictions and are convertible into Visa Class A common ~~shares~~stock (“Visa A shares”) at a specified conversion rate upon final resolution of certain litigation matters involving Visa. The conversion rate of Visa BB-1 shares ~~into~~to Visa A shares was ~~1.5991~~1.5875 at March 31, ~~2023,~~2024 and ~~the conversion rate~~ may be 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 March 31, ~~2023,~~2024, there is significant uncertainty regarding when the transfer restrictions on Visa BB-1 shares may be terminated and what the final conversion rate for the Visa BB-1 shares will be. As a result of these considerations, as well as differences in voting rights, Visa BB-1 shares are not considered to be similar to Visa A shares, and they continue to be held at their nominal carrying value.

On January 24, 2024, Visa filed a Current Report on Form 8-K with the SEC announcing that Visa’s stockholders had approved amendments to its Certificate of Incorporation that redenominated the Visa Class B common stock to Visa Class B-1 common stock (“Visa B-1 shares”) and authorized Visa to conduct one or more exchange offers.

On April 8, 2024, Visa commenced an initial exchange offer expiring May 3, 2024 for any and all outstanding shares of Visa B-1 shares. Holders participating in the exchange offer would receive a combination of Visa Class B-2 common stock (“Visa B-2 shares”) and Visa Class C common stock (“Visa C shares”) in exchange for Visa B-1 shares that are validly tendered and accepted for exchange by Visa. The Firm has tendered its 37.2 million Visa B-1 shares, and that

tender is pending Visa’s acceptance. In exchange for each Visa B-1 share that is validly tendered and accepted for exchange by Visa, the Firm would receive one half of a newly issued share of Visa Class B-2 common stock (“Visa B-2 shares”) and newly issued Visa C shares in an amount equivalent to one half of a Visa B-1 share. Upon acceptance by Visa of the Firm’s tender, the Visa C shares received by the Firm would be recognized at fair value, which is expected to result in a gain that may be recorded as early as the second quarter of 2024. The Visa B-2 shares would continue to be held at their nominal carrying value and would continue to be subject to transfer restrictions. The Firm would be entitled to sell the Visa C shares received after a brief lock-up period expires. Visa is also authorized to extend offers for potential future exchanges, each enabling the release of additional Visa B shares if certain conditions are met. The timing of future exchange offers is dependent upon actions taken by Visa and other factors that may be outside of the Firm’s control.

In connection with prior sales of Visa B shares prior to the redenomination to Visa B-1 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~~Refer to page 194 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 accountedJPMorgan Chase’s 2023 Form 10-K 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 March 31, 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.further information.

96100

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 March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, 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.


		March 31, 2023										December 31, 2022
				Estimated fair value hierarchy										Estimated fair value hierarchy
	March 31, 2024																										March 31, 2024						December 31, 2023
			Estimated fair value hierarchy
(in billions)
(in billions)
(in billions)	(in billions)	Carrying value		Level 1		Level 2		Level 3		Total estimated fair value		Carrying value		Level 1		Level 2		Level 3		Total estimated fair value		Carrying value	Level 1	Level 2	Level 3	Total estimated fair value		Carrying value	Level 1	Level 2	Level 3	Total estimated fair value
Financial assets	Financial assets
Cash and due from banks
Cash and due from banks
Cash and due from banks	Cash and due from banks	$	25.1	$	25.1	$	—	$	—	$	25.1	$	27.7	$	27.7	$	—	$	—	$	27.7
Deposits with banks	Deposits with banks	520.9		520.4		0.5		—		520.9		539.5		539.3		0.2		—		539.5
Accrued interest and accounts receivable	Accrued interest and accounts receivable	114.8		—		114.7		0.1		114.8		124.7		—		124.6		0.1		124.7
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	7.8		—		7.8		—		7.8		3.7		—		3.7		—		3.7
Securities borrowed	Securities borrowed	127.4		—		127.4		—		127.4		115.3		—		115.3		—		115.3
Investment securities, held-to-maturity	Investment securities, held-to-maturity	412.8		187.2		194.8		—		382.0		425.3		189.1		199.5		—		388.6
Loans, net of allowance for loan losses(a)	Loans, net of allowance for loan losses(a)	1,070.3		—		198.9		851.2		1,050.1		1,073.9		—		194.0		853.9		1,047.9
Other	Other	102.4		—		100.8		1.7		102.5		101.2		—		99.6		1.7		101.3
Financial liabilities	Financial liabilities
Deposits	Deposits	$	2,335.7	$	—	$	2,335.9	$	—	$	2,335.9	$	2,311.6	$	—	$	2,311.5	$	—	$	2,311.5
Deposits
Deposits
Federal funds purchased and securities loaned or sold under repurchase agreements	Federal funds purchased and securities loaned or sold under repurchase agreements	54.1		—		54.1		—		54.1		50.6		—		50.6		—		50.6
Short-term borrowings	Short-term borrowings	24.2		—		24.2		—		24.2		28.2		—		28.2		—		28.2
Accounts payable and other liabilities		238.5		—		232.3		5.6		237.9		257.5		—		251.2		5.6		256.8
Accounts payable and other liabilities(b)
Beneficial interests issued by consolidated VIEs	Beneficial interests issued by consolidated VIEs	14.9		—		14.9		—		14.9		12.6		—		12.6		—		12.6
Long-term debt	Long-term debt	219.3		—		214.3		2.8		217.1		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)Excludes lending-related commitments disclosed in the table below.

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.

March 31, 2023

December 31, 2022

Estimated fair value hierarchy

March 31, 2024

December 31, 2023

Estimated fair value hierarchy

(in billions)

Carrying value(a) (b)

Level 1

Level 2

Level 3

Total estimated fair value

Carrying value(a) (b)

Level 1

Level 2

Level 3

Total estimated fair value

Carrying value(a)(b)(c)

Level 1

Level 2

Level 3

Total estimated fair value

Carrying value(a)(b)(c)

Level 1

Level 2

Level 3

Total estimated fair value

Wholesale lending-related commitments

2.3

—

3.2

2.3

—

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 March 31, 2024 and December 31, 2023, includes fair value adjustments associated with First Republic for other unfunded commitments to extend credit totaling $935 million and $1.1 billion, respectively, recorded in accounts payable and other liabilities on the Consolidated balance sheets. Refer to Notes 22 and 26 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 ~~169~~177 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a further discussion of the valuation of lending-related commitments.

97101

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 months ended March 31, ~~2023~~2024 and ~~2022,~~2023, 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 March 31,
		2023							2022
		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,
		2024
		2024
		2024
(in millions)
(in millions)
(in millions)	(in millions)	Principal transactions		All other income			Total changes in fair value recorded (e)		Principal transactions		All other income			Total changes in fair value recorded (e)		Principal transactions	All other income	Total changes in fair value recorded (e)	Principal transactions	All other income	Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements	Federal funds sold and securities purchased under resale agreements	$	202	$	—		$	202	$	(230)	$	—		$	(230)
Securities borrowed	Securities borrowed	88		—			88		(198)		—			(198)
Securities borrowed
Securities borrowed
Trading assets:
Trading assets:
Trading assets:	Trading assets:
Debt and equity instruments, excluding loans	Debt and equity instruments, excluding loans	1,595		—			1,595		344		—			344
Debt and equity instruments, excluding loans
Debt and equity instruments, excluding loans
Loans reported as trading assets:
Loans reported as trading assets:
Loans reported as trading assets:	Loans reported as trading assets:
Changes in instrument-specific credit risk	Changes in instrument-specific credit risk	131		—			131		(6)		—			(6)
Changes in instrument-specific credit risk
Changes in instrument-specific credit risk
Other changes in fair value
Other changes in fair value
Other changes in fair value	Other changes in fair value	3		—			3		(11)		—			(11)
Loans:	Loans:
Loans:
Loans:
Changes in instrument-specific credit risk
Changes in instrument-specific credit risk
Changes in instrument-specific credit risk	Changes in instrument-specific credit risk	65		1		(c)	66		6		12		(c)	18
Other changes in fair value	Other changes in fair value	195		110		(c)	305		(719)		(514)		(c)	(1,233)
Other changes in fair value
Other changes in fair value
Other assets
Other assets
Other assets	Other assets	30		—			30		11		(3)		(d)	8
Deposits(a)	Deposits(a)	(473)		—			(473)		402		—			402
Deposits(a)
Deposits(a)
Federal funds purchased and securities loaned or sold under repurchase agreements
Federal funds purchased and securities loaned or sold under repurchase agreements
Federal funds purchased and securities loaned or sold under repurchase agreements	Federal funds purchased and securities loaned or sold under repurchase agreements	(61)		—			(61)		82		—			82
Short-term borrowings(a)	Short-term borrowings(a)	(159)		—			(159)		302		—			302
Short-term borrowings(a)
Short-term borrowings(a)
Trading liabilities
Trading liabilities
Trading liabilities	Trading liabilities	(15)		—			(15)		(66)		—			(66)
Beneficial interests issued by consolidated VIEs	Beneficial interests issued by consolidated VIEs	—		—			—		(1)		—			(1)
Beneficial interests issued by consolidated VIEs
Beneficial interests issued by consolidated VIEs
Other liabilities
Other liabilities
Other liabilities	Other liabilities	—		—			—		3		—			3
Long-term debt(a)(b)	Long-term debt(a)(b)	(2,798)		(26)		(c)(d)	(2,824)		3,960		19		(c)(d)	3,979
Long-term debt(a)(b)
Long-term debt(a)(b)

(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 not material both for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023.

(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 6 for further information regarding interest income and interest expense.

98102

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 March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected.


		March 31, 2023							December 31, 2022
	March 31, 2024																					March 31, 2024				December 31, 2023
(in millions)	(in millions)	Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding		Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding		(in millions)	Contractual principal outstanding	Fair value		Fair value over/(under) contractual principal outstanding			Contractual principal outstanding	Fair value			Fair value over/(under) contractual principal outstanding
Loans	Loans
Nonaccrual loans	Nonaccrual loans
Nonaccrual loans
Nonaccrual loans
Loans reported as trading assets
Loans reported as trading assets
Loans reported as trading assets	Loans reported as trading assets	$	2,437		$	365	$	(2,072)	$	2,517		$	368	$	(2,149)
Loans	Loans	934			788		(146)		967			829		(138)
Subtotal	Subtotal	3,371			1,153		(2,218)		3,484			1,197		(2,287)
90 or more days past due and government guaranteed	90 or more days past due and government guaranteed
Loans(a)	Loans(a)	106			99		(7)		124			115		(9)
Loans(a)
Loans(a)
All other performing loans(b)	All other performing loans(b)
Loans reported as trading assets
Loans reported as trading assets
Loans reported as trading assets	Loans reported as trading assets	10,761			8,926		(1,835)		7,823			6,135		(1,688)
Loans	Loans	38,516			37,659		(857)		42,588			41,135		(1,453)
Subtotal	Subtotal	49,277			46,585		(2,692)		50,411			47,270		(3,141)
Total loans	Total loans	$	52,754		$	47,837	$	(4,917)	$	54,019		$	48,582	$	(5,437)
Long-term debt	Long-term debt
Principal-protected debt	Principal-protected debt	$	44,223	(d)	$	33,595	$	(10,628)	$	41,341	(d)	$	31,105	$	(10,236)
Principal-protected debt
Principal-protected debt
Nonprincipal-protected debt(c)	Nonprincipal-protected debt(c)	NA			42,590		NA		NA			41,176		NA		Nonprincipal-protected debt(c)	NA	49,198		NA	NA		NA	49,042			NA	NA
Total long-term debt	Total long-term debt	NA			$	76,185	NA		NA			$	72,281	NA		Total long-term debt	NA	$	92,730	NA	NA		NA	$	87,924		NA	NA
Long-term beneficial interests	Long-term beneficial interests
Nonprincipal-protected debt(c)	Nonprincipal-protected debt(c)	NA			$	1	NA		NA			$	5	NA
Nonprincipal-protected debt(c)
Nonprincipal-protected debt(c)																	NA	$	1	NA			NA	$	1		NA
Total long-term beneficial interests	Total long-term beneficial interests	NA			$	1	NA		NA			$	5	NA		Total long-term beneficial interests	NA	$	1	NA	NA		NA	$	1		NA	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 March 31, ~~2023,~~2024 and December 31, ~~2022.~~2023.

(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 March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, the contractual amount of lending-related commitments for which the fair value option was elected was ~~$9.4~~$11.4 billion and ~~$7.6~~$9.7 billion, respectively, with a corresponding fair value of ~~$12~~$93 million and ~~$24~~$97 million, respectively. Refer to Note 28 of JPMorgan Chase’s ~~2022~~2023 Form 10-K, and Note 22 of this Form 10-Q for further information regarding off-balance sheet lending-related financial instruments.

103

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.


		March 31, 2023									December 31, 2022
	March 31, 2024																								March 31, 2024				December 31, 2023
(in millions)	(in millions)	Long-term debt		Short-term borrowings		Deposits			Total		Long-term debt		Short-term borrowings		Deposits			Total		(in millions)	Long-term debt	Short-term borrowings	Deposits	Total		Long-term debt	Short-term borrowings	Deposits		Total
Risk exposure	Risk exposure
Interest rate
Interest rate
Interest rate	Interest rate	$	34,608	$	292	$	37,213		$	72,113	$	31,973	$	260	$	24,655		$	56,888
Credit	Credit	4,227		241		—			4,468		4,105		170		—			4,275
Foreign exchange	Foreign exchange	2,742		1,079		125			3,946		2,674		788		50			3,512
Equity	Equity	31,936		5,011		3,406			40,353		30,864		4,272		3,545			38,681
Commodity	Commodity	1,757		26		2		(a)	1,785		1,655		16		2		(a)	1,673
Total structured notes	Total structured notes	$	75,270	$	6,649	$	40,746		$	122,665	$	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 ~~$613~~$636 million and ~~$602~~$627 million for the periods ended March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively.

~~100~~

104

Note 4 – 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 ~~2022~~2023 Form 10-K for a further discussion of the Firm’s use of and accounting policies regarding derivative instruments.

The Firm’s disclosures are based on the accounting treatment and purpose of these derivatives. A limited number of the Firm’s derivatives are designated in hedge

accounting relationships and are disclosed according to the type of hedge (fair value hedge, cash flow hedge, or net investment hedge). Derivatives not designated in hedge accounting relationships include certain derivatives that are used to manage risks associated with specified assets and liabilities (“specified risk management” positions) as well as derivatives used in the Firm’s market-making businesses or for other purposes.

The following table outlines the Firm’s primary uses of derivatives and the related hedge accounting designation or disclosure category.

Type of Derivative

Use of Derivative

Designation and disclosure

Affected
segment or unit

10-Q page reference

Manage specifically identified risk exposures in qualifying hedge accounting relationships:

•Interest rate

Hedge fixed rate assets and liabilities

Fair value hedge

Corporate

~~107-108~~111-112

•Interest rate

Hedge floating-rate assets and liabilities

Cash flow hedge

Corporate

~~109~~113

•Foreign exchange

Hedge foreign currency-denominated assets and liabilities

Fair value hedge

Corporate

~~107-108~~111-112

•Foreign exchange

Hedge foreign currency-denominated forecasted revenue and expense

Cash flow hedge

Corporate

~~109~~113

•Foreign exchange

Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entities

Net investment hedge

Corporate

~~109~~113

•Commodity

Hedge commodity inventory

Fair value hedge

CIB, AWM

~~107-108~~111-112

Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships:

•Interest rate

Manage the risk associated with mortgage commitments, warehouse loans and MSRs

Specified risk management

CCB

~~110~~114

•Credit

Manage the credit risk associated with wholesale lending exposures

Specified risk management

CIB, AWM

~~110~~114

•Interest rate and foreign exchange

Manage the risk associated with certain other specified assets and liabilities

Specified risk management

Corporate, CIB

~~110~~114

Market-making derivatives and other activities:

•Various

Market-making and related risk management

Market-making and other

CIB

~~110~~114

•Various

Other derivatives

Market-making and other

CIB, AWM, Corporate

~~110~~114

~~101~~105

Notional amount of derivative contracts

The following table summarizes the notional amount of free-standing derivative contracts outstanding as of March 31, ~~2023,~~2024 and December 31, ~~2022.~~2023.

Notional amounts(b)

(in billions)

March 31, 2023

December 31, 2022

Interest rate contracts

Swaps

30,520

24,491

Futures and forwards

3,861

2,636

Futures and forwards

Written options

3,387

3,047

Purchased options

3,431

2,992

Purchased options

Total interest rate contracts

41,199

33,166

Credit derivatives(a)

1,506

1,132

Credit derivatives(a)

Foreign exchange contracts

Cross-currency swaps

4,377

4,196

Cross-currency swaps

Spot, futures and forwards

8,465

7,017

Written options

867

775

Written options

Purchased options

847

759

Total foreign exchange contracts

14,556

12,747

Total foreign exchange contracts

Equity contracts

Swaps

674

618

Swaps

Futures and forwards

107

110

Written options

748

636

Written options

Purchased options

698

580

Total equity contracts

2,227

1,944

Total equity contracts

Commodity contracts

Swaps

137

136

Swaps

Spot, futures and forwards

145

136

Written options

142

117

Written options

Purchased options

110

Total commodity contracts

534

487

Total commodity contracts

Total derivative notional amounts

60,022

49,476

Total derivative notional amounts

(a)Refer to the Credit derivatives discussion on page ~~111~~115 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.

~~102~~106

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 March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, 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)
		Gross derivative receivables								Gross derivative payables
March 31, 2023 (in millions)		Not designated as hedges		Designated as hedges		Total derivative receivables		Net derivative receivables(b)		Not designated as hedges		Designated as hedges		Total derivative payables		Net derivative payables(b)
		Gross derivative receivables
		Gross derivative receivables
		Gross derivative receivables
March 31, 2024 (in millions)
March 31, 2024 (in millions)
March 31, 2024 (in millions)																		Not designated as hedges	Designated as hedges	Total derivative receivables	Net derivative receivables(b)	Not designated as hedges	Designated as hedges	Total derivative payables	Net derivative payables(b)
Trading assets and liabilities	Trading assets and liabilities
Interest rate
Interest rate
Interest rate	Interest rate	$	285,532	$	7	$	285,539	$	25,028	$	274,728	$	—	$	274,728	$	13,300
Credit	Credit	12,047		—		12,047		993		12,428		—		12,428		852
Foreign exchange	Foreign exchange	184,941		739		185,680		19,225		186,365		1,257		187,622		13,214
Equity	Equity	61,457		—		61,457		7,728		66,545		—		66,545		9,848
Commodity	Commodity	18,624		1,035		19,659		6,300		19,392		1,370		20,762		7,497
Total fair value of trading assets and liabilities	Total fair value of trading assets and liabilities	$	562,601	$	1,781	$	564,382	$	59,274	$	559,458	$	2,627	$	562,085	$	44,711

		Gross derivative receivables								Gross derivative payables
December 31, 2022 (in millions)		Not designated as hedges		Designated as hedges		Total derivative receivables		Net derivative receivables(b)		Not designated as hedges		Designated as hedges		Total derivative payables		Net derivative payables(b)
		Gross derivative receivables
		Gross derivative receivables
		Gross derivative receivables
December 31, 2023 (in millions)
December 31, 2023 (in millions)
December 31, 2023 (in millions)																		Not designated as hedges	Designated as hedges	Total derivative receivables	Net derivative receivables(b)	Not designated as hedges	Designated as hedges	Total derivative payables	Net derivative payables(b)
Trading assets and liabilities	Trading assets and liabilities
Interest rate
Interest rate
Interest rate	Interest rate	$	300,411	$	4	$	300,415	$	28,419	$	290,291	$	—	$	290,291	$	15,970
Credit	Credit	10,329		—		10,329		1,090		9,971		—		9,971		754
Foreign exchange	Foreign exchange	239,946		1,633		241,579		23,365		248,911		2,610		251,521		18,856
Equity	Equity	61,913		—		61,913		9,139		62,461		—		62,461		8,804
Commodity	Commodity	23,652		1,705		25,357		8,867		20,758		2,511		23,269		6,757
Total fair value of trading assets and liabilities	Total fair value of trading assets and liabilities	$	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.

~~103~~107

Derivatives netting

The following tables present, as of March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, 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.


		March 31, 2023							December 31, 2022
	March 31, 2024																										March 31, 2024							December 31, 2023
(in millions)	(in millions)	Gross derivative receivables		Amounts netted on the Consolidated balance sheets		Net derivative receivables			Gross derivative receivables		Amounts netted on the Consolidated balance sheets		Net derivative receivables			(in millions)			Gross derivative receivables		Amounts netted on the Consolidated balance sheets		Net derivative receivables					Gross derivative receivables		Amounts netted on the Consolidated balance sheets		Net derivative receivables
U.S. GAAP nettable derivative receivables	U.S. GAAP nettable derivative receivables
Interest rate contracts:	Interest rate contracts:
Interest rate contracts:
Interest rate contracts:
Over-the-counter (“OTC”)
Over-the-counter (“OTC”)
Over-the-counter (“OTC”)	Over-the-counter (“OTC”)	$	191,898	$	(169,448)	$	22,450		$	203,922	$	(178,261)	$	25,661
OTC–cleared	OTC–cleared	90,955		(90,616)		339			93,800		(93,424)		376
OTC–cleared
OTC–cleared
Exchange-traded(a)
Exchange-traded(a)
Exchange-traded(a)	Exchange-traded(a)	589		(447)		142			559		(311)		248
Total interest rate contracts	Total interest rate contracts	283,442		(260,511)		22,931			298,281		(271,996)		26,285
Total interest rate contracts
Total interest rate contracts
Credit contracts:
Credit contracts:
Credit contracts:	Credit contracts:
OTC	OTC	8,564		(7,792)		772			8,474		(7,535)		939
OTC
OTC
OTC–cleared
OTC–cleared
OTC–cleared	OTC–cleared	3,385		(3,262)		123			1,746		(1,704)		42
Total credit contracts	Total credit contracts	11,949		(11,054)		895			10,220		(9,239)		981
Total credit contracts
Total credit contracts
Foreign exchange contracts:
Foreign exchange contracts:
Foreign exchange contracts:	Foreign exchange contracts:
OTC	OTC	183,060		(165,794)		17,266			237,941		(216,796)		21,145
OTC
OTC
OTC–cleared
OTC–cleared
OTC–cleared	OTC–cleared	662		(658)		4			1,461		(1,417)		44
Exchange-traded(a)	Exchange-traded(a)	26		(3)		23			15		(1)		14
Exchange-traded(a)
Exchange-traded(a)
Total foreign exchange contracts
Total foreign exchange contracts
Total foreign exchange contracts	Total foreign exchange contracts	183,748		(166,455)		17,293			239,417		(218,214)		21,203
Equity contracts:	Equity contracts:
Equity contracts:
Equity contracts:
OTC
OTC
OTC	OTC	26,232		(22,553)		3,679			30,323		(25,665)		4,658
Exchange-traded(a)	Exchange-traded(a)	32,080		(31,176)		904			28,467		(27,109)		1,358
Exchange-traded(a)
Exchange-traded(a)
Total equity contracts
Total equity contracts
Total equity contracts	Total equity contracts	58,312		(53,729)		4,583			58,790		(52,774)		6,016
Commodity contracts:	Commodity contracts:
Commodity contracts:
Commodity contracts:
OTC
OTC
OTC	OTC	11,145		(6,700)		4,445			14,430		(7,633)		6,797
OTC–cleared	OTC–cleared	107		(106)		1			120		(112)		8
OTC–cleared
OTC–cleared
Exchange-traded(a)
Exchange-traded(a)
Exchange-traded(a)	Exchange-traded(a)	6,577		(6,553)		24			9,103		(8,745)		358
Total commodity contracts	Total commodity contracts	17,829		(13,359)		4,470			23,653		(16,490)		7,163
Total commodity contracts
Total commodity contracts
Derivative receivables with appropriate legal opinion
Derivative receivables with appropriate legal opinion
Derivative receivables with appropriate legal opinion	Derivative receivables with appropriate legal opinion	555,280		(505,108)		50,172		(d)	630,361		(568,713)		61,648		(d)	526,298	(477,277)	(477,277)		49,021		49,021		(d)	(d)	531,221		(484,384)	(484,384)		46,837		46,837		(d)	(d)
Derivative receivables where an appropriate legal opinion has not been either sought or obtained	Derivative receivables where an appropriate legal opinion has not been either sought or obtained	9,102				9,102			9,232				9,232
Total derivative receivables recognized on the Consolidated balance sheets	Total derivative receivables recognized on the Consolidated balance sheets	$	564,382			$	59,274		$	639,593			$	70,880
Total derivative receivables recognized on the Consolidated balance sheets
Total derivative receivables recognized on the Consolidated balance sheets
Collateral not nettable on the Consolidated balance sheets(b)(c)
Collateral not nettable on the Consolidated balance sheets(b)(c)
Collateral not nettable on the Consolidated balance sheets(b)(c)	Collateral not nettable on the Consolidated balance sheets(b)(c)					(20,923)							(23,014)
Net amounts	Net amounts					$	38,351						$	47,866
Net amounts
Net amounts

~~104~~108


		March 31, 2023							December 31, 2022
	March 31, 2024																										March 31, 2024							December 31, 2023
(in millions)	(in millions)	Gross derivative payables		Amounts netted on the Consolidated balance sheets		Net derivative payables			Gross derivative payables		Amounts netted on the Consolidated balance sheets		Net derivative payables			(in millions)			Gross derivative payables		Amounts netted on the Consolidated balance sheets		Net derivative payables					Gross derivative payables		Amounts netted on the Consolidated balance sheets		Net derivative payables
U.S. GAAP nettable derivative payables	U.S. GAAP nettable derivative payables
Interest rate contracts:	Interest rate contracts:
Interest rate contracts:
Interest rate contracts:
OTC
OTC
OTC	OTC	$	177,549	$	(166,800)	$	10,749		$	190,108	$	(176,890)	$	13,218
OTC–cleared	OTC–cleared	94,500		(94,182)		318			97,417		(97,126)		291
OTC–cleared
OTC–cleared
Exchange-traded(a)
Exchange-traded(a)
Exchange-traded(a)	Exchange-traded(a)	540		(446)		94			327		(305)		22
Total interest rate contracts	Total interest rate contracts	272,589		(261,428)		11,161			287,852		(274,321)		13,531
Total interest rate contracts
Total interest rate contracts
Credit contracts:
Credit contracts:
Credit contracts:	Credit contracts:
OTC	OTC	9,096		(8,550)		546			8,054		(7,572)		482
OTC
OTC
OTC–cleared
OTC–cleared
OTC–cleared	OTC–cleared	3,081		(3,026)		55			1,674		(1,645)		29
Total credit contracts	Total credit contracts	12,177		(11,576)		601			9,728		(9,217)		511
Total credit contracts
Total credit contracts
Foreign exchange contracts:
Foreign exchange contracts:
Foreign exchange contracts:	Foreign exchange contracts:
OTC	OTC	184,746		(173,744)		11,002			246,457		(231,248)		15,209
OTC
OTC
OTC–cleared
OTC–cleared
OTC–cleared	OTC–cleared	765		(664)		101			1,488		(1,417)		71
Exchange-traded(a)	Exchange-traded(a)	31		—		31			20		—		20
Exchange-traded(a)
Exchange-traded(a)
Total foreign exchange contracts
Total foreign exchange contracts
Total foreign exchange contracts	Total foreign exchange contracts	185,542		(174,408)		11,134			247,965		(232,665)		15,300
Equity contracts:	Equity contracts:
Equity contracts:
Equity contracts:
OTC
OTC
OTC	OTC	29,147		(25,525)		3,622			29,833		(26,554)		3,279
Exchange-traded(a)	Exchange-traded(a)	33,357		(31,172)		2,185			28,291		(27,103)		1,188
Exchange-traded(a)
Exchange-traded(a)
Total equity contracts
Total equity contracts
Total equity contracts	Total equity contracts	62,504		(56,697)		5,807			58,124		(53,657)		4,467
Commodity contracts:	Commodity contracts:
Commodity contracts:
Commodity contracts:
OTC
OTC
OTC	OTC	11,189		(6,597)		4,592			11,954		(7,642)		4,312
OTC–cleared	OTC–cleared	106		(106)		—			112		(112)		—
OTC–cleared
OTC–cleared
Exchange-traded(a)
Exchange-traded(a)
Exchange-traded(a)	Exchange-traded(a)	7,093		(6,562)		531			9,021		(8,758)		263
Total commodity contracts	Total commodity contracts	18,388		(13,265)		5,123			21,087		(16,512)		4,575
Total commodity contracts
Total commodity contracts
Derivative payables with appropriate legal opinion
Derivative payables with appropriate legal opinion
Derivative payables with appropriate legal opinion	Derivative payables with appropriate legal opinion	551,200		(517,374)		33,826		(d)	624,756		(586,372)		38,384		(d)	522,192	(494,080)	(494,080)		28,112		28,112		(d)	(d)	537,679		(506,125)	(506,125)		31,554		31,554		(d)	(d)
Derivative payables where an appropriate legal opinion has not been either sought or obtained	Derivative payables where an appropriate legal opinion has not been either sought or obtained	10,885				10,885			12,757				12,757
Total derivative payables recognized on the Consolidated balance sheets	Total derivative payables recognized on the Consolidated balance sheets	$	562,085			$	44,711		$	637,513			$	51,141
Total derivative payables recognized on the Consolidated balance sheets
Total derivative payables recognized on the Consolidated balance sheets
Collateral not nettable on the Consolidated balance sheets(b)(c)
Collateral not nettable on the Consolidated balance sheets(b)(c)
Collateral not nettable on the Consolidated balance sheets(b)(c)	Collateral not nettable on the Consolidated balance sheets(b)(c)					(4,437)							(3,318)
Net amounts	Net amounts					$	40,274						$	47,823
Net amounts
Net amounts

(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 ~~$47.8~~$47.6 billion and ~~$51.5~~$48.3 billion at March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, respectively. Net derivatives payable included cash collateral netted of ~~$60.1~~$64.4 billion and ~~$69.2~~$70.0 billion at March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, respectively. Derivative cash collateral relates to OTC and OTC-cleared derivative instruments.

~~105~~109

Liquidity risk and credit-related contingent features

Refer to Note 5 of JPMorgan Chase’s ~~2022~~2023 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 March 31, ~~2023,~~2024 and December 31, ~~2022.~~2023.

OTC and OTC-cleared derivative payables containing downgrade triggers

(in millions)

March 31, 2023

December 31, 2022

Aggregate fair value of net derivative payables

13,817

16,023

Aggregate fair value of net derivative payables

Collateral posted

13,210

15,505

Collateral posted

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 March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, 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 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 payment requirements. The liquidity impact in the table is calculated based upon a downgrade below the lowest current rating of the rating agencies referred to in the derivative contract.

Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives

March 31, 2023

December 31, 2022

Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives

March 31, 2024

(in millions)

Single-notch downgrade

Two-notch downgrade

Single-notch downgrade

Two-notch downgrade

Amount of additional collateral to be posted upon downgrade(a)

112

1,216

128

1,293

Amount of additional collateral to be posted upon downgrade(a)

Amount required to settle contracts with termination triggers upon downgrade(b)

744

925

Amount required to settle contracts with termination triggers upon downgrade(b)

(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, 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 both March 31, ~~2023~~2024 and December 31, ~~2022.~~2023.

~~106~~110

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 months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively. The Firm includes gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the related hedged item.


		Gains/(losses) recorded in income						Income statement impact of excluded components(e)				OCI impact
Three months ended March 31, 2023 (in millions)		Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
	Gains/(losses) recorded in income																Gains/(losses) recorded in income				Income statement impact of excluded components(e)		OCI impact
Three months ended March 31, 2024 (in millions)														Three months ended March 31, 2024 (in millions)	Derivatives	Hedged items		Income statement impact	Amortization approach	Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
Contract type	Contract type
Interest rate(a)(b)
Interest rate(a)(b)
Interest rate(a)(b)	Interest rate(a)(b)	$	1,171	$	(1,103)	$	68	$	—	$	9	$	—
Foreign exchange(c)	Foreign exchange(c)	158		(94)		64		(172)		64		(28)
Commodity(d)	Commodity(d)	(1,540)		1,625		85		—		84		—
Total	Total	$	(211)	$	428	$	217	$	(172)	$	157	$	(28)


		Gains/(losses) recorded in income						Income statement impact of excluded components(e)				OCI impact
Three months ended March 31, 2022 (in millions)		Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
		Gains/(losses) recorded in income
		Gains/(losses) recorded in income
		Gains/(losses) recorded in income
Three months ended March 31, 2023 (in millions)
Three months ended March 31, 2023 (in millions)
Three months ended March 31, 2023 (in millions)
Contract type
Contract type
Contract type	Contract type
Interest rate(a)(b)	Interest rate(a)(b)	$	(7,070)	$	6,981	$	(89)	$	—	$	(66)	$	—
Interest rate(a)(b)
Interest rate(a)(b)
Foreign exchange(c)
Foreign exchange(c)
Foreign exchange(c)	Foreign exchange(c)	(690)		688		(2)		(65)		(2)		145
Commodity(d)	Commodity(d)	(176)		147		(29)				(37)		—
Commodity(d)
Commodity(d)
Total	Total	$	(7,936)	$	7,816	$	(120)	$	(65)	$	(105)	$	145
Total
Total

(a)Primarily consists of hedges of the benchmark (e.g., 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)Includes the amortization of income/expense associated with the inception hedge accounting adjustment applied to the hedged 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.

~~107~~111

As of March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, 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:

March 31, 2023
(in millions)

Active hedging relationships(d)

Discontinued hedging relationships(d)(e)

Total

Carrying amount of the hedged items(a)(b)

Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:

March 31, 2024
(in millions)

Active hedging relationships(d)

Discontinued hedging relationships(d)(e)

Total

Assets

Investment securities - AFS

119,145

(C)

(2,658)

(1,449)

(4,107)

Liabilities

Long-term debt

172,238

(7,215)

(5,592)

(12,807)

Long-term debt

Beneficial interests issued by consolidated VIEs

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, 2022
(in millions)

Active hedging relationships(d)

Discontinued hedging relationships(d)(e)

Total

Carrying amount of the hedged items(a)(b)

Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:

December 31, 2023
(in millions)

Active hedging relationships(d)

Discontinued hedging relationships(d)(e)

Total

Assets

Investment securities - AFS

84,073

(c)

(4,149)

(1,542)

(5,691)

Liabilities

Long-term debt

175,257

(11,879)

(3,313)

(15,192)

Long-term debt

Beneficial interests issued by consolidated VIEs

(a)Excludes physical commodities with a carrying value of ~~$14.6~~$2.6 billion and ~~$26.0~~$5.6 billion at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, 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 March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, the carrying amount excluded for AFS securities is ~~$19.9~~$15.9 billion and ~~$20.3~~$19.3 billion, ~~respectively, and~~respectively. For both periods, the carrying amount excluded for long-term debt is ~~$217 million and $221 million, respectively.~~zero.

(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 March 31, 2024 and December 31, 2023, the amortized cost of the portfolio layer method closed portfolios was ~~$38.9~~$69.3 billion and $83.9 billion, of which ~~$24.5~~$59.0 billion and $68.0 billion was designated as ~~hedged.~~hedged, respectively. The amount designated as hedged is the sum of the notional amounts of all outstanding layers in each portfolio, which includes both spot starting and forward starting layers. At March 31, 2024 and December 31, 2023, the cumulative amount of basis adjustments was ~~$21 million.~~$(1.5) billion and $(165) million, which is comprised of $(1.2) billion and $73 million for active hedging relationships, and $(304) million and $(238) million for discontinued hedging relationships, respectively. Refer to ~~Note 1 and~~ Note 9 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.

~~108~~112

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 months ended March 31, ~~2023~~2024 and ~~2022,~~2023, 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)
Three months ended March 31, 2023 (in millions)		Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
	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 March 31, 2024 (in millions)								Three months ended March 31, 2024 (in millions)	Amounts reclassified from AOCI to income	Amounts recorded in OCI	Total change in OCI for period
Contract type	Contract type
Interest rate(a)
Interest rate(a)
Interest rate(a)	Interest rate(a)	$	(427)	$	461	$	888
Foreign exchange(b)	Foreign exchange(b)	(56)		106		162
Total	Total	$	(483)	$	567	$	1,050

		Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Three months ended March 31, 2022 (in millions)		Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
		Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
		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 March 31, 2023 (in millions)								Three months ended March 31, 2023 (in millions)	Amounts reclassified from AOCI to income	Amounts recorded in OCI	Total change in OCI for period
Contract type	Contract type
Interest rate(a)
Interest rate(a)
Interest rate(a)	Interest rate(a)	$	243	$	(3,361)	$	(3,604)
Foreign exchange(b)	Foreign exchange(b)	(6)		(75)		(69)
Total	Total	$	237	$	(3,436)	$	(3,673)

(a)Primarily consists of hedges of 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 months ended March 31, ~~2023~~2024 and ~~2022.~~2023.

Over the next 12 months, the Firm expects that approximately ~~$(1.4)~~$(1.8) billion (after-tax) of net losses recorded in AOCI at March 31, ~~2023,~~2024, 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 seven years. The Firm’s longer-dated forecasted transactions relate to core lending and borrowing activities.

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 months ended March 31, ~~2023~~2024 and ~~2022.~~2023.


		Gains/(losses) recorded in income and other comprehensive income/(loss)
		2023					2022
	Gains/(losses) recorded in income and other comprehensive income/(loss)																	Gains/(losses) recorded in income and other comprehensive income/(loss)
	2024														2024				2023
Three months ended March 31, (in millions)	Three months ended March 31, (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 March 31, (in millions)	Amounts recorded in income(a)(b)	Amounts recorded in OCI		Amounts recorded in income(a)(b)	Amounts recorded in OCI
Foreign exchange derivatives	Foreign exchange derivatives		$	84	$	(1,004)		$	(131)	$	338

(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. There were no sales or liquidations of legal entities that resulted in reclassifications for the three month period ended March 31, 2024. During the three months ended March 31, 2023, the Firm reclassified a pre-tax loss of ~~$41~~$(41) million to other revenue related to the acquisition of CIFM. Refer to Note 19 for further information.

~~109~~113

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

Three months ended March 31,

Derivatives gains/(losses)
recorded in income

Three months ended March 31,

(in millions)

2023

2022

Contract type

Interest rate(a)

(14)

(229)

Credit(b)

(96)

Credit(b)

Foreign exchange(c)

(82)

Total

(108)

(278)

Total

(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 5 for information on principal transactions revenue.

~~110~~

114

Credit derivatives

Refer to Note 5 of JPMorgan Chase’s ~~2022~~2023 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 March 31, ~~2023~~2024 and December 31, ~~2022.~~2023. The Firm does not use notional amounts of credit derivatives as the primary measure of risk management for such derivatives, because the notional amount does not take into account the probability of the occurrence of a credit event, the recovery value of the reference obligation, or related cash instruments and economic hedges, each of which reduces, in the Firm’s view, the risks associated with such derivatives.

Total credit derivatives and credit-related notes


		Maximum payout/Notional amount
March 31, 2023 (in millions)		Protection sold		Protection purchased with identical underlyings(c)			Net protection (sold)/purchased(d)		Other protection purchased(e)
	Maximum payout/Notional amount
March 31, 2024 (in millions)
March 31, 2024 (in millions)
March 31, 2024 (in millions)
Credit derivatives
Credit derivatives
Credit derivatives	Credit derivatives
Credit default swaps	Credit default swaps	$	(643,237)		$	667,461	$	24,224	$	3,187
Credit default swaps
Credit default swaps
Other credit derivatives(a)
Other credit derivatives(a)
Other credit derivatives(a)	Other credit derivatives(a)	(80,136)			100,213		20,077		12,241
Total credit derivatives	Total credit derivatives	(723,373)			767,674		44,301		15,428
Total credit derivatives
Total credit derivatives
Credit-related notes(b)
Credit-related notes(b)
Credit-related notes(b)	Credit-related notes(b)	—			—		—		7,625
Total	Total	$	(723,373)		$	767,674	$	44,301	$	23,053
Total
Total

		Maximum payout/Notional amount
		Maximum payout/Notional amount
December 31, 2022 (in millions)		Protection sold		Protection purchased with identical underlyings(c)			Net protection (sold)/purchased(d)		Other protection purchased(e)
		Maximum payout/Notional amount

		Maximum payout/Notional amount
December 31, 2023 (in millions)
December 31, 2023 (in millions)
December 31, 2023 (in millions)
Credit derivatives
Credit derivatives
Credit derivatives	Credit derivatives
Credit default swaps	Credit default swaps	$	(495,557)		$	509,846	$	14,289	$	2,917
Credit default swaps
Credit default swaps
Other credit derivatives(a)
Other credit derivatives(a)
Other credit derivatives(a)	Other credit derivatives(a)	(47,165)			65,029		17,864		11,746
Total credit derivatives	Total credit derivatives	(542,722)			574,875		32,153		14,663
Total credit derivatives
Total credit derivatives
Credit-related notes(b)
Credit-related notes(b)
Credit-related notes(b)	Credit-related notes(b)	—			—		—		7,863
Total	Total	$	(542,722)		$	574,875	$	32,153	$	22,526
Total
Total

(a)Other credit derivatives predominantly consist of credit swap options and total return swaps.

(b)~~Represents~~Predominantly represents Other protection purchased by ~~CIB, primarily in its market-making businesses.~~CIB.

(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. Also includes credit protection against certain loans and lending-related commitments in the retained lending portfolio through the issuance of credit derivatives and credit-related notes.

The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit derivatives as of March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, 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
March 31, 2023 (in millions)		<1 year		1–5 years		>5 years		Total notional amount		Fair value of receivables(b)		Fair value of payables(b)		Net fair value
March 31, 2024 (in millions)
March 31, 2024 (in millions)
March 31, 2024 (in millions)																<1 year	1–5 years	>5 years	Total notional amount	Fair value of receivables(b)	Fair value of payables(b)	Net fair value
Risk rating of reference entity	Risk rating of reference entity
Investment-grade
Investment-grade
Investment-grade	Investment-grade	$	(121,414)	$	(362,872)	$	(84,259)	$	(568,545)	$	3,263	$	(1,567)	$	1,696
Noninvestment-grade	Noninvestment-grade	(37,875)		(100,151)		(16,802)		(154,828)		1,991		(3,510)		(1,519)
Total	Total	$	(159,289)	$	(463,023)	$	(101,061)	$	(723,373)	$	5,254	$	(5,077)	$	177


December 31, 2022 (in millions)		<1 year		1–5 years		>5 years		Total notional amount		Fair value of receivables(b)		Fair value of payables(b)		Net fair value
December 31, 2023 (in millions)																December 31, 2023 (in millions)	<1 year	1–5 years	>5 years	Total notional amount	Fair value of receivables(b)	Fair value of payables(b)	Net fair value
Risk rating of reference entity	Risk rating of reference entity
Investment-grade
Investment-grade
Investment-grade	Investment-grade	$	(90,484)	$	(294,791)	$	(30,822)	$	(416,097)	$	2,324	$	(1,495)	$	829
Noninvestment-grade	Noninvestment-grade	(33,244)		(87,011)		(6,370)		(126,625)		1,267		(3,209)		(1,942)
Total	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.

~~111~~115

Note 5 – Noninterest revenue and noninterest expense

Noninterest revenue

Refer to Note 6 of JPMorgan Chase’s ~~2022~~2023 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 March 31,

(in millions)

2023

2022

Underwriting

Equity

233

242

Debt

672

974

Debt

Total underwriting

905

1,216

Advisory

744

792

Advisory

Total investment banking fees

1,649

2,008

Total investment banking fees

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 6 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 March 31,

(in millions)

2023

2022

Trading revenue by instrument type

Interest rate(a)

1,786

469

Credit(b)

634

457

Credit(b)

Foreign exchange

1,551

1,324

Equity

2,693

2,255

Equity

Commodity

926

747

Total trading revenue

7,590

5,252

Private equity gains/(losses)

(147)

Total trading revenue

Private equity gains

Principal transactions

7,615

5,105

Principal transactions

(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.

Lending- and deposit-related fees

The following table presents the components of lending- and deposit-related fees.

Three months ended March 31,

(in millions)

2023

2022

Lending-related fees

369

362

Lending-related fees

Deposit-related fees

1,251

1,477

Total lending- and deposit-related fees

1,620

1,839

Total lending- and deposit-related fees

(a)Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, predominantly in AWM and CB. The discount is deferred in other liabilities and recognized on a straight-line basis over the commitment period. Refer to Note 26 for additional information.

Deposit-related fees include the impact of credits earned by clients that reduce such fees.

Asset management fees

The following table presents the components of asset management fees.

Three months ended March 31,

(in millions)

2023

2022

Asset management fees

Investment management fees(a)

3,390

3,562

All other asset management fees(b)

Asset management fees

Investment management fees

All other asset management fees

Total asset management fees

3,465

3,652

(a)~~Represents fees earned from managing assets on behalf~~Includes the impact of ~~the Firm’s clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts.~~

~~(b)Represents fees~~First Republic. Refer to Note 26 for ~~services that are ancillary to investment management services, such as commissions earned on the sales or distribution of mutual funds to clients.~~additional information.

Commissions and other fees

The following table presents the components of commissions and other fees.

Three months ended March 31,

(in millions)

2023

2022

Commissions and other fees

Brokerage commissions(a)

747

810

Administration fees(b)

557

633

All other commissions and fees (c)

391

267

Commissions and other fees

Brokerage commissions

Administration fees

All other commissions and fees (a)

Total commissions and other fees

1,695

1,710

Total commissions and other fees

(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.

~~112~~116

Card income

The following table presents the components of card income.

Three months ended March 31,

(in millions)

2023

2022

Interchange and merchant processing income

7,139

6,235

Interchange and merchant processing income

Rewards costs and partner payments

(5,509)

(4,870)

Other card income(a)

(396)

(390)

Other card income(a)

Total card income

1,234

975

Total card income

(a)Predominantly represents the amortization of account origination costs and annual ~~fees.~~fees, which are deferred and recognized on a straight-line basis over a 12-month period.

Refer to Note 14 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:~~income.

Three months ended March 31,

(in millions)

Operating lease income

Losses on tax-oriented investments

Three months ended March 31,

(in millions)

2023

2022

Operating lease income

755

1,048

Losses on tax-oriented investments(a)

(412)

(408)

Gain related to the acquisition of CIFM(b)

339

—

Gain related to the acquisition of CIFM

(a) ~~The losses associated with these tax-oriented investments are more than offset by lower income tax expense from the associated tax credits.~~

~~(b)~~ Gain on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% of the entity.

Effective January 1, 2024, as a result of adopting updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance, the amortization of certain of the Firm's alternative energy tax-oriented investments that was previously recognized in other income is now being recognized in income tax expense, which aligns with the associated tax credits and other tax benefits. Refer to Notes 1 and 13 for additional information.

Refer to Note 16 for information on operating lease income included within other income.

Noninterest expense

Other expense

Other expense on the Firm’s Consolidated statements of income includes the following:

Three months ended March 31,

(in millions)

Legal expense

Three months ended March 31,

(in millions)

2023

2022

Legal expense

176

119

FDIC-related expense

First Republic-related expense

(a)Included the increase of $725 million to the special assessment instituted by the FDIC reflecting its revised estimated losses to the Deposit Insurance Fund for the three months ended March 31, 2024, which was an adjustment to the $2.9 billion estimate recorded in the three months ended December 31, 2023.

(b)Included $155 million restructuring and integration costs associated with First Republic in the three months ended March 31, 2024. Refer to Note 26 for additional information on the First Republic acquisition.

117

Note 6 – Interest income and Interest expense

Refer to Note 7 of JPMorgan Chase’s ~~2022~~2023 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 March 31,

(in millions)

2023

2022

Interest income

Loans(a)

17,708

10,633

Taxable securities

3,967

1,979

Taxable securities

Non-taxable securities(b)

248

245

Total investment securities(a)

4,215

2,224

Total investment securities(a)

Trading assets - debt instruments

3,646

1,767

Federal funds sold and securities purchased under resale agreements

3,131

397

Securities borrowed(c)

1,716

(87)

Federal funds sold and securities purchased under resale agreements

Securities borrowed

Deposits with banks

4,819

238

All other interest-earning assets(d)

1,769

324

Deposits with banks

All other interest-earning assets(c)

Total interest income

37,004

15,496

Interest expense

Interest-bearing deposits

7,637

182

Federal funds purchased and securities loaned or sold under repurchase agreements

2,804

113

Short-term borrowings(e)

421

Trading liabilities – debt and all other interest-bearing liabilities(f)

1,971

191

Federal funds purchased and securities loaned or sold under repurchase agreements

Short-term borrowings

Trading liabilities – debt and all other interest-bearing liabilities(d)

Long-term debt

3,313

1,076

Beneficial interest issued by consolidated VIEs

147

Beneficial interest issued by consolidated VIEs

Total interest expense

16,293

1,624

Net interest income

20,711

13,872

Net interest income

Provision for credit losses

2,275

1,463

Net interest income after provision for credit losses

18,436

12,409

Net interest income after provision for credit losses

(a)Includes the ~~amortization/~~amortization and accretion of ~~unearned income (e.g.,~~ purchase ~~premiums/~~premiums and discounts, ~~and~~as well as net deferred ~~fees/costs).~~fees and costs on loans.

(b)Represents securities which are tax-exempt for U.S. federal income tax purposes.

(c)~~Negative interest and rates reflect the net impact of interest earned offset by fees paid on client-driven prime brokerage securities borrowed transactions.~~

~~(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)Includes commercial paper.~~

~~(f)~~(d)All other interest-bearing liabilities includes interest expense on brokerage-related customer payables.

~~113~~118

Note 7 – Pension and other postretirement employee benefit plans

Refer to Note 8 of JPMorgan Chase’s ~~2022~~2023 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 March 31,
		2023		2022
		Pension and OPEB plans
2024
2024
2024
Pension and OPEB plans
Pension and OPEB plans
Pension and OPEB plans
Total net periodic defined benefit plan cost/(credit)
Total net periodic defined benefit plan cost/(credit)
Total net periodic defined benefit plan cost/(credit)	Total net periodic defined benefit plan cost/(credit)	$	(94)	$	(64)
Total defined contribution plans	Total defined contribution plans	365		344
Total defined contribution plans
Total defined contribution plans
Total pension and OPEB cost included in noninterest expense	Total pension and OPEB cost included in noninterest expense	$	271	$	280
Total pension and OPEB cost included in noninterest expense
Total pension and OPEB cost included in noninterest expense

AtAs of March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, the fair values of plan assets for the Firm’s significant defined benefit pension and OPEB plans were ~~$20.5~~$22.1 billion and ~~$19.9~~$22.0 billion, respectively.

~~114~~119

Note 8 – Employee share-based incentives

Refer to Note 9 of JPMorgan Chase’s ~~2022~~2023 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 March 31,

(in millions)

2023

2022

Cost of prior grants of restricted stock units (“RSUs”), performance share units (“PSUs”) and stock appreciation rights (“SARs”) that are amortized over their applicable vesting periods

357

271

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

Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees

513

535

Total noncash compensation expense related to employee share-based incentive plans

870

806

Total noncash compensation expense related to employee share-based incentive plans

In the first quarter of ~~2023,~~2024, in connection with its annual incentive grant for the ~~2022~~2023 performance year, the Firm granted 2017 million RSUs and ~~801~~726 thousand PSUs with weighted-average grant date fair values of ~~$138.57~~$164.42 per RSU and ~~$139.81~~$165.62 per PSU.

~~115~~120

Note 9 – 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 March 31, ~~2023,~~2024, 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 transferred obligations of U.S. states and municipalities with

a carrying value of $7.1 billion resulting in the recognition of $38 million net pre-tax unrealized losses in AOCI. This transfer was a noncash transaction. Refer to Note 1 and Note 19 for additional information.

During 2022, the Firm transferred $78.3 billion of investment securities from AFS to HTM for capital management purposes. AOCI included pretax unrealized losses of $4.8 billion on the securities at the date of transfer.

Refer to Note 10 of JPMorgan Chase’s ~~2022~~2023 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.


		March 31, 2023								December 31, 2022
	March 31, 2024
(in millions)
(in millions)
(in millions)	(in millions)	Amortized cost(c)(d)		Gross unrealized gains		Gross unrealized losses		Fair value		Amortized cost(c)(d)		Gross unrealized gains		Gross unrealized losses		Fair value
Available-for-sale securities	Available-for-sale securities
Available-for-sale securities
Available-for-sale securities
Mortgage-backed securities:
Mortgage-backed securities:
Mortgage-backed securities:	Mortgage-backed securities:
U.S. GSEs and government agencies	U.S. GSEs and government agencies	$	71,570	$	592	$	4,857	$	67,305	$	77,194	$	479	$	6,170	$	71,503
U.S. GSEs and government agencies
U.S. GSEs and government agencies
Residential:
Residential:
Residential:	Residential:
U.S.	U.S.	1,695		1		103		1,593		1,576		1		111		1,466
U.S.
U.S.
Non-U.S.
Non-U.S.
Non-U.S.	Non-U.S.	2,885		4		11		2,878		3,176		5		27		3,154
Commercial	Commercial	2,101		—		154		1,947		2,113		—		155		1,958
Commercial
Commercial
Total mortgage-backed securities
Total mortgage-backed securities
Total mortgage-backed securities	Total mortgage-backed securities	78,251		597		5,125		73,723		84,059		485		6,463		78,081
U.S. Treasury and government agencies	U.S. Treasury and government agencies	83,648		513		2,522		81,639		95,217		302		3,459		92,060
U.S. Treasury and government agencies
U.S. Treasury and government agencies
Obligations of U.S. states and municipalities
Obligations of U.S. states and municipalities
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	13,692		166		329		13,529		7,103		86		403		6,786
Non-U.S. government debt securities	Non-U.S. government debt securities	19,960		13		543		19,430		20,360		14		678		19,696
Non-U.S. government debt securities
Non-U.S. government debt securities
Corporate debt securities
Corporate debt securities
Corporate debt securities	Corporate debt securities	392		—		28		364		381		—		24		357
Asset-backed securities:	Asset-backed securities:
Asset-backed securities:
Asset-backed securities:
Collateralized loan obligations
Collateralized loan obligations
Collateralized loan obligations	Collateralized loan obligations	5,607		2		89		5,520		5,916		1		125		5,792
Other	Other	3,100		4		61		3,043		3,152		2		69		3,085
Other
Other
Unallocated portfolio layer fair value basis adjustments(a)	Unallocated portfolio layer fair value basis adjustments(a)	21		(21)		—		NA		NA						NA
Unallocated portfolio layer fair value basis adjustments(a)
Unallocated portfolio layer fair value basis adjustments(a)
Total available-for-sale securities
Total available-for-sale securities
Total available-for-sale securities	Total available-for-sale securities	204,671		1,274		8,697		197,248		216,188		890		11,221		205,857		239,813	1,140	1,140	4,801	4,801	236,152	236,152	205,456	1,762	1,762	5,514	5,514	201,704	201,704
Held-to-maturity securities(b)	Held-to-maturity securities(b)
Mortgage-backed securities:	Mortgage-backed securities:
Mortgage-backed securities:
Mortgage-backed securities:
U.S. GSEs and government agencies
U.S. GSEs and government agencies
U.S. GSEs and government agencies	U.S. GSEs and government agencies	112,980		84		11,893		101,171		113,492		35		13,709		99,818
U.S. Residential	U.S. Residential	10,602		5		1,132		9,475		10,503		3		1,244		9,262
U.S. Residential
U.S. Residential
Commercial
Commercial
Commercial	Commercial	10,747		10		734		10,023		10,361		10		734		9,637
Total mortgage-backed securities	Total mortgage-backed securities	134,329		99		13,759		120,669		134,356		48		15,687		118,717
Total mortgage-backed securities
Total mortgage-backed securities
U.S. Treasury and government agencies
U.S. Treasury and government agencies
U.S. Treasury and government agencies	U.S. Treasury and government agencies	202,487		—		15,275		187,212		207,463		—		18,363		189,100
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	12,299		52		740		11,611		19,747		53		1,080		18,720
Obligations of U.S. states and municipalities
Obligations of U.S. states and municipalities
Asset-backed securities:
Asset-backed securities:
Asset-backed securities:	Asset-backed securities:
Collateralized loan obligations	Collateralized loan obligations	61,528		50		1,175		60,403		61,414		4		1,522		59,896
Collateralized loan obligations
Collateralized loan obligations
Other	Other	2,184		—		89		2,095		2,325		—		110		2,215
Total held-to-maturity securities		412,827		201		31,038		381,990		425,305		105		36,762		388,648
Other
Other
Total held-to-maturity securities(c)
Total held-to-maturity securities(c)
Total held-to-maturity securities(c)
Total investment securities, net of allowance for credit losses	Total investment securities, net of allowance for credit losses	$	617,498	$	1,475	$	39,735	$	579,238	$	641,493	$	995	$	47,983	$	594,505
Total investment securities, net of allowance for credit losses
Total investment securities, net of allowance for credit losses

(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 in the table for the ~~individual~~types of securities being hedged. Refer to ~~Note 1 and~~ Note 4 for additional information.

(b)The Firm purchased ~~$3.6 billion~~$479 million and ~~$13.2~~$3.6 billion of HTM securities for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

(c)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 transferred obligations of U.S. states and municipalities with a carrying value of $7.1 billion resulting in the recognition of $38 million net pre-tax unrealized losses in AOCI. This transfer was a non-cash transaction. Refer to Note 19 of this Form 10-Q and Note 1 of JPMorgan Chase’s 2023 Form 10-K for additional information.

(d)The amortized cost of investment securities is reported net of allowance for credit losses of ~~$90~~$154 million and ~~$96~~$128 million at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively.

~~(d)~~(e)Excludes ~~$2.4~~$3.4 billion and ~~$2.5~~$2.8 billion of accrued interest receivable at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively. The Firm did not reverse through interest income any accrued interest receivable for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023. Refer to Note 10 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for further discussion of accounting policies for accrued interest receivable on investment securities.

~~116~~121

AFS securities impairment

The following tables present the fair value and gross unrealized losses by aging category for AFS securities at March 31, ~~2023~~2024 and December 31, ~~2022.~~2023. The tables exclude U.S. Treasury and government agency securities and U.S. GSE and government agency MBS with unrealized losses of ~~$7.4~~$5.0 billion and ~~$9.6~~$4.6 billion, at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively; changes in the value of these securities are generally driven by changes in interest rates rather than changes in their credit profile given the explicit or implicit guarantees provided by the U.S. government.


		Available-for-sale securities with gross unrealized losses
		Less than 12 months				12 months or more
March 31, 2023 (in millions)		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Total fair value		Total gross unrealized losses
	Available-for-sale securities with gross unrealized losses																		Available-for-sale securities with gross unrealized losses
	Less than 12 months
March 31, 2024 (in millions)
March 31, 2024 (in millions)
March 31, 2024 (in millions)														Fair value	Gross unrealized losses	Fair value	Gross unrealized losses	Total fair value		Total gross unrealized losses
Available-for-sale securities	Available-for-sale securities
Mortgage-backed securities:	Mortgage-backed securities:
Mortgage-backed securities:
Mortgage-backed securities:
Residential:	Residential:
Residential:
Residential:
U.S.
U.S.
U.S.	U.S.	$	474	$	16	$	1,062	$	87	$	1,536	$	103
Non-U.S.	Non-U.S.	966		4		1,653		7		2,619		11
Commercial	Commercial	249		17		1,678		137		1,927		154
Total mortgage-backed securities	Total mortgage-backed securities	1,689		37		4,393		231		6,082		268
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	2,164		66		1,202		263		3,366		329
Non-U.S. government debt securities	Non-U.S. government debt securities	7,592		70		5,475		473		13,067		543
Corporate debt securities	Corporate debt securities	110		2		249		26		359		28
Asset-backed securities:	Asset-backed securities:
Collateralized loan obligations	Collateralized loan obligations	352		4		4,882		85		5,234		89
Collateralized loan obligations
Collateralized loan obligations
Other	Other	1,537		29		1,071		32		2,608		61
Total available-for-sale securities with gross unrealized losses	Total available-for-sale securities with gross unrealized losses	$	13,444	$	208	$	17,272	$	1,110	$	30,716	$	1,318


		Available-for-sale securities with gross unrealized losses
		Less than 12 months				12 months or more
December 31, 2022 (in millions)		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Total fair value		Total gross unrealized losses
	Available-for-sale securities with gross unrealized losses																		Available-for-sale securities with gross unrealized losses
	Less than 12 months
December 31, 2023 (in millions)
December 31, 2023 (in millions)
December 31, 2023 (in millions)														Fair value	Gross unrealized losses	Fair value	Gross unrealized losses	Total fair value		Total gross unrealized losses
Available-for-sale securities	Available-for-sale securities
Mortgage-backed securities:	Mortgage-backed securities:
Mortgage-backed securities:
Mortgage-backed securities:
Residential:	Residential:
Residential:
Residential:
U.S.
U.S.
U.S.	U.S.	$	1,187	$	71	$	260	$	40	$	1,447	$	111
Non-U.S.	Non-U.S.	2,848		25		70		2		2,918		27
Commercial	Commercial	1,131		74		813		81		1,944		155
Total mortgage-backed securities	Total mortgage-backed securities	5,166		170		1,143		123		6,309		293
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	3,051		241		364		162		3,415		403
Non-U.S. government debt securities	Non-U.S. government debt securities	6,941		321		3,848		357		10,789		678
Corporate debt securities	Corporate debt securities	150		2		207		22		357		24
Asset-backed securities:	Asset-backed securities:
Collateralized loan obligations	Collateralized loan obligations	3,010		61		2,701		64		5,711		125
Collateralized loan obligations
Collateralized loan obligations
Other	Other	2,586		51		256		18		2,842		69
Total available-for-sale securities with gross unrealized losses	Total available-for-sale securities with gross unrealized losses	$	20,904	$	846	$	8,519	$	746	$	29,423	$	1,592

~~117~~122

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 March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, 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 ~~$90~~$154 million and ~~$41~~$90 million as of March 31, ~~2023~~2024 and ~~2022,~~2023, respectively, which included a cumulative-effect adjustment to retained earnings related to the transfer of HTM securities to AFS for the period ended March 31, 2023.

Refer to Note 10 of JPMorgan Chase’s ~~2022~~2023 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 March 31,
		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,
(in millions)
(in millions)
(in millions)	(in millions)	2023		2022
Realized gains	Realized gains	$	131	$	13
Realized gains
Realized gains
Realized losses
Realized losses
Realized losses	Realized losses	(999)		(407)
Investment securities losses	Investment securities losses	$	(868)	$	(394)
Investment securities losses
Investment securities losses
Provision for credit losses	Provision for credit losses	$	1	$	(1)
Provision for credit losses
Provision for credit losses

~~118~~123

Contractual maturities and yields

The following table presents the amortized cost and estimated fair value at March 31, ~~2023,~~2024, of JPMorgan Chase’s investment securities portfolio by contractual maturity.


By remaining maturity March 31, 2023 (in millions)		Due in one year or less			Due after one year through five years			Due after five years through 10 years			Due after 10 years(c)			Total
By remaining maturity March 31, 2024 (in millions)
By remaining maturity March 31, 2024 (in millions)
By remaining maturity March 31, 2024 (in millions)
Available-for-sale securities
Available-for-sale securities
Available-for-sale securities	Available-for-sale securities
Mortgage-backed securities	Mortgage-backed securities
Mortgage-backed securities
Mortgage-backed securities
Amortized cost
Amortized cost
Amortized cost	Amortized cost	$	14		$	3,406		$	4,644		$	70,187		$	78,251
Fair value	Fair value	14			3,259			4,678			65,772			73,723
Fair value
Fair value
Average yield(a)
Average yield(a)
Average yield(a)	Average yield(a)	2.14		%	4.16		%	5.69		%	4.04		%	4.14		%
U.S. Treasury and government agencies	U.S. Treasury and government agencies
U.S. Treasury and government agencies
U.S. Treasury and government agencies
Amortized cost
Amortized cost
Amortized cost	Amortized cost	$	11,298		$	45,163		$	20,706		$	6,481		$	83,648
Fair value	Fair value	11,030			43,602			20,506			6,501			81,639
Fair value
Fair value
Average yield(a)
Average yield(a)
Average yield(a)	Average yield(a)	0.36		%	3.87		%	4.33		%	6.33		%	3.70		%
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities
Obligations of U.S. states and municipalities
Obligations of U.S. states and municipalities
Amortized cost
Amortized cost
Amortized cost	Amortized cost	$	18		$	140		$	2,380		$	11,154		$	13,692
Fair value	Fair value	18			142			2,403			10,966			13,529
Fair value
Fair value
Average yield(a)
Average yield(a)
Average yield(a)	Average yield(a)	4.84		%	4.51		%	4.46		%	5.44		%	5.26		%
Non-U.S. government debt securities	Non-U.S. government debt securities
Non-U.S. government debt securities
Non-U.S. government debt securities
Amortized cost
Amortized cost
Amortized cost	Amortized cost	$	12,348		$	2,802		$	4,436		$	374		$	19,960
Fair value	Fair value	12,339			2,710			4,006			375			19,430
Fair value
Fair value
Average yield(a)
Average yield(a)
Average yield(a)	Average yield(a)	3.89		%	2.20		%	1.47		%	3.51		%	3.11		%
Corporate debt securities	Corporate debt securities
Corporate debt securities
Corporate debt securities
Amortized cost
Amortized cost
Amortized cost	Amortized cost	$	187		$	221		$	13		$	—		$	421
Fair value	Fair value	134			217			13			—			364
Fair value
Fair value
Average yield(a)
Average yield(a)
Average yield(a)	Average yield(a)	15.98		%	11.40		%	6.11		%	—		%	13.26		%
Asset-backed securities	Asset-backed securities
Asset-backed securities
Asset-backed securities
Amortized cost
Amortized cost
Amortized cost	Amortized cost	$	103		$	1,406		$	3,645		$	3,553		$	8,707
Fair value	Fair value	98			1,382			3,598			3,485			8,563
Fair value
Fair value
Average yield(a)
Average yield(a)
Average yield(a)	Average yield(a)	5.25		%	3.13		%	5.52		%	5.68		%	5.20		%

Total available-for-sale securities	Total available-for-sale securities

Total available-for-sale securities

Total available-for-sale securities
Amortized cost(b)
Amortized cost(b)
Amortized cost(b)	Amortized cost(b)	$	23,968		$	53,138		$	35,824		$	91,749		$	204,679
Fair value	Fair value	23,633			51,312			35,204			87,099			197,248
Fair value
Fair value
Average yield(a)
Average yield(a)
Average yield(a)	Average yield(a)	2.33		%	3.82		%	4.29		%	4.43		%	4.00		%
Held-to-maturity securities	Held-to-maturity securities
Held-to-maturity securities
Held-to-maturity securities
Mortgage-backed securities
Mortgage-backed securities
Mortgage-backed securities	Mortgage-backed securities
Amortized cost	Amortized cost	$	99		$	2,755		$	11,506		$	119,996		$	134,356
Amortized cost
Amortized cost
Fair value
Fair value
Fair value	Fair value	96			2,575			10,332			107,666			120,669
Average yield(a)	Average yield(a)	5.70		%	2.61		%	2.55		%	2.98		%	2.94		%
Average yield(a)
Average yield(a)
U.S. Treasury and government agencies
U.S. Treasury and government agencies
U.S. Treasury and government agencies	U.S. Treasury and government agencies
Amortized cost	Amortized cost	$	57,971		$	77,514		$	67,002		$	—		$	202,487
Amortized cost
Amortized cost
Fair value
Fair value
Fair value	Fair value	56,374			72,935			57,903			—			187,212
Average yield(a)	Average yield(a)	0.45		%	0.84		%	1.27		%	—		%	0.87		%
Average yield(a)
Average yield(a)
Obligations of U.S. states and municipalities
Obligations of U.S. states and municipalities
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities
Amortized cost	Amortized cost	$	—		$	—		$	738		$	11,595		$	12,333
Amortized cost
Amortized cost
Fair value
Fair value
Fair value	Fair value	—			—			711			10,900			11,611
Average yield(a)	Average yield(a)	—		%	—		%	4.20		%	4.06		%	4.06		%
Average yield(a)
Average yield(a)
Asset-backed securities
Asset-backed securities
Asset-backed securities	Asset-backed securities
Amortized cost	Amortized cost	$	—		$	82		$	19,511		$	44,119		$	63,712
Amortized cost
Amortized cost
Fair value
Fair value
Fair value	Fair value	—			82			19,262			43,154			62,498
Average yield(a)	Average yield(a)	—		%	5.72		%	5.37		%	5.48		%	5.45		%
Average yield(a)
Average yield(a)
Total held-to-maturity securities
Total held-to-maturity securities
Total held-to-maturity securities	Total held-to-maturity securities
Amortized cost(b)	Amortized cost(b)	$	58,070		$	80,351		$	98,757		$	175,710		$	412,888
Amortized cost(b)
Amortized cost(b)
Fair value
Fair value
Fair value	Fair value	56,470			75,592			88,208			161,720			381,990
Average yield(a)	Average yield(a)	0.46		%	0.91		%	2.25		%	3.68		%	2.35		%
Average yield(a)
Average yield(a)

(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, 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 ~~$(29)~~$34 million and the portfolio layer fair value hedge basis adjustments of ~~$21 million~~$(1.2) billion at March 31, ~~2023.~~2024. The amortized cost of held-to-maturity securities also excludes the allowance for credit losses of ~~$(61)~~$120 million at March 31, ~~2023.~~2024.

(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 ~~seven~~eight years for agency residential MBS and six years for both agency residential collateralized mortgage obligations and nonagency residential collateralized mortgage obligations.

~~119~~124

Note 10 – Securities financing activities

Refer to Note 11 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a discussion of accounting policies relating to securities financing activities. Refer to Note 3 for further information regarding securities financing agreements for which the fair value option has been elected. Refer to Note 23 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 March 31, ~~2023~~2024 and December 31, ~~2022.~~2023. 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.


		March 31, 2023
	March 31, 2024																		March 31, 2024
(in millions)	(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets		Amounts presented on the Consolidated balance sheets		Amounts not nettable on the Consolidated balance sheets(b)		Net amounts(c)			(in millions)	Gross amounts	Amounts netted on the Consolidated balance sheets	Amounts presented on the Consolidated balance sheets	Amounts not nettable on the Consolidated balance sheets(b)	Net amounts(c)
Assets	Assets
Securities purchased under resale agreements
Securities purchased under resale agreements
Securities purchased under resale agreements	Securities purchased under resale agreements	$	608,147	$	(291,100)	$	317,047	$	(308,851)		$	8,196
Securities borrowed	Securities borrowed	233,841		(37,924)		195,917		(142,451)			53,466
Liabilities	Liabilities
Securities sold under repurchase agreements	Securities sold under repurchase agreements	$	531,763	$	(291,100)	$	240,663	$	(204,338)		$	36,325
Securities sold under repurchase agreements
Securities sold under repurchase agreements
Securities loaned and other(a)	Securities loaned and other(a)	48,570		(37,924)		10,646		(10,563)			83


		December 31, 2022
	December 31, 2023																		December 31, 2023
(in millions)	(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets		Amounts presented on the Consolidated balance sheets		Amounts not nettable on the Consolidated balance sheets(b)		Net amounts(c)			(in millions)	Gross amounts	Amounts netted on the Consolidated balance sheets	Amounts presented on the Consolidated balance sheets	Amounts not nettable on the Consolidated balance sheets(b)	Net amounts(c)
Assets	Assets
Securities purchased under resale agreements
Securities purchased under resale agreements
Securities purchased under resale agreements	Securities purchased under resale agreements	$	597,912	$	(282,411)	$	315,501	$	(304,120)		$	11,381
Securities borrowed	Securities borrowed	228,279		(42,910)		185,369		(131,578)			53,791
Liabilities	Liabilities
Securities sold under repurchase agreements	Securities sold under repurchase agreements	$	480,793	$	(282,411)	$	198,382	$	(167,427)		$	30,955
Securities sold under repurchase agreements
Securities sold under repurchase agreements
Securities loaned and other(a)	Securities loaned and other(a)	52,443		(42,910)		9,533		(9,527)			6

(a)Includes securities-for-securities lending agreements of ~~$6.6~~$8.9 billion and ~~$7.0~~$5.6 billion at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, 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 March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, included ~~$6.2~~$5.5 billion and ~~$6.0~~$7.1 billion, respectively, of securities purchased under resale agreements; ~~$49.7~~$45.6 billion and ~~$49.0~~$50.7 billion, respectively, of securities borrowed; ~~$35.0~~$36.2 billion and ~~$29.1~~$30.0 billion, respectively, of securities sold under repurchase agreements; and securities loaned and other which were not material at both March 31, ~~2023~~2024 and December 31, ~~2022.~~2023.

~~120~~125

The tables below present as of March 31, ~~2023,~~2024 and December 31, ~~2022~~2023 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements.


		Gross liability balance
		March 31, 2023				December 31, 2022
	Gross liability balance														Gross liability balance
	March 31, 2024												March 31, 2024			December 31, 2023
(in millions)	(in millions)	Securities sold under repurchase agreements		Securities loaned and other		Securities sold under repurchase agreements		Securities loaned and other		(in millions)	Securities sold under repurchase agreements	Securities loaned and other		Securities sold under repurchase agreements			Securities loaned and other
Mortgage-backed securities	Mortgage-backed securities
U.S. GSEs and government agencies
U.S. GSEs and government agencies
U.S. GSEs and government agencies	U.S. GSEs and government agencies	$	68,935	$	—	$	58,050	$	—
Residential - nonagency	Residential - nonagency	2,538		—		2,414		—
Commercial - nonagency	Commercial - nonagency	1,689		—		2,007		—
U.S. Treasury, GSEs and government agencies	U.S. Treasury, GSEs and government agencies	242,331		1,294		191,254		1,464
Obligations of U.S. states and municipalities	Obligations of U.S. states and municipalities	1,987		39		1,735		5
Non-U.S. government debt	Non-U.S. government debt	146,097		959		155,156		1,259
Corporate debt securities	Corporate debt securities	38,013		3,422		37,121		461
Asset-backed securities	Asset-backed securities	4,017		—		2,981		—
Equity securities	Equity securities	26,156		42,856		30,075		49,254
Total	Total	$	531,763	$	48,570	$	480,793	$	52,443


		Remaining contractual maturity of the agreements
		Overnight and continuous									Greater than 90 days
March 31, 2023 (in millions)					Up to 30 days			30 – 90 days					Total
	Remaining contractual maturity of the agreements																			Remaining contractual maturity of the agreements
	Overnight and continuous
March 31, 2024 (in millions)
March 31, 2024 (in millions)
March 31, 2024 (in millions)																		Up to 30 days	30 – 90 days		Total
Total securities sold under repurchase agreements		Total securities sold under repurchase agreements	$	261,992		$	148,156		$	40,759			$	80,856		$	531,763
Total securities loaned and other	Total securities loaned and other	47,146			339			—				1,085			48,570


		Remaining contractual maturity of the agreements
		Overnight and continuous									Greater than 90 days
December 31, 2022 (in millions)					Up to 30 days			30 – 90 days					Total
	Remaining contractual maturity of the agreements																			Remaining contractual maturity of the agreements
	Overnight and continuous
December 31, 2023 (in millions)
December 31, 2023 (in millions)
December 31, 2023 (in millions)																		Up to 30 days	30 – 90 days		Total
Total securities sold under repurchase agreements		Total securities sold under repurchase agreements	$	205,235		$	170,696		$	37,120			$	67,742		$	480,793
Total securities loaned and other	Total securities loaned and other	50,138			1,285			3				1,017			52,443

Transfers not qualifying for sale accounting

At March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, the Firm held ~~$871~~$443 million and ~~$692~~$505 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~~primarily in short-term borrowings and long-term debt on the Consolidated balance sheets.

~~121~~126

Note 11 – 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 ~~2022~~2023 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 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 and consumer unsecured loans ~~and overdrafts.~~as well as overdrafts, primarily in CCB.

(c)Includes loans held in CIB, CB, AWM, Corporate, ~~as well as~~and risk-rated ~~BWM and auto dealer loans~~exposure held in CCB, 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 SPEs, 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 and J.P. Morgan Wealth Management within CCB)., states and political subdivisions, as well as loans to nonprofits. Refer to Note 14 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for more information on SPEs.

The following tables summarize the Firm’s loan balances by portfolio segment.

March 31, 2023

Consumer, excluding credit card

Credit card

Wholesale

Total(a)(b)

March 31, 2024

(in millions)

Consumer, excluding credit card

Credit card

Wholesale

Total(a)(b)

Retained

Held-for-sale

572

—

4,928

5,500

At fair value

10,414

—

28,132

38,546

At fair value

Total

311,433

180,079

637,384

1,128,896

December 31, 2022

Consumer, excluding credit card

Credit card

Wholesale

Total(a)(b)

December 31, 2023

(in millions)

Consumer, excluding credit card

Credit card

Wholesale

Total(a)(b)

Retained

Held-for-sale

618

—

3,352

3,970

At fair value

10,004

—

32,075

42,079

At fair value

Total

311,375

185,175

639,097

1,135,647

Total

(a)Excludes ~~$5.3 billion and $5.2~~$6.8 billion of accrued interest receivables at both March 31, ~~2023~~2024 and December 31, ~~2022, respectively.~~2023. The Firm wrote off accrued interest receivables of ~~$11~~$31 million and ~~$12~~$11 million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

(b)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 March 31, ~~2023,~~2024 and December 31, ~~2022.~~2023. For the discount associated with First Republic loans see Note 26 on pages 171-173.

~~122~~127

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.


		2023									2022
	2024																								2024					2023
Three months ended March 31, (in millions)	Three months ended March 31, (in millions)	Consumer, excluding credit card			Credit card		Wholesale		Total		Consumer, excluding credit card			Credit card		Wholesale		Total		Three months ended March 31, (in millions)	Consumer, excluding credit card	Credit card	Wholesale	Total		Consumer, excluding credit card	Credit card	Wholesale	Total
Purchases	Purchases	$	79	(b)(c)	$	—	$	163	$	242	$	119	(b)(c)	$	—	$	166	$	285
Sales	Sales	—			—		9,171		9,171		47			—		9,707		9,754
Retained loans reclassified to held-for-sale(a)	Retained loans reclassified to held-for-sale(a)	43			—		314		357		76			—		273		349

(a)Reclassifications of loans to held-for-sale are non-cash transactions.

(b)~~Predominantly includes~~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 months ended March 31, ~~2023~~2024 and ~~2022.~~2023. 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)Excludes purchases of retained loans of ~~$663~~$204 million and ~~$3.2 billion~~$663 million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, 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 ~~was $23 million~~ for the three months ended March 31, ~~2023,~~2024 was $96 million of which ~~$27~~$66 million was related to loans. Net gains/(losses) on sales of loans and lending-related commitments ~~was $38 million~~ for the three months ended March 31, ~~2022,~~2023 was $23 million of which ~~$34~~$27 million was 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.

~~123~~128

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~~These loans include 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)	March 31, 2023		December 31, 2022		(in millions)	March 31, 2024	December 31, 2023
Residential real estate	Residential real estate	$	236,115	$	237,561
Auto and other	Auto and other	64,332		63,192
Total retained loans	Total retained loans	$	300,447	$	300,753

Delinquency rates are the primary credit quality indicator for consumer loans. Refer to Note 12 of JPMorgan Chase's ~~2022~~2023 Form 10-K for further information on consumer credit quality indicators.

~~124~~129

Residential real estate

Delinquency is the primary credit quality indicator for retained residential real estate loans. The following tables provide information on delinquency and gross ~~charge-offs for the three months ended March 31, 2023.~~charge-offs.


(in millions, except ratios)	(in millions, except ratios)	March 31, 2023																											(in millions, except ratios)	March 31, 2024
		Term loans by origination year(d)																		Revolving loans						Total				Term loans by origination year(c)												Revolving loans				Total
		2023			2022			2021			2020			2019			Prior to 2019			Within the revolving period			Converted to term loans
Loan delinquency(a)(b)
Loan delinquency(a)
Loan delinquency(a)
Loan delinquency(a)
Current
Current
Current	Current	$	2,613		$	39,656		$	65,294		$	42,762		$	15,103		$	54,592		$	5,265		$	9,237		$	234,522
30–149 days past due	30–149 days past due	—			21			14			13			20			605			16			216			905
150 or more days past due	150 or more days past due	—			1			2			5			11			497			2			170			688
Total retained loans	Total retained loans	$	2,613		$	39,678		$	65,310		$	42,780		$	15,134		$	55,694		$	5,283		$	9,623		$	236,115
% of 30+ days past due to total retained loans(c)		—		%	0.06		%	0.02		%	0.04		%	0.20		%	1.94		%	0.34		%	4.01		%	0.67		%
% of 30+ days past due to total retained loans(b)																													% of 30+ days past due to total retained loans(b)	—	%	0.10	%	0.24	%	0.15	%	0.15	%	1.61	%	0.70	%	4.78	%	0.66	%
Gross charge-offs	Gross charge-offs	$	—		$	—		$	—		$	—		$	—		$	7		$	8		$	3		$	18


(in millions, except ratios)	(in millions, except ratios)	December 31, 2022																											(in millions, except ratios)		December 31, 2023
		Term loans by origination year(d)																		Revolving loans						Total					Term loans by origination year(c)																				Revolving loans								Total
		2022			2021			2020			2019			2018			Prior to 2018			Within the revolving period			Converted to term loans
Loan delinquency(a)(b)
Loan delinquency(a)
Loan delinquency(a)
Loan delinquency(a)
Current
Current
Current	Current	$	39,934		$	66,072		$	43,315		$	15,397		$	6,339		$	49,632		$	5,589		$	9,685		$	235,963		$	23,216		$	64,366		$	84,496		$	55,546		$	21,530		$	59,563				$	7,479		$	8,151				$	324,347
30–149 days past due	30–149 days past due	29			11			14			20						597			15			208			914			30–149 days past due		33			74			89			70			41			801					49			223					1,380
150 or more days past due	150 or more days past due	1						6			10			7			480			4			175			684			150 or more days past due		1			10			17			8			21			456					5			164					682
Total retained loans	Total retained loans	$	39,964		$	66,084		$	43,335		$	15,427		$	6,366		$	50,709		$	5,608		$	10,068		$	237,561		Total retained loans		$	23,250		$	64,450		$	84,602		$	55,624		$	21,592		$	60,820				$	7,533		$	8,538				$	326,409
% of 30+ days past due to total retained loans(c)		0.08		%	0.02		%	0.05		%	0.19		%	0.42		%	2.07		%	0.34		%	3.80		%	0.66		%
% of 30+ days past due to total retained loans(b)																													% of 30+ days past due to total retained loans(b)		0.15		%	0.13		%	0.13		%	0.14		%	0.29		%	2.04		%			0.72		%	4.53		%			0.63		%
Gross charge-offs

(a)Individual delinquency classifications include mortgage loans insured by U.S. government agencies which were not material at March 31, ~~2023~~2024 and December 31, ~~2022~~2023.

(b)At March 31, 2023 and December 31, 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)~~Excludes mortgage loans that are 30 or more days past due insured by U.S. government agencies which were not material at March 31, ~~2023~~2024 and December 31, ~~2022.~~2023. These amounts have been excluded based upon the government guarantee.

~~(d)~~(c)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.

~~125~~130

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)

March 31, 2023

December 31, 2022

Nonaccrual loans(a)(b)(c)(d)(e)

3,710

3,745

(in millions, except weighted-average data)

Nonaccrual loans(a)(b)(c)(d)

Current estimated LTV ratios(f)(g)(h)

Current estimated LTV ratios(e)(f)(g)

Greater than 125% and refreshed FICO scores:

Equal to or greater than 660

Less than 660

—

101% to 125% and refreshed FICO scores:

Equal to or greater than 660

196

174

Less than 660

80% to 100% and refreshed FICO scores:

Equal to or greater than 660

12,774

12,034

Equal to or greater than 660

Less than 660

250

184

Less than 80% and refreshed FICO scores:

Equal to or greater than 660

213,157

215,096

Less than 660

8,823

8,659

No FICO/LTV available

904

1,406

(k)

Less than 660

No FICO/LTV available(h)

Total retained loans

236,115

237,561

Weighted average LTV ratio(f)(i)

Weighted average FICO(g)(i)

770

769

Weighted-average LTV ratio(e)(i)

Geographic region(j)(k)

Weighted-average LTV ratio(e)(i)

Weighted-average FICO(f)(i)

Geographic region(h)(j)

California

72,610

73,112

New York

34,271

34,471

New York

Florida

18,877

18,870

Texas

14,899

14,968

Texas

Massachusetts

Colorado

Illinois

11,133

11,296

Colorado

9,979

9,968

Illinois

Washington

9,043

9,060

New Jersey

7,013

7,108

Massachusetts

6,352

6,380

New Jersey

Connecticut

5,408

5,432

All other

46,530

46,896

All other

Total retained loans

236,115

237,561

Total retained loans

(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 loans, regardless of their delinquency status. At March 31, ~~2023,~~2024, approximately 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 March 31, ~~2023~~2024 and December 31, ~~2022.~~2023.

(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.

(d)Interest income on nonaccrual loans recognized on a cash basis was $43 million and $45 million for ~~both~~ the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

(e)~~Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic.~~

~~(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)~~(f)Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.

~~(h)~~(g)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.

(h)Included U.S. government-guaranteed loans as of March 31, 2024 and December 31, 2023.

(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 March 31, ~~2023.~~

~~(k)Prior-period amount has been revised to conform with the current presentation.~~2024.

~~126~~131

Loan 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.~~difficulty. 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~~deferral and principal forgiveness that would otherwise have been required under the terms of the original agreement, are considered FDMs. Refer to Note 12 of JPMorgan Chase's 2023 Form 10-K for further information.

Financial effects of FDMs

For the three months ended March 31, 2024, residential real estate FDMs were $39 million. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 16 years and reducing the weighted-average contractual interest rate from 7.39% to 4.28%.

For the three months ended March 31, 2023, residential real estate FDMs were $38 million. 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 up to 24 years, and reducing the weighted-average contractual interest rate from 5.84% to 3.57%. ~~There~~

As of March 31, 2024 and December 31, 2023, there were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs. ~~In addition to FDMs,~~

For the ~~Firm also had $23 million of~~three months ended March 31, 2024 and 2023, loans subject to a trial modification and ~~$2 million of Chapter 7 loans. 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.~~material.

~~For periods ending prior to January 1, 2023, modifications~~

Payment status of ~~residential real estate loans where~~FDMs and defaults

The following table provides information on the ~~Firm granted concessions to borrowers who were experiencing financial difficulty were generally accounted for~~payment status of FDMs during the twelve months ended March 31, 2024 and ~~reported as TDRs. For~~ the three months ended March 31, ~~2022, new TDRs~~2023.


(in millions)	Amortized cost basis
	Twelve months ended March 31,		Three months ended March 31,
	2024		2023
Current	$	97	$	37
30-149 days past due	17		1
150 or more days past due	11		—
Total	$	125	$	38

FDMs that defaulted in the three months ended March 31, 2024 and were ~~$118 million.~~reported as FDMs in the twelve months prior to the default were not material. There were no ~~additional commitments~~FDMs that defaulted during the three months ended March 31, 2023 and were reported as FDMs on or after January 1, 2023, the date that the Firm adopted the changes to ~~lend to borrowers whose residential real estate loans have been modified in TDRs.~~the TDR accounting guidance. Refer to Note 121 of JPMorgan Chase's ~~2022~~2023 Form 10-K for further ~~information on TDRs.~~

~~Nature and extent of modifications~~

~~The following table provides information about how residential real estate loans were modified in TDRs during the period presented.~~

~~Three months ended March 31,~~

~~2022~~

~~Number of loans approved for a trial modification~~

~~1,526~~

~~Number of loans permanently modified~~

~~1,542~~

~~Concession granted:(a)~~

~~Interest rate reduction~~

~~Term or payment extension~~

~~Principal and/or interest deferred~~

~~Principal forgiveness~~

~~Other(b)~~

~~(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.~~

~~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 and about redefaults of certain loans modified in TDRs for the period presented.


~~(in millions, except weighted-average data)~~	~~Three months ended March 31,~~
	~~2022~~
~~Weighted-average interest rate of loans with interest rate reductions – before TDR~~	~~4.43~~		%
~~Weighted-average interest rate of loans with interest rate reductions – after TDR~~	~~3.31~~
~~Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR~~	23
~~Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR~~	39
~~Charge-offs recognized upon permanent modification~~	$	—
~~Principal deferred~~	7
~~Principal forgiven~~	1
~~Balance of loans that redefaulted within one year of permanent modification(a)~~	$	43

~~(a)~~Represents loans permanently 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 dollar amount presented represents the balance of such loans at the end of the reporting period in which such loans defaulted.

~~127~~

information.

Active and suspended foreclosure

At March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, the Firm had residential real estate loans, excluding those insured by U.S. government agencies, with a carrying value of ~~$580~~$608 million and ~~$565~~$566 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure.

132

Auto and other

Delinquency is the primary credit quality indicator for retained auto and other loans. The following tables provide information on delinquency and gross ~~charge-offs for the three months ended March 31, 2023.~~charge-offs.


		March 31, 2023
	March 31, 2024																																															March 31, 2024
(in millions, except ratios)	(in millions, except ratios)	Term loans by origination year																		Revolving loans
		2023			2022			2021			2020			2019			Prior to 2019			Within the revolving period			Converted to term loans			Total
2024
2024																														2023		2022		2021		2020		Prior to 2020				Within the revolving period	Converted to term loans		Total
Loan delinquency	Loan delinquency
Current
Current
Current	Current	$	7,994		$	19,938		$	18,215		$	10,071		$	3,350		$	1,468		$	2,427		$	111		$	63,574
30–119 days past due	30–119 days past due	71			212			217			76			52			35			12			19			694
120 or more days past due	120 or more days past due	—			—			36			17			—			1			2			8			64
Total retained loans	Total retained loans	$	8,065		$	20,150		$	18,468		$	10,164		$	3,402		$	1,504		$	2,441		$	138		$	64,332
% of 30+ days past due to total retained loans(a)		0.88		%	1.05		%	1.12		%	0.74		%	1.53		%	2.39		%	0.57		%	19.57		%	1.08		%
% of 30+ days past due to total retained loans																													% of 30+ days past due to total retained loans	0.76	%	0.88	%	1.69	%	1.56	%	1.07	%	2.21	%		0.75	%	31.33	%	1.24	%
Gross charge-offs	Gross charge-offs	$	27		$	112		$	41		$	14		$	9		$	14		$	—		$	—		$	217

December 31, 2022

(in millions, except ratios) Term loans by origination year Revolving loans
2022 2021 2020 2019 2018 Prior to 2018 Within the revolving period Converted to term loans Total
Loan delinquency
Current $ 22,187 $ 20,212 $ 11,401 $ 3,991 $ 1,467 $ 578 $ 2,342 $ 118 $ 62,296
30–119 days past due 263 308 100 68 33 17 12 10 811
120 or more days past due — 53 24 — — 1 2 5 85
Total retained loans $ 22,450 $ 20,573 $ 11,525 $ 4,059 $ 1,500 $ 596 $ 2,356 $ 133 $ 63,192
% of 30+ days past due to total retained loans(a)
1.17 % 1.15 % 0.83 % 1.68 % 2.20 % 3.02 % 0.59 % 11.28 % 1.18 %

~~(a)~~At March 31, 2023 and December 31, 2022, auto and other loans excluded $65 million and $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.


	December 31, 2023
(in millions, except ratios)	Term loans by origination year																		Revolving loans
	2023			2022			2021			2020			2019			Prior to 2019			Within the revolving period			Converted to term loans			Total
Loan delinquency
Current	$	30,328		$	14,797		$	12,825		$	6,538		$	1,777		$	511		$	2,984		$	102		$	69,862
30–119 days past due	276			279			231			78			43			17			19			24			967
120 or more days past due	1			1			7			8			—			—			3			17			37
Total retained loans	$	30,605		$	15,077		$	13,063		$	6,624		$	1,820		$	528		$	3,006		$	143		$	70,866
% of 30+ days past due to total retained loans	0.91		%	1.86		%	1.75		%	1.15		%	2.36		%	3.22		%	0.73		%	28.67		%	1.39		%
Gross charge-offs	$	333		$	297		$	161		$	53		$	35		$	64		$	—		$	4		$	947

~~128~~133

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
		March 31, 2023		December 31, 2022			March 31, 2024	December 31, 2023
Nonaccrual loans(a)(b)(c)		$	133	$	129
Nonaccrual loans(a)(b)

Geographic region(d)
Geographic region(c)
Geographic region(c)
Geographic region(c)
California
California
California	California	$	9,736	$	9,689
Texas	Texas	7,434		7,216
Florida	Florida	5,013		4,847
New York	New York	4,411		4,345
Illinois	Illinois	2,916		2,839
New Jersey	New Jersey	2,292		2,219
Pennsylvania	Pennsylvania	1,823		1,822
Georgia	Georgia	1,760		1,708
Ohio		1,631		1,603
Arizona	Arizona	1,570		1,551
North Carolina
All other	All other	25,746		25,353
Total retained loans	Total retained loans	$	64,332	$	63,192

(a)At March 31, 2023 and December 31, 2022, nonaccrual loans excluded $54 million and $101 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA, of which $53 million and $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 March 31, 2023 and December 31, 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 charge down, the related allowance may be negative.

~~(c)~~(b)Interest income on nonaccrual loans recognized on a cash basis was not material for the three months ended March 31, ~~2023~~2024 and ~~2022~~2023.

~~(d)~~(c)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at March 31, ~~2023.~~2024.

Loan modifications

The Firm grants certain modifications of auto and other loans to borrowers experiencing financial ~~difficulty, which effective January 1, 2023, are reported as FDMs.~~ difficulty.

For the three months ended March 31, 2024 and 2023, auto and other FDMs were not ~~material~~material.

As of March 31, 2024 and December 31, 2023, there were no additional commitments to lend to borrowers modified as FDMs.

~~For the three months ended March 31, 2022, auto and other TDRs were not material.~~

~~129~~134

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 ~~2022~~2023 Form 10-K for further information on the credit card loan portfolio, including credit quality indicators.

The following tables provide information on delinquency and gross ~~charge-offs for the three months ended March 31, 2023.~~charge-offs.


(in millions, except ratios)	(in millions, except ratios)	March 31, 2023									(in millions, except ratios)	March 31, 2024
		Within the revolving period			Converted to term loans			Total				Within the revolving period		Converted to term loans		Total
Loan delinquency	Loan delinquency
Current and less than 30 days past due and still accruing
Current and less than 30 days past due and still accruing
Current and less than 30 days past due and still accruing	Current and less than 30 days past due and still accruing	$	176,353		$	702		$	177,055
30–89 days past due and still accruing	30–89 days past due and still accruing	1,462			65			1,527
90 or more days past due and still accruing	90 or more days past due and still accruing	1,464			33			1,497
Total retained loans	Total retained loans	$	179,279		$	800		$	180,079
Loan delinquency ratios	Loan delinquency ratios
% of 30+ days past due to total retained loans	% of 30+ days past due to total retained loans	1.63		%	12.25		%	1.68		%
% of 30+ days past due to total retained loans
% of 30+ days past due to total retained loans												2.17	%	13.04	%	2.23	%
% of 90+ days past due to total retained loans	% of 90+ days past due to total retained loans	0.82			4.13			0.83
Gross charge-offs	Gross charge-offs	$	1,075		$	36		$	1,111

(in millions, except ratios)
December 31, 2022
Within the revolving period Converted to term loans Total
Loan delinquency
Current and less than 30 days past due
and still accruing $ 181,793 $ 696 $ 182,489
30–89 days past due and still accruing 1,356 64 1,420
90 or more days past due and still accruing 1,230 36 1,266
Total retained loans $ 184,379 $ 796 $ 185,175
Loan delinquency ratios
% of 30+ days past due to total retained loans 1.40 % 12.56 % 1.45 %
% of 90+ days past due to total retained loans 0.67 4.52 0.68

~~130~~


(in millions, except ratios)	December 31, 2023
	Within the revolving period			Converted to term loans			Total
Loan delinquency
Current and less than 30 days past due and still accruing	$	205,731		$	882		$	206,613
30–89 days past due and still accruing	2,217			84			2,301
90 or more days past due and still accruing	2,169			40			2,209
Total retained loans	$	210,117		$	1,006		$	211,123
Loan delinquency ratios
% of 30+ days past due to total retained loans	2.09		%	12.33		%	2.14		%
% of 90+ days past due to total retained loans	1.03			3.98			1.05
Gross charge-offs	$	5,325		$	166		$	5,491

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)	March 31, 2023			December 31, 2022			(in millions, except ratios)	March 31, 2024		December 31, 2023
Geographic region(a)	Geographic region(a)
California
California
California	California	$	27,424		$	28,154
Texas	Texas	18,924			19,171
New York	New York	14,657			15,046
Florida	Florida	12,778			12,905
Illinois	Illinois	9,781			10,089
New Jersey	New Jersey	7,410			7,643
Ohio	Ohio	5,545			5,792
Colorado	Colorado	5,420			5,493
Pennsylvania	Pennsylvania	5,231			5,517
Arizona	Arizona	4,392			4,487
All other	All other	68,517			70,878
Total retained loans	Total retained loans	$	180,079		$	185,175
Percentage of portfolio based on carrying value with estimated refreshed FICO scores	Percentage of portfolio based on carrying value with estimated refreshed FICO scores
Equal to or greater than 660	Equal to or greater than 660	85.3		%	86.8		%
Equal to or greater than 660
Equal to or greater than 660									85.2	%	85.8	%
Less than 660	Less than 660	14.5			13.0
No FICO available	No FICO available	0.2			0.2

(a)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at March 31, ~~2023.~~2024.

135

Loan modifications

The Firm grants certain modifications of credit card loans to borrowers experiencing financial ~~difficulty, which effective January 1, 2023, are reported as FDMs.~~difficulty. These modifications may involve placing the ~~customer~~customer’s credit card account on a fixed payment plan, generally for 60 months, ~~and~~which typically ~~include~~includes reducing the interest rate on the credit card ~~under long-term programs.~~account. If the ~~cardholder~~borrower does not ~~comply with~~make the contractual payments when due under the modified payment terms, ~~then~~ the credit card loan continues to age and will ~~ultimately~~ be charged-off in accordance with the Firm's standard charge-off policy. In most cases, the Firm does not reinstate the borrower's line of credit.

Financial effects of FDMs

The following ~~table provides~~tables provide information on credit card loan modifications considered FDMs.

Three months ended March 31, 2023
(in millions)

Amortized
cost basis

% of loan modifications to total retained credit card loans

Financial effect of loan modification

Loan modification

Three months ended March 31, 2024
(in millions)

Loan modifications

Term extension and interest rate reduction(a)(b)

163

0.09

Term extension with a reduction in the weighted average contractual interest rate from 22.62% to 3.5%

Total

163

Total


Three months ended March 31, 2023 (in millions)	Amortized cost basis		% of loan modifications to total retained credit card loans		Financial effect of loan modifications

Loan modifications
Term extension and interest rate reduction(a)(b)	$	163	0.09	%	Term extension with a reduction in the weighted average contractual interest rate from 22.62% to 3.50%
Total	$	163

(a)Term extension includes credit card loans whose terms have been modified under long-term programs by placing the ~~customer~~customer's credit card account on a fixed payment plan.

(b)~~The interest~~Interest rates represent the weighted average at ~~enrollment.~~the time of modification.

For the ~~period~~three months ended March 31, 2024 and 2023, ~~the Firm also had $24 million of~~credit card loans subject to ~~a trial modification. The changes to the TDR accounting guidance eliminated the~~ ~~TDR reasonably expected and concession assessment criteria. Accordingly,~~ trial modifications ~~are~~were not ~~considered FDMs.~~material.

Payment status of FDMs and defaults

The following table provides information on the payment status of ~~FDMs.~~FDMs during the twelve months ended March 31, 2024 and the three months ended March 31, 2023.


March 31, 2023 (in millions)	~~Amortized cost basis~~

~~Current and less than 30 days past due and still accruing~~	$	~~113~~
~~30-89 days past due and still accruing~~	30
~~90 or more days past due and still accruing~~	20
~~Total~~	$	~~163~~


(in millions)	Amortized cost basis
	Twelve months ended March 31,		Three months ended March 31,
	2024		2023
Current and less than 30 days past due and still accruing	$	626	$	113
30-89 days past due and still accruing	65		30
90 or more days past due and still accruing	43		20
Total	$	734	$	163

FDMs that defaulted in the three months ended March 31, 2024 and were reported as FDMs in the twelve months prior to the default were not material. There were no FDMs that ~~re-defaulted~~defaulted during the three months ended March 31, ~~2023.~~2023 and were reported as FDMs on or after January 1, 2023, the date that the Firm adopted the changes to the TDR accounting guidance. Refer to Note 1 of JPMorgan Chase's 2023 Form 10-K for further information.

For credit card loans modified as FDMs, payment default is deemed to have occurred when the borrower misses two consecutive contractual payments. Defaulted modified credit card loans remain in the modification program and continue to be charged off in accordance with the Firm's 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.

~~131~~

~~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 March 31,~~

~~2022~~

~~Balance of new TDRs(a)~~

~~Weighted-average interest rate of loans – before TDR~~

~~18.00~~

~~Weighted-average interest rate of loans – after TDR~~

~~4.87~~

~~Balance of loans that redefaulted within one year of modification(b)~~

~~(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.

~~132~~136

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 ~~2022~~2023 Form 10-K for further information on these risk ratings.

Internal risk rating 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 three months ended March 31, 2023.~~charge-offs.


		Secured by real estate						Commercial and industrial						Other(a)						Total retained loans
		Secured by real estate
		Secured by real estate
		Secured by real estate																													Commercial and industrial				Other(a)					Total retained loans
(in millions, except ratios)	(in millions, except ratios)	Mar 31, 2023			Dec 31, 2022			Mar 31, 2023			Dec 31, 2022			Mar 31, 2023			Dec 31, 2022			Mar 31, 2023			Dec 31, 2022			(in millions, except ratios)	Mar 31, 2024		Dec 31, 2023		Mar 31, 2024		Dec 31, 2023			Mar 31, 2024		Dec 31, 2023			Mar 31, 2024		Dec 31, 2023
Loans by risk ratings	Loans by risk ratings
Investment-grade	Investment-grade	$	99,301		$	99,552		$	76,797		$	76,275		$	248,757		$	249,585		$	424,855		$	425,412
Investment-grade
Investment-grade
Noninvestment-grade:	Noninvestment-grade:
Noncriticized
Noncriticized
Noncriticized	Noncriticized	23,550			23,272			80,992			81,393			57,487			57,888			162,029			162,553
Criticized performing	Criticized performing	4,200			3,662			9,696			8,974			1,333			1,106			15,229			13,742
Criticized nonaccrual	Criticized nonaccrual	338			246			1,263			1,018			610			699			2,211			1,963
Total noninvestment-grade	Total noninvestment-grade	28,088			27,180			91,951			91,385			59,430			59,693			179,469			178,258
Total retained loans	Total retained loans	$	127,389		$	126,732		$	168,748		$	167,660		$	308,187		$	309,278		$	604,324		$	603,670
% of investment-grade to total retained loans	% of investment-grade to total retained loans	77.95		%	78.55		%	45.51		%	45.49		%	80.72		%	80.70		%	70.30		%	70.47		%	% of investment-grade to total retained loans	72.82	%	74.17	%	42.57	%	43.44	%		78.16	%	77.50	%		67.93	%	68.23	%
% of total criticized to total retained loans	% of total criticized to total retained loans	3.56			3.08			6.49			5.96			0.63			0.58			2.89			2.60
% of criticized nonaccrual to total retained loans	% of criticized nonaccrual to total retained loans	0.27			0.19			0.75			0.61			0.20			0.23			0.37			0.33

(a)Includes loans to SPEs, 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 and J.P. Morgan Wealth Management within ~~CCB~~).CCB), states and political subdivisions, as well as loans to nonprofits. As of March 31, 2024 and December 31, 2023, predominantly consisted of $105.2 billion and $106.9 billion, respectively, to individuals and individual entities; $87.3 billion and $91.2 billion, respectively, to SPEs; and $85.1 billion and $87.5 billion, respectively, to financial institutions. Refer to Note 14 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for more information on SPEs.


		Secured by real estate
	Secured by real estate																												Secured by real estate
(in millions)	(in millions)	March 31, 2023																		(in millions)	March 31, 2024
		Term loans by origination year												Revolving loans
		2023		2022		2021		2020		2019		Prior to 2019		Within the revolving period		Converted to term loans		Total
2024
2024																					2023	2022	2021	2020	Prior to 2020	Within the revolving period	Converted to term loans	Total
Loans by risk ratings	Loans by risk ratings
Investment-grade
Investment-grade
Investment-grade	Investment-grade	$	1,691	$	23,975	$	22,370	$	14,280	$	14,266	$	21,517	$	1,202	$	—	$	99,301
Noninvestment-grade	Noninvestment-grade	839		6,546		5,805		3,022		3,633		7,628		614		1		28,088
Total retained loans	Total retained loans	$	2,530	$	30,521	$	28,175	$	17,302	$	17,899	$	29,145	$	1,816	$	1	$	127,389
Gross charge-offs	Gross charge-offs	$	—	$	—	$	—	$	—	$	—	$	8	$	—	$	—	$	8


		Secured by real estate
	Secured by real estate																												Secured by real estate
(in millions)	(in millions)	December 31, 2022																		(in millions)	December 31, 2023
		Term loans by origination year												Revolving loans
		2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total
2023
2023																					2022	2021	2020	2019	Prior to 2019	Within the revolving period	Converted to term loans	Total
Loans by risk ratings	Loans by risk ratings
Investment-grade
Investment-grade
Investment-grade	Investment-grade	$	24,134	$	22,407	$	14,773	$	14,666	$	5,277	$	17,289	$	1,006	$	—	$	99,552
Noninvestment-grade	Noninvestment-grade	6,072		5,602		3,032		3,498		2,395		5,659		920		2		27,180
Total retained loans	Total retained loans	$	30,206	$	28,009	$	17,805	$	18,164	$	7,672	$	22,948	$	1,926	$	2	$	126,732
Gross charge-offs

~~133~~137


		Commercial and industrial
	Commercial and industrial																												Commercial and industrial
(in millions)	(in millions)	March 31, 2023																		(in millions)	March 31, 2024
		Term loans by origination year												Revolving loans
		2023		2022		2021		2020		2019		Prior to 2019		Within the revolving period		Converted to term loans		Total
2024
2024																					2023	2022	2021	2020	Prior to 2020	Within the revolving period	Converted to term loans	Total
Loans by risk ratings	Loans by risk ratings
Investment-grade
Investment-grade
Investment-grade	Investment-grade	$	8,780	$	14,073	$	7,567	$	2,643	$	1,396	$	1,450	$	40,887	$	1	$	76,797
Noninvestment-grade	Noninvestment-grade	5,745		20,505		11,161		2,988		2,154		1,409		47,906		83		91,951
Total retained loans	Total retained loans	$	14,525	$	34,578	$	18,728	$	5,631	$	3,550	$	2,859	$	88,793	$	84	$	168,748
Gross charge-offs	Gross charge-offs	$	—	$	—	$	16	$	1	$	2	$	3	$	63	$	1	$	86


		Commercial and industrial
	Commercial and industrial																												Commercial and industrial
(in millions)	(in millions)	December 31, 2022																		(in millions)	December 31, 2023
		Term loans by origination year												Revolving loans
		2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total
2023
2023																					2022	2021	2020	2019	Prior to 2019	Within the revolving period	Converted to term loans	Total
Loans by risk ratings	Loans by risk ratings
Investment-grade
Investment-grade
Investment-grade	Investment-grade	$	21,072	$	8,338	$	3,045	$	1,995	$	748	$	989	$	40,087	$	1	$	76,275
Noninvestment-grade	Noninvestment-grade	24,088		12,444		3,459		2,506		525		1,014		47,267		82		91,385
Total retained loans	Total retained loans	$	45,160	$	20,782	$	6,504	$	4,501	$	1,273	$	2,003	$	87,354	$	83	$	167,660
Gross charge-offs

Other(a)

(in millions) March 31, 2023
Term loans by origination year Revolving loans
2023 2022 2021 2020 2019 Prior to 2019 Within the revolving period Converted to term loans Total
Loans by risk ratings
Investment-grade $ 10,340 $ 25,435 $ 14,913 $ 12,359 $ 4,370 $ 8,158 $ 170,325 $ 2,857 $ 248,757
Noninvestment-grade 2,794 14,432 6,165 1,692 692 830 32,821 4 59,430
Total retained loans $ 13,134 $ 39,867 $ 21,078 $ 14,051 $ 5,062 $ 8,988 $ 203,146 $ 2,861 $ 308,187
Gross charge-offs $ — $ — $ 5 $ 5 $ — $ — $ 1 $ — $ 11


		Other(a)
	Other(a)																												Other(a)
(in millions)	(in millions)	December 31, 2022																		(in millions)	March 31, 2024
		Term loans by origination year												Revolving loans
		2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total
2024
2024																					2023	2022	2021	2020	Prior to 2020	Within the revolving period	Converted to term loans	Total
Loans by risk ratings	Loans by risk ratings
Investment-grade
Investment-grade
Investment-grade	Investment-grade	$	32,121	$	15,864	$	13,015	$	4,529	$	2,159	$	7,251	$	171,049	$	3,597	$	249,585
Noninvestment-grade	Noninvestment-grade	16,829		7,096		1,821		699		451		475		32,240		82		59,693
Total retained loans	Total retained loans	$	48,950	$	22,960	$	14,836	$	5,228	$	2,610	$	7,726	$	203,289	$	3,679	$	309,278
Gross charge-offs


	Other(a)
(in millions)	December 31, 2023
	Term loans by origination year												Revolving loans
	2023		2022		2021		2020		2019		Prior to 2019		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	38,338	$	18,034	$	10,033	$	10,099	$	3,721	$	6,662	$	176,728	$	2,194	$	265,809
Noninvestment-grade	14,054		8,092		6,169		2,172		811		2,001		43,801		59		77,159
Total retained loans	$	52,392	$	26,126	$	16,202	$	12,271	$	4,532	$	8,663	$	220,529	$	2,253	$	342,968
Gross charge-offs	$	5	$	298	$	8	$	8	$	—	$	8	$	13	$	—	$	340

~~134~~138

The following table presents additional information on retained loans secured by real estate, which consists of loans secured wholly or substantially by a lien or liens on real property at origination.


(in millions, except ratios)	(in millions, except ratios)	Multifamily						Other commercial						Total retained loans secured by real estate						(in millions, except ratios)	Multifamily				Other commercial				Total retained loans secured by real estate
		Mar 31, 2023			Dec 31, 2022			Mar 31, 2023			Dec 31, 2022			Mar 31, 2023			Dec 31, 2022				Mar 31, 2024		Dec 31, 2023		Mar 31, 2024		Dec 31, 2023		Mar 31, 2024		Dec 31, 2023
Retained loans secured by real estate	Retained loans secured by real estate	$	79,374		$	79,139		$	48,015		$	47,593		$	127,389		$	126,732
Criticized	Criticized	2,212			1,916			2,326			1,992			4,538			3,908
% of criticized to total retained loans secured by real estate	% of criticized to total retained loans secured by real estate	2.79		%	2.42		%	4.84		%	4.19		%	3.56		%	3.08		%	% of criticized to total retained loans secured by real estate	3.60	%	3.57	%	8.70	%	6.65	%	5.53	%	4.74	%
Criticized nonaccrual	Criticized nonaccrual	$	60		$	51		$	278		$	195		$	338		$	246
% of criticized nonaccrual loans to total retained loans secured by real estate	% of criticized nonaccrual loans to total retained loans secured by real estate	0.08		%	0.06		%	0.58		%	0.41		%	0.27		%	0.19		%	% of criticized nonaccrual loans to total retained loans secured by real estate	0.09	%	0.08	%	0.81	%	0.53	%	0.36	%	0.25	%

Geographic distribution and delinquency

The following table provides information on the geographic distribution and delinquency for retained wholesale loans.


		Secured by real estate				Commercial and industrial				Other				Total retained loans
	Secured by real estate																				Secured by real estate			Commercial and industrial			Other			Total retained loans
(in millions)	(in millions)	Mar 31, 2023		Dec 31, 2022		Mar 31, 2023		Dec 31, 2022		Mar 31, 2023		Dec 31, 2022		Mar 31, 2023		Dec 31, 2022		(in millions)	Mar 31, 2024	Dec 31, 2023		Mar 31, 2024	Dec 31, 2023		Mar 31, 2024	Dec 31, 2023		Mar 31, 2024	Dec 31, 2023
Loans by geographic distribution(a)	Loans by geographic distribution(a)
Total U.S.
Total U.S.
Total U.S.	Total U.S.	$	124,360	$	123,740	$	127,826	$	125,324	$	229,930	$	230,525	$	482,116	$	479,589
Total non-U.S.	Total non-U.S.	3,029		2,992		40,922		42,336		78,257		78,753		122,208		124,081
Total retained loans	Total retained loans	$	127,389	$	126,732	$	168,748	$	167,660	$	308,187	$	309,278	$	604,324	$	603,670
Loan delinquency	Loan delinquency
Current and less than 30 days past due and still accruing	Current and less than 30 days past due and still accruing	$	126,781	$	126,083	$	166,249	$	165,415	$	305,985	$	307,511	$	599,015	$	599,009
Current and less than 30 days past due and still accruing
Current and less than 30 days past due and still accruing
30–89 days past due and still accruing	30–89 days past due and still accruing	270		402		1,160		1,127		1,527		1,015		2,957		2,544
90 or more days past due and still accruing(b)	90 or more days past due and still accruing(b)	—		1		76		100		65		53		141		154
Criticized nonaccrual	Criticized nonaccrual	338		246		1,263		1,018		610		699		2,211		1,963
Total retained loans	Total retained loans	$	127,389	$	126,732	$	168,748	$	167,660	$	308,187	$	309,278	$	604,324	$	603,670

(a)The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.

(b)Represents loans that are considered well-collateralized and therefore still accruing interest.

Nonaccrual loans

The following table provides information on retained wholesale nonaccrual loans.


(in millions)	(in millions)	Secured by real estate				Commercial and industrial				Other				Total retained loans				(in millions)	Secured by real estate		Commercial and industrial		Other		Total retained loans
		Mar 31, 2023		Dec 31, 2022		Mar 31, 2023		Dec 31, 2022		Mar 31, 2023		Dec 31, 2022		Mar 31, 2023		Dec 31, 2022			Mar 31, 2024	Dec 31, 2023	Mar 31, 2024	Dec 31, 2023	Mar 31, 2024	Dec 31, 2023	Mar 31, 2024	Dec 31, 2023
Nonaccrual loans	Nonaccrual loans
With an allowance	With an allowance	$	219	$	172	$	795	$	686	$	384	$	487	$	1,398	$	1,345
With an allowance
With an allowance
Without an allowance(a)	Without an allowance(a)	119		74		468		332		226		212		813		618
Total nonaccrual loans(b)	Total nonaccrual loans(b)	$	338	$	246	$	1,263	$	1,018	$	610	$	699	$	2,211	$	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~~were not material for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023.

~~135~~139

Loan modifications

The Firm grants certain modifications of wholesale loans to borrowers experiencing financial ~~difficulty,~~difficulty.

Financial effects of FDMs

For the three months ended March 31, 2024, Secured by real estate FDMs were $25 million. The FDMs were primarily in the form of other-than-insignificant payment deferrals and interest rate reductions, which ~~effective January 1,~~included reducing the weighted-average contractual interest by 100 bps and providing payment deferrals with delayed amounts primarily recaptured at maturity. For the three months ended March 31, 2023, ~~are reported as FDMs.~~ Secured by real estate FDMs were not material.

The following ~~table provides~~tables provide information about Commercial and industrial loan modifications considered ~~FDMs.~~FDMs during the three months ended March 31, 2024 and 2023.

Three months ended March 31, 2023
(in millions) Commercial and industrial
Amortized cost basis % of loan modifications to total retained commercial and industrial wholesale loans Financial effect of loan modification
Loan modification
Single modifications
Term extension $ 280 0.17 % Extended loans by a weighted-average of 8 months
Other-than-insignificant payment delay 49 0.03 % Provided payment deferrals with delayed amounts primarily added to end of the original loan terms
Multiple modifications
Term extension and principal forgiveness $ 44 0.03 % Extended loans by a weighted-average of 64 months and reduced amortized cost basis of the loans by $23 million
Total $ 373


			Commercial and industrial
Three months ended March 31, 2024 (in millions)				Amortized cost basis		% of loan modifications to total retained Commercial and industrial loans		Financial effect of loan modifications
Single modifications
Term extension				$	382	0.23	%	Extended loans by a weighted average of 11 months
Other-than-insignificant payment deferral				84		0.05		Provided payment deferrals with delayed amounts largely recaptured at the end of the deferral period
Multiple modifications
Other-than-insignificant payment deferral and term extension				94		0.06		Provided payment deferrals with delayed amounts primarily recaptured at maturity and extended loans by a weighted average of 20 months
Other(a)				4		—		NM




Total	$	564


Three months ended March 31, 2023 (in millions)	Commercial and industrial
	Amortized cost basis		% of loan modifications to total retained Commercial and industrial loans		Financial effect of loan modifications

Single modifications

Term extension	$	280	0.17	%	Extended loans by a weighted average of 8 months
Other-than-insignificant payment deferral	49		0.03		Provided payment deferrals with delayed amounts recaptured primarily at maturity

Multiple modifications
Term extension and principal forgiveness	44		0.03		Extended loans by a weighted average of 64 months and reduced amortized cost basis of the loans by $23 million
Total	$	373

(a)Includes a loan with multiple modifications.

~~The following table provides information on~~For the ~~payment~~three months ended March 31, 2024 and 2023, Other loan class FDMs were $20 million and $63 million, respectively and were primarily in the form of term extensions, which included extending the weighted-average life of the loans by 11 months and 4 months, respectively.

Payment status of ~~Commercial~~FDMs and ~~industrial FDMs.~~


As of March 31, 2023 (in millions)	~~Amortized cost basis~~

~~Current and less than 30 days past due and still accruing~~	$	~~212~~
~~30-89 days past due and still accruing~~	4
~~90 or more days past due and still accruing~~	—
~~Criticized nonaccrual~~	~~157~~
~~Total~~	$	~~373~~

defaults

The following table provides information onby loan class about the payment status of FDMs during the twelve months ended March 31, 2024 and the three months ended March 31, 2023.


	Amortized cost basis
	Twelve months ended March 31, 2024						Three months ended March 31, 2023(a)
(in millions)	Secured by real estate		Commercial and industrial		Other		Commercial and industrial		Other
Current and less than 30 days past due and still accruing	$	110	$	1,033	$	383	$	212	$	—
30-89 days past due and still accruing	7		29		12		4		—

Criticized nonaccrual	46		366		204		157		63
Total	$	163	$	1,428	$	599	$	373	$	63

(a)Secured by real estate FDMs were not material for the three months ended March 31, 2023.

There were $77 million FDMs that defaulted in the three months ended March 31, 2024 and were reported as FDMs in the twelve months prior to default, primarily in the form of term extensions in Commercial and ~~industrial~~industrial.

Total FDMs that ~~re-defaulted~~defaulted during the three months ended March 31, ~~2023.~~


Three months ended March 31, 2023 (in millions)	~~Amortized cost basis~~

~~Loan modification~~

~~Term extension~~	4



~~Total(a)~~	$	4

~~(a)Represents~~2023 and were reported as FDMs on or after January 1, 2023, the date that the Firm adopted the changes to the TDR accounting guidance were ~~30 days or more past due at March 31, 2023.~~not material.

As of March 31, 2024 and December 31, 2023, additional unfunded commitments ~~to lend~~on modified loans to borrowers experiencing financial difficulty ~~whose~~were $577 million and $1.8 billion, respectively, in Commercial and industrial ~~loans have been modified as FDMs were $909 million.~~

~~FDMs to borrowers~~and $29 million and $4 million, respectively, in ~~the~~ Other loan class were $63 million for the three months ended March 31, 2023. The financial effect of FDMs extended the loans by a weighted-average of four months and were generally in the form of term extensions.class. There were no additional commitments to borrowers experiencing financial difficulty whose loans have been modified as ~~FDMs.~~

~~For the three months ended March 31, 2023,~~FDMs in Secured by real ~~estate FDMs were not material and there were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs.~~

~~Prior to January 1, 2023, certain loan modifications were considered TDRs.~~

F~~or the three months ended March 31, 2022, n~~ew TDRs were $418 million and reflected the extension of maturity dates, covenant waivers, receipt of assets in partial satisfaction of the loan and deferral of principal and interest payments, predominantly in the Commercial and Industrial and Other loan classes. For the three months ended March 31, 2022, the impact of these modifications were not material to the Firm.

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 is greater than those previously considered TDRs.

estate.

~~136~~140

Note 12 – 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.

Refer to Note 13 of JPMorgan Chase's ~~2022~~2023 Form 10-K for a detailed discussion of the allowance for credit losses and the related accounting policies.

~~137~~141

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 ~~2022~~2023 Form 10-K and Note 9 of this Form 10-Q for further information on the allowance for credit losses on investment securities.


		2023								2022
		2024
		2024
		2024																						2023
Three months ended March 31, (in millions)	Three months ended March 31, (in millions)	Consumer, excluding credit card		Credit card		Wholesale		Total			Consumer, excluding credit card		Credit card		Wholesale		Total		Three months ended March 31, (in millions)	Consumer, excluding credit card	Credit card	Wholesale	Total		Consumer, excluding credit card	Credit card	Wholesale	Total
Allowance for loan losses	Allowance for loan losses
Beginning balance at January 1,
Beginning balance at January 1,
Beginning balance at January 1,	Beginning balance at January 1,	$	2,040	$	11,200	$	6,486	$	19,726		$	1,765	$	10,250	$	4,371	$	16,386
Cumulative effect of a change in accounting principle(a)	Cumulative effect of a change in accounting principle(a)	(489)		(100)		2		(587)			NA						NA		Cumulative effect of a change in accounting principle(a)	NA			NA		(489)	(100)	2	(587)
Gross charge-offs	Gross charge-offs	235		1,111		105		1,451			204		720		52		976
Gross recoveries collected	Gross recoveries collected	(103)		(189)		(22)		(314)			(158)		(214)		(22)		(394)
Net charge-offs/(recoveries)	Net charge-offs/(recoveries)	132		922		83		1,137			46		506		30		582
Provision for loan losses	Provision for loan losses	247		1,222		578		2,047			175		506		687		1,368
Other	Other	—		—		4		4			—		—		20		20
Ending balance at March 31,	Ending balance at March 31,	$	1,666	$	11,400	$	6,987	$	20,053		$	1,894	$	10,250	$	5,048	$	17,192
Allowance for lending-related commitments	Allowance for lending-related commitments
Beginning balance at January 1,	Beginning balance at January 1,	$	76	$	—	$	2,306	$	2,382		$	113	$	—	$	2,148	$	2,261
Beginning balance at January 1,
Beginning balance at January 1,
Provision for lending-related commitments	Provision for lending-related commitments	1		—		(14)		(13)			(2)		—		98		96
Other	Other	—		—		1		1			—		—		1		1
Ending balance at March 31		$	77	$	—	$	2,293	$	2,370		$	111	$	—	$	2,247	$	2,358
Ending balance at March 31,
Total allowance for investment securities	Total allowance for investment securities	NA						90			NA						41
Total allowance for credit losses(b)		$	1,743	$	11,400	$	9,280	$	22,513		$	2,005	$	10,250	$	7,295	$	19,591
Total allowance for credit losses(b)(c)
Allowance for loan losses by impairment methodology	Allowance for loan losses by impairment methodology
Asset-specific(c)		$	(1,030)	$	—	$	437	$	(593)		$	(644)	$	262	$	485	$	103
Asset-specific(d)
Asset-specific(d)
Asset-specific(d)
Portfolio-based	Portfolio-based	2,696		11,400		6,550		20,646			2,538		9,988		4,563		17,089
Total allowance for loan losses	Total allowance for loan losses	$	1,666	$	11,400	$	6,987	$	20,053		$	1,894	$	10,250	$	5,048	$	17,192

Loans by impairment methodology	Loans by impairment methodology
Asset-specific(c)		$	3,560	$	—	$	2,189	$	5,749		$	13,186	$	901	$	2,823	$	16,910
Loans by impairment methodology
Loans by impairment methodology
Asset-specific(d)
Asset-specific(d)
Asset-specific(d)
Portfolio-based	Portfolio-based	296,887		180,079		602,135		1,079,101			282,975		151,382		567,130		1,001,487
Total retained loans	Total retained loans	$	300,447	$	180,079	$	604,324	$	1,084,850		$	296,161	$	152,283	$	569,953	$	1,018,397
Collateral-dependent loans	Collateral-dependent loans
Net charge-offs	Net charge-offs	$	4	$	—	$	18	$	22		$	(5)	$	—	$	7	$	2
Net charge-offs
Net charge-offs
Loans measured at fair value of collateral less cost to sell	Loans measured at fair value of collateral less cost to sell	3,539		—		586		4,125			4,144		—		665		4,809
Allowance for lending-related commitments by impairment methodology	Allowance for lending-related commitments by impairment methodology
Asset-specific	Asset-specific	$	—	$	—	$	45	$	45		$	—	$	—	$	139	$	139
Asset-specific
Asset-specific
Portfolio-based	Portfolio-based	77		—		2,248		2,325			111		—		2,108		2,219
Total allowance for lending-related commitments(d)		$	77	$	—	$	2,293	$	2,370		$	111	$	—	$	2,247	$	2,358
Total allowance for lending-related commitments(e)
Lending-related commitments by impairment methodology	Lending-related commitments by impairment methodology
Asset-specific	Asset-specific	$	—	$	—	$	401	$	401		$	—	$	—	$	767	$	767
Portfolio-based(e)		21,569		—		466,600		488,169			31,847		—		463,570		495,417
Asset-specific
Asset-specific
Portfolio-based(f)
Total lending-related commitments	Total lending-related commitments	$	21,569	$	—	$	467,001	$	488,570		$	31,847	$	—	$	464,337	$	496,184

(a)Represents the impact to the allowance for loan losses upon the adoption of the Financial Instruments - Credit Losses: Troubled Debt Restructuringsaccounting ~~guidance~~.guidance. Refer to Note 1 of JPMorgan Chase's 2023 Form 10-K for further information.

(b)At March 31, 2024 and 2023, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $274 million and $20 million, respectively, associated with certain accounts receivable in CIB. At March 31, 2023, the Firm also had an allowance for credit losses of $241 million associated with Other assets in ~~Corporate and $20 million~~Corporate.

(c)As of March 31, 2024, included the allowance for credit losses associated with ~~certain accounts receivable in CIB.~~First Republic.

~~(c)~~(d)Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated ~~loans for all periods presented. Prior periods also include non collateral-dependent TDRs or reasonably expected TDRs and modified PCD~~ loans.

~~(d)~~(e)The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets.

~~(e)~~(f)At March 31, ~~2023~~2024 and ~~2022,~~2023, lending-related commitments excluded ~~$16.0~~$17.7 billion and ~~$15.3~~$16.0 billion, respectively, for the consumer, excluding credit card portfolio segment; ~~$861.2~~$943.9 billion and ~~$757.3~~$861.2 billion, respectively, for the credit card portfolio segment; and ~~$17.5~~$20.9 billion and ~~$32.9~~$17.5 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments.

~~138~~142

Discussion of changes in the allowance

The allowance for credit losses as of March 31, 2024 was relatively flat when compared to December 31, 2023, reflecting:

•a net addition of ~~$1.1 billion from December 31, 2022. The~~$44 million in consumer, consisting of:

–$153 million in Card Services, primarily due to seasoning of newer vintages, largely offset by reduced borrower uncertainty,

predominantly offset by:

~~The net addition to the allowance~~ ~~consisted of:~~

•~~$726 million~~ in ~~wholesale, which also reflected net downgrade activity, and an addition to the allowance for credit losses associated with Other assets in Corporate, and~~

•~~$416 million~~ in ~~consumer~~.

The following table presents the Firm’s central case assumptions ~~reflected U.S. unemployment rates and U.S. real GDP as follows:~~for the periods presented:


		Assumptions at March 31, 2023
		2Q23		4Q23		2Q24
	Central case assumptions at March 31, 2024														Central case assumptions at March 31, 2024
	2Q24											2Q24		4Q24	2Q25
U.S. unemployment rate(a)	U.S. unemployment rate(a)	3.5	%	4.1	%	4.9	%	U.S. unemployment rate(a)	3.9	%	4.2	%	4.1	%
YoY growth in U.S. real GDP(b)	YoY growth in U.S. real GDP(b)	2.0	%	0.4	%	—	%	YoY growth in U.S. real GDP(b)	2.6	%	0.9	%	1.2	%

		Assumptions at December 31, 2022
		2Q23		4Q23		2Q24
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
		Central case assumptions at December 31, 2023
	2Q24											2Q24		4Q24	2Q25
U.S. unemployment rate(a)	U.S. unemployment rate(a)	3.8	%	4.3	%	5.0	%	U.S. unemployment rate(a)	4.1	%	4.4	%	4.1	%
YoY growth in U.S. real GDP(b)	YoY growth in U.S. real GDP(b)	1.5	%	0.4	%	—	%	YoY growth in U.S. real GDP(b)	1.8	%	0.7	%	1.0	%

(a)Reflects quarterly average of forecasted U.S. unemployment rate.

(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.

Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.

Refer to Note 13 and Note 10 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a description of the policies, methodologies and judgments used to determine the Firm’s ~~allowances~~allowance for credit losses on loans, lending-related commitments, and investment securities.

Refer to Consumer Credit Portfolio on pages ~~50-53,~~54-57, Wholesale Credit Portfolio on pages ~~54-62~~58-66 and Note 11 for additional information on the consumer and wholesale credit portfolios.

Refer to Critical Accounting Estimates Used by the Firm on pages ~~74-76~~78-80 for further information on the allowance for credit losses and related management judgments.

~~139~~143

Note 13 – Variable interest entities

Refer to Note 1 and Note 14 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a further description of the Firm's accounting policies regarding consolidation of and involvement with VIEs.

The following table summarizes the most significant types of Firm-sponsored VIEs by business segment. The Firm considers a “Firm-sponsored” VIE to include any entity where: (1) JPMorgan Chase is the primary beneficiary of the structure; (2) the VIE is used by JPMorgan Chase to securitize Firm assets; (3) the VIE issues financial instruments with the JPMorgan Chase name; or (4) the entity is a JPMorgan Chase–administered asset-backed commercial paper conduit.


Line of Business	Transaction Type	Activity	Form 10-Q page references
CCB	Credit card securitization trusts	Securitization of originated credit card receivables	~~140~~144
	Mortgage securitization trusts	Servicing and securitization of both originated and purchased residential mortgages	~~140-142~~144–146
CIB	Mortgage and other securitization trusts	Securitization of both originated and purchased residential and commercial mortgages, and other consumer loans	~~140-142~~144–146
	Multi-seller conduits	Assisting clients in accessing the financial markets in a cost-efficient manner and structuring transactions to meet investor needs	~~142~~146
	Municipal bond vehicles	Financing of municipal bond investments	~~142~~146

~~The Firm~~In addition, CIB also invests in and provides financing and other services to VIEs sponsored by third parties. Refer to pages ~~143-144~~147–148 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.

~~140~~144

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. Refer to page 150 of this Note for information on the securitization-related loan delinquencies and liquidation losses.


		Principal amount outstanding						JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
March 31, 2023 (in millions)		Total assets held by securitization VIEs		Assets held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets		Investment securities		Other financial assets		Total interests held by JPMorgan Chase
	Principal amount outstanding																			Principal amount outstanding					JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
March 31, 2024 (in millions)																March 31, 2024 (in millions)	Total assets held by securitization VIEs	Assets held in consolidated securitization VIEs	Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets	Investment securities	Other financial assets	Total interests held by JPMorgan Chase
Securitization-related(a)	Securitization-related(a)
Residential mortgage:	Residential mortgage:
Residential mortgage:
Residential mortgage:
Prime/Alt-A and option ARMs
Prime/Alt-A and option ARMs
Prime/Alt-A and option ARMs	Prime/Alt-A and option ARMs	$	55,451	$	735	$	37,836	$	839	$	1,959	$	—	$	2,798
Subprime	Subprime	9,515		—		1,701		16		—		—		16
Commercial and other(b)	Commercial and other(b)	163,184		—		126,194		795		5,398		663		6,856
Total	Total	$	228,150	$	735	$	165,731	$	1,650	$	7,357	$	663	$	9,670


		Principal amount outstanding						JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
December 31, 2022 (in millions)		Total assets held by securitization VIEs		Assets held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets		Investment securities		Other financial assets		Total interests held by JPMorgan Chase
	Principal amount outstanding																			Principal amount outstanding					JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
December 31, 2023 (in millions)																December 31, 2023 (in millions)	Total assets held by securitization VIEs	Assets held in consolidated securitization VIEs	Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets	Investment securities	Other financial assets	Total interests held by JPMorgan Chase
Securitization-related(a)	Securitization-related(a)
Residential mortgage:	Residential mortgage:
Residential mortgage:
Residential mortgage:
Prime/Alt-A and option ARMs
Prime/Alt-A and option ARMs
Prime/Alt-A and option ARMs	Prime/Alt-A and option ARMs	$	55,362	$	754	$	37,058	$	744	$	1,918	$	—	$	2,662
Subprime	Subprime	9,709		—		1,743		10		—		—		10
Commercial and other(b)	Commercial and other(b)	164,915		—		127,037		888		5,373		670		6,931
Total	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 $3$134 million and ~~$134~~$52 million at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively, and subordinated securities which were ~~zero~~$119 million and ~~$34~~$38 million at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, 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 March 31, ~~2023~~2024 and December 31, ~~2022, 83% and 84%, respectively,~~2023, 77% 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 ~~$2.8~~$2.4 billion and ~~$2.6~~$2.5 billion of investment-grade retained interests at March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively, and $115 million and $88 million of noninvestment-grade retained interests ~~were not material~~ at ~~both~~ March 31, ~~2023~~2024 and December 31, ~~2022.~~2023, respectively. The retained interests in commercial and other securitization trusts consisted of $5.8 billion and $6.1 billion of investment-grade retained interests at ~~both~~ March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively, and ~~$1.1~~$1.7 billion of noninvestment-grade retained interests at both March 31, ~~2023~~2024 and December 31, ~~2022.~~2023.

~~141~~145

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 March 31,

(in millions)

2023

2022

Transfers of securities to VIEs

U.S. GSEs and government agencies

3,406

6,076

U.S. GSEs and government agencies

The Firm did not transfer any private label securities to re-securitization VIEs during the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, respectively and retained interests in any such Firm-sponsored VIEs as of March 31, ~~2023~~2024 and December 31, ~~2022~~2023 were not material.

The following table presents information on the Firm's interests in nonconsolidated re-securitization VIEs.

Nonconsolidated
re-securitization VIEs

(in millions)

March 31, 2023

December 31, 2022

(in millions)

March 31, 2024

December 31, 2023

U.S. GSEs and government agencies

Interest in VIEs

3,411

2,580

Interest in VIEs

As of March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, 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 ~~$10.4~~$4.6 billion and ~~$13.8~~$9.8 billion of the commercial paper issued by the Firm-administered multi-seller conduits at March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, 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 ~~$9.8~~$11.2 billion and ~~$10.6~~$10.8 billion at March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, respectively, and are reported as off-balance sheet lending-related commitments in other unfunded commitments to extend credit. Refer to Note 22 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.

~~142~~146

Consolidated VIE assets and liabilities

The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of March 31, ~~2023,~~2024 and December 31, ~~2022.~~2023.


		Assets									Liabilities
March 31, 2023 (in millions)		Trading assets		Loans			Other(c)		Total assets(d)		Beneficial interests in VIE assets(e)		Other(f)		Total liabilities
	Assets																																Assets												Liabilities
March 31, 2024 (in millions)																	March 31, 2024 (in millions)		Trading assets			Loans						Other(c)			Total assets(d)						Beneficial interests in VIE assets(e)			Other(f)			Total liabilities
VIE program type	VIE program type
Firm-sponsored credit card trusts
Firm-sponsored credit card trusts
Firm-sponsored credit card trusts	Firm-sponsored credit card trusts	$	—	$	8,948		$	84	$	9,032	$	999	$	2	$	1,001	$	—		$	12,994					$	169		$	13,163					$	5,323		$	10		$	5,333
Firm-administered multi-seller conduits	Firm-administered multi-seller conduits	4		22,397			162		22,563		12,175		29		12,204		Firm-administered multi-seller conduits		1			24,800						180			24,981						20,366			28			20,394
Municipal bond vehicles	Municipal bond vehicles	1,965		—			24		1,989		1,593		8		1,601		Municipal bond vehicles		2,075			—						29			2,104						2,264			12			2,276
Mortgage securitization entities(a)	Mortgage securitization entities(a)	—		764			10		774		136		61		197		Mortgage securitization entities(a)		—			681						7			688						122			56			178
Other	Other	64		1,133		(b)	253		1,450		—		155				Other		153			1,584		(b)	263			2,000						—			176
Total	Total	$	2,033	$	33,242		$	533	$	35,808	$	14,903	$	255	$	15,158	Total		$	2,229		$	40,059					$	648		$	42,936					$	28,075		$	282		$	28,357

		Assets									Liabilities
December 31, 2022 (in millions)		Trading assets		Loans			Other(c)		Total assets(d)		Beneficial interests in VIE assets(e)		Other(f)		Total liabilities
		Assets
		Assets
		Assets																																Liabilities
December 31, 2023 (in millions)																	December 31, 2023 (in millions)		Trading assets			Loans						Other(c)			Total assets(d)						Beneficial interests in VIE assets(e)			Other(f)			Total liabilities
VIE program type	VIE program type
Firm-sponsored credit card trusts
Firm-sponsored credit card trusts
Firm-sponsored credit card trusts	Firm-sponsored credit card trusts	$	—	$	9,699		$	100	$	9,799	$	1,999	$	2	$	2,001	$	—		$	9,460					$	117		$	9,577					$	2,998		$	6		$	3,004
Firm-administered multi-seller conduits	Firm-administered multi-seller conduits	—		22,819			170		22,989		9,236		39		9,275		Firm-administered multi-seller conduits		1			27,372						194			27,567						17,781			30			17,811
Municipal bond vehicles	Municipal bond vehicles	2,089		—			7		2,096		1,232		10		1,242		Municipal bond vehicles		2,056			—						22			2,078						2,116			11			2,127
Mortgage securitization entities(a)	Mortgage securitization entities(a)	—		781			10		791		143		67		210		Mortgage securitization entities(a)		—			693						8			701						125			57			182
Other	Other	62		1,112		(b)	263		1,437		—		161				Other		113			86						250			449						—			159
Total	Total	$	2,151	$	34,411		$	550	$	37,112	$	12,610	$	279	$	12,889	Total		$	2,170		$	37,611					$	591		$	40,372					$	23,020		$	263		$	23,283

(a)Includes residential mortgage securitizations.

(b)Primarily includes ~~purchased supply chain finance receivables and purchased auto loan securitizations~~consumer loans 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,~~as “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~~$5.4 billion and ~~$2.1~~$3.1 billion at March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, 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, alternative energy, and other projects. These entities are primarily considered VIEs. A third party is typically the general ~~partner or managing~~

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 ~~$30.2~~$33.1 billion and $35.1 billion at ~~both~~ March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, of which ~~$10.7~~$14.3 billion and ~~$10.6~~$14.7 billion was unfunded at March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, 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 ~~2022~~2023 Form 10-K for further information on affordable housing tax credits and Note 22 of this Form 10-Q for more information on off-balance sheet lending-related commitments.

Effective January 1, 2024, the Firm adopted updates to the Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method guidance which expanded the types of tax-oriented investments, beyond

~~143~~147

affordable housing tax credit investments, that the Firm can elect on a program by program basis, to be accounted for using the proportional amortization method. Refer to Note 1 for further information.

The proportional amortization method requires the cost of eligible investments, within an elected program, be amortized in proportion to the tax benefits received with the resulting amortization reported directly in income tax expense, which aligns with the associated tax credits and other tax benefits. Investments must meet certain criteria to be eligible, including that substantially all of the return is from income tax credits and other income tax benefits.

In addition, under this method deferred taxes are generally not recorded as the investment is now amortized in proportion to the income tax credits and other income tax benefits received. Delayed equity contributions that are unconditional and legally binding or conditional and probable of occurring are recorded in other liabilities with a corresponding increase in the carrying value of the investment. The guidance also requires a reevaluation of eligible investments when significant modifications or events occur that result in a change in the nature of the investment or a change in the Firm's relationship with the underlying project. During the period, there were no significant modifications or events that resulted in a change in the nature of an eligible investment or a change in the Firm's relationship with the underlying project.

The following table provides information on tax-oriented investments for which the Firm elected to apply the proportional amortization method.


As of or for the three months ended, (in millions)	Alternative energy and affordable housing programs
	March 31, 2024		December 31, 2023(d)
Programs for which the Firm elected proportional amortization:
Carrying value(a)	$	29,821	$	14,644
Tax credits and other tax benefits(b)	1,266		566
Investments that qualify to be accounted for using proportional amortization:
Amortization gains/(losses) recognized as a component of income tax expense	(1,016)		(399)
Non-income-tax-related gains/(losses) and other returns received that are recognized outside of income tax expense(c)	48		—

(a)Recorded in Other assets on the Consolidated balance sheets. Excludes programs to which the Firm does not apply the proportional amortization method, such as historic tax credit and new market tax credit programs.

(b)Reflected in Income tax expense on the Consolidated statements of income and Investing activities on the Consolidated statements of cash flows.

(c)Recorded in Other income on the Consolidated statements of income and Investing activities on the Consolidated statements of cash flows.

(d)As of December 31, 2023, represents eligible affordable housing investments. Refer to Note 25 of JPMorgan Chase’s 2023 Form 10-K for further information on affordable housing tax credits.

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 March 31, ~~2023~~2024 and December 31, ~~2022~~2023 was ~~$5.9~~$5.2 billion and ~~$5.8~~$5.1 billion, respectively. The fair value of assets held by such VIEs at both March 31, ~~2023~~2024 and December 31, ~~2022~~2023 was ~~$8.4 billion and $8.2 billion, respectively.~~$7.3 billion.

148

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 months ended March 31, ~~2023~~2024 and ~~2022,~~2023, 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 March 31,
		2023				2022
		Three months ended March 31,
		Three months ended March 31,
		Three months ended March 31,
		2024
		2024
		2024
(in millions)
(in millions)
(in millions)	(in millions)	Residential mortgage(d)		Commercial and other(e)		Residential mortgage(d)		Commercial and other(e)
Principal securitized	Principal securitized	$	1,073	$	—	$	6,495	$	3,108
Principal securitized
Principal securitized
All cash flows during the period:(a)
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)	$	1,030	$	—	$	6,375	$	3,106
Proceeds received from loan sales as financial instruments(b)(c)
Proceeds received from loan sales as financial instruments(b)(c)
Servicing fees collected
Servicing fees collected
Servicing fees collected	Servicing fees collected	6		—		24		—
Cash flows received on interests	Cash flows received on interests	74		87		155		71
Cash flows received on interests
Cash flows received on interests

(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~~auto 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 22 of this Form 10-Q for additional information about the Firm’s loan sales- and securitization-related indemnifications and Note 14 for additional information about the impact of the Firm’s sale of certain excess MSRs.

~~144~~

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 March 31,

(in millions)

2023

2022

Carrying value of loans sold

2,698

23,668

Carrying value of loans sold

Proceeds received from loan sales as cash

Proceeds from loan sales as securities(a)(b)

2,662

23,258

Proceeds from loan sales as securities(a)(b)

Total proceeds received from loan sales(c)

2,669

23,267

Gains/(losses) on loan sales(d)(e)

—

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.

149

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, 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 11 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 March 31, ~~2023~~2024 and December 31, ~~2022.~~2023. Substantially all of these loans and real estate are insured or guaranteed by U.S. government agencies.

(in millions)

March 31,
2023

December 31,
2022

(in millions)

March 31,
2024

December 31,
2023

Loans repurchased or option to repurchase(a)

709

839

Real estate owned

Foreclosed government-guaranteed residential mortgage loans(b)

(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 March 31, ~~2023,~~2024 and December 31, ~~2022.~~2023. For loans sold or securitized where servicing is the Firm’s only form of continuing involvement, the Firm generally experience a loss only if the Firm was required to repurchase a delinquent loan or foreclosed asset due to a breach in representations and warranties associated with its loan sale or servicing contracts.


										Net liquidation losses/(recoveries)
		Securitized assets				90 days past due				Three months ended March 31,
										Net liquidation losses/(recoveries)
										Net liquidation losses/(recoveries)
										Net liquidation losses/(recoveries)
	Securitized assets
(in millions)
(in millions)
(in millions)	(in millions)	March 31, 2023		December 31, 2022		March 31, 2023		December 31, 2022		2023		2022
Securitized loans	Securitized loans
Securitized loans
Securitized loans
Residential mortgage:
Residential mortgage:
Residential mortgage:	Residential mortgage:
Prime / Alt-A & option ARMs	Prime / Alt-A & option ARMs	$	37,836	$	37,058	$	528	$	511	$	7	$	(6)
Prime / Alt-A & option ARMs
Prime / Alt-A & option ARMs
Subprime
Subprime
Subprime	Subprime	1,701		1,743		196		212		2		—
Commercial and other	Commercial and other	126,194		127,037		863		948		19		6
Commercial and other
Commercial and other
Total loans securitized	Total loans securitized	$	165,731	$	165,838	$	1,587	$	1,671	$	28	$	—
Total loans securitized
Total loans securitized

~~145~~150

Note 14 – Goodwill, ~~and Mortgage~~mortgage servicing rights, and other intangible assets

Refer to Note 15 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a discussion of the accounting policies related to goodwill, ~~and~~ mortgage servicing ~~rights.~~rights, and other intangible assets.

Goodwill

Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of the net assets acquired, and can be adjusted up to one year from the acquisition date as additional information pertaining to facts and circumstances that existed as of the acquisition date is obtained about the fair value of assets acquired and liabilities assumed.

The following table presents goodwill attributed to the reportable business segments and Corporate.


(in millions)	(in millions)	March 31, 2023		December 31, 2022		(in millions)	March 31, 2024	December 31, 2023
Consumer & Community Banking	Consumer & Community Banking	$	32,121	$	32,121
Corporate & Investment Bank	Corporate & Investment Bank	8,008		8,008
Commercial Banking	Commercial Banking	2,985		2,985
Asset & Wealth Management	Asset & Wealth Management	8,366		7,902
Corporate	Corporate	664		646
Total goodwill	Total goodwill	$	52,144	$	51,662

The following table presents changes in the carrying amount of goodwill.

Three months ended March 31,

(in millions)

2023

2022

Balance at beginning of period

51,662

50,315

Balance at beginning of period

Changes during the period from:

Business combinations(a)

451

—

Business combinations(a)

Other(b)

(17)

Balance at March 31,

52,144

50,298

Balance at March 31,

(a)For the three months ended March 31, 2024, represents estimated goodwill associated with the acquisition of LayerOne Financial in CIB. For the three months ended March 31, 2023, represents estimated goodwill in AWM, as a result of the Firm's acquisition of the remaining 51% interest in CIFM.

(b)~~Predominantly~~Primarily foreign currency 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 ~~2022~~2023 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 March 31, ~~2023,~~2024, 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 March 31, ~~2023,~~2024, or December 31, ~~2022,~~2023, nor was goodwill written off due to impairment during the three months ended March 31, ~~2023~~2024 or ~~2022.~~2023.

~~146~~151

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 ~~2022~~2023 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 months ended March 31, ~~2023~~2024 and ~~2022.~~2023.

As of or for the three months
ended March 31,

(in millions, except where otherwise noted)

2023

2022

Fair value at beginning of period

7,973

5,494

Fair value at beginning of period

MSR activity:

Originations of MSRs

415

Originations of MSRs

Purchase of MSRs(a)

(1)

715

Disposition of MSRs

(57)

Disposition of MSRs

Net additions/(dispositions)

1,073

Changes due to collection/realization of expected cash flows

(240)

(232)

Changes due to collection/realization of expected cash flows

Changes in valuation due to inputs and assumptions:

Changes due to market interest rates and other(b)

(22)

894

Changes due to market interest rates and other(b)

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)

Discount rates

—

Prepayment model changes and other(c)

Total changes in valuation due to other inputs and assumptions

Total changes in valuation due to inputs and assumptions

(11)

959

Total changes in valuation due to inputs and assumptions

Fair value at March 31,

7,755

7,294

Changes in unrealized gains/(losses) included in income related to MSRs held at March 31,

(11)

959

Changes in unrealized gains/(losses) included in income related to MSRs held at March 31,

Contractual service fees, late fees and other ancillary fees included in income

388

370

Third-party mortgage loans serviced at March 31, (in billions)

577

576

Third-party mortgage loans serviced at March 31, (in billions)

Servicer advances, net of an allowance for uncollectible amounts, at March 31(d)

671

1,426

Servicer advances, net of an allowance for uncollectible amounts, at March 31(d)

(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)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)Represents changes in prepayments other than those attributable to changes in market interest rates.

(d)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.

~~147~~152

The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023.

Three months ended March 31,

(in millions)

2023

2022

CCB mortgage fees and related income

Production revenue

211

Net mortgage servicing revenue:

Operating revenue:

Loan servicing revenue

400

368

Loan servicing revenue

Changes in MSR asset fair value due to collection/realization of expected cash flows

(240)

(232)

Total operating revenue

160

136

Total operating revenue

Risk management:

Changes in MSR asset fair value due to market interest rates and other(a)

(22)

894

Changes in MSR asset fair value due to market interest rates and other(a)

Other changes in MSR asset fair value due to other inputs and assumptions in model(b)

Changes in derivative fair value and other

(1)

(850)

Changes in derivative fair value and other

Total risk management

(12)

109

Total net mortgage servicing revenue

148

245

Total net mortgage servicing revenue

Total CCB mortgage fees and related income

223

456

All other

(2)

All other

Mortgage fees and related income

221

460

Mortgage fees and related income

(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 March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, and outlines ~~hypothetical~~the sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.


(in millions, except rates)	(in millions, except rates)	Mar 31, 2023			Dec 31, 2022			(in millions, except rates)	Mar 31, 2024		Dec 31, 2023
Weighted-average prepayment speed assumption (constant prepayment rate)	Weighted-average prepayment speed assumption (constant prepayment rate)	6.32		%	6.12		%	Weighted-average prepayment speed assumption (constant prepayment rate)	6.22	%	6.29	%
Impact on fair value of 10% adverse change	Impact on fair value of 10% adverse change	$	(183)		$	(183)
Impact on fair value of 20% adverse change	Impact on fair value of 20% adverse change	(355)			(356)
Weighted-average option adjusted spread(a)	Weighted-average option adjusted spread(a)	5.90		%	5.77		%	Weighted-average option adjusted spread(a)	5.99	%	6.10	%
Impact on fair value of a 100 basis point adverse change	Impact on fair value of a 100 basis point adverse change	$	(332)		$	(341)
Impact on fair value of a 200 basis point adverse change	Impact on fair value of a 200 basis point adverse change	(637)			(655)

(a)Includes the impact of operational risk and regulatory capital.

~~148~~

153

Other intangible assets

The Firm’s finite-lived and indefinite-lived other intangible assets are initially recorded at their fair value primarily upon completion of a business combination. Finite-lived intangible assets, including core deposit intangibles, customer relationship intangibles, and certain other intangible assets, are amortized over their useful lives, estimated based on the expected future economic benefits. The Firm’s intangible assets with indefinite lives, such as asset management contracts, are not subject to amortization and are assessed periodically for impairment.

As of March 31, 2024 and December 31, 2023, other intangible assets consisted of finite-lived intangible assets of $1.9 billion and $2.0 billion, respectively, as well as indefinite-lived intangible assets, which are not subject to amortization, of $1.2 billion for both periods.

154

Note 15 – Deposits

Refer to Note 17 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for further information on deposits.

AtAs of March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, noninterest-bearing and interest-bearing deposits were as ~~follows.~~follows:

(in millions)

March 31,
2023

December 31, 2022

(in millions)

March 31,
2024

December 31, 2023

U.S. offices

Noninterest-bearing (included $38,803 and $26,363 at fair value)(a)

663,772

644,902

Interest-bearing (included $595 and $586 at fair value)(a)

1,290,614

1,276,346

Noninterest-bearing (included $77,571 and $75,393 at fair value)(a)

Interest-bearing (included $563 and $573 at fair value)(a)

Total deposits in U.S. offices

1,954,386

1,921,248

Non-U.S. offices

Noninterest-bearing (included $1,443 and $1,398 at fair value)(a)

25,071

27,005

Interest-bearing (included $739 and $273 at fair value)(a)

397,796

391,926

Noninterest-bearing (included $1,991 and $1,737 at fair value)(a)

Interest-bearing (included $453 and $681 at fair value)(a)

Total deposits in non-U.S. offices

422,867

418,931

Total deposits

2,377,253

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 discussion.

As of March 31, 2024, the remaining maturities of interest-bearing time deposits in each of the 12-month periods ending March 31 were as follows:


March 31, (in millions)
	U.S.		Non-U.S.		Total
2025	$	214,783	$	86,559	$	301,342
2026	931		52		983
2027	234		18		252
2028	157		38		195
2029	367		780		1,147
After 5 years	214		55		269
Total	$	216,686	$	87,502	$	304,188

Note 16 – Leases

Refer to Note 18 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a further discussion on leases.

Firm as lessee

At March 31, ~~2023,~~2024, JPMorgan Chase and its subsidiaries were obligated under a number of noncancellable leases, predominantly operating leases for premises and equipment used primarily for business purposes.

Operating lease liabilities and right-of-use (“ROU”) assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term.

The ~~following table provides information related to~~carrying values of the Firm’s operating ~~leases:~~leases were as follows:

(in millions)

March 31, 2023

December 31, 2022

(in millions)

Right-of-use assets

7,727

7,782

Lease liabilities

8,113

8,183

Lease liabilities

The Firm’s net rental expense was ~~$487~~$541 million and ~~$495~~$487 million for the three months ended March 31, ~~2023~~2024 and ~~2022,~~2023, 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:~~income.

Three months ended March 31,

(in millions)

2023

2022

Operating lease income

755

1,048

Operating lease income

Depreciation expense

419

711

Depreciation expense

~~149~~155

Note 17 -– Preferred stock

Refer to Note 21 of JPMorgan Chase’s ~~2022~~2023 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 March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, and the quarterly dividend declarations for the three months ended March 31, ~~2023~~2024 and ~~2022.~~2023.


		Shares		Carrying value (in millions)					Contractual rate in effect at March 31, 2023		Earliest redemption date	Floating annualized rate(a)	Dividend declared per share
		March 31, 2023	December 31, 2022	March 31, 2023		December 31, 2022		Issue date					Three months ended March 31,
																	Contractual rate in effect at March 31, 2023	Earliest redemption date	Floating annualized rate(a)
		Shares(a)
		Shares(a)
		Shares(a)
		March 31, 2024
			March 31, 2024
		March 31, 2024
			2024
		2024
		2024
Fixed-rate:
Fixed-rate:
Fixed-rate:	Fixed-rate:

Series DD	Series DD	169,625	169,625	$	1,696	$	1,696	9/21/2018	5.750	%	12/1/2023	NA	$	143.75	$	143.75

Series DD

Series DD
Series EE
Series EE
Series EE	Series EE	185,000	185,000	1,850		1,850		1/24/2019	6.000		3/1/2024	NA	150.00		150.00
Series GG	Series GG	90,000	90,000	900		900		11/7/2019	4.750		12/1/2024	NA	118.75		118.75
Series GG
Series GG
Series JJ
Series JJ
Series JJ	Series JJ	150,000	150,000	1,500		1,500		3/17/2021	4.550		6/1/2026	NA	113.75		113.75
Series LL	Series LL	185,000	185,000	1,850		1,850		5/20/2021	4.625		6/1/2026	NA	115.63		115.63
Series LL
Series LL
Series MM	Series MM	200,000	200,000	2,000		2,000		7/29/2021	4.200		9/1/2026	NA	105.00		105.00
Fixed-to-floating-rate:
Series I		—	—	$	—	$	—	4/23/2008	—	%	4/30/2018	LIBOR + 3.47%	$	—	$	92.13
Series MM
Series MM

Fixed-to-floating rate:

Fixed-to-floating rate:

Fixed-to-floating rate:

Series Q

Series Q

Series Q	Series Q	150,000	150,000	1,500		1,500		4/23/2013	5.150		5/1/2023	LIBOR + 3.25	128.75		128.75
Series R	Series R	150,000	150,000	1,500		1,500		7/29/2013	6.000		8/1/2023	LIBOR + 3.30	150.00		150.00
Series R
Series R
Series S
Series S
Series S	Series S	200,000	200,000	2,000		2,000		1/22/2014	6.750		2/1/2024	LIBOR + 3.78	168.75		168.75
Series U	Series U	100,000	100,000	1,000		1,000		3/10/2014	6.125		4/30/2024	LIBOR + 3.33	153.13		153.13
Series V		—	—	—		—		6/9/2014	—		7/1/2019	LIBOR + 3.32	—		86.40
Series U
Series U

Series X	Series X	160,000	160,000	1,600		1,600		9/23/2014	6.100		10/1/2024	LIBOR + 3.33	152.50		152.50
Series Z		—	—	—		—		4/21/2015	—		5/1/2020	LIBOR + 3.80	—		—

Series X

Series X

Series CC

Series CC

Series CC	Series CC	125,750	125,750	1,258		1,258		10/20/2017	LIBOR + 2.58		11/1/2022	LIBOR + 2.58	182.79		115.63				(b)
Series FF	Series FF	225,000	225,000	2,250		2,250		7/31/2019	5.000		8/1/2024	SOFR + 3.38	125.00		125.00
Series FF
Series FF
Series HH
Series HH
Series HH	Series HH	300,000	300,000	3,000		3,000		1/23/2020	4.600		2/1/2025	SOFR + 3.125	115.00		115.00
Series II	Series II	150,000	150,000	1,500		1,500		2/24/2020	4.000		4/1/2025	SOFR + 2.745	100.00		100.00
Series II
Series II
Series KK	Series KK	200,000	200,000	2,000		2,000		5/12/2021	3.650		6/1/2026	CMT + 2.85	91.25		91.25
Series KK
Series KK
Series NN
Series NN
Series NN
Total preferred stock	Total preferred stock	2,740,375	2,740,375	$	27,404	$	27,404
Total preferred stock
Total preferred stock

(a)~~Floating~~Represented by depositary shares.

(b)Each series of fixed-to-floating rate preferred stock converts to a floating rate at the earliest redemption date.

(c)Effective June 30, 2023, CME Term SOFR became the replacement reference rate for fixed-to-floating rate preferred stock issued by the Firm that formerly referenced U.S. dollar LIBOR. 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 dividend rate for Series CCQ preferred stock became floating and payable quarterly starting on ~~November~~May 1, ~~2022;~~2023; prior to which the dividend rate was fixed at ~~4.625%~~5.15% or ~~$231.25~~$257.50 per share payable semiannually. The dividend rate for each quarterly dividend period commencing on August 1, 2023 is three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 3.25%.

(e)The dividend rate for Series R preferred stock became floating and payable quarterly starting on August 1, 2023; prior to which the dividend rate was fixed at 6.00% or $300.00 per share payable semiannually. The dividend rate for each quarterly dividend period commencing on August 1, 2023 is three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 3.30%.

(f)The dividend rate for Series S preferred stock became floating and payable quarterly starting on February 1, 2024; prior to which the dividend rate was fixed at 6.75% or $337.50 per share payable semiannually. The dividend rate for each quarterly dividend period commencing on February 1, 2024 is three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 3.78%.

(g)As of March 31, 2024, no dividends had been declared on the Series NN preferred stock since the original issue date of March 12, 2024.

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 ~~$27.7~~$30.2 billion at March 31, ~~2023.~~2024.

On March 12, 2024, the Firm issued $2.5 billion of fixed-rate reset non-cumulative preferred stock, Series NN.

Redemptions

On ~~October 31, 2022,~~May 1, 2024, the Firm redeemed all ~~$2.93 billion of its fixed to floating rate non-cumulative perpetual preferred stock, Series I.~~

~~On October 3, 2022, the Firm redeemed all $2.5~~$5.0 billion of its fixed-to-floating rate non-cumulative preferred stock, Series V.Q, Series R and Series S.

On ~~February 1, 2022,~~April 30, 2024, the Firm redeemed all ~~$2.0~~$1.0 billion of its fixed-to-floating rate non-cumulative preferred stock, Series Z.

~~150~~156

Note 18 – Earnings per share

Refer to Note 23 of JPMorgan Chase’s ~~2022~~2023 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 months ended March 31, ~~2023~~2024 and ~~2022.~~2023.

(in millions, except per share amounts)

Three months ended March 31,

2023

2022

(in millions, except per share amounts)

2024

Basic earnings per share

Net income

12,622

8,282

Net income

Less: Preferred stock dividends

356

397

Net income applicable to common equity

12,266

7,885

Net income applicable to common equity

Less: Dividends and undistributed earnings allocated to participating securities

Net income applicable to common stockholders

12,193

7,845

Total weighted-average basic shares

outstanding

Total weighted-average basic shares

outstanding

2,968.5

2,977.0

Total weighted-average basic shares

outstanding

Total weighted-average basic shares

outstanding

Net income per share

4.11

2.64

Diluted earnings per share

Net income applicable to common stockholders

12,193

7,845

Total weighted-average basic shares

outstanding

Total weighted-average basic shares

outstanding

2,968.5

2,977.0

Total weighted-average basic shares

outstanding

Total weighted-average basic shares

outstanding

Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs

4.2

4.0

Total weighted-average diluted shares outstanding

2,972.7

2,981.0

Total weighted-average diluted shares outstanding

Net income per share

4.10

2.63

Net income per share

~~151~~157

Note 19 – 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 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
March 31, 2024
(in millions)

Unrealized
gains/(losses)
on investment securities

Translation adjustments, net of hedges

Fair value hedges

Cash flow hedges

Defined benefit
pension and
OPEB plans

DVA on fair value option elected liabilities

Accumulated other comprehensive income/(loss)

Balance at January 1, 2024

Net change

Balance at March 31, 2024

As of or for the three months ended
March 31, 2023
(in millions)

Unrealized
gains/(losses)
on investment securities

Translation adjustments, net of hedges

Fair value hedges

Cash flow hedges

Defined benefit
pension and
OPEB plans

DVA on fair value option elected liabilities

Accumulated other comprehensive income/(loss)

As of or for the three months ended
March 31, 2023
(in millions)

Unrealized
gains/(losses)
on investment securities

Translation adjustments, net of hedges

Fair value hedges

Cash flow hedges

Defined benefit
pension and
OPEB plans

DVA on fair value option elected liabilities

Accumulated other comprehensive income/(loss)

As of or for the three months ended
March 31, 2023
(in millions)

Unrealized
gains/(losses)
on investment securities

Translation adjustments, net of hedges

Fair value hedges

Cash flow hedges

Defined benefit pension and
OPEB plans

DVA on fair value option elected liabilities

Accumulated other comprehensive income/(loss)

Balance at January 1, 2023

(9,124)

(1,545)

(33)

(5,656)

(1,451)

468

(17,341)

Net change

2,212

197

(21)

798

(55)

(208)

2,923

Net change

Balance at March 31, 2023

(6,912)

(a)

(1,348)

(54)

(4,858)

(1,506)

260

(14,418)

As of or for the three months ended
March 31, 2022
(in millions)

Unrealized
gains/(losses)
on investment securities

Translation adjustments, net of hedges

Fair value hedges

Cash flow hedges

Defined benefit pension and
OPEB plans

DVA on fair value option elected liabilities

Accumulated other comprehensive income/(loss)

Balance at January 1, 2022

2,640

(934)

(131)

(296)

(210)

(1,153)

(84)

Net change

(7,453)

(62)

110

(2,791)

646

(9,483)

Balance at March 31, 2022

(4,813)

(a)

(996)

(21)

(3,087)

(143)

(507)

(9,567)

Balance at March 31, 2023

(a)As of March 31, 2024 and 2023 ~~includes~~included after-tax net unamortized unrealized gains/(losses) of ~~$(29.1)~~$(824) million and $(1.3) billion related to AFS securities that have been transferred to HTM, respectively. As of March 31, 2023 included after-tax net unamortized unrealized gains/(losses) of $(29) million related to HTM securities that have been transferred to AFS as permitted by the new hedge accounting guidance. As of March 31, 2023 and 2022 includes after-tax net unamortized unrealized gains/(losses) of $(1.3) billion and $2.2 billion, related to AFS securities that have been transferred to HTM, respectively.guidance adopted on January 1, 2023. Refer to Note 9 ~~of this Form 10-Q, and Note 10 of JPMorgan Chase's 2022 Form 10-K~~ for further information.

The following table presents the pre-tax and after-tax changes in the components of OCI.


		2023						2022
	2024																2024				2023
Three months ended March 31, (in millions)	Three months ended March 31, (in millions)	Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax		Three months ended March 31, (in millions)	Pre-tax	Tax effect		After-tax	Pre-tax	Tax effect		After-tax
Unrealized gains/(losses) on investment securities:	Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period
Net unrealized gains/(losses) arising during the period
Net unrealized gains/(losses) arising during the period	Net unrealized gains/(losses) arising during the period	$	2,042	$	(490)	$	1,552	$	(10,202)	$	2,450	$	(7,752)
Reclassification adjustment for realized (gains)/losses included in net income(a)	Reclassification adjustment for realized (gains)/losses included in net income(a)	868		(208)		660		394		(95)		299
Net change	Net change	2,910		(698)		2,212		(9,808)		2,355		(7,453)
Translation adjustments(b):	Translation adjustments(b):
Translation	Translation	973		(41)		932		(341)		24		(317)
Translation
Translation
Hedges	Hedges	(963)		228		(735)		338		(83)		255
Net change	Net change	10		187		197		(3)		(59)		(62)
Fair value hedges, net change(c):		(28)		7		(21)		145		(35)		110
Fair value hedges, net change(c)
Cash flow hedges:	Cash flow hedges:
Net unrealized gains/(losses) arising during the period
Net unrealized gains/(losses) arising during the period
Net unrealized gains/(losses) arising during the period	Net unrealized gains/(losses) arising during the period	567		(136)		431		(3,436)		825		(2,611)
Reclassification adjustment for realized (gains)/losses included in net income(d)	Reclassification adjustment for realized (gains)/losses included in net income(d)	483		(116)		367		(237)		57		(180)
Net change	Net change	1,050		(252)		798		(3,673)		882		(2,791)
Defined benefit pension and OPEB plans, net change:		(71)		16		(55)		90		(23)		67
DVA on fair value option elected liabilities, net change:		(274)		66		(208)		859		(213)		646
Defined benefit pension and OPEB plans, net change
DVA on fair value option elected liabilities, net change
Total other comprehensive income/(loss)	Total other comprehensive income/(loss)	$	3,597	$	(674)	$	2,923	$	(12,390)	$	2,907	$	(9,483)

(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. There were no sales or liquidations of legal entities that resulted in reclassifications for the three month period endedMarch 31, 2024. During the three months ended March 31, 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. ~~There were no sales or liquidations of legal entities that resulted in reclassifications for the three month period ended March 31, 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~~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.

~~152~~158

Note 20 – Restricted cash and other restricted

assets

Refer to Note 26 of JPMorgan Chase’s ~~2022~~2023 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)	March 31, 2023		December 31, 2022		(in billions)	March 31, 2024	December 31, 2023
Segregated for the benefit of securities and cleared derivative customers	Segregated for the benefit of securities and cleared derivative customers	$	13.3	$	18.7
Cash reserves at non-U.S. central banks and held for other general purposes	Cash reserves at non-U.S. central banks and held for other general purposes	8.3		8.1
Total restricted cash(a)	Total restricted cash(a)	$	21.6	$	26.8

(a)Comprises ~~$20.2~~$19.3 billion and ~~$25.4~~$18.2 billion in deposits with banks, and ~~$1.4~~$1.1 billion and $1.4 billion in cash and due from banks on the Consolidated balance ~~sheet~~sheets as of March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, respectively.

Also, as of March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, the Firm had the following other restricted assets:

•Cash and securities pledged with clearing organizations for the benefit of customers of ~~$44.4~~$38.1 billion and ~~$42.4~~$40.5 billion, respectively.

•Securities with a fair value of ~~$27.5~~$13.7 billion and ~~$31.7~~$20.5 billion, respectively, were also restricted in relation to customer activity.

~~153~~159

Note 21 – Regulatory capital

Refer to Note 27 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for a detailed discussion on regulatory capital.

The Federal Reserve establishes capital requirements, including well-capitalized ~~requirements,~~standards, for the Firm as a consolidated financial holding company. The ~~Office of the Comptroller of the Currency ("OCC")~~OCC establishes similar minimum capital requirements and standards for the Firm’s principal ~~IDI~~insured depository institution ("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~~JPMorgan Chase Bank, N.A. is also subject to these capital requirements established by ~~their respective~~its 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~~JPMorgan Chase Bank, N.A. were subject as of March 31, ~~2023~~2024 and December 31, ~~2022.~~2023.


		Standardized capital ratio requirements				Advanced capital ratio requirements				Well-capitalized ratios
		BHC(a)(b)		IDI(c)		BHC(a)(b)		IDI(c)		BHC(d)		IDI(e)
	Standardized capital ratio requirements																		Standardized capital ratio requirements						Advanced capital ratio requirements					Well-capitalized ratios
	BHC(a)(b)																	BHC(a)(b)	IDI(c)					BHC(a)(b)	IDI(c)				BHC(d)	IDI(e)
Risk-based capital ratios	Risk-based capital ratios
CET1 capital
CET1 capital
CET1 capital	CET1 capital	12.5	%	7.0	%	11.0	%	7.0	%	NA		6.5	%	11.9	%	7.0	%			11.5	%	7.0	%			NA	6.5	%
Tier 1 capital	Tier 1 capital	14.0		8.5		12.5		8.5		6.0	%	8.0
Total capital	Total capital	16.0		10.5		14.5		10.5		10.0		10.0

Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and ~~its IDI subsidiaries~~JPMorgan Chase Bank, N.A. 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 ~~4.0%~~4.5% as calculated under Method 2; plus a ~~4.0%~~2.9% 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,~~2023, the CET1, Tier 1, and Total capital ratio requirements under Basel III Standardized applicable to the Firm were ~~12.0%~~11.4%, ~~13.5%~~12.9%, and ~~15.5%~~14.9%, respectively; the Basel III Advanced CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were ~~10.5%~~11.0%, ~~12.0%~~12.5%, and ~~14.0%~~14.5%, respectively.

(c)Represents requirements for JPMorgan ~~Chase’s IDI subsidiaries.~~Chase Bank, N.A. 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~~JPMorgan Chase Bank, N.A. JPMorgan Chase Bank, N.A. is not subject to the GSIB surcharge.

(d)Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve.

(e)Represents requirements for ~~IDI subsidiaries~~JPMorgan Chase Bank, N.A. 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~~JPMorgan Chase Bank, N.A. were subject as of March 31, ~~2023~~2024 and December 31, ~~2022.~~2023.


	Capital ratio requirements(a)				Well-capitalized ratios
	BHC		IDI		BHC(b)	IDI
Leverage-based capital ratios
Tier 1 leverage	4.0	%	4.0	%	NA	5.0	%
SLR	5.0		6.0		NA	6.0

Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and ~~its IDI subsidiaries~~JPMorgan Chase Bank, N.A. 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,~~JPMorgan Chase Bank, N.A., respectively.

(b)The Federal Reserve's regulations do not establish well-capitalized thresholds for these measures for BHCs.

CECL ~~regulatory capital transition~~Regulatory Capital Transition

Beginning January 1, 2022, the $2.9 billion CECL capital benefit, 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 March 31, 2024 and December 31, 2023, the Firm's CET1 capital reflected the remaining benefit of $720 million and $1.4 billion, ~~benefit~~respectively, associated with the CECL capital transition provisions.

~~Additionally, effective~~Similarly, as of January 1, ~~2023,~~2024, the Firm has phased out ~~50%~~75% of the other CECL capital transition provisions which impacted Tier 2 capital, adjusted average assets, total leverage exposure and RWA, as applicable.

Refer to Note 27 of JPMorgan Chase’s ~~2022~~2023 Form 10-K for further information on CECL capital transition provisions.

~~154~~160

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 March 31, ~~2023~~2024 and December 31, ~~2022,~~2023, JPMorgan Chase and JPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject.


March 31, 2023 (in millions, except ratios)		Basel III Standardized						Basel III Advanced
		JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
March 31, 2024 (in millions, except ratios)

March 31, 2024 (in millions, except ratios)

JPMorgan Chase & Co.
JPMorgan Chase & Co.
Risk-based capital metrics:(a)
Risk-based capital metrics:(a)
Risk-based capital metrics:(a)	Risk-based capital metrics:(a)
CET1 capital	CET1 capital	$	227,144		$	273,551		$	227,144		$	273,551
CET1 capital
CET1 capital
Tier 1 capital
Tier 1 capital
Tier 1 capital	Tier 1 capital	253,837			273,554			253,837			273,554
Total capital	Total capital	286,398			292,244			273,122			279,218
Total capital
Total capital

Risk-weighted assets

Risk-weighted assets

Risk-weighted assets	Risk-weighted assets	1,647,363			1,584,591			1,633,774			1,489,078

CET1 capital ratio	CET1 capital ratio	13.8		%	17.3		%	13.9		%	18.4		%

CET1 capital ratio

CET1 capital ratio
Tier 1 capital ratio	Tier 1 capital ratio	15.4			17.3			15.5			18.4
Tier 1 capital ratio
Tier 1 capital ratio
Total capital ratio
Total capital ratio
Total capital ratio	Total capital ratio	17.4			18.4			16.7			18.8


December 31, 2022 (in millions, except ratios)		Basel III Standardized						Basel III Advanced
		JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
December 31, 2023 (in millions, except ratios)

December 31, 2023 (in millions, except ratios)

JPMorgan Chase & Co.
JPMorgan Chase & Co.
Risk-based capital metrics:(a)
Risk-based capital metrics:(a)
Risk-based capital metrics:(a)	Risk-based capital metrics:(a)
CET1 capital	CET1 capital	$	218,934		$	269,668		$	218,934		$	269,668
CET1 capital
CET1 capital
Tier 1 capital
Tier 1 capital
Tier 1 capital	Tier 1 capital	245,631			269,672			245,631			269,672
Total capital	Total capital	277,769			288,433			264,583			275,255
Total capital
Total capital

Risk-weighted assets

Risk-weighted assets

Risk-weighted assets	Risk-weighted assets	1,653,538			1,597,072			1,609,773			1,475,602

CET1 capital ratio	CET1 capital ratio	13.2		%	16.9		%	13.6		%	18.3		%

CET1 capital ratio

CET1 capital ratio
Tier 1 capital ratio	Tier 1 capital ratio	14.9			16.9			15.3			18.3
Tier 1 capital ratio
Tier 1 capital ratio
Total capital ratio
Total capital ratio
Total capital ratio	Total capital ratio	16.8			18.1			16.4			18.7

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

(b)As of March 31, 2024, for capital purposes, excluded $6.0 billion of preferred stock for which notices of redemption were issued during the first quarter and which were redeemed in the second quarter. Refer to Note 17 for additional information.

Three months ended
(in millions, except ratios) March 31, 2023 December 31, 2022
JPMorgan
Chase & Co. JPMorgan
Chase Bank, N.A. JPMorgan
Chase & Co. JPMorgan
Chase Bank, N.A.
Leverage-based capital metrics:(a)
Adjusted average assets(b)
$ 3,656,598 $ 3,180,721 $ 3,703,873 $ 3,249,912
Tier 1 leverage ratio 6.9 % 8.6 % 6.6 % 8.3 %
Total leverage exposure $ 4,327,863 $ 3,848,373 $ 4,367,092 $ 3,925,502
SLR 5.9 % 7.1 % 5.6 % 6.9 %
(c)Includes the impacts of certain assets associated with First Republic 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)	March 31, 2024						December 31, 2023
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
Leverage-based capital metrics:(a)
Adjusted average assets(b)	$	3,913,677		$	3,372,219		$	3,831,200		$	3,337,842
Tier 1 leverage ratio	7.2		%	7.9		%	7.2		%	7.9		%
Total leverage exposure	$	4,634,634		$	4,088,591		$	4,540,465		$	4,038,739
SLR	6.1		%	6.6		%	6.1		%	6.5		%

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

~~155~~161

Note 22 – 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 ~~2022~~2023 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 12 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 March 31, ~~2023,~~2024 and December 31, ~~2022.~~2023. 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.

~~156~~162


Off–balance sheet lending-related financial instruments, guarantees and other commitments	Off–balance sheet lending-related financial instruments, guarantees and other commitments
		Contractual amount												Carrying value(i)
		March 31, 2023										Dec 31, 2022			Mar 31, 2023			Dec 31, 2022
Off–balance sheet lending-related financial instruments, guarantees and other commitments
Off–balance sheet lending-related financial instruments, guarantees and other commitments
		Contractual amount
		Contractual amount
		Contractual amount
		March 31, 2024
		March 31, 2024
		March 31, 2024
By remaining maturity (in millions)
By remaining maturity (in millions)
By remaining maturity (in millions)	By remaining maturity (in millions)	Expires in 1 year or less		Expires after 1 year through 3 years		Expires after 3 years through 5 years		Expires after 5 years		Total		Total
Lending-related	Lending-related
Lending-related
Lending-related
Consumer, excluding credit card:	Consumer, excluding credit card:
Residential real estate(a)		$	7,237	$	3,863	$	6,498	$	5,745	$	23,343	$	21,287		$	70		$	75
Consumer, excluding credit card:
Consumer, excluding credit card:
Residential Real Estate(a)
Residential Real Estate(a)
Residential Real Estate(a)																						$	9,161		$	7,387		$	6,048		$	9,315		$	31,911			$	30,125				$	674		(j)			$	678		(j)
Auto and other	Auto and other	12,310		1		—		1,914		14,225		12,231			—			—			Auto and other	11,416			134	134		—	—		3,199	3,199		14,749	14,749		15,278			15,278		104					104			(j)	(j)		148			(j)	(j)
Total consumer, excluding credit card	Total consumer, excluding credit card	19,547		3,864		6,498		7,659		37,568		33,518			70			75
Credit card(b)	Credit card(b)	861,218		—		—		—		861,218		821,284			—			—
Credit card(b)
Credit card(b)
Total consumer(c)
Total consumer(c)
Total consumer(c)	Total consumer(c)	880,765		3,864		6,498		7,659		898,786		854,802			70			75
Wholesale:	Wholesale:
Wholesale:
Wholesale:
Other unfunded commitments to extend credit(d)
Other unfunded commitments to extend credit(d)
Other unfunded commitments to extend credit(d)	Other unfunded commitments to extend credit(d)	97,803		131,725		202,649		21,647		453,824		440,407			2,282		(h)	2,328		(h)	119,474		184,303	184,303		172,614	172,614		23,738	23,738		500,129	500,129			503,526			503,526		2,638				2,638			(j)	(j)		2,797			(j)	(j)
Standby letters of credit and other financial guarantees(d)	Standby letters of credit and other financial guarantees(d)	13,172		8,279		4,259		1,045		26,755		27,439			427			408
Other letters of credit(d)	Other letters of credit(d)	3,563		294		103		—		3,960		4,134			9			6
Other letters of credit(d)
Other letters of credit(d)
Total wholesale(c)
Total wholesale(c)
Total wholesale(c)	Total wholesale(c)	114,538		140,298		207,011		22,692		484,539		471,980			2,718			2,742
Total lending-related	Total lending-related	$	995,303	$	144,162	$	213,509	$	30,351	$	1,383,325	$	1,326,782		$	2,788		$	2,817
Total lending-related
Total lending-related
Other guarantees and commitments
Other guarantees and commitments
Other guarantees and commitments	Other guarantees and commitments
Securities lending indemnification agreements and guarantees(e)	Securities lending indemnification agreements and guarantees(e)	$	325,217	$	—	$	—	$	—	$	325,217	$	283,386		$	—		$	—
Securities lending indemnification agreements and guarantees(e)
Securities lending indemnification agreements and guarantees(e)
Derivatives qualifying as guarantees
Derivatives qualifying as guarantees
Derivatives qualifying as guarantees	Derivatives qualifying as guarantees	3,189		246		12,302		40,907		56,644		59,180			286			649
Unsettled resale and securities borrowed agreements	Unsettled resale and securities borrowed agreements	137,021		701		—		—		137,722		116,975			(1)			(2)
Unsettled resale and securities borrowed agreements
Unsettled resale and securities borrowed agreements
Unsettled repurchase and securities loaned agreements
Unsettled repurchase and securities loaned agreements
Unsettled repurchase and securities loaned agreements	Unsettled repurchase and securities loaned agreements	98,941		544		—		—		99,485		66,407			(2)			(7)
Loan sale and securitization-related indemnifications:	Loan sale and securitization-related indemnifications:
Loan sale and securitization-related indemnifications:
Loan sale and securitization-related indemnifications:
Mortgage repurchase liability
Mortgage repurchase liability
Mortgage repurchase liability	Mortgage repurchase liability	NA										NA			76			76
Loans sold with recourse	Loans sold with recourse	NA								816		820			29			28
Loans sold with recourse
Loans sold with recourse
Exchange & clearing house guarantees and commitments(f)
Exchange & clearing house guarantees and commitments(f)
Exchange & clearing house guarantees and commitments(f)	Exchange & clearing house guarantees and commitments(f)	174,476		—		—		—		174,476		191,068			—			—
Other guarantees and commitments(g)	Other guarantees and commitments(g)	7,118		735		159		2,896		10,908		8,634			51			53
Other guarantees and commitments(g)
Other guarantees and commitments(g)

(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)AtAs of March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, reflected the contractual amount net of risk participations totaling ~~$64~~$82 million and ~~$71~~$88 million, respectively, for other unfunded commitments to extend credit; $8.1 billion and $8.2 billion, ~~at both March 31, 2023, and December 31, 2022,~~respectively, for standby letters of credit and other financial guarantees; ~~$350~~$490 million and ~~$512~~$589 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.

(e)AtAs of March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, collateral held by the Firm in support of securities lending indemnification agreements was ~~$340.9~~$335.4 billion and ~~$298.5~~$300.3 billion, respectively. Securities lending collateral primarily consists of cash, G7 government securities, and securities issued by U.S. GSEs and government agencies.

(f)AtAs of March 31, ~~2023,~~2024 and December 31, ~~2022,~~2023, 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)AtAs of March 31, ~~2023,~~2024 and December 31, ~~2022,~~ 2023, primarily includes unfunded commitments to purchase secondary market loans, other equity investment commitments, and unfunded commitments related to certain tax-oriented equity investments, ~~unfunded commitments~~and reflects the impact of adopting updates to ~~purchase secondary market loans, and other equity investment commitments.~~the Accounting for Investments in Tax Credit Structures guidance effective January 1, 2024.

(h)~~At March 31, 2023 and December 31, 2022 includes net markdowns on held-for-sale positions related to unfunded commitments in the bridge financing portfolio.~~

~~(i)~~For lending-related products, the carrying value ~~represents~~includes the allowance for lending-related commitments and the guarantee liability; for derivative-related products, and lending-related commitments for which the fair value option was elected, the carrying value represents the fair value.

(i)For lending-related commitments, the carrying value also includes fees and any purchase discounts or premiums that are deferred and recognized in accounts payable and other liabilities on the Consolidated balance sheets. Deferred amounts for revolving commitments and commitments not expected to fund, are amortized to lending- and deposit-related fees on a straight line basis over the commitment period. For all other commitments the deferred amounts remain deferred until the commitment funds or is sold.

(j)As of March 31, 2024 and December 31, 2023, includes fair value adjustments associated with First Republic for residential real estate lending-related commitments totaling $596 million and $630 million, respectively, for auto and other lending-related commitments totaling $104 million and $148 million, respectively, and for other unfunded commitments to extend credit totaling $935 million and $1.1 billion, respectively. Refer to Note 26 for additional information.

~~157~~163

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 March 31, ~~2023,~~2024 and December 31, ~~2022.~~2023.

Standby letters of credit, other financial guarantees and other letters of credit


		March 31, 2023				December 31, 2022
	March 31, 2024												March 31, 2024		December 31, 2023
(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)	$	18,669	$	2,963	$	19,205	$	3,040
Noninvestment-grade(a)	Noninvestment-grade(a)	8,086		997		8,234		1,094
Total contractual amount	Total contractual amount	$	26,755	$	3,960	$	27,439	$	4,134

Allowance for lending-related commitments	Allowance for lending-related commitments	$	90	$	9	$	82	$	6
Allowance for lending-related commitments
Allowance for lending-related commitments
Guarantee liability	Guarantee liability	337		—		326		—
Total carrying value	Total carrying value	$	427	$	9	$	408	$	6
Commitments with collateral	Commitments with collateral	$	14,843	$	719	$	15,296	$	795

(a)The ratings scale is based on the Firm’s internal risk ratings. Refer to Note 11 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 ~~2022~~2023 Form 10-K for further information on these derivatives.

The following table summarizes the derivatives qualifying as guarantees as of March 31, ~~2023,~~2024 and December 31, ~~2022.~~2023.

(in millions)

March 31, 2023

December 31, 2022

March 31, 2024

December 31, 2023

Notional amounts

Derivative guarantees

56,644

59,180

Stable value contracts with contractually limited exposure

31,758

31,820

Maximum exposure of stable value contracts with contractually limited exposure

1,448

2,063

Fair value

Derivative payables

286

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 4 for a further discussion of credit derivatives.

Loan sales- and securitization-related indemnifications

In connection with the Firm’s mortgage loan sale and securitization activities with U.S. 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 24 of this Form 10-Q and Note 30 of JPMorgan Chase’s 2023 Form 10-K for additional information regarding litigation.

164

Merchant charge-backs

Under the rules of payment networks, 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, the Firm will (through the cardholder’s issuing bank) credit or refund the amount to the cardholder and will charge back the transaction to the merchant. If the Firm is unable to collect the amount from the merchant, the Firm will bear the loss for the amount credited or refunded to the cardholder. The Firm mitigates this risk by withholding future settlements, retaining cash reserve accounts or obtaining other collateral. In addition, the Firm recognizes a valuation allowance that covers the payment or performance risk related to charge-backs.

~~158~~

~~Loan 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 24 of this Form 10-Q and Note 30 of JPMorgan Chase’s 2022 Form 10-K for additional information regarding litigation.


	Fair value measurements using significant unobservable inputs
Three months ended March 31, 2022 (in millions)	Fair value at Jan 1, 2022		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at March 31, 2022			Change in unrealized gains/(losses) related to financial instruments held at March 31, 2022
						Purchases(g)		Sales				Settlements(h)
Assets:(a)
Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	—	$	—		$	—	$	—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies	265		27			22		(7)				(21)		—		—			286		26
Residential – nonagency	28		—			—		—				(11)		—		(7)			10		—
Commercial – nonagency	10		—			—		—				—		—		—			10		—
Total mortgage-backed securities	303		27			22		(7)				(32)		—		(7)			306		26
Obligations of U.S. states and municipalities	7		—			—		—				—		—		—			7		—
Non-U.S. government debt securities	81		(33)			228		(180)				—		37		—			133		(33)
Corporate debt securities	332		(19)			61		(59)				(37)		41		(26)			293		(20)
Loans	708		(4)			297		(98)				(7)		271		(118)			1,049		(4)
Asset-backed securities	26		—			1		—				—		4		(3)			28		—
Total debt instruments	1,457		(29)			609		(344)				(76)		353		(154)			1,816		(31)
Equity securities	662		(813)			223		(240)				—		853		(22)			663		(760)
Physical commodities	—		—			—		—				—		—		—			—		—
Other	160		1			20		—				(5)		—		(1)			175		16
Total trading assets – debt and equity instruments	2,279		(841)		(c)	852		(584)				(81)		1,206		(177)			2,654		(775)		(c)
Net derivative receivables:(b)
Interest rate	(16)		233			126		(94)				151		(27)		(6)			367		422
Credit	74		67			4		(4)				(96)		(3)		2			44		66
Foreign exchange	(419)		345			132		(24)				70		(6)		(22)			76		364
Equity	(3,626)		730			498		(559)				443		(331)		262			(2,583)		838
Commodity	(907)		422			50		(137)				156		—		2			(414)		467
Total net derivative receivables	(4,894)		1,797		(c)	810		(818)				724		(367)		238			(2,510)		2,157		(c)
Available-for-sale securities:
Corporate debt securities	161		27			17		—				—		—		—			205		27
Total available-for-sale securities	161		27		(d)	17		—				—		—		—			205		27		(d)
Loans	1,933		98		(c)	121		(5)				(281)		390		(184)			2,072		156		(c)
Mortgage servicing rights	5,494		959		(e)	1,130		(57)				(232)		—		—			7,294		959		(e)
Other assets	306		9		(c)	41		—				(17)		2		—			341		9		(c)

	Fair value measurements using significant unobservable inputs
Three months ended March 31, 2022 (in millions)	Fair value at Jan 1, 2022		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at March 31, 2022			Change in unrealized (gains)/losses related to financial instruments held at March 31, 2022
						Purchases		Sales		Issuances		Settlements(h)
Liabilities:(a)
Deposits	$	2,317	$	(142)	(c)(f)	$	—	$	—	$	108	$	(48)	$	—	$	(114)		$	2,121	$	(143)	(c)(f)
Short-term borrowings	2,481		(401)		(c)(f)	—		—		1,423		(1,347)		1		(11)			2,146		(153)		(c)(f)
Trading liabilities – debt and equity instruments	30		(17)		(c)	(14)		30		—		—		14		(2)			41		31		(c)
Accounts payable and other liabilities	69		(4)		(c)	—		42		—		—		1		—			108		(4)		(c)
Long-term debt	24,374		(1,668)		(c)(f)	—		—		4,050		(2,476)		263		(149)			24,394		(1,575)		(c)(f)


Segment results and reconciliation(a)
Segment results and reconciliation(a)
Segment results and reconciliation(a)	Segment results and reconciliation(a)
As of or for the three months ended March 31, (in millions, except ratios)	As of or for the three months ended March 31, (in millions, except ratios)	Consumer & Community Banking							Corporate & Investment Bank							Commercial Banking						Asset & Wealth Management
		2023			2022				2023			2022				2023			2022			2023			2022
As of or for the three months ended March 31, (in millions, except ratios)

2024
2024
Noninterest revenue
Noninterest revenue
Noninterest revenue	Noninterest revenue	$	3,623		$	3,855		(b)	$	11,523		$	10,004		(b)	$	781		$	867		$	3,333		$	3,239
Net interest income	Net interest income	12,833			8,327				2,077			3,572				2,730			1,531			1,451			1,076
Net interest income
Net interest income
Total net revenue
Total net revenue
Total net revenue	Total net revenue	16,456			12,182				13,600			13,576				3,511			2,398			4,784			4,315
Provision for credit losses	Provision for credit losses	1,402			678				58			445				417			157			28			154
Provision for credit losses
Provision for credit losses
Noninterest expense
Noninterest expense
Noninterest expense	Noninterest expense	8,065			7,655			(b)	7,483			7,363			(b)	1,308			1,129			3,091			2,860
Income/(loss) before income tax expense/(benefit)	Income/(loss) before income tax expense/(benefit)	6,989			3,849				6,059			5,768				1,786			1,112			1,665			1,301
Income/(loss) before income tax expense/(benefit)
Income/(loss) before income tax expense/(benefit)
Income tax expense/(benefit)
Income tax expense/(benefit)
Income tax expense/(benefit)	Income tax expense/(benefit)	1,746			941			(b)	1,638			1,396			(b)	439			262			298			293
Net income/(loss)	Net income/(loss)	$	5,243		$	2,908			$	4,421		$	4,372			$	1,347		$	850		$	1,367		$	1,008
Net income/(loss)
Net income/(loss)
Average equity
Average equity
Average equity	Average equity	$	52,000		$	50,000			$	108,000		$	103,000			$	28,500		$	25,000		$	16,000		$	17,000
Total assets	Total assets	506,382			486,183				1,436,237			1,460,463				261,181			235,127			232,516			233,070
Total assets
Total assets
ROE
ROE
ROE	ROE	40		%	23		%		16		%	16		%	(b)	18		%	13		%	34		%	23		%
Overhead ratio	Overhead ratio	49			63				55			54				37			47			65			66
Overhead ratio
Overhead ratio


	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)	$	13,566
Purchase Money Note (at fair value)(b)	48,848
Settlement of First Republic deposit and other related party transactions(c)	5,447
Contingent consideration - Shared-loss agreements	15
Purchase price consideration	$	67,876

Assets
Securities	$	30,285
Loans	153,242
Core deposit and customer relationship intangibles	1,455
Indemnification assets - Shared-loss agreements	675
Accounts receivable and other assets(d)	6,595
Total assets acquired	$	192,252

Liabilities
Deposits	$	87,572
FHLB advances	27,919
Lending-related commitments	2,614
Accounts payable and other liabilities(d)	2,793
Deferred tax liabilities	719
Total liabilities assumed	$	121,617

Fair value of net assets acquired	$	70,635
Estimated gain on acquisition, after income taxes	$	2,759



	May 1, 2023
(in millions)	UPB		Fair value
Residential real estate	$	106,240	$	92,053
Auto and other	3,093		2,030
Total consumer	109,333		94,083
Secured by real estate	37,117		33,602
Commercial & industrial	4,332		3,932
Other	23,499		21,625
Total wholesale	64,948		59,159
Total loans	$	174,281	$	153,242


	For the three months ended March 31, 2023
(in millions)
Noninterest revenue	$	17,899
Net interest income	21,909
Net income	13,168


Three months ended March 31, 2023		Total number of shares of common stock repurchased	Average price paid per share of common stock(a)		Aggregate purchase price of common stock repurchases (in millions)(a)		Dollar value of remaining authorized repurchase (in millions)(a)(b)
Three months ended March 31, 2024
Three months ended March 31, 2024
Three months ended March 31, 2024									Total number of shares of common stock repurchased	Average price paid per share of common stock(a)	Aggregate purchase price of common stock repurchases (in millions)(a)	Dollar value of remaining authorized repurchase (in millions)(a)(b)
January	January	—	$	—	$	—	$	—
February	February	3,393,245	141.29		479		29,154
March	March	18,602,008	132.27		2,461		26,693
First quarter	First quarter	21,995,253	$	133.67	$	2,940	$	26,693


Exhibit No.						Description of Exhibit

15						Letter re: Unaudited Interim Financial Information.(a)

22						Subsidiary Guarantors and Issuers of Guaranteed Securities.(a)

31.1						Certification.(a)

31.2						Certification.(a)

32						Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(b)

101.INS						The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.(c)
101.SCH						XBRL Taxonomy Extension Schema Document.(a)
101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document.(a)
101.DEF						XBRL Taxonomy Extension Definition Linkbase Document.(a)
101.LAB						XBRL Taxonomy Extension Label Linkbase Document.(a)
101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document.(a)
104						Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).


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