![](https://capedge.com/proxy/8-K/0000019617-14-000328/y91856y9185600a02.gif)
EARNINGS RELEASE FINANCIAL SUPPLEMENT
FIRST QUARTER 2014
JPMORGAN CHASE & CO. | ![]() | ||||||||||
TABLE OF CONTENTS | |||||||||||
Page(s) | |||||||||||
Consolidated Results | |||||||||||
Consolidated Financial Highlights | 2-3 | ||||||||||
Consolidated Statements of Income | 4 | ||||||||||
Consolidated Balance Sheets | 5 | ||||||||||
Condensed Average Balance Sheets and Annualized Yields | 6 | ||||||||||
Core Net Interest Income | 7 | ||||||||||
Reconciliation from Reported to Managed Summary | 8 | ||||||||||
Business Detail | |||||||||||
Line of Business Financial Highlights - Managed Basis | 9 | ||||||||||
Consumer & Community Banking | 10-11 | ||||||||||
Consumer & Business Banking | 12 | ||||||||||
Mortgage Banking | 13-16 | ||||||||||
Card, Merchant Services & Auto | 17-18 | ||||||||||
Corporate & Investment Bank | 19-21 | ||||||||||
Commercial Banking | 22-23 | ||||||||||
Asset Management | 24-26 | ||||||||||
Corporate/Private Equity | 27-28 | ||||||||||
Credit-Related Information | 29-32 | ||||||||||
Supplemental Detail | |||||||||||
Capital and Other Selected Balance Sheet Items | 33 | ||||||||||
Per Share-Related Information | 34 | ||||||||||
Non-GAAP Financial Measures | 35 | ||||||||||
Page 1
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||
(in millions, except per share and ratio data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
SELECTED INCOME STATEMENT DATA | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | ||||||||||||||||||||
Reported Basis | |||||||||||||||||||||||||||
Total net revenue | $ | 22,993 | $ | 23,156 | $ | 23,117 | $ | 25,211 | $ | 25,122 | (1 | ) | % | (8 | ) | % | |||||||||||
Total noninterest expense | 14,636 | 15,552 | 23,626 | 15,866 | 15,423 | (6 | ) | (5 | ) | ||||||||||||||||||
Pre-provision profit/(loss) | 8,357 | 7,604 | (509 | ) | 9,345 | 9,699 | 10 | (14 | ) | ||||||||||||||||||
Provision for credit losses | 850 | 104 | (543 | ) | 47 | 617 | NM | 38 | |||||||||||||||||||
NET INCOME/(LOSS) | 5,274 | 5,278 | (380 | ) | 6,496 | 6,529 | - | (19 | ) | ||||||||||||||||||
Managed Basis (a) | |||||||||||||||||||||||||||
Total net revenue | 23,863 | 24,112 | 23,880 | 25,958 | 25,848 | (1 | ) | (8 | ) | ||||||||||||||||||
Total noninterest expense | 14,636 | 15,552 | 23,626 | 15,866 | 15,423 | (6 | ) | (5 | ) | ||||||||||||||||||
Pre-provision profit | 9,227 | 8,560 | 254 | 10,092 | 10,425 | 8 | (11 | ) | |||||||||||||||||||
Provision for credit losses | 850 | 104 | (543 | ) | 47 | 617 | NM | 38 | |||||||||||||||||||
NET INCOME/(LOSS) | 5,274 | 5,278 | (380 | ) | 6,496 | 6,529 | - | (19 | ) | ||||||||||||||||||
PER COMMON SHARE DATA | |||||||||||||||||||||||||||
Net income/(loss): Basic | 1.29 | 1.31 | (0.17 | ) | 1.61 | 1.61 | (2 | ) | (20 | ) | |||||||||||||||||
Diluted | 1.28 | 1.30 | (0.17 | ) | 1.60 | 1.59 | (2 | ) | (19 | ) | |||||||||||||||||
Cash dividends declared | 0.38 | 0.38 | 0.38 | 0.38 | (h) | 0.30 | - | 27 | |||||||||||||||||||
Book value | 54.05 | 53.25 | 52.01 | 52.48 | 52.02 | 2 | 4 | ||||||||||||||||||||
Tangible book value (b) | 41.73 | 40.81 | 39.51 | 39.97 | 39.54 | 2 | 6 | ||||||||||||||||||||
COMMON SHARES OUTSTANDING | |||||||||||||||||||||||||||
Average: Basic | 3,787.2 | 3,762.1 | 3,767.0 | 3,782.4 | 3,818.2 | 1 | (1 | ) | |||||||||||||||||||
Diluted | 3,823.6 | 3,797.1 | 3,767.0 | 3,814.3 | 3,847.0 | 1 | (1 | ) | |||||||||||||||||||
Common shares at period-end | 3,784.7 | 3,756.1 | 3,759.2 | 3,769.0 | 3,789.8 | 1 | - | ||||||||||||||||||||
Closing share price (c) | $ | 60.71 | $ | 58.48 | $ | 51.69 | $ | 52.79 | $ | 47.46 | 4 | 28 | |||||||||||||||
Market capitalization | 229,770 | 219,657 | 194,312 | 198,966 | 179,863 | 5 | 28 | ||||||||||||||||||||
FINANCIAL RATIOS (d) | |||||||||||||||||||||||||||
Return on common equity ("ROE") | 10 | % | 10 | % | (1 | ) | % | 13 | % | 13 | % | ||||||||||||||||
Return on tangible common equity ("ROTCE") (b) | 13 | 14 | (2 | ) | 17 | 17 | |||||||||||||||||||||
Return on assets | 0.89 | 0.87 | (0.06 | ) | 1.09 | 1.14 | |||||||||||||||||||||
Return on risk-weighted assets (e)(f) | 1.51 | (g) | 1.52 | (0.11 | ) | 1.85 | 1.88 | ||||||||||||||||||||
CAPITAL RATIOS (f) | |||||||||||||||||||||||||||
Tier 1 capital ratio | 12.1 | (g) | 11.9 | 11.7 | 11.6 | 11.6 | |||||||||||||||||||||
Total capital ratio | 14.6 | (g) | 14.4 | 14.3 | 14.1 | 14.1 | |||||||||||||||||||||
Tier 1 common capital ratio | 10.9 | (g) | 10.7 | 10.5 | 10.4 | 10.2 | |||||||||||||||||||||
(a) | For a further discussion of managed basis, see Reconciliation from Reported to Managed Summary on page 8. |
(b) | Tangible book value per share and ROTCE are non-GAAP financial measures. Tangible book value per share represents tangible common equity divided by period-end common shares. ROTCE measures the Firm's annualized earnings as a percentage of tangible common equity. For further discussion of these measures, see page 35. |
(c) | Share price shown is from the New York Stock Exchange. The common stock is also listed and traded on the London Stock Exchange and the Tokyo Stock Exchange. |
(d) | Ratios are based upon annualized amounts. |
(e) | Return on Basel risk-weighted assets is annualized earnings divided by average risk-weighted assets. |
(f) Basel III rules became effective on January 1, 2014; all prior period data is based on Basel I rules. For a further discussion, see footnote (a) on page 33.
(g) | Estimated. |
(h) On May 21, 2013, the Board of Directors increased the quarterly common stock dividend from $0.30 to $0.38 per share.
Page 2
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||
(in millions, except ratio and headcount data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
SELECTED BALANCE SHEET DATA (period-end) | |||||||||||||||||||||||||||
Total assets | $ | 2,476,986 | $ | 2,415,689 | $ | 2,463,309 | $ | 2,439,494 | $ | 2,389,349 | 3 | % | 4 | % | |||||||||||||
Loans: | |||||||||||||||||||||||||||
Consumer, excluding credit card loans | 288,168 | 289,063 | 288,350 | 288,096 | 290,082 | - | (1 | ) | |||||||||||||||||||
Credit card loans | 121,816 | 127,791 | 123,982 | 124,288 | 121,865 | (5 | ) | - | |||||||||||||||||||
Wholesale loans | 320,987 | 321,564 | 316,347 | 313,202 | 316,939 | - | 1 | ||||||||||||||||||||
Total Loans | 730,971 | 738,418 | 728,679 | 725,586 | 728,886 | (1 | ) | - | |||||||||||||||||||
Deposits | 1,282,705 | 1,287,765 | 1,281,102 | 1,202,950 | 1,202,507 | - | 7 | ||||||||||||||||||||
Long-term debt (a) | 274,512 | 267,889 | 263,372 | 266,212 | 268,361 | 2 | 2 | ||||||||||||||||||||
Common stockholders' equity | 204,572 | 200,020 | 195,512 | 197,781 | 197,128 | 2 | 4 | ||||||||||||||||||||
Total stockholders' equity | 219,655 | 211,178 | 206,670 | 209,239 | 207,086 | 4 | 6 | ||||||||||||||||||||
Loans-to-deposits ratio | 57 | % | 57 | % | 57 | % | 60 | % | 61 | % | |||||||||||||||||
Headcount | 246,994 | 251,196 | 255,041 | 254,063 | 255,898 | (2 | ) | (3 | ) | ||||||||||||||||||
LINE OF BUSINESS NET INCOME/(LOSS) | |||||||||||||||||||||||||||
Consumer & Community Banking | $ | 1,936 | $ | 2,372 | $ | 2,702 | $ | 3,089 | $ | 2,586 | (18 | ) | (25 | ) | |||||||||||||
Corporate & Investment Bank | 1,979 | 858 | 2,240 | 2,838 | 2,610 | 131 | (24 | ) | |||||||||||||||||||
Commercial Banking | 578 | 693 | 665 | 621 | 596 | (17 | ) | (3 | ) | ||||||||||||||||||
Asset Management | 441 | 568 | 476 | 500 | 487 | (22 | ) | (9 | ) | ||||||||||||||||||
Corporate/Private Equity | 340 | 787 | (6,463 | ) | (552 | ) | 250 | (57 | ) | 36 | |||||||||||||||||
NET INCOME/(LOSS) | $ | 5,274 | $ | 5,278 | $ | (380 | ) | $ | 6,496 | $ | 6,529 | - | (19 | ) | |||||||||||||
(a) | Included unsecured long-term debt of $206.1 billion, $199.4 billion, $199.2 billion, $199.1 billion and $206.1 billion for the periods ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. |
Page 3
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||||
(in millions, except per share and ratio data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
REVENUE | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | ||||||||||||||||||||
Investment banking fees | $ | 1,420 | $ | 1,685 | $ | 1,507 | $ | 1,717 | $ | 1,445 | (16 | ) | % | (2 | ) | % | |||||||||||
Principal transactions (a) | 3,322 | (42 | ) | 2,662 | 3,760 | 3,761 | NM | (12 | ) | ||||||||||||||||||
Lending- and deposit-related fees | 1,405 | 1,469 | 1,519 | 1,489 | 1,468 | (4 | ) | (4 | ) | ||||||||||||||||||
Asset management, administration and commissions | 3,836 | 3,975 | 3,667 | 3,865 | 3,599 | (3 | ) | 7 | |||||||||||||||||||
Securities gains | 30 | 8 | 26 | 124 | 509 | 275 | (94 | ) | |||||||||||||||||||
Mortgage fees and related income | 514 | 1,089 | 841 | 1,823 | 1,452 | (53 | ) | (65 | ) | ||||||||||||||||||
Card income | 1,408 | 1,582 | 1,518 | 1,503 | 1,419 | (11 | ) | (1 | ) | ||||||||||||||||||
Other income | 391 | 2,483 | 602 | 226 | 536 | (84 | ) | (27 | ) | ||||||||||||||||||
Noninterest revenue | 12,326 | 12,249 | 12,342 | 14,507 | 14,189 | 1 | (13 | ) | |||||||||||||||||||
Interest income (b) | 12,793 | 13,166 | 13,066 | 13,072 | 13,365 | (3 | ) | (4 | ) | ||||||||||||||||||
Interest expense (b) | 2,126 | 2,259 | 2,291 | 2,368 | 2,432 | (6 | ) | (13 | ) | ||||||||||||||||||
Net interest income | 10,667 | 10,907 | 10,775 | 10,704 | 10,933 | (2 | ) | (2 | ) | ||||||||||||||||||
TOTAL NET REVENUE | 22,993 | 23,156 | 23,117 | 25,211 | 25,122 | (1 | ) | (8 | ) | ||||||||||||||||||
Provision for credit losses | 850 | 104 | (543 | ) | 47 | 617 | NM | 38 | |||||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||
Compensation expense | 7,859 | 7,052 | 7,325 | 8,019 | 8,414 | 11 | (7 | ) | |||||||||||||||||||
Occupancy expense | 952 | 941 | 947 | 904 | 901 | 1 | 6 | ||||||||||||||||||||
Technology, communications and equipment expense | 1,411 | 1,376 | 1,356 | 1,361 | 1,332 | 3 | 6 | ||||||||||||||||||||
Professional and outside services | 1,786 | 2,109 | 1,897 | 1,901 | 1,734 | (15 | ) | 3 | |||||||||||||||||||
Marketing | 564 | 745 | 588 | 578 | 589 | (24 | ) | (4 | ) | ||||||||||||||||||
Other expense (c) | 1,933 | 3,136 | 11,373 | 2,951 | 2,301 | (38 | ) | (16 | ) | ||||||||||||||||||
Amortization of intangibles | 131 | 193 | 140 | 152 | 152 | (32 | ) | (14 | ) | ||||||||||||||||||
TOTAL NONINTEREST EXPENSE | 14,636 | 15,552 | 23,626 | 15,866 | 15,423 | (6 | ) | (5 | ) | ||||||||||||||||||
Income before income tax expense | 7,507 | 7,500 | 34 | 9,298 | 9,082 | - | (17 | ) | |||||||||||||||||||
Income tax expense | 2,233 | 2,222 | 414 | 2,802 | 2,553 | - | (13 | ) | |||||||||||||||||||
NET INCOME/(LOSS) | $ | 5,274 | $ | 5,278 | $ | (380 | ) | $ | 6,496 | $ | 6,529 | - | (19 | ) | |||||||||||||
PER COMMON SHARE DATA | |||||||||||||||||||||||||||
Basic earnings | $ | 1.29 | $ | 1.31 | $ | (0.17 | ) | $ | 1.61 | $ | 1.61 | (2 | ) | (20 | ) | ||||||||||||
Diluted earnings | 1.28 | 1.30 | (0.17 | ) | 1.60 | 1.59 | (2 | ) | (19 | ) | |||||||||||||||||
FINANCIAL RATIOS | |||||||||||||||||||||||||||
Return on common equity (d) | 10 | % | 10 | % | (1 | ) | % | 13 | % | 13 | % | ||||||||||||||||
Return on tangible common equity (d)(e) | 13 | 14 | (2 | ) | 17 | 17 | |||||||||||||||||||||
Return on assets (d) | 0.89 | 0.87 | (0.06 | ) | 1.09 | 1.14 | |||||||||||||||||||||
Return on risk-weighted assets (d)(e)(f) | 1.51 | (g) | 1.52 | (0.11 | ) | 1.85 | 1.88 | ||||||||||||||||||||
Effective income tax rate | 30 | 30 | NM | 30 | 28 | ||||||||||||||||||||||
Overhead ratio | 64 | 67 | 102 | 63 | 61 | ||||||||||||||||||||||
(a) | Included a $(1.5) billion loss in the fourth quarter of 2013 as a result of implementing a funding valuation adjustment ("FVA") framework for OTC derivatives and structured notes. |
(b) | Prior period amounts have been reclassified to conform with current period presentation. |
(c) | Included Firmwide legal expense of $0.8 billion, $9.3 billion, $0.7 billion and $0.3 billion for the three months ended December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively; legal expense for the three months ended March 31, 2014 was not material. |
(d) | Ratios are based upon annualized amounts. |
(e) | For further discussion of ROTCE and return on Basel I risk-weighted assets, see pages 2 and 35. |
(f) | Basel III rules became effective on January 1, 2014; all prior period data is based on Basel I rules. For a further discussion, see footnote (a) on page 33. |
(g) | Estimated. |
Page 4
JPMORGAN CHASE & CO. | ![]() | |||||||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Mar 31, 2014 | ||||||||||||||||||||||||||
Change | ||||||||||||||||||||||||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Mar 31, | ||||||||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||
Cash and due from banks | $ | 26,321 | $ | 39,771 | $ | 30,664 | $ | 29,214 | $ | 45,524 | (34 | ) | % | (42 | ) | % | ||||||||||
Deposits with banks | 372,531 | 316,051 | 371,445 | 311,318 | 257,635 | 18 | 45 | |||||||||||||||||||
Federal funds sold and securities purchased under | ||||||||||||||||||||||||||
resale agreements | 265,168 | 248,116 | 235,916 | 252,507 | 218,343 | 7 | 21 | |||||||||||||||||||
Securities borrowed | 122,021 | 111,465 | 122,438 | 117,158 | 114,058 | 9 | 7 | |||||||||||||||||||
Trading assets: | ||||||||||||||||||||||||||
Debt and equity instruments | 315,932 | 308,905 | 316,560 | 327,719 | 360,382 | 2 | (12 | ) | ||||||||||||||||||
Derivative receivables | 59,272 | 65,759 | 66,788 | 73,751 | 70,609 | (10 | ) | (16 | ) | |||||||||||||||||
Securities | 351,850 | 354,003 | 356,556 | 354,725 | 365,744 | (1 | ) | (4 | ) | |||||||||||||||||
Loans | 730,971 | 738,418 | 728,679 | 725,586 | 728,886 | (1 | ) | - | ||||||||||||||||||
Less: Allowance for loan losses | 15,847 | 16,264 | 17,571 | 19,384 | 20,780 | (3 | ) | (24 | ) | |||||||||||||||||
Loans, net of allowance for loan losses | 715,124 | 722,154 | 711,108 | 706,202 | 708,106 | (1 | ) | 1 | ||||||||||||||||||
Accrued interest and accounts receivable | 73,122 | 65,160 | 66,269 | 81,562 | 74,208 | 12 | (1 | ) | ||||||||||||||||||
Premises and equipment | 14,919 | 14,891 | 14,876 | 14,574 | 14,541 | - | 3 | |||||||||||||||||||
Goodwill | 48,065 | 48,081 | 48,100 | 48,057 | 48,067 | - | - | |||||||||||||||||||
Mortgage servicing rights | 8,552 | 9,614 | 9,490 | 9,335 | 7,949 | (11 | ) | 8 | ||||||||||||||||||
Other intangible assets | 1,489 | 1,618 | 1,817 | 1,951 | 2,082 | (8 | ) | (28 | ) | |||||||||||||||||
Other assets | 102,620 | 110,101 | 111,282 | 111,421 | 102,101 | (7 | ) | 1 | ||||||||||||||||||
TOTAL ASSETS | $ | 2,476,986 | $ | 2,415,689 | $ | 2,463,309 | $ | 2,439,494 | $ | 2,389,349 | 3 | 4 | ||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||
Deposits | $ | 1,282,705 | $ | 1,287,765 | $ | 1,281,102 | $ | 1,202,950 | $ | 1,202,507 | - | 7 | ||||||||||||||
Federal funds purchased and securities loaned or sold | ||||||||||||||||||||||||||
under repurchase agreements | 217,442 | 181,163 | 218,728 | 258,962 | 248,245 | 20 | (12 | ) | ||||||||||||||||||
Commercial paper | 60,825 | 57,848 | 53,741 | 56,631 | 58,835 | 5 | 3 | |||||||||||||||||||
Other borrowed funds | 31,951 | 27,994 | 30,436 | 30,385 | 27,200 | 14 | 17 | |||||||||||||||||||
Trading liabilities: | ||||||||||||||||||||||||||
Debt and equity instruments | 91,471 | 80,430 | 87,334 | 84,208 | 63,737 | 14 | 44 | |||||||||||||||||||
Derivative payables | 49,138 | 57,314 | 60,785 | 64,385 | 61,989 | (14 | ) | (21 | ) | |||||||||||||||||
Accounts payable and other liabilities | 202,499 | 194,491 | 212,283 | 211,432 | 193,089 | 4 | 5 | |||||||||||||||||||
Beneficial interests issued by consolidated VIEs | 46,788 | 49,617 | 48,858 | 55,090 | 58,300 | (6 | ) | (20 | ) | |||||||||||||||||
Long-term debt | 274,512 | 267,889 | 263,372 | 266,212 | 268,361 | 2 | 2 | |||||||||||||||||||
TOTAL LIABILITIES | 2,257,331 | 2,204,511 | 2,256,639 | 2,230,255 | 2,182,263 | 2 | 3 | |||||||||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||
Preferred stock | 15,083 | 11,158 | 11,158 | 11,458 | 9,958 | 35 | 51 | |||||||||||||||||||
Common stock | 4,105 | 4,105 | 4,105 | 4,105 | 4,105 | - | - | |||||||||||||||||||
Capital surplus | 92,623 | 93,828 | 93,555 | 93,416 | 93,161 | (1 | ) | (1 | ) | |||||||||||||||||
Retained earnings | 119,318 | 115,756 | 112,135 | 114,216 | 109,402 | 3 | 9 | |||||||||||||||||||
Accumulated other comprehensive income | 2,276 | 1,199 | 390 | 136 | 3,491 | 90 | (35 | ) | ||||||||||||||||||
Shares held in RSU Trust, at cost | (21 | ) | (21 | ) | (21 | ) | (21 | ) | (21 | ) | - | - | ||||||||||||||
Treasury stock, at cost | (13,729 | ) | (14,847 | ) | (14,652 | ) | (14,071 | ) | (13,010 | ) | 8 | (6 | ) | |||||||||||||
TOTAL STOCKHOLDERS' EQUITY | 219,655 | 211,178 | 206,670 | 209,239 | 207,086 | 4 | 6 | |||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,476,986 | $ | 2,415,689 | $ | 2,463,309 | $ | 2,439,494 | $ | 2,389,349 | 3 | 4 | ||||||||||||||
Page 5
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS | |||||||||||||||||||||||||||
(in millions, except rates) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
AVERAGE BALANCES | 1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||
Deposits with banks | $ | 319,130 | $ | 329,322 | $ | 321,271 | $ | 265,821 | $ | 156,988 | (3 | ) | % | 103 | % | ||||||||||||
Federal funds sold and securities purchased under | |||||||||||||||||||||||||||
resale agreements | 245,389 | 233,149 | 229,730 | 231,972 | 231,421 | 5 | 6 | ||||||||||||||||||||
Securities borrowed | 118,227 | 117,730 | 119,950 | 115,194 | 120,337 | - | (2 | ) | |||||||||||||||||||
Trading assets - debt instruments | 202,387 | 208,032 | 212,228 | 240,952 | 250,502 | (3 | ) | (19 | ) | ||||||||||||||||||
Securities | 348,771 | 348,223 | 351,648 | 359,108 | 368,673 | - | (5 | ) | |||||||||||||||||||
Loans | 730,312 | 729,621 | 723,538 | 727,499 | 725,124 | - | 1 | ||||||||||||||||||||
Other assets (a) | 41,430 | 39,384 | 39,048 | 39,920 | 43,039 | 5 | (4 | ) | |||||||||||||||||||
Total interest-earning assets | 2,005,646 | 2,005,461 | 1,997,413 | 1,980,466 | 1,896,084 | - | 6 | ||||||||||||||||||||
Trading assets - equity instruments | 112,525 | 111,051 | 103,347 | 116,333 | 120,192 | 1 | (6 | ) | |||||||||||||||||||
Trading assets - derivative receivables | 64,820 | 68,709 | 71,657 | 75,310 | 74,918 | (6 | ) | (13 | ) | ||||||||||||||||||
All other noninterest-earning assets | 219,713 | 222,380 | 217,352 | 227,861 | 230,836 | (1 | ) | (5 | ) | ||||||||||||||||||
TOTAL ASSETS | $ | 2,402,704 | $ | 2,407,601 | $ | 2,389,769 | $ | 2,399,970 | $ | 2,322,030 | - | 3 | |||||||||||||||
LIABILITIES | |||||||||||||||||||||||||||
Interest-bearing deposits | $ | 866,759 | $ | 860,067 | $ | 832,192 | $ | 810,096 | $ | 787,870 | 1 | 10 | |||||||||||||||
Federal funds purchased and securities loaned or | |||||||||||||||||||||||||||
sold under repurchase agreements | 200,918 | 207,747 | 231,938 | 264,240 | 250,827 | (3 | ) | (20 | ) | ||||||||||||||||||
Commercial paper | 58,682 | 54,098 | 53,287 | 54,391 | 53,084 | 8 | 11 | ||||||||||||||||||||
Trading liabilities - debt, short-term and other liabilities (b) | 214,810 | 211,414 | 213,261 | 201,668 | 184,824 | 2 | 16 | ||||||||||||||||||||
Beneficial interests issued by consolidated VIEs | 49,058 | 49,866 | 52,522 | 56,742 | 60,341 | (2 | ) | (19 | ) | ||||||||||||||||||
Long-term debt | 269,403 | 265,676 | 265,396 | 270,796 | 254,326 | 1 | 6 | ||||||||||||||||||||
Total interest-bearing liabilities | 1,659,630 | 1,648,868 | 1,648,596 | 1,657,933 | 1,591,272 | 1 | 4 | ||||||||||||||||||||
Noninterest-bearing deposits | 377,520 | 381,242 | 364,495 | 363,537 | 355,913 | (1 | ) | 6 | |||||||||||||||||||
Trading liabilities - equity instruments | 16,432 | 15,209 | 14,696 | 13,737 | 13,203 | 8 | 24 | ||||||||||||||||||||
Trading liabilities - derivative payables | 53,143 | 60,011 | 63,378 | 66,246 | 68,683 | (11 | ) | (23 | ) | ||||||||||||||||||
All other noninterest-bearing liabilities | 80,626 | 94,753 | 89,419 | 90,139 | 88,618 | (15 | ) | (9 | ) | ||||||||||||||||||
TOTAL LIABILITIES | 2,187,351 | 2,200,083 | 2,180,584 | 2,191,592 | 2,117,689 | (1 | ) | 3 | |||||||||||||||||||
Preferred stock | 13,556 | 11,158 | 11,953 | 11,095 | 9,608 | 21 | 41 | ||||||||||||||||||||
Common stockholders' equity | 201,797 | 196,360 | 197,232 | 197,283 | 194,733 | 3 | 4 | ||||||||||||||||||||
TOTAL STOCKHOLDERS' EQUITY | 215,353 | 207,518 | 209,185 | 208,378 | 204,341 | 4 | 5 | ||||||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 2,402,704 | $ | 2,407,601 | $ | 2,389,769 | $ | 2,399,970 | $ | 2,322,030 | - | 3 | |||||||||||||||
AVERAGE RATES (c) | |||||||||||||||||||||||||||
INTEREST-EARNING ASSETS | |||||||||||||||||||||||||||
Deposits with banks | 0.33 | % | 0.32 | % | 0.33 | % | 0.34 | % | 0.42 | % | |||||||||||||||||
Federal funds sold and securities purchased under | |||||||||||||||||||||||||||
resale agreements | 0.72 | 0.77 | 0.84 | 0.85 | 0.90 | ||||||||||||||||||||||
Securities borrowed (d) | (0.30 | ) | (0.19 | ) | (0.12 | ) | (0.11 | ) | (0.02 | ) | |||||||||||||||||
Trading assets - debt instruments (e) | 3.59 | 3.60 | 3.60 | 3.57 | 3.62 | ||||||||||||||||||||||
Securities | 2.77 | 2.61 | 2.40 | 2.10 | 2.19 | ||||||||||||||||||||||
Loans | 4.49 | 4.54 | 4.57 | 4.62 | 4.78 | ||||||||||||||||||||||
Other assets (a) | 1.58 | 1.62 | 1.54 | 1.48 | 0.75 | ||||||||||||||||||||||
Total interest-earning assets | 2.63 | 2.64 | 2.63 | 2.68 | 2.89 | ||||||||||||||||||||||
INTEREST-BEARING LIABILITIES | |||||||||||||||||||||||||||
Interest-bearing deposits | 0.20 | 0.22 | 0.25 | 0.27 | 0.28 | ||||||||||||||||||||||
Federal funds purchased and securities loaned or | |||||||||||||||||||||||||||
sold under repurchase agreements | 0.33 | 0.28 | 0.19 | 0.24 | 0.27 | ||||||||||||||||||||||
Commercial paper | 0.23 | 0.21 | 0.21 | 0.21 | 0.20 | ||||||||||||||||||||||
Trading liabilities - debt, short-term and other liabilities (b)(d)(e) | 0.44 | 0.56 | 0.54 | 0.50 | 0.58 | ||||||||||||||||||||||
Beneficial interests issued by consolidated VIEs | 0.87 | 0.84 | 0.85 | 0.89 | 0.90 | ||||||||||||||||||||||
Long-term debt | 1.76 | 1.81 | 1.85 | 1.87 | 2.06 | ||||||||||||||||||||||
Total interest-bearing liabilities | 0.52 | 0.54 | 0.55 | 0.57 | 0.62 | ||||||||||||||||||||||
INTEREST RATE SPREAD (e) | 2.11 | % | 2.10 | % | 2.08 | % | 2.11 | % | 2.27 | % | |||||||||||||||||
NET YIELD ON INTEREST-EARNING ASSETS | 2.20 | % | 2.20 | % | 2.18 | % | 2.20 | % | 2.37 | % | |||||||||||||||||
(a) | Includes margin loans. |
(b) | Includes brokerage customer payables. |
(c) | Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable. |
(d) | Negative yield is the result of increased client-driven demand for certain securities combined with the impact of low interest rates; the offset of this matched book activity is reflected as lower net interest expense reported within trading liabilities - debt, short-term and other liabilities. |
(e) | Prior period amounts have been reclassified to conform with current period presentation. |
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JPMORGAN CHASE & CO. | ![]() | ||||||||||||
CORE NET INTEREST INCOME | |||||||||||||
(in millions, except rates) |
In addition to reviewing net interest income on a managed basis, management also reviews core net interest income to assess the performance of its core lending, investing (including asset-liability management) and deposit-raising activities (which excludes the impact of Corporate & Investment Bank's ("CIB") market-based activities). The core data presented below are non-GAAP financial measures due to the exclusion of CIB's market-based net interest income and the related assets. Management believes this exclusion provides investors and analysts a more meaningful measure by which to analyze the non-market-related business trends of the Firm and provides a comparable measure to other financial institutions that are primarily focused on core lending, investing and deposit-raising activities. For a further discussion of these measures, see Explanation and Reconciliation of the Firm's Use of Non-GAAP Financial Measures on pages 82-83 of the Annual Report on Form 10-K for the year ended December 31, 2013 (the "2013 Annual Report").
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
CORE NET INTEREST INCOME DATA (a) | |||||||||||||||||||||||||||
Net interest income - managed basis (b)(c) | $ | 10,893 | $ | 11,096 | $ | 10,956 | $ | 10,869 | $ | 11,095 | (2 | ) | (2 | ) | % | ||||||||||||
Less: Market-based net interest income | 1,056 | 1,093 | 1,109 | 1,345 | 1,432 | (3 | ) | (26 | ) | ||||||||||||||||||
Core net interest income (b) | $ | 9,837 | $ | 10,003 | $ | 9,847 | $ | 9,524 | $ | 9,663 | (2 | ) | 2 | ||||||||||||||
Average interest-earning assets | $ | 2,005,646 | $ | 2,005,461 | $ | 1,997,413 | $ | 1,980,466 | $ | 1,896,084 | - | 6 | |||||||||||||||
Less: Average market-based earning assets | 507,499 | 501,716 | 493,780 | 512,631 | 508,941 | 1 | - | ||||||||||||||||||||
Core average interest-earning assets | $ | 1,498,147 | $ | 1,503,745 | $ | 1,503,633 | $ | 1,467,835 | $ | 1,387,143 | - | 8 | |||||||||||||||
Net interest yield on interest-earning assets - | |||||||||||||||||||||||||||
managed basis | 2.20 | % | 2.20 | % | 2.18 | % | 2.20 | % | 2.37 | % | |||||||||||||||||
Net interest yield on market-based activities | 0.84 | 0.86 | 0.89 | 1.05 | 1.14 | ||||||||||||||||||||||
Core net interest yield on core average interest-earning assets | 2.66 | 2.64 | 2.60 | 2.60 | 2.83 | ||||||||||||||||||||||
(a) | Includes core lending, investing and deposit-raising activities on a managed basis across each of the business segments and Corporate/Private Equity; excludes the market-based activities within the CIB. |
(b) | Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable. |
(c) | For a reconciliation of net interest income on a reported and managed basis, see Reconciliation from Reported to Managed Summary on page 8. |
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JPMORGAN CHASE & CO. | ![]() | ||||||||
RECONCILIATION FROM REPORTED TO MANAGED SUMMARY | |||||||||
(in millions, except ratios) |
The Firm prepares its consolidated financial statements using accounting principles generally accepted in the U.S. ("U.S. GAAP"). That presentation, which is referred to as "reported” basis, provides the reader with an understanding of the Firm's results that can be tracked consistently from year to year and enables a comparison of the Firm's performance with other companies' U.S. GAAP financial statements. In addition to analyzing the Firm's results on a reported basis, management reviews the Firm's results and the results of the lines of business on a “managed” basis, which is a non-GAAP financial measure. For additional information on managed basis, refer to the notes on Non-GAAP Financial Measures on page 35.
The following summary table provides a reconciliation from reported U.S. GAAP results to managed basis.
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
OTHER INCOME | |||||||||||||||||||||||||||
Other income - reported | $ | 391 | $ | 2,483 | $ | 602 | $ | 226 | $ | 536 | (84 | ) | % | (27 | ) | % | |||||||||||
Fully taxable-equivalent adjustments (a) | 644 | 767 | 582 | 582 | 564 | (16 | ) | 14 | |||||||||||||||||||
Other income - managed | $ | 1,035 | $ | 3,250 | $ | 1,184 | $ | 808 | $ | 1,100 | (68 | ) | (6 | ) | |||||||||||||
TOTAL NONINTEREST REVENUE | |||||||||||||||||||||||||||
Total noninterest revenue - reported | $ | 12,326 | $ | 12,249 | $ | 12,342 | $ | 14,507 | $ | 14,189 | 1 | (13 | ) | ||||||||||||||
Fully taxable-equivalent adjustments (a) | 644 | 767 | 582 | 582 | 564 | (16 | ) | 14 | |||||||||||||||||||
Total noninterest revenue - managed | $ | 12,970 | $ | 13,016 | $ | 12,924 | $ | 15,089 | $ | 14,753 | - | (12 | ) | ||||||||||||||
NET INTEREST INCOME | |||||||||||||||||||||||||||
Net interest income - reported | $ | 10,667 | $ | 10,907 | $ | 10,775 | $ | 10,704 | $ | 10,933 | (2 | ) | (2 | ) | |||||||||||||
Fully taxable-equivalent adjustments (a) | 226 | 189 | 181 | 165 | 162 | 20 | 40 | ||||||||||||||||||||
Net interest income - managed | $ | 10,893 | $ | 11,096 | $ | 10,956 | $ | 10,869 | $ | 11,095 | (2 | ) | (2 | ) | |||||||||||||
TOTAL NET REVENUE | |||||||||||||||||||||||||||
Total net revenue - reported | $ | 22,993 | $ | 23,156 | $ | 23,117 | $ | 25,211 | $ | 25,122 | (1 | ) | (8 | ) | |||||||||||||
Fully taxable-equivalent adjustments (a) | 870 | 956 | 763 | 747 | 726 | (9 | ) | 20 | |||||||||||||||||||
Total net revenue - managed | $ | 23,863 | $ | 24,112 | $ | 23,880 | $ | 25,958 | $ | 25,848 | (1 | ) | (8 | ) | |||||||||||||
PRE-PROVISION PROFIT/(LOSS) | |||||||||||||||||||||||||||
Pre-provision profit - reported | $ | 8,357 | $ | 7,604 | $ | (509 | ) | $ | 9,345 | $ | 9,699 | 10 | (14 | ) | |||||||||||||
Fully taxable-equivalent adjustments (a) | 870 | 956 | 763 | 747 | 726 | (9 | ) | 20 | |||||||||||||||||||
Pre-provision profit - managed | $ | 9,227 | $ | 8,560 | $ | 254 | $ | 10,092 | $ | 10,425 | 8 | (11 | ) | ||||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | |||||||||||||||||||||||||||
Income before income tax expense - reported | $ | 7,507 | $ | 7,500 | $ | 34 | $ | 9,298 | $ | 9,082 | - | (17 | ) | ||||||||||||||
Fully taxable-equivalent adjustments (a) | 870 | 956 | 763 | 747 | 726 | (9 | ) | 20 | |||||||||||||||||||
Income before income tax expense - managed | $ | 8,377 | $ | 8,456 | $ | 797 | $ | 10,045 | $ | 9,808 | (1 | ) | (15 | ) | |||||||||||||
INCOME TAX EXPENSE | |||||||||||||||||||||||||||
Income tax expense - reported | $ | 2,233 | $ | 2,222 | $ | 414 | $ | 2,802 | $ | 2,553 | - | (13 | ) | ||||||||||||||
Fully taxable-equivalent adjustments (a) | 870 | 956 | 763 | 747 | 726 | (9 | ) | 20 | |||||||||||||||||||
Income tax expense - managed | $ | 3,103 | $ | 3,178 | $ | 1,177 | $ | 3,549 | $ | 3,279 | (2 | ) | (5 | ) | |||||||||||||
OVERHEAD RATIO | |||||||||||||||||||||||||||
Overhead ratio - reported | 64 | % | 67 | % | 102 | % | 63 | % | 61 | % | |||||||||||||||||
Overhead ratio - managed | 61 | 64 | 99 | 61 | 60 | ||||||||||||||||||||||
(a) | Predominantly recognized in the Corporate & Investment Bank and Commercial Banking business segments and Corporate/Private Equity. |
Page 8
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
LINE OF BUSINESS FINANCIAL HIGHLIGHTS - MANAGED BASIS | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
TOTAL NET REVENUE (fully taxable-equivalent ("FTE")) | |||||||||||||||||||||||||||
Consumer & Community Banking | $ | 10,460 | $ | 11,314 | $ | 11,082 | $ | 12,015 | $ | 11,615 | (8 | ) | % | (10 | ) | % | |||||||||||
Corporate & Investment Bank | 8,606 | 6,020 | 8,189 | 9,876 | 10,140 | 43 | (15 | ) | |||||||||||||||||||
Commercial Banking | 1,651 | 1,847 | 1,725 | 1,728 | 1,673 | (11 | ) | (1 | ) | ||||||||||||||||||
Asset Management | 2,778 | 3,179 | 2,763 | 2,725 | 2,653 | (13 | ) | 5 | |||||||||||||||||||
Corporate/Private Equity | 368 | 1,752 | 121 | (386 | ) | (233 | ) | (79 | ) | NM | |||||||||||||||||
TOTAL NET REVENUE | $ | 23,863 | $ | 24,112 | $ | 23,880 | $ | 25,958 | $ | 25,848 | (1 | ) | (8 | ) | |||||||||||||
TOTAL NONINTEREST EXPENSE | |||||||||||||||||||||||||||
Consumer & Community Banking | $ | 6,437 | $ | 7,321 | $ | 6,867 | $ | 6,864 | $ | 6,790 | (12 | ) | (5 | ) | |||||||||||||
Corporate & Investment Bank | 5,604 | 4,892 | 4,999 | 5,742 | 6,111 | 15 | (8 | ) | |||||||||||||||||||
Commercial Banking | 686 | 653 | 661 | 652 | 644 | 5 | 7 | ||||||||||||||||||||
Asset Management | 2,075 | 2,245 | 2,003 | 1,892 | 1,876 | (8 | ) | 11 | |||||||||||||||||||
Corporate/Private Equity | (166 | ) | 441 | 9,096 | 716 | 2 | NM | NM | |||||||||||||||||||
TOTAL NONINTEREST EXPENSE | $ | 14,636 | $ | 15,552 | $ | 23,626 | $ | 15,866 | $ | 15,423 | (6 | ) | (5 | ) | |||||||||||||
PRE-PROVISION PROFIT/(LOSS) | |||||||||||||||||||||||||||
Consumer & Community Banking | $ | 4,023 | $ | 3,993 | $ | 4,215 | $ | 5,151 | $ | 4,825 | 1 | (17 | ) | ||||||||||||||
Corporate & Investment Bank | 3,002 | 1,128 | 3,190 | 4,134 | 4,029 | 166 | (25 | ) | |||||||||||||||||||
Commercial Banking | 965 | 1,194 | 1,064 | 1,076 | 1,029 | (19 | ) | (6 | ) | ||||||||||||||||||
Asset Management | 703 | 934 | 760 | 833 | 777 | (25 | ) | (10 | ) | ||||||||||||||||||
Corporate/Private Equity | 534 | 1,311 | (8,975 | ) | (1,102 | ) | (235 | ) | (59 | ) | NM | ||||||||||||||||
PRE-PROVISION PROFIT | $ | 9,227 | $ | 8,560 | $ | 254 | $ | 10,092 | $ | 10,425 | 8 | (11 | ) | ||||||||||||||
PROVISION FOR CREDIT LOSSES | |||||||||||||||||||||||||||
Consumer & Community Banking | $ | 816 | $ | 72 | $ | (267 | ) | $ | (19 | ) | $ | 549 | NM | 49 | |||||||||||||
Corporate & Investment Bank | 49 | (19 | ) | (218 | ) | (6 | ) | 11 | NM | 345 | |||||||||||||||||
Commercial Banking | 5 | 43 | (41 | ) | 44 | 39 | (88 | ) | (87 | ) | |||||||||||||||||
Asset Management | (9 | ) | 21 | — | 23 | 21 | NM | NM | |||||||||||||||||||
Corporate/Private Equity | (11 | ) | (13 | ) | (17 | ) | 5 | (3 | ) | 15 | (267 | ) | |||||||||||||||
PROVISION FOR CREDIT LOSSES | $ | 850 | $ | 104 | $ | (543 | ) | $ | 47 | $ | 617 | NM | 38 | ||||||||||||||
NET INCOME/(LOSS) | |||||||||||||||||||||||||||
Consumer & Community Banking | $ | 1,936 | $ | 2,372 | $ | 2,702 | $ | 3,089 | $ | 2,586 | (18 | ) | (25 | ) | |||||||||||||
Corporate & Investment Bank | 1,979 | 858 | 2,240 | 2,838 | 2,610 | 131 | (24 | ) | |||||||||||||||||||
Commercial Banking | 578 | 693 | 665 | 621 | 596 | (17 | ) | (3 | ) | ||||||||||||||||||
Asset Management | 441 | 568 | 476 | 500 | 487 | (22 | ) | (9 | ) | ||||||||||||||||||
Corporate/Private Equity | 340 | 787 | (6,463 | ) | (552 | ) | 250 | (57 | ) | 36 | |||||||||||||||||
TOTAL NET INCOME/(LOSS) | $ | 5,274 | $ | 5,278 | $ | (380 | ) | $ | 6,496 | $ | 6,529 | - | (19 | ) | |||||||||||||
Page 9
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CONSUMER & COMMUNITY BANKING | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||
(in millions, except ratio and headcount data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
INCOME STATEMENT | |||||||||||||||||||||||||||
REVENUE | |||||||||||||||||||||||||||
Lending- and deposit-related fees | $ | 703 | $ | 753 | $ | 780 | $ | 727 | $ | 723 | (7 | ) | % | (3 | ) | % | |||||||||||
Asset management, administration and commissions | 503 | 507 | 515 | 561 | 533 | (1 | ) | (6 | ) | ||||||||||||||||||
Mortgage fees and related income | 514 | 1,087 | 839 | 1,819 | 1,450 | (53 | ) | (65 | ) | ||||||||||||||||||
Card income | 1,348 | 1,518 | 1,460 | 1,445 | 1,362 | (11 | ) | (1 | ) | ||||||||||||||||||
All other income | 366 | 399 | 367 | 369 | 338 | (8 | ) | 8 | |||||||||||||||||||
Noninterest revenue | 3,434 | 4,264 | 3,961 | 4,921 | 4,406 | (19 | ) | (22 | ) | ||||||||||||||||||
Net interest income | 7,026 | 7,050 | 7,121 | 7,094 | 7,209 | - | (3 | ) | |||||||||||||||||||
TOTAL NET REVENUE | 10,460 | 11,314 | 11,082 | 12,015 | 11,615 | (8 | ) | (10 | ) | ||||||||||||||||||
Provision for credit losses | 816 | 72 | (267 | ) | (19 | ) | 549 | NM | 49 | ||||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||
Compensation expense | 2,739 | 2,765 | 2,949 | 2,966 | 3,006 | (1 | ) | (9 | ) | ||||||||||||||||||
Noncompensation expense | 3,604 | 4,458 | 3,817 | 3,789 | 3,676 | (19 | ) | (2 | ) | ||||||||||||||||||
Amortization of intangibles | 94 | 98 | 101 | 109 | 108 | (4 | ) | (13 | ) | ||||||||||||||||||
TOTAL NONINTEREST EXPENSE | 6,437 | 7,321 | 6,867 | 6,864 | 6,790 | (12 | ) | (5 | ) | ||||||||||||||||||
Income before income tax expense | 3,207 | 3,921 | 4,482 | 5,170 | 4,276 | (18 | ) | (25 | ) | ||||||||||||||||||
Income tax expense | 1,271 | 1,549 | 1,780 | 2,081 | 1,690 | (18 | ) | (25 | ) | ||||||||||||||||||
NET INCOME | $ | 1,936 | $ | 2,372 | $ | 2,702 | $ | 3,089 | $ | 2,586 | (18 | ) | (25 | ) | |||||||||||||
FINANCIAL RATIOS | |||||||||||||||||||||||||||
ROE | 15 | % | 20 | % | 23 | % | 27 | % | 23 | % | |||||||||||||||||
Overhead ratio | 62 | 65 | 62 | 57 | 58 | ||||||||||||||||||||||
SELECTED BALANCE SHEET DATA (period-end) | |||||||||||||||||||||||||||
Total assets | $ | 441,502 | $ | 452,929 | $ | 451,166 | $ | 460,642 | $ | 458,902 | (3 | ) | (4 | ) | |||||||||||||
Loans: | |||||||||||||||||||||||||||
Loans retained | 386,314 | 393,351 | 390,345 | 392,067 | 393,575 | (2 | ) | (2 | ) | ||||||||||||||||||
Loans held-for-sale and loans at fair value (a) | 7,411 | 7,772 | 10,758 | 15,274 | 16,277 | (5 | ) | (54 | ) | ||||||||||||||||||
Total loans | 393,725 | 401,123 | 401,103 | 407,341 | 409,852 | (2 | ) | (4 | ) | ||||||||||||||||||
Deposits | 487,674 | 464,412 | 458,867 | 456,814 | 457,176 | 5 | 7 | ||||||||||||||||||||
Equity (b) | 51,000 | 46,000 | 46,000 | 46,000 | 46,000 | 11 | 11 | ||||||||||||||||||||
SELECTED BALANCE SHEET DATA (average) | |||||||||||||||||||||||||||
Total assets | $ | 450,424 | $ | 450,987 | $ | 453,881 | $ | 457,644 | $ | 463,527 | - | (3 | ) | ||||||||||||||
Loans: | |||||||||||||||||||||||||||
Loans retained | 388,678 | 390,368 | 390,865 | 392,935 | 397,118 | - | (2 | ) | |||||||||||||||||||
Loans held-for-sale and loans at fair value (a) | 8,102 | 9,882 | 14,127 | 18,199 | 21,181 | (18 | ) | (62 | ) | ||||||||||||||||||
Total loans | 396,780 | 400,250 | 404,992 | 411,134 | 418,299 | (1 | ) | (5 | ) | ||||||||||||||||||
Deposits | 471,581 | 461,097 | 456,940 | 453,586 | 441,335 | 2 | 7 | ||||||||||||||||||||
Equity (b) | 51,000 | 46,000 | 46,000 | 46,000 | 46,000 | 11 | 11 | ||||||||||||||||||||
Headcount | 145,651 | 151,333 | 156,064 | 157,886 | 161,123 | (4 | ) | (10 | ) | ||||||||||||||||||
(a) | Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets and Condensed Average Balance Sheets. |
(b) | 2014 includes $3.0 billion of operational risk capital held at the CCB level related to legacy mortgage servicing matters. |
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JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CONSUMER & COMMUNITY BANKING | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||
(in millions, except ratio data and where otherwise noted) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
CREDIT DATA AND QUALITY STATISTICS | |||||||||||||||||||||||||||
Net charge-offs (a) | $ | 1,266 | $ | 1,316 | $ | 1,330 | $ | 1,481 | $ | 1,699 | (4 | ) | % | (25 | ) | % | |||||||||||
Nonaccrual loans: | |||||||||||||||||||||||||||
Nonaccrual loans retained | 7,301 | 7,455 | 8,029 | 8,540 | 8,996 | (2 | ) | (19 | ) | ||||||||||||||||||
Nonaccrual loans held-for-sale and loans | |||||||||||||||||||||||||||
at fair value | 39 | 40 | 40 | 41 | 42 | (3 | ) | (7 | ) | ||||||||||||||||||
Total nonaccrual loans (b)(c)(d) | 7,340 | 7,495 | 8,069 | 8,581 | 9,038 | (2 | ) | (19 | ) | ||||||||||||||||||
Nonperforming assets (b)(c)(d) | 7,971 | 8,149 | 8,713 | 9,212 | 9,708 | (2 | ) | (18 | ) | ||||||||||||||||||
Allowance for loan losses (a) | 11,686 | 12,201 | 13,500 | 15,095 | 16,599 | (4 | ) | (30 | ) | ||||||||||||||||||
Net charge-off rate (a)(e) | 1.32 | % | 1.34 | % | 1.35 | % | 1.51 | % | 1.74 | % | |||||||||||||||||
Net charge-off rate, excluding purchased credit-impaired | |||||||||||||||||||||||||||
("PCI") loans (e) | 1.53 | 1.55 | 1.57 | 1.77 | 2.04 | ||||||||||||||||||||||
Allowance for loan losses to period-end loans retained | 3.03 | 3.10 | 3.46 | 3.85 | 4.22 | ||||||||||||||||||||||
Allowance for loan losses to period-end loans retained, | |||||||||||||||||||||||||||
excluding PCI loans (f) | 2.27 | 2.36 | 2.54 | 2.80 | 3.25 | ||||||||||||||||||||||
Allowance for loan losses to nonaccrual loans | |||||||||||||||||||||||||||
retained, excluding credit card (b)(f) | 55 | 57 | 55 | 58 | 65 | ||||||||||||||||||||||
Nonaccrual loans to total period-end loans, excluding | |||||||||||||||||||||||||||
credit card | 2.70 | 2.74 | 2.91 | 3.03 | 3.14 | ||||||||||||||||||||||
Nonaccrual loans to total period-end loans, excluding | |||||||||||||||||||||||||||
credit card and PCI loans (b) | 3.33 | 3.40 | 3.63 | 3.79 | 3.94 | ||||||||||||||||||||||
BUSINESS METRICS | |||||||||||||||||||||||||||
Number of: | |||||||||||||||||||||||||||
Branches | 5,632 | 5,630 | 5,652 | 5,657 | 5,632 | - | - | ||||||||||||||||||||
ATMs (g) | 20,370 | 20,290 | 20,041 | 19,852 | 19,418 | - | 5 | ||||||||||||||||||||
Active online customers (in thousands) | 35,038 | 33,742 | 32,916 | 32,245 | 32,281 | 4 | 9 | ||||||||||||||||||||
Active mobile customers (in thousands) | 16,405 | 15,629 | 14,993 | 14,013 | 13,263 | 5 | 24 | ||||||||||||||||||||
(a) | Net charge-offs and the net charge-off rates for the three months ended March 31, 2014 and December 31, 2013 excluded $61 million and $53 million, respectively, of write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans. |
(b) | Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing. |
(c) | Certain mortgage loans originated with the intent to sell are classified as trading assets on the Consolidated Balance Sheets and Condensed Average Balance Sheets. |
(d) | At March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.7 billion, $8.4 billion, $8.9 billion, $10.1 billion and $10.9 billion, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of $2.1 billion, $2.0 billion, $1.9 billion, $1.8 billion and $1.7 billion, respectively; and (3) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $387 million, $428 million, $456 million, $488 million and $523 million, respectively, that are 90 or more days past due. These amounts have been excluded from nonaccrual loans based upon the government guarantee. |
(e) | Loans held-for-sale and loans accounted for at fair value were excluded when calculating the net charge-off rate. |
(f) | The allowance for loan losses for PCI loans was $4.1 billion at March 31, 2014, $4.2 billion at December 31, 2013, $5.0 billion at September 30, 2013,and $5.7 billion at June 30, 2013 and March 31, 2013; these amounts were also excluded from the applicable ratios. |
(g) | Includes Express Banking Kiosks ("EBK"). Prior periods were revised to conform with the current presentation. |
Page 11
JPMORGAN CHASE & CO. | ![]() | |||||||||||||||||||||||||
CONSUMER & COMMUNITY BANKING | ||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | ||||||||||||||||||||||||||
(in millions, except ratio data and where otherwise noted) | ||||||||||||||||||||||||||
QUARTERLY TRENDS | ||||||||||||||||||||||||||
1Q14 Change | ||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | ||||||||||||||||||||
CONSUMER & BUSINESS BANKING | ||||||||||||||||||||||||||
Lending- and deposit-related fees | $ | 691 | $ | 744 | $ | 770 | $ | 717 | $ | 711 | (7 | ) | % | (3 | ) | % | ||||||||||
Asset management, administration and commissions | 483 | 470 | 465 | 454 | 426 | 3 | 13 | |||||||||||||||||||
Card income | 376 | 384 | 384 | 378 | 349 | (2 | ) | 8 | ||||||||||||||||||
All other income | 122 | 122 | 127 | 124 | 119 | - | 3 | |||||||||||||||||||
Noninterest revenue | 1,672 | 1,720 | 1,746 | 1,673 | 1,605 | (3 | ) | 4 | ||||||||||||||||||
Net interest income | 2,708 | 2,696 | 2,684 | 2,614 | 2,572 | - | 5 | |||||||||||||||||||
Total net revenue | 4,380 | 4,416 | 4,430 | 4,287 | 4,177 | (1 | ) | 5 | ||||||||||||||||||
Provision for credit losses | 76 | 108 | 104 | 74 | 61 | (30 | ) | 25 | ||||||||||||||||||
Noninterest expense | 3,065 | 3,029 | 3,050 | 3,042 | 3,041 | 1 | 1 | |||||||||||||||||||
Income before income tax expense | 1,239 | 1,279 | 1,276 | 1,171 | 1,075 | (3 | ) | 15 | ||||||||||||||||||
Net income | $ | 740 | $ | 780 | $ | 762 | $ | 698 | $ | 641 | (5 | ) | 15 | |||||||||||||
ROE | 27 | % | 28 | % | 27 | % | 25 | % | 24 | % | ||||||||||||||||
Overhead ratio | 70 | 69 | 69 | 71 | 73 | |||||||||||||||||||||
Equity (period-end and average) | $ | 11,000 | $ | 11,000 | $ | 11,000 | $ | 11,000 | $ | 11,000 | - | - | ||||||||||||||
BUSINESS METRICS | ||||||||||||||||||||||||||
Business banking origination volume | $ | 1,504 | $ | 1,298 | $ | 1,299 | $ | 1,317 | $ | 1,234 | 16 | 22 | ||||||||||||||
Period-end loans | 19,589 | 19,416 | 19,029 | 18,950 | 18,739 | 1 | 5 | |||||||||||||||||||
Period-end deposits: | ||||||||||||||||||||||||||
Checking | 199,717 | 187,182 | 180,858 | 179,801 | 180,326 | 7 | 11 | |||||||||||||||||||
Savings | 250,292 | 238,223 | 234,315 | 228,879 | 227,162 | 5 | 10 | |||||||||||||||||||
Time and other | 25,092 | 26,022 | 28,277 | 29,255 | 30,431 | (4 | ) | (18 | ) | |||||||||||||||||
Total period-end deposits | 475,101 | 451,427 | 443,450 | 437,935 | 437,919 | 5 | 8 | |||||||||||||||||||
Average loans | 19,450 | 19,021 | 18,884 | 18,758 | 18,711 | 2 | 4 | |||||||||||||||||||
Average deposits: | ||||||||||||||||||||||||||
Checking | 189,487 | 182,272 | 177,392 | 175,496 | 168,697 | 4 | 12 | |||||||||||||||||||
Savings | 243,500 | 236,343 | 231,982 | 227,453 | 221,394 | 3 | 10 | |||||||||||||||||||
Time and other | 25,478 | 27,354 | 28,728 | 29,840 | 31,029 | (7 | ) | (18 | ) | |||||||||||||||||
Total average deposits | 458,465 | 445,969 | 438,102 | 432,789 | 421,120 | 3 | 9 | |||||||||||||||||||
Deposit margin | 2.27 | % | 2.29 | % | 2.32 | % | 2.31 | % | 2.36 | % | ||||||||||||||||
Average assets | $ | 38,121 | $ | 37,818 | $ | 37,308 | $ | 37,250 | $ | 36,302 | 1 | 5 | ||||||||||||||
CREDIT DATA AND QUALITY STATISTICS | ||||||||||||||||||||||||||
Net charge-offs | $ | 76 | $ | 102 | $ | 100 | $ | 74 | $ | 61 | (25 | ) | 25 | |||||||||||||
Net charge-off rate | 1.58 | % | 2.13 | % | 2.10 | % | 1.58 | % | 1.32 | % | ||||||||||||||||
Allowance for loan losses | $ | 707 | $ | 707 | $ | 701 | $ | 697 | $ | 698 | - | 1 | ||||||||||||||
Nonperforming assets | 365 | 391 | 419 | 461 | 465 | (7 | ) | (22 | ) | |||||||||||||||||
RETAIL BRANCH BUSINESS METRICS | ||||||||||||||||||||||||||
Net new investment assets | $ | 4,241 | $ | 3,606 | $ | 3,199 | $ | 4,269 | $ | 4,932 | 18 | (14 | ) | |||||||||||||
Client investment assets | 195,706 | 188,840 | 178,989 | 171,925 | 168,527 | 4 | 16 | |||||||||||||||||||
% managed accounts | 37 | % | 36 | % | 34 | % | 33 | % | 31 | % | ||||||||||||||||
Number of: | ||||||||||||||||||||||||||
Chase Private Client locations | 2,244 | 2,149 | 1,948 | 1,691 | 1,392 | 4 | 61 | |||||||||||||||||||
Personal bankers | 22,654 | 23,588 | 22,961 | 22,825 | 23,130 | (4 | ) | (2 | ) | |||||||||||||||||
Sales specialists | 4,817 | 5,740 | 6,269 | 6,326 | 6,102 | (16 | ) | (21 | ) | |||||||||||||||||
Client advisors | 3,062 | 3,044 | 3,028 | 3,024 | 2,998 | 1 | 2 | |||||||||||||||||||
Chase Private Clients | 239,665 | 215,888 | 192,358 | 165,331 | 134,206 | 11 | 79 | |||||||||||||||||||
Accounts (in thousands) (a) | 29,819 | 29,437 | 29,301 | 28,937 | 28,530 | 1 | 5 | |||||||||||||||||||
(a) | Includes checking accounts and Chase Liquid® cards. |
Page 12
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CONSUMER & COMMUNITY BANKING | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||
(in millions, except ratio data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
MORTGAGE BANKING | |||||||||||||||||||||||||||
Mortgage fees and related income | $ | 514 | $ | 1,087 | $ | 839 | $ | 1,819 | $ | 1,450 | (53 | ) | % | (65 | ) | % | |||||||||||
All other income | (3 | ) | 51 | 38 | 101 | 93 | NM | NM | |||||||||||||||||||
Noninterest revenue | 511 | 1,138 | 877 | 1,920 | 1,543 | (55 | ) | (67 | ) | ||||||||||||||||||
Net interest income | 1,058 | 1,092 | 1,143 | 1,138 | 1,175 | (3 | ) | (10 | ) | ||||||||||||||||||
Total net revenue | 1,569 | 2,230 | 2,020 | 3,058 | 2,718 | (30 | ) | (42 | ) | ||||||||||||||||||
Provision for credit losses | (23 | ) | (782 | ) | (1,044 | ) | (657 | ) | (198 | ) | 97 | 88 | |||||||||||||||
Noninterest expense | 1,403 | 2,062 | 1,900 | 1,834 | 1,806 | (32 | ) | (22 | ) | ||||||||||||||||||
Income before income tax expense | 189 | 950 | 1,164 | 1,881 | 1,110 | (80 | ) | (83 | ) | ||||||||||||||||||
Net income | $ | 114 | $ | 562 | $ | 705 | $ | 1,142 | $ | 673 | (80 | ) | (83 | ) | |||||||||||||
ROE | 3 | % | 11 | % | 14 | % | 23 | % | 14 | % | |||||||||||||||||
Overhead ratio | 89 | 92 | 94 | 60 | 66 | ||||||||||||||||||||||
Equity (period-end and average) | $ | 18,000 | $ | 19,500 | $ | 19,500 | $ | 19,500 | $ | 19,500 | (8 | ) | (8 | ) | |||||||||||||
FUNCTIONAL RESULTS | |||||||||||||||||||||||||||
Mortgage Production | |||||||||||||||||||||||||||
Production revenue | $ | 161 | $ | 303 | $ | 311 | $ | 1,064 | $ | 995 | (47 | ) | (84 | ) | |||||||||||||
Production-related net interest & other income | 131 | 191 | 273 | 222 | 223 | (31 | ) | (41 | ) | ||||||||||||||||||
Production-related revenue, excluding repurchase (losses)/ | |||||||||||||||||||||||||||
benefits | 292 | 494 | 584 | 1,286 | 1,218 | (41 | ) | (76 | ) | ||||||||||||||||||
Production expense (a) | 478 | 989 | 669 | 720 | 710 | (52 | ) | (33 | ) | ||||||||||||||||||
Income, excluding repurchase (losses)/benefits | (186 | ) | (495 | ) | (85 | ) | 566 | 508 | 62 | NM | |||||||||||||||||
Repurchase (losses)/benefits | 128 | 221 | 175 | 16 | (81 | ) | (42 | ) | NM | ||||||||||||||||||
Income/(loss) before income tax expense/(benefit) | (58 | ) | (274 | ) | 90 | 582 | 427 | 79 | NM | ||||||||||||||||||
Mortgage Servicing | |||||||||||||||||||||||||||
Loan servicing revenue | $ | 870 | $ | 854 | $ | 817 | $ | 945 | $ | 936 | 2 | (7 | ) | ||||||||||||||
Servicing-related net interest & other income | 88 | 102 | 99 | 110 | 100 | (14 | ) | (12 | ) | ||||||||||||||||||
Servicing-related revenue | 958 | 956 | 916 | 1,055 | 1,036 | - | (8 | ) | |||||||||||||||||||
Changes in MSR asset fair value due to collection/realization | |||||||||||||||||||||||||||
of expected cash flows | (245 | ) | (267 | ) | (284 | ) | (285 | ) | (258 | ) | 8 | 5 | |||||||||||||||
Default servicing expense | 364 | 474 | 623 | 475 | 497 | (23 | ) | (27 | ) | ||||||||||||||||||
Core servicing expense (a) | 218 | 189 | 235 | 240 | 240 | 15 | (9 | ) | |||||||||||||||||||
Income/(loss), excluding MSR risk management | 131 | 26 | (226 | ) | 55 | 41 | 404 | 220 | |||||||||||||||||||
MSR risk management, including related net interest | |||||||||||||||||||||||||||
income/(expense) | (401 | ) | (24 | ) | (180 | ) | 78 | (142 | ) | NM | (182 | ) | |||||||||||||||
Income/(loss) before income tax expense/(benefit) | (270 | ) | 2 | (406 | ) | 133 | (101 | ) | NM | (167 | ) | ||||||||||||||||
Real Estate Portfolios | |||||||||||||||||||||||||||
Noninterest revenue | $ | (45 | ) | $ | (45 | ) | $ | (113 | ) | $ | (34 | ) | $ | (17 | ) | - | (165 | ) | |||||||||
Net interest income | 882 | 895 | 922 | 942 | 962 | (1 | ) | (8 | ) | ||||||||||||||||||
Total net revenue | 837 | 850 | 809 | 908 | 945 | (2 | ) | (11 | ) | ||||||||||||||||||
Provision for credit losses | (26 | ) | (783 | ) | (1,046 | ) | (662 | ) | (202 | ) | 97 | 87 | |||||||||||||||
Noninterest expense | 346 | 411 | 375 | 404 | 363 | (16 | ) | (5 | ) | ||||||||||||||||||
Income before income tax expense | 517 | 1,222 | 1,480 | 1,166 | 784 | (58 | ) | (34 | ) | ||||||||||||||||||
Mortgage Banking income before income tax | |||||||||||||||||||||||||||
expense | $ | 189 | $ | 950 | $ | 1,164 | $ | 1,881 | $ | 1,110 | (80 | ) | (83 | ) | |||||||||||||
Mortgage Banking net income | $ | 114 | $ | 562 | $ | 705 | $ | 1,142 | $ | 673 | (80 | ) | (83 | ) | |||||||||||||
Overhead ratios | |||||||||||||||||||||||||||
Mortgage Production | 113 | % | 138 | % | 88 | % | 55 | % | 62 | % | |||||||||||||||||
Mortgage Servicing | 186 | 100 | 190 | 84 | 116 | ||||||||||||||||||||||
Real Estate Portfolios | 41 | 48 | 46 | 44 | 38 | ||||||||||||||||||||||
(a) | Includes provision for credit losses. |
Page 13
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CONSUMER & COMMUNITY BANKING | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||
(in millions, except ratio data and where otherwise noted) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
MORTGAGE BANKING (continued) | |||||||||||||||||||||||||||
SUPPLEMENTAL MORTGAGE FEES AND RELATED | |||||||||||||||||||||||||||
INCOME DETAILS | |||||||||||||||||||||||||||
Net production revenue: | |||||||||||||||||||||||||||
Production revenue | $ | 161 | $ | 303 | $ | 311 | $ | 1,064 | $ | 995 | (47 | ) | % | (84 | ) | % | |||||||||||
Repurchase (losses)/benefits | 128 | 221 | 175 | 16 | (81 | ) | (42 | ) | NM | ||||||||||||||||||
Net production revenue | 289 | 524 | 486 | 1,080 | 914 | (45 | ) | (68 | ) | ||||||||||||||||||
Net mortgage servicing revenue: | |||||||||||||||||||||||||||
Operating revenue: | |||||||||||||||||||||||||||
Loan servicing revenue | 870 | 854 | 817 | 945 | 936 | 2 | (7 | ) | |||||||||||||||||||
Changes in MSR asset fair value due to collection/ | |||||||||||||||||||||||||||
realization of expected cash flows | (245 | ) | (267 | ) | (284 | ) | (285 | ) | (258 | ) | 8 | 5 | |||||||||||||||
Total operating revenue | 625 | 587 | 533 | 660 | 678 | 6 | (8 | ) | |||||||||||||||||||
Risk management: | |||||||||||||||||||||||||||
Changes in MSR asset fair value due to market interest | |||||||||||||||||||||||||||
rates and other (a) | (362 | ) | 421 | 80 | 1,072 | 546 | NM | NM | |||||||||||||||||||
Other changes in MSR asset fair value due to other inputs | |||||||||||||||||||||||||||
and assumptions in model (b) | (460 | ) | (65 | ) | (173 | ) | (36 | ) | (237 | ) | NM | (94 | ) | ||||||||||||||
Changes in derivative fair value and other | 422 | (380 | ) | (87 | ) | (957 | ) | (451 | ) | NM | NM | ||||||||||||||||
Total risk management | (400 | ) | (24 | ) | (180 | ) | 79 | (142 | ) | NM | (182 | ) | |||||||||||||||
Total net mortgage servicing revenue | 225 | 563 | 353 | 739 | 536 | (60 | ) | (58 | ) | ||||||||||||||||||
Mortgage fees and related income | $ | 514 | $ | 1,087 | $ | 839 | $ | 1,819 | $ | 1,450 | (53 | ) | (65 | ) | |||||||||||||
MORTGAGE PRODUCTION AND MORTGAGE SERVICING | |||||||||||||||||||||||||||
SELECTED BALANCE SHEET DATA | |||||||||||||||||||||||||||
Period-end loans: | |||||||||||||||||||||||||||
Prime mortgage, including option ARMs (c) | $ | 15,290 | $ | 15,136 | $ | 15,571 | $ | 15,567 | $ | 17,257 | 1 | (11 | ) | ||||||||||||||
Loans held-for-sale and loans at fair value (d) | 7,107 | 7,446 | 10,447 | 15,274 | 16,277 | (5 | ) | (56 | ) | ||||||||||||||||||
Average loans: | |||||||||||||||||||||||||||
Prime mortgage, including option ARMs (c) | 15,391 | 15,641 | 15,878 | 16,933 | 17,554 | (2 | ) | (12 | ) | ||||||||||||||||||
Loans held-for-sale and loans at fair value (d) | 7,787 | 9,571 | 14,060 | 18,199 | 21,181 | (19 | ) | (63 | ) | ||||||||||||||||||
Average assets | 45,890 | 49,742 | 54,870 | 59,880 | 64,218 | (8 | ) | (29 | ) | ||||||||||||||||||
Repurchase liability (period-end) | 534 | 651 | 1,945 | 2,245 | 2,430 | (18 | ) | (78 | ) | ||||||||||||||||||
CREDIT DATA AND QUALITY STATISTICS | |||||||||||||||||||||||||||
Net charge-offs: | |||||||||||||||||||||||||||
Prime mortgage, including option ARMs | $ | 3 | $ | 1 | $ | 2 | $ | 5 | $ | 4 | 200 | (25 | ) | ||||||||||||||
Net charge-off rate: | |||||||||||||||||||||||||||
Prime mortgage, including option ARMs | 0.08 | % | 0.03 | % | 0.05 | % | 0.12 | % | 0.09 | % | |||||||||||||||||
30+ day delinquency rate (e) | 2.34 | 2.75 | 3.16 | 3.46 | 3.04 | ||||||||||||||||||||||
Nonperforming assets (f) | $ | 539 | $ | 559 | $ | 670 | $ | 707 | $ | 643 | (4 | ) | (16 | ) | |||||||||||||
BUSINESS METRICS (in billions) | |||||||||||||||||||||||||||
Mortgage origination volume by channel | |||||||||||||||||||||||||||
Retail | $ | 6.7 | $ | 9.8 | $ | 17.7 | $ | 23.3 | $ | 26.2 | (32 | ) | (74 | ) | |||||||||||||
Correspondent (g) | 10.3 | 13.5 | 22.8 | 25.7 | 26.5 | (24 | ) | (61 | ) | ||||||||||||||||||
Total mortgage origination volume (h) | $ | 17.0 | $ | 23.3 | $ | 40.5 | $ | 49.0 | $ | 52.7 | (27 | ) | (68 | ) | |||||||||||||
Mortgage application volume by channel | |||||||||||||||||||||||||||
Retail | $ | 14.6 | $ | 15.8 | $ | 20.7 | $ | 36.8 | $ | 34.7 | (8 | ) | (58 | ) | |||||||||||||
Correspondent (g) | 11.5 | 15.5 | 19.7 | 28.2 | 25.8 | (26 | ) | (55 | ) | ||||||||||||||||||
Total mortgage application volume | $ | 26.1 | $ | 31.3 | $ | 40.4 | $ | 65.0 | $ | 60.5 | (17 | ) | (57 | ) | |||||||||||||
(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). |
(c) | Predominantly represents prime mortgage loans repurchased from Government National Mortgage Association (“Ginnie Mae”) pools, which are insured by U.S. government agencies. |
(d) | Predominantly consists of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets on the Consolidated Balance Sheets and Condensed Average Balance Sheets. |
(e) | At March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, excluded mortgage loans insured by U.S. government agencies of $8.8 billion, $9.6 billion, $10.0 billion,$11.2 billion and $11.9 billion, respectively, that are 30 or more days past due. These amounts were excluded based upon the government guarantee. |
(f) | At March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.7 billion, $8.4 billion, $8.9 billion, $10.1 billion and $10.9 billion, respectively, that are 90 or more days past due; and (2) real estate owned insured by U.S. government agencies of $2.1 billion, $2.0 billion, $1.9 billion, $1.8 billion and $1.7 billion, respectively. These amounts have been excluded based upon the government guarantee. |
(g) | Includes rural housing loans sourced through brokers and correspondents, which are underwritten and closed with pre-funding loan approval from the U.S. Department of Agriculture Rural Development, which acts as the guarantor in the transaction. |
(h) | Firmwide mortgage origination volume was $18.2 billion, $25.1 billion, $44.2 billion, $52.0 billion and $55.1 billion for the three months ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. |
Page 14
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CONSUMER & COMMUNITY BANKING | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||
(in millions, except ratio data and where otherwise noted) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
MORTGAGE BANKING (continued) | |||||||||||||||||||||||||||
MORTGAGE PRODUCTION AND MORTGAGE SERVICING | |||||||||||||||||||||||||||
(continued) | |||||||||||||||||||||||||||
BUSINESS METRICS (in billions)(continued) | |||||||||||||||||||||||||||
Third-party mortgage loans serviced (period-end) | $ | 803.1 | $ | 815.5 | $ | 831.1 | $ | 832.0 | $ | 849.2 | (2 | ) | % | (5 | ) | % | |||||||||||
Third-party mortgage loans serviced (average) | 809.3 | 823.3 | 831.5 | 840.6 | 854.3 | (2 | ) | (5 | ) | ||||||||||||||||||
MSR carrying value (period-end) | 8.5 | 9.6 | 9.5 | 9.3 | 7.9 | (11 | ) | 8 | |||||||||||||||||||
Ratio of MSR carrying value (period-end) to third-party mortgage | |||||||||||||||||||||||||||
loans serviced (period-end) | 1.06 | % | 1.18 | % | 1.14 | % | 1.12 | % | 0.93 | % | |||||||||||||||||
Ratio of annualized loan servicing-related revenue to third-party | |||||||||||||||||||||||||||
mortgage loans serviced (average) | 0.37 | 0.38 | 0.38 | 0.41 | 0.42 | ||||||||||||||||||||||
MSR revenue multiple (a) | 2.86 | x | 3.11 | x | 3.00 | x | 2.73 | x | 2.21 | x | |||||||||||||||||
REAL ESTATE PORTFOLIOS | |||||||||||||||||||||||||||
BUSINESS METRICS | |||||||||||||||||||||||||||
Loans, excluding PCI loans | |||||||||||||||||||||||||||
Period-end loans owned: | |||||||||||||||||||||||||||
Home equity | $ | 56,131 | $ | 57,863 | $ | 59,825 | $ | 62,326 | $ | 64,798 | (3 | ) | (13 | ) | |||||||||||||
Prime mortgage, including option ARMs | 51,520 | 49,463 | 47,958 | 44,003 | 41,997 | 4 | 23 | ||||||||||||||||||||
Subprime mortgage | 6,869 | 7,104 | 7,376 | 7,703 | 8,003 | (3 | ) | (14 | ) | ||||||||||||||||||
Other | 529 | 551 | 568 | 589 | 604 | (4 | ) | (12 | ) | ||||||||||||||||||
Total period-end loans owned | $ | 115,049 | $ | 114,981 | $ | 115,727 | $ | 114,621 | $ | 115,402 | - | - | |||||||||||||||
Average loans owned: | |||||||||||||||||||||||||||
Home equity | $ | 57,015 | $ | 58,838 | $ | 61,005 | $ | 63,593 | $ | 66,133 | (3 | ) | (14 | ) | |||||||||||||
Prime mortgage, including option ARMs | 50,735 | 48,875 | 46,177 | 43,007 | 41,808 | 4 | 21 | ||||||||||||||||||||
Subprime mortgage | 7,007 | 7,248 | 7,529 | 7,840 | 8,140 | (3 | ) | (14 | ) | ||||||||||||||||||
Other | 540 | 560 | 579 | 597 | 619 | (4 | ) | (13 | ) | ||||||||||||||||||
Total average loans owned | $ | 115,297 | $ | 115,521 | $ | 115,290 | $ | 115,037 | $ | 116,700 | - | (1 | ) | ||||||||||||||
PCI loans | |||||||||||||||||||||||||||
Period-end loans owned: | |||||||||||||||||||||||||||
Home equity | $ | 18,525 | $ | 18,927 | $ | 19,411 | $ | 19,992 | $ | 20,525 | (2 | ) | (10 | ) | |||||||||||||
Prime mortgage | 11,658 | 12,038 | 12,487 | 12,976 | 13,366 | (3 | ) | (13 | ) | ||||||||||||||||||
Subprime mortgage | 4,062 | 4,175 | 4,297 | 4,448 | 4,561 | (3 | ) | (11 | ) | ||||||||||||||||||
Option ARMs | 17,361 | 17,915 | 18,564 | 19,320 | 19,985 | (3 | ) | (13 | ) | ||||||||||||||||||
Total period-end loans owned | $ | 51,606 | $ | 53,055 | $ | 54,759 | $ | 56,736 | $ | 58,437 | (3 | ) | (12 | ) | |||||||||||||
Average loans owned: | |||||||||||||||||||||||||||
Home equity | $ | 18,719 | $ | 19,152 | $ | 19,677 | $ | 20,245 | $ | 20,745 | (2 | ) | (10 | ) | |||||||||||||
Prime mortgage | 11,870 | 12,273 | 12,705 | 13,152 | 13,524 | (3 | ) | (12 | ) | ||||||||||||||||||
Subprime mortgage | 4,128 | 4,234 | 4,357 | 4,488 | 4,589 | (3 | ) | (10 | ) | ||||||||||||||||||
Option ARMs | 17,687 | 18,234 | 18,890 | 19,618 | 20,227 | (3 | ) | (13 | ) | ||||||||||||||||||
Total average loans owned | $ | 52,404 | $ | 53,893 | $ | 55,629 | $ | 57,503 | $ | 59,085 | (3 | ) | (11 | ) | |||||||||||||
Total Real Estate Portfolios | |||||||||||||||||||||||||||
Period-end loans owned: | |||||||||||||||||||||||||||
Home equity | $ | 74,656 | $ | 76,790 | $ | 79,236 | $ | 82,318 | $ | 85,323 | (3 | ) | (13 | ) | |||||||||||||
Prime mortgage, including option ARMs | 80,539 | 79,416 | 79,009 | 76,299 | 75,348 | 1 | 7 | ||||||||||||||||||||
Subprime mortgage | 10,931 | 11,279 | 11,673 | 12,151 | 12,564 | (3 | ) | (13 | ) | ||||||||||||||||||
Other | 529 | 551 | 568 | 589 | 604 | (4 | ) | (12 | ) | ||||||||||||||||||
Total period-end loans owned | $ | 166,655 | $ | 168,036 | $ | 170,486 | $ | 171,357 | $ | 173,839 | (1 | ) | (4 | ) | |||||||||||||
Average loans owned: | |||||||||||||||||||||||||||
Home equity | $ | 75,734 | $ | 77,990 | $ | 80,682 | $ | 83,838 | $ | 86,878 | (3 | ) | (13 | ) | |||||||||||||
Prime mortgage, including option ARMs | 80,292 | 79,382 | 77,772 | 75,777 | 75,559 | 1 | 6 | ||||||||||||||||||||
Subprime mortgage | 11,135 | 11,482 | 11,886 | 12,328 | 12,729 | (3 | ) | (13 | ) | ||||||||||||||||||
Other | 540 | 560 | 579 | 597 | 619 | (4 | ) | (13 | ) | ||||||||||||||||||
Total average loans owned | $ | 167,701 | $ | 169,414 | $ | 170,919 | $ | 172,540 | $ | 175,785 | (1 | ) | (5 | ) | |||||||||||||
Average assets | 164,642 | 162,674 | 163,001 | 163,593 | 166,373 | 1 | (1 | ) | |||||||||||||||||||
Home equity origination volume | 655 | 643 | 580 | 499 | 402 | 2 | 63 | ||||||||||||||||||||
(a) | Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average). |
Page 15
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CONSUMER & COMMUNITY BANKING | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||
(in millions, except ratio data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
MORTGAGE BANKING (continued) | |||||||||||||||||||||||||||
REAL ESTATE PORTFOLIOS (continued) | |||||||||||||||||||||||||||
CREDIT DATA AND QUALITY STATISTICS | |||||||||||||||||||||||||||
Net charge-offs/(recoveries), excluding PCI loans (a) | |||||||||||||||||||||||||||
Home equity | $ | 166 | $ | 179 | $ | 218 | $ | 236 | $ | 333 | (7 | ) | % | (50 | ) | % | |||||||||||
Prime mortgage, including option ARMs | (7 | ) | (8 | ) | (11 | ) | 16 | 44 | 13 | NM | |||||||||||||||||
Subprime mortgage | 13 | (6 | ) | (4 | ) | 33 | 67 | NM | (81 | ) | |||||||||||||||||
Other | 2 | 2 | 1 | 3 | 4 | - | (50 | ) | |||||||||||||||||||
Total net charge-offs/(recoveries), excluding PCI loans | $ | 174 | $ | 167 | $ | 204 | $ | 288 | $ | 448 | 4 | (61 | ) | ||||||||||||||
Net charge-off/(recovery) rate, excluding PCI loans | |||||||||||||||||||||||||||
Home equity | 1.18 | % | 1.21 | % | 1.42 | % | 1.49 | % | 2.04 | % | |||||||||||||||||
Prime mortgage, including option ARMs | (0.06 | ) | (0.06 | ) | (0.09 | ) | 0.15 | 0.43 | |||||||||||||||||||
Subprime mortgage | 0.75 | (0.33 | ) | (0.21 | ) | 1.69 | 3.34 | ||||||||||||||||||||
Other | 1.50 | 1.42 | 0.69 | 2.02 | 2.62 | ||||||||||||||||||||||
Total net charge-off/(recovery) rate, excluding PCI loans | 0.61 | 0.57 | 0.70 | 1.00 | 1.56 | ||||||||||||||||||||||
Net charge-off/(recovery) rate - reported (a) | |||||||||||||||||||||||||||
Home equity | 0.89 | % | 0.91 | % | 1.07 | % | 1.13 | % | 1.55 | % | |||||||||||||||||
Prime mortgage, including option ARMs | (0.04 | ) | (0.04 | ) | (0.06 | ) | 0.08 | 0.24 | |||||||||||||||||||
Subprime mortgage | 0.47 | (0.21 | ) | (0.13 | ) | 1.07 | 2.13 | ||||||||||||||||||||
Other | 1.50 | 1.42 | 0.69 | 2.02 | 2.62 | ||||||||||||||||||||||
Total net charge-off/(recovery) rate - reported | 0.42 | 0.39 | 0.47 | 0.67 | 1.03 | ||||||||||||||||||||||
30+ day delinquency rate, excluding PCI loans (b) | 3.33 | % | 3.66 | % | 3.81 | % | 4.17 | % | 4.61 | % | |||||||||||||||||
Allowance for loan losses, excluding PCI loans | $ | 2,368 | $ | 2,568 | $ | 2,768 | $ | 3,268 | $ | 4,218 | (8 | ) | (44 | ) | |||||||||||||
Allowance for PCI loans (a) | 4,097 | 4,158 | 4,961 | 5,711 | 5,711 | (1 | ) | (28 | ) | ||||||||||||||||||
Allowance for loan losses | $ | 6,465 | $ | 6,726 | $ | 7,729 | $ | 8,979 | $ | 9,929 | (4 | ) | (35 | ) | |||||||||||||
Nonperforming assets (c) | 6,796 | 6,919 | 7,385 | 7,801 | 8,349 | (2 | ) | (19 | ) | ||||||||||||||||||
Allowance for loan losses to period-end loans retained | 3.88 | % | 4.00 | % | 4.53 | % | 5.24 | % | 5.71 | % | |||||||||||||||||
Allowance for loan losses to period-end loans retained, | |||||||||||||||||||||||||||
excluding PCI loans | 2.06 | 2.23 | 2.39 | 2.85 | 3.66 | ||||||||||||||||||||||
(a) | Net charge-offs and the net charge-off rates for the three months ended March 31, 2014 and December 31, 2013 excluded $61 million and $53 million, respectively, of write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans. |
(b) | The 30+ day delinquency rate for PCI loans was 14.34%, 15.31%, 16.19%, 17.92% and 19.26% at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. |
(c) | Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing. |
Page 16
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CONSUMER & COMMUNITY BANKING | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||
(in millions, except ratio data and where otherwise noted) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
CARD, MERCHANT SERVICES & AUTO | |||||||||||||||||||||||||||
Card income | $ | 972 | $ | 1,134 | $ | 1,075 | $ | 1,067 | $ | 1,013 | (14 | ) | % | (4 | ) | % | |||||||||||
All other income | 279 | 272 | 263 | 261 | 245 | 3 | 14 | ||||||||||||||||||||
Noninterest revenue | 1,251 | 1,406 | 1,338 | 1,328 | 1,258 | (11 | ) | (1 | ) | ||||||||||||||||||
Net interest income | 3,260 | 3,262 | 3,294 | 3,342 | 3,462 | - | (6 | ) | |||||||||||||||||||
Total net revenue | 4,511 | 4,668 | 4,632 | 4,670 | 4,720 | (3 | ) | (4 | ) | ||||||||||||||||||
Provision for credit losses | 763 | 746 | 673 | 564 | 686 | 2 | 11 | ||||||||||||||||||||
Noninterest expense | 1,969 | 2,230 | 1,917 | 1,988 | 1,943 | (12 | ) | 1 | |||||||||||||||||||
Income before income tax expense | 1,779 | 1,692 | 2,042 | 2,118 | 2,091 | 5 | (15 | ) | |||||||||||||||||||
Net income | $ | 1,082 | $ | 1,030 | $ | 1,235 | $ | 1,249 | $ | 1,272 | 5 | (15 | ) | ||||||||||||||
ROE | 23 | % | 26 | % | 32 | % | 32 | % | 33 | % | |||||||||||||||||
Overhead ratio | 44 | 48 | 41 | 43 | 41 | ||||||||||||||||||||||
Equity (period-end and average) | $ | 19,000 | $ | 15,500 | $ | 15,500 | $ | 15,500 | $ | 15,500 | 23 | 23 | |||||||||||||||
SELECTED BALANCE SHEET DATA (period-end) | |||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||
Credit Card | $ | 121,816 | $ | 127,791 | $ | 123,982 | $ | 124,288 | $ | 121,865 | (5 | ) | - | ||||||||||||||
Auto | 52,952 | 52,757 | 50,810 | 50,865 | 50,552 | - | 5 | ||||||||||||||||||||
Student | 10,316 | 10,541 | 10,777 | 11,040 | 11,323 | (2 | ) | (9 | ) | ||||||||||||||||||
Total loans | $ | 185,084 | $ | 191,089 | $ | 185,569 | $ | 186,193 | $ | 183,740 | (3 | ) | 1 | ||||||||||||||
SELECTED BALANCE SHEET DATA (average) | |||||||||||||||||||||||||||
Total assets | $ | 201,771 | $ | 200,753 | $ | 198,702 | $ | 196,921 | $ | 196,634 | 1 | 3 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||
Credit Card | 123,261 | 124,111 | 123,912 | 122,855 | 123,564 | (1 | ) | - | |||||||||||||||||||
Auto | 52,741 | 51,824 | 50,432 | 50,677 | 50,045 | 2 | 5 | ||||||||||||||||||||
Student | 10,449 | 10,668 | 10,907 | 11,172 | 11,459 | (2 | ) | (9 | ) | ||||||||||||||||||
Total loans | $ | 186,451 | $ | 186,603 | $ | 185,251 | $ | 184,704 | $ | 185,068 | - | 1 | |||||||||||||||
BUSINESS METRICS | |||||||||||||||||||||||||||
Credit Card, excluding Commercial Card | |||||||||||||||||||||||||||
Sales volume (in billions) | $ | 104.5 | $ | 112.6 | $ | 107.0 | $ | 105.2 | $ | 94.7 | (7 | ) | 10 | ||||||||||||||
New accounts opened | 2.1 | 2.4 | 1.7 | 1.5 | 1.7 | (13 | ) | 24 | |||||||||||||||||||
Open accounts | 65.5 | 65.3 | 65.0 | 64.8 | 64.7 | - | 1 | ||||||||||||||||||||
Accounts with sales activity | 31.0 | 32.3 | 30.0 | 30.0 | 29.4 | (4 | ) | 5 | |||||||||||||||||||
% of accounts acquired online | 51 | % | 59 | % | 53 | % | 53 | % | 52 | % | |||||||||||||||||
Merchant Services (Chase Paymentech Solutions) | |||||||||||||||||||||||||||
Merchant processing volume (in billions) | $ | 195.4 | $ | 203.4 | $ | 185.9 | $ | 185.0 | $ | 175.8 | (4 | ) | 11 | ||||||||||||||
Total transactions (in billions) | 9.1 | 9.6 | 8.9 | 8.8 | 8.3 | (5 | ) | 10 | |||||||||||||||||||
Auto | |||||||||||||||||||||||||||
Origination volume (in billions) | $ | 6.7 | $ | 6.4 | $ | 6.4 | $ | 6.8 | $ | 6.5 | 5 | 3 | |||||||||||||||
Page 17
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CONSUMER & COMMUNITY BANKING | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||
(in millions, except ratio data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
CARD, MERCHANT SERVICES & AUTO (continued) | |||||||||||||||||||||||||||
CREDIT DATA AND QUALITY STATISTICS | |||||||||||||||||||||||||||
Net charge-offs: | |||||||||||||||||||||||||||
Credit Card | $ | 888 | $ | 891 | $ | 892 | $ | 1,014 | $ | 1,082 | - | % | (18 | ) | % | ||||||||||||
Auto | 41 | 51 | 44 | 23 | 40 | (20 | ) | 3 | |||||||||||||||||||
Student | 84 | 104 | 88 | 77 | 64 | (19 | ) | 31 | |||||||||||||||||||
Total net charge-offs | 1,013 | 1,046 | 1,024 | 1,114 | 1,186 | (3 | ) | (15 | ) | ||||||||||||||||||
Net charge-off rate: | |||||||||||||||||||||||||||
Credit Card (a) | 2.93 | % | 2.86 | % | 2.86 | % | 3.31 | % | 3.55 | % | |||||||||||||||||
Auto | 0.32 | 0.39 | 0.35 | 0.18 | 0.32 | ||||||||||||||||||||||
Student | 3.26 | 3.87 | 3.20 | 2.76 | 2.27 | ||||||||||||||||||||||
Total net charge-off rate | 2.21 | 2.23 | 2.19 | 2.42 | 2.60 | ||||||||||||||||||||||
Delinquency rates | |||||||||||||||||||||||||||
30+ day delinquency rate: | |||||||||||||||||||||||||||
Credit Card (b) | 1.61 | 1.67 | 1.69 | 1.69 | 1.94 | ||||||||||||||||||||||
Auto | 0.92 | 1.15 | 0.93 | 0.95 | 0.92 | ||||||||||||||||||||||
Student (c) | 2.75 | 2.56 | 2.60 | 2.23 | 2.06 | ||||||||||||||||||||||
Total 30+ day delinquency rate | 1.47 | 1.58 | 1.53 | 1.52 | 1.67 | ||||||||||||||||||||||
90+ day delinquency rate - Credit Card (b) | 0.80 | 0.80 | 0.79 | 0.82 | 0.97 | ||||||||||||||||||||||
Nonperforming assets (d) | $ | 271 | $ | 280 | $ | 239 | $ | 243 | $ | 251 | (3 | ) | 8 | ||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||
Credit Card | 3,591 | 3,795 | 4,097 | 4,445 | 4,998 | (5 | ) | (28 | ) | ||||||||||||||||||
Auto & Student | 903 | 953 | 953 | 954 | 954 | (5 | ) | (5 | ) | ||||||||||||||||||
Total allowance for loan losses | 4,494 | 4,748 | 5,050 | 5,399 | 5,952 | (5 | ) | (24 | ) | ||||||||||||||||||
Allowance for loan losses to period-end loans: | |||||||||||||||||||||||||||
Credit Card (b) | 2.96 | % | 2.98 | % | 3.31 | % | 3.58 | % | 4.10 | % | |||||||||||||||||
Auto & Student | 1.43 | 1.51 | 1.55 | 1.54 | 1.54 | ||||||||||||||||||||||
Total allowance for loan losses to period-end loans | 2.43 | 2.49 | 2.73 | 2.90 | 3.24 | ||||||||||||||||||||||
CARD SERVICES SUPPLEMENTAL INFORMATION | |||||||||||||||||||||||||||
Noninterest revenue | $ | 884 | $ | 1,051 | $ | 994 | $ | 994 | $ | 938 | (16 | ) | (6 | ) | |||||||||||||
Net interest income | 2,829 | 2,809 | 2,824 | 2,863 | 2,970 | 1 | (5 | ) | |||||||||||||||||||
Total net revenue | 3,713 | 3,860 | 3,818 | 3,857 | 3,908 | (4 | ) | (5 | ) | ||||||||||||||||||
Provision for credit losses | 688 | 591 | 542 | 464 | 582 | 16 | 18 | ||||||||||||||||||||
Noninterest expense | 1,465 | 1,749 | 1,458 | 1,537 | 1,501 | (16 | ) | (2 | ) | ||||||||||||||||||
Income before income tax expense | 1,560 | 1,520 | 1,818 | 1,856 | 1,825 | 3 | (15 | ) | |||||||||||||||||||
Net income | $ | 952 | $ | 927 | $ | 1,102 | $ | 1,093 | $ | 1,113 | 3 | (14 | ) | ||||||||||||||
Percentage of average loans: | |||||||||||||||||||||||||||
Noninterest revenue | 2.91 | % | 3.36 | % | 3.18 | % | 3.25 | % | 3.08 | % | |||||||||||||||||
Net interest income | 9.31 | 8.98 | 9.04 | 9.35 | 9.75 | ||||||||||||||||||||||
Total net revenue | 12.22 | 12.34 | 12.22 | 12.59 | 12.83 | ||||||||||||||||||||||
(a) | Average credit card loans included loans held-for-sale of $315 million, $311 million and $67 million for the three months ended March 31, 2014, December 31, 2013 and September 30, 2013, respectively. These amounts are excluded when calculating the net charge-off rate. There were no loans held-for-sale for the three months ended June 30, 2013 and March 31, 2013. |
(b) | Period-end credit card loans included loans held-for-sale of $304 million, $326 million and $310 million at March 31, 2014, December 31, 2013 and September 30, 2013, respectively. These amounts are excluded when calculating delinquency rates and the allowance for loan losses to period-end loans. There were no loans held-for-sale at June 30, 2013 and March 31, 2013. |
(c) | Excluded student loans insured by U.S. government agencies under the FFELP of $687 million, $737 million, $769 million, $812 million and $881 million at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively, that are 30 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally. |
(d) | Nonperforming assets excluded student loans insured by U.S. government agencies under the FFELP of $387 million, $428 million, $456 million, $488 million and $523 million at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively, that are 90 or more days past due. These amounts are excluded as reimbursement of insured amounts is proceeding normally. |
Page 18
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CORPORATE & INVESTMENT BANK | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||
(in millions, except ratio data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
INCOME STATEMENT | |||||||||||||||||||||||||||
REVENUE | |||||||||||||||||||||||||||
Investment banking fees | $ | 1,444 | $ | 1,671 | $ | 1,510 | $ | 1,717 | $ | 1,433 | (14 | ) | % | 1 | % | ||||||||||||
Principal transactions (a) | 2,886 | (162 | ) | 2,202 | 3,288 | 3,961 | NM | (27 | ) | ||||||||||||||||||
Lending- and deposit-related fees | 444 | 454 | 471 | 486 | 473 | (2 | ) | (6 | ) | ||||||||||||||||||
Asset management, administration and commissions | 1,179 | 1,129 | 1,128 | 1,289 | 1,167 | 4 | 1 | ||||||||||||||||||||
All other income | 283 | 487 | 392 | 391 | 323 | (42 | ) | (12 | ) | ||||||||||||||||||
Noninterest revenue | 6,236 | 3,579 | 5,703 | 7,171 | 7,357 | 74 | (15 | ) | |||||||||||||||||||
Net interest income | 2,370 | 2,441 | 2,486 | 2,705 | 2,783 | (3 | ) | (15 | ) | ||||||||||||||||||
TOTAL NET REVENUE (b) | 8,606 | 6,020 | 8,189 | 9,876 | 10,140 | 43 | (15 | ) | |||||||||||||||||||
Provision for credit losses | 49 | (19 | ) | (218 | ) | (6 | ) | 11 | NM | 345 | |||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||
Compensation expense | 2,870 | 2,141 | 2,330 | 2,988 | 3,376 | 34 | (15 | ) | |||||||||||||||||||
Noncompensation expense | 2,734 | 2,751 | 2,669 | 2,754 | 2,735 | (1 | ) | - | |||||||||||||||||||
TOTAL NONINTEREST EXPENSE | 5,604 | 4,892 | 4,999 | 5,742 | 6,111 | 15 | (8 | ) | |||||||||||||||||||
Income before income tax expense | 2,953 | 1,147 | 3,408 | 4,140 | 4,018 | 157 | (27 | ) | |||||||||||||||||||
Income tax expense | 974 | 289 | 1,168 | 1,302 | 1,408 | 237 | (31 | ) | |||||||||||||||||||
NET INCOME | $ | 1,979 | $ | 858 | $ | 2,240 | $ | 2,838 | $ | 2,610 | 131 | (24 | ) | ||||||||||||||
FINANCIAL RATIOS | |||||||||||||||||||||||||||
ROE (c) | 13 | % | 6 | % | 16 | % | 20 | % | 19 | % | |||||||||||||||||
Overhead ratio (d) | 65 | 81 | 61 | 58 | 60 | ||||||||||||||||||||||
Compensation expense as a percent of total net revenue (e) | 33 | 36 | 28 | 30 | 33 | ||||||||||||||||||||||
REVENUE BY BUSINESS | |||||||||||||||||||||||||||
Advisory | $ | 383 | $ | 434 | $ | 322 | $ | 304 | $ | 255 | (12 | ) | 50 | ||||||||||||||
Equity underwriting | 353 | 436 | 333 | 457 | 273 | (19 | ) | 29 | |||||||||||||||||||
Debt underwriting | 708 | 801 | 855 | 956 | 905 | (12 | ) | (22 | ) | ||||||||||||||||||
Total investment banking fees | 1,444 | 1,671 | 1,510 | 1,717 | 1,433 | (14 | ) | 1 | |||||||||||||||||||
Treasury Services | 1,009 | 987 | 1,053 | 1,051 | 1,044 | 2 | (3 | ) | |||||||||||||||||||
Lending | 284 | 373 | 351 | 373 | 498 | (24 | ) | (43 | ) | ||||||||||||||||||
Total Banking | 2,737 | 3,031 | 2,914 | 3,141 | 2,975 | (10 | ) | (8 | ) | ||||||||||||||||||
Fixed Income Markets | 3,760 | 3,199 | 3,439 | 4,078 | 4,752 | 18 | (21 | ) | |||||||||||||||||||
Equity Markets | 1,295 | 873 | 1,249 | 1,296 | 1,340 | 48 | (3 | ) | |||||||||||||||||||
Securities Services | 1,011 | 1,025 | 996 | 1,087 | 974 | (1 | ) | 4 | |||||||||||||||||||
Credit Adjustments & Other (a)(f) | (197 | ) | (2,108 | ) | (409 | ) | 274 | 99 | 91 | NM | |||||||||||||||||
Total Markets & Investor Services | 5,869 | 2,989 | 5,275 | 6,735 | 7,165 | 96 | (18 | ) | |||||||||||||||||||
TOTAL NET REVENUE | $ | 8,606 | $ | 6,020 | $ | 8,189 | $ | 9,876 | $ | 10,140 | 43 | (15 | ) | ||||||||||||||
(a) | Included FVA (effective fourth quarter 2013) and debit valuation adjustments ("DVA") on OTC derivatives and structured notes, measured at fair value. FVA and DVA gains/(losses) were $(53) million and $(2.0) billion for the three months ended March 31, 2014 and December 31, 2013, respectively. DVA gains/(losses) were $(397) million, $355 million and $126 million for the three months ended September 30, 2013, June 30, 2013 and March 31, 2013, respectively. Results are presented net of associated hedging activities. |
(b) | Included tax-equivalent adjustments, predominantly due to income tax credits related to affordable housing and alternative energy investments, as well as tax-exempt income from municipal bond investments of $600 million, $681 million, $537 million, $550 million and $529 million for the three months ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. |
(c) | Return on equity excluding FVA (effective fourth quarter 2013) and DVA, a non-GAAP financial measure, was 15%, 17%, 19% and 18% for the three months ended December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. For additional information on this measure, see non-GAAP financial measures on page 35. |
(d) | Overhead ratio excluding FVA (effective fourth quarter 2013) and DVA, a non-GAAP financial measure, was 61%, 58%, 60% and 61% for the three months ended December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. For additional information on this measure, see non-GAAP financial measures on page 35. |
(e) | Compensation expense as a percentage of total net revenue excluding FVA (effective fourth quarter 2013) and DVA, a non-GAAP financial measure, was 27%, 27%, 31% and 34% for the three months ended December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. For additional information on this measure, see non-GAAP financial measures on page 35. |
(f) | Primarily credit portfolio credit valuation adjustments (“CVA”), FVA and DVA on OTC derivatives and structured notes, and nonperforming derivative receivable results. Results are presented net of associated hedging activities. |
Page 19
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CORPORATE & INVESTMENT BANK | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||
(in millions, except ratio and headcount data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
SELECTED BALANCE SHEET DATA (period-end) | |||||||||||||||||||||||||||
Assets | $ | 879,992 | $ | 843,577 | $ | 867,474 | $ | 873,527 | $ | 872,259 | 4 | % | 1 | % | |||||||||||||
Loans: | |||||||||||||||||||||||||||
Loans retained (a) | 96,245 | 95,627 | 104,269 | 106,248 | 112,005 | 1 | (14 | ) | |||||||||||||||||||
Loans held-for-sale and loans at fair value | 8,421 | 11,913 | 3,687 | 4,564 | 5,506 | (29 | ) | 53 | |||||||||||||||||||
Total loans | 104,666 | 107,540 | 107,956 | 110,812 | 117,511 | (3 | ) | (11 | ) | ||||||||||||||||||
Equity | 61,000 | 56,500 | 56,500 | 56,500 | 56,500 | 8 | 8 | ||||||||||||||||||||
SELECTED BALANCE SHEET DATA (average) | |||||||||||||||||||||||||||
Assets | $ | 851,469 | $ | 849,320 | $ | 838,158 | $ | 878,801 | $ | 870,467 | - | (2 | ) | ||||||||||||||
Trading assets - debt and equity instruments | 306,140 | 308,374 | 300,135 | 336,118 | 342,323 | (1 | ) | (11 | ) | ||||||||||||||||||
Trading assets - derivative receivables | 64,087 | 67,487 | 70,814 | 72,036 | 71,111 | (5 | ) | (10 | ) | ||||||||||||||||||
Loans: | |||||||||||||||||||||||||||
Loans retained (a) | 95,798 | 101,901 | 103,179 | 107,654 | 106,793 | (6 | ) | (10 | ) | ||||||||||||||||||
Loans held-for-sale and loans at fair value | 8,086 | 4,326 | 5,113 | 5,950 | 5,254 | 87 | 54 | ||||||||||||||||||||
Total loans | 103,884 | 106,227 | 108,292 | 113,604 | 112,047 | (2 | ) | (7 | ) | ||||||||||||||||||
Equity | 61,000 | 56,500 | 56,500 | 56,500 | 56,500 | 8 | 8 | ||||||||||||||||||||
Headcount | 51,837 | 52,250 | 52,445 | 51,771 | 51,634 | (1 | ) | - | |||||||||||||||||||
CREDIT DATA AND QUALITY STATISTICS | |||||||||||||||||||||||||||
Net charge-offs/(recoveries) | $ | (1 | ) | $ | (11 | ) | $ | (4 | ) | $ | (82 | ) | $ | 19 | 91 | NM | |||||||||||
Nonperforming assets: | |||||||||||||||||||||||||||
Nonaccrual loans: | |||||||||||||||||||||||||||
Nonaccrual loans retained (a)(b) | 75 | 163 | 176 | 227 | 340 | (54 | ) | (78 | ) | ||||||||||||||||||
Nonaccrual loans held-for-sale and loans at fair value | 176 | 180 | 210 | 293 | 259 | (2 | ) | (32 | ) | ||||||||||||||||||
Total nonaccrual loans | 251 | 343 | 386 | 520 | 599 | (27 | ) | (58 | ) | ||||||||||||||||||
Derivative receivables | 392 | 415 | 431 | 448 | 412 | (6 | ) | (5 | ) | ||||||||||||||||||
Assets acquired in loan satisfactions | 110 | 80 | 38 | 46 | 55 | 38 | 100 | ||||||||||||||||||||
Total nonperforming assets | 753 | 838 | 855 | 1,014 | 1,066 | (10 | ) | (29 | ) | ||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||
Allowance for loan losses | 1,187 | 1,096 | 1,138 | 1,287 | 1,246 | 8 | (5 | ) | |||||||||||||||||||
Allowance for lending-related commitments | 484 | 525 | 490 | 556 | 521 | (8 | ) | (7 | ) | ||||||||||||||||||
Total allowance for credit losses | 1,671 | 1,621 | 1,628 | 1,843 | 1,767 | 3 | (5 | ) | |||||||||||||||||||
Net charge-off/(recovery) rate (a) | — | % | (0.04 | ) | % | (0.02 | ) | % | (0.31 | ) | % | 0.07 | % | ||||||||||||||
Allowance for loan losses to period-end loans retained (a) | 1.23 | 1.15 | 1.09 | 1.21 | 1.11 | ||||||||||||||||||||||
Allowance for loan losses to period-end loans retained, | |||||||||||||||||||||||||||
excluding trade finance and conduits (c) | 2.18 | 2.02 | 2.01 | 2.35 | 2.17 | ||||||||||||||||||||||
Allowance for loan losses to nonaccrual loans retained (a)(b) | 1,583 | 672 | 647 | 567 | 366 | ||||||||||||||||||||||
Nonaccrual loans to total period-end loans | 0.24 | 0.32 | 0.36 | 0.47 | 0.51 | ||||||||||||||||||||||
(a) | Loans retained includes credit portfolio loans, trade finance loans, other held-for-investment loans and overdrafts. |
(b) | Allowance for loan losses of $13 million, $51 million, $56 million, $70 million and $73 million were held against these nonaccrual loans at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. |
(c) | 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. |
Page 20
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CORPORATE & INVESTMENT BANK | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||
(in millions, except rankings data and where otherwise noted) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
BUSINESS METRICS | |||||||||||||||||||||||||||
Assets under custody ("AUC") (period-end) (in billions) | $ | 21,135 | $ | 20,485 | $ | 19,736 | $ | 18,929 | $ | 19,294 | 3 | 10 | |||||||||||||||
Client deposits and other third-party liabilities (average) | 412,551 | 421,615 | 385,952 | 369,108 | 357,262 | (2 | ) | 15 | |||||||||||||||||||
Trade finance loans (period-end) | 32,491 | 30,752 | 34,356 | 36,375 | 38,985 | 6 | (17 | ) | |||||||||||||||||||
95% Confidence Level - Total CIB VaR (average) | |||||||||||||||||||||||||||
CIB trading VaR by risk type: (a) | |||||||||||||||||||||||||||
Fixed income | $ | 36 | $ | 39 | $ | 43 | $ | 35 | $ | 55 | (8 | ) | % | (35 | ) | % | |||||||||||
Foreign exchange | 7 | 7 | 7 | 7 | 7 | - | - | ||||||||||||||||||||
Equities | 14 | 13 | 13 | 14 | 13 | 8 | 8 | ||||||||||||||||||||
Commodities and other | 11 | 15 | 13 | 13 | 15 | (27 | ) | (27 | ) | ||||||||||||||||||
Diversification benefit to CIB trading VaR (b) | (32 | ) | (36 | ) | (34 | ) | (33 | ) | (34 | ) | 11 | 6 | |||||||||||||||
CIB trading VaR (a) | 36 | 38 | 42 | 36 | 56 | (5 | ) | (36 | ) | ||||||||||||||||||
Credit portfolio VaR (c) | 13 | 11 | 12 | 13 | 15 | 18 | (13 | ) | |||||||||||||||||||
Diversification benefit to CIB VaR (b) | (7 | ) | (7 | ) | (9 | ) | (9 | ) | (9 | ) | - | 22 | |||||||||||||||
CIB VaR (a) | 42 | 42 | 45 | 40 | 62 | - | (32 | ) | |||||||||||||||||||
(a) | CIB trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in CIB, including credit spread sensitivity to CVA. CIB trading VaR does not include DVA on structured notes and derivative liabilities. For further information, see VaR measurement on pages 144-146 of the 2013 Annual Report. |
(b) | Average portfolio VaR was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated. |
(c) | Credit portfolio VaR includes the derivative CVA, hedges of the CVA and hedges of the retained loan portfolio, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value. |
Page 21
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
COMMERCIAL BANKING | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||
(in millions, except ratio data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
INCOME STATEMENT | |||||||||||||||||||||||||||
REVENUE | |||||||||||||||||||||||||||
Lending- and deposit-related fees | $ | 246 | $ | 253 | $ | 256 | $ | 265 | $ | 259 | (3 | ) | % | (5 | ) | % | |||||||||||
Asset management, administration and commissions | 23 | 26 | 28 | 30 | 32 | (12 | ) | (28 | ) | ||||||||||||||||||
All other income (a) | 289 | 345 | 304 | 256 | 244 | (16 | ) | 18 | |||||||||||||||||||
Noninterest revenue | 558 | 624 | 588 | 551 | 535 | (11 | ) | 4 | |||||||||||||||||||
Net interest income (b) | 1,093 | 1,223 | 1,137 | 1,177 | 1,138 | (11 | ) | (4 | ) | ||||||||||||||||||
TOTAL NET REVENUE (c) | 1,651 | 1,847 | 1,725 | 1,728 | 1,673 | (11 | ) | (1 | ) | ||||||||||||||||||
Provision for credit losses | 5 | 43 | (41 | ) | 44 | 39 | (88 | ) | (87 | ) | |||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||
Compensation expense | 307 | 252 | 288 | 286 | 289 | 22 | 6 | ||||||||||||||||||||
Noncompensation expense | 374 | 396 | 367 | 361 | 348 | (6 | ) | 7 | |||||||||||||||||||
Amortization of intangibles | 5 | 5 | 6 | 5 | 7 | - | (29 | ) | |||||||||||||||||||
TOTAL NONINTEREST EXPENSE | 686 | 653 | 661 | 652 | 644 | 5 | 7 | ||||||||||||||||||||
Income before income tax expense | 960 | 1,151 | 1,105 | 1,032 | 990 | (17 | ) | (3 | ) | ||||||||||||||||||
Income tax expense | 382 | 458 | 440 | 411 | 394 | (17 | ) | (3 | ) | ||||||||||||||||||
NET INCOME | $ | 578 | $ | 693 | $ | 665 | $ | 621 | $ | 596 | (17 | ) | (3 | ) | |||||||||||||
Revenue by product: | |||||||||||||||||||||||||||
Lending (b) | $ | 863 | $ | 1,009 | $ | 922 | $ | 971 | $ | 924 | (14 | ) | (7 | ) | |||||||||||||
Treasury services | 610 | 612 | 605 | 607 | 605 | - | 1 | ||||||||||||||||||||
Investment banking | 146 | 170 | 155 | 132 | 118 | (14 | ) | 24 | |||||||||||||||||||
Other | 32 | 56 | 43 | 18 | 26 | (43 | ) | 23 | |||||||||||||||||||
Total Commercial Banking revenue | $ | 1,651 | $ | 1,847 | $ | 1,725 | $ | 1,728 | $ | 1,673 | (11 | ) | (1 | ) | |||||||||||||
Investment banking revenue, gross (d) | $ | 447 | $ | 502 | $ | 448 | $ | 385 | $ | 341 | (11 | ) | 31 | ||||||||||||||
Revenue by client segment: | |||||||||||||||||||||||||||
Middle Market Banking | $ | 698 | $ | 744 | $ | 745 | $ | 777 | $ | 753 | (6 | ) | (7 | ) | |||||||||||||
Corporate Client Banking | 446 | 488 | 459 | 444 | 433 | (9 | ) | 3 | |||||||||||||||||||
Commercial Term Lending | 308 | 298 | 311 | 315 | 291 | 3 | 6 | ||||||||||||||||||||
Real Estate Banking (b) | 116 | 206 | 118 | 113 | 112 | (44 | ) | 4 | |||||||||||||||||||
Other | 83 | 111 | 92 | 79 | 84 | (25 | ) | (1 | ) | ||||||||||||||||||
Total Commercial Banking revenue | $ | 1,651 | $ | 1,847 | $ | 1,725 | $ | 1,728 | $ | 1,673 | (11 | ) | (1 | ) | |||||||||||||
FINANCIAL RATIOS | |||||||||||||||||||||||||||
ROE | 17 | % | 20 | % | 20 | % | 18 | % | 18 | % | |||||||||||||||||
Overhead ratio | 42 | 35 | 38 | 38 | 38 | ||||||||||||||||||||||
(a) | Includes revenue from investment banking products and commercial card transactions. |
(b) | The fourth quarter of 2013 included proceeds of $98 million from a lending-related workout. |
(c) | Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities, as well as tax-exempt income from municipal bond activity of $104 million, $129 million, $95 million, $90 million and $93 million for the three months ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. |
(d) | Represents the total revenue from investment banking products sold to CB clients. |
Page 22
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
COMMERCIAL BANKING | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||
(in millions, except headcount and ratio data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
SELECTED BALANCE SHEET DATA (period-end) | |||||||||||||||||||||||||||
Total assets | $ | 191,389 | $ | 190,782 | $ | 192,194 | $ | 184,124 | $ | 184,689 | - | % | 4 | % | |||||||||||||
Loans: | |||||||||||||||||||||||||||
Loans retained | 138,088 | 135,750 | 133,090 | 130,487 | 129,534 | 2 | 7 | ||||||||||||||||||||
Loans held-for-sale and loans at fair value | 848 | 1,388 | 2,071 | 430 | 851 | (39 | ) | - | |||||||||||||||||||
Total loans | $ | 138,936 | $ | 137,138 | $ | 135,161 | $ | 130,917 | $ | 130,385 | 1 | 7 | |||||||||||||||
Equity | 14,000 | 13,500 | 13,500 | 13,500 | 13,500 | 4 | 4 | ||||||||||||||||||||
Period-end loans by client segment: | |||||||||||||||||||||||||||
Middle Market Banking | $ | 52,496 | $ | 52,289 | $ | 52,214 | $ | 52,053 | $ | 52,296 | - | - | |||||||||||||||
Corporate Client Banking | 20,479 | 20,925 | 21,425 | 19,933 | 20,962 | (2 | ) | (2 | ) | ||||||||||||||||||
Commercial Term Lending | 49,973 | 48,925 | 47,612 | 45,865 | 44,374 | 2 | 13 | ||||||||||||||||||||
Real Estate Banking | 11,615 | 11,024 | 10,057 | 9,395 | 9,003 | 5 | 29 | ||||||||||||||||||||
Other | 4,373 | 3,975 | 3,853 | 3,671 | 3,750 | 10 | 17 | ||||||||||||||||||||
Total Commercial Banking loans | $ | 138,936 | $ | 137,138 | $ | 135,161 | $ | 130,917 | $ | 130,385 | 1 | 7 | |||||||||||||||
SELECTED BALANCE SHEET DATA (average) | |||||||||||||||||||||||||||
Total assets | $ | 192,748 | $ | 189,710 | $ | 185,744 | $ | 184,951 | $ | 182,620 | 2 | 6 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||
Loans retained | 136,651 | 134,490 | 131,019 | 130,338 | 128,490 | 2 | 6 | ||||||||||||||||||||
Loans held-for-sale and loans at fair value | 1,039 | 1,070 | 599 | 1,251 | 800 | (3 | ) | 30 | |||||||||||||||||||
Total loans | $ | 137,690 | $ | 135,560 | $ | 131,618 | $ | 131,589 | $ | 129,290 | 2 | 6 | |||||||||||||||
Client deposits and other third-party liabilities | 202,944 | 205,335 | 196,802 | 195,232 | 195,968 | (1 | ) | 4 | |||||||||||||||||||
Equity | 14,000 | 13,500 | 13,500 | 13,500 | 13,500 | 4 | 4 | ||||||||||||||||||||
Average loans by client segment: | |||||||||||||||||||||||||||
Middle Market Banking | $ | 51,742 | $ | 51,730 | $ | 51,379 | $ | 52,205 | $ | 52,013 | - | (1 | ) | ||||||||||||||
Corporate Client Banking | 20,837 | 21,012 | 20,261 | 21,344 | 21,061 | (1 | ) | (1 | ) | ||||||||||||||||||
Commercial Term Lending | 49,395 | 48,313 | 46,656 | 45,087 | 43,845 | 2 | 13 | ||||||||||||||||||||
Real Estate Banking | 11,408 | 10,675 | 9,675 | 9,277 | 8,677 | 7 | 31 | ||||||||||||||||||||
Other | 4,308 | 3,830 | 3,647 | 3,676 | 3,694 | 12 | 17 | ||||||||||||||||||||
Total Commercial Banking loans | $ | 137,690 | $ | 135,560 | $ | 131,618 | $ | 131,589 | $ | 129,290 | 2 | 6 | |||||||||||||||
Headcount | 6,976 | 6,848 | 6,761 | 6,660 | 6,511 | 2 | 7 | ||||||||||||||||||||
CREDIT DATA AND QUALITY STATISTICS | |||||||||||||||||||||||||||
Net charge-offs/(recoveries) | $ | (14 | ) | $ | 25 | $ | 16 | $ | 9 | $ | (7 | ) | NM | (100 | ) | ||||||||||||
Nonperforming assets: | |||||||||||||||||||||||||||
Nonaccrual loans: | |||||||||||||||||||||||||||
Nonaccrual loans retained (a) | 468 | 471 | 558 | 505 | 643 | (1 | ) | (27 | ) | ||||||||||||||||||
Nonaccrual loans held-for-sale and loans | |||||||||||||||||||||||||||
at fair value | 17 | 43 | 8 | 8 | 26 | (60 | ) | (35 | ) | ||||||||||||||||||
Total nonaccrual loans | 485 | 514 | 566 | 513 | 669 | (6 | ) | (28 | ) | ||||||||||||||||||
Assets acquired in loan satisfactions | 20 | 15 | 19 | 30 | 12 | 33 | 67 | ||||||||||||||||||||
Total nonperforming assets | 505 | 529 | 585 | 543 | 681 | (5 | ) | (26 | ) | ||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||
Allowance for loan losses | 2,690 | 2,669 | 2,647 | 2,691 | 2,656 | 1 | 1 | ||||||||||||||||||||
Allowance for lending-related commitments | 141 | 142 | 171 | 183 | 183 | (1 | ) | (23 | ) | ||||||||||||||||||
Total allowance for credit losses | 2,831 | 2,811 | 2,818 | 2,874 | 2,839 | 1 | - | ||||||||||||||||||||
Net charge-off/(recovery) rate (b) | (0.04 | ) | % | 0.07 | % | 0.05 | % | 0.03 | % | (0.02 | ) | % | |||||||||||||||
Allowance for loan losses to period-end loans retained | 1.95 | 1.97 | 1.99 | 2.06 | 2.05 | ||||||||||||||||||||||
Allowance for loan losses to nonaccrual loans retained (a) | 575 | 567 | 474 | 533 | 413 | ||||||||||||||||||||||
Nonaccrual loans to total period-end loans | 0.35 | 0.37 | 0.42 | 0.39 | 0.51 | ||||||||||||||||||||||
(a) | Allowance for loan losses of $86 million, $81 million, $102 million, $79 million and $99 million was held against nonaccrual loans retained at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. |
(b) | Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate. |
Page 23
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
ASSET MANAGEMENT | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||
(in millions, except ratio and headcount data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
INCOME STATEMENT | |||||||||||||||||||||||||||
REVENUE | |||||||||||||||||||||||||||
Asset management, administration and commissions | $ | 2,100 | $ | 2,314 | $ | 2,017 | $ | 2,018 | $ | 1,883 | (9 | ) | % | 12 | % | ||||||||||||
All other income | 118 | 280 | 168 | 138 | 211 | (58 | ) | (44 | ) | ||||||||||||||||||
Noninterest revenue | 2,218 | 2,594 | 2,185 | 2,156 | 2,094 | (14 | ) | 6 | |||||||||||||||||||
Net interest income | 560 | 585 | 578 | 569 | 559 | (4 | ) | - | |||||||||||||||||||
TOTAL NET REVENUE | 2,778 | 3,179 | 2,763 | 2,725 | 2,653 | (13 | ) | 5 | |||||||||||||||||||
Provision for credit losses | (9 | ) | 21 | — | 23 | 21 | NM | NM | |||||||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||
Compensation expense | 1,256 | 1,343 | 1,207 | 1,155 | 1,170 | (6 | ) | 7 | |||||||||||||||||||
Noncompensation expense | 799 | 828 | 774 | 716 | 684 | (4 | ) | 17 | |||||||||||||||||||
Amortization of intangibles | 20 | 74 | 22 | 21 | 22 | (73 | ) | (9 | ) | ||||||||||||||||||
TOTAL NONINTEREST EXPENSE | 2,075 | 2,245 | 2,003 | 1,892 | 1,876 | (8 | ) | 11 | |||||||||||||||||||
Income before income tax expense | 712 | 913 | 760 | 810 | 756 | (22 | ) | (6 | ) | ||||||||||||||||||
Income tax expense | 271 | 345 | 284 | 310 | 269 | (21 | ) | 1 | |||||||||||||||||||
NET INCOME | $ | 441 | $ | 568 | $ | 476 | $ | 500 | $ | 487 | (22 | ) | (9 | ) | |||||||||||||
REVENUE BY CLIENT SEGMENT (a) | |||||||||||||||||||||||||||
Private Banking | $ | 1,509 | $ | 1,599 | $ | 1,484 | $ | 1,479 | $ | 1,446 | (6 | ) | 4 | ||||||||||||||
Institutional | 500 | 780 | 527 | 568 | 567 | (36 | ) | (12 | ) | ||||||||||||||||||
Retail | 769 | 800 | 752 | 678 | 640 | (4 | ) | 20 | |||||||||||||||||||
TOTAL NET REVENUE | $ | 2,778 | $ | 3,179 | $ | 2,763 | $ | 2,725 | $ | 2,653 | (13 | ) | 5 | ||||||||||||||
FINANCIAL RATIOS | |||||||||||||||||||||||||||
ROE | 20 | % | 25 | % | 21 | % | 22 | % | 22 | % | |||||||||||||||||
Overhead ratio | 75 | 71 | 72 | 69 | 71 | ||||||||||||||||||||||
Pretax margin ratio | 26 | 29 | 28 | 30 | 29 | ||||||||||||||||||||||
Headcount | 20,056 | 20,048 | 19,928 | 19,026 | 18,604 | - | 8 | ||||||||||||||||||||
Number of Client advisors | 2,925 | 2,962 | 2,995 | 2,804 | 2,797 | (1 | ) | 5 | |||||||||||||||||||
(a) | Prior period amounts have been reclassified to conform with current period presentation. |
Page 24
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
ASSET MANAGEMENT | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||
(in millions, except ratio data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
SELECTED BALANCE SHEET DATA (period-end) | |||||||||||||||||||||||||||
Total assets | $ | 124,478 | $ | 122,414 | $ | 117,475 | $ | 115,157 | $ | 109,734 | 2 | 13 | |||||||||||||||
Loans (a) | 96,934 | 95,445 | 90,538 | 86,043 | 81,403 | 2 | 19 | ||||||||||||||||||||
Deposits | 147,760 | 146,183 | 139,553 | 137,289 | 139,679 | 1 | 6 | ||||||||||||||||||||
Equity | 9,000 | 9,000 | 9,000 | 9,000 | 9,000 | - | - | ||||||||||||||||||||
SELECTED BALANCE SHEET DATA (average) | |||||||||||||||||||||||||||
Total assets | $ | 122,668 | $ | 119,041 | $ | 114,275 | $ | 111,431 | $ | 107,911 | 3 | 14 | |||||||||||||||
Loans | 95,661 | 92,712 | 87,770 | 83,621 | 80,002 | 3 | 20 | ||||||||||||||||||||
Deposits | 149,432 | 144,027 | 138,742 | 136,577 | 139,441 | 4 | 7 | ||||||||||||||||||||
Equity | 9,000 | 9,000 | 9,000 | 9,000 | 9,000 | - | - | ||||||||||||||||||||
CREDIT DATA AND QUALITY STATISTICS | |||||||||||||||||||||||||||
Net charge-offs | $ | 5 | $ | 4 | $ | 9 | $ | 4 | $ | 23 | 25 | (78 | ) | ||||||||||||||
Nonaccrual loans | 204 | 167 | 202 | 244 | 259 | 22 | (21 | ) | |||||||||||||||||||
Allowance for credit losses: | |||||||||||||||||||||||||||
Allowance for loan losses | 263 | 278 | 260 | 270 | 249 | (5 | ) | 6 | |||||||||||||||||||
Allowance for lending-related commitments | 5 | 5 | 7 | 6 | 5 | - | - | ||||||||||||||||||||
Total allowance for credit losses | 268 | 283 | 267 | 276 | 254 | (5 | ) | 6 | |||||||||||||||||||
Net charge-off rate | 0.02 | % | 0.02 | % | 0.04 | % | 0.02 | % | 0.12 | % | |||||||||||||||||
Allowance for loan losses to period-end loans | 0.27 | 0.29 | 0.29 | 0.31 | 0.31 | ||||||||||||||||||||||
Allowance for loan losses to nonaccrual loans | 129 | 166 | 129 | 111 | 96 | ||||||||||||||||||||||
Nonaccrual loans to period-end loans | 0.21 | 0.17 | 0.22 | 0.28 | 0.32 | ||||||||||||||||||||||
(a) | Included $19.7 billion, $18.9 billion, $17.5 billion, $14.8 billion and $12.7 billion of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. For the same periods, excluded $3.4 billion, $3.7 billion, $4.0 billion, $4.8 billion and $5.6 billion of prime mortgage loans reported in the CIO portfolio within the Corporate/Private Equity segment, respectively. |
Page 25
JPMORGAN CHASE & CO. | ![]() | |||||||||||||||||||||||||
ASSET MANAGEMENT | ||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | ||||||||||||||||||||||||||
(in billions) | ||||||||||||||||||||||||||
Mar 31, 2014 | ||||||||||||||||||||||||||
Change | ||||||||||||||||||||||||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Mar 31, | ||||||||||||||||||||
CLIENT ASSETS | 2014 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | |||||||||||||||||||
Assets by asset class | ||||||||||||||||||||||||||
Liquidity | $ | 444 | $ | 451 | $ | 446 | $ | 431 | $ | 454 | (2 | ) | % | (2 | ) | % | ||||||||||
Fixed income | 340 | 330 | 328 | 325 | 331 | 3 | 3 | |||||||||||||||||||
Equity | 373 | 370 | 346 | 316 | 312 | 1 | 20 | |||||||||||||||||||
Multi-asset and alternatives | 491 | 447 | 420 | 398 | 386 | 10 | 27 | |||||||||||||||||||
TOTAL ASSETS UNDER MANAGEMENT | 1,648 | 1,598 | 1,540 | 1,470 | 1,483 | 3 | 11 | |||||||||||||||||||
Custody/brokerage/administration/deposits | 746 | 745 | 706 | 687 | 688 | - | 8 | |||||||||||||||||||
TOTAL CLIENT ASSETS | $ | 2,394 | $ | 2,343 | $ | 2,246 | $ | 2,157 | $ | 2,171 | 2 | 10 | ||||||||||||||
MEMO: | ||||||||||||||||||||||||||
Alternatives client assets (a) | $ | 160 | $ | 158 | $ | 151 | $ | 147 | $ | 144 | 1 | 11 | ||||||||||||||
Assets by client segment | ||||||||||||||||||||||||||
Private Banking | $ | 377 | $ | 361 | $ | 352 | $ | 340 | $ | 339 | 4 | 11 | ||||||||||||||
Institutional | 773 | 777 | 752 | 723 | 749 | (1 | ) | 3 | ||||||||||||||||||
Retail | 498 | 460 | 436 | 407 | 395 | 8 | 26 | |||||||||||||||||||
TOTAL ASSETS UNDER MANAGEMENT | $ | 1,648 | $ | 1,598 | $ | 1,540 | $ | 1,470 | $ | 1,483 | 3 | 11 | ||||||||||||||
Private Banking | $ | 992 | $ | 977 | $ | 935 | $ | 910 | $ | 909 | 2 | 9 | ||||||||||||||
Institutional | 773 | 777 | 752 | 723 | 749 | (1 | ) | 3 | ||||||||||||||||||
Retail | 629 | 589 | 559 | 524 | 513 | 7 | 23 | |||||||||||||||||||
TOTAL CLIENT ASSETS | $ | 2,394 | $ | 2,343 | $ | 2,246 | $ | 2,157 | $ | 2,171 | 2 | 10 | ||||||||||||||
Assets under management rollforward | ||||||||||||||||||||||||||
Beginning balance | $ | 1,598 | $ | 1,540 | $ | 1,470 | $ | 1,483 | $ | 1,426 | ||||||||||||||||
Net asset flows: | ||||||||||||||||||||||||||
Liquidity | (6 | ) | 7 | 13 | (22 | ) | (2 | ) | ||||||||||||||||||
Fixed income | 5 | 1 | 1 | 4 | 2 | |||||||||||||||||||||
Equity | 3 | 5 | 7 | 7 | 15 | |||||||||||||||||||||
Multi-asset and alternatives | 12 | 10 | 11 | 14 | 13 | |||||||||||||||||||||
Market/performance/other impacts | 36 | 35 | 38 | (16 | ) | 29 | ||||||||||||||||||||
Ending balance | $ | 1,648 | $ | 1,598 | $ | 1,540 | $ | 1,470 | $ | 1,483 | ||||||||||||||||
Client assets rollforward | ||||||||||||||||||||||||||
Beginning balance | $ | 2,343 | $ | 2,246 | $ | 2,157 | $ | 2,171 | $ | 2,095 | ||||||||||||||||
Net asset flows | 15 | 25 | 39 | (4 | ) | 20 | ||||||||||||||||||||
Market/performance/other impacts | 36 | 72 | 50 | (10 | ) | 56 | ||||||||||||||||||||
Ending balance | $ | 2,394 | $ | 2,343 | $ | 2,246 | $ | 2,157 | $ | 2,171 | ||||||||||||||||
(a) | Represents assets under management, as well as client balances in brokerage accounts. |
Page 26
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CORPORATE/PRIVATE EQUITY | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS | |||||||||||||||||||||||||||
(in millions, except headcount data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
INCOME STATEMENT | |||||||||||||||||||||||||||
REVENUE | |||||||||||||||||||||||||||
Principal transactions | $ | 350 | $ | 54 | $ | 378 | $ | 393 | $ | (262 | ) | NM | % | NM | % | ||||||||||||
Securities gains | 26 | 7 | 26 | 124 | 509 | 271 | (95 | ) | |||||||||||||||||||
All other income | 148 | 1,894 | (c) | 83 | (227 | ) | 114 | (92 | ) | 30 | |||||||||||||||||
Noninterest revenue | 524 | 1,955 | 487 | 290 | 361 | (73 | ) | 45 | |||||||||||||||||||
Net interest income | (156 | ) | (203 | ) | (366 | ) | (676 | ) | (594 | ) | 23 | 74 | |||||||||||||||
TOTAL NET REVENUE (a) | 368 | 1,752 | 121 | (386 | ) | (233 | ) | (79 | ) | NM | |||||||||||||||||
Provision for credit losses | (11 | ) | (13 | ) | (17 | ) | 5 | (3 | ) | 15 | (267 | ) | |||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||||||||||
Compensation expense | 687 | 551 | 551 | 624 | 573 | 25 | 20 | ||||||||||||||||||||
Noncompensation expense (b) | 683 | 1,331 | 9,890 | 1,345 | 642 | (49 | ) | 6 | |||||||||||||||||||
Subtotal | 1,370 | 1,882 | 10,441 | 1,969 | 1,215 | (27 | ) | 13 | |||||||||||||||||||
Net expense allocated to other businesses | (1,536 | ) | (1,441 | ) | (1,345 | ) | (1,253 | ) | (1,213 | ) | (7 | ) | (27 | ) | |||||||||||||
TOTAL NONINTEREST EXPENSE | (166 | ) | 441 | 9,096 | 716 | 2 | NM | NM | |||||||||||||||||||
Income/(loss) before income tax expense/(benefit) | 545 | 1,324 | (8,958 | ) | (1,107 | ) | (232 | ) | (59 | ) | NM | ||||||||||||||||
Income tax expense/(benefit) | 205 | 537 | (2,495 | ) | (555 | ) | (482 | ) | (62 | ) | NM | ||||||||||||||||
NET INCOME/(LOSS) | $ | 340 | $ | 787 | $ | (6,463 | ) | $ | (552 | ) | $ | 250 | (57 | ) | 36 | ||||||||||||
MEMO: | |||||||||||||||||||||||||||
TOTAL NET REVENUE | |||||||||||||||||||||||||||
Private Equity | $ | 363 | $ | 57 | $ | 398 | $ | 410 | $ | (276 | ) | NM | NM | ||||||||||||||
Treasury and Chief Investment Office ("CIO") | 2 | (25 | ) | (232 | ) | (648 | ) | 113 | NM | (98 | ) | ||||||||||||||||
Other Corporate | 3 | 1,720 | (45 | ) | (148 | ) | (70 | ) | (100 | ) | NM | ||||||||||||||||
TOTAL NET REVENUE | $ | 368 | $ | 1,752 | $ | 121 | $ | (386 | ) | $ | (233 | ) | (79 | ) | NM | ||||||||||||
NET INCOME/(LOSS) | |||||||||||||||||||||||||||
Private Equity | $ | 215 | $ | 13 | $ | 242 | $ | 212 | $ | (182 | ) | NM | NM | ||||||||||||||
Treasury and CIO | (94 | ) | (78 | ) | (193 | ) | (429 | ) | 24 | (21 | ) | NM | |||||||||||||||
Other Corporate | 219 | 852 | (6,512 | ) | (335 | ) | 408 | (74 | ) | (46 | ) | ||||||||||||||||
TOTAL NET INCOME/(LOSS) | $ | 340 | $ | 787 | $ | (6,463 | ) | $ | (552 | ) | $ | 250 | (57 | ) | 36 | ||||||||||||
TOTAL ASSETS (period-end) | $ | 839,625 | $ | 805,987 | $ | 835,000 | $ | 806,044 | $ | 763,765 | 4 | 10 | |||||||||||||||
Headcount | 22,474 | 20,717 | 19,843 | 18,720 | 18,026 | 8 | 25 | ||||||||||||||||||||
(a) | Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $164 million, $144 million, $128 million, $105 million and $103 million for the three months ended March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. |
(b) | Included legal expense of $0.4 billion, $9.2 billion and $0.6 billion for the three months ended December 31, 2013, September 30, 2013 and June 30, 2013, respectively; legal expense for the three months ended March 31,2014 and March 31, 2013 was not material. |
(c) | Included a $1.3 billion gain from the sale of Visa shares and a $493 million gain from the sale of One Chase Manhattan Plaza. |
Page 27
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CORPORATE/PRIVATE EQUITY | |||||||||||||||||||||||||||
FINANCIAL HIGHLIGHTS, CONTINUED | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
SUPPLEMENTAL INFORMATION | |||||||||||||||||||||||||||
TREASURY and CHIEF INVESTMENT OFFICE ("CIO") | |||||||||||||||||||||||||||
Securities gains | $ | 26 | $ | 7 | $ | 26 | $ | 123 | $ | 503 | 271 | % | (95 | ) | % | ||||||||||||
Investment securities portfolio (average) (a) | 345,147 | 344,949 | 348,622 | 355,920 | 365,639 | - | (6 | ) | |||||||||||||||||||
Investment securities portfolio (period-end) (b) | 345,021 | 347,562 | 350,527 | 349,044 | 360,230 | (1 | ) | (4 | ) | ||||||||||||||||||
Mortgage loans (average) | 3,670 | 3,980 | 4,562 | 5,556 | 6,516 | (8 | ) | (44 | ) | ||||||||||||||||||
Mortgage loans (period-end) | 3,522 | 3,779 | 4,161 | 4,955 | 5,914 | (7 | ) | (40 | ) | ||||||||||||||||||
PRIVATE EQUITY | |||||||||||||||||||||||||||
Private equity gains/(losses) | |||||||||||||||||||||||||||
Direct investments | |||||||||||||||||||||||||||
Realized gains/(losses) | $ | 459 | $ | (116 | ) | $ | (142 | ) | $ | 40 | $ | 48 | NM | NM | |||||||||||||
Unrealized gains/(losses) (c) | (60 | ) | 199 | 487 | 375 | (327 | ) | NM | 82 | ||||||||||||||||||
Total direct investments | 399 | 83 | 345 | 415 | (279 | ) | 381 | NM | |||||||||||||||||||
Third-party fund investments | (1 | ) | 10 | 83 | 24 | 20 | NM | NM | |||||||||||||||||||
Total private equity gains/(losses) (d) | $ | 398 | $ | 93 | $ | 428 | $ | 439 | $ | (259 | ) | 328 | NM | ||||||||||||||
Private equity portfolio information | |||||||||||||||||||||||||||
Direct investments | |||||||||||||||||||||||||||
Publicly-held securities | |||||||||||||||||||||||||||
Carrying value | $ | 1,291 | $ | 1,035 | $ | 538 | $ | 550 | $ | 578 | 25 | 123 | |||||||||||||||
Cost | 612 | 672 | 345 | 346 | 350 | (9 | ) | 75 | |||||||||||||||||||
Quoted public value | 1,334 | 1,077 | 538 | 550 | 578 | 24 | 131 | ||||||||||||||||||||
Privately-held direct securities | |||||||||||||||||||||||||||
Carrying value | 4,675 | 5,065 | 6,266 | 5,448 | 5,088 | (8 | ) | (8 | ) | ||||||||||||||||||
Cost | 5,844 | 6,022 | 7,096 | 6,831 | 6,816 | (3 | ) | (14 | ) | ||||||||||||||||||
Third-party fund investments (e) | |||||||||||||||||||||||||||
Carrying value | 990 | 1,768 | 1,905 | 1,958 | 2,047 | (44 | ) | (52 | ) | ||||||||||||||||||
Cost | 1,033 | 1,797 | 1,910 | 1,968 | 1,967 | (43 | ) | (47 | ) | ||||||||||||||||||
Total private equity portfolio | |||||||||||||||||||||||||||
Carrying value | $ | 6,956 | $ | 7,868 | $ | 8,709 | $ | 7,956 | $ | 7,713 | (12 | ) | (10 | ) | |||||||||||||
Cost | 7,489 | 8,491 | 9,351 | 9,145 | 9,133 | (12 | ) | (18 | ) | ||||||||||||||||||
(a) | Average investment securities included held-to-maturity balances of $43.9 billion, $13.8 billion and $1.9 billion for the three months ended March 31, 2014, December 31, 2013 and September 30, 2013, respectively. Held-to-maturity average balances for the other periods were not material. |
(b) | Period-end investment securities included held-to-maturity balances of $47.3 billion, $24.0 billion and $4.5 billion at March 31, 2014, December 31, 2013 and September 30, 2013, respectively. Held-to-maturity balances for the other periods were not material. |
(c) | Unrealized gains/(losses) contain reversals of unrealized gains and losses that were recognized in prior periods and have now been realized. |
(d) | Included in principal transactions revenue in the Consolidated Statements of Income. |
(e) | Unfunded commitments to third-party private equity funds were $160 million, $215 million, $232 million, $251 million, and $323 million at March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, respectively. |
Page 28
JPMORGAN CHASE & CO. | ![]() | |||||||||||||||||||||||||
CREDIT-RELATED INFORMATION | ||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||
Mar 31, 2014 | ||||||||||||||||||||||||||
Change | ||||||||||||||||||||||||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Mar 31, | ||||||||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||
CREDIT EXPOSURE | ||||||||||||||||||||||||||
Consumer, excluding credit card loans (a) | ||||||||||||||||||||||||||
Loans retained, excluding PCI loans | 236,324 | 235,394 | 233,452 | 230,652 | 231,645 | - | 2 | |||||||||||||||||||
Loans - PCI | 51,606 | 53,055 | 54,759 | 56,736 | 58,437 | (3 | ) | (12 | ) | |||||||||||||||||
Total loans retained | 287,930 | 288,449 | 288,211 | 287,388 | 290,082 | - | (1 | ) | ||||||||||||||||||
Loans held-for-sale | 238 | 614 | 139 | 708 | — | (61 | ) | NM | ||||||||||||||||||
Total consumer, excluding credit card loans | 288,168 | 289,063 | 288,350 | 288,096 | 290,082 | - | (1 | ) | ||||||||||||||||||
Credit card loans | ||||||||||||||||||||||||||
Loans retained (b) | 121,512 | 127,465 | 123,672 | 124,288 | 121,865 | (5 | ) | - | ||||||||||||||||||
Loans held-for-sale | 304 | 326 | 310 | — | — | (7 | ) | NM | ||||||||||||||||||
Total credit card loans | 121,816 | 127,791 | 123,982 | 124,288 | 121,865 | (5 | ) | - | ||||||||||||||||||
Total consumer loans | 409,984 | 416,854 | 412,332 | 412,384 | 411,947 | (2 | ) | - | ||||||||||||||||||
Wholesale loans (c) | ||||||||||||||||||||||||||
Loans retained | 311,718 | 308,263 | 310,588 | 308,208 | 310,582 | 1 | - | |||||||||||||||||||
Loans held-for-sale and loans at fair value | 9,269 | 13,301 | 5,759 | 4,994 | 6,357 | (30 | ) | 46 | ||||||||||||||||||
Total wholesale loans | 320,987 | 321,564 | 316,347 | 313,202 | 316,939 | - | 1 | |||||||||||||||||||
Total loans | 730,971 | 738,418 | 728,679 | 725,586 | 728,886 | (1 | ) | - | ||||||||||||||||||
Derivative receivables | 59,272 | 65,759 | 66,788 | 73,751 | 70,609 | (10 | ) | (16 | ) | |||||||||||||||||
Receivables from customers and other (d) | 26,494 | 26,883 | 24,618 | 23,852 | 30,111 | (1 | ) | (12 | ) | |||||||||||||||||
Total credit-related assets | 85,766 | 92,642 | 91,406 | 97,603 | 100,720 | (7 | ) | (15 | ) | |||||||||||||||||
Lending-related commitments | ||||||||||||||||||||||||||
Consumer, excluding credit card | 56,541 | 56,057 | 58,787 | 62,303 | 60,874 | 1 | (7 | ) | ||||||||||||||||||
Credit card | 535,614 | 529,383 | 532,251 | 532,359 | 537,455 | 1 | - | |||||||||||||||||||
Wholesale | 456,531 | 446,232 | 449,067 | 445,472 | 435,281 | 2 | 5 | |||||||||||||||||||
Total lending-related commitments | 1,048,686 | 1,031,672 | 1,040,105 | 1,040,134 | 1,033,610 | 2 | 1 | |||||||||||||||||||
Total credit exposure | $ | 1,865,423 | $ | 1,862,732 | $ | 1,860,190 | $ | 1,863,323 | $ | 1,863,216 | - | - | ||||||||||||||
Memo: Total by category | ||||||||||||||||||||||||||
Consumer exposure (e) | $ | 1,002,295 | $ | 1,002,433 | $ | 1,003,499 | $ | 1,007,175 | $ | 1,010,399 | - | (1 | ) | |||||||||||||
Wholesale exposures (f) | 863,128 | 860,299 | 856,691 | 856,148 | 852,817 | - | 1 | |||||||||||||||||||
Total credit exposure | $ | 1,865,423 | $ | 1,862,732 | $ | 1,860,190 | $ | 1,863,323 | $ | 1,863,216 | - | - | ||||||||||||||
(a) | Includes loans reported in CCB, and prime mortgage loans reported in the AM business segment and in Corporate/Private Equity. |
(b) | Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income. |
(c) | Includes loans reported in CIB, CB and AM business segments and Corporate/Private Equity. |
(d) | Predominantly includes receivables from customers, which represent margin loans to prime and retail brokerage customers; these are classified in accrued interest and accounts receivable on the Consolidated Balance Sheets. |
(e) | Represents total consumer loans and consumer lending-related commitments. |
(f) | Represents total wholesale loans, wholesale lending-related commitments, derivative receivables and receivables from customers. |
Page 29
JPMORGAN CHASE & CO. | ![]() | |||||||||||||||||||||||||
CREDIT-RELATED INFORMATION, CONTINUED | ||||||||||||||||||||||||||
(in millions, except ratio data) | ||||||||||||||||||||||||||
Mar 31, 2014 | ||||||||||||||||||||||||||
Change | ||||||||||||||||||||||||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Mar 31, | ||||||||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||
NONPERFORMING ASSETS (a) | ||||||||||||||||||||||||||
Consumer, excluding credit card loans | 7,370 | 7,496 | 8,076 | 8,576 | 9,048 | (2 | ) | % | (19 | ) | % | |||||||||||||||
Credit card loans | — | — | 1 | 1 | 1 | - | NM | |||||||||||||||||||
Total consumer nonaccrual loans (b) | 7,370 | 7,496 | 8,077 | 8,577 | 9,049 | (2 | ) | (19 | ) | |||||||||||||||||
Wholesale nonaccrual loans | ||||||||||||||||||||||||||
Loans retained | 753 | 821 | 950 | 1,001 | 1,247 | (8 | ) | (40 | ) | |||||||||||||||||
Loans held-for-sale and loans at fair value | 193 | 223 | 218 | 301 | 285 | (13 | ) | (32 | ) | |||||||||||||||||
Total wholesale nonaccrual loans | 946 | 1,044 | 1,168 | 1,302 | 1,532 | (9 | ) | (38 | ) | |||||||||||||||||
Total nonaccrual loans | 8,316 | 8,540 | 9,245 | 9,879 | 10,581 | (3 | ) | (21 | ) | |||||||||||||||||
Derivative receivables | 392 | 415 | 431 | 448 | 412 | (6 | ) | (5 | ) | |||||||||||||||||
Assets acquired in loan satisfactions | 765 | 751 | 704 | 714 | 746 | 2 | 3 | |||||||||||||||||||
Total nonperforming assets | 9,473 | 9,706 | 10,380 | 11,041 | 11,739 | (2 | ) | (19 | ) | |||||||||||||||||
Wholesale lending-related commitments (c) | 95 | 206 | 244 | 283 | 244 | (54 | ) | (61 | ) | |||||||||||||||||
Total nonperforming exposure | $ | 9,568 | $ | 9,912 | $ | 10,624 | $ | 11,324 | $ | 11,983 | (3 | ) | (20 | ) | ||||||||||||
NONACCRUAL LOAN-RELATED RATIOS | ||||||||||||||||||||||||||
Total nonaccrual loans to total loans | 1.14 | % | 1.16 | % | 1.27 | % | 1.36 | % | 1.45 | % | ||||||||||||||||
Total consumer, excluding credit card nonaccrual loans to | ||||||||||||||||||||||||||
total consumer, excluding credit card loans | 2.56 | 2.59 | 2.80 | 2.98 | 3.12 | |||||||||||||||||||||
Total wholesale nonaccrual loans to total | ||||||||||||||||||||||||||
wholesale loans | 0.29 | 0.32 | 0.37 | 0.42 | 0.48 | |||||||||||||||||||||
(a) | At March 31, 2014, December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $7.7 billion, $8.4 billion, $8.9 billion, $10.1 billion and $10.9 billion, respectively, that are 90 or more days past due; (2) real estate owned insured by U.S. government agencies of $2.1 billion, $2.0 billion, $1.9 billion, $1.8 billion and $1.7 billion, respectively; and (3) student loans insured by U.S. government agencies under the FFELP of $387 million, $428 million, $456 million, $488 million and $523 million, respectively, that are 90 or more days past due. These amounts are 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 issued by the Federal Financial Institutions Examination Council (“FFIEC”). Under this guidance, nonmodified credit card loans are charged off by the end of the month in which the account becomes 180 days past due, while modified credit card loans are charged off when the account becomes 120 days past due. Moreover, all credit card loans must be charged off within 60 days of receiving notification about certain specified events (e.g., bankruptcy of the borrower). |
(b) | Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing. |
(c) Represents commitments that are risk rated as nonaccrual.
Page 30
JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
CREDIT-RELATED INFORMATION, CONTINUED | |||||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
SUMMARY OF CHANGES IN THE ALLOWANCES | |||||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||||||
Beginning balance | $ | 16,264 | $ | 17,571 | $ | 19,384 | $ | 20,780 | $ | 21,936 | (7 | ) | % | (26 | ) | % | |||||||||||
Net charge-offs: | |||||||||||||||||||||||||||
Gross charge-offs | 1,632 | 1,687 | 1,792 | 1,882 | 2,106 | (3 | ) | (23 | ) | ||||||||||||||||||
Gross recoveries | (363 | ) | (359 | ) | (446 | ) | (479 | ) | (381 | ) | (1 | ) | 5 | ||||||||||||||
Net charge-offs | 1,269 | 1,328 | 1,346 | 1,403 | 1,725 | (4 | ) | (26 | ) | ||||||||||||||||||
Write-offs of PCI loans (a) | 61 | 53 | — | — | — | 15 | NM | ||||||||||||||||||||
Provision for loan losses | 917 | 76 | (467 | ) | 10 | 569 | NM | 61 | |||||||||||||||||||
Other | (4 | ) | (2 | ) | — | (3 | ) | — | (100 | ) | NM | ||||||||||||||||
Ending balance | $ | 15,847 | $ | 16,264 | $ | 17,571 | $ | 19,384 | $ | 20,780 | (3 | ) | (24 | ) | |||||||||||||
ALLOWANCE FOR LENDING-RELATED COMMITMENTS | |||||||||||||||||||||||||||
Beginning balance | $ | 705 | $ | 677 | $ | 753 | $ | 716 | $ | 668 | 4 | 6 | |||||||||||||||
Provision for lending-related commitments | (67 | ) | 28 | (76 | ) | 37 | 48 | NM | NM | ||||||||||||||||||
Other | — | — | — | — | — | - | - | ||||||||||||||||||||
Ending balance | $ | 638 | $ | 705 | $ | 677 | $ | 753 | $ | 716 | (10 | ) | (11 | ) | |||||||||||||
Total allowance for credit losses | $ | 16,485 | $ | 16,969 | $ | 18,248 | $ | 20,137 | $ | 21,496 | (3 | ) | (23 | ) | |||||||||||||
NET CHARGE-OFF/(RECOVERY) RATES | |||||||||||||||||||||||||||
Consumer retained, excluding credit card loans (b) | 0.52 | % | 0.57 | % | 0.59 | % | 0.63 | % | 0.85 | % | |||||||||||||||||
Credit card retained loans | 2.93 | 2.86 | 2.86 | 3.31 | 3.55 | ||||||||||||||||||||||
Total consumer retained loans | 1.24 | 1.26 | 1.27 | 1.43 | 1.65 | ||||||||||||||||||||||
Wholesale retained loans | 0.02 | 0.03 | 0.03 | (0.09 | ) | 0.05 | |||||||||||||||||||||
Total retained loans | 0.71 | 0.73 | 0.74 | 0.78 | 0.97 | ||||||||||||||||||||||
Consumer retained loans, excluding credit card and | |||||||||||||||||||||||||||
PCI loans | 0.63 | 0.70 | 0.73 | 0.79 | 1.06 | ||||||||||||||||||||||
Consumer retained loans, excluding PCI loans | 1.42 | 1.44 | 1.47 | 1.66 | 1.92 | ||||||||||||||||||||||
Total retained, excluding PCI loans | 0.77 | 0.79 | 0.81 | 0.85 | 1.06 | ||||||||||||||||||||||
Memo: Average retained loans | |||||||||||||||||||||||||||
Consumer retained, excluding credit card loans | $ | 288,547 | $ | 288,751 | $ | 287,729 | $ | 289,158 | $ | 291,588 | - | (1 | ) | ||||||||||||||
Credit card retained loans | 122,946 | 123,800 | 123,845 | 122,855 | 123,564 | (1 | ) | (1 | ) | ||||||||||||||||||
Total average retained consumer loans | 411,493 | 412,551 | 411,574 | 412,013 | 415,152 | - | (1 | ) | |||||||||||||||||||
Wholesale retained loans | 309,037 | 311,090 | 306,008 | 308,277 | 303,919 | (1 | ) | 2 | |||||||||||||||||||
Total average retained loans | $ | 720,530 | $ | 723,641 | $ | 717,582 | $ | 720,290 | $ | 719,071 | - | - | |||||||||||||||
Consumer retained, excluding credit card and | |||||||||||||||||||||||||||
PCI loans | $ | 236,143 | $ | 234,858 | $ | 232,100 | $ | 231,655 | $ | 232,503 | 1 | 2 | |||||||||||||||
Consumer retained, excluding PCI loans | 359,089 | 358,658 | 355,945 | 354,510 | 356,067 | - | 1 | ||||||||||||||||||||
Total retained, excluding PCI loans | 668,120 | 669,738 | 661,941 | 662,776 | 659,972 | - | 1 | ||||||||||||||||||||
(a) | Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. Any write-offs of PCI loans are recognized when the underlying loan is removed from a pool (e.g., upon liquidation). |
(b) | The net charge-off rates exclude the write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans. |
Page 31
JPMORGAN CHASE & CO. | ![]() | |||||||||||||||||||||||||
CREDIT-RELATED INFORMATION, CONTINUED | ||||||||||||||||||||||||||
(in millions, except ratio data) | ||||||||||||||||||||||||||
Mar 31, 2014 | ||||||||||||||||||||||||||
Change | ||||||||||||||||||||||||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Mar 31, | ||||||||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||
ALLOWANCE COMPONENTS AND RATIOS | ||||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||||
Consumer, excluding credit card | ||||||||||||||||||||||||||
Asset-specific (a) | $ | 607 | $ | 601 | $ | 689 | $ | 713 | $ | 771 | 1 | % | (21 | ) | % | |||||||||||
Formula-based | 3,443 | 3,697 | 3,798 | 4,267 | 5,163 | (7 | ) | (33 | ) | |||||||||||||||||
PCI | 4,097 | 4,158 | 4,961 | 5,711 | 5,711 | (1 | ) | (28 | ) | |||||||||||||||||
Total consumer, excluding credit card | 8,147 | 8,456 | 9,448 | 10,691 | 11,645 | (4 | ) | (30 | ) | |||||||||||||||||
Credit card | ||||||||||||||||||||||||||
Asset-specific (a)(b) | 606 | 971 | 1,080 | 1,227 | 1,434 | (38 | ) | (58 | ) | |||||||||||||||||
Formula-based | 2,985 | 2,824 | 3,017 | 3,218 | 3,564 | 6 | (16 | ) | ||||||||||||||||||
Total credit card | 3,591 | 3,795 | 4,097 | 4,445 | 4,998 | (5 | ) | (28 | ) | |||||||||||||||||
Total consumer | 11,738 | 12,251 | 13,545 | 15,136 | 16,643 | (4 | ) | (29 | ) | |||||||||||||||||
Wholesale | ||||||||||||||||||||||||||
Asset-specific (a) | 144 | 181 | 209 | 228 | 228 | (20 | ) | (37 | ) | |||||||||||||||||
Formula-based | 3,965 | 3,832 | 3,817 | 4,020 | 3,909 | 3 | 1 | |||||||||||||||||||
Total wholesale | 4,109 | 4,013 | 4,026 | 4,248 | 4,137 | 2 | (1 | ) | ||||||||||||||||||
Total allowance for loan losses | 15,847 | 16,264 | 17,571 | 19,384 | 20,780 | (3 | ) | (24 | ) | |||||||||||||||||
Allowance for lending-related commitments | 638 | 705 | 677 | 753 | 716 | (10 | ) | (11 | ) | |||||||||||||||||
Total allowance for credit losses | $ | 16,485 | $ | 16,969 | $ | 18,248 | $ | 20,137 | $ | 21,496 | (3 | ) | (23 | ) | ||||||||||||
CREDIT RATIOS | ||||||||||||||||||||||||||
Consumer, excluding credit card allowance, to total | ||||||||||||||||||||||||||
consumer, excluding credit card retained loans | 2.83 | % | 2.93 | % | 3.28 | % | 3.72 | % | 4.01 | % | ||||||||||||||||
Credit card allowance to total credit card retained loans | 2.96 | 2.98 | 3.31 | 3.58 | 4.10 | |||||||||||||||||||||
Wholesale allowance to total wholesale retained loans | 1.32 | 1.30 | 1.30 | 1.38 | 1.33 | |||||||||||||||||||||
Wholesale allowance to total wholesale retained loans, | ||||||||||||||||||||||||||
excluding trade finance and conduits (c) | 1.51 | 1.50 | 1.52 | 1.65 | 1.61 | |||||||||||||||||||||
Total allowance to total retained loans | 2.20 | 2.25 | 2.43 | 2.69 | 2.88 | |||||||||||||||||||||
Consumer, excluding credit card allowance, to consumer, | ||||||||||||||||||||||||||
excluding credit card retained nonaccrual loans (d) | 111 | 113 | 117 | 125 | 129 | |||||||||||||||||||||
Total allowance, excluding credit card allowance, to retained | ||||||||||||||||||||||||||
nonaccrual loans, excluding credit card nonaccrual loans (d) | 151 | 150 | 149 | 156 | 153 | |||||||||||||||||||||
Wholesale allowance to wholesale retained nonaccrual loans | 546 | 489 | 424 | 424 | 332 | |||||||||||||||||||||
Total allowance to total retained nonaccrual loans | 195 | 196 | 195 | 202 | 202 | |||||||||||||||||||||
CREDIT RATIOS, excluding PCI loans | ||||||||||||||||||||||||||
Consumer, excluding credit card allowance, to total | ||||||||||||||||||||||||||
consumer, excluding credit card retained loans | 1.71 | 1.83 | 1.92 | 2.16 | 2.56 | |||||||||||||||||||||
Total allowance to total retained loans | 1.75 | 1.80 | 1.89 | 2.06 | 2.27 | |||||||||||||||||||||
Consumer, excluding credit card allowance, to consumer, | ||||||||||||||||||||||||||
excluding credit card retained nonaccrual loans (d) | 55 | 57 | 56 | 58 | 66 | |||||||||||||||||||||
Allowance, excluding credit card allowance, to retained non- | ||||||||||||||||||||||||||
accrual loans, excluding credit card nonaccrual loans (d) | 100 | 100 | 94 | 96 | 98 | |||||||||||||||||||||
Total allowance to total retained nonaccrual loans | 145 | 146 | 140 | 143 | 146 | |||||||||||||||||||||
(a) | Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a troubled debt restructuring (“TDR”). |
(b) | The asset-specific credit card allowance for loan losses is related to loans that have been modified in a TDR; such allowance is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates. |
(c) | Management uses allowance for loan losses to period-end loans retained, excluding CIB's trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of the wholesale allowance coverage ratio. |
(d) | For information on the Firm’s nonaccrual policy for credit card loans, see footnote (a) on page 30. |
Page 32
JPMORGAN CHASE & CO. | ![]() | |||||||||||||||||||||||||||
CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS | ||||||||||||||||||||||||||||
(in millions, except ratio data) | ||||||||||||||||||||||||||||
Mar 31, 2014 | ||||||||||||||||||||||||||||
Change | ||||||||||||||||||||||||||||
Mar 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | Dec 31, | Mar 31, | ||||||||||||||||||||||
2014 | 2013 | 2013 | 2013 | 2013 | 2013 | 2013 | ||||||||||||||||||||||
CAPITAL (a) | ||||||||||||||||||||||||||||
Tier 1 capital | $ | 173,495 | (f)(g) | $ | 165,663 | $ | 161,345 | $ | 164,027 | $ | 163,807 | 5 | % | 6 | % | |||||||||||||
Total capital | 209,449 | (f) | 199,286 | 196,224 | 199,148 | 198,926 | 5 | 5 | ||||||||||||||||||||
Tier 1 common capital (b) | 156,939 | (f) | 148,887 | 144,584 | 146,957 | 143,255 | 5 | 10 | ||||||||||||||||||||
Risk-weighted assets | 1,438,863 | (f) | 1,387,863 | 1,374,039 | 1,410,081 | 1,406,948 | 4 | 2 | ||||||||||||||||||||
Adjusted average assets (c) | 2,343,258 | (f) | 2,343,713 | 2,327,427 | 2,333,416 | 2,255,697 | - | 4 | ||||||||||||||||||||
Tier 1 capital ratio | 12.1 | (f) | % | 11.9 | % | 11.7 | % | 11.6 | % | 11.6 | % | |||||||||||||||||
Total capital ratio | 14.6 | (f) | 14.4 | 14.3 | 14.1 | 14.1 | ||||||||||||||||||||||
Tier 1 leverage ratio | 7.4 | (f) | 7.1 | 6.9 | 7.0 | 7.3 | ||||||||||||||||||||||
Tier 1 common capital ratio (b) | 10.9 | (f) | 10.7 | 10.5 | 10.4 | 10.2 | ||||||||||||||||||||||
TANGIBLE COMMON EQUITY (period-end) (d) | ||||||||||||||||||||||||||||
Common stockholders' equity | $ | 204,572 | $ | 200,020 | $ | 195,512 | $ | 197,781 | $ | 197,128 | 2 | 4 | ||||||||||||||||
Less: Goodwill | 48,065 | 48,081 | 48,100 | 48,057 | 48,067 | - | - | |||||||||||||||||||||
Less: Other intangible assets | 1,489 | 1,618 | 1,817 | 1,951 | 2,082 | (8 | ) | (28 | ) | |||||||||||||||||||
Add: Deferred tax liabilities (e) | 2,935 | 2,953 | 2,921 | 2,886 | 2,852 | (1 | ) | 3 | ||||||||||||||||||||
Total tangible common equity | $ | 157,953 | $ | 153,274 | $ | 148,516 | $ | 150,659 | $ | 149,831 | 3 | 5 | ||||||||||||||||
TANGIBLE COMMON EQUITY (average) (d) | ||||||||||||||||||||||||||||
Common stockholders' equity | $ | 201,797 | $ | 196,360 | $ | 197,232 | $ | 197,283 | $ | 194,733 | 3 | 4 | ||||||||||||||||
Less: Goodwill | 48,054 | 48,088 | 48,073 | 48,078 | 48,168 | - | - | |||||||||||||||||||||
Less: Other intangible assets | 1,548 | 1,741 | 1,878 | 2,026 | 2,162 | (11 | ) | (28 | ) | |||||||||||||||||||
Add: Deferred tax liabilities (e) | 2,944 | 2,937 | 2,904 | 2,869 | 2,828 | - | 4 | |||||||||||||||||||||
Total tangible common equity | $ | 155,139 | $ | 149,468 | $ | 150,185 | $ | 150,048 | $ | 147,231 | 4 | 5 | ||||||||||||||||
INTANGIBLE ASSETS (period-end) | ||||||||||||||||||||||||||||
Goodwill | $ | 48,065 | $ | 48,081 | $ | 48,100 | $ | 48,057 | $ | 48,067 | - | - | ||||||||||||||||
Mortgage servicing rights | 8,552 | 9,614 | 9,490 | 9,335 | 7,949 | (11 | ) | 8 | ||||||||||||||||||||
Purchased credit card relationships | 86 | 131 | 176 | 221 | 242 | (34 | ) | (64 | ) | |||||||||||||||||||
All other intangibles | 1,403 | 1,487 | 1,641 | 1,730 | 1,840 | (6 | ) | (24 | ) | |||||||||||||||||||
Total intangible assets | $ | 58,106 | $ | 59,313 | $ | 59,407 | $ | 59,343 | $ | 58,098 | (2 | ) | - | |||||||||||||||
DEPOSITS (period-end) | ||||||||||||||||||||||||||||
U.S. offices: | ||||||||||||||||||||||||||||
Noninterest-bearing | $ | 384,503 | $ | 389,863 | $ | 399,658 | $ | 362,314 | $ | 363,780 | (1 | ) | 6 | |||||||||||||||
Interest-bearing | 625,641 | 626,392 | 605,305 | 580,091 | 571,334 | - | 10 | |||||||||||||||||||||
Non-U.S. offices: | ||||||||||||||||||||||||||||
Noninterest-bearing | 13,590 | 17,611 | 20,964 | 19,515 | 19,979 | (23 | ) | (32 | ) | |||||||||||||||||||
Interest-bearing | 258,971 | 253,899 | 255,175 | 241,030 | 247,414 | 2 | 5 | |||||||||||||||||||||
Total deposits | $ | 1,282,705 | $ | 1,287,765 | $ | 1,281,102 | $ | 1,202,950 | $ | 1,202,507 | - | 7 | ||||||||||||||||
(a) | Basel III rules under the transitional Standardized Approach became effective on January 1, 2014; all prior period data is based on Basel I rules. For further discussion of the implementation of Basel III, see Regulatory capital on pages 161-165 of the 2013 Annual Report. |
(b) | The Tier 1 common capital ratio is Tier 1 common capital divided by risk-weighted assets. Management, bank regulators, investors and analysts use Tier 1 common capital along with the other capital measures to assess and monitor the Firm’s capital position. Prior to Basel III becoming effective on January 1, 2014, Tier 1 common capital was a non-GAAP financial measure. For further discussion of the Tier 1 common capital ratio, see page 35. |
(c) | Adjusted average assets, for purposes of calculating the leverage ratio, includes total quarterly average assets adjusted for unrealized gains/(losses) on securities, less deductions for disallowed goodwill and other intangible assets, investments in certain subsidiaries, and the total adjusted carrying value of nonfinancial equity investments that are subject to deductions from Tier 1 capital. |
(d) | For further discussion of TCE, see page 35. |
(e) | Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted against goodwill and other intangibles when calculating TCE. |
(f) | Estimated. |
(g) | At March 31, 2014, TruPS included in Basel III Tier 1 capital were $2.7 billion. |
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JPMORGAN CHASE & CO. | ![]() | ||||||||||||||||||||||||||
PER SHARE-RELATED INFORMATION | |||||||||||||||||||||||||||
(in millions, except per share and ratio data) | |||||||||||||||||||||||||||
QUARTERLY TRENDS | |||||||||||||||||||||||||||
1Q14 Change | |||||||||||||||||||||||||||
1Q14 | 4Q13 | 3Q13 | 2Q13 | 1Q13 | 4Q13 | 1Q13 | |||||||||||||||||||||
EARNINGS PER SHARE DATA | |||||||||||||||||||||||||||
Basic earnings per share: | |||||||||||||||||||||||||||
Net income/(loss) | $ | 5,274 | $ | 5,278 | $ | (380 | ) | $ | 6,496 | $ | 6,529 | - | % | (19 | ) | % | |||||||||||
Less: Preferred stock dividends | 227 | 190 | 229 | 204 | 182 | 19 | 25 | ||||||||||||||||||||
Net income/(loss) applicable to common equity | 5,047 | 5,088 | (609 | ) | 6,292 | 6,347 | (1 | ) | (20 | ) | |||||||||||||||||
Less: Dividends and undistributed earnings allocated to | |||||||||||||||||||||||||||
participating securities | 149 | 150 | 41 | (f) | 191 | 216 | (1 | ) | (31 | ) | |||||||||||||||||
Net income/(loss) applicable to common stockholders | $ | 4,898 | $ | 4,938 | $ | (650 | ) | $ | 6,101 | $ | 6,131 | (1 | ) | (20 | ) | ||||||||||||
Total weighted-average basic shares outstanding | 3,787.2 | 3,762.1 | 3,767.0 | 3,782.4 | 3,818.2 | 1 | (1 | ) | |||||||||||||||||||
Net income/(loss) per share | $ | 1.29 | $ | 1.31 | $ | (0.17 | ) | $ | 1.61 | $ | 1.61 | (2 | ) | (20 | ) | ||||||||||||
Diluted earnings per share: | |||||||||||||||||||||||||||
Net income/(loss) applicable to common stockholders | $ | 4,898 | $ | 4,938 | $ | (650 | ) | $ | 6,101 | $ | 6,131 | (1 | ) | (20 | ) | ||||||||||||
Total weighted-average basic shares outstanding | 3,787.2 | 3,762.1 | 3,767.0 | 3,782.4 | 3,818.2 | 1 | (1 | ) | |||||||||||||||||||
Add: Employee stock options, SARs and warrants (a) | 36.4 | 35.0 | — | (g) | 31.9 | 28.8 | 4 | 26 | |||||||||||||||||||
Total weighted-average diluted shares outstanding (b) | 3,823.6 | 3,797.1 | 3,767.0 | 3,814.3 | 3,847.0 | 1 | (1 | ) | |||||||||||||||||||
Net income/(loss) per share | $ | 1.28 | $ | 1.30 | $ | (0.17 | ) | $ | 1.60 | $ | 1.59 | (2 | ) | (19 | ) | ||||||||||||
COMMON SHARES OUTSTANDING | |||||||||||||||||||||||||||
Common shares - at period end | 3,784.7 | 3,756.1 | 3,759.2 | 3,769.0 | 3,789.8 | 1 | - | ||||||||||||||||||||
Cash dividends declared per share | $ | 0.38 | $ | 0.38 | $ | 0.38 | $ | 0.38 | (h) | $ | 0.30 | - | 27 | ||||||||||||||
Book value per share | 54.05 | 53.25 | 52.01 | 52.48 | 52.02 | 2 | 4 | ||||||||||||||||||||
Tangible book value per share (c) | 41.73 | 40.81 | 39.51 | 39.97 | 39.54 | 2 | 6 | ||||||||||||||||||||
Dividend payout ratio | 29 | % | 29 | % | NM | % | 23 | % | 19 | % | |||||||||||||||||
SHARE PRICE (d) | |||||||||||||||||||||||||||
High | $ | 61.48 | $ | 58.55 | $ | 56.93 | $ | 55.90 | $ | 51.00 | 5 | 21 | |||||||||||||||
Low | 54.20 | 50.25 | 50.06 | 46.05 | 44.20 | 8 | 23 | ||||||||||||||||||||
Close | 60.71 | 58.48 | 51.69 | 52.79 | 47.46 | 4 | 28 | ||||||||||||||||||||
Market capitalization | 229,770 | 219,657 | 194,312 | 198,966 | 179,863 | 5 | 28 | ||||||||||||||||||||
COMMON EQUITY REPURCHASE PROGRAM (e) | |||||||||||||||||||||||||||
Aggregate common equity repurchased | $ | 385.9 | $ | 298.7 | $ | 739.7 | $ | 1,171.9 | $ | 2,578.3 | 29 | (85 | ) | ||||||||||||||
Common equity repurchased | 6.7 | 5.5 | 13.6 | 23.5 | 53.5 | 22 | (87 | ) | |||||||||||||||||||
Average purchase price | $ | 57.31 | $ | 54.27 | $ | 54.30 | $ | 50.01 | $ | 48.16 | 6 | 19 | |||||||||||||||
(a) | Excluded from the computation of diluted EPS (due to the antidilutive effect) were options issued under employee benefit plans and the warrants originally issued in 2008 under the U.S. Treasury's Capital Purchase Program to purchase shares of the Firm's common stock. The aggregate number of shares issuable upon the exercise of such options and warrants was 1 million, 1 million, 8 million and 13 million for the three months ended March 31, 2014, December 31, 2013, June 30, 2013 and March 31, 2013, respectively. |
(b) | Participating securities were included in the calculation of diluted EPS using the two-class method, as this computation was more dilutive than the calculation using the treasury stock method. |
(c) | Tangible book value per share is a non-GAAP financial measure. Tangible book value per share represents tangible common equity divided by period-end common shares. For further discussion of this measure, see page 42. |
(d) | For additional information on the listing and trading of common stock, see footnote (c) page 2. |
(e) | On March 26, 2014, the Firm announced that following the Board of Governors of the Federal Reserve System (“Federal Reserve”) release of the 2014 CCAR results, JPMorgan Chase & Co. is authorized to repurchase $6.5 billion of common equity between April 1, 2014 and March 31, 2015. Such repurchases will be done pursuant to the $15.0 billion common equity (i.e., common stock and warrants) repurchase program previously authorized by the Firm on March 13, 2012. |
(f) | Due to the net loss applicable to common equity during the three months ended September 30, 2013, dividends were only deemed to be distributed to participating security holders, and such security holders do not share in losses. Net losses were completely allocated to common stockholders. |
(g) | Due to the net loss applicable to common stockholders during the three months ended September 30, 2013, no common equivalent shares have been included in the computation of diluted earnings per share for the period as the effect would be antidilutive. |
(h) | On May 21, 2013, the Board of Directors increased the quarterly common stock dividend from $0.30 to $0.38 per share. |
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JPMORGAN CHASE & CO. | ![]() | |||||||||||||
NON-GAAP FINANCIAL MEASURES | ||||||||||||||
The following are several of the non-GAAP measures that the Firm uses for various reasons, including: (i) to allow management to assess the comparability of revenue arising from both taxable and tax-exempt sources, (ii) to assess and compare the quality and composition of the Firm's capital with the capital of other financial services companies, and (iii) more generally, to provide a more meaningful measure of certain metrics that enables comparability with prior periods, as well as with competitors.
(a) | In addition to analyzing the Firm's results on a reported basis, management reviews the Firm's consolidated results and the results of the lines of business on a “managed” basis. The definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total consolidated net revenue for the Firm (and total net revenue for each of the business segments) on a FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. This non-GAAP financial measure allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on consolidated net income/(loss) as reported by the Firm or net income/(loss) as reported by the lines of business. |
(b) | The ratio of the allowance for loan losses to period-end loans excludes the following: loans accounted for at fair value and loans held-for-sale; purchased credit-impaired (“PCI”) loans; and the allowance for loan losses related to PCI loans. Additionally, Real Estate Portfolios net charge-offs and net charge-off rates exclude the impact of PCI loans. The ratio of the wholesale allowance for loan losses to period-end loans retained, excluding trade finance and conduits, is calculated excluding loans accounted for at fair value, loans held-for-sale, CIB's trade finance loans and consolidated Firm-administered multi-seller conduits, as well as their related allowances, to provide a more meaningful assessment of the wholesale allowance coverage ratio. |
(c) | Tangible common equity (“TCE”), ROTCE, Tangible book value per share ("TBVPS"), and Tier 1 common capital under Basel I rules. TCE represents common stockholders' equity (i.e., total stockholders' equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures consolidated earnings as a percentage of average TCE. TBVPS represents the Firm's tangible common equity divided by period-end common shares. Tier 1 common capital and the Tier 1 common ratio under Basel I rules, along with other capital measures, are used by management, bank regulators, investors and analysts to assess and monitor the Firm's capital position. TCE, ROTCE, and TBVPS are meaningful to management, as well as investors and analysts, in assessing the Firm's use of equity. For additional information on Tier 1 common under Basel I and III, see Regulatory capital on pages 161-165 of the 2013 Annual Report. All of the aforementioned measures are useful to the Firm, as well as analysts and investors, in facilitating comparisons of the Firm with competitors. |
(d) | Corporate & Investment Bank provides several non-GAAP financial measures, as such measures are used by management to assess the underlying performance of the business and for comparability with peers: |
• | The ratio for the allowance for loan losses to end-of-period loans is calculated excluding the impact of consolidated Firm-administered multi-seller conduits and trade finance loans, to provide a more meaningful assessment of CIB’s allowance coverage ratio. |
• | Prior to January 1, 2014, the CIB provided several non-GAAP financial measures excluding the impact of FVA (effective fourth quarter 2013) and DVA on: net revenue, net income, compensation ratio and return on equity. Beginning in the first quarter 2014, the Firm did not exclude FVA and DVA from its assessment of business performance; however, the Firm continued to present these non-GAAP measures for the periods prior to January 1, 2014, as they reflected how management assessed the underlying business performance of the CIB in those prior periods. |
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