JPMORGAN CHASE & CO - FORM 8-K - EX-99.2 - EARNINGS RELEASE FINANCIAL SUPPLEMENT - 4Q16

Attached files

file	filename
EX-99.1 - EARNINGS RELEASE - 4Q16 - JPMORGAN CHASE & CO	a4q16erfexhibit991narrative.htm
EX-12.2 - RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS - 4Q16 - JPMORGAN CHASE & CO	a4q16erfexhibit122.htm
EX-12.1 - RATIO OF EARNINGS TO FIXED CHARGES - 4Q16 - JPMORGAN CHASE & CO	a4q16erfexhibit121.htm
8-K - 8-K - JPMORGAN CHASE & CO	a4q16erf8kcover.htm

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FOURTH 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 Acronyms and Line of Business Metrics on pages 172–179 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016.



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

	QUARTERLY TRENDS																				FULL YEAR
																	4Q16 Change											2016 Change
SELECTED INCOME STATEMENT DATA	4Q16				3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016				2015			2015
Reported Basis
Total net revenue	$	23,376			$	24,673		$	24,380		$	23,239		$	22,885		(5	)%	2	%	$	95,668			$	93,543		2	%
Total noninterest expense	13,833				14,463			13,638			13,837			14,263			(4	)	(3	)	55,771				59,014			(5	)
Pre-provision profit	9,543				10,210			10,742			9,402			8,622			(7	)	11		39,897				34,529			16
Provision for credit losses	864				1,271			1,402			1,824			1,251			(32	)	(31	)	5,361				3,827			40
NET INCOME	6,727				6,286			6,200			5,520			5,434			7		24		24,733				24,442			1

Managed Basis (a)
Total net revenue	24,333				25,512			25,214			24,083			23,747			(5	)	2		99,142				96,633			3
Total noninterest expense	13,833				14,463			13,638			13,837			14,263			(4	)	(3	)	55,771				59,014			(5	)
Pre-provision profit	10,500				11,049			11,576			10,246			9,484			(5	)	11		43,371				37,619			15
Provision for credit losses	864				1,271			1,402			1,824			1,251			(32	)	(31	)	5,361				3,827			40
NET INCOME	6,727				6,286			6,200			5,520			5,434			7		24		24,733				24,442			1

EARNINGS PER SHARE DATA
Net income: Basic	$	1.73			$	1.60		$	1.56		$	1.36		$	1.34		8		29		$	6.24			$	6.05		3
Diluted	1.71				1.58			1.55			1.35			1.32			8		30		6.19				6.00			3
Average shares: Basic	3,570.7				3,597.4			3,635.8			3,669.9			3,674.2			(1	)	(3	)	3,618.5				3,700.4			(2	)
Diluted	3,606.0				3,629.6			3,666.5			3,696.9			3,704.6			(1	)	(3	)	3,649.8				3,732.8			(2	)

MARKET AND PER COMMON SHARE DATA
Market capitalization	$	307,295			$	238,277		$	224,449		$	216,547		$	241,899		29		27		$	307,295			$	241,899		27
Common shares at period-end	3,561.2				3,578.3			3,612.0			3,656.7			3,663.5			—		(3	)	3,561.2				3,663.5			(3	)
Closing share price (b)	$	86.29			$	66.59		$	62.14		$	59.22		$	66.03		30		31		$	86.29			$	66.03		31
Book value per share	64.06				63.79			62.67			61.28			60.46			—		6		64.06				60.46			6
Tangible book value per share (“TBVPS”) (c)	51.44				51.23			50.21			48.96			48.13			—		7		51.44				48.13			7
Cash dividends declared per share	0.48				0.48			0.48			0.44			0.44			—		9		1.88				1.72			9

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)	11		%		10		%	10		%	9		%	9		%					10		%		11		%
Return on tangible common equity (“ROTCE”) (c)	14				13			13			12			11							13				13
Return on assets	1.06				1.01			1.02			0.93			0.90							1.00				0.99

High quality liquid assets (“HQLA”) (in billions) (e)	$	524			$	539		$	516		$	505		$	496		(3	)	6		$	524			$	496		6

CAPITAL RATIOS (f)
Common equity Tier 1 (“CET1”) capital ratio	12.4		%	(g)	12.0		%	12.0		%	11.9		%	11.8		%					12.4		%	(g)	11.8		%
Tier 1 capital ratio	14.1			(g)	13.6			13.6			13.5			13.5							14.1			(g)	13.5
Total capital ratio	15.4			(g)	15.1			15.2			15.1			15.1							15.4			(g)	15.1
Tier 1 leverage ratio	8.4			(g)	8.5			8.5			8.6			8.5							8.4			(g)	8.5

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 is from the New York Stock Exchange.


(c)	TBVPS and ROTCE are non-GAAP financial measures. TBVPS 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. TCE is also a non-GAAP financial measure; for a reconciliation of common stockholders’ equity to TCE, see page 9. 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 U.S. rule (“U.S. LCR”). For additional information on HQLA and LCR, see page 160 of the 2015 Annual Report, and page 74 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 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)	Estimated.

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

	QUARTERLY TRENDS																			FULL YEAR
																4Q16 Change										2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015			2015
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,490,972		$	2,521,029		$	2,466,096		$	2,423,808		$	2,351,698		(1	)%	6	%	$	2,490,972		$	2,351,698		6	%
Loans:
Consumer, excluding credit card loans	364,644			363,796			361,305			354,192			344,821			—		6		364,644			344,821			6
Credit card loans	141,816			133,435			131,591			126,090			131,463			6		8		141,816			131,463			8
Wholesale loans	388,305			390,823			379,908			367,031			361,015			(1	)	8		388,305			361,015			8
Total Loans	894,765			888,054			872,804			847,313			837,299			1		7		894,765			837,299			7
Core loans (a)	806,152			795,077			775,813			746,196			732,093			1		10		806,152			732,093			10
Core loans (average) (a)	799,698			779,383			760,721			737,297			715,282			3		12		769,385			670,757			15

Deposits:
U.S. offices:
Noninterest-bearing	400,831			409,912			393,294			383,282			392,721			(2	)	2		400,831			392,721			2
Interest-bearing	737,949			722,294			695,763			695,667			663,004			2		11		737,949			663,004			11
Non-U.S. offices:
Noninterest-bearing	14,764			19,397			20,980			20,913			18,921			(24	)	(22	)	14,764			18,921			(22	)
Interest-bearing	221,635			224,535			220,921			221,954			205,069			(1	)	8		221,635			205,069			8
Total deposits	1,375,179			1,376,138			1,330,958			1,321,816			1,279,715			—		7		1,375,179			1,279,715			7

Long-term debt (b)	295,245			309,418			295,627			290,754			288,651			(5	)	2		295,245			288,651			2
Common stockholders’ equity	228,122			228,263			226,355			224,089			221,505			—		3		228,122			221,505			3
Total stockholders’ equity	254,190			254,331			252,423			250,157			247,573			—		3		254,190			247,573			3

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

Headcount	243,355			242,315			240,046			237,420			234,598			—		4		243,355			234,598			4

95% CONFIDENCE LEVEL - TOTAL VaR
Average VaR (c)	$	40		$	43		$	45		$	54		$	49		(7	)	(18	)	$	45		$	47		(4	)

LINE OF BUSINESS NET REVENUE (d)
Consumer & Community Banking	$	11,019		$	11,328		$	11,451		$	11,117		$	11,222		(3	)	(2	)	$	44,915		$	43,820		2
Corporate & Investment Bank	8,461			9,455			9,165			8,135			7,069			(11	)	20		35,216			33,542			5
Commercial Banking	1,963			1,870			1,817			1,803			1,760			5		12		7,453			6,885			8
Asset Management	3,087			3,047			2,939			2,972			3,045			1		1		12,045			12,119			(1	)
Corporate	(197		)	(188		)	(158		)	56			651			(5	)	NM		(487		)	267			NM
TOTAL NET REVENUE	$	24,333		$	25,512		$	25,214		$	24,083		$	23,747		(5	)	2		$	99,142		$	96,633		3

LINE OF BUSINESS NET INCOME
Consumer & Community Banking	$	2,364		$	2,204		$	2,656		$	2,490		$	2,407		7		(2	)	$	9,714		$	9,789		(1	)
Corporate & Investment Bank	3,431			2,912			2,493			1,979			1,748			18		96		10,815			8,090			34
Commercial Banking	687			778			696			496			550			(12	)	25		2,657			2,191			21
Asset Management	586			557			521			587			507			5		16		2,251			1,935			16
Corporate	(341		)	(165		)	(166		)	(32		)	222			(107	)	NM		(704		)	2,437			NM
NET INCOME	$	6,727		$	6,286		$	6,200		$	5,520		$	5,434		7		24		$	24,733		$	24,442		1


(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 $212.6 billion, $226.8 billion, $220.6 billion, $216.1 billion and $211.8 billion for the periods ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively.

(c)

As part of the Firm’s continuous evaluation and periodic enhancement of its market risk measures, during the third quarter of 2016 the Firm refined the scope of positions included in risk management VaR. In particular, certain private equity positions in the Corporate & Investment Bank ("CIB"), exposure arising from non-U.S. dollar-denominated funding activities in Corporate, as well as seed capital investments in Asset Management were removed from the VaR calculation. Commencing with the third quarter of 2016, exposure arising from these positions is captured using other sensitivity-based measures, such as a 10% decline in market value or a 1 basis point parallel shift in spreads, as appropriate. The Firm believes this refinement to its reported VaR measures more appropriately captures the risk of its market risk sensitive instruments. In the absence of these refinements, the average Total VaR, without diversification, would have been higher by the following amounts: $6 million and $7 million for the three months ended December 31, 2016 and September 30, 2016, respectively, and $3 million for full year 2016. For information regarding CIB VaR, see page 17.


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

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

	QUARTERLY TRENDS																			FULL YEAR
																4Q16 Change											2016 Change
REVENUE	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015				2015
Investment banking fees	$	1,605		$	1,866		$	1,644		$	1,333		$	1,520		(14	)%	6	%	$	6,448		$	6,751			(4	)%
Principal transactions	2,460			3,451			2,976			2,679			1,552			(29	)	59		11,566			10,408				11
Lending- and deposit-related fees	1,484			1,484			1,403			1,403			1,450			—		2		5,774			5,694				1
Asset management, administration and commissions	3,689			3,597			3,681			3,624			3,842			3		(4	)	14,591			15,509				(6	)
Securities gains	5			64			21			51			73			(92	)	(93	)	141			202				(30	)
Mortgage fees and related income	511			624			689			667			556			(18	)	(8	)	2,491			2,513				(1	)
Card income	918			1,202			1,358			1,301			1,431			(24	)	(36	)	4,779			5,924				(19	)
Other income	951			782			1,261			801			1,236			22		(23	)	3,795			3,032				25
Noninterest revenue	11,623			13,070			13,033			11,859			11,660			(11	)	—		49,585			50,033				(1	)
Interest income	14,466			14,070			13,813			13,552			13,155			3		10		55,901			50,973				10
Interest expense	2,713			2,467			2,466			2,172			1,930			10		41		9,818			7,463				32
Net interest income	11,753			11,603			11,347			11,380			11,225			1		5		46,083			43,510				6
TOTAL NET REVENUE	23,376			24,673			24,380			23,239			22,885			(5	)	2		95,668			93,543				2

Provision for credit losses	864			1,271			1,402			1,824			1,251			(32	)	(31	)	5,361			3,827				40

NONINTEREST EXPENSE
Compensation expense	6,872			7,669			7,778			7,660			6,693			(10	)	3		29,979			29,750				1
Occupancy expense	957			899			899			883			947			6		1		3,638			3,768				(3	)
Technology, communications and equipment expense	1,822			1,741			1,665			1,618			1,657			5		10		6,846			6,193				11
Professional and outside services	1,742			1,665			1,700			1,548			1,824			5		(4	)	6,655			7,002				(5	)
Marketing	697			825			672			703			771			(16	)	(10	)	2,897			2,708				7
Other expense (a)	1,743			1,664			924			1,425			2,371			5		(26	)	5,756			9,593				(40	)
TOTAL NONINTEREST EXPENSE	13,833			14,463			13,638			13,837			14,263			(4	)	(3	)	55,771			59,014				(5	)
Income before income tax expense	8,679			8,939			9,340			7,578			7,371			(3	)	18		34,536			30,702				12
Income tax expense	1,952			2,653			3,140			2,058			1,937			(26	)	1		9,803			6,260			(d)	57
NET INCOME	$	6,727		$	6,286		$	6,200		$	5,520		$	5,434		7		24		$	24,733		$	24,442			1

NET INCOME PER COMMON SHARE DATA
Basic earnings per share	$	1.73		$	1.60		$	1.56		$	1.36		$	1.34		8		29		$	6.24		$	6.05			3
Diluted earnings per share	1.71			1.58			1.55			1.35			1.32			8		30		6.19			6.00				3

FINANCIAL RATIOS
Return on common equity (b)	11		%	10		%	10		%	9		%	9		%					10		%	11		%
Return on tangible common equity (b)(c)	14			13			13			12			11							13			13
Return on assets (b)	1.06			1.01			1.02			0.93			0.90							1.00			0.99
Effective income tax rate	22.5			29.7			33.6			27.2			26.3							28.4			20.4			(d)
Overhead ratio	59			59			56			60			62							58			63

See notes 1 and 2 on page 28.


(a)	Included Firmwide legal expense/(benefit) of $230 million, $(71) million, $(430) million, $(46) million and $644 million for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively; and $(317) million and $3.0 billion for the full year 2016 and 2015, respectively.


(b)	Quarterly ratios are based upon annualized amounts.


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


(d)	The full year 2015 reflected tax benefits of $2.9 billion, which reduced the Firm’s effective tax rate by 9.4 percentage points. 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.

Page 4



JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
																Dec 31, 2016
																Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,
	2016			2016			2016			2016			2015			2016		2015
ASSETS
Cash and due from banks	$	23,873		$	21,390		$	19,710		$	18,212		$	20,490		12	%	17	%
Deposits with banks	365,762			396,200			345,595			360,196			340,015			(8	)	8
Federal funds sold and securities purchased under
resale agreements	229,967			232,637			237,267			223,220			212,575			(1	)	8
Securities borrowed	96,409			109,197			103,225			102,937			98,721			(12	)	(2	)
Trading assets:
Debt and equity instruments	308,052			309,258			302,347			295,944			284,162			—		8
Derivative receivables	64,078			65,579			78,446			70,209			59,677			(2	)	7
Securities	289,059			272,401			278,610			285,323			290,827			6		(1	)
Loans	894,765			888,054			872,804			847,313			837,299			1		7
Less: Allowance for loan losses	13,776			14,204			14,227			13,994			13,555			(3	)	2
Loans, net of allowance for loan losses	880,989			873,850			858,577			833,319			823,744			1		7
Accrued interest and accounts receivable	52,330			64,333			64,911			57,649			46,605			(19	)	12
Premises and equipment	14,131			14,208			14,262			14,195			14,362			(1	)	(2	)
Goodwill	47,288			47,302			47,303			47,310			47,325			—		—
Mortgage servicing rights	6,096			4,937			5,072			5,658			6,608			23		(8	)
Other intangible assets	862			887			917			940			1,015			(3	)	(15	)
Other assets	112,076			108,850			109,854			108,696			105,572			3		6
TOTAL ASSETS	$	2,490,972		$	2,521,029		$	2,466,096		$	2,423,808		$	2,351,698		(1	)	6

LIABILITIES
Deposits	$	1,375,179		$	1,376,138		$	1,330,958		$	1,321,816		$	1,279,715		—		7
Federal funds purchased and securities loaned or sold
under repurchase agreements	165,666			168,491			166,044			160,999			152,678			(2	)	9
Commercial paper	11,738			12,258			17,279			17,490			15,562			(4	)	(25	)
Other borrowed funds	22,705			24,479			19,945			19,703			21,105			(7	)	8
Trading liabilities:
Debt and equity instruments	87,428			95,126			101,194			87,963			74,107			(8	)	18
Derivative payables	49,231			48,143			57,764			59,319			52,790			2		(7	)
Accounts payable and other liabilities	190,543			190,412			184,635			176,934			177,638			—		7
Beneficial interests issued by consolidated VIEs	39,047			42,233			40,227			38,673			41,879			(8	)	(7	)
Long-term debt	295,245			309,418			295,627			290,754			288,651			(5	)	2
TOTAL LIABILITIES	2,236,782			2,266,698			2,213,673			2,173,651			2,104,125			(1	)	6

STOCKHOLDERS’ EQUITY
Preferred stock	26,068			26,068			26,068			26,068			26,068			—		—
Common stock	4,105			4,105			4,105			4,105			4,105			—		—
Additional paid-in capital	91,627			92,103			91,974			91,782			92,500			(1	)	(1	)
Retained earnings	162,440			157,870			153,749			149,730			146,420			3		11
Accumulated other comprehensive income/(loss)	(1,175		)	1,474			1,618			782			192			NM		NM
Shares held in RSU Trust, at cost	(21		)	(21		)	(21		)	(21		)	(21		)	—		—
Treasury stock, at cost	(28,854		)	(27,268		)	(25,070		)	(22,289		)	(21,691		)	(6	)	(33	)
TOTAL STOCKHOLDERS’ EQUITY	254,190			254,331			252,423			250,157			247,573			—		3
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,490,972		$	2,521,029		$	2,466,096		$	2,423,808		$	2,351,698		(1	)	6

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																								FULL YEAR
																					4Q16 Change												2016 Change
AVERAGE BALANCES	4Q16				3Q16				2Q16				1Q16				4Q15				3Q16		4Q15		2016				2015				2015
ASSETS
Deposits with banks	$	415,817			$	409,176			$	379,001			$	364,200			$	382,098			2	%	9	%	$	392,160			$	427,963			(8	)%
Federal funds sold and securities purchased under
resale agreements	217,907				196,657				201,871				204,992				202,205				11		8		205,368				206,637				(1	)
Securities borrowed	103,928				102,790				101,669				103,461				104,672				1		(1	)	102,964				105,273				(2	)
Trading assets - debt instruments	218,272				219,816				215,780				208,315				204,365				(1	)	7		215,565				206,385				4
Securities	280,087				272,993				280,041				284,488				297,648				3		(6	)	279,387				315,855				(12	)
Loans	890,511				874,396				859,727				840,526				823,057				2		8		866,378				787,318				10
Other assets (a)	39,025				40,665				41,436				38,001				37,012				(4	)	5		39,782				38,811				3
Total interest-earning assets	2,165,547				2,116,493				2,079,525				2,043,983				2,051,057				2		6		2,101,604				2,088,242				1
Trading assets - equity instruments	98,427				98,714				99,626				85,280				95,609				—		3		95,528				105,489				(9	)
Trading assets - derivative receivables	70,580				72,520				69,823				70,651				66,043				(3	)	7		70,897				73,290				(3	)
All other noninterest-earning assets	197,903				189,235				192,215				195,007				195,544				5		1		193,590				202,388				(4	)
TOTAL ASSETS	$	2,532,457			$	2,476,962			$	2,441,189			$	2,394,921			$	2,408,253			2		5		$	2,461,619			$	2,469,409			—
LIABILITIES
Interest-bearing deposits	$	959,779			$	929,122			$	915,295			$	884,082			$	864,878			3		11		$	922,192			$	872,572			6
Federal funds purchased and securities loaned or
sold under repurchase agreements	186,579				180,098				176,855				171,246				181,995				4		3		178,720				192,510				(7	)
Commercial paper	11,263				13,798				17,462				17,537				17,952				(18	)	(37	)	15,001				38,140				(61	)
Trading liabilities - debt, short-term and other liabilities (b)	202,979				196,247				200,141				196,233				196,154				3		3		198,904				207,810				(4	)
Beneficial interests issued by consolidated VIEs	39,985				42,462				38,411				39,839				44,774				(6	)	(11	)	40,180				49,200				(18	)
Long-term debt	301,989				300,295				291,726				288,160				290,083				1		4		295,573				284,940				4
Total interest-bearing liabilities	1,702,574				1,662,022				1,639,890				1,597,097				1,595,836				2		7		1,650,570				1,645,172				—
Noninterest-bearing deposits	414,266				408,853				400,671				399,186				412,575				1		—		405,776				423,216				(4	)
Trading liabilities - equity instruments	21,411				22,262				20,747				18,504				16,806				(4	)	27		20,737				17,282				20
Trading liabilities - derivative payables	54,548				54,552				54,048				60,591				57,053				—		(4	)	55,927				64,716				(14	)
All other noninterest-bearing liabilities	87,180				77,116				75,336				71,914				80,366				13		8		77,910				79,293				(2	)
TOTAL LIABILITIES	2,279,979				2,224,805				2,190,692				2,147,292				2,162,636				2		5		2,210,920				2,229,679				(1	)
Preferred stock	26,068				26,068				26,068				26,068				26,068				—		—		26,068				24,040				8
Common stockholders’ equity	226,410				226,089				224,429				221,561				219,549				—		3		224,631				215,690				4
TOTAL STOCKHOLDERS’ EQUITY	252,478				252,157				250,497				247,629				245,617				—		3		250,699				239,730				5
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,532,457			$	2,476,962			$	2,441,189			$	2,394,921			$	2,408,253			2		5		$	2,461,619			$	2,469,409			—

AVERAGE RATES (c)
INTEREST-EARNING ASSETS
Deposits with banks	0.47			%	0.44			%	0.49			%	0.51			%	0.32			%					0.48			%	0.29			%
Federal funds sold and securities purchased under
resale agreements	1.04				1.14				1.15				1.09				0.83								1.10				0.77
Securities borrowed (d)	(0.20		)		(0.35		)		(0.38		)		(0.36		)		(0.51		)						(0.32		)		(0.50		)
Trading assets - debt instruments	3.40				3.46				3.50				3.31				3.16								3.42				3.24
Securities	2.87				2.95				2.95				2.98				3.11								2.94				2.88
Loans	4.30				4.23				4.22				4.26				4.20								4.26				4.23
Other assets (a)	2.57				2.14				2.06				2.04				1.71								2.20				1.68
Total interest-earning assets	2.71				2.70				2.73				2.72				2.60								2.72				2.49

INTEREST-BEARING LIABILITIES
Interest-bearing deposits	0.16				0.15				0.14				0.15				0.13								0.15				0.14
Federal funds purchased and securities loaned or
sold under repurchase agreements	0.56				0.63				0.64				0.61				0.36								0.61				0.32
Commercial paper	1.09				0.97				0.88				0.75				0.49								0.90				0.29
Trading liabilities - debt, short-term and other liabilities (b)	0.67				0.58				0.63				0.47				0.33								0.59				0.30
Beneficial interests issued by consolidated VIEs	1.37				1.26				1.24				1.14				0.99								1.25				0.88
Long-term debt	2.06				1.84				1.92				1.70				1.62								1.88				1.56
Total interest-bearing liabilities	0.63				0.59				0.60				0.55				0.48								0.59				0.45

INTEREST RATE SPREAD	2.08			%	2.11			%	2.13			%	2.17			%	2.12			%					2.13			%	2.04			%
NET YIELD ON INTEREST-EARNING ASSETS	2.22			%	2.24			%	2.25			%	2.30			%	2.23			%					2.25			%	2.14			%


(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																			FULL YEAR
																4Q16 Change										2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015			2015
OTHER INCOME
Other income - reported	$	951		$	782		$	1,261		$	801		$	1,236		22	%	(23	)%	$	3,795		$	3,032		25	%
Fully taxable-equivalent adjustments (a)	645			540			529			551			575			19		12		2,265			1,980			14
Other income - managed	$	1,596		$	1,322		$	1,790		$	1,352		$	1,811		21		(12	)	$	6,060		$	5,012		21

TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported	$	11,623		$	13,070		$	13,033		$	11,859		$	11,660		(11	)	—		$	49,585		$	50,033		(1	)
Fully taxable-equivalent adjustments (a)	645			540			529			551			575			19		12		2,265			1,980			14
Total noninterest revenue - managed	$	12,268		$	13,610		$	13,562		$	12,410		$	12,235		(10	)	—		$	51,850		$	52,013		—

NET INTEREST INCOME
Net interest income - reported	$	11,753		$	11,603		$	11,347		$	11,380		$	11,225		1		5		$	46,083		$	43,510		6
Fully taxable-equivalent adjustments (a)	312			299			305			293			287			4		9		1,209			1,110			9
Net interest income - managed	$	12,065		$	11,902		$	11,652		$	11,673		$	11,512		1		5		$	47,292		$	44,620		6

TOTAL NET REVENUE
Total net revenue - reported	$	23,376		$	24,673		$	24,380		$	23,239		$	22,885		(5	)	2		$	95,668		$	93,543		2
Fully taxable-equivalent adjustments (a)	957			839			834			844			862			14		11		3,474			3,090			12
Total net revenue - managed	$	24,333		$	25,512		$	25,214		$	24,083		$	23,747		(5	)	2		$	99,142		$	96,633		3

PRE-PROVISION PROFIT
Pre-provision profit - reported	$	9,543		$	10,210		$	10,742		$	9,402		$	8,622		(7	)	11		$	39,897		$	34,529		16
Fully taxable-equivalent adjustments (a)	957			839			834			844			862			14		11		3,474			3,090			12
Pre-provision profit - managed	$	10,500		$	11,049		$	11,576		$	10,246		$	9,484		(5	)	11		$	43,371		$	37,619		15

INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported	$	8,679		$	8,939		$	9,340		$	7,578		$	7,371		(3	)	18		$	34,536		$	30,702		12
Fully taxable-equivalent adjustments (a)	957			839			834			844			862			14		11		3,474			3,090			12
Income before income tax expense - managed	$	9,636		$	9,778		$	10,174		$	8,422		$	8,233		(1	)	17		$	38,010		$	33,792		12

INCOME TAX EXPENSE
Income tax expense/(benefit) - reported	$	1,952		$	2,653		$	3,140		$	2,058		$	1,937		(26	)	1		$	9,803		$	6,260		57
Fully taxable-equivalent adjustments (a)	957			839			834			844			862			14		11		3,474			3,090			12
Income tax expense - managed	$	2,909		$	3,492		$	3,974		$	2,902		$	2,799		(17	)	4		$	13,277		$	9,350		42

OVERHEAD RATIO
Overhead ratio - reported	59		%	59		%	56		%	60		%	62		%					58		%	63		%
Overhead ratio - managed	57			57			54			57			60							56			61

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																			FULL YEAR
																4Q16 Change										2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015			2015
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking	$	11,019		$	11,328		$	11,451		$	11,117		$	11,222		(3	)%	(2	)%	$	44,915		$	43,820		2	%
Corporate & Investment Bank	8,461			9,455			9,165			8,135			7,069			(11	)	20		35,216			33,542			5
Commercial Banking	1,963			1,870			1,817			1,803			1,760			5		12		7,453			6,885			8
Asset Management	3,087			3,047			2,939			2,972			3,045			1		1		12,045			12,119			(1	)
Corporate	(197		)	(188		)	(158		)	56			651			(5	)	NM		(487		)	267			NM
TOTAL NET REVENUE	$	24,333		$	25,512		$	25,214		$	24,083		$	23,747		(5	)	2		$	99,142		$	96,633		3

TOTAL NONINTEREST EXPENSE
Consumer & Community Banking	$	6,303		$	6,510		$	6,004		$	6,088		$	6,272		(3	)	—		$	24,905		$	24,909		—
Corporate & Investment Bank	4,172			4,934			5,078			4,808			4,436			(15	)	(6	)	18,992			21,361			(11	)
Commercial Banking	744			746			731			713			750			—		(1	)	2,934			2,881			2
Asset Management	2,175			2,130			2,098			2,075			2,196			2		(1	)	8,478			8,886			(5	)
Corporate	439			143			(273		)	153			609			207		(28	)	462			977			(53	)
TOTAL NONINTEREST EXPENSE	$	13,833		$	14,463		$	13,638		$	13,837		$	14,263		(4	)	(3	)	$	55,771		$	59,014		(5	)

PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking	$	4,716		$	4,818		$	5,447		$	5,029		$	4,950		(2	)	(5	)	$	20,010		$	18,911		6
Corporate & Investment Bank	4,289			4,521			4,087			3,327			2,633			(5	)	63		16,224			12,181			33
Commercial Banking	1,219			1,124			1,086			1,090			1,010			8		21		4,519			4,004			13
Asset Management	912			917			841			897			849			(1	)	7		3,567			3,233			10
Corporate	(636		)	(331		)	115			(97		)	42			(92	)	NM		(949		)	(710		)	(34	)
PRE-PROVISION PROFIT	$	10,500		$	11,049		$	11,576		$	10,246		$	9,484		(5	)	11		$	43,371		$	37,619		15

PROVISION FOR CREDIT LOSSES
Consumer & Community Banking	$	949		$	1,294		$	1,201		$	1,050		$	1,038		(27	)	(9	)	$	4,494		$	3,059		47
Corporate & Investment Bank	(198		)	67			235			459			81			NM		NM		563			332			70
Commercial Banking	124			(121		)	(25		)	304			117			NM		6		282			442			(36	)
Asset Management	(11		)	32			(8		)	13			17			NM		NM		26			4			NM
Corporate	—			(1		)	(1		)	(2		)	(2		)	100		100		(4		)	(10		)	60
PROVISION FOR CREDIT LOSSES	$	864		$	1,271		$	1,402		$	1,824		$	1,251		(32	)	(31	)	$	5,361		$	3,827		40

NET INCOME/(LOSS)
Consumer & Community Banking	$	2,364		$	2,204		$	2,656		$	2,490		$	2,407		7		(2	)	$	9,714		$	9,789		(1	)
Corporate & Investment Bank	3,431			2,912			2,493			1,979			1,748			18		96		10,815			8,090			34
Commercial Banking	687			778			696			496			550			(12	)	25		2,657			2,191			21
Asset Management	586			557			521			587			507			5		16		2,251			1,935			16
Corporate	(341		)	(165		)	(166		)	(32		)	222			(107	)	NM		(704		)	2,437			NM
TOTAL NET INCOME	$	6,727		$	6,286		$	6,200		$	5,520		$	5,434		7		24		$	24,733		$	24,442		1

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)

																	Dec 31, 2016
																	Change				FULL YEAR
	Dec 31,				Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,						2016 Change
	2016				2016			2016			2016			2015			2016		2015		2016		2015		2015
CAPITAL (a)
Risk-based capital metrics
Standardized Transitional
CET1 capital	$	182,967		(f)	$	181,606		$	179,593		$	177,531		$	175,398		1	%	4	%
Tier 1 capital	208,118			(f)	206,430			204,390			202,399			200,482			1		4
Total capital	239,559			(f)	241,004			238,999			236,954			234,413			(1	)	2
Risk-weighted assets	1,466,370			(f)	1,480,291			1,469,430			1,470,741			1,465,262			(1	)	—
CET1 capital ratio	12.5		%	(f)	12.3		%	12.2		%	12.1		%	12.0		%
Tier 1 capital ratio	14.2			(f)	13.9			13.9			13.8			13.7
Total capital ratio	16.3			(f)	16.3			16.3			16.1			16.0

Advanced Transitional
CET1 capital	$	182,967		(f)	181,606			179,593			177,531			175,398			1		4
Tier 1 capital	208,118			(f)	206,430			204,390			202,399			200,482			1		4
Total capital	228,528			(f)	229,324			227,865			226,190			224,616			—		2
Risk-weighted assets	1,479,374			(f)	1,515,177			1,497,509			1,497,870			1,485,336			(2	)	—
CET1 capital ratio	12.4		%	(f)	12.0		%	12.0		%	11.9		%	11.8		%
Tier 1 capital ratio	14.1			(f)	13.6			13.6			13.5			13.5
Total capital ratio	15.4			(f)	15.1			15.2			15.1			15.1

Leverage-based capital metrics
Adjusted average assets (b)	$	2,484,637		(f)	$	2,427,423		$	2,391,819		$	2,345,926		$	2,358,471		2		5
Tier 1 leverage ratio	8.4		%	(f)	8.5		%	8.5		%	8.6		%	8.5		%
SLR leverage exposure (c)	$	3,192,582		(f)	$	3,140,733		3,094,545			3,047,558			3,079,797			2		4
SLR (c)	6.5		%	(f)	6.6		%	6.6		%	6.6		%	6.5		%

TANGIBLE COMMON EQUITY (period-end) (d)
Common stockholders’ equity	$	228,122			$	228,263		$	226,355		$	224,089		$	221,505		—		3
Less: Goodwill	47,288				47,302			47,303			47,310			47,325			—		—
Less: Other intangible assets	862				887			917			940			1,015			(3	)	(15	)
Add: Deferred tax liabilities (e)	3,230				3,232			3,220			3,205			3,148			—		3
Total tangible common equity	$	183,202			$	183,306		$	181,355		$	179,044		$	176,313		—		4

TANGIBLE COMMON EQUITY (average) (d)
Common stockholders’ equity	$	226,410			$	226,089		$	224,429		$	221,561		$	219,549		—		3		$	224,631	$	215,690	4
Less: Goodwill	47,296				47,302			47,309			47,332			47,377			—		—		47,310		47,445		—
Less: Other intangible assets	873				903			928			985			1,030			(3	)	(15	)	922		1,092		(16	)
Add: Deferred tax liabilities (e)	3,231				3,226			3,213			3,177			3,127			—		3		3,212		2,964		8
Total tangible common equity	$	181,472			$	181,110		$	179,405		$	176,421		$	174,269		—		4		$	179,611	$	170,117	6

INTANGIBLE ASSETS (period-end)
Goodwill	$	47,288			$	47,302		$	47,303		$	47,310		$	47,325		—		—
Mortgage servicing rights	6,096				4,937			5,072			5,658			6,608			23		(8	)
Other intangible assets	862				887			917			940			1,015			(3	)	(15	)
Total intangible assets	$	54,246			$	53,126		$	53,292		$	53,908		$	54,948		2		(1	)

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 67–73 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 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																			FULL YEAR
																4Q16 Change										2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015			2015
EARNINGS PER SHARE
Basic earnings per share
Net income	$	6,727		$	6,286		$	6,200		$	5,520		$	5,434		7	%	24	%	$	24,733		$	24,442		1	%
Less: Preferred stock dividends	412			412			411			412			418			—		(1	)	1,647			1,515			9
Net income applicable to common equity	6,315			5,874			5,789			5,108			5,016			8		26		23,086			22,927			1
Less: Dividends and undistributed earnings allocated to
participating securities	135			127			123			117			108			6		25		503			521			(3	)
Net income applicable to common stockholders	$	6,180		$	5,747		$	5,666		$	4,991		$	4,908		8		26		$	22,583		$	22,406		1

Total weighted-average basic shares outstanding	3,570.7			3,597.4			3,635.8			3,669.9			3,674.2			(1	)	(3	)	3,618.5			3,700.4			(2	)
Net income per share	$	1.73		$	1.60		$	1.56		$	1.36		$	1.34		8		29		$	6.24		$	6.05		3

Diluted earnings per share
Net income applicable to common stockholders	$	6,180		$	5,747		$	5,666		$	4,991		$	4,908		8		26		$	22,583		$	22,406		1
Total weighted-average basic shares outstanding	3,570.7			3,597.4			3,635.8			3,669.9			3,674.2			(1	)	(3	)	3,618.5			3,700.4			(2	)
Add: Employee stock options, stock appreciation rights (“SARs”), warrants and performance share units (“PSUs”)	35.3			32.2			30.7			27.0			30.4			10		16		31.3			32.4			(3	)
Total weighted-average diluted shares outstanding	3,606.0			3,629.6			3,666.5			3,696.9			3,704.6			(1	)	(3	)	3,649.8			3,732.8			(2	)
Net income per share	$	1.71		$	1.58		$	1.55		$	1.35		$	1.32		8		30		$	6.19		$	6.00		3

COMMON DIVIDENDS
Cash dividends declared per share	$	0.48		$	0.48		$	0.48		$	0.44		$	0.44		—		9		$	1.88		$	1.72		9
Dividend payout ratio	28		%	30		%	31		%	32		%	33		%					30		%	28		%

COMMON EQUITY REPURCHASE PROGRAM (a)
Total shares of common stock repurchased	29.8			35.6			45.8			29.2			19.0			(16	)	57		140.4			89.8			56
Average price paid per share of common stock	$	75.56		$	64.46		$	61.93		$	58.17		$	63.92		17		18		$	64.68		$	62.51		3
Aggregate repurchases of common equity	2,251			2,295			2,840			1,696			1,219			(2	)	85		9,082			5,616			62

EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans	2.3			1.3			1.2			22.3			1.1			77		109		27.1			33.8			(20	)
Net impact of employee issuances on stockholders’ equity (b)	$	164		$	226		$	250		$	366		$	252		(27	)	(35	)	$	1,006		$	1,123		(10	)

See notes 1 and 2 on page 28.


(a)	On June 29, 2016, the Firm announced, in connection with the release of its 2016 Comprehensive Capital Analysis and Review 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.

Page 10



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


	QUARTERLY TRENDS																			FULL YEAR
																4Q16 Change										2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015			2015
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	841		$	841		$	780		$	769		$	817		—	%	3	%	$	3,231		$	3,137		3	%
Asset management, administration and commissions	497			531			535			530			524			(6	)	(5	)	2,093			2,172			(4	)
Mortgage fees and related income	510			624			689			667			556			(18	)	(8	)	2,490			2,511			(1	)
Card income	821			1,099			1,253			1,191			1,326			(25	)	(38	)	4,364			5,491			(21	)
All other income	774			773			881			649			815			—		(5	)	3,077			2,281			35
Noninterest revenue	3,443			3,868			4,138			3,806			4,038			(11	)	(15	)	15,255			15,592			(2	)
Net interest income	7,576			7,460			7,313			7,311			7,184			2		5		29,660			28,228			5
TOTAL NET REVENUE	11,019			11,328			11,451			11,117			11,222			(3	)	(2	)	44,915			43,820			2

Provision for credit losses	949			1,294			1,201			1,050			1,038			(27	)	(9	)	4,494			3,059			47

NONINTEREST EXPENSE
Compensation expense	2,468			2,453			2,420			2,382			2,349			1		5		9,723			9,770			—
Noncompensation expense (a)	3,835			4,057			3,584			3,706			3,923			(5	)	(2	)	15,182			15,139			—
TOTAL NONINTEREST EXPENSE	6,303			6,510			6,004			6,088			6,272			(3	)	—		24,905			24,909			—

Income before income tax expense	3,767			3,524			4,246			3,979			3,912			7		(4	)	15,516			15,852			(2	)
Income tax expense	1,403			1,320			1,590			1,489			1,505			6		(7	)	5,802			6,063			(4	)
NET INCOME	$	2,364		$	2,204		$	2,656		$	2,490		$	2,407		7		(2	)	$	9,714		$	9,789		(1	)

REVENUE BY LINE OF BUSINESS
Consumer & Business Banking	$	4,774		$	4,719		$	4,616		$	4,550		$	4,587		1		4		$	18,659		$	17,983		4
Mortgage Banking	1,690			1,874			1,921			1,876			1,680			(10	)	1		7,361			6,817			8
Card, Commerce Solutions & Auto	4,555			4,735			4,914			4,691			4,955			(4	)	(8	)	18,895			19,020			(1	)

MORTGAGE FEES AND RELATED INCOME DETAILS:
Net production revenue	183			247			261			162			123			(26	)	49		853			769			11
Net mortgage servicing revenue (b)	327			377			428			505			433			(13	)	(24	)	1,637			1,742			(6	)
Mortgage fees and related income	$	510		$	624		$	689		$	667		$	556		(18	)	(8	)	$	2,490		$	2,511		(1	)


FINANCIAL RATIOS
ROE	17		%	16		%	20		%	19		%	18		%					18		%	18		%
Overhead ratio	57			57			52			55			56							55			57


(a)	Included operating lease depreciation expense of $549 million, $504 million, $460 million, $432 million and $401 million for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively, and $1.9 billion and $1.4 billion for the full year 2016, and 2015, respectively.


(b)	Included MSR risk management of $(23) million, $38 million, $73 million, $129 million and $4 million for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively, and $217 million and $(117) million for the full year 2016, and 2015, respectively.

Page 11



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

	QUARTERLY TRENDS														FULL YEAR
											4Q16 Change								2016 Change
	4Q16		3Q16		2Q16		1Q16		4Q15		3Q16		4Q15		2016		2015		2015
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	535,310	$	521,276	$	519,187	$	505,071	$	502,652	3	%	6	%	$	535,310	$	502,652	6	%

Loans:
Consumer & Business Banking	24,307		23,846		23,588		22,889		22,730		2		7		24,307		22,730		7
Home equity	50,296		52,445		54,569		56,627		58,734		(4	)	(14	)	50,296		58,734		(14	)
Residential mortgage and other	181,196		181,564		178,670		172,413		164,500		—		10		181,196		164,500		10
Mortgage Banking	231,492		234,009		233,239		229,040		223,234		(1	)	4		231,492		223,234		4
Credit Card	141,816		133,435		131,591		126,090		131,463		6		8		141,816		131,463		8
Auto	65,814		64,512		64,056		62,937		60,255		2		9		65,814		60,255		9
Student	7,057		7,354		7,614		7,890		8,176		(4	)	(14	)	7,057		8,176		(14	)
Total loans	470,486		463,156		460,088		448,846		445,858		2		6		470,486		445,858		6
Core loans (a)	382,608		371,060		364,007		348,802		341,881		3		12		382,608		341,881		12

Deposits	618,337		605,117		586,074		582,026		557,645		2		11		618,337		557,645		11
Equity	51,000		51,000		51,000		51,000		51,000		—		—		51,000		51,000		—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	527,684	$	521,882	$	512,434	$	503,231	$	494,306	1		7		$	516,354	$	472,972	9

Loans:
Consumer & Business Banking	24,040		23,678		23,223		22,775		22,445		2		7		23,431		21,894		7
Home equity	51,393		53,501		55,615		57,717		59,757		(4	)	(14	)	54,545		63,261		(14	)
Residential mortgage and other	182,820		180,669		175,753		168,694		160,925		1		14		177,010		140,294		26
Mortgage Banking	234,213		234,170		231,368		226,411		220,682		—		6		231,555		203,555		14
Credit Card	136,181		132,713		128,396		127,299		127,620		3		7		131,165		125,881		4
Auto	65,286		64,068		63,661		61,252		58,692		2		11		63,573		56,487		13
Student	7,217		7,490		7,757		8,034		8,326		(4	)	(13	)	7,623		8,763		(13	)
Total loans	466,937		462,119		454,405		445,771		437,765		1		7		457,347		416,580		10
Core loans (a)	376,933		367,999		356,380		343,705		331,296		2		14		361,316		301,700		20

Deposits	607,175		593,671		583,115		562,284		545,734		2		11		586,637		530,938		10
Equity	51,000		51,000		51,000		51,000		51,000		—		—		51,000		51,000		—

Headcount	132,802		132,092		131,815		129,925		127,094		1		4		132,802		127,094		4


(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																			FULL YEAR
																4Q16 Change										2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015			2015
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)	$	4,708		$	4,853		$	4,980		$	5,117		$	5,313		(3	)%	(11	)%	$	4,708		$	5,313		(11	)%
Net charge-offs (c)
Consumer & Business Banking	77			71			53			56			76			8		1		257			253			2
Home equity	48			42			35			59			45			14		7		184			283			(35	)
Residential mortgage and other	3			7			3			1			14			(57	)	(79	)	14			2			NM
Mortgage Banking	51			49			38			60			59			4		(14	)	198			285			(31	)
Credit Card	914			838			860			830			774			9		18		3,442			3,122			10
Auto	93			79			46			67			74			18		26		285			214			33
Student	64			32			29			37			55			100		16		162			210			(23	)
Total net charge-offs	$	1,199		$	1,069		$	1,026		$	1,050		$	1,038		12		16		$	4,344		$	4,084		6
Net charge-off rate (c)
Consumer & Business Banking	1.27		%	1.19		%	0.92		%	0.99		%	1.34		%					1.10		%	1.16		%
Home equity (d)	0.50			0.42			0.34			0.55			0.40							0.45			0.60
Residential mortgage and other (d)	0.01			0.02			0.01			—			0.04							0.01			—
Mortgage Banking (d)	0.10			0.10			0.08			0.13			0.13							0.10			0.18
Credit Card (e)	2.67			2.51			2.70			2.62			2.42							2.63			2.51
Auto	0.57			0.49			0.29			0.44			0.50							0.45			0.38
Student	3.53			1.70			1.50			1.85			2.62							2.13			2.40
Total net charge-off rate (d)	1.11			1.00			0.99			1.04			1.04							1.04			1.10

30+ day delinquency rate
Mortgage Banking (f)(g)	1.23		%	1.27		%	1.33		%	1.41		%	1.57		%					1.23		%	1.57		%
Credit Card (h)	1.61			1.53			1.40			1.45			1.43							1.61			1.43
Auto	1.19			1.08			1.16			0.94			1.35							1.19			1.35
Student (i)	1.60			1.81			1.43			1.41			1.81							1.60			1.81
90+ day delinquency rate - Credit Card (h)	0.81			0.75			0.70			0.75			0.72							0.81			0.72

Allowance for loan losses
Consumer & Business Banking	$	753		$	703		$	703		$	703		$	703		7		7		$	753		$	703		7
Mortgage Banking, excluding PCI loans	1,328			1,488			1,488			1,588			1,588			(11	)	(16	)	1,328			1,588			(16	)
Mortgage Banking - PCI loans (c)	2,311			2,618			2,654			2,695			2,742			(12	)	(16	)	2,311			2,742			(16	)
Credit Card	4,034			3,884			3,684			3,434			3,434			4		17		4,034			3,434			17
Auto	474			474			449			399			399			—		19		474			399			19
Student	249			274			274			299			299			(9	)	(17	)	249			299			(17	)
Total allowance for loan losses (c)	$	9,149		$	9,441		$	9,252		$	9,118		$	9,165		(3	)	—		$	9,149		$	9,165		—

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 December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, nonaccrual loans excluded loans 90 or more days past due as follows: (1) mortgage loans insured by U.S. government agencies of $5.0 billion, $5.0 billion, $5.2 billion, $5.7 billion and $6.3 billion, respectively; and (2) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $263 million, $259 million, $252 million, $269 million and $290 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 December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, excluded write-offs in the PCI portfolio of $32 million, $36 million, $41 million, $47 million and $46 million, respectively, and for the full year 2016 and 2015 excluded $156 million and $208 million, respectively. 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 December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, the net charge-off rates including the impact of PCI loans were as follows: (1) home equity of 0.37%, 0.31%, 0.25%, 0.41% and 0.30%, respectively; (2) residential mortgage and other of 0.01%, 0.02%, 0.01%, –% and 0.03%, respectively; (3) Mortgage Banking of 0.09%, 0.08%, 0.07%, 0.11% and 0.11%, respectively; and (4) total CCB of 1.02%, 0.92%, 0.91%, 0.95% and 0.94%, respectively. For the full year 2016 and 2015, the net charge-off rates including the impact of PCI loans were as follows: (1) home equity of 0.34% and 0.45%, respectively; (2) residential mortgage and other of 0.01% and –%, respectively; (3) Mortgage Banking of 0.09% and 0.14%, respectively; and (4) total CCB of 0.95% and 0.99%, respectively.

(e)

Average credit card loans included loans held-for-sale of $96 million, $87 million, $82 million, $72 million and $717 million for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, respectively, and $84 million and $1.6 billion for the full year 2016, and 2015, respectively. These amounts are excluded when calculating the net charge-off rate.


(f)	At December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, excluded mortgage loans insured by U.S. government agencies of $7.0 billion, $7.0 billion, $7.2 billion, $7.6 billion and $8.4 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 9.82%, 10.01%, 10.09%, 10.47% and 11.21% at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, respectively.


(h)	Period-end credit card loans included loans held-for-sale of $105 million, $89 million, $84 million, $78 million and $76 million at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, respectively. These amounts are excluded when calculating delinquency rates.


(i)	Excluded student loans insured by U.S government agencies under FFELP of $468 million, $461 million, $458 million, $471 million and $526 million at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 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																								FULL YEAR
																					4Q16 Change												2016 Change
	4Q16				3Q16				2Q16				1Q16				4Q15				3Q16		4Q15		2016				2015				2015
BUSINESS METRICS
Number of:
Branches	5,258				5,310				5,366				5,385				5,413				(1	)%	(3	)%	5,258				5,413				(3	)%
Active digital customers (in thousands) (a)	43,836				43,657				42,833				42,458				39,242				—		12		43,836				39,242				12
Active mobile customers (in thousands) (b)	26,536				26,047				24,817				23,821				22,810				2		16		26,536				22,810				16

Debit and credit card sales volume (in billions)	$	219.0			$	207.1			$	204.6			$	187.2			$	197.3			6		11		$	817.9			$	753.8			9

Consumer & Business Banking
Average deposits	$	590,653			$	576,573			$	567,415			$	548,447			$	530,611			2		11		$	570,842			$	515,222			11
Deposit margin	1.80			%	1.79			%	1.80			%	1.86			%	1.83			%					1.81			%	1.90			%
Business banking origination volume	$	1,641			$	1,803			$	2,183			$	1,688			$	1,609			(9	)	2		$	7,315			$	6,775			8
Client investment assets	234,532				231,574				224,741				220,004				218,551				1		7		234,532				218,551				7

Mortgage Banking (in billions)
Mortgage origination volume by channel
Retail	$	12.7			$	11.7			$	11.2			$	8.7			$	8.7			9		46		$	44.3			$	36.1			23
Correspondent	16.4				15.4				13.8				13.7				13.8				6		19		59.3				70.3				(16	)
Total mortgage origination volume (c)	$	29.1			$	27.1			$	25.0			$	22.4			$	22.5			7		29		$	103.6			$	106.4			(3	)
Total loans serviced (period-end)	$	846.6			$	863.3			$	880.3			$	898.7			$	910.1			(2	)	(7	)	$	846.6			$	910.1			(7	)
Third-party mortgage loans serviced (period-end)	591.5				609.2				629.9				655.4				674.0				(3	)	(12	)	591.5				674.0				(12	)
MSR carrying value (period-end)	6.1				4.9				5.1				5.7				6.6				24		(8	)	6.1				6.6				(8	)
Ratio of MSR carrying value (period-end) to third-party mortgage
loans serviced (period-end)	1.03			%	0.80			%	0.81			%	0.87			%	0.98			%					1.03			%	0.98			%
MSR revenue multiple (d)	2.94		x		2.29		x		2.31		x		2.49		x		2.97		x						2.94		x		2.80		x

Credit Card, excluding Commercial Card
Credit card sales volume (in billions)	$	148.5			$	139.2			$	136.0			$	121.7			$	130.8			7		14		$	545.4			$	495.9			10
New accounts opened	2.7				2.7				2.7				2.3				2.5				—		8		10.4				8.7				20

Card Services
Net revenue rate	10.14			%	11.04			%	12.28			%	11.81			%	12.54			%					11.29			%	12.33			%

Commerce Solutions
Merchant processing volume (in billions)	$	284.9			$	267.2			$	263.8			$	247.5			$	258.2			7		10		$	1,063.4			$	949.3			12

Auto
Loan and lease origination volume (in billions)	$	8.0			$	9.3			$	8.5			$	9.6			$	9.2			(14	)	(13	)	$	35.4			$	32.4			9
Average Auto operating lease assets	12,613				11,418				10,435				9,615				8,794				10		43		11,026				7,807				41


(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 $33.5 billion, $30.9 billion, $28.6 billion, $24.4 billion and $24.7 billion for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, respectively, and $117.4 billion and $115.2 billion for the full year 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																			FULL YEAR
																4Q16 Change										2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015			2015
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,612		$	1,855		$	1,636		$	1,321		$	1,538		(13	)%	5	%	$	6,424		$	6,736		(5	)%
Principal transactions	2,372			3,282			2,965			2,470			1,396			(28	)	70		11,089			9,905			12
Lending- and deposit-related fees	400			402			385			394			387			—		3		1,581			1,573			1
Asset management, administration and commissions	1,000			968			1,025			1,069			1,049			3		(5	)	4,062			4,467			(9	)
All other income	242			183			464			280			268			32		(10	)	1,169			1,012			16
Noninterest revenue	5,626			6,690			6,475			5,534			4,638			(16	)	21		24,325			23,693			3
Net interest income	2,835			2,765			2,690			2,601			2,431			3		17		10,891			9,849			11
TOTAL NET REVENUE (a)	8,461			9,455			9,165			8,135			7,069			(11	)	20		35,216			33,542			5

Provision for credit losses	(198		)	67			235			459			81			NM		NM		563			332			70

NONINTEREST EXPENSE
Compensation expense	1,696			2,513			2,737			2,600			1,860			(33	)	(9	)	9,546			9,973			(4	)
Noncompensation expense	2,476			2,421			2,341			2,208			2,576			2		(4	)	9,446			11,388			(17	)
TOTAL NONINTEREST EXPENSE	4,172			4,934			5,078			4,808			4,436			(15	)	(6	)	18,992			21,361			(11	)

Income before income tax expense	4,487			4,454			3,852			2,868			2,552			1		76		15,661			11,849			32
Income tax expense	1,056			1,542			1,359			889			804			(32	)	31		4,846			3,759			29
NET INCOME	$	3,431		$	2,912		$	2,493		$	1,979		$	1,748		18		96		$	10,815		$	8,090		34

FINANCIAL RATIOS
ROE	20		%	17		%	15		%	11		%	10		%					16		%	12		%
Overhead ratio	49			52			55			59			63							54			64
Compensation expense as a percent of total net revenue	20			27			30			32			26							27			30

REVENUE BY BUSINESS
Investment Banking	$	1,487		$	1,740		$	1,492		$	1,231		$	1,470		(15	)	1		$	5,950		$	6,376		(7	)
Treasury Services	950			917			892			884			901			4		5		3,643			3,631			—
Lending	346			283			277			302			390			22		(11	)	1,208			1,461			(17	)
Total Banking	2,783			2,940			2,661			2,417			2,761			(5	)	1		10,801			11,468			(6	)
Fixed Income Markets	3,369			4,334			3,959			3,597			2,574			(22	)	31		15,259			12,592			21
Equity Markets	1,150			1,414			1,600			1,576			1,064			(19	)	8		5,740			5,694			1
Securities Services	887			916			907			881			933			(3	)	(5	)	3,591			3,777			(5	)
Credit Adjustments & Other (b)	272			(149		)	38			(336		)	(263		)	NM		NM		(175		)	11			NM
Total Markets & Investor Services	5,678			6,515			6,504			5,718			4,308			(13	)	32		24,415			22,074			11
TOTAL NET REVENUE	$	8,461		$	9,455		$	9,165		$	8,135		$	7,069		(11	)	20		$	35,216		$	33,542		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 $591 million, $483 million, $476 million, $498 million and $486 million for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively, and $2.0 billion and $1.7 billion for full year 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																			FULL YEAR
																4Q16 Change											2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015				2015
SELECTED BALANCE SHEET DATA (period-end)
Assets	$	803,511		$	825,933		$	826,019		$	801,053		$	748,691		(3	)%	7	%	$	803,511		$	748,691			7	%
Loans:
Loans retained (a)	111,872			117,133			112,637			109,132			106,908			(4	)	5		111,872			106,908				5
Loans held-for-sale and loans at fair value	3,781			4,184			5,600			2,381			3,698			(10	)	2		3,781			3,698				2
Total loans	115,653			121,317			118,237			111,513			110,606			(5	)	5		115,653			110,606				5
Core loans (b)	115,243			120,885			117,821			111,050			110,084			(5	)	5		115,243			110,084				5

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

SELECTED BALANCE SHEET DATA (average)
Assets	$	836,446		$	811,217		$	815,886		$	797,548		$	797,427		3		5		$	815,321		$	824,208			(1	)
Trading assets - debt and equity instruments	304,348			306,431			306,418			285,122			291,958			(1	)	4		300,606			302,514				(1	)
Trading assets - derivative receivables	65,675			63,829			61,457			62,557			59,425			3		11		63,387			67,263				(6	)
Loans:
Loans retained (a)	112,987			110,941			111,668			108,712			101,959			2		11		111,082			98,331				13
Loans held-for-sale and loans at fair value	4,998			3,864			3,169			3,204			4,897			29		2		3,812			4,572				(17	)
Total loans	117,985			114,805			114,837			111,916			106,856			3		10		114,894			102,903				12
Core loans (b)	117,570			114,380			114,421			111,417			106,331			3		11		114,455			102,142			(e)	12

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

Headcount	48,748			49,176			48,805			49,067			49,067			(1	)	(1	)	48,748			49,067				(1	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	29		$	3		$	90		$	46		$	5		NM		480		$	168		$	(19	)		NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)(c)	467			614			623			650			428			(24	)	9		467			428				9
Nonaccrual loans held-for-sale and loans at fair value	109			26			7			7			10			319		NM		109			10				NM
Total nonaccrual loans	576			640			630			657			438			(10	)	32		576			438				32

Derivative receivables	223			232			220			212			204			(4	)	9		223			204				9
Assets acquired in loan satisfactions	79			75			75			62			62			5		27		79			62				27
Total nonperforming assets	878			947			925			931			704			(7	)	25		878			704				25
Allowance for credit losses:
Allowance for loan losses	1,420			1,611			1,669			1,497			1,258			(12	)	13		1,420			1,258				13
Allowance for lending-related commitments	801			837			715			744			569			(4	)	41		801			569				41
Total allowance for credit losses	2,221			2,448			2,384			2,241			1,827			(9	)	22		2,221			1,827				22

Net charge-off/(recovery) rate (a)	0.10		%	0.01		%	0.32		%	0.17		%	0.02		%					0.15		%	(0.02		)%
Allowance for loan losses to period-end loans retained (a)	1.27			1.38			1.48			1.37			1.18							1.27			1.18
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (d)	1.86			2.02			2.23			2.11			1.88							1.86			1.88
Allowance for loan losses to nonaccrual loans retained (a)(c)	304			262			268			230			294							304			294
Nonaccrual loans to total period-end loans	0.50			0.53			0.53			0.59			0.40							0.50			0.40


(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 $113 million, $202 million, $211 million, $233 million and $177 million were held against nonaccrual loans at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 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.


(e)	Prior period amount was revised to conform with current period presentation.

Page 16



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
	QUARTERLY TRENDS																			FULL YEAR
																4Q16 Change										2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015			2015
BUSINESS METRICS
Advisory	$	517		$	542		$	466		$	585		$	622		(5	)%	(17	)%	$	2,110		$	2,133		(1	)%
Equity underwriting	299			370			285			205			314			(19	)	(5	)	1,159			1,434			(19	)
Debt underwriting	796			943			885			531			602			(16	)	32		3,155			3,169			—
Total investment banking fees	$	1,612		$	1,855		$	1,636		$	1,321		$	1,538		(13	)	5		$	6,424		$	6,736		(5	)

Assets under custody (“AUC”) (period-end) (in billions)	$	20,520		$	21,224		$	20,470		$	20,283		$	19,943		(3	)	3		$	20,520		$	19,943		3

Client deposits and other third-party liabilities (average) (a)	390,793			381,542			373,671			358,926			364,794			2		7		376,287			395,297			(5	)

Trade finance loans (period-end)	15,923			16,957			17,362			18,078			19,255			(6	)	(17	)	15,923			19,255			(17	)

95% Confidence Level - Total CIB VaR (average)(b)
CIB trading VaR by risk type: (c)
Fixed income	$	40		$	49		$	46		$	46		$	42		(18	)	(5	)	$	45		$	42		7
Foreign exchange	12			16			12			9			10			(25	)	20		12			9			33
Equities	10			8			14			22			18			25		(44	)	13			18			(28	)
Commodities and other	9			9			9			9			11			—		(18	)	9			10			(10	)
Diversification benefit to CIB trading VaR (d)	(36		)	(42		)	(37		)	(32		)	(31		)	14		(16	)	(36		)	(35		)	(3	)
CIB trading VaR (c)	35			40			44			54			50			(13	)	(30	)	43			44			(2	)
Credit portfolio VaR (e)	12			13			12			12			11			(8	)	9		12			14			(14	)
Diversification benefit to CIB VaR (d)	(8		)	(10		)	(12		)	(11		)	(9		)	20		11		(10		)	(9		)	(11	)
CIB VaR	$	39		$	43		$	44		$	55		$	52		(9	)	(25	)	$	45		$	49		(8	)


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

(b)

Certain private equity positions in CIB were removed from the VaR calculation as a result of the scope refinement as discussed in footnote (c) on page 3. In the absence of this refinement, the average VaR, without diversification, for each of the following reported components would have been higher by the following amounts: CIB Equities VaR of $7 million and $5 million, CIB trading VaR of $4 million and $4 million and CIB VaR of $5 million and $6 million for the three months ended December 31, 2016 and September 30, 2016, respectively, and CIB Equities VaR of $3 million, CIB trading VaR of $2 million and CIB VaR of $3 million for full year 2016.


(c)	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 61-63 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2016.


(d)	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.


(e)	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																					FULL YEAR
																		4Q16 Change										2016 Change
	4Q16			3Q16				2Q16				1Q16			4Q15			3Q16		4Q15		2016			2015			2015
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	230		$	228			$	227			$	232		$	236		1	%	(3	)%	$	917		$	944		(3	)%
Asset management, administration and commissions	15			14				18				22			20			7		(25	)	69			88			(22	)
All other income (a)	355			336				341				302			342			6		4		1,334			1,333			—
Noninterest revenue	600			578				586				556			598			4		—		2,320			2,365			(2	)
Net interest income	1,363			1,292				1,231				1,247			1,162			5		17		5,133			4,520			14
TOTAL NET REVENUE (b)	1,963			1,870				1,817				1,803			1,760			5		12		7,453			6,885			8

Provision for credit losses	124			(121		)		(25		)		304			117			NM		6		282			442			(36	)

NONINTEREST EXPENSE
Compensation expense	333			343				322				334			310			(3	)	7		1,332			1,238			8
Noncompensation expense	411			403				409				379			440			2		(7	)	1,602			1,643			(2	)
TOTAL NONINTEREST EXPENSE	744			746				731				713			750			—		(1	)	2,934			2,881			2

Income before income tax expense	1,095			1,245				1,111				786			893			(12	)	23		4,237			3,562			19
Income tax expense	408			467				415				290			343			(13	)	19		1,580			1,371			15
NET INCOME	$	687		$	778			$	696			$	496		$	550		(12	)	25		$	2,657		$	2,191		21

Revenue by product
Lending	$	994		$	956			$	917			$	928		$	887		4		12		$	3,795		$	3,429		11
Treasury services	730			693				680				694			655			5		11		2,797			2,581			8
Investment banking (c)	220			203				207				155			156			8		41		785			730			8
Other	19			18				13				26			62			6		(69	)	76			145			(48	)
Total Commercial Banking net revenue	$	1,963		$	1,870			$	1,817			$	1,803		$	1,760		5		12		$	7,453		$	6,885		8

Investment banking revenue, gross (d)	$	608		$	600			$	595			$	483		$	455		1		34		$	2,286		$	2,179		5

Revenue by client segment (e)
Middle Market Banking	$	764		$	716			$	698			$	707		$	694		7		10		$	2,885		$	2,706		7
Corporate Client Banking	634			612				599				547			520			4		22		2,392			2,184			10
Commercial Term Lending	355			350				342				361			331			1		7		1,408			1,275			10
Real Estate Banking	128			117				107				104			96			9		33		456			358			27
Other	82			75				71				84			119			9		(31	)	312			362			(14	)
Total Commercial Banking net revenue	$	1,963		$	1,870			$	1,817			$	1,803		$	1,760		5		12		$	7,453		$	6,885		8

FINANCIAL RATIOS
ROE	16		%	18			%	16			%	11		%	15		%					16		%	15		%
Overhead ratio	38			40				40				40			43							39			42


(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 $134 million, $127 million, $124 million, $120 million and $149 million for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, and $505 million and $493 million for full year 2016 and 2015, respectively.


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


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


(e)	Certain clients were transferred from Middle Market Banking to Corporate Client Banking and from Real Estate Banking to Corporate Client Banking effective in the second and third quarter of 2016, respectively. Prior period client segment amounts 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																			FULL YEAR
																4Q16 Change										2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015			2015
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	214,341		$	212,189		$	208,151		$	204,602		$	200,700		1	%	7	%	$	214,341		$	200,700		7	%
Loans:
Loans retained	188,261			185,609			179,164			173,583			167,374			1		12		188,261			167,374			12
Loans held-for-sale and loans at fair value	734			191			134			338			267			284		175		734			267			175
Total loans	$	188,995		$	185,800		$	179,298		$	173,921		$	167,641		2		13		$	188,995		$	167,641		13
Core loans (a)	188,673			185,354			178,809			173,316			166,939			2		13		188,673			166,939			13
Equity	16,000			16,000			16,000			16,000			14,000			—		14		16,000			14,000			14

Period-end loans by client segment (b)
Middle Market Banking	$	53,931		$	53,584		$	51,951		$	51,644		$	50,502		1		7		$	53,931		$	50,502		7
Corporate Client Banking	43,025			43,514			42,372			40,712			37,708			(1	)	14		43,025			37,708			14
Commercial Term Lending	71,249			69,133			66,499			64,292			62,860			3		13		71,249			62,860			13
Real Estate Banking	14,722			13,905			12,872			11,656			11,234			6		31		14,722			11,234			31
Other	6,068			5,664			5,604			5,617			5,337			7		14		6,068			5,337			14
Total Commercial Banking loans	$	188,995		$	185,800		$	179,298		$	173,921		$	167,641		2		13		$	188,995		$	167,641		13

SELECTED BALANCE SHEET DATA (average)
Total assets	$	212,848		$	208,765		$	205,953		$	202,492		$	200,325		2		6		$	207,532		$	198,076		5
Loans:
Loans retained	187,528			180,962			176,229			169,837			165,679			4		13		178,670			157,389			14
Loans held-for-sale and loans at fair value	1,342			517			583			448			188			160		NM		723			492			47
Total loans	$	188,870		$	181,479		$	176,812		$	170,285		$	165,867		4		14		$	179,393		$	157,881		14
Core loans (a)	188,478			181,016			176,251			169,626			165,091			4		14		178,875			156,975			14
Client deposits and other third-party liabilities	180,036			173,696			170,717			173,079			178,637			4		1		174,396			191,529			(9	)
Equity	16,000			16,000			16,000			16,000			14,000			—		14		16,000			14,000			14

Average loans by client segment (b)
Middle Market Banking	$	53,809		$	52,648		$	51,939		$	50,557		$	50,926		2		6		$	52,244		$	50,336		4
Corporate Client Banking	44,387			42,139			41,109			39,348			37,581			5		18		41,754			34,495			21
Commercial Term Lending	70,316			67,696			65,262			63,475			61,574			4		14		66,700			58,138			15
Real Estate Banking	14,452			13,382			12,936			11,464			10,742			8		35		13,063			9,917			32
Other	5,906			5,614			5,566			5,441			5,044			5		17		5,632			4,995			13
Total Commercial Banking loans	$	188,870		$	181,479		$	176,812		$	170,285		$	165,867		4		14		$	179,393		$	157,881		14

Headcount	8,365			8,333			8,127			7,971			7,845			—		7		8,365			7,845			7

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	53		$	44		$	60		$	6		$	16		20		231		$	163		$	21		NM
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (c)	1,149			1,212			1,258			1,257			375			(5	)	206		1,149			375			206
Nonaccrual loans held-for-sale and loans
at fair value	—			—			—			—			18			—		(100	)	—			18			(100	)
Total nonaccrual loans	1,149			1,212			1,258			1,257			393			(5	)	192		1,149			393			192

Assets acquired in loan satisfactions	1			1			1			1			8			—		(88	)	1			8			(88	)
Total nonperforming assets	1,150			1,213			1,259			1,258			401			(5	)	187		1,150			401			187
Allowance for credit losses:
Allowance for loan losses	2,925			2,858			3,041			3,099			2,855			2		2		2,925			2,855			2
Allowance for lending-related commitments	248			244			226			252			198			2		25		248			198			25
Total allowance for credit losses	3,173			3,102			3,267			3,351			3,053			2		4		3,173			3,053			4

Net charge-off/(recovery) rate (d)	0.11		%	0.10		%	0.14		%	0.01		%	0.04		%					0.09		%	0.01		%
Allowance for loan losses to period-end loans retained	1.55			1.54			1.70			1.79			1.71							1.55			1.71
Allowance for loan losses to nonaccrual loans retained (c)	255			236			242			247			761							255			761
Nonaccrual loans to period-end total loans	0.61			0.65			0.70			0.72			0.23							0.61			0.23


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


(b)	Certain clients were transferred from Middle Market Banking to Corporate Client Banking and from Real Estate Banking to Corporate Client Banking effective in the second and third quarter of 2016, respectively. Prior period client segment amounts were revised to conform with the current period presentation.


(c)	Allowance for loan losses of $155 million, $221 million, $292 million, $278 million and $64 million was held against nonaccrual loans retained at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 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																					FULL YEAR
																		4Q16 Change										2016 Change
	4Q16				3Q16			2Q16				1Q16			4Q15			3Q16		4Q15		2016			2015			2015
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	2,209			$	2,087		$	2,102			$	2,016		$	2,328		6	%	(5	)%	$	8,414		$	9,175		(8	)%
All other income	89				190			90				229			46			(53	)	93		598			388			54
Noninterest revenue	2,298				2,277			2,192				2,245			2,374			1		(3	)	9,012			9,563			(6	)
Net interest income	789				770			747				727			671			2		18		3,033			2,556			19
TOTAL NET REVENUE	3,087				3,047			2,939				2,972			3,045			1		1		12,045			12,119			(1	)

Provision for credit losses	(11		)		32			(8		)		13			17			NM		NM		26			4			NM

NONINTEREST EXPENSE
Compensation expense	1,296				1,279			1,249				1,241			1,307			1		(1	)	5,065			5,113			(1	)
Noncompensation expense	879				851			849				834			889			3		(1	)	3,413			3,773			(10	)
TOTAL NONINTEREST EXPENSE	2,175				2,130			2,098				2,075			2,196			2		(1	)	8,478			8,886			(5	)

Income before income tax expense	923				885			849				884			832			4		11		3,541			3,229			10
Income tax expense	337				328			328				297			325			3		4		1,290			1,294			—
NET INCOME	$	586			$	557		$	521			$	587		$	507		5		16		$	2,251		$	1,935		16

REVENUE BY LINE OF BUSINESS
Global Investment Management	$	1,550			$	1,497		$	1,424			$	1,499		$	1,615		4		(4	)	$	5,970		$	6,301		(5	)
Global Wealth Management	1,537				1,550			1,515				1,473			1,430			(1	)	7		6,075			5,818			4
TOTAL NET REVENUE	$	3,087			$	3,047		$	2,939			$	2,972		$	3,045		1		1		$	12,045		$	12,119		(1	)

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

Headcount	21,082				21,142			20,897				20,885			20,975			—		1		21,082			20,975			1

Number of client advisors	2,504				2,560			2,622				2,750			2,778			(2	)	(10	)	2,504			2,778			(10	)

Page 20



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

	QUARTERLY TRENDS																			FULL YEAR
																4Q16 Change										2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015			2015
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	138,384		$	137,295		$	134,380		$	131,276		$	131,451		1	%	5	%	$	138,384		$	131,451		5	%
Loans (a)	118,039			116,043			113,319			111,050			111,007			2		6		118,039			111,007			6
Core loans (b)	118,039			116,043			113,319			111,050			111,007			2		6		118,039			111,007			6
Deposits	161,577			157,274			148,967			152,908			146,766			3		10		161,577			146,766			10
Equity	9,000			9,000			9,000			9,000			9,000			—		—		9,000			9,000			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	135,213		$	134,920		$	131,529		$	129,790		$	130,980		—		3		$	132,875		$	129,743		2
Loans	115,063			114,201			111,704			110,497			110,305			1		4		112,876			107,418			5
Core loans (b)	115,063			114,201			111,704			110,497			110,305			1		4		112,876			107,418			5
Deposits	158,335			153,121			151,214			150,616			145,623			3		9		153,334			149,525			3
Equity	9,000			9,000			9,000			9,000			9,000			—		—		9,000			9,000			—

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	—		$	5		$	2		$	9		$	8		(100	)	(100	)	$	16		$	12		33
Nonaccrual loans	390			372			254			335			218			5		79		390			218			79
Allowance for credit losses:
Allowance for loan losses	274			285			258			270			266			(4	)	3		274			266			3
Allowance for lending-related commitments	4			5			4			4			5			(20	)	(20	)	4			5			(20	)
Total allowance for credit losses	278			290			262			274			271			(4	)	3		278			271			3
Net charge-off/(recovery) rate	—		%	0.02		%	0.01		%	0.03		%	0.03		%					0.01		%	0.01		%
Allowance for loan losses to period-end loans	0.23			0.25			0.23			0.24			0.24							0.23			0.24
Allowance for loan losses to nonaccrual loans	70			77			102			81			122							70			122
Nonaccrual loans to period-end loans	0.33			0.32			0.22			0.30			0.20							0.33			0.20


(a)	Included $32.8 billion, $30.7 billion, $29.2 billion, $27.7 billion, and $26.6 billion of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 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)


																Dec 31, 2016
																Change				FULL YEAR
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,								2016 Change
CLIENT ASSETS	2016			2016			2016			2016			2015			2016		2015		2016			2015			2015
Assets by asset class
Liquidity (a)	$	436		$	403		$	385		$	386		$	430		8	%	1	%	$	436		$	430		1	%
Fixed income (a)	420			437			424			403			376			(4	)	12		420			376			12
Equity	351			357			342			346			353			(2	)	(1	)	351			353			(1	)
Multi-asset and alternatives	564			575			542			541			564			(2	)	—		564			564			—
TOTAL ASSETS UNDER MANAGEMENT	1,771			1,772			1,693			1,676			1,723			—		3		1,771			1,723			3
Custody/brokerage/administration/deposits	682			675			651			647			627			1		9		682			627			9
TOTAL CLIENT ASSETS	$	2,453		$	2,447		$	2,344		$	2,323		$	2,350		—		4		$	2,453		$	2,350		4

Memo:
Alternatives client assets (b)	$	154		$	157		$	151		$	151		$	172		(2	)	(10	)	$	154		$	172		(10	)

Assets by client segment
Private Banking	$	435		$	433		$	425		$	428		$	437		—		—		$	435		$	437		—
Institutional	869			862			811			798			816			1		6		869			816			6
Retail	467			477			457			450			470			(2	)	(1	)	467			470			(1	)
TOTAL ASSETS UNDER MANAGEMENT	$	1,771		$	1,772		$	1,693		$	1,676		$	1,723		—		3		$	1,771		$	1,723		3

Private Banking	$	1,098		$	1,089		$	1,058		$	1,057		$	1,050		1		5		$	1,098		$	1,050		5
Institutional	886			879			827			814			824			1		8		886			824			8
Retail	469			479			459			452			476			(2	)	(1	)	469			476			(1	)
TOTAL CLIENT ASSETS	$	2,453		$	2,447		$	2,344		$	2,323		$	2,350		—		4		$	2,453		$	2,350		4

Assets under management rollforward
Beginning balance	$	1,772		$	1,693		$	1,676		$	1,723		$	1,711						$	1,723		$	1,744
Net asset flows:
Liquidity (a)	35			18			1			(30		)	(1		)					24			—
Fixed income (a)	(6		)	9			13			14			(7		)					30			(8		)
Equity	(12		)	(7		)	(5		)	(5		)	3							(29		)	1
Multi-asset and alternatives	(3		)	21			(2		)	6			(5		)					22			22
Market/performance/other impacts	(15		)	38			10			(32		)	22							1			(36		)
Ending balance	$	1,771		$	1,772		$	1,693		$	1,676		$	1,723						$	1,771		$	1,723

Client assets rollforward
Beginning balance	$	2,447		$	2,344		$	2,323		$	2,350		$	2,323						$	2,350		$	2,387
Net asset flows	21			47			2			(7		)	1							63			27
Market/performance/other impacts	(15		)	56			19			(20		)	26							40			(64		)
Ending balance	$	2,453		$	2,447		$	2,344		$	2,323		$	2,350						$	2,453		$	2,350


(a)	Prior period amounts were revised to conform with current period presentation.


(b)	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																			FULL YEAR
																4Q16 Change											2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015				2015
INCOME STATEMENT
REVENUE
Principal transactions	$	27		$	57		$	29		$	97		$	(56	)	(53	)%	NM		$	210		$	41			412	%
Securities gains	5			64			20			51			72			(92	)	(93	)	140			190				(26	)
All other income (a)	269			76			122			121			571			254		(53	)	588			569				3
Noninterest revenue	301			197			171			269			587			53		(49	)	938			800				17
Net interest income	(498		)	(385		)	(329		)	(213		)	64			(29	)	NM		(1,425		)	(533		)		(167	)
TOTAL NET REVENUE (b)	(197		)	(188		)	(158		)	56			651			(5	)	NM		(487		)	267				NM

Provision for credit losses	—			(1		)	(1		)	(2		)	(2		)	100		100		(4		)	(10		)		60

NONINTEREST EXPENSE (c)	439			143			(273		)	153			609			207		(28	)	462			977				(53	)
Income/(loss) before income tax expense/(benefit)	(636		)	(330		)	116			(95		)	44			(93	)	NM		(945		)	(700		)		(35	)
Income tax expense/(benefit)	(295		)	(165		)	282			(63		)	(178		)	(79	)	(66	)	(241		)	(3,137		)	(h)	92
NET INCOME/(LOSS)	$	(341	)	$	(165	)	$	(166	)	$	(32	)	$	222		(107	)	NM		$	(704	)	$	2,437			NM

MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”)	(256		)	(211		)	(226		)	(94		)	137			(21	)	NM		(787		)	(493		)		(60	)
Other Corporate	59			23			68			150			514			157		(89	)	300			760				(61	)
TOTAL NET REVENUE	$	(197	)	$	(188	)	$	(158	)	$	56		$	651		(5	)	NM		$	(487	)	$	267			NM

NET INCOME/(LOSS)
Treasury and CIO	(197		)	(208		)	(199		)	(111		)	138			5		NM		(715		)	(235		)		(204	)
Other Corporate	(144		)	43			33			79			84			NM		NM		11			2,672				(100	)
TOTAL NET INCOME/(LOSS)	$	(341	)	$	(165	)	$	(166	)	$	(32	)	$	222		(107	)	NM		$	(704	)	$	2,437			NM

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	799,426		$	824,336		$	778,359		$	781,806		$	768,204		(3	)	4		$	799,426		$	768,204			4
Loans	1,592			1,738			1,862			1,983			2,187			(8	)	(27	)	1,592			2,187				(27	)
Core loans (d)(e)	1,589			1,735			1,857			1,978			2,182			(8	)	(27	)	1,589			2,182				(27	)

Headcount	32,358			31,572			30,402			29,572			29,617			2		9		32,358			29,617				9

SUPPLEMENTAL INFORMATION
TREASURY and CIO
Securities gains	$	(3	)	$	64		$	20		$	51		$	72		NM		NM		$	132		$	190			(31	)%
Investment securities portfolio (average) (f)	278,843			271,816			278,962			283,443			296,693			3		(6	)	278,250			314,802				(12	)
Investment securities portfolio (period-end) (g)	286,838			269,207			275,562			282,424			287,777			7		—		286,838			287,777				—
Mortgage loans (average)	1,580			1,722			1,858			2,005			2,221			(8	)	(29	)	1,790			2,501				(28	)
Mortgage loans (period-end)	1,513			1,661			1,798			1,927			2,136			(9	)	(29	)	1,513			2,136				(29	)

Private equity portfolio
Carrying value	$	1,797		$	1,893		$	1,879		$	2,004		$	2,103		(5	)	(15	)	$	1,797		$	2,103			(15	)
Cost	2,649			2,951			2,941			3,512			3,798			(10	)	(30	)	2,649			3,798				(30	)


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


(b)	Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $222 million, $218 million, $227 million, $218 million, and $219 million for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively, and $885 million and $839 million for full year 2016, and 2015, respectively.


(c)	Included legal expense/(benefit) of $165 million, $(85) million, $(467) million and $407 million for the three months ended December 31, 2016, September 30, 2016, June 30, 2016 and December 31, 2015, respectively; and $(385) million and $832 million for full year 2016, and 2015, respectively. Legal expense/(benefit) for the three months ended March 31, 2016 was not material.


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


(e)	Average core loans were $1.7 billion, $1.8 billion, $2.0 billion, $2.1 billion, and $2.3 billion for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively, and $1.9 billion and $2.5 billion for full year 2016 and 2015, respectively.


(f)	Average investment securities included held-to-maturity balances of $50.9 billion, $52.8 billion, $53.4 billion, $48.3 billion, and $49.5 billion for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively, and $51.4 billion and $50.0 billion for full year 2016, and 2015, respectively.


(g)	Period-end investment securities included held-to-maturity balances of $50.2 billion, $52.0 billion, $53.8 billion, $47.9 billion, and $49.1 billion at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively.


(h)	Full year 2015 reflected tax benefits of $2.6 billion due to the resolution of various tax audits.

Page 23



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
											Dec 31, 2016
											Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Dec 31,
	2016		2016		2016		2016		2015		2016		2015
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained, excluding PCI loans	$	328,727	$	326,353	$	322,690	$	314,128	$	303,357	1	%	8	%
Loans - PCI	35,679		37,045		38,360		39,743		40,998		(4	)	(13	)
Total loans retained	364,406		363,398		361,050		353,871		344,355		—		6
Loans held-for-sale	238		398		255		321		466		(40	)	(49	)
Total consumer, excluding credit card loans	364,644		363,796		361,305		354,192		344,821		—		6

Credit card loans
Loans retained	141,711		133,346		131,507		126,012		131,387		6		8
Loans held-for-sale	105		89		84		78		76		18		38
Total credit card loans	141,816		133,435		131,591		126,090		131,463		6		8
Total consumer loans	506,460		497,231		492,896		480,282		476,284		2		6

Wholesale loans (b)
Loans retained	383,790		386,449		374,174		364,312		357,050		(1	)	7
Loans held-for-sale and loans at fair value	4,515		4,374		5,734		2,719		3,965		3		14
Total wholesale loans	388,305		390,823		379,908		367,031		361,015		(1	)	8

Total loans	894,765		888,054		872,804		847,313		837,299		1		7
Derivative receivables	64,078		65,579		78,446		70,209		59,677		(2	)	7
Receivables from customers and other (c)	17,560		19,163		14,426		16,294		13,497		(8	)	30
Total credit-related assets	976,403		972,796		965,676		933,816		910,473		—		7

Lending-related commitments
Consumer, excluding credit card	54,797		59,990		59,224		60,744		58,478		(9	)	(6	)
Credit card	553,891		549,634		539,105		532,224		515,518		1		7
Wholesale	368,014		368,987		357,145		367,466		366,399		—		—
Total lending-related commitments	976,702		978,611		955,474		960,434		940,395		—		4

Total credit exposure	$	1,953,105	$	1,951,407	$	1,921,150	$	1,894,250	$	1,850,868	—		6

Memo: Total by category
Consumer exposure (d)	$	1,115,268	$	1,106,980	$	1,091,363	$	1,073,377	$	1,050,405	1		6
Wholesale exposures (e)	837,837		844,427		829,787		820,873		800,463		(1	)	5
Total credit exposure	$	1,953,105	$	1,951,407	$	1,921,150	$	1,894,250	$	1,850,868	—		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, lending-related commitments, derivative receivables, and receivables from customers and other.

Page 24



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

																Dec 31, 2016
																Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,
	2016			2016			2016			2016			2015			2016		2015
NONPERFORMING ASSETS (a)
Consumer nonaccrual loans (b)(c)	$	4,820		$	4,961		$	5,085		$	5,225		$	5,413		(3	)	(11	)

Wholesale nonaccrual loans
Loans retained	1,954			2,151			2,093			2,203			988			(9	)	98
Loans held-for-sale and loans at fair value	109			26			7			7			28			319		289
Total wholesale nonaccrual loans	2,063			2,177			2,100			2,210			1,016			(5	)	103

Total nonaccrual loans	6,883			7,138			7,185			7,435			6,429			(4	)	7

Derivative receivables	223			232			220			212			204			(4	)	9
Assets acquired in loan satisfactions	429			409			352			376			401			5		7
Total nonperforming assets	7,535			7,779			7,757			8,023			7,034			(3	)	7
Wholesale lending-related commitments (d)	506			503			460			722			193			1		162
Total nonperforming exposure	$	8,041		$	8,282		$	8,217		$	8,745		$	7,227		(3	)	11

NONACCRUAL LOAN-RELATED RATIOS
Total nonaccrual loans to total loans	0.77		%	0.80		%	0.82		%	0.88		%	0.77		%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans	1.32			1.36			1.41			1.48			1.57
Total wholesale nonaccrual loans to total
wholesale loans	0.53			0.56			0.55			0.60			0.28

(a)

At December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $5.0 billion, $5.0 billion, $5.2 billion, $5.7 billion and $6.3 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 $263 million, $259 million, $252 million, $269 million and $290 million, respectively, that are 90 or more days past due; (3) real estate owned (“REO”) insured by U.S. government agencies of $142 million, $163 million, $355 million, $360 million and $343 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 $53 million, $53 million, $61 million and $98 million at December 31, 2016, September 30, 2016, March 31, 2016 and December 31, 2015, respectively. There were no nonaccrual loans held-for-sale at June 30, 2016.


(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																			FULL YEAR
																4Q16 Change										2016 Change
	4Q16			3Q16			2Q16			1Q16			4Q15			3Q16		4Q15		2016			2015			2015
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	14,204		$	14,227		$	13,994		$	13,555		$	13,466		—	%	5	%	$	13,555		$	14,185		(4	)%
Net charge-offs:
Gross charge-offs	1,532			1,375			1,433			1,357			1,300			11		18		5,697			5,241			9
Gross recoveries	(252		)	(254		)	(252		)	(247		)	(236		)	1		(7	)	(1,005		)	(1,155		)	13
Net charge-offs	1,280			1,121			1,181			1,110			1,064			14		20		4,692			4,086			15
Write-offs of PCI loans and other (a)	32			36			41			47			46			(11	)	(30	)	156			208			(25	)
Provision for loan losses	896			1,132			1,456			1,596			1,200			(21	)	(25	)	5,080			3,663			39
Other	(12		)	2			(1		)	—			(1		)	NM		NM		(11		)	1			NM
Ending balance	$	13,776		$	14,204		$	14,227		$	13,994		$	13,555		(3	)	2		$	13,776		$	13,555		2

ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	1,100		$	960		$	1,014		$	786		$	735		15		50		$	786		$	622		26
Provision for lending-related commitments	(32		)	139			(54		)	228			51			NM		NM		281			164			71
Other	10			1			—			—			—			NM		NM		11			—			NM
Ending balance	$	1,078		$	1,100		$	960		$	1,014		$	786		(2	)	37		$	1,078		$	786		37

Total allowance for credit losses	$	14,854		$	15,304		$	15,187		$	15,008		$	14,341		(3	)	4		$	14,854		$	14,341		4

NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans (b)	0.31		%	0.26		%	0.19		%	0.25		%	0.31		%					0.25		%	0.30		%
Credit card retained loans	2.67			2.51			2.70			2.62			2.42							2.63			2.51
Total consumer retained loans	0.95			0.86			0.85			0.89			0.88							0.89			0.92
Wholesale retained loans	0.08			0.05			0.17			0.07			0.03							0.09			—
Total retained loans	0.58			0.51			0.56			0.53			0.52							0.54			0.52
Consumer retained loans, excluding credit card and
PCI loans	0.35			0.29			0.21			0.29			0.35							0.28			0.35
Consumer retained loans, excluding PCI loans	1.03			0.93			0.92			0.97			0.97							0.96			1.02
Total retained, excluding PCI loans	0.60			0.54			0.58			0.56			0.54							0.57			0.55

Memo: Average retained loans
Consumer retained, excluding credit card loans	$	364,857		$	362,457		$	357,602		$	348,916		$	339,637		1		7		$	358,486		$	318,612		13
Credit card retained loans	136,085			132,626			128,314			127,227			126,903			3		7		131,081			124,274			5
Total average retained consumer loans	500,942			495,083			485,916			476,143			466,540			1		7		489,567			442,886			11
Wholesale retained loans	382,360			374,593			369,706			360,306			350,370			2		9		371,778			337,407			10
Total average retained loans	$	883,302		$	869,676		$	855,622		$	836,449		$	816,910		2		8		$	861,345		$	780,293		10

Consumer retained, excluding credit card and
PCI loans	$	328,507		$	324,741		$	318,556		$	308,526		$	298,047		1		10		$	320,118		$	274,866		16
Consumer retained, excluding PCI loans	464,592			457,367			446,870			435,753			424,950			2		9		451,199			399,140			13
Total retained, excluding PCI loans	846,949			831,956			816,572			796,055			775,316			2		9		822,973			736,543			12


(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)

																Dec 31, 2016
																Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,
	2016			2016			2016			2016			2015			2016		2015
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)	$	308		$	352		$	365		$	371		$	364		(13	)%	(15	)%
Formula-based	2,579			2,667			2,627			2,694			2,700			(3	)	(4	)
PCI	2,311			2,618			2,654			2,695			2,742			(12	)	(16	)
Total consumer, excluding credit card	5,198			5,637			5,646			5,760			5,806			(8	)	(10	)
Credit card
Asset-specific (a)(b)	358			363			361			427			460			(1	)	(22	)
Formula-based	3,676			3,521			3,323			3,007			2,974			4		24
Total credit card	4,034			3,884			3,684			3,434			3,434			4		17
Total consumer	9,232			9,521			9,330			9,194			9,240			(3	)	—
Wholesale
Asset-specific (a)	342			490			525			565			274			(30	)	25
Formula-based	4,202			4,193			4,372			4,235			4,041			—		4
Total wholesale	4,544			4,683			4,897			4,800			4,315			(3	)	5
Total allowance for loan losses	13,776			14,204			14,227			13,994			13,555			(3	)	2
Allowance for lending-related commitments	1,078			1,100			960			1,014			786			(2	)	37
Total allowance for credit losses	$	14,854		$	15,304		$	15,187		$	15,008		$	14,341		(3	)	4

CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	1.43		%	1.55		%	1.56		%	1.63		%	1.69		%
Credit card allowance to total credit card retained loans	2.85			2.91			2.80			2.73			2.61
Wholesale allowance to total wholesale retained loans	1.18			1.21			1.31			1.32			1.21
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (c)	1.30			1.33			1.45			1.47			1.35
Total allowance to total retained loans	1.55			1.61			1.64			1.66			1.63
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	109			115			111			112			109
Total allowance, excluding credit card allowance, to retained
nonaccrual loans, excluding credit card nonaccrual loans (d)	145			146			147			143			161
Wholesale allowance to wholesale retained nonaccrual loans	233			218			234			218			437
Total allowance to total retained nonaccrual loans	205			201			198			190			215

CREDIT RATIOS, excluding PCI loans
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	0.88			0.93			0.93			0.98			1.01
Total allowance to total retained loans	1.34			1.37			1.40			1.40			1.37
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	61			62			59			59			58
Allowance, excluding credit card allowance, to retained non-
accrual loans, excluding credit card nonaccrual loans (d)	111			109			110			107			117
Total allowance to total retained nonaccrual loans	171			164			161			153			172


(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.

(b)

Tangible common equity (“TCE”), Return on tangible common equity (“ROTCE”), and Tangible book value per share (“TBVPS”) are non-GAAP financial 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.

(c)

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.


(d)	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 represent 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.

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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