JPMORGAN CHASE & CO - FORM 8-K - EX-99.2 - EARNINGS RELEASE FINANCIAL SUPPLEMENT - 2Q16

Attached files

file	filename
EX-99.1 - EARNINGS RELEASE - 2Q16 - JPMORGAN CHASE & CO	a2q16erfexhibit991narrative.htm
EX-12.2 - RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS - 2Q16 - JPMORGAN CHASE & CO	a2q16erfexhibit122.htm
EX-12.1 - RATIO OF EARNINGS TO FIXED CHARGES - 2Q16 - JPMORGAN CHASE & CO	a2q16erfexhibit121.htm
8-K - 8-K - JPMORGAN CHASE & CO	a2q16erf8kcover.htm

EARNINGS RELEASE FINANCIAL SUPPLEMENT

SECOND QUARTER 2016



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
Reconciliation from Reported to Managed Basis							7
Segment Results - Managed Basis							8
Capital and Other Selected Balance Sheet Items							9
Earnings Per Share and Related Information							10

Business Segment Results
Consumer & Community Banking							11–14
Corporate & Investment Bank							15–17
Commercial Banking							18–19
Asset Management							20–22
Corporate							23

Credit-Related Information							24–27

Non-GAAP Financial Measures, Key Performance Measures and Other Notes							28
Glossary of Terms (a)


(a)	Refer to the Glossary of Terms on pages 311–315 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2015 (the “2015 Annual Report”) and the Glossary of Terms and Line of Business Metrics on pages 151–157 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016.



JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share and ratio data)

	QUARTERLY TRENDS																				SIX MONTHS ENDED JUNE 30,
																	2Q16 Change											2016 Change
SELECTED INCOME STATEMENT DATA	2Q16				1Q16			4Q15			3Q15			2Q15			1Q16		2Q15		2016				2015			2015
Reported Basis
Total net revenue	$	24,380			$	23,239		$	22,885		$	22,780		$	23,812		5	%	2	%	$	47,619			$	47,878		(1	)%
Total noninterest expense	13,638				13,837			14,263			15,368			14,500			(1	)	(6	)	27,475				29,383			(6	)
Pre-provision profit	10,742				9,402			8,622			7,412			9,312			14		15		20,144				18,495			9
Provision for credit losses	1,402				1,824			1,251			682			935			(23	)	50		3,226				1,894			70
NET INCOME	6,200				5,520			5,434			6,804			6,290			12		(1	)	11,720				12,204			(4	)

Managed Basis (a)
Total net revenue	25,214				24,083			23,747			23,535			24,531			5		3		49,297				49,351			—
Total noninterest expense	13,638				13,837			14,263			15,368			14,500			(1	)	(6	)	27,475				29,383			(6	)
Pre-provision profit	11,576				10,246			9,484			8,167			10,031			13		15		21,822				19,968			9
Provision for credit losses	1,402				1,824			1,251			682			935			(23	)	50		3,226				1,894			70
NET INCOME	6,200				5,520			5,434			6,804			6,290			12		(1	)	11,720				12,204			(4	)

EARNINGS PER SHARE DATA
Net income: Basic	$	1.56			$	1.36		$	1.34		$	1.70		$	1.56		15		—		$	2.92			$	3.02		(3	)
Diluted	1.55				1.35			1.32			1.68			1.54			15		1		2.89				2.99			(3	)
Average shares: Basic	3,635.8				3,669.9			3,674.2			3,694.4			3,707.8			(1	)	(2	)	3,652.9				3,716.6			(2	)
Diluted	3,666.5				3,696.9			3,704.6			3,725.6			3,743.6			(1	)	(2	)	3,681.7				3,750.5			(2	)

MARKET AND PER COMMON SHARE DATA
Market capitalization	$	224,449			$	216,547		$	241,899		$	224,438		$	250,581		4		(10	)	$	224,449			$	250,581		(10	)
Common shares at period-end	3,612.0				3,656.7			3,663.5			3,681.1			3,698.1			(1	)	(2	)	3,612.0				3,698.1			(2	)
Closing share price (b)	$	62.14			$	59.22		$	66.03		$	60.97		$	67.76		5		(8	)	$	62.14			$	67.76		(8	)
Book value per share	62.67				61.28			60.46			59.67			58.49			2		7		62.67				58.49			7
Tangible book value per share (c)	50.21				48.96			48.13			47.36			46.13			3		9		50.21				46.13			9
Cash dividends declared per share	0.48			(g)	0.44			0.44			0.44			0.44			9		9		0.92			(g)	0.84			10

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)	10		%		9		%	9		%	12		%	11		%					10		%		11		%
Return on tangible common equity (“ROTCE”) (c)	13				12			11			15			14							12				14
Return on assets	1.02				0.93			0.90			1.11			1.01							0.97				0.97

High quality liquid assets (“HQLA”) (in billions) (e)	$	516		(h)	$	505		$	496		$	505		$	532		2		(3	)	$	516		(h)	$	532		(3	)

CAPITAL RATIOS (f)
Common equity Tier 1 (“CET1”) capital ratio	12.0		%	(h)	11.9		%	11.8		%	11.5		%	11.2		%					12.0		%	(h)	11.2		%
Tier 1 capital ratio	13.6			(h)	13.5			13.5			13.3			12.8							13.6			(h)	12.8
Total capital ratio	15.2			(h)	15.1			15.1			14.9			14.4							15.2			(h)	14.4
Tier 1 leverage ratio	8.5			(h)	8.6			8.5			8.4			8.0							8.5			(h)	8.0

Note: Effective January 1, 2016, the Firm adopted new accounting guidance related to (1) the recognition and measurement of debit valuation adjustments (“DVA”) on financial liabilities where the fair value option has been elected, and (2) the accounting for share-based payments. For additional information, see Notes 1 and 2 on page 28.


(a)	For a further discussion of managed basis, see Reconciliation from Reported to Managed Basis on page 7.


(b)	Share price shown is from the New York Stock Exchange.


(c)	Tangible book value per share and ROTCE are key financial performance measures. Tangible book value per share represents tangible common equity (“TCE”) divided by common shares at period-end. ROTCE measures the Firm’s annualized earnings as a percentage of average TCE. For further discussion of these measures, see page 28.


(d)	Quarterly ratios are based upon annualized amounts.


(e)	HQLA represents the amount of assets that qualify for inclusion in the liquidity coverage ratio under the final U.S. rule (“U.S. LCR”). For additional information on HQLA and LCR, see page 160 of the 2015 Annual Report, and page 61 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016.


(f)	Ratios presented are calculated under the Basel III Transitional capital rules and represent the Collins Floor. See footnote (a) on page 9 for additional information on Basel III and the Collins Floor.


(g)	On May 17, 2016, the Board of Directors increased the quarterly common stock dividend from $0.44 to $0.48 per share.


(h)	Estimated.

Page 2



JPMORGAN CHASE & CO.
CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)

	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q16 Change										2016 Change
	2Q16			1Q16			4Q15			3Q15			2Q15			1Q16		2Q15		2016			2015			2015
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,466,096		$	2,423,808		$	2,351,698		$	2,416,635		$	2,449,098		2	%	1	%	$	2,466,096		$	2,449,098		1	%
Loans:
Consumer, excluding credit card loans	361,305			354,192			344,821			331,969			318,286			2		14		361,305			318,286			14
Credit card loans	131,591			126,090			131,463			126,979			126,025			4		4		131,591			126,025			4
Wholesale loans	379,908			367,031			361,015			350,509			346,936			4		10		379,908			346,936			10
Total Loans	872,804			847,313			837,299			809,457			791,247			3		10		872,804			791,247			10
Core loans (a)	775,813			746,196			732,093			698,988			674,767			4		15		775,813			674,767			15
Core loans (average) (a)	760,721			737,297			715,282			680,224			654,551			3		16		749,009			643,315			16

Deposits:
U.S. offices:
Noninterest-bearing	393,294			383,282			392,721			404,984			432,052			3		(9	)	393,294			432,052			(9	)
Interest-bearing	695,763			695,667			663,004			624,014			611,438			—		14		695,763			611,438			14
Non-U.S. offices:
Noninterest-bearing	20,980			20,913			18,921			20,174			21,777			—		(4	)	20,980			21,777			(4	)
Interest-bearing	220,921			221,954			205,069			223,934			222,065			—		(1	)	220,921			222,065			(1	)
Total deposits	1,330,958			1,321,816			1,279,715			1,273,106			1,287,332			1		3		1,330,958			1,287,332			3

Long-term debt (b)	295,627			290,754			288,651			292,503			286,240			2		3		295,627			286,240			3
Common stockholders’ equity	226,355			224,089			221,505			219,660			216,287			1		5		226,355			216,287			5
Total stockholders’ equity	252,423			250,157			247,573			245,728			241,205			1		5		252,423			241,205			5

Loans-to-deposits ratio	66		%	64		%	65		%	64		%	61		%					66		%	61		%

Headcount	240,046			237,420			234,598			235,678			237,459			1		1		240,046			237,459			1

95% CONFIDENCE LEVEL - TOTAL VaR
Average VaR	$	45		$	54		$	49		$	54		$	42		(17	)	7		$	49		$	43		14

LINE OF BUSINESS NET REVENUE (c)
Consumer & Community Banking	$	11,451		$	11,117		$	11,222		$	10,879		$	11,015		3		4		$	22,568		$	21,719		4
Corporate & Investment Bank	9,165			8,135			7,069			8,168			8,723			13		5		17,300			18,305			(5	)
Commercial Banking	1,817			1,803			1,760			1,644			1,739			1		4		3,620			3,481			4
Asset Management	2,939			2,972			3,045			2,894			3,175			(1	)	(7	)	5,911			6,180			(4	)
Corporate	(158		)	56			651			(50		)	(121		)	NM		(31	)	(102		)	(334		)	69
TOTAL NET REVENUE	$	25,214		$	24,083		$	23,747		$	23,535		$	24,531		5		3		$	49,297		$	49,351		—

LINE OF BUSINESS NET INCOME
Consumer & Community Banking	$	2,656		$	2,490		$	2,407		$	2,630		$	2,533		7		5		$	5,146		$	4,752		8
Corporate & Investment Bank	2,493			1,979			1,748			1,464			2,341			26		6		4,472			4,878			(8	)
Commercial Banking	696			496			550			518			525			40		33		1,192			1,123			6
Asset Management	521			587			507			475			451			(11	)	16		1,108			953			16
Corporate	(166		)	(32		)	222			1,717			440			(419	)	NM		(198		)	498			NM
NET INCOME	$	6,200		$	5,520		$	5,434		$	6,804		$	6,290		12		(1	)	$	11,720		$	12,204		(4	)


(a)	Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, see page 28.


(b)	Included unsecured long-term debt of $220.6 billion, $216.1 billion, $211.8 billion, $214.6 billion and $209.1 billion for the periods ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, respectively.


(c)	For a further discussion of managed basis, see Reconciliation from Reported to Managed Basis on page 7.

Page 3



JPMORGAN CHASE & CO.
CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share and ratio data)

	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q16 Change										2016 Change
REVENUE	2Q16			1Q16			4Q15			3Q15			2Q15			1Q16		2Q15		2016			2015			2015
Investment banking fees	$	1,644		$	1,333		$	1,520		$	1,604		$	1,833		23	%	(10	)%	$	2,977		$	3,627		(18	)%
Principal transactions	2,976			2,679			1,552			2,367			2,834			11		5		5,655			6,489			(13	)
Lending- and deposit-related fees	1,403			1,403			1,450			1,463			1,418			—		(1	)	2,806			2,781			1
Asset management, administration and commissions	3,681			3,624			3,842			3,845			4,015			2		(8	)	7,305			7,822			(7	)
Securities gains	21			51			73			33			44			(59	)	(52	)	72			96			(25	)
Mortgage fees and related income	689			667			556			469			783			3		(12	)	1,356			1,488			(9	)
Card income	1,358			1,301			1,431			1,447			1,615			4		(16	)	2,659			3,046			(13	)
Other income	1,261			801			1,236			628			586			57		115		2,062			1,168			77
Noninterest revenue	13,033			11,859			11,660			11,856			13,128			10		(1	)	24,892			26,517			(6	)
Interest income	13,813			13,552			13,155			12,739			12,514			2		10		27,365			25,079			9
Interest expense	2,466			2,172			1,930			1,815			1,830			14		35		4,638			3,718			25
Net interest income	11,347			11,380			11,225			10,924			10,684			—		6		22,727			21,361			6
TOTAL NET REVENUE	24,380			23,239			22,885			22,780			23,812			5		2		47,619			47,878			(1	)

Provision for credit losses	1,402			1,824			1,251			682			935			(23	)	50		3,226			1,894			70

NONINTEREST EXPENSE
Compensation expense	7,778			7,660			6,693			7,320			7,694			2		1		15,438			15,737			(2	)
Occupancy expense	899			883			947			965			923			2		(3	)	1,782			1,856			(4	)
Technology, communications and equipment expense	1,665			1,618			1,657			1,546			1,499			3		11		3,283			2,990			10
Professional and outside services	1,700			1,548			1,824			1,776			1,768			10		(4	)	3,248			3,402			(5	)
Marketing	672			703			771			704			642			(4	)	5		1,375			1,233			12
Other expense (a)	924			1,425			2,371			3,057			1,974			(35	)	(53	)	2,349			4,165			(44	)
TOTAL NONINTEREST EXPENSE	13,638			13,837			14,263			15,368			14,500			(1	)	(6	)	27,475			29,383			(6	)
Income before income tax expense	9,340			7,578			7,371			6,730			8,377			23		11		16,918			16,601			2
Income tax expense/(benefit) (b)	3,140			2,058			1,937			(74		)	2,087			53		50		5,198			4,397			18
NET INCOME	$	6,200		$	5,520		$	5,434		$	6,804		$	6,290		12		(1	)	$	11,720		$	12,204		(4	)

NET INCOME PER COMMON SHARE DATA
Basic earnings per share	$	1.56		$	1.36		$	1.34		$	1.70		$	1.56		15		—		$	2.92		$	3.02		(3	)
Diluted earnings per share	1.55			1.35			1.32			1.68			1.54			15		1		2.89			2.99			(3	)

FINANCIAL RATIOS
Return on common equity (c)	10		%	9		%	9		%	12		%	11		%					10		%	11		%
Return on tangible common equity (c)(d)	13			12			11			15			14							12			14
Return on assets (c)	1.02			0.93			0.90			1.11			1.01							0.97			0.97
Effective income tax rate (b)	33.6			27.2			26.3			(1.1		)	24.9							30.7			26.5
Overhead ratio	56			60			62			67			61							58			61

See notes 1 and 2 on page 28.


(a)	Included Firmwide legal expense/(benefit) of $(430) million, $(46) million, $644 million, $1.3 billion and $291 million for the three months ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, respectively; and $(476) million and $978 million for the six months ended June 30, 2016, and 2015, respectively.


(b)	The three months ended September 30, 2015 reflected tax benefits of $2.2 billion, which reduced the Firm’s effective tax rate by 32.0%. The recognition of tax benefits in 2015 resulted from the resolution of various tax audits, as well as the release of U.S. deferred taxes associated with the restructuring of certain non-U.S. entities.


(c)	Quarterly ratios are based upon annualized amounts.


(d)	For further discussion of ROTCE, see page 28.

Page 4



JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
																Jun 30, 2016
																Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,		Jun 30,
	2016			2016			2015			2015			2015			2016		2015
ASSETS
Cash and due from banks	$	19,710		$	18,212		$	20,490		$	21,258		$	24,095		8	%	(18	)%
Deposits with banks	345,595			360,196			340,015			376,196			398,807			(4	)	(13	)
Federal funds sold and securities purchased under
resale agreements	237,267			223,220			212,575			218,467			212,850			6		11
Securities borrowed	103,225			102,937			98,721			105,668			98,528			—		5
Trading assets:
Debt and equity instruments	302,347			295,944			284,162			293,040			310,419			2		(3	)
Derivative receivables	78,446			70,209			59,677			68,668			67,451			12		16
Securities	278,610			285,323			290,827			306,660			317,795			(2	)	(12	)
Loans	872,804			847,313			837,299			809,457			791,247			3		10
Less: Allowance for loan losses	14,227			13,994			13,555			13,466			13,915			2		2
Loans, net of allowance for loan losses	858,577			833,319			823,744			795,991			777,332			3		10
Accrued interest and accounts receivable	64,911			57,649			46,605			57,926			69,642			13		(7	)
Premises and equipment	14,262			14,195			14,362			14,709			15,073			—		(5	)
Goodwill	47,303			47,310			47,325			47,405			47,476			—		—
Mortgage servicing rights	5,072			5,658			6,608			6,716			7,571			(10	)	(33	)
Other intangible assets	917			940			1,015			1,036			1,091			(2	)	(16	)
Other assets	109,854			108,696			105,572			102,895			100,968			1		9
TOTAL ASSETS	$	2,466,096		$	2,423,808		$	2,351,698		$	2,416,635		$	2,449,098		2		1

LIABILITIES
Deposits	$	1,330,958		$	1,321,816		$	1,279,715		$	1,273,106		$	1,287,332		1		3
Federal funds purchased and securities loaned or sold
under repurchase agreements	166,044			160,999			152,678			180,319			180,897			3		(8	)
Commercial paper	17,279			17,490			15,562			19,656			42,238			(1	)	(59	)
Other borrowed funds	19,945			19,703			21,105			27,174			30,061			1		(34	)
Trading liabilities:
Debt and equity instruments	101,194			87,963			74,107			84,334			80,396			15		26
Derivative payables	57,764			59,319			52,790			57,140			59,026			(3	)	(2	)
Accounts payable and other liabilities	184,635			176,934			177,638			187,986			191,749			4		(4	)
Beneficial interests issued by consolidated VIEs	40,227			38,673			41,879			48,689			49,954			4		(19	)
Long-term debt	295,627			290,754			288,651			292,503			286,240			2		3
TOTAL LIABILITIES	2,213,673			2,173,651			2,104,125			2,170,907			2,207,893			2		—

STOCKHOLDERS’ EQUITY
Preferred stock	26,068			26,068			26,068			26,068			24,918			—		5
Common stock	4,105			4,105			4,105			4,105			4,105			—		—
Additional paid-in capital	91,974			91,782			92,500			92,316			92,204			—		—
Retained earnings	153,749			149,730			146,420			143,050			138,294			3		11
Accumulated other comprehensive income	1,618			782			192			751			1,102			107		47
Shares held in RSU Trust, at cost	(21		)	(21		)	(21		)	(21		)	(21		)	—		—
Treasury stock, at cost	(25,070		)	(22,289		)	(21,691		)	(20,541		)	(19,397		)	(12	)	(29	)
TOTAL STOCKHOLDERS’ EQUITY	252,423			250,157			247,573			245,728			241,205			1		5
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,466,096		$	2,423,808		$	2,351,698		$	2,416,635		$	2,449,098		2		1

See notes 1 and 2 on page 28.

Page 5



JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
	QUARTERLY TRENDS																								SIX MONTHS ENDED JUNE 30,
																					2Q16 Change												2016 Change
AVERAGE BALANCES	2Q16				1Q16				4Q15				3Q15				2Q15				1Q16		2Q15		2016				2015				2015
ASSETS
Deposits with banks	$	379,001			$	364,200			$	382,098			$	413,038			$	437,776			4	%	(13	)%	$	371,600			$	458,862			(19	)%
Federal funds sold and securities purchased under
resale agreements	201,871				204,992				202,205				201,673				205,352				(2	)	(2	)	203,433				211,415				(4	)
Securities borrowed	101,669				103,461				104,672				98,193				107,178				(2	)	(5	)	102,565				109,177				(6	)
Trading assets - debt instruments	215,780				208,315				204,365				202,388				208,823				4		3		212,047				209,443				1
Securities	280,041				284,488				297,648				307,364				323,941				(2	)	(14	)	282,265				329,423				(14	)
Loans	859,727				840,526				823,057				793,584				774,205				2		11		850,126				765,967				11
Other assets (a)	41,436				38,001				37,012				40,650				40,362				9		3		39,718				38,791				2
Total interest-earning assets	2,079,525				2,043,983				2,051,057				2,056,890				2,097,637				2		(1	)	2,061,754				2,123,078				(3	)
Trading assets - equity instruments	99,626				85,280				95,609				96,868				117,638				17		(15	)	92,453				114,893				(20	)
Trading assets - derivative receivables	69,823				70,651				66,043				69,646				73,805				(1	)	(5	)	70,237				78,825				(11	)
All other noninterest-earning assets	192,215				195,007				195,544				197,812				204,753				(1	)	(6	)	193,611				208,195				(7	)
TOTAL ASSETS	$	2,441,189			$	2,394,921			$	2,408,253			$	2,421,216			$	2,493,833			2		(2	)	$	2,418,055			$	2,524,991			(4	)
LIABILITIES
Interest-bearing deposits	$	915,295			$	884,082			$	864,878			$	852,219			$	869,523			4		5		$	899,689			$	886,828			1
Federal funds purchased and securities loaned or
sold under repurchase agreements	176,855				171,246				181,995				188,006				200,054				3		(12	)	174,050				200,145				(13	)
Commercial paper	17,462				17,537				17,952				26,167				49,020				—		(64	)	17,499				54,486				(68	)
Trading liabilities - debt, short-term and other liabilities (b)	200,141				196,233				196,154				198,876				213,246				2		(6	)	198,187				218,275				(9	)
Beneficial interests issued by consolidated VIEs	38,411				39,839				44,774				49,808				51,600				(4	)	(26	)	39,125				51,142				(23	)
Long-term debt	291,726				288,160				290,083				288,413				282,262				1		3		289,943				280,561				3
Total interest-bearing liabilities	1,639,890				1,597,097				1,595,836				1,603,489				1,665,705				3		(2	)	1,618,493				1,691,437				(4	)
Noninterest-bearing deposits	400,671				399,186				412,575				418,742				429,622				—		(7	)	399,929				430,898				(7	)
Trading liabilities - equity instruments	20,747				18,504				16,806				17,595				16,528				12		26		19,625				17,365				13
Trading liabilities - derivative payables	54,048				60,591				57,053				61,754				64,249				(11	)	(16	)	57,319				70,116				(18	)
All other noninterest-bearing liabilities	75,336				71,914				80,366				76,895				80,515				5		(6	)	73,626				79,968				(8	)
TOTAL LIABILITIES	2,190,692				2,147,292				2,162,636				2,178,475				2,256,619				2		(3	)	2,168,992				2,289,784				(5	)
Preferred stock	26,068				26,068				26,068				25,718				23,476				—		11		26,068				22,158				18
Common stockholders’ equity	224,429				221,561				219,549				217,023				213,738				1		5		222,995				213,049				5
TOTAL STOCKHOLDERS’ EQUITY	250,497				247,629				245,617				242,741				237,214				1		6		249,063				235,207				6
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,441,189			$	2,394,921			$	2,408,253			$	2,421,216			$	2,493,833			2		(2	)	$	2,418,055			$	2,524,991			(4	)

AVERAGE RATES (c)
INTEREST-EARNING ASSETS
Deposits with banks	0.49			%	0.51			%	0.32			%	0.28			%	0.29			%					0.50			%	0.29			%
Federal funds sold and securities purchased under
resale agreements	1.15				1.09				0.83				0.85				0.66								1.12				0.70
Securities borrowed (d)	(0.38		)		(0.36		)		(0.51		)		(0.48		)		(0.59		)						(0.37		)		(0.52		)
Trading assets - debt instruments	3.50				3.31				3.16				3.04				3.37								3.41				3.38
Securities	2.95				2.98				3.11				2.85				2.77								2.96				2.79
Loans	4.22				4.26				4.20				4.24				4.21								4.24				4.24
Other assets (a)	2.06				2.04				1.71				1.67				1.74								2.05				1.66
Total interest-earning assets	2.73				2.72				2.60				2.51				2.44								2.73				2.43

INTEREST-BEARING LIABILITIES
Interest-bearing deposits	0.14				0.15				0.13				0.14				0.14								0.14				0.15
Federal funds purchased and securities loaned or
sold under repurchase agreements	0.64				0.61				0.36				0.34				0.29								0.63				0.29
Commercial paper	0.88				0.75				0.49				0.35				0.25								0.82				0.24
Trading liabilities - debt, short-term and other liabilities (b)	0.63				0.47				0.33				0.26				0.32								0.55				0.30
Beneficial interests issued by consolidated VIEs	1.24				1.14				0.99				0.92				0.85								1.19				0.82
Long-term debt	1.92				1.70				1.62				1.50				1.52								1.81				1.55
Total interest-bearing liabilities	0.60				0.55				0.48				0.45				0.44								0.58				0.44

INTEREST RATE SPREAD	2.13			%	2.17			%	2.12			%	2.06			%	2.00			%					2.15			%	1.99			%
NET YIELD ON INTEREST-EARNING ASSETS	2.25			%	2.30			%	2.23			%	2.16			%	2.09			%					2.28			%	2.08			%


(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 a result of increased client-driven demand for certain securities combined with the impact of low interest rates; this is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense and reported within trading liabilities - debt, short-term and other liabilities.

Page 6

JPMORGAN CHASE & CO.

RECONCILIATION FROM REPORTED TO MANAGED BASIS

(in millions, except ratios)

The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the U.S. (“U.S. GAAP”). That presentation, which is referred to as “reported” basis, provides the reader with an understanding of the Firm’s results that can be tracked consistently from year-to-year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results, including the overhead ratio, and the results of the lines of business on a “managed” basis, which are non-GAAP financial measures. For additional information on managed basis, refer to the notes on Non-GAAP Financial Measures on page 28.

The following summary table provides a reconciliation from reported U.S. GAAP results to managed basis.



	QUARTERLY TRENDS																				SIX MONTHS ENDED JUNE 30,
																	2Q16 Change										2016 Change
	2Q16			1Q16			4Q15			3Q15				2Q15			1Q16		2Q15		2016			2015			2015
OTHER INCOME
Other income - reported	$	1,261		$	801		$	1,236		$	628			$	586		57	%	115	%	$	2,062		$	1,168		77	%
Fully taxable-equivalent adjustments (a)	529			551			575			477				447			(4	)	18		1,080			928			16
Other income - managed	$	1,790		$	1,352		$	1,811		$	1,105			$	1,033		32		73		$	3,142		$	2,096		50

TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported	$	13,033		$	11,859		$	11,660		$	11,856			$	13,128		10		(1	)	$	24,892		$	26,517		(6	)
Fully taxable-equivalent adjustments (a)	529			551			575			477				447			(4	)	18		1,080			928			16
Total noninterest revenue - managed	$	13,562		$	12,410		$	12,235		$	12,333			$	13,575		9		—		$	25,972		$	27,445		(5	)

NET INTEREST INCOME
Net interest income - reported	$	11,347		$	11,380		$	11,225		$	10,924			$	10,684		—		6		$	22,727		$	21,361		6
Fully taxable-equivalent adjustments (a)	305			293			287			278				272			4		12		598			545			10
Net interest income - managed	$	11,652		$	11,673		$	11,512		$	11,202			$	10,956		—		6		$	23,325		$	21,906		6

TOTAL NET REVENUE
Total net revenue - reported	$	24,380		$	23,239		$	22,885		$	22,780			$	23,812		5		2		$	47,619		$	47,878		(1	)
Fully taxable-equivalent adjustments (a)	834			844			862			755				719			(1	)	16		1,678			1,473			14
Total net revenue - managed	$	25,214		$	24,083		$	23,747		$	23,535			$	24,531		5		3		$	49,297		$	49,351		—

PRE-PROVISION PROFIT
Pre-provision profit - reported	$	10,742		$	9,402		$	8,622		$	7,412			$	9,312		14		15		$	20,144		$	18,495		9
Fully taxable-equivalent adjustments (a)	834			844			862			755				719			(1	)	16		1,678			1,473			14
Pre-provision profit - managed	$	11,576		$	10,246		$	9,484		$	8,167			$	10,031		13		15		$	21,822		$	19,968		9

INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported	$	9,340		$	7,578		$	7,371		$	6,730			$	8,377		23		11		$	16,918		$	16,601		2
Fully taxable-equivalent adjustments (a)	834			844			862			755				719			(1	)	16		1,678			1,473			14
Income before income tax expense - managed	$	10,174		$	8,422		$	8,233		$	7,485			$	9,096		21		12		$	18,596		$	18,074		3

INCOME TAX EXPENSE
Income tax expense/(benefit) - reported	$	3,140		$	2,058		$	1,937		$	(74	)		$	2,087		53		50		$	5,198		$	4,397		18
Fully taxable-equivalent adjustments (a)	834			844			862			755				719			(1	)	16		1,678			1,473			14
Income tax expense - managed	$	3,974		$	2,902		$	2,799		$	681			$	2,806		37		42		$	6,876		$	5,870		17

OVERHEAD RATIO
Overhead ratio - reported	56		%	60		%	62		%	67			%	61		%					58		%	61		%
Overhead ratio - managed	54			57			60			65				59							56			60

See notes 1 and 2 on page 28.


(a)	Predominantly recognized in the CIB and Commercial Banking (“CB”) business segments and Corporate.

Page 7



JPMORGAN CHASE & CO.
SEGMENT RESULTS - MANAGED BASIS
(in millions)


	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q16 Change										2016 Change
	2Q16			1Q16			4Q15			3Q15			2Q15			1Q16		2Q15		2016			2015			2015
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking	$	11,451		$	11,117		$	11,222		$	10,879		$	11,015		3	%	4	%	$	22,568		$	21,719		4	%
Corporate & Investment Bank	9,165			8,135			7,069			8,168			8,723			13		5		17,300			18,305			(5	)
Commercial Banking	1,817			1,803			1,760			1,644			1,739			1		4		3,620			3,481			4
Asset Management	2,939			2,972			3,045			2,894			3,175			(1	)	(7	)	5,911			6,180			(4	)
Corporate	(158		)	56			651			(50		)	(121		)	NM		(31	)	(102		)	(334		)	69
TOTAL NET REVENUE	$	25,214		$	24,083		$	23,747		$	23,535		$	24,531		5		3		$	49,297		$	49,351		—

TOTAL NONINTEREST EXPENSE
Consumer & Community Banking	$	6,004		$	6,088		$	6,272		$	6,237		$	6,210		(1	)	(3	)	$	12,092		$	12,400		(2	)
Corporate & Investment Bank	5,078			4,808			4,436			6,131			5,137			6		(1	)	9,886			10,794			(8	)
Commercial Banking	731			713			750			719			703			3		4		1,444			1,412			2
Asset Management	2,098			2,075			2,196			2,109			2,406			1		(13	)	4,173			4,581			(9	)
Corporate	(273		)	153			609			172			44			NM		NM		(120		)	196			NM
TOTAL NONINTEREST EXPENSE	$	13,638		$	13,837		$	14,263		$	15,368		$	14,500		(1	)	(6	)	$	27,475		$	29,383		(6	)

PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking	$	5,447		$	5,029		$	4,950		$	4,642		$	4,805		8		13		$	10,476		$	9,319		12
Corporate & Investment Bank	4,087			3,327			2,633			2,037			3,586			23		14		7,414			7,511			(1	)
Commercial Banking	1,086			1,090			1,010			925			1,036			—		5		2,176			2,069			5
Asset Management	841			897			849			785			769			(6	)	9		1,738			1,599			9
Corporate	115			(97		)	42			(222		)	(165		)	NM		NM		18			(530		)	NM
PRE-PROVISION PROFIT	$	11,576		$	10,246		$	9,484		$	8,167		$	10,031		13		15		$	21,822		$	19,968		9

PROVISION FOR CREDIT LOSSES
Consumer & Community Banking	$	1,201		$	1,050		$	1,038		$	389		$	702		14		71		$	2,251		$	1,632		38
Corporate & Investment Bank	235			459			81			232			50			(49	)	370		694			19			NM
Commercial Banking	(25		)	304			117			82			182			NM		NM		279			243			15
Asset Management	(8		)	13			17			(17		)	—			NM		NM		5			4			25
Corporate	(1		)	(2		)	(2		)	(4		)	1			50		NM		(3		)	(4		)	25
PROVISION FOR CREDIT LOSSES	$	1,402		$	1,824		$	1,251		$	682		$	935		(23	)	50		$	3,226		$	1,894		70

NET INCOME
Consumer & Community Banking	$	2,656		$	2,490		$	2,407		$	2,630		$	2,533		7		5		$	5,146		$	4,752		8
Corporate & Investment Bank	2,493			1,979			1,748			1,464			2,341			26		6		4,472			4,878			(8	)
Commercial Banking	696			496			550			518			525			40		33		1,192			1,123			6
Asset Management	521			587			507			475			451			(11	)	16		1,108			953			16
Corporate	(166		)	(32		)	222			1,717			440			(419	)	NM		(198		)	498			NM
TOTAL NET INCOME	$	6,200		$	5,520		$	5,434		$	6,804		$	6,290		12		(1	)	$	11,720		$	12,204		(4	)

See notes 1 and 2 on page 28.

Page 8



JPMORGAN CHASE & CO.
CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS
(in millions, except ratio data)

																	Jun 30, 2016
																	Change				SIX MONTHS ENDED JUNE 30,
	Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,		Jun 30,						2016 Change
	2016				2016			2015			2015			2015			2016		2015		2016		2015		2015
CAPITAL (a)
Risk-based capital metrics
Standardized Transitional
CET1 capital	$	179,593		(f)	$	177,531		$	175,398		$	173,577		$	169,769		1	%	6	%
Tier 1 capital	204,397			(f)	202,399			200,482			199,211			194,714			1		5
Total capital	239,005			(f)	236,954			234,413			234,377			228,303			1		5
Risk-weighted assets	1,471,554			(f)	1,470,741			1,465,262			1,503,370			1,499,638			—		(2	)
CET1 capital ratio	12.2		%	(f)	12.1		%	12.0		%	11.5		%	11.3		%
Tier 1 capital ratio	13.9			(f)	13.8			13.7			13.3			13.0
Total capital ratio	16.2			(f)	16.1			16.0			15.6			15.2

Advanced Transitional
CET1 capital	$	179,593		(f)	177,531			175,398			173,577			169,769			1		6
Tier 1 capital	204,397			(f)	202,399			200,482			199,211			194,714			1		5
Total capital	227,927			(f)	226,190			224,616			223,877			218,724			1		4
Risk-weighted assets	1,499,904			(f)	1,497,870			1,485,336			1,502,685			1,520,140			—		(1	)
CET1 capital ratio	12.0		%	(f)	11.9		%	11.8		%	11.6		%	11.2		%
Tier 1 capital ratio	13.6			(f)	13.5			13.5			13.3			12.8
Total capital ratio	15.2			(f)	15.1			15.1			14.9			14.4

Leverage-based capital metrics
Adjusted average assets (b)	$	2,391,825		(f)	$	2,345,926		$	2,361,177		$	2,375,317		$	2,447,864		2		(2	)
Tier 1 leverage ratio	8.5		%	(f)	8.6		%	8.5		%	8.4		%	8.0		%
SLR leverage exposure (c)	$	3,096,219		(f)	$	3,047,558		3,079,797			3,116,633			3,223,351			2		(4	)
SLR (c)	6.6		%	(f)	6.6		%	6.5		%	6.4		%	6.0		%

TANGIBLE COMMON EQUITY (period-end) (d)
Common stockholders’ equity	$	226,355			$	224,089		$	221,505		$	219,660		$	216,287		1		5
Less: Goodwill	47,303				47,310			47,325			47,405			47,476			—		—
Less: Other intangible assets	917				940			1,015			1,036			1,091			(2	)	(16	)
Add: Deferred tax liabilities (e)	3,220				3,205			3,148			3,105			2,876			—		12
Total tangible common equity	$	181,355			$	179,044		$	176,313		$	174,324		$	170,596		1		6

TANGIBLE COMMON EQUITY (average) (d)
Common stockholders’ equity	$	224,429			$	221,561		$	219,549		$	217,023		$	213,738		1		5		$	222,995	$	213,049	5
Less: Goodwill	47,309				47,332			47,377			47,428			47,485			—		—		47,320		47,488		—
Less: Other intangible assets	928				985			1,030			1,064			1,113			(6	)	(17	)	957		1,138		(16	)
Add: Deferred tax liabilities (e)	3,213				3,177			3,127			2,991			2,873			1		12		3,195		2,868		11
Total tangible common equity	$	179,405			$	176,421		$	174,269		$	171,522		$	168,013		2		7		$	177,913	$	167,291	6

INTANGIBLE ASSETS (period-end)
Goodwill	$	47,303			$	47,310		$	47,325		$	47,405		$	47,476		—		—
Mortgage servicing rights	5,072				5,658			6,608			6,716			7,571			(10	)	(33	)
Other intangible assets	917				940			1,015			1,036			1,091			(2	)	(16	)
Total intangible assets	$	53,292			$	53,908		$	54,948		$	55,157		$	56,138		(1	)	(5	)

See notes 1 and 2 on page 28.

(a)

Basel III presents two comprehensive methodologies for calculating risk-weighted assets: a Standardized approach and an Advanced approach. As required by the Collins Amendment of the Wall Street Reform and Consumer Protection Act, the capital adequacy of the Firm is evaluated against the Basel III approach (Standardized or Advanced) that results, for each quarter, in the lower ratio (the “Collins Floor”). For further discussion of the implementation of Basel III, see Capital Management on pages 149-158 of the 2015 Annual Report, and on pages 54–60 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016.


(b)	Adjusted average assets, for purposes of calculating leverage ratios, includes total quarterly average assets adjusted for on balance sheet assets that are subject to deduction from Tier 1 capital, predominately goodwill and other intangible assets.


(c)	The supplementary leverage ratio (“SLR”) under Basel III is defined as Tier 1 capital divided by the Firm’s total leverage exposure. Total leverage exposure is calculated by taking the Firm’s adjusted average assets as calculated for the Tier 1 leverage ratio, and adding certain off-balance sheet exposures, such as undrawn commitments and derivatives potential future exposure.


(d)	For further discussion of TCE, see page 28.


(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.

Page 9



JPMORGAN CHASE & CO.
EARNINGS PER SHARE AND RELATED INFORMATION
(in millions, except per share and ratio data)

	QUARTERLY TRENDS																				SIX MONTHS ENDED JUNE 30,
																	2Q16 Change											2016 Change
	2Q16				1Q16			4Q15			3Q15			2Q15			1Q16		2Q15		2016				2015			2015
EARNINGS PER SHARE
Basic earnings per share
Net income	$	6,200			$	5,520		$	5,434		$	6,804		$	6,290		12	%	(1	)%	$	11,720			$	12,204		(4	)%
Less: Preferred stock dividends	411				412			418			393			380			—		8		823				704			17
Net income applicable to common equity	5,789				5,108			5,016			6,411			5,910			13		(2	)	10,897				11,500			(5	)
Less: Dividends and undistributed earnings allocated to
participating securities	123				117			108			141			134			5		(8	)	241				272			(11	)
Net income applicable to common stockholders	$	5,666			$	4,991		$	4,908		$	6,270		$	5,776		14		(2	)	$	10,656			$	11,228		(5	)

Total weighted-average basic shares outstanding	3,635.8				3,669.9			3,674.2			3,694.4			3,707.8			(1	)	(2	)	3,652.9				3,716.6			(2	)
Net income per share	$	1.56			$	1.36		$	1.34		$	1.70		$	1.56		15		—		$	2.92			$	3.02		(3	)

Diluted earnings per share
Net income applicable to common stockholders	$	5,666			$	4,991		$	4,908		$	6,270		$	5,776		14		(2	)	$	10,656			$	11,228		(5	)
Total weighted-average basic shares outstanding	3,635.8				3,669.9			3,674.2			3,694.4			3,707.8			(1	)	(2	)	3,652.9				3,716.6			(2	)
Add: Employee stock options, stock appreciation rights (“SARs”), warrants and performance share units (“PSUs”)	30.7				27.0			30.4			31.2			35.8			14		(14	)	28.8				33.9			(15	)
Total weighted-average diluted shares outstanding	3,666.5				3,696.9			3,704.6			3,725.6			3,743.6			(1	)	(2	)	3,681.7				3,750.5			(2	)
Net income per share	$	1.55			$	1.35		$	1.32		$	1.68		$	1.54		15		1		$	2.89			$	2.99		(3	)

COMMON DIVIDENDS
Cash dividends declared per share	$	0.48		(c)	$	0.44		$	0.44		$	0.44		$	0.44		9		9		$	0.92		(c)	$	0.84		10
Dividend payout ratio	31		%		32		%	33		%	26		%	28		%					31		%		28		%

COMMON EQUITY REPURCHASE PROGRAM (a)
Total shares of common stock repurchased	45.8				29.2			19.0			19.1			19.2			57		139		75.0				51.7			45
Average price paid per share of common stock	$	61.93			$	58.17		$	63.92		$	65.30		$	65.32		6		(5	)	$	60.47			$	60.96		(1	)
Aggregate repurchases of common equity	2,840				1,696			1,219			1,248			1,249			67		127		4,536				3,149			44

EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans	1.2				22.3			1.1			1.9			2.0			(95	)	(40	)	23.5				30.8			(24	)
Net impact of employee issuances on stockholders’ equity (b)	$	250			$	366		$	252		$	248		$	290		(32	)	(14	)	$	616			$	623		(1	)

See notes 1 and 2 on page 28.


(a)	On June 29, 2016, the Firm announced, in connection with the release of its 2016 CCAR results, that it is authorized to repurchase up to $10.6 billion of common equity between July 1, 2016 and June 30, 2017, under a new equity repurchase program authorized by the Board of Directors.


(b)	The net impact of employee issuances on stockholders’ equity is driven by the cost of equity compensation awards that is recognized over the applicable vesting periods. The cost is partially offset by tax impacts related to the distribution of shares and the exercise of employee stock options and SARs.


(c)	On May 17, 2016, the Board of Directors increased the quarterly common stock dividend from $0.44 to $0.48 per share.

Page 10



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q16 Change										2016 Change
	2Q16			1Q16			4Q15			3Q15			2Q15			1Q16		2Q15		2016			2015			2015
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	780		$	769		$	817		$	836		$	766		1	%	2	%	$	1,549		$	1,484		4	%
Asset management, administration and commissions	535			530			524			565			553			1		(3	)	1,065			1,083			(2	)
Mortgage fees and related income	689			667			556			469			782			3		(12	)	1,356			1,486			(9	)
Card income	1,253			1,191			1,326			1,335			1,506			5		(17	)	2,444			2,830			(14	)
All other income	881			649			815			524			482			36		83		1,530			942			62
Noninterest revenue	4,138			3,806			4,038			3,729			4,089			9		1		7,944			7,825			2
Net interest income	7,313			7,311			7,184			7,150			6,926			—		6		14,624			13,894			5
TOTAL NET REVENUE	11,451			11,117			11,222			10,879			11,015			3		4		22,568			21,719			4

Provision for credit losses	1,201			1,050			1,038			389			702			14		71		2,251			1,632			38

NONINTEREST EXPENSE
Compensation expense	2,420			2,382			2,349			2,413			2,478			2		(2	)	4,802			5,008			(4	)
Noncompensation expense (a)	3,584			3,706			3,923			3,824			3,732			(3	)	(4	)	7,290			7,392			(1	)
TOTAL NONINTEREST EXPENSE	6,004			6,088			6,272			6,237			6,210			(1	)	(3	)	12,092			12,400			(2	)

Income before income tax expense	4,246			3,979			3,912			4,253			4,103			7		3		8,225			7,687			7
Income tax expense	1,590			1,489			1,505			1,623			1,570			7		1		3,079			2,935			5
NET INCOME	$	2,656		$	2,490		$	2,407		$	2,630		$	2,533		7		5		$	5,146		$	4,752		8

REVENUE BY LINE OF BUSINESS
Consumer & Business Banking	$	4,616		$	4,550		$	4,587		$	4,555		$	4,483		1		3		$	9,166		$	8,841		4
Mortgage Banking	1,921			1,876			1,680			1,555			1,833			2		5		3,797			3,582			6
Card, Commerce Solutions & Auto	4,914			4,691			4,955			4,769			4,699			5		5		9,605			9,296			3

MORTGAGE FEES AND RELATED INCOME DETAILS:
Net production revenue	261			162			123			176			233			61		12		423			470			(10	)
Net mortgage servicing revenue (b)	428			505			433			293			549			(15	)	(22	)	933			1,016			(8	)
Mortgage fees and related income	$	689		$	667		$	556		$	469		$	782		3		(12	)	$	1,356		$	1,486		(9	)


FINANCIAL RATIOS
ROE	20		%	19		%	18		%	20		%	19		%					19		%	18		%
Overhead ratio	52			55			56			57			56							54			57


(a)	Included operating lease depreciation expense of $460 million, $432 million, $401 million, $372 million and $348 million for the three months ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, respectively, and $892 million and $674 million for the six months ended June 30, 2016, and 2015, respectively.


(b)	Included MSR risk management of $73 million, $129 million, $4 million, $(123) million, and $70 million for the three months ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, respectively, and $202 million and $2 million for the six months ended June 30, 2016 and 2015, respectively.

Page 11



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions)

	QUARTERLY TRENDS														SIX MONTHS ENDED JUNE 30,
											2Q16 Change								2016 Change
	2Q16		1Q16		4Q15		3Q15		2Q15		1Q16		2Q15		2016		2015		2015
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	519,187	$	505,071	$	502,652	$	484,253	$	472,181	3	%	10	%	$	519,187	$	472,181	10	%

Loans:
Consumer & Business Banking	23,588		22,889		22,730		22,346		21,940		3		8		23,588		21,940		8
Home equity	54,569		56,627		58,734		60,849		63,316		(4	)	(14	)	54,569		63,316		(14	)
Residential mortgage and other	178,670		172,413		164,500		153,730		139,814		4		28		178,670		139,814		28
Mortgage Banking	233,239		229,040		223,234		214,579		203,130		2		15		233,239		203,130		15
Credit Card	131,591		126,090		131,463		126,979		126,025		4		4		131,591		126,025		4
Auto	64,056		62,937		60,255		57,174		56,330		2		14		64,056		56,330		14
Student	7,614		7,890		8,176		8,462		8,763		(3	)	(13	)	7,614		8,763		(13	)
Total loans	460,088		448,846		445,858		429,540		416,188		3		11		460,088		416,188		11
Core loans (a)	364,007		348,802		341,881		320,415		301,154		4		21		364,007		301,154		21

Deposits	586,074		582,026		557,645		539,182		530,767		1		10		586,074		530,767		10
Equity	51,000		51,000		51,000		51,000		51,000		—		—		51,000		51,000		—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	512,434	$	503,231	$	494,306	$	478,914	$	463,404	2		11		$	507,833	$	459,108	11

Loans:
Consumer & Business Banking	23,223		22,775		22,445		22,069		21,732		2		7		22,998		21,526		7
Home equity	55,615		57,717		59,757		62,025		64,502		(4	)	(14	)	56,666		65,671		(14	)
Residential mortgage and other	175,753		168,694		160,925		146,432		132,649		4		32		172,224		126,687		36
Mortgage Banking	231,368		226,411		220,682		208,457		197,151		2		17		228,890		192,358		19
Credit Card	128,396		127,299		127,620		126,305		124,539		1		3		127,848		124,780		2
Auto	63,661		61,252		58,692		56,412		55,800		4		14		62,456		55,405		13
Student	7,757		8,034		8,326		8,622		8,907		(3	)	(13	)	7,896		9,057		(13	)
Total loans	454,405		445,771		437,765		421,865		408,129		2		11		450,088		403,126		12
Core loans (a)	356,380		343,705		331,296		309,888		290,330		4		23		350,042		282,498		24

Deposits	583,115		562,284		545,734		535,987		529,448		4		10		572,699		520,850		10
Equity	51,000		51,000		51,000		51,000		51,000		—		—		51,000		51,000		—

Headcount	131,815		129,925		127,094		128,601		132,302		1		—		131,815		132,302		—


(a)	Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, see page 28.

Page 12



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)	QUARTERLY TRENDS																							SIX MONTHS ENDED JUNE 30,
																				2Q16 Change										2016 Change
	2Q16				1Q16				4Q15				3Q15				2Q15			1Q16		2Q15		2016			2015			2015
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)	$	4,980			$	5,117			$	5,313			$	5,433			$	5,876		(3	)%	(15	)%	$	4,980		$	5,876		(15	)%
Net charge-offs/(recoveries) (c)
Consumer & Business Banking	53				56				76				50				68			(5	)	(22	)	109			127			(14	)
Home equity	35				59				45				82				69			(41	)	(49	)	94			156			(40	)
Residential mortgage and other	3				1				14				(41		)		12			200		(75	)	4			29			(86	)
Mortgage Banking	38				60				59				41				81			(37	)	(53	)	98			185			(47	)
Credit Card	860				830				774				759				800			4		8		1,690			1,589			6
Auto	46				67				74				57				32			(31	)	44		113			83			36
Student	29				37				55				58				46			(22	)	(37	)	66			97			(32	)
Total net charge-offs/(recoveries)	$	1,026			$	1,050			$	1,038			$	965			$	1,027		(2	)	—		$	2,076		$	2,081		—
Net charge-off/(recovery) rate (c)
Consumer & Business Banking	0.92		%		0.99		%		1.34		%		0.90		%		1.26		%					0.95		%	1.19		%
Home equity (d)	0.34				0.55				0.40				0.70				0.57							0.45			0.64
Residential mortgage and other (d)	0.01				—				0.04				(0.14		)		0.05							0.01			0.06
Mortgage Banking (d)	0.08				0.13				0.13				0.10				0.21							0.10			0.25
Credit Card (e)	2.70				2.62				2.42				2.41				2.61							2.66			2.61
Auto	0.29				0.44				0.50				0.40				0.23							0.36			0.30
Student	1.50				1.85				2.62				2.67				2.07							1.68			2.16
Total net charge-off/(recovery) rate (d)	0.99				1.04				1.04				1.02				1.14							1.02			1.18

30+ day delinquency rate
Mortgage Banking (f)(g)	1.33			%	1.41			%	1.57			%	1.74			%	1.95		%					1.33		%	1.95		%
Credit Card (h)	1.40				1.45				1.43				1.38				1.29							1.40			1.29
Auto	1.16				0.94				1.35				1.06				0.95							1.16			0.95
Student (i)	1.43				1.41				1.81				1.99				2.00							1.43			2.00
90+ day delinquency rate - Credit Card (h)	0.70				0.75				0.72				0.66				0.63							0.70			0.63

Allowance for loan losses
Consumer & Business Banking	$	703			$	703			$	703			$	703			$	703		—		—		$	703		$	703		—
Mortgage Banking, excluding PCI loans	1,488				1,588				1,588				1,588				1,788			(6	)	(17	)	1,488			1,788			(17	)
Mortgage Banking - PCI loans (c)	2,654				2,695				2,742				2,788				3,215			(2	)	(17	)	2,654			3,215			(17	)
Credit Card	3,684				3,434				3,434				3,434				3,434			7		7		3,684			3,434			7
Auto	449				399				399				374				349			13		29		449			349			29
Student	274				299				299				324				349			(8	)	(21	)	274			349			(21	)
Total allowance for loan losses (c)	$	9,252			$	9,118			$	9,165			$	9,211			$	9,838		1		(6	)	$	9,252		$	9,838		(6	)

Note: CCB provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, see page 28.


(a)	Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.

(b)

At June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, nonaccrual loans excluded loans 90 or more days past due as follows: (1) mortgage loans insured by U.S. government agencies of $5.2 billion, $5.7 billion, $6.3 billion, $6.6 billion and $7.0 billion, respectively; and (2) student loans insured by U.S. government agencies under the Federal Family Education Loan Program ("FFELP") of $252 million, $269 million, $290 million, $289 million and $282 million, respectively. These amounts have been excluded based upon the government guarantee.

(c)

Net charge-offs and the net charge-off rates for the three months ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, excluded $41 million, $47 million, $46 million, $52 million and $55 million, respectively, and for the six months ended June 30, 2016, and 2015 excluded $88 million and $110 million, respectively, of write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans. For further information on PCI write-offs, see Summary of Changes in the Allowances on page 26.

(d)

Excludes the impact of PCI loans. For the three months ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of 0.25%, 0.41%, 0.30%, 0.52% and 0.43%, respectively; (2) residential mortgage and other of 0.01%, –%, 0.03%, (0.11%), and 0.04%, respectively; (3) Mortgage Banking of 0.07%, 0.11%, 0.11%, 0.08% and 0.17%, respectively; and (4) total CCB of 0.91%, 0.95%, 0.94%, 0.91% and 1.01%, respectively. For the six months ended June 30, 2016 and 2015, the net charge-off rates including the impact of PCI loans were as follows: (1) home equity of 0.33% and 0.48%, respectively; (2) residential mortgage and other of –% and 0.05%, respectively; (3) Mortgage Banking of 0.09% and 0.19%, respectively; and (4) total CCB of 0.93% and 1.05%, respectively.

(e)

Average credit card loans included loans held-for-sale of $82 million, $72 million, $717 million, $1.3 billion and $1.8 billion for the three months ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, respectively, and $77 million and $2.2 billion for the six months ended June 30, 2016, and 2015, respectively. These amounts are excluded when calculating the net charge-off rate.


(f)	At June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, excluded mortgage loans insured by U.S. government agencies of $7.2 billion, $7.6 billion, $8.4 billion, $8.5 billion and $8.8 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.


(g)	Excludes PCI loans. The 30+ day delinquency rate for PCI loans was 10.09%, 10.47%, 11.21%, 11.29% and 11.65% at June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, respectively.


(h)	Period-end credit card loans included loans held-for-sale of $84 million, $78 million, $76 million, $1.3 billion and $1.3 billion at June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, respectively. These amounts are excluded when calculating delinquency rates.


(i)	Excluded student loans insured by U.S government agencies under FFELP of $458 million, $471 million, $526 million, $507 million and $546 million at June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.

Page 13



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)

	QUARTERLY TRENDS																								SIX MONTHS ENDED JUNE 30,
																					2Q16 Change												2016 Change
	2Q16				1Q16				4Q15				3Q15				2Q15				1Q16		2Q15		2016				2015				2015
BUSINESS METRICS
Number of:
Branches	5,366				5,385				5,413				5,471				5,504				—	%	(3	)%	5,366				5,504				(3	)%
Active digital customers (in thousands) (a)	42,833				42,458				39,242				38,511				37,878				1		13		42,833				37,878				13
Active mobile customers (in thousands) (b)	24,817				23,821				22,810				22,232				21,001				4		18		24,817				21,001				18	%


Consumer & Business Banking
Average deposits	$	567,415			$	548,447			$	530,611			$	519,414			$	512,844			3		11		$	557,931			$	505,269			10
Deposit margin	1.80			%	1.86			%	1.83			%	1.86			%	1.92			%					1.83			%	1.95			%
Business banking origination volume	$	2,183			$	1,688			$	1,609			$	1,715			$	1,911			29		14		$	3,871			$	3,451			12
Client investment assets	224,741				220,004				218,551				213,263				221,490				2		1		224,741				221,490				1

Mortgage Banking (in billions)
Mortgage origination volume by channel
Retail	$	11.2			$	8.7			$	8.7			$	9.5			$	9.8			29		14		$	19.9			$	17.9			11
Correspondent	13.8				13.7				13.8				20.4				19.5				1		(29	)	27.5				36.1				(24	)
Total mortgage origination volume (c)	$	25.0			$	22.4			$	22.5			$	29.9			$	29.3			12		(15	)	$	47.4			$	54.0			(12	)
Total loans serviced (period-end)	$	880.3			$	898.7			$	910.1			$	929.0			$	917.0			(2	)	(4	)	$	880.3			$	917.0			(4	)
Third-party mortgage loans serviced (period-end)	629.9				655.4				674.0				702.6				723.4				(4	)	(13	)	629.9				723.4				(13	)
MSR carrying value (period-end)	5.1				5.7				6.6				6.7				7.6				(11	)	(33	)	5.1				7.6				(33	)
Ratio of MSR carrying value (period-end) to third-party mortgage
loans serviced (period-end)	0.81			%	0.87			%	0.98			%	0.95			%	1.05			%					0.81			%	1.05			%
MSR revenue multiple (d)	2.31		x		2.49		x		2.97		x		2.79		x		3.00		x						2.31		x		3.00		x

Credit Card, excluding Commercial Card
Sales volume (in billions)	$	136.0			$	121.7			$	130.8			$	126.6			$	125.7			12		8		$	257.7			$	238.5			8
New accounts opened	2.7				2.3				2.5				2.0				2.1				17		29		5.0				4.2				19

Card Services
Net revenue rate	12.28			%	11.81			%	12.54			%	12.22			%	12.35			%					12.04			%	12.27			%

Commerce Solutions
Merchant processing volume (in billions)	$	263.8			$	247.5			$	258.2			$	235.8			$	234.1			7		13		$	511.3			$	455.3			12

Auto
Loan and lease origination volume (in billions)	$	8.5			$	9.6			$	9.2			$	8.1			$	7.8			(11	)	9		$	18.1			$	15.1			20
Average Auto operating lease assets	10,435				9,615				8,794				8,073				7,437				9		40		10,025				7,170				40


(a)	Users of all web and/or mobile platforms who have logged in within the past 90 days.


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


(c)	Firmwide mortgage origination volume was $28.6 billion, $24.4 billion, $24.7 billion, $32.2 billion and $31.7 billion for the three months ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015, respectively, and $53.0 billion and $58.3 billion for the six months ended June 30, 2016, and 2015, respectively.


(d)	Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average).

Page 14



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q16 Change										2016 Change
	2Q16			1Q16			4Q15			3Q15			2Q15			1Q16		2Q15		2016			2015			2015
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,636		$	1,321		$	1,538		$	1,612		$	1,825		24	%	(10	)%	$	2,957		$	3,586		(18	)%
Principal transactions	2,965			2,470			1,396			2,370			2,657			20		12		5,435			6,139			(11	)
Lending- and deposit-related fees	385			394			387			389			400			(2	)	(4	)	779			797			(2	)
Asset management, administration and commissions	1,025			1,069			1,049			1,083			1,181			(4	)	(13	)	2,094			2,335			(10	)
All other income	464			280			268			294			170			66		173		744			450			65
Noninterest revenue	6,475			5,534			4,638			5,748			6,233			17		4		12,009			13,307			(10	)
Net interest income	2,690			2,601			2,431			2,420			2,490			3		8		5,291			4,998			6
TOTAL NET REVENUE (a)	9,165			8,135			7,069			8,168			8,723			13		5		17,300			18,305			(5	)

Provision for credit losses	235			459			81			232			50			(49	)	370		694			19			NM

NONINTEREST EXPENSE
Compensation expense	2,737			2,600			1,860			2,434			2,656			5		3		5,337			5,679			(6	)
Noncompensation expense	2,341			2,208			2,576			3,697			2,481			6		(6	)	4,549			5,115			(11	)
TOTAL NONINTEREST EXPENSE	5,078			4,808			4,436			6,131			5,137			6		(1	)	9,886			10,794			(8	)

Income before income tax expense	3,852			2,868			2,552			1,805			3,536			34		9		6,720			7,492			(10	)
Income tax expense	1,359			889			804			341			1,195			53		14		2,248			2,614			(14	)
NET INCOME	$	2,493		$	1,979		$	1,748		$	1,464		$	2,341		26		6		$	4,472		$	4,878		(8	)

FINANCIAL RATIOS
ROE	15		%	11		%	10		%	8		%	14		%					13		%	15		%
Overhead ratio	55			59			63			75			59							57			59
Compensation expense as a percent of total net revenue	30			32			26			30			30							31			31

REVENUE BY BUSINESS
Investment Banking	$	1,492		$	1,231		$	1,470		$	1,530		$	1,746		21		(15	)	$	2,723		$	3,376		(19	)
Treasury Services	892			884			901			899			901			1		(1	)	1,776			1,831			(3	)
Lending	277			302			390			334			302			(8	)	(8	)	579			737			(21	)
Total Banking	2,661			2,417			2,761			2,763			2,949			10		(10	)	5,078			5,944			(15	)
Fixed Income Markets	3,959			3,597			2,574			2,933			2,931			10		35		7,556			7,085			7
Equity Markets	1,600			1,576			1,064			1,403			1,576			2		2		3,176			3,227			(2	)
Securities Services	907			881			933			915			995			3		(9	)	1,788			1,929			(7	)
Credit Adjustments & Other (b)	38			(336		)	(263		)	154			272			NM		(86	)	(298		)	120			NM
Total Markets & Investor Services	6,504			5,718			4,308			5,405			5,774			14		13		12,222			12,361			(1	)
TOTAL NET REVENUE	$	9,165		$	8,135		$	7,069		$	8,168		$	8,723		13		5		$	17,300		$	18,305		(5	)

(a)

Included tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; as well as tax-exempt income from municipal bonds of $476 million, $498 million, $486 million, $417 million and $396 million for the three months ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, respectively, and $974 million and $828 million for the six months ended June 30, 2016, and 2015, respectively.

(b)

Effective January 1, 2016, consists primarily of credit valuation adjustments (“CVA”) managed by the credit portfolio group, funding valuation adjustments (“FVA”) and debit valuation adjustments (“DVA”) on derivatives. Prior periods also include DVA on fair value option elected liabilities. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets. Effective January 1, 2016, changes in DVA on fair value option elected liabilities are recognized in other comprehensive income. For additional information, see Note 1 on page 28.

Page 15



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q16 Change										2016 Change
	2Q16			1Q16			4Q15			3Q15			2Q15			1Q16		2Q15		2016			2015			2015
SELECTED BALANCE SHEET DATA (period-end)
Assets	$	826,019		$	801,053		$	748,691		$	801,133		$	819,745		3	%	1	%	$	826,019		$	819,745		1	%
Loans:
Loans retained (a)	112,637			109,132			106,908			101,420			96,579			3		17		112,637			96,579			17
Loans held-for-sale and loans at fair value	5,600			2,381			3,698			3,369			7,211			135		(22	)	5,600			7,211			(22	)
Total loans	118,237			111,513			110,606			104,789			103,790			6		14		118,237			103,790			14
Core loans (b)	117,821			111,050			110,084			104,270			103,235			6		14		117,821			103,235			14

Equity	64,000			64,000			62,000			62,000			62,000			—		3		64,000			62,000			3

SELECTED BALANCE SHEET DATA (average)
Assets	$	815,886		$	797,548		$	797,427		$	789,975		$	845,225		2		(3	)	$	806,717		$	855,220		(6	)
Trading assets - debt and equity instruments	306,418			285,122			291,958			288,828			317,385			7		(3	)	295,770			314,837			(6	)
Trading assets - derivative receivables	61,457			62,557			59,425			63,561			68,949			(2	)	(11	)	62,007			73,128			(15	)
Loans:
Loans retained (a)	111,668			108,712			101,959			97,518			94,711			3		18		110,190			96,900			14
Loans held-for-sale and loans at fair value	3,169			3,204			4,897			3,827			5,504			(1	)	(42	)	3,187			4,786			(33	)
Total loans	114,837			111,916			106,856			101,345			100,215			3		15		113,377			101,686			11
Core loans (b)	114,421			111,417			106,331			100,809			99,343			3		15		112,919			100,690			12

Equity	64,000			64,000			62,000			62,000			62,000			—		3		64,000			62,000			3

Headcount	48,805			49,067			49,067			49,384			49,367			(1	)	(1	)	48,805			49,367			(1	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	90		$	46		$	5		$	2		$	(15	)	96		NM		$	136		$	(26	)	NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)(c)	623			650			428			464			324			(4	)	92		623			324			92
Nonaccrual loans held-for-sale and loans at fair value	7			7			10			12			12			—		(42	)	7			12			(42	)
Total nonaccrual loans	630			657			438			476			336			(4	)	88		630			336			88

Derivative receivables	220			212			204			235			256			4		(14	)	220			256			(14	)
Assets acquired in loan satisfactions	75			62			62			56			60			21		25		75			60			25
Total nonperforming assets	925			931			704			767			652			(1	)	42		925			652			42
Allowance for credit losses:
Allowance for loan losses	1,669			1,497			1,258			1,205			1,086			11		54		1,669			1,086			54
Allowance for lending-related commitments	715			744			569			547			437			(4	)	64		715			437			64
Total allowance for credit losses	2,384			2,241			1,827			1,752			1,523			6		57		2,384			1,523			57

Net charge-off/(recovery) rate (a)	0.32		%	0.17		%	0.02		%	0.01		%	(0.06		)%					0.25		%	(0.05		)%
Allowance for loan losses to period-end loans retained (a)	1.48			1.37			1.18			1.19			1.12							1.48			1.12
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (d)	2.23			2.11			1.88			1.85			1.73							2.23			1.73
Allowance for loan losses to nonaccrual loans retained (a)(c)	268			230			294			260			335							268			335
Nonaccrual loans to total period-end loans	0.53			0.59			0.40			0.45			0.32							0.53			0.32


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


(b)	Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, see page 28.


(c)	Allowance for loan losses of $211 million, $233 million, $177 million, $160 million and $64 million were held against nonaccrual loans at June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, respectively.


(d)	Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB’s allowance coverage ratio.

Page 16



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q16 Change										2016 Change
	2Q16			1Q16			4Q15			3Q15			2Q15			1Q16		2Q15		2016			2015			2015
BUSINESS METRICS
Advisory	$	466		$	585		$	622		$	503		$	466		(20	)%	—	%	$	1,051		$	1,008		4	%
Equity underwriting	285			205			314			269			452			39		(37	)	490			851			(42	)
Debt underwriting	885			531			602			840			907			67		(2	)	1,416			1,727			(18	)
Total investment banking fees	$	1,636		$	1,321		$	1,538		$	1,612		$	1,825		24		(10	)	$	2,957		$	3,586		(18	)

Assets under custody (“AUC”) (period-end) (in billions)	$	20,470		$	20,283		$	19,943		$	19,691		$	20,497		1		—		$	20,470		$	20,497

Client deposits and other third-party liabilities (average) (a)	373,671			358,926			364,794			372,070			401,280			4		(7	)	366,299			422,607

Trade finance loans (period-end)	17,362			18,078			19,255			21,138			21,195			(4	)	(18	)	17,362			21,195

95% Confidence Level - Total CIB VaR (average)
CIB trading VaR by risk type: (b)
Fixed income	$	46		$	46		$	42		$	50		$	41		—		12		$	46		$	38		21
Foreign exchange	12			9			10			9			9			33		33		11			9			22
Equities	14			22			18			20			16			(36	)	(13	)	18			17			6
Commodities and other	9			9			11			10			9			—		—		9			9			—
Diversification benefit to CIB trading VaR (c)	(37		)	(32		)	(31		)	(35		)	(37		)	(16	)	—		(35		)	(37		)	5
CIB trading VaR (b)	44			54			50			54			38			(19	)	16		49			36			36
Credit portfolio VaR (d)	12			12			11			13			15			—		(20	)	12			16			(25	)
Diversification benefit to CIB VaR (c)	(12		)	(11		)	(9		)	(10		)	(10		)	(9	)	(20	)	(11		)	(9		)	(22	)
CIB VaR (b)	$	44		$	55		$	52		$	57		$	43		(20	)	2		$	50		$	43		16


(a)	Client deposits and other third party liabilities pertain to the Treasury Services and Securities Services businesses.


(b)	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. For further information, see VaR measurement on pages 135–137 of the 2015 Annual Report, and pages 48-50 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2016.


(c)	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.


(d)	Credit portfolio VaR includes the derivative CVA, hedges of the CVA and hedges of the retained loan portfolio, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value.

Page 17



JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)


	QUARTERLY TRENDS																				SIX MONTHS ENDED JUNE 30,
																	2Q16 Change										2016 Change
	2Q16				1Q16			4Q15			3Q15			2Q15			1Q16		2Q15		2016			2015			2015
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	227			$	232		$	236		$	229		$	242		(2	)%	(6	)%	$	459		$	479		(4	)%
Asset management, administration and commissions	18				22			20			22			22			(18	)	(18	)	40			46			(13	)
All other income (a)	341				302			342			271			345			13		(1	)	643			720			(11	)
Noninterest revenue	586				556			598			522			609			5		(4	)	1,142			1,245			(8	)
Net interest income	1,231				1,247			1,162			1,122			1,130			(1	)	9		2,478			2,236			11
TOTAL NET REVENUE (b)	1,817				1,803			1,760			1,644			1,739			1		4		3,620			3,481			4

Provision for credit losses	(25		)		304			117			82			182			NM		NM		279			243			15

NONINTEREST EXPENSE
Compensation expense	322				334			310			311			308			(4	)	5		656			617			6
Noncompensation expense	409				379			440			408			395			8		4		788			795			(1	)
TOTAL NONINTEREST EXPENSE	731				713			750			719			703			3		4		1,444			1,412			2

Income before income tax expense	1,111				786			893			843			854			41		30		1,897			1,826			4
Income tax expense	415				290			343			325			329			43		26		705			703			—
NET INCOME	$	696			$	496		$	550		$	518		$	525		40		33		$	1,192		$	1,123		6

Revenue by product
Lending	$	917			$	928		$	887		$	850		$	867		(1	)	6		$	1,845		$	1,692		9
Treasury services	680				694			655			633			646			(2	)	5		1,374			1,293			6
Investment banking (c)	207				155			156			130			196			34		6		362			444			(18	)
Other	13				26			62			31			30			(50	)	(57	)	39			52			(25	)
Total Commercial Banking net revenue	$	1,817			$	1,803		$	1,760		$	1,644		$	1,739		1		4		$	3,620		$	3,481		4

Investment banking revenue, gross (d)	$	595			$	483		$	455		$	382		$	589		23		1		$	1,078		$	1,342		(20	)

Revenue by client segment
Middle Market Banking (e)	$	698			$	707		$	694		$	668		$	679		(1	)	3		$	1,405		$	1,344		5
Corporate Client Banking (e)	562				511			478			453			541			10		4		1,073			1,117			(4	)
Commercial Term Lending	342				361			331			318			318			(5	)	8		703			626			12
Real Estate Banking	144				140			138			123			117			3		23		284			233			22
Other	71				84			119			82			84			(15	)	(15	)	155			161			(4	)
Total Commercial Banking net revenue	$	1,817			$	1,803		$	1,760		$	1,644		$	1,739		1		4		$	3,620		$	3,481		4

FINANCIAL RATIOS
ROE	16			%	11		%	15		%	14		%	14		%					14		%	15		%
Overhead ratio	40				40			43			44			40							40			41


(a)	Includes revenue from investment banking products and commercial card transactions.

(b)

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 related to municipal financing activity of $124 million, $120 million, $149 million, $116 million and $115 million for the three months ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, and $244 million and $228 million for six months ended June 30, 2016 and 2015, respectively.


(c)	Revenue by product includes total Firm revenue from investment banking products sold to CB clients, net of revenue sharing with the CIB.


(d)	Total Firm revenue from investment banking products sold to CB clients.


(e)	Effective in the second quarter of 2016, certain clients were transferred from Middle Market Banking to Corporate Client Banking. Prior period client segment results were revised to conform with the current period presentation.

Page 18



JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																		2Q16 Change										2016 Change
	2Q16			1Q16			4Q15			3Q15				2Q15				1Q16		2Q15		2016			2015			2015
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	208,151		$	204,602		$	200,700		$	201,157			$	201,377			2	%	3	%	$	208,151		$	201,377		3	%
Loans:
Loans retained	179,164			173,583			167,374			162,269				157,947				3		13		179,164			157,947			13
Loans held-for-sale and loans at fair value	134			338			267			213				1,506				(60	)	(91	)	134			1,506			(91	)
Total loans	$	179,298		$	173,921		$	167,641		$	162,482			$	159,453			3		12		$	179,298		$	159,453		12
Core loans (a)	178,809			173,316			166,939			161,662				158,568				3		13		178,809			158,568			13
Equity	16,000			16,000			14,000			14,000				14,000				—		14		16,000			14,000			14

Period-end loans by client segment:
Middle Market Banking (b)	$	51,951		$	51,644		$	50,502		$	51,067			$	50,735			1		2		$	51,951		$	50,735		2
Corporate Client Banking (b)	36,011			34,649			32,731			30,552				31,149				4		16		36,011			31,149			16
Commercial Term Lending	66,499			64,292			62,860			60,684				58,314				3		14		66,499			58,314			14
Real Estate Banking	19,233			17,719			16,211			15,068				14,231				9		35		19,233			14,231			35
Other	5,604			5,617			5,337			5,111				5,024				—		12		5,604			5,024			12
Total Commercial Banking loans	$	179,298		$	173,921		$	167,641		$	162,482			$	159,453			3		12		$	179,298		$	159,453		12

SELECTED BALANCE SHEET DATA (average)
Total assets	$	205,953		$	202,492		$	200,325		$	197,274			$	198,740			2		4		$	204,222		$	197,341		3
Loans:
Loans retained	176,229			169,837			165,679			158,845				155,110				4		14		173,033			152,435			14
Loans held-for-sale and loans at fair value	583			448			188			359				870				30		(33	)	516			715			(28	)
Total loans	$	176,812		$	170,285		$	165,867		$	159,204			$	155,980			4		13		$	173,549		$	153,150		13
Core loans (a)	176,251			169,626			165,091			158,364				155,016				4		14		172,939			152,143			14
Client deposits and other third-party liabilities	170,717			173,079			178,637			180,892				197,004				(1	)	(13	)	171,898			203,489			(16	)
Equity	16,000			16,000			14,000			14,000				14,000				—		14		16,000			14,000			14

Average loans by client segment:
Middle Market Banking (b)	$	51,939		$	50,557		$	50,926		$	50,436			$	50,438			3		3		$	51,248		$	49,983		3
Corporate Client Banking (b)	35,664			33,791			32,758			29,901				29,988				6		19		34,728			28,834			20
Commercial Term Lending	65,262			63,475			61,574			59,323				56,814				3		15		64,369			55,790			15
Real Estate Banking	18,381			17,021			15,565			14,487				13,732				8		34		17,701			13,603			30
Other	5,566			5,441			5,044			5,057				5,008				2		11		5,503			4,940			11
Total Commercial Banking loans	$	176,812		$	170,285		$	165,867		$	159,204			$	155,980			4		13		$	173,549		$	153,150		13

Headcount	8,127			7,971			7,845			7,735				7,568				2		7		8,127			7,568			7

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	60		$	6		$	16		$	(2	)		$	(4	)		NM		NM		$	66		$	7		NM
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (c)	1,258			1,257			375			423				384				—		228		1,258			384			228
Nonaccrual loans held-for-sale and loans
at fair value	—			—			18			16				14				—		(100	)	—			14			(100	)
Total nonaccrual loans	1,258			1,257			393			439				398				—		216		1,258			398			216

Assets acquired in loan satisfactions	1			1			8			4				5				—		(80	)	1			5			(80	)
Total nonperforming assets	1,259			1,258			401			443				403				—		212		1,259			403			212
Allowance for credit losses:
Allowance for loan losses	3,041			3,099			2,855			2,782				2,705				(2	)	12		3,041			2,705			12
Allowance for lending-related commitments	226			252			198			170				163				(10	)	39		226			163			39
Total allowance for credit losses	3,267			3,351			3,053			2,952				2,868				(3	)	14		3,267			2,868			14

Net charge-off/(recovery) rate (d)	0.14		%	0.01		%	0.04		%	—			%	(0.01		)	%					0.08		%	0.01		%
Allowance for loan losses to period-end loans retained	1.70			1.79			1.71			1.71				1.71								1.70			1.71
Allowance for loan losses to nonaccrual loans retained (c)	242			247			761			658				704								242			704
Nonaccrual loans to period-end total loans	0.70			0.72			0.23			0.27				0.25								0.70			0.25


(a)	Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, see page 28.


(b)	Effective in the second quarter of 2016, certain clients were transferred from Middle Market Banking to Corporate Client Banking. Prior period client segment results were revised to conform with the current period presentation.


(c)	Allowance for loan losses of $292 million, $278 million, $64 million, $80 million and $42 million was held against nonaccrual loans retained at June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, respectively.


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

Page 19



JPMORGAN CHASE & CO.
ASSET MANAGEMENT
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																		2Q16 Change										2016 Change
	2Q16				1Q16			4Q15			3Q15				2Q15			1Q16		2Q15		2016			2015			2015
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	2,102			$	2,016		$	2,328		$	2,237			$	2,381		4	%	(12	)%	$	4,118		$	4,610		(11	)%
All other income	90				229			46			24				163			(61	)	(45	)	319			318			—
Noninterest revenue	2,192				2,245			2,374			2,261				2,544			(2	)	(14	)	4,437			4,928			(10	)
Net interest income	747				727			671			633				631			3		18		1,474			1,252			18
TOTAL NET REVENUE	2,939				2,972			3,045			2,894				3,175			(1	)	(7	)	5,911			6,180			(4	)

Provision for credit losses	(8		)		13			17			(17		)		—			NM		NM		5			4			25

NONINTEREST EXPENSE
Compensation expense	1,249				1,241			1,307			1,218				1,299			1		(4	)	2,490			2,588			(4	)
Noncompensation expense	849				834			889			891				1,107			2		(23	)	1,683			1,993			(16	)
TOTAL NONINTEREST EXPENSE	2,098				2,075			2,196			2,109				2,406			1		(13	)	4,173			4,581			(9	)

Income before income tax expense	849				884			832			802				769			(4	)	10		1,733			1,595			9
Income tax expense	328				297			325			327				318			10		3		625			642			(3	)
NET INCOME	$	521			$	587		$	507		$	475			$	451		(11	)	16		$	1,108		$	953		16

REVENUE BY LINE OF BUSINESS
Global Investment Management	$	1,424			$	1,499		$	1,615		$	1,483			$	1,670		(5	)	(15	)	$	2,923		$	3,203		(9	)
Global Wealth Management	1,515				1,473			1,430			1,411				1,505			3		1		2,988			2,977			—
TOTAL NET REVENUE	$	2,939			$	2,972		$	3,045		$	2,894			$	3,175		(1	)	(7	)	$	5,911		$	6,180		(4	)

FINANCIAL RATIOS
ROE	22			%	25		%	21		%	20			%	19		%					24		%	21		%
Overhead ratio	71				70			72			73				76							71			74
Pretax margin ratio:
Global Investment Management	30				33			36			31				26							31			28
Global Wealth Management	28				26			17			24				22							27			24
Asset Management	29				30			27			28				24							29			26

Headcount	20,897				20,885			20,975			20,651				20,237			—		3		20,897			20,237			3

Number of client advisors	2,622				2,750			2,778			2,796				2,746			(5	)	(5	)	2,622			2,746			(5	)

Page 20



JPMORGAN CHASE & CO.
ASSET MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)

	QUARTERLY TRENDS																				SIX MONTHS ENDED JUNE 30,
																	2Q16 Change										2016 Change
	2Q16			1Q16			4Q15			3Q15			2Q15				1Q16		2Q15		2016			2015			2015
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	134,380		$	131,276		$	131,451		$	131,412		$	134,059			2	%	—	%	$	134,380		$	134,059		—	%
Loans (a)	113,319			111,050			111,007			110,314			109,336				2		4		113,319			109,336			4
Core loans (b)	113,319			111,050			111,007			110,314			109,336				2		4		113,319			109,336			4
Deposits	148,967			152,908			146,766			140,121			141,179				(3	)	6		148,967			141,179			6
Equity	9,000			9,000			9,000			9,000			9,000				—		—		9,000			9,000			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	131,529		$	129,790		$	130,980		$	131,100		$	130,548			1		1		$	130,659		$	128,424		2
Loans	111,704			110,497			110,305			108,741			107,250				1		4		111,101			105,279			6
Core loans (b)	111,704			110,497			110,305			108,741			107,250				1		4		111,101			105,279			6
Deposits	151,214			150,616			145,623			141,896			152,563				—		(1	)	150,915			155,386			(3	)
Equity	9,000			9,000			9,000			9,000			9,000				—		—		9,000			9,000			—

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	2		$	9		$	8		$	2		$	(1	)		(78	)%	NM		$	11		$	2		450	%
Nonaccrual loans	254			335			218			229			209				(24	)	22		254			209			22
Allowance for credit losses:
Allowance for loan losses	258			270			266			258			273				(4	)	(5	)	258			273			(5	)
Allowance for lending-related commitments	4			4			5			4			5				—		(20	)	4			5			(20	)
Total allowance for credit losses	262			274			271			262			278				(4	)	(6	)	262			278			(6	)
Net charge-off/(recovery) rate	0.01		%	0.03		%	0.03		%	0.01		%	—			%					0.02		%	—		%
Allowance for loan losses to period-end loans	0.23			0.24			0.24			0.23			0.25								0.23			0.25
Allowance for loan losses to nonaccrual loans	102			81			122			113			131								102			131
Nonaccrual loans to period-end loans	0.22			0.30			0.20			0.21			0.19								0.22			0.19


(a)	Included $29.2 billion, $27.7 billion, $26.6 billion, $25.4 billion, and $24.0 billion of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, respectively.


(b)	Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, see page 28.

Page 21



JPMORGAN CHASE & CO.
ASSET MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)


																Jun 30, 2016
																Change				SIX MONTHS ENDED JUNE 30,
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,		Jun 30,							2016 Change
CLIENT ASSETS	2016			2016			2015			2015			2015			2016		2015		2016			2015		2015
Assets by asset class
Liquidity	$	426		$	424		$	464		$	463		$	466		—	%	(9	)%	$	426		$	466	(9	)%
Fixed income	383			365			342			351			357			5		7		383			357		7
Equity	342			346			353			336			380			(1	)	(10	)	342			380		(10	)
Multi-asset and alternatives	542			541			564			561			578			—		(6	)	542			578		(6	)
TOTAL ASSETS UNDER MANAGEMENT	1,693			1,676			1,723			1,711			1,781			1		(5	)	1,693			1,781		(5	)
Custody/brokerage/administration/deposits	651			647			627			612			642			1		1		651			642		1
TOTAL CLIENT ASSETS	$	2,344		$	2,323		$	2,350		$	2,323		$	2,423		1		(3	)	$	2,344		$	2,423	(3	)

Memo:
Alternatives client assets (a)	$	151		$	151		$	172		$	172		$	173		—		(13	)	$	151		$	173	(13	)

Assets by client segment
Private Banking	$	425		$	428		$	437		$	438		$	452		(1	)	(6	)	$	425		$	452	(6	)
Institutional	811			798			816			816			830			2		(2	)	811			830		(2	)
Retail	457			450			470			457			499			2		(8	)	457			499		(8	)
TOTAL ASSETS UNDER MANAGEMENT	$	1,693		$	1,676		$	1,723		$	1,711		$	1,781		1		(5	)	$	1,693		$	1,781	(5	)

Private Banking	$	1,058		$	1,057		$	1,050		$	1,037		$	1,080		—		(2	)	$	1,058		$	1,080	(2	)
Institutional	827			814			824			823			838			2		(1	)	827			838		(1	)
Retail	459			452			476			463			505			2		(9	)	459			505		(9	)
TOTAL CLIENT ASSETS	$	2,344		$	2,323		$	2,350		$	2,323		$	2,423		1		(3	)	$	2,344		$	2,423	(3	)

Assets under management rollforward
Beginning balance	$	1,676		$	1,723		$	1,711		$	1,781		$	1,759						$	1,723		$	1,744
Net asset flows:
Liquidity	4			(27		)	(1		)	(5		)	6							(23		)	5
Fixed income	10			11			(7		)	(5		)	3							21			5
Equity	(5		)	(5		)	3			(5		)	(1		)					(10		)	3
Multi-asset and alternatives	(2		)	6			(5		)	6			11							4			21
Market/performance/other impacts	10			(32		)	22			(61		)	3							(22		)	3
Ending balance	$	1,693		$	1,676		$	1,723		$	1,711		$	1,781						$	1,693		$	1,781

Client assets rollforward
Beginning balance	$	2,323		$	2,350		$	2,323		$	2,423		$	2,405						$	2,350		$	2,387
Net asset flows	2			(7		)	1			(7		)	16							(5		)	33
Market/performance/other impacts	19			(20		)	26			(93		)	2							(1		)	3
Ending balance	$	2,344		$	2,323		$	2,350		$	2,323		$	2,423						$	2,344		$	2,423


(a)	Represents assets under management, as well as client balances in brokerage accounts.

Page 22



JPMORGAN CHASE & CO.
CORPORATE
FINANCIAL HIGHLIGHTS
(in millions, except headcount data)

	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q16 Change										2016 Change
	2Q16			1Q16			4Q15			3Q15			2Q15			1Q16		2Q15		2016			2015			2015
INCOME STATEMENT
REVENUE
Principal transactions	$	29		$	97		$	(56	)	$	(70	)	$	67		(70	)%	(57	)%	$	126		$	167		(25	)%
Securities gains	20			51			72			25			40			(61	)	(50	)	71			93			(24	)
All other income (a)	122			121			571			118			(7		)	1		NM		243			(120		)	NM
Noninterest revenue	171			269			587			73			100			(36	)	71		440			140			214
Net interest income	(329		)	(213		)	64			(123		)	(221		)	(54	)	(49	)	(542		)	(474		)	(14	)
TOTAL NET REVENUE (b)	(158		)	56			651			(50		)	(121		)	NM		(31	)	(102		)	(334		)	69

Provision for credit losses	(1		)	(2		)	(2		)	(4		)	1			50		NM		(3		)	(4		)	25

NONINTEREST EXPENSE (c)	(273		)	153			609			172			44			NM		NM		(120		)	196			NM
Income/(loss) before income tax expense/(benefit)	116			(95		)	44			(218		)	(166		)	NM		NM		21			(526		)	NM
Income tax expense/(benefit) (d)	282			(63		)	(178		)	(1,935		)	(606		)	NM		NM		219			(1,024		)	NM
NET INCOME/(LOSS)	$	(166	)	$	(32	)	$	222		$	1,717		$	440		(419	)	NM		$	(198	)	$	498		NM

MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”)	(226		)	(94		)	137			(89		)	(163		)	(140	)	(39	)	(320		)	(541		)	41
Other Corporate	68			150			514			39			42			(55	)	62		218			207			5
TOTAL NET REVENUE	$	(158	)	$	56		$	651		$	(50	)	$	(121	)	NM		(31	)	$	(102	)	$	(334	)	69

NET INCOME/(LOSS)
Treasury and CIO	(199		)	(111		)	138			(40		)	(112		)	(79	)	(78	)	(310		)	(333		)	7
Other Corporate	33			79			84			1,757			552			(58	)	(94	)	112			831			(87	)
TOTAL NET INCOME/(LOSS)	$	(166	)	$	(32	)	$	222		$	1,717		$	440		(419	)	NM		$	(198	)	$	498		NM

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	778,359		$	781,806		$	768,204		$	798,680		$	821,736		—		(5	)	$	778,359		$	821,736		(5	)
Loans	1,862			1,983			2,187			2,332			2,480			(6	)	(25	)	1,862			2,480			(25	)
Core loans (e)(f)	1,857			1,978			2,182			2,327			2,474			(6	)	(25	)	1,857			2,474			(25	)

Headcount	30,402			29,572			29,617			29,307			27,985			3		9		30,402			27,985			9

SUPPLEMENTAL INFORMATION
TREASURY and CIO
Securities gains	$	20		$	51		$	72		$	25		$	40		(61	)%	(50	)%	$	71		$	93		(24	)%
Investment securities portfolio (average) (g)	278,962			283,443			296,693			306,370			322,954			(2	)	(14	)	281,203			328,293			(14	)
Investment securities portfolio (period-end) (h)	275,562			282,424			287,777			303,057			314,048			(2	)	(12	)	275,562			314,048			(12	)
Mortgage loans (average)	1,858			2,005			2,221			2,400			2,599			(7	)	(29	)	1,932			2,694			(28	)
Mortgage loans (period-end)	1,798			1,927			2,136			2,293			2,455			(7	)	(27	)	1,798			2,455			(27	)

Private equity portfolio
Carrying value	$	1,879		$	2,004		$	2,103		$	2,192		$	2,718		(6	)	(31	)	$	1,879		$	2,718		(31	)
Cost	2,941			3,512			3,798			3,832			4,252			(16	)	(31	)	2,941			4,252			(31	)


(a)	Included revenue related to a legal settlement of $514 million for the three months ended December 31, 2015.

(b)

Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $227 million, $218 million, $219 million, $215 million, and $202 million for the three months ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, respectively, and $445 million and $405 million for the six months ended June 30, 2016, and 2015, respectively.


(c)	Included legal expense/(benefit) of $(467) million, $407 million, and $102 million for the three months ended June 30, 2016, December 31, 2015, and September 30, 2015, respectively; and $(465) million and $323 million for the six months ended June 30, 2016, and 2015, respectively. Legal expense/(benefit) for the three months ended March 31, 2016 and June 30, 2015 was not material.


(d)	The three months ended September 30, 2015 reflected tax benefits of $1.9 billion, due to the resolution of various tax audits.


(e)	Average core loans were $2.0 billion, $2.1 billion, $2.3 billion $2.4 billion, and $2.6 billion for the three months ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, respectively, and $2.0 billion and $2.8 billion for the six months ended June 30, 2016, and 2015, respectively.


(f)	Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, see page 28.


(g)	Average investment securities included held-to-maturity balances of $53.4 billion, $48.3 billion, $49.5 billion, $50.7 billion, and $50.7 billion for the three months ended June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, respectively, and $50.9 billion and $50.0 billion for the six months ended June 30, 2016, and 2015, respectively.


(h)	Period-end investment securities included held-to-maturity balances of $53.8 billion, $47.9 billion, $49.1 billion, $50.2 billion, and $51.6 billion at June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, respectively.

Page 23



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
											Jun 30, 2016
											Change
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Jun 30,
	2016		2016		2015		2015		2015		2016		2015
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained, excluding PCI loans	$	322,690	$	314,128	$	303,357	$	289,496	$	272,975	3	%	18	%
Loans - PCI	38,360		39,743		40,998		42,236		43,806		(3	)	(12	)
Total loans retained	361,050		353,871		344,355		331,732		316,781		2		14
Loans held-for-sale	255		321		466		237		1,505		(21	)	(83	)
Total consumer, excluding credit card loans	361,305		354,192		344,821		331,969		318,286		2		14

Credit card loans
Loans retained	131,507		126,012		131,387		125,634		124,705		4		5
Loans held-for-sale	84		78		76		1,345		1,320		8		(94	)
Total credit card loans	131,591		126,090		131,463		126,979		126,025		4		4
Total consumer loans	492,896		480,282		476,284		458,948		444,311		3		11

Wholesale loans (b)
Loans retained	374,174		364,312		357,050		346,927		338,219		3		11
Loans held-for-sale and loans at fair value	5,734		2,719		3,965		3,582		8,717		111		(34	)
Total wholesale loans	379,908		367,031		361,015		350,509		346,936		4		10

Total loans	872,804		847,313		837,299		809,457		791,247		3		10

Derivative receivables	78,446		70,209		59,677		68,668		67,451		12		16
Receivables from customers and other (c)	14,426		16,294		13,497		17,016		22,591		(11	)	(36	)
Total credit-related assets	92,872		86,503		73,174		85,684		90,042		7		3

Lending-related commitments
Consumer, excluding credit card	59,224		60,744		58,478		60,005		59,817		(3	)	(1	)
Credit card	539,105		532,224		515,518		526,433		523,717		1		3
Wholesale	357,145		367,466		366,399		354,348		352,048		(3	)	1
Total lending-related commitments	955,474		960,434		940,395		940,786		935,582		(1	)	2

Total credit exposure	$	1,921,150	$	1,894,250	$	1,850,868	$	1,835,927	$	1,816,871	1		6

Memo: Total by category
Consumer exposure (d)	$	1,091,363	$	1,073,377	$	1,050,405	$	1,045,505	$	1,027,958	2		6
Wholesale exposures (e)	829,787		820,873		800,463		790,422		788,913		1		5
Total credit exposure	$	1,921,150	$	1,894,250	$	1,850,868	$	1,835,927	$	1,816,871	1		6

Note: The Firm provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, see page 28.


(a)	Includes loans reported in CCB, prime mortgage and home equity loans reported in AM, and prime mortgage loans reported in Corporate.


(b)	Includes loans reported in CIB, CB and AM business segments and Corporate.


(c)	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.


(d)	Represents total consumer loans and lending-related commitments.


(e)	Represents total wholesale loans and lending-related commitments, derivative receivables and receivables from customers.

Page 24



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)

																Jun 30, 2016
																Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,		Jun 30,
	2016			2016			2015			2015			2015			2016		2015
NONPERFORMING ASSETS (a)
Consumer nonaccrual loans (b)(c)	$	5,085		$	5,225		$	5,413		$	5,530		$	5,984		(3	)	(15	)

Wholesale nonaccrual loans
Loans retained	2,093			2,203			988			1,086			873			(5	)	140
Loans held-for-sale and loans at fair value	7			7			28			28			26			—		(73	)
Total wholesale nonaccrual loans	2,100			2,210			1,016			1,114			899			(5	)	134

Total nonaccrual loans	7,185			7,435			6,429			6,644			6,883			(3	)	4

Derivative receivables	220			212			204			235			256			4		(14	)
Assets acquired in loan satisfactions	352			376			401			415			449			(6	)	(22	)
Total nonperforming assets	7,757			8,023			7,034			7,294			7,588			(3	)	2
Wholesale lending-related commitments (d)	460			722			193			176			133			(36	)	246
Total nonperforming exposure	$	8,217		$	8,745		$	7,227		$	7,470		$	7,721		(6	)	6

NONACCRUAL LOAN-RELATED RATIOS
Total nonaccrual loans to total loans	0.82		%	0.88		%	0.77		%	0.82		%	0.87		%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans	1.41			1.48			1.57			1.67			1.88
Total wholesale nonaccrual loans to total
wholesale loans	0.55			0.60			0.28			0.32			0.26

(a)

At June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $5.2 billion, $5.7 billion, $6.3 billion, $6.6 billion and $7.0 billion, respectively, that are 90 or more days past due; (2) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $252 million, $269 million, $290 million, $289 million and $282 million, respectively, that are 90 or more days past due; (3) real estate owned (“REO”) insured by U.S. government agencies of $355 million, $360 million, $343 million, $327 million and $384 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”). Under this guidance, non-modified 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)	Included nonaccrual loans held-for-sale of $61 million, $98 million and $212 million at March 31, 2016, December 31, 2015, and June 30, 2015, respectively. There were no nonaccrual loans held-for-sale at June 30, 2016, or September 30, 2015.


(c)	Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.


(d)	Represents commitments that are risk rated as nonaccrual.

Page 25



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)


	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q16 Change										2016 Change
	2Q16			1Q16			4Q15			3Q15			2Q15			1Q16		2Q15		2016			2015			2015
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	13,994		$	13,555		$	13,466		$	13,915		$	14,065		3	%	(1	)%	$	13,555		$	14,185		(4	)%
Net charge-offs:
Gross charge-offs	1,433			1,357			1,300			1,305			1,284			6		12		2,790			2,636			6
Gross recoveries	(252		)	(247		)	(236		)	(342		)	(277		)	(2	)	9		(499		)	(577		)	14
Net charge-offs	1,181			1,110			1,064			963			1,007			6		17		2,291			2,059			11
Write-offs of PCI loans and other (a)	41			47			46			52			55			(13	)	(25	)	88			110			(20	)
Provision for loan losses	1,456			1,596			1,200			567			908			(9	)	60		3,052			1,896			61
Other	(1		)	—			(1		)	(1		)	4			NM		NM		(1		)	3			NM
Ending balance	$	14,227		$	13,994		$	13,555		$	13,466		$	13,915		2		2		$	14,227		$	13,915		2

ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	1,014		$	786		$	735		$	620		$	593		29		71		$	786		$	622		26
Provision for lending-related commitments	(54		)	228			51			115			27			NM		NM		174			(2		)	NM
Ending balance	$	960		$	1,014		$	786		$	735		$	620		(5	)	55		$	960		$	620		55

Total allowance for credit losses	$	15,187		$	15,008		$	14,341		$	14,201		$	14,535		1		4		$	15,187		$	14,535		4

NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans (b)	0.19		%	0.25		%	0.31		%	0.25		%	0.29		%					0.22		%	0.32		%
Credit card retained loans	2.70			2.62			2.42			2.41			2.61							2.66			2.61
Total consumer retained loans	0.85			0.89			0.88			0.85			0.95							0.87			0.98
Wholesale retained loans	0.17			0.07			0.03			—			(0.02		)					0.12			(0.01		)
Total retained loans	0.56			0.53			0.52			0.49			0.53							0.54			0.55
Consumer retained loans, excluding credit card and
PCI loans	0.21			0.29			0.35			0.29			0.34							0.25			0.38
Consumer retained loans, excluding PCI loans	0.92			0.97			0.97			0.94			1.06							0.95			1.10
Total retained, excluding PCI loans	0.58			0.56			0.54			0.51			0.56							0.57			0.58

Memo: Average retained loans
Consumer retained, excluding credit card loans	$	357,602		$	348,916		$	339,637		$	323,458		$	311,074		2		15		$	353,259		$	305,463		16
Credit card retained loans	128,314			127,227			126,903			125,048			122,732			1		5		127,771			122,542			4
Total average retained consumer loans	485,916			476,143			466,540			448,506			433,806			2		12		481,030			428,005			12
Wholesale retained loans	369,706			360,306			350,370			339,172			331,924			3		11		365,006			329,921			11
Total average retained loans	$	855,622		$	836,449		$	816,910		$	787,678		$	765,730		2		12		$	846,036		$	757,926		12

Consumer retained, excluding credit card and
PCI loans	$	318,556		$	308,526		$	298,047		$	280,475		$	266,567		3		20		$	313,541		$	260,233		20
Consumer retained, excluding PCI loans	446,870			435,753			424,950			405,524			389,299			3		15		441,312			382,776			15
Total retained, excluding PCI loans	816,572			796,055			775,316			744,692			721,219			3		13		806,314			712,693			13


(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. A write-off of a PCI loan is 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 26



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)

																Jun 30, 2016
																Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,		Jun 30,
	2016			2016			2015			2015			2015			2016		2015
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)	$	365		$	371		$	364		$	359		$	436		(2	)%	(16	)%
Formula-based	2,627			2,694			2,700			2,702			2,841			(2	)	(8	)
PCI	2,654			2,695			2,742			2,788			3,215			(2	)	(17	)
Total consumer, excluding credit card	5,646			5,760			5,806			5,849			6,492			(2	)	(13	)
Credit card
Asset-specific (a)(b)	361			427			460			485			518			(15	)	(30	)
Formula-based	3,323			3,007			2,974			2,949			2,916			11		14
Total credit card	3,684			3,434			3,434			3,434			3,434			7		7
Total consumer	9,330			9,194			9,240			9,283			9,926			1		(6	)
Wholesale
Asset-specific (a)	525			565			274			281			147			(7	)	257
Formula-based	4,372			4,235			4,041			3,902			3,842			3		14
Total wholesale	4,897			4,800			4,315			4,183			3,989			2		23
Total allowance for loan losses	14,227			13,994			13,555			13,466			13,915			2		2
Allowance for lending-related commitments	960			1,014			786			735			620			(5	)	55
Total allowance for credit losses	$	15,187		$	15,008		$	14,341		$	14,201		$	14,535		1		4

CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	1.56		%	1.63		%	1.69		%	1.76		%	2.05		%
Credit card allowance to total credit card retained loans	2.80			2.73			2.61			2.73			2.75
Wholesale allowance to total wholesale retained loans	1.31			1.32			1.21			1.21			1.18
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (c)	1.45			1.47			1.35			1.34			1.30
Total allowance to total retained loans	1.64			1.66			1.63			1.67			1.78
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	111			112			109			106			112
Total allowance, excluding credit card allowance, to retained
nonaccrual loans, excluding credit card nonaccrual loans (d)	147			143			161			152			158
Wholesale allowance to wholesale retained nonaccrual loans	234			218			437			385			457
Total allowance to total retained nonaccrual loans	198			190			215			204			209

CREDIT RATIOS, excluding PCI loans
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	0.93			0.98			1.01			1.06			1.20
Total allowance to total retained loans	1.40			1.40			1.37			1.40			1.45
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	59			59			58			55			57
Allowance, excluding credit card allowance, to retained non-
accrual loans, excluding credit card nonaccrual loans (d)	110			107			117			109			109
Total allowance to total retained nonaccrual loans	161			153			172			161			161


(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 relates to loans that have been modified in a TDR; the Firm calculates such allowance 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 25.

Page 27

JPMORGAN CHASE & CO.

NON-GAAP FINANCIAL MEASURES, KEY PERFORMANCE MEASURES AND OTHER NOTES

Non-GAAP Financial Measures

(a)

In addition to analyzing the Firm’s results on a reported basis, management reviews the Firm’s results, including the overhead ratio, and the results of the lines of business on a “managed” basis, which are non-GAAP financial measures. The Firm’s definition of managed basis starts with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on a FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These non-GAAP financial measures allow management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business.

(a)

The ratios of the allowance for loan losses to period-end loans retained, the allowance for loan losses to nonaccrual loans retained, and nonaccrual loans to total period-end loans excluding credit card and PCI loans, exclude the following: loans accounted for at fair value and loans held-for-sale; PCI loans; and the allowance for loan losses related to PCI loans. Additionally, 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.


(b)	CIB calculates the ratio of the allowance for loan losses to end-of-period loans 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.

Key Performance Measures


(a)	Core loans include loans considered central to the Firm’s ongoing businesses; core loans exclude loans classified as trading assets, runoff portfolios, discontinued portfolios and portfolios the Firm has an intent to exit.

(b)

Tangible common equity (“TCE”), Return on tangible common equity (“ROTCE”), and Tangible book value per share (“TBVPS”) are considered key financial performance measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. TCE, ROTCE, and TBVPS are meaningful to the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.

Other Notes

(1)

Effective January 1, 2016, the Firm adopted new accounting guidance related to the recognition and measurement of financial liabilities where the fair value option has been elected. This guidance requires the portion of the total change in fair value caused by changes in the Firm’s own credit risk (DVA) to be presented separately in other comprehensive income; previously these amounts were recognized in net income. The guidance was required to be applied as of the beginning of the fiscal year of adoption via a cumulative effect adjustment to the Consolidated balance sheet, which resulted in a reclassification from retained earnings to accumulated other comprehensive income. The adoption of this guidance had no material impact on the Firm’s Consolidated Financial Statements.

(2)

Effective January 1, 2016, the Firm adopted new accounting guidance related to share-based payments, including the accounting for income taxes and classification in the statement of cash flows. The guidance requires that all excess tax benefits and tax deficiencies that pertain to share-based payment arrangements be recognized within income tax expense in the Consolidated statements of income; previously such amounts were recognized within additional paid-in capital. The adoption of this guidance had no material impact on the Firm’s Consolidated Financial Statements.

Page 28

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