JPMORGAN CHASE & CO - FORM 8-K - EX-99.2 - EARNINGS RELEASE FINANCIAL SUPPLEMENT - 1Q17

Attached files

file	filename
EX-12.2 - RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS - 1Q17 - JPMORGAN CHASE & CO	a1q17erfexhibit122.htm
EX-99.1 - EXHIBIT 99.1 - JPMORGAN CHASE & CO	a1q17erfexhibit991narrative.htm
EX-12.1 - RATIO OF EARNINGS TO FIXED CHARGES - 1Q17 - JPMORGAN CHASE & CO	a1q17erfexhibit121.htm
8-K - 8-K - JPMORGAN CHASE & CO	a1q17erf8kcover.htm

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FIRST QUARTER 2017



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 & Wealth Management							20–22
Corporate							23

Credit-Related Information							24–27

Non-GAAP Financial Measures and Key Performance Measures							28
Glossary of Terms and Acronyms (a)


(a)	Refer to the Glossary of Terms and Acronyms on pages 279–285 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Annual Report”).



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

	QUARTERLY TRENDS
																	1Q17 Change
SELECTED INCOME STATEMENT DATA	1Q17				4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
Reported Basis
Total net revenue	$	24,675			$	23,376		$	24,673		$	24,380		$	23,239		6	%	6	%
Total noninterest expense	15,019				13,833			14,463			13,638			13,837			9		9
Pre-provision profit	9,656				9,543			10,210			10,742			9,402			1		3
Provision for credit losses	1,315				864			1,271			1,402			1,824			52		(28	)
NET INCOME	6,448				6,727			6,286			6,200			5,520			(4	)	17

Managed Basis (a)
Total net revenue	25,586				24,333			25,512			25,214			24,083			5		6
Total noninterest expense	15,019				13,833			14,463			13,638			13,837			9		9
Pre-provision profit	10,567				10,500			11,049			11,576			10,246			1		3
Provision for credit losses	1,315				864			1,271			1,402			1,824			52		(28	)
NET INCOME	6,448				6,727			6,286			6,200			5,520			(4	)	17

EARNINGS PER SHARE DATA
Net income: Basic	$	1.66			$	1.73		$	1.60		$	1.56		$	1.36		(4	)	22
Diluted	1.65				1.71			1.58			1.55			1.35			(4	)	22
Average shares: Basic (b)	3,601.7				3,611.3			3,637.7			3,675.5			3,710.6			—		(3	)
Diluted (b)	3,630.4				3,646.6			3,669.8			3,706.2			3,737.6			—		(3	)

MARKET AND PER COMMON SHARE DATA
Market capitalization	$	312,078			$	307,295		$	238,277		$	224,449		$	216,547		2		44
Common shares at period-end	3,552.8				3,561.2			3,578.3			3,612.0			3,656.7			—		(3	)
Closing share price (c)	$	87.84			$	86.29		$	66.59		$	62.14		$	59.22		2		48
Book value per share	64.68				64.06			63.79			62.67			61.28			1		6
Tangible book value per share (“TBVPS”) (d)	52.04				51.44			51.23			50.21			48.96			1		6
Cash dividends declared per share	0.50				0.48			0.48			0.48			0.44			4		14

FINANCIAL RATIOS (e)
Return on common equity (“ROE”)	11		%		11		%	10		%	10		%	9		%
Return on tangible common equity (“ROTCE”) (d)	13				14			13			13			12
Return on assets	1.03				1.06			1.01			1.02			0.93

High quality liquid assets (“HQLA”) (in billions) (f)	$	524		(h)	$	524		$	539		$	516		$	505		—		4

CAPITAL RATIOS (g)
Common equity Tier 1 (“CET1”) capital ratio	12.5		%	(h)	12.4		%	12.0		%	12.0		%	11.9		%
Tier 1 capital ratio	14.2			(h)	14.1			13.6			13.6			13.5
Total capital ratio	15.6			(h)	15.5			15.1			15.2			15.1
Tier 1 leverage ratio	8.4			(h)	8.4			8.5			8.5			8.6


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


(b)	Prior period amounts have been revised to conform with the current period presentation. The revision had no impact on the Firm’s reported earnings per share in any of the prior periods.


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


(d)	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.


(e)	Quarterly ratios are based upon annualized amounts.


(f)	HQLA represents the amount of assets that qualify for inclusion in the liquidity coverage ratio. For additional information on HQLA and LCR, see page 111 of the 2016 Annual Report.


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


(h)	Estimated.

Page 2



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

	QUARTERLY TRENDS
																1Q17 Change
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,546,290		$	2,490,972		$	2,521,029		$	2,466,096		$	2,423,808		2	%	5	%
Loans:
Consumer, excluding credit card loans	367,055			364,644			363,796			361,305			354,192			1		4
Credit card loans	135,016			141,816			133,435			131,591			126,090			(5	)	7
Wholesale loans	393,903			388,305			390,823			379,908			367,031			1		7
Total Loans	895,974			894,765			888,054			872,804			847,313			—		6
Core loans (a)	812,119			806,152			795,077			775,813			746,196			1		9
Core loans (average) (a)	805,382			799,698			779,383			760,721			737,297			1		9

Deposits:
U.S. offices:
Noninterest-bearing	400,439			400,831			409,912			393,294			383,282			—		4
Interest-bearing	775,258			737,949			722,294			695,763			695,667			5		11
Non-U.S. offices:
Noninterest-bearing	16,456			14,764			15,815			17,072			16,726			11		(2	)
Interest-bearing	230,846			221,635			228,117			224,829			226,141			4		2
Total deposits	1,422,999			1,375,179			1,376,138			1,330,958			1,321,816			3		8

Long-term debt (b)	289,492			295,245			309,418			295,627			290,754			(2	)	—
Common stockholders’ equity	229,795			228,122			228,263			226,355			224,089			1		3
Total stockholders’ equity	255,863			254,190			254,331			252,423			250,157			1		2

Loans-to-deposits ratio	63		%	65		%	65		%	66		%	64		%

Headcount	246,345			243,355			242,315			240,046			237,420			1		4

95% CONFIDENCE LEVEL - TOTAL VaR
Average VaR (c)	$	25		$	40		$	43		$	45		$	54		(38	)	(54	)

LINE OF BUSINESS NET REVENUE (d)
Consumer & Community Banking	$	10,970		$	11,019		$	11,328		$	11,451		$	11,117		—		(1	)
Corporate & Investment Bank	9,536			8,461			9,455			9,165			8,135			13		17
Commercial Banking	2,018			1,963			1,870			1,817			1,803			3		12
Asset & Wealth Management	3,087			3,087			3,047			2,939			2,972			—		4
Corporate	(25		)	(197		)	(188		)	(158		)	56			87		NM
TOTAL NET REVENUE	$	25,586		$	24,333		$	25,512		$	25,214		$	24,083		5		6

LINE OF BUSINESS NET INCOME
Consumer & Community Banking	$	1,988		$	2,364		$	2,204		$	2,656		$	2,490		(16	)	(20	)
Corporate & Investment Bank	3,241			3,431			2,912			2,493			1,979			(6	)	64
Commercial Banking	799			687			778			696			496			16		61
Asset & Wealth Management	385			586			557			521			587			(34	)	(34	)
Corporate	35			(341		)	(165		)	(166		)	(32		)	NM		NM
NET INCOME	$	6,448		$	6,727		$	6,286		$	6,200		$	5,520		(4	)	17


(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 $212.0 billion, $212.6 billion, $226.8 billion, $220.6 billion and $216.1 billion for the periods ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, 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 & Wealth Management were removed from the VaR calculation. 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: $3 million, $6 million, and $7 million for the three months ended March 31, 2017, December 31, 2016, and September 30, 2016, respectively. Additionally, during the first quarter of 2017, the Firm refined the historical proxy time series inputs to certain VaR models to more appropriately reflect the risk exposure from certain asset-backed products. In the absence of this enhancement, the average Total VaR, without diversification, would have been higher by $3 million for the three months ended March 31, 2017. 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.

Page 3



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

	QUARTERLY TRENDS
																1Q17 Change
REVENUE	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
Investment banking fees	$	1,817		$	1,605		$	1,866		$	1,644		$	1,333		13	%	36	%
Principal transactions	3,582			2,460			3,451			2,976			2,679			46		34
Lending- and deposit-related fees	1,448			1,484			1,484			1,403			1,403			(2	)	3
Asset management, administration and commissions	3,677			3,689			3,597			3,681			3,624			—		1
Securities gains	(3		)	5			64			21			51			NM		NM
Mortgage fees and related income	406			511			624			689			667			(21	)	(39	)
Card income	914			918			1,202			1,358			1,301			—		(30	)
Other income	770			951			782			1,261			801			(19	)	(4	)
Noninterest revenue	12,611			11,623			13,070			13,033			11,859			9		6
Interest income	15,042			14,466			14,070			13,813			13,552			4		11
Interest expense	2,978			2,713			2,467			2,466			2,172			10		37
Net interest income	12,064			11,753			11,603			11,347			11,380			3		6
TOTAL NET REVENUE	24,675			23,376			24,673			24,380			23,239			6		6

Provision for credit losses	1,315			864			1,271			1,402			1,824			52		(28	)

NONINTEREST EXPENSE
Compensation expense	8,201			6,872			7,669			7,778			7,660			19		7
Occupancy expense	961			957			899			899			883			—		9
Technology, communications and equipment expense	1,828			1,822			1,741			1,665			1,618			—		13
Professional and outside services	1,543			1,742			1,665			1,700			1,548			(11	)	—
Marketing	713			697			825			672			703			2		1
Other expense (a)	1,773			1,743			1,664			924			1,425			2		24
TOTAL NONINTEREST EXPENSE	15,019			13,833			14,463			13,638			13,837			9		9
Income before income tax expense	8,341			8,679			8,939			9,340			7,578			(4	)	10
Income tax expense	1,893			1,952			2,653			3,140			2,058			(3	)	(8	)
NET INCOME	$	6,448		$	6,727		$	6,286		$	6,200		$	5,520		(4	)	17

NET INCOME PER COMMON SHARE DATA
Basic earnings per share	$	1.66		$	1.73		$	1.60		$	1.56		$	1.36		(4	)	22
Diluted earnings per share	1.65			1.71			1.58			1.55			1.35			(4	)	22

FINANCIAL RATIOS
Return on common equity (b)	11		%	11		%	10		%	10		%	9		%
Return on tangible common equity (b)(c)	13			14			13			13			12
Return on assets (b)	1.03			1.06			1.01			1.02			0.93
Effective income tax rate	22.7			22.5			29.7			33.6			27.2
Overhead ratio	61			59			59			56			60


(a)	Included Firmwide legal expense/(benefit) of $218 million, $230 million, $(71) million, $(430) million and $(46) million for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.


(b)	Quarterly ratios are based upon annualized amounts.


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

Page 4



JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
																Mar 31, 2017
																Change
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,		Mar 31,
	2017			2016			2016			2016			2016			2016		2016
ASSETS
Cash and due from banks	$	20,484		$	23,873		$	21,390		$	19,710		$	18,212		(14	)%	12	%
Deposits with banks	439,911			365,762			396,200			345,595			360,196			20		22
Federal funds sold and securities purchased under
resale agreements	190,566			229,967			232,637			237,267			223,220			(17	)	(15	)
Securities borrowed	92,309			96,409			109,197			103,225			102,937			(4	)	(10	)
Trading assets:
Debt and equity instruments	346,450			308,052			309,258			302,347			295,944			12		17
Derivative receivables	56,063			64,078			65,579			78,446			70,209			(13	)	(20	)
Securities	281,850			289,059			272,401			278,610			285,323			(2	)	(1	)
Loans	895,974			894,765			888,054			872,804			847,313			—		6
Less: Allowance for loan losses	13,413			13,776			14,204			14,227			13,994			(3	)	(4	)
Loans, net of allowance for loan losses	882,561			880,989			873,850			858,577			833,319			—		6
Accrued interest and accounts receivable	60,038			52,330			64,333			64,911			57,649			15		4
Premises and equipment	14,227			14,131			14,208			14,262			14,195			1		—
Goodwill	47,292			47,288			47,302			47,303			47,310			—		—
Mortgage servicing rights	6,079			6,096			4,937			5,072			5,658			—		7
Other intangible assets	847			862			887			917			940			(2	)	(10	)
Other assets	107,613			112,076			108,850			109,854			108,696			(4	)	(1	)
TOTAL ASSETS	$	2,546,290		$	2,490,972		$	2,521,029		$	2,466,096		$	2,423,808		2		5

LIABILITIES
Deposits	$	1,422,999		$	1,375,179		$	1,376,138		$	1,330,958		$	1,321,816		3		8
Federal funds purchased and securities loaned or sold
under repurchase agreements	183,316			165,666			168,491			166,044			160,999			11		14
Commercial paper	14,908			11,738			12,258			17,279			17,490			27		(15	)
Other borrowed funds	24,342			22,705			24,479			19,945			19,703			7		24
Trading liabilities:
Debt and equity instruments	90,913			87,428			95,126			101,194			87,963			4		3
Derivative payables	44,575			49,231			48,143			57,764			59,319			(9	)	(25	)
Accounts payable and other liabilities	183,200			190,543			190,412			184,635			176,934			(4	)	4
Beneficial interests issued by consolidated VIEs	36,682			39,047			42,233			40,227			38,673			(6	)	(5	)
Long-term debt	289,492			295,245			309,418			295,627			290,754			(2	)	—
TOTAL LIABILITIES	2,290,427			2,236,782			2,266,698			2,213,673			2,173,651			2		5

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	90,395			91,627			92,103			91,974			91,782			(1	)	(2	)
Retained earnings	166,663			162,440			157,870			153,749			149,730			3		11
Accumulated other comprehensive income/(loss)	(923		)	(1,175		)	1,474			1,618			782			21		NM
Shares held in RSU Trust, at cost	(21		)	(21		)	(21		)	(21		)	(21		)	—		—
Treasury stock, at cost	(30,424		)	(28,854		)	(27,268		)	(25,070		)	(22,289		)	(5	)	(36	)
TOTAL STOCKHOLDERS’ EQUITY	255,863			254,190			254,331			252,423			250,157			1		2
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,546,290		$	2,490,972		$	2,521,029		$	2,466,096		$	2,423,808		2		5

Page 5



JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
	QUARTERLY TRENDS
																					1Q17 Change
AVERAGE BALANCES	1Q17				4Q16				3Q16				2Q16				1Q16				4Q16		1Q16
ASSETS
Deposits with banks	$	422,169			$	415,817			$	409,176			$	379,001			$	364,200			2	%	16	%
Federal funds sold and securities purchased under
resale agreements	196,965				217,907				196,657				201,871				204,992				(10	)	(4	)
Securities borrowed	95,372				103,928				102,790				101,669				103,461				(8	)	(8	)
Trading assets - debt instruments	225,801				218,272				219,816				215,780				208,315				3		8
Securities	285,565				280,087				272,993				280,041				284,488				2		—
Loans	891,904				890,511				874,396				859,727				840,526				—		6
Other assets (a)	43,136				39,025				40,665				41,436				38,001				11		14
Total interest-earning assets	2,160,912				2,165,547				2,116,493				2,079,525				2,043,983				—		6
Trading assets - equity instruments	115,284				98,427				98,714				99,626				85,280				17		35
Trading assets - derivative receivables	61,400				70,580				72,520				69,823				70,651				(13	)	(13	)
All other noninterest-earning assets	195,566				197,903				189,235				192,215				195,007				(1	)	—
TOTAL ASSETS	$	2,533,162			$	2,532,457			$	2,476,962			$	2,441,189			$	2,394,921			—		6
LIABILITIES
Interest-bearing deposits	$	986,015			$	959,779			$	932,738			$	919,759			$	888,340			3		11
Federal funds purchased and securities loaned or
sold under repurchase agreements	189,611				186,579				180,098				176,855				171,246				2		11
Commercial paper	13,364				11,263				13,798				17,462				17,537				19		(24	)
Trading liabilities - debt, short-term and other liabilities (b)	199,981				202,979				196,247				200,141				196,233				(1	)	2
Beneficial interests issued by consolidated VIEs	38,775				39,985				42,462				38,411				39,839				(3	)	(3	)
Long-term debt	292,224				301,989				300,295				291,726				288,160				(3	)	1
Total interest-bearing liabilities	1,719,970				1,702,574				1,665,638				1,644,354				1,601,355				1		7
Noninterest-bearing deposits	405,548				414,266				405,237				396,207				394,928				(2	)	3
Trading liabilities - equity instruments	21,072				21,411				22,262				20,747				18,504				(2	)	14
Trading liabilities - derivative payables	48,373				54,548				54,552				54,048				60,591				(11	)	(20	)
All other noninterest-bearing liabilities	84,428				87,180				77,116				75,336				71,914				(3	)	17
TOTAL LIABILITIES	2,279,391				2,279,979				2,224,805				2,190,692				2,147,292				—		6
Preferred stock	26,068				26,068				26,068				26,068				26,068				—		—
Common stockholders’ equity	227,703				226,410				226,089				224,429				221,561				1		3
TOTAL STOCKHOLDERS’ EQUITY	253,771				252,478				252,157				250,497				247,629				1		2
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,533,162			$	2,532,457			$	2,476,962			$	2,441,189			$	2,394,921			—		6

AVERAGE RATES (c)
INTEREST-EARNING ASSETS
Deposits with banks	0.69			%	0.47			%	0.44			%	0.49			%	0.51			%
Federal funds sold and securities purchased under
resale agreements	1.08				1.04				1.14				1.15				1.09
Securities borrowed (d)	(0.19		)		(0.20		)		(0.35		)		(0.38		)		(0.36		)
Trading assets - debt instruments	3.38				3.40				3.46				3.50				3.31
Securities	3.01				2.87				2.95				2.95				2.98
Loans	4.47				4.30				4.23				4.22				4.26
Other assets (a)	3.21				2.57				2.14				2.06				2.04
Total interest-earning assets	2.88				2.71				2.70				2.73				2.72

INTEREST-BEARING LIABILITIES
Interest-bearing deposits	0.20				0.16				0.15				0.14				0.14
Federal funds purchased and securities loaned or
sold under repurchase agreements	0.63				0.56				0.63				0.64				0.61
Commercial paper	1.22				1.09				0.97				0.88				0.75
Trading liabilities - debt, short-term and other liabilities (b)	0.89				0.67				0.58				0.63				0.47
Beneficial interests issued by consolidated VIEs	1.41				1.37				1.26				1.24				1.14
Long-term debt	2.21				2.06				1.84				1.92				1.70
Total interest-bearing liabilities	0.70				0.63				0.59				0.60				0.55

INTEREST RATE SPREAD	2.18			%	2.08			%	2.11			%	2.13			%	2.17			%
NET YIELD ON INTEREST-EARNING ASSETS	2.33			%	2.22			%	2.24			%	2.25			%	2.30			%


(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
																1Q17 Change
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
OTHER INCOME
Other income - reported	$	770		$	951		$	782		$	1,261		$	801		(19	)%	(4	)%
Fully taxable-equivalent adjustments (a)	582			645			540			529			551			(10	)	6
Other income - managed	$	1,352		$	1,596		$	1,322		$	1,790		$	1,352		(15	)	—

TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported	$	12,611		$	11,623		$	13,070		$	13,033		$	11,859		9		6
Fully taxable-equivalent adjustments (a)	582			645			540			529			551			(10	)	6
Total noninterest revenue - managed	$	13,193		$	12,268		$	13,610		$	13,562		$	12,410		8		6

NET INTEREST INCOME
Net interest income - reported	$	12,064		$	11,753		$	11,603		$	11,347		$	11,380		3		6
Fully taxable-equivalent adjustments (a)	329			312			299			305			293			5		12
Net interest income - managed	$	12,393		$	12,065		$	11,902		$	11,652		$	11,673		3		6

TOTAL NET REVENUE
Total net revenue - reported	$	24,675		$	23,376		$	24,673		$	24,380		$	23,239		6		6
Fully taxable-equivalent adjustments (a)	911			957			839			834			844			(5	)	8
Total net revenue - managed	$	25,586		$	24,333		$	25,512		$	25,214		$	24,083		5		6

PRE-PROVISION PROFIT
Pre-provision profit - reported	$	9,656		$	9,543		$	10,210		$	10,742		$	9,402		1		3
Fully taxable-equivalent adjustments (a)	911			957			839			834			844			(5	)	8
Pre-provision profit - managed	$	10,567		$	10,500		$	11,049		$	11,576		$	10,246		1		3

INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported	$	8,341		$	8,679		$	8,939		$	9,340		$	7,578		(4	)	10
Fully taxable-equivalent adjustments (a)	911			957			839			834			844			(5	)	8
Income before income tax expense - managed	$	9,252		$	9,636		$	9,778		$	10,174		$	8,422		(4	)	10

INCOME TAX EXPENSE
Income tax expense/(benefit) - reported	$	1,893		$	1,952		$	2,653		$	3,140		$	2,058		(3	)	(8	)
Fully taxable-equivalent adjustments (a)	911			957			839			834			844			(5	)	8
Income tax expense - managed	$	2,804		$	2,909		$	3,492		$	3,974		$	2,902		(4	)	(3	)

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


(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
																1Q17 Change
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking	$	10,970		$	11,019		$	11,328		$	11,451		$	11,117		—	%	(1	)%
Corporate & Investment Bank	9,536			8,461			9,455			9,165			8,135			13		17
Commercial Banking	2,018			1,963			1,870			1,817			1,803			3		12
Asset & Wealth Management	3,087			3,087			3,047			2,939			2,972			—		4
Corporate	(25		)	(197		)	(188		)	(158		)	56			87		NM
TOTAL NET REVENUE	$	25,586		$	24,333		$	25,512		$	25,214		$	24,083		5		6

TOTAL NONINTEREST EXPENSE
Consumer & Community Banking	$	6,395		$	6,303		$	6,510		$	6,004		$	6,088		1		5
Corporate & Investment Bank	5,121			4,172			4,934			5,078			4,808			23		7
Commercial Banking	825			744			746			731			713			11		16
Asset & Wealth Management	2,580			2,175			2,130			2,098			2,075			19		24
Corporate	98			439			143			(273		)	153			(78	)	(36	)
TOTAL NONINTEREST EXPENSE	$	15,019		$	13,833		$	14,463		$	13,638		$	13,837		9		9

PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking	$	4,575		$	4,716		$	4,818		$	5,447		$	5,029		(3	)	(9	)
Corporate & Investment Bank	4,415			4,289			4,521			4,087			3,327			3		33
Commercial Banking	1,193			1,219			1,124			1,086			1,090			(2	)	9
Asset & Wealth Management	507			912			917			841			897			(44	)	(43	)
Corporate	(123		)	(636		)	(331		)	115			(97		)	81		(27	)
PRE-PROVISION PROFIT	$	10,567		$	10,500		$	11,049		$	11,576		$	10,246		1		3

PROVISION FOR CREDIT LOSSES
Consumer & Community Banking	$	1,430		$	949		$	1,294		$	1,201		$	1,050		51		36
Corporate & Investment Bank	(96		)	(198		)	67			235			459			52		NM
Commercial Banking	(37		)	124			(121		)	(25		)	304			NM		NM
Asset & Wealth Management	18			(11		)	32			(8		)	13			NM		38
Corporate	—			—			(1		)	(1		)	(2		)	—		100
PROVISION FOR CREDIT LOSSES	$	1,315		$	864		$	1,271		$	1,402		$	1,824		52		(28	)

NET INCOME/(LOSS)
Consumer & Community Banking	$	1,988		$	2,364		$	2,204		$	2,656		$	2,490		(16	)	(20	)
Corporate & Investment Bank	3,241			3,431			2,912			2,493			1,979			(6	)	64
Commercial Banking	799			687			778			696			496			16		61
Asset & Wealth Management	385			586			557			521			587			(34	)	(34	)
Corporate	35			(341		)	(165		)	(166		)	(32		)	NM		NM
TOTAL NET INCOME	$	6,448		$	6,727		$	6,286		$	6,200		$	5,520		(4	)	17

Page 8



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

																	Mar 31, 2017
																	Change
	Mar 31,				Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,		Mar 31,
	2017				2016			2016			2016			2016			2016		2016
CAPITAL (a)
Risk-based capital metrics
Standardized Transitional
CET1 capital	$	184,337		(f)	$	182,967		$	181,606		$	179,593		$	177,531		1	%	4	%
Tier 1 capital	209,644			(f)	208,112			206,430			204,390			202,399			1		4
Total capital	240,237			(f)	239,553			241,004			238,999			236,954			—		1
Risk-weighted assets	1,471,448			(f)	1,464,981			1,480,291			1,469,430			1,470,741			—		—
CET1 capital ratio	12.5		%	(f)	12.5		%	12.3		%	12.2		%	12.1		%
Tier 1 capital ratio	14.2			(f)	14.2			13.9			13.9			13.8
Total capital ratio	16.3			(f)	16.4			16.3			16.3			16.1

Advanced Transitional
CET1 capital	$	184,337		(f)	182,967			181,606			179,593			177,531			1		4
Tier 1 capital	209,644			(f)	208,112			206,430			204,390			202,399			1		4
Total capital	229,179			(f)	228,592			229,324			227,865			226,190			—		1
Risk-weighted assets	1,472,116			(f)	1,476,915			1,515,177			1,497,509			1,497,870			—		(2	)
CET1 capital ratio	12.5		%	(f)	12.4		%	12.0		%	12.0		%	11.9		%
Tier 1 capital ratio	14.2			(f)	14.1			13.6			13.6			13.5
Total capital ratio	15.6			(f)	15.5			15.1			15.2			15.1

Leverage-based capital metrics
Adjusted average assets (b)	$	2,486,105		(f)	$	2,484,631		$	2,427,423		$	2,391,819		$	2,345,926		—		6
Tier 1 leverage ratio	8.4		%	(f)	8.4		%	8.5		%	8.5		%	8.6		%
SLR leverage exposure (c)	$	3,172,166		(f)	$	3,191,990		3,140,733			3,094,545			3,047,558			(1	)	4
SLR (c)	6.6		%	(f)	6.5		%	6.6		%	6.6		%	6.6		%

TANGIBLE COMMON EQUITY (period-end) (d)
Common stockholders’ equity	$	229,795			$	228,122		$	228,263		$	226,355		$	224,089		1		3
Less: Goodwill	47,292				47,288			47,302			47,303			47,310			—		—
Less: Other intangible assets	847				862			887			917			940			(2	)	(10	)
Add: Deferred tax liabilities (e)	3,225				3,230			3,232			3,220			3,205			—		1
Total tangible common equity	$	184,881			$	183,202		$	183,306		$	181,355		$	179,044		1		3

TANGIBLE COMMON EQUITY (average) (d)
Common stockholders’ equity	$	227,703			$	226,410		$	226,089		$	224,429		$	221,561		1		3
Less: Goodwill	47,293				47,296			47,302			47,309			47,332			—		—
Less: Other intangible assets	853				873			903			928			985			(2	)	(13	)
Add: Deferred tax liabilities (e)	3,228				3,231			3,226			3,213			3,177			—		2
Total tangible common equity	$	182,785			$	181,472		$	181,110		$	179,405		$	176,421		1		4

INTANGIBLE ASSETS (period-end)
Goodwill	$	47,292			$	47,288		$	47,302		$	47,303		$	47,310		—		—
Mortgage servicing rights	6,079				6,096			4,937			5,072			5,658			—		7
Other intangible assets	847				862			887			917			940			(2	)	(10	)
Total intangible assets	$	54,218			$	54,246		$	53,126		$	53,292		$	53,908		—		1

(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 Risk Management on pages 76-85 of the 2016 Annual Report.


(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, predominantly 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
																1Q17 Change
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
EARNINGS PER SHARE
Basic earnings per share
Net income	$	6,448		$	6,727		$	6,286		$	6,200		$	5,520		(4	)%	17	%
Less: Preferred stock dividends	412			412			412			411			412			—		—
Net income applicable to common equity	6,036			6,315			5,874			5,789			5,108			(4	)	18
Less: Dividends and undistributed earnings allocated to
participating securities (a)	61			65			62			61			62			(6	)	(2	)
Net income applicable to common stockholders (a)	$	5,975		$	6,250		$	5,812		$	5,728		$	5,046		(4	)	18

Total weighted-average basic shares outstanding (a)	3,601.7			3,611.3			3,637.7			3,675.5			3,710.6			—		(3	)
Net income per share	$	1.66		$	1.73		$	1.60		$	1.56		$	1.36		(4	)	22

Diluted earnings per share
Net income applicable to common stockholders (a)	$	5,975		$	6,250		$	5,812		$	5,728		$	5,046		(4	)	18
Total weighted-average basic shares outstanding (a)	3,601.7			3,611.3			3,637.7			3,675.5			3,710.6			—		(3	)
Add: Employee stock options, stock appreciation rights (“SARs”), warrants and performance share units (“PSUs”)	28.7			35.3			32.1			30.7			27.0			(19	)	6
Total weighted-average diluted shares outstanding (a)	3,630.4			3,646.6			3,669.8			3,706.2			3,737.6			—		(3	)
Net income per share	$	1.65		$	1.71		$	1.58		$	1.55		$	1.35		(4	)	22

COMMON DIVIDENDS
Cash dividends declared per share	$	0.50		$	0.48		$	0.48		$	0.48		$	0.44		4		14
Dividend payout ratio	30		%	28		%	30		%	31		%	32		%

COMMON EQUITY REPURCHASE PROGRAM (b)
Total shares of common stock repurchased	32.1			29.8			35.6			45.8			29.2			8		10
Average price paid per share of common stock	$	88.14		$	75.56		$	64.46		$	61.93		$	58.17		17		52
Aggregate repurchases of common equity	2,832			2,251			2,295			2,840			1,696			26		67

EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans	21.0			2.3			1.3			1.2			22.3			NM		(6	)
Net impact of employee issuances on stockholders’ equity (c)	$	29		$	164		$	226		$	250		$	366		(82	)	(92	)


(a)	Prior period amounts have been revised to conform with the current period presentation. The revision had no impact on the Firm’s reported earnings per share in any of the prior periods.


(b)	On June 29, 2016, the Firm announced, 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.


(c)	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
																1Q17 Change
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	812		$	841		$	841		$	780		$	769		(3	)%	6	%
Asset management, administration and commissions	539			497			531			535			530			8		2
Mortgage fees and related income	406			510			624			689			667			(20	)	(39	)
Card income	817			821			1,099			1,253			1,191			—		(31	)
All other income	743			774			773			881			649			(4	)	14
Noninterest revenue	3,317			3,443			3,868			4,138			3,806			(4	)	(13	)
Net interest income	7,653			7,576			7,460			7,313			7,311			1		5
TOTAL NET REVENUE	10,970			11,019			11,328			11,451			11,117			—		(1	)

Provision for credit losses	1,430			949			1,294			1,201			1,050			51		36

NONINTEREST EXPENSE
Compensation expense	2,533			2,468			2,453			2,420			2,382			3		6
Noncompensation expense (a)	3,862			3,835			4,057			3,584			3,706			1		4
TOTAL NONINTEREST EXPENSE	6,395			6,303			6,510			6,004			6,088			1		5

Income before income tax expense	3,145			3,767			3,524			4,246			3,979			(17	)	(21	)
Income tax expense	1,157			1,403			1,320			1,590			1,489			(18	)	(22	)
NET INCOME	$	1,988		$	2,364		$	2,204		$	2,656		$	2,490		(16	)	(20	)

REVENUE BY LINE OF BUSINESS
Consumer & Business Banking	$	4,906		$	4,774		$	4,719		$	4,616		$	4,550		3		8
Mortgage Banking	1,529			1,690			1,874			1,921			1,876			(10	)	(18	)
Card, Commerce Solutions & Auto	4,535			4,555			4,735			4,914			4,691			—		(3	)

MORTGAGE FEES AND RELATED INCOME DETAILS:
Net production revenue	141			183			247			261			162			(23	)	(13	)
Net mortgage servicing revenue (b)	265			327			377			428			505			(19	)	(48	)
Mortgage fees and related income	$	406		$	510		$	624		$	689		$	667		(20	)	(39	)


FINANCIAL RATIOS
ROE (c)	15		%	17		%	16		%	20		%	19		%
Overhead ratio	58			57			57			52			55


(a)	Included operating lease depreciation expense of $599 million, $549 million, $504 million, $460 million and $432 million for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.


(b)	Included MSR risk management of $(52) million, $(23) million, $38 million, $73 million and $129 million for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.


(c)	Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which includes no longer allocating for goodwill and other intangible assets. For further information, see pages 76-85 of the 2016 Annual Report on Form 10-K.

Page 11



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

	QUARTERLY TRENDS
											1Q17 Change
	1Q17		4Q16		3Q16		2Q16		1Q16		4Q16		1Q16
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	524,770	$	535,310	$	521,276	$	519,187	$	505,071	(2	)%	4	%

Loans:
Consumer & Business Banking	24,386		24,307		23,846		23,588		22,889		—		7
Home equity	48,234		50,296		52,445		54,569		56,627		(4	)	(15	)
Residential mortgage and other	185,114		181,196		181,564		178,670		172,413		2		7
Mortgage Banking	233,348		231,492		234,009		233,239		229,040		1		2
Credit Card	135,016		141,816		133,435		131,591		126,090		(5	)	7
Auto	65,568		65,814		64,512		64,056		62,937		—		4
Student	6,253		7,057		7,354		7,614		7,890		(11	)	(21	)
Total loans	464,571		470,486		463,156		460,088		448,846		(1	)	4
Core loans	381,393		382,608		371,060		364,007		348,802		—		9

Deposits	646,962		618,337		605,117		586,074		582,026		5		11
Equity (a)	51,000		51,000		51,000		51,000		51,000		—		—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	532,098	$	527,684	$	521,882	$	512,434	$	503,231	1		6

Loans:
Consumer & Business Banking	24,359		24,040		23,678		23,223		22,775		1		7
Home equity	49,278		51,393		53,501		55,615		57,717		(4	)	(15	)
Residential mortgage and other	183,756		182,820		180,669		175,753		168,694		1		9
Mortgage Banking	233,034		234,213		234,170		231,368		226,411		(1	)	3
Credit Card	137,211		136,181		132,713		128,396		127,299		1		8
Auto	65,315		65,286		64,068		63,661		61,252		—		7
Student	6,916		7,217		7,490		7,757		8,034		(4	)	(14	)
Total loans	466,835		466,937		462,119		454,405		445,771		—		5
Core loans	381,016		376,933		367,999		356,380		343,705		1		11

Deposits	622,915		607,175		593,671		583,115		562,284		3		11
Equity (a)	51,000		51,000		51,000		51,000		51,000		—		—

Headcount	133,590		132,802		132,092		131,815		129,925		1		3

Note: In the first quarter of 2017, the Firm transferred the student loan portfolio to held-for-sale. Net-charge-offs related to the portfolio predominantly reflect a write-down to the estimated fair value of the portfolio at the time of the reclassification. This transfer impacted certain loan and credit-related metrics disclosed on pages 12-13 and 24-27.


(a)	Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which includes no longer allocating for goodwill and other intangible assets. For further information, see pages 76-85 of the 2016 Annual Report on Form 10-K.

Page 12



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)	QUARTERLY TRENDS
																1Q17 Change
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)	$	4,442		$	4,708		$	4,853		$	4,980		$	5,117		(6	)%	(13	)%
Net charge-offs (c)
Consumer & Business Banking	57			77			71			53			56			(26	)	2
Home equity	47			48			42			35			59			(2	)	(20	)
Residential mortgage and other	3			3			7			3			1			—		200
Mortgage Banking	50			51			49			38			60			(2	)	(17	)
Credit Card	993			914			838			860			830			9		20
Auto	81			93			79			46			67			(13	)	21
Student	498			64			32			29			37			NM		NM
Total net charge-offs	$	1,679		$	1,199		$	1,069		$	1,026		$	1,050		40		60
Net charge-off rate (c)
Consumer & Business Banking	0.95		%	1.27		%	1.19		%	0.92		%	0.99		%
Home equity (d)	0.52			0.50			0.42			0.34			0.55
Residential mortgage and other (d)	0.01			0.01			0.02			0.01			—
Mortgage Banking (d)	0.10			0.10			0.10			0.08			0.13
Credit Card (e)	2.94			2.67			2.51			2.70			2.62
Auto	0.50			0.57			0.49			0.29			0.44
Student	NM			3.53			1.70			1.50			1.85
Total net charge-off rate (d)	1.58			1.11			1.00			0.99			1.04

30+ day delinquency rate
Mortgage Banking (f)(g)	1.08		%	1.23		%	1.27		%	1.33		%	1.41		%
Credit Card (h)	1.66			1.61			1.53			1.40			1.45
Auto	0.93			1.19			1.08			1.16			0.94
Student (i)	—			1.60			1.81			1.43			1.41
90+ day delinquency rate - Credit Card (h)	0.87			0.81			0.75			0.70			0.75

Allowance for loan losses
Consumer & Business Banking	$	753		$	753		$	703		$	703		$	703		—		7
Mortgage Banking, excluding PCI loans	1,328			1,328			1,488			1,488			1,588			—		(16	)
Mortgage Banking - PCI loans (c)	2,287			2,311			2,618			2,654			2,695			(1	)	(15	)
Credit Card	4,034			4,034			3,884			3,684			3,434			—		17
Auto	474			474			474			449			399			—		19
Student	—			249			274			274			299			(100	)	(100	)
Total allowance for loan losses (c)	$	8,876		$	9,149		$	9,441		$	9,252		$	9,118		(3	)	(3	)

Note 1: In the first quarter of 2017, the Firm transferred the student loan portfolio to held-for-sale. Net-charge-offs related to the portfolio predominantly reflect a write-down to the estimated fair value of the portfolio at the time of the reclassification. This transfer impacted certain loan and credit-related metrics disclosed on pages 12-13 and 24-27.

Note 2 : 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 March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, nonaccrual loans excluded loans 90 or more days past due as follows: (1) mortgage loans insured by U.S. government agencies of $4.5 billion, $5.0 billion, $5.0 billion, $5.2 billion and $5.7 billion, respectively; and (2) student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) of $234 million, $263 million, $259 million, $252 million and $269 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 March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, excluded write-offs in the PCI portfolio of $24 million, $32 million, $36 million, $41 million and $47 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 March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, the net charge-off rates including the impact of PCI loans were as follows: (1) home equity of 0.39%, 0.37%, 0.31%, 0.25% and 0.41%, respectively; (2) residential mortgage and other of 0.01%, 0.01%, 0.02%, 0.01% and –%, respectively; (3) Mortgage Banking of 0.09%, 0.09%, 0.08%, 0.07% and 0.11%, respectively; and (4) total CCB of 1.46%, 1.02%, 0.92%, 0.91% and 0.95%, respectively.


(e)	Average credit card loans included loans held-for-sale of $99 million, $96 million, $87 million, $82 million and $72 million for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, respectively. These amounts are excluded when calculating the net charge-off rate.


(f)	At March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, excluded mortgage loans insured by U.S. government agencies of $6.3 billion, $7.0 billion, $7.0 billion, $7.2 billion and $7.6 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 9.11%, 9.82%, 10.01%, 10.09% and 10.47% at March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, respectively.


(h)	Period-end credit card loans included loans held-for-sale of $99 million, $105 million, $89 million, $84 million and $78 million at March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, 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 and $471 million at December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, 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
																					1Q17 Change
	1Q17				4Q16				3Q16				2Q16				1Q16				4Q16		1Q16
BUSINESS METRICS
Number of:
Branches	5,246				5,258				5,310				5,366				5,385				—	%	(3	)%
Active digital customers (in thousands) (a)	45,463				43,836				43,657				42,833				42,458				4		7
Active mobile customers (in thousands) (b)	27,256				26,536				26,047				24,817				23,821				3		14

Debit and credit card sales volume (in billions)	$	208.4			$	219.0			$	207.1			$	204.6			$	187.2			(5	)	11

Consumer & Business Banking
Average deposits	$	609,035			$	590,653			$	576,573			$	567,415			$	548,447			3		11
Deposit margin	1.88			%	1.80			%	1.79			%	1.80			%	1.86			%
Business banking origination volume	$	1,703			$	1,641			$	1,803			$	2,183			$	1,688			4		1
Client investment assets	245,050				234,532				231,574				224,741				220,004				4		11

Mortgage Banking (in billions)
Mortgage origination volume by channel
Retail	$	9.0			$	12.7			$	11.7			$	11.2			$	8.7			(29	)	3
Correspondent	13.4				16.4				15.4				13.8				13.7				(18	)	(2	)
Total mortgage origination volume (c)	$	22.4			$	29.1			$	27.1			$	25.0			$	22.4			(23	)	—
Total loans serviced (period-end)	$	836.3			$	846.6			$	863.3			$	880.3			$	898.7			(1	)	(7	)
Third-party mortgage loans serviced (period-end)	582.6				591.5				609.2				629.9				655.4				(2	)	(11	)
MSR carrying value (period-end)	6.1				6.1				4.9				5.1				5.7				—		7
Ratio of MSR carrying value (period-end) to third-party mortgage
loans serviced (period-end)	1.05			%	1.03			%	0.80			%	0.81			%	0.87			%
MSR revenue multiple (d)	3.00		x		2.94		x		2.29		x		2.31		x		2.49		x

Credit Card, excluding Commercial Card
Credit card sales volume (in billions)	$	139.7			$	148.5			$	139.2			$	136.0			$	121.7			(6	)	15
New accounts opened	2.5				2.7				2.7				2.7				2.3				(7	)	9

Card Services
Net revenue rate	10.15			%	10.14			%	11.04			%	12.28			%	11.81			%

Commerce Solutions
Merchant processing volume (in billions)	$	274.3			$	284.9			$	267.2			$	263.8			$	247.5			(4	)	11

Auto
Loan and lease origination volume (in billions)	$	8.0			$	8.0			$	9.3			$	8.5			$	9.6			—		(17	)
Average Auto operating lease assets	13,757				12,613				11,418				10,435				9,615				9		43


(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 $25.6 billion, $33.5 billion, $30.9 billion, $28.6 billion and $24.4 billion for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, 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
																1Q17 Change
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,812		$	1,612		$	1,855		$	1,636		$	1,321		12	%	37	%
Principal transactions	3,507			2,372			3,282			2,965			2,470			48		42
Lending- and deposit-related fees	388			400			402			385			394			(3	)	(2	)
Asset management, administration and commissions	1,052			1,000			968			1,025			1,069			5		(2	)
All other income	177			242			183			464			280			(27	)	(37	)
Noninterest revenue	6,936			5,626			6,690			6,475			5,534			23		25
Net interest income	2,600			2,835			2,765			2,690			2,601			(8	)	—
TOTAL NET REVENUE (a)	9,536			8,461			9,455			9,165			8,135			13		17

Provision for credit losses	(96		)	(198		)	67			235			459			52		NM

NONINTEREST EXPENSE
Compensation expense	2,800			1,696			2,513			2,737			2,600			65		8
Noncompensation expense	2,321			2,476			2,421			2,341			2,208			(6	)	5
TOTAL NONINTEREST EXPENSE	5,121			4,172			4,934			5,078			4,808			23		7

Income before income tax expense	4,511			4,487			4,454			3,852			2,868			1		57
Income tax expense	1,270			1,056			1,542			1,359			889			20		43
NET INCOME	$	3,241		$	3,431		$	2,912		$	2,493		$	1,979		(6	)	64

FINANCIAL RATIOS
ROE (b)	18		%	20		%	17		%	15		%	11		%
Overhead ratio	54			49			52			55			59
Compensation expense as a percent of total net revenue	29			20			27			30			32

REVENUE BY BUSINESS
Investment Banking	$	1,651		$	1,487		$	1,740		$	1,492		$	1,231		11		34
Treasury Services	981			950			917			892			884			3		11
Lending	389			346			283			277			302			12		29
Total Banking	3,021			2,783			2,940			2,661			2,417			9		25
Fixed Income Markets	4,215			3,369			4,334			3,959			3,597			25		17
Equity Markets	1,606			1,150			1,414			1,600			1,576			40		2
Securities Services	916			887			916			907			881			3		4
Credit Adjustments & Other (c)	(222		)	272			(149		)	38			(336		)	NM		34
Total Markets & Investor Services	6,515			5,678			6,515			6,504			5,718			15		14
TOTAL NET REVENUE	$	9,536		$	8,461		$	9,455		$	9,165		$	8,135		13		17

(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 $551 million, $591 million, $483 million, $476 million and $498 million for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.


(b)	Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which includes no longer allocating for goodwill and other intangible assets. For further information, see pages 76-85 of the 2016 Annual Report on Form 10-K.


(c)	Consists primarily of credit valuation adjustments (“CVA”) managed by the Credit Portfolio Group, funding valuation adjustments (“FVA”) and debit valuation adjustments (“DVA”) on derivatives. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.

Page 15



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
	QUARTERLY TRENDS
																1Q17 Change
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
SELECTED BALANCE SHEET DATA (period-end)
Assets	$	840,304		$	803,511		$	825,933		$	826,019		$	801,053		5	%	5	%
Loans:
Loans retained (a)	107,902			111,872			117,133			112,637			109,132			(4	)	(1	)
Loans held-for-sale and loans at fair value	6,477			3,781			4,184			5,600			2,381			71		172
Total loans	114,379			115,653			121,317			118,237			111,513			(1	)	3
Core loans	114,003			115,243			120,885			117,821			111,050			(1	)	3

Equity (b)	70,000			64,000			64,000			64,000			64,000			9		9

SELECTED BALANCE SHEET DATA (average)
Assets	$	838,017		$	836,446		$	811,217		$	815,886		$	797,548		—		5
Trading assets - debt and equity instruments	328,339			304,348			306,431			306,418			285,122			8		15
Trading assets - derivative receivables	58,948			65,675			63,829			61,457			62,557			(10	)	(6	)
Loans:
Loans retained (a)	108,389			112,987			110,941			111,668			108,712			(4	)	—
Loans held-for-sale and loans at fair value	5,308			4,998			3,864			3,169			3,204			6		66
Total loans	113,697			117,985			114,805			114,837			111,916			(4	)	2
Core loans	113,309			117,570			114,380			114,421			111,417			(4	)	2

Equity (b)	70,000			64,000			64,000			64,000			64,000			9		9

Headcount	48,700			48,748			49,176			48,805			49,067			—		(1	)

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	(18	)	$	29		$	3		$	90		$	46		NM		NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (a)(c)	308			467			614			623			650			(34	)	(53	)
Nonaccrual loans held-for-sale and loans at fair value	109			109			26			7			7			—		NM
Total nonaccrual loans	417			576			640			630			657			(28	)	(37	)

Derivative receivables	179			223			232			220			212			(20	)	(16	)
Assets acquired in loan satisfactions	87			79			75			75			62			10		40
Total nonperforming assets	683			878			947			925			931			(22	)	(27	)
Allowance for credit losses:
Allowance for loan losses	1,346			1,420			1,611			1,669			1,497			(5	)	(10	)
Allowance for lending-related commitments	797			801			837			715			744			—		7
Total allowance for credit losses	2,143			2,221			2,448			2,384			2,241			(4	)	(4	)

Net charge-off/(recovery) rate (a)	(0.07		)%	0.10		%	0.01		%	0.32		%	0.17		%
Allowance for loan losses to period-end loans retained (a)	1.25			1.27			1.38			1.48			1.37
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (d)	1.91			1.86			2.02			2.23			2.11
Allowance for loan losses to nonaccrual loans retained (a)(c)	437			304			262			268			230
Nonaccrual loans to total period-end loans	0.36			0.50			0.53			0.53			0.59


(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)	Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which includes no longer allocating for goodwill and other intangible assets. For further information, see pages 76-85 of the 2016 Annual Report on Form 10-K.


(c)	Allowance for loan losses of $61 million, $113 million, $202 million, $211 million and $233 million were held against nonaccrual loans at March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.


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

Page 16



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
	QUARTERLY TRENDS
																1Q17 Change
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
BUSINESS METRICS
Advisory	$	501		$	517		$	542		$	466		$	585		(3	)%	(14	)%
Equity underwriting	394			299			370			285			205			32		92
Debt underwriting	917			796			943			885			531			15		73
Total investment banking fees	$	1,812		$	1,612		$	1,855		$	1,636		$	1,321		12		37

Assets under custody (“AUC”) (period-end) (in billions)	$	21,383		$	20,520		$	21,224		$	20,470		$	20,283		4		5

Client deposits and other third-party liabilities (average) (a)	391,716			390,793			381,542			373,671			358,926			—		9

Trade finance loans (period-end)	16,613			15,923			16,957			17,362			18,078			4		(8	)

95% Confidence Level - Total CIB VaR (average) (b)
CIB trading VaR by risk type: (c)
Fixed income	$	28		$	40		$	49		$	46		$	46		(30	)	(39	)
Foreign exchange	10			12			16			12			9			(17	)	11
Equities	11			10			8			14			22			10		(50	)
Commodities and other	8			9			9			9			9			(11	)	(11	)
Diversification benefit to CIB trading VaR (d)	(34		)	(36		)	(42		)	(37		)	(32		)	6		(6	)
CIB trading VaR (c)	23			35			40			44			54			(34	)	(57	)
Credit portfolio VaR (e)	10			12			13			12			12			(17	)	(17	)
Diversification benefit to CIB VaR (d)	(8		)	(8		)	(10		)	(12		)	(11		)	—		27
CIB VaR	$	25		$	39		$	43		$	44		$	55		(36	)	(55	)


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

(b)

As discussed in footnote (c) on page 3, certain private equity positions in CIB were removed from the VaR calculation as a result of the scope refinement. 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 $3 million, $7 million, and $5 million, CIB trading VaR of $2 million, $4 million, and $4 million, CIB VaR of $2 million, $5 million, and $6 million for the three months ended March 31, 2017, December 31, 2016, and September 30, 2016, respectively. Additionally, the Firm refined the historical proxy time series inputs to certain VaR models for certain asset-backed products. In the absence of these enhancements, the average VaR, without diversification, for each of the following reported components would have been higher by the following amounts: CIB Fixed income VaR of $5 million, CIB trading VaR of $4 million, CIB VaR of $3 million for the three months ended March 31, 2017.


(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 118–119 of the 2016 Annual Report.


(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
																			1Q17 Change
	1Q17				4Q16			3Q16				2Q16				1Q16			4Q16		1Q16
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	235			$	230		$	228			$	227			$	232		2	%	1	%
Asset management, administration and commissions	18				15			14				18				22			20		(18	)
All other income (a)	346				355			336				341				302			(3	)	15
Noninterest revenue	599				600			578				586				556			—		8
Net interest income	1,419				1,363			1,292				1,231				1,247			4		14
TOTAL NET REVENUE (b)	2,018				1,963			1,870				1,817				1,803			3		12

Provision for credit losses	(37		)		124			(121		)		(25		)		304			NM		NM

NONINTEREST EXPENSE
Compensation expense	371				333			343				322				334			11		11
Noncompensation expense	454				411			403				409				379			10		20
TOTAL NONINTEREST EXPENSE	825				744			746				731				713			11		16

Income before income tax expense	1,230				1,095			1,245				1,111				786			12		56
Income tax expense	431				408			467				415				290			6		49
NET INCOME	$	799			$	687		$	778			$	696			$	496		16		61

Revenue by product
Lending	$	992			$	994		$	956			$	917			$	928		—		7
Treasury services	796				730			693				680				694			9		15
Investment banking (c)	216				220			203				207				155			(2	)	39
Other	14				19			18				13				26			(26	)	(46	)
Total Commercial Banking net revenue	$	2,018			$	1,963		$	1,870			$	1,817			$	1,803		3		12

Investment banking revenue, gross (d)	$	646			$	608		$	600			$	595			$	483		6		34

Revenue by client segment
Middle Market Banking	$	797			$	764		$	716			$	698			$	707		4		13
Corporate Client Banking	653				634			612				599				547			3		19
Commercial Term Lending	367				355			350				342				361			3		2
Real Estate Banking	134				128			117				107				104			5		29
Other	67				82			75				71				84			(18	)	(20	)
Total Commercial Banking net revenue	$	2,018			$	1,963		$	1,870			$	1,817			$	1,803		3		12

FINANCIAL RATIOS
ROE (e)	15			%	16		%	18			%	16			%	11		%
Overhead ratio	41				38			40				40				40


(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 activities of $121 million, $134 million, $127 million, $124 million and $120 million for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, 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)	Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which includes no longer allocating for goodwill and other intangible assets. For further information, see pages 76-85 of the 2016 Annual Report on Form 10-K.

Page 18



JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)	QUARTERLY TRENDS
																	1Q17 Change
	1Q17				4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	217,348			$	214,341		$	212,189		$	208,151		$	204,602		1	%	6	%
Loans:
Loans retained	194,538				188,261			185,609			179,164			173,583			3		12
Loans held-for-sale and loans at fair value	1,056				734			191			134			338			44		212
Total loans	$	195,594			$	188,995		$	185,800		$	179,298		$	173,921		3		12
Core loans	195,296				188,673			185,354			178,809			173,316			4		13
Equity (a)	20,000				16,000			16,000			16,000			16,000			25		25

Period-end loans by client segment
Middle Market Banking	$	55,116			$	53,931		$	53,584		$	51,951		$	51,644		2		7
Corporate Client Banking	45,795				43,025			43,514			42,372			40,712			6		12
Commercial Term Lending	72,496				71,249			69,133			66,499			64,292			2		13
Real Estate Banking	15,846				14,722			13,905			12,872			11,656			8		36
Other	6,341				6,068			5,664			5,604			5,617			4		13
Total Commercial Banking loans	$	195,594			$	188,995		$	185,800		$	179,298		$	173,921		3		12

SELECTED BALANCE SHEET DATA (average)
Total assets	$	213,784			$	212,848		$	208,765		$	205,953		$	202,492		—		6
Loans:
Loans retained	190,774				187,528			180,962			176,229			169,837			2		12
Loans held-for-sale and loans at fair value	717				1,342			517			583			448			(47	)	60
Total loans	$	191,491			$	188,870		$	181,479		$	176,812		$	170,285		1		12
Core loans	191,180				188,478			181,016			176,251			169,626			1		13
Client deposits and other third-party liabilities	176,780				180,036			173,696			170,717			173,079			(2	)	2
Equity (a)	20,000				16,000			16,000			16,000			16,000			25		25

Average loans by client segment
Middle Market Banking	$	54,269			$	53,809		$	52,648		$	51,939		$	50,557		1		7
Corporate Client Banking	43,580				44,387			42,139			41,109			39,348			(2	)	11
Commercial Term Lending	71,880				70,316			67,696			65,262			63,475			2		13
Real Estate Banking	15,525				14,452			13,382			12,936			11,464			7		35
Other	6,237				5,906			5,614			5,566			5,441			6		15
Total Commercial Banking loans	$	191,491			$	188,870		$	181,479		$	176,812		$	170,285		1		12

Headcount	8,554				8,365			8,333			8,127			7,971			2		7

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	(10	)		$	53		$	44		$	60		$	6		NM		NM
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (b)	929				1,149			1,212			1,258			1,257			(19	)	(26	)
Nonaccrual loans held-for-sale and loans
at fair value	—				—			—			—			—			—		—
Total nonaccrual loans	929				1,149			1,212			1,258			1,257			(19	)	(26	)

Assets acquired in loan satisfactions	11				1			1			1			1			NM		NM
Total nonperforming assets	940				1,150			1,213			1,259			1,258			(18	)	(25	)
Allowance for credit losses:
Allowance for loan losses	2,896				2,925			2,858			3,041			3,099			(1	)	(7	)
Allowance for lending-related commitments	251				248			244			226			252			1		—
Total allowance for credit losses	3,147				3,173			3,102			3,267			3,351			(1	)	(6	)

Net charge-off/(recovery) rate (c)	(0.02		)	%	0.11		%	0.10		%	0.14		%	0.01		%
Allowance for loan losses to period-end loans retained	1.49				1.55			1.54			1.70			1.79
Allowance for loan losses to nonaccrual loans retained (b)	312				255			236			242			247
Nonaccrual loans to period-end total loans	0.47				0.61			0.65			0.70			0.72


(a)	Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which includes no longer allocating for goodwill and other intangible assets. For further information, see pages 76-85 of the 2016 Annual Report on Form 10-K.


(b)	Allowance for loan losses of $115 million, $155 million, $221 million, $292 million and $278 million was held against nonaccrual loans retained at March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.


(c)	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 & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)


	QUARTERLY TRENDS
																		1Q17 Change
	1Q17			4Q16				3Q16			2Q16				1Q16			4Q16		1Q16
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	2,105		$	2,209			$	2,087		$	2,102			$	2,016		(5	)%	4	%
All other income	163			89				190			90				229			83		(29	)
Noninterest revenue	2,268			2,298				2,277			2,192				2,245			(1	)	1
Net interest income	819			789				770			747				727			4		13
TOTAL NET REVENUE	3,087			3,087				3,047			2,939				2,972			—		4

Provision for credit losses	18			(11		)		32			(8		)		13			NM		38

NONINTEREST EXPENSE
Compensation expense	1,331			1,296				1,279			1,249				1,241			3		7
Noncompensation expense	1,249			879				851			849				834			42		50
TOTAL NONINTEREST EXPENSE	2,580			2,175				2,130			2,098				2,075			19		24

Income before income tax expense	489			923				885			849				884			(47	)	(45	)
Income tax expense	104			337				328			328				297			(69	)	(65	)
NET INCOME	$	385		$	586			$	557		$	521			$	587		(34	)	(34	)

REVENUE BY LINE OF BUSINESS
Asset Management	$	1,487		$	1,550			$	1,497		$	1,424			$	1,499		(4	)	(1	)
Wealth Management	1,600			1,537				1,550			1,515				1,473			4		9
TOTAL NET REVENUE	$	3,087		$	3,087			$	3,047		$	2,939			$	2,972		—		4

FINANCIAL RATIOS
ROE (a)	16		%	25			%	24		%	22			%	25		%
Overhead ratio	84			70				70			71				70
Pretax margin ratio:
Asset Management	1			30				31			30				33
Wealth Management	30			30				27			28				26
Asset & Wealth Management	16			30				29			29				30

Headcount	22,196			21,082				21,142			20,897				20,885			5		6

Number of client advisors	2,480			2,504				2,560			2,622				2,750			(1	)	(10	)


(a)	Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which includes no longer allocating for goodwill and other intangible assets. For further information, see pages 76-85 of the 2016 Annual Report on Form 10-K.

Page 20



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

	QUARTERLY TRENDS
																1Q17 Change
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	141,049		$	138,384		$	137,295		$	134,380		$	131,276		2	%	7	%
Loans (a)	119,947			118,039			116,043			113,319			111,050			2		8
Core loans	119,947			118,039			116,043			113,319			111,050			2		8
Deposits	157,295			161,577			157,274			148,967			152,908			(3	)	3
Equity (b)	9,000			9,000			9,000			9,000			9,000			—		—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	138,178		$	135,213		$	134,920		$	131,529		$	129,790		2		6
Loans	118,310			115,063			114,201			111,704			110,497			3		7
Core loans	118,310			115,063			114,201			111,704			110,497			3		7
Deposits	158,810			158,335			153,121			151,214			150,616			—		5
Equity (b)	9,000			9,000			9,000			9,000			9,000			—		—

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	3		$	—		$	5		$	2		$	9		NM		(67	)
Nonaccrual loans	379			390			372			254			335			(3	)	13
Allowance for credit losses:
Allowance for loan losses	289			274			285			258			270			5		7
Allowance for lending-related commitments	4			4			5			4			4			—		—
Total allowance for credit losses	293			278			290			262			274			5		7
Net charge-off/(recovery) rate	0.01		%	—		%	0.02		%	0.01		%	0.03		%
Allowance for loan losses to period-end loans	0.24			0.23			0.25			0.23			0.24
Allowance for loan losses to nonaccrual loans	76			70			77			102			81
Nonaccrual loans to period-end loans	0.32			0.33			0.32			0.22			0.30


(a)	Included $34.5 billion, $32.8 billion, $30.7 billion, $29.2 billion, and $27.7 billion of prime mortgage loans reported in the Consumer, excluding credit card, loan portfolio at March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.


(b)	Effective the first quarter of 2017, the Firm revised its method for allocating LOB equity, which includes no longer allocating for goodwill and other intangible assets. For further information, see pages 76-85 of the 2016 Annual Report on Form 10-K.

Page 21



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


																Mar 31, 2017
																Change
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,		Mar 31,
CLIENT ASSETS	2017			2016			2016			2016			2016			2016		2016
Assets by asset class
Liquidity	$	444		$	436		$	403		$	385		$	386		2	%	15	%
Fixed income	432			420			437			424			403			3		7
Equity	378			351			357			342			346			8		9
Multi-asset and alternatives	587			564			575			542			541			4		9
TOTAL ASSETS UNDER MANAGEMENT	1,841			1,771			1,772			1,693			1,676			4		10
Custody/brokerage/administration/deposits	707			682			675			651			647			4		9
TOTAL CLIENT ASSETS	$	2,548		$	2,453		$	2,447		$	2,344		$	2,323		4		10

Memo:
Alternatives client assets (a)	$	157		$	154		$	157		$	151		$	151		2		4

Assets by client segment
Private Banking	$	468		$	435		$	433		$	425		$	428		8		9
Institutional	889			869			862			811			798			2		11
Retail	484			467			477			457			450			4		8
TOTAL ASSETS UNDER MANAGEMENT	$	1,841		$	1,771		$	1,772		$	1,693		$	1,676		4		10

Private Banking	$	1,154		$	1,098		$	1,089		$	1,058		$	1,057		5		9
Institutional	908			886			879			827			814			2		12
Retail	486			469			479			459			452			4		8
TOTAL CLIENT ASSETS	$	2,548		$	2,453		$	2,447		$	2,344		$	2,323		4		10

Assets under management rollforward
Beginning balance	$	1,771		$	1,772		$	1,693		$	1,676		$	1,723
Net asset flows:
Liquidity	1			35			18			1			(30		)
Fixed income	5			(6		)	9			13			14
Equity	(4		)	(12		)	(7		)	(5		)	(5		)
Multi-asset and alternatives	7			(3		)	21			(2		)	6
Market/performance/other impacts	61			(15		)	38			10			(32		)
Ending balance	$	1,841		$	1,771		$	1,772		$	1,693		$	1,676

Client assets rollforward
Beginning balance	$	2,453		$	2,447		$	2,344		$	2,323		$	2,350
Net asset flows	10			21			47			2			(7		)
Market/performance/other impacts	85			(15		)	56			19			(20		)
Ending balance	$	2,548		$	2,453		$	2,447		$	2,344		$	2,323


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

Page 22



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

	QUARTERLY TRENDS
																1Q17 Change
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
INCOME STATEMENT
REVENUE
Principal transactions	$	15		$	27		$	57		$	29		$	97		(44	)%	(85	)%
Securities gains	(3		)	5			64			20			51			NM		NM
All other income	61			269			76			122			121			(77	)	(50	)
Noninterest revenue	73			301			197			171			269			(76	)	(73	)
Net interest income	(98		)	(498		)	(385		)	(329		)	(213		)	80		54
TOTAL NET REVENUE (a)	(25		)	(197		)	(188		)	(158		)	56			87		NM

Provision for credit losses	—			—			(1		)	(1		)	(2		)	—		100

NONINTEREST EXPENSE (b)	98			439			143			(273		)	153			(78	)	(36	)
Income/(loss) before income tax expense/(benefit)	(123		)	(636		)	(330		)	116			(95		)	81		(29	)
Income tax expense/(benefit)	(158		)	(295		)	(165		)	282			(63		)	46		(151	)
NET INCOME/(LOSS)	$	35		$	(341	)	$	(165	)	$	(166	)	$	(32	)	NM		NM

MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”)	(7		)	(256		)	(211		)	(226		)	(94		)	97		93
Other Corporate	(18		)	59			23			68			150			NM		NM
TOTAL NET REVENUE	$	(25	)	$	(197	)	$	(188	)	$	(158	)	$	56		87		NM

NET INCOME/(LOSS)
Treasury and CIO	(67		)	(197		)	(208		)	(199		)	(111		)	66		40
Other Corporate	102			(144		)	43			33			79			NM		29
TOTAL NET INCOME/(LOSS)	$	35		$	(341	)	$	(165	)	$	(166	)	$	(32	)	NM		NM

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	822,819		$	799,426		$	824,336		$	778,359		$	781,806		3		5
Loans	1,483			1,592			1,738			1,862			1,983			(7	)	(25	)
Core loans (c)	1,480			1,589			1,735			1,857			1,978			(7	)	(25	)

Headcount	33,305			32,358			31,572			30,402			29,572			3		13

SUPPLEMENTAL INFORMATION
TREASURY and CIO
Securities gains	$	(15	)	$	(3	)	$	64		$	20		$	51		(400	)%	NM
Investment securities portfolio (average) (d)	284,203			278,843			271,816			278,962			283,443			2		—
Investment securities portfolio (period-end) (e)	279,530			286,838			269,207			275,562			282,424			(3	)	(1	)
Mortgage loans (average)	1,454			1,580			1,722			1,858			2,005			(8	)	(27	)
Mortgage loans (period-end)	1,404			1,513			1,661			1,798			1,927			(7	)	(27	)


(a)	Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $228 million, $222 million, $218 million, $227 million, and $218 million for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.


(b)	Included legal expense/(benefit) of $(228) million, $165 million, $(85) million and $(467) million for the three months ended March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, respectively. Legal expense/(benefit) for the three months ended March 31, 2016 was not material.


(c)	Average core loans were $1.6 billion, $1.7 billion, $1.8 billion, $2.0 billion, and $2.1 billion for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.


(d)	Average investment securities included held-to-maturity balances of $49.4 billion, $50.9 billion, $52.8 billion, $53.4 billion, and $48.3 billion for the three months ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.


(e)	Period-end investment securities included held-to-maturity balances of $48.9 billion, $50.2 billion, $52.0 billion, $53.8 billion, and $47.9 billion at March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, respectively.

Page 23



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
											Mar 31, 2017
											Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Mar 31,
	2017		2016		2016		2016		2016		2016		2016
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained, excluding PCI loans	$	326,198	$	328,727	$	326,353	$	322,690	$	314,128	(1	)%	4	%
Loans - PCI	34,385		35,679		37,045		38,360		39,743		(4	)	(13	)
Total loans retained	360,583		364,406		363,398		361,050		353,871		(1	)	2
Loans held-for-sale	6,472		238		398		255		321		NM		NM
Total consumer, excluding credit card loans	367,055		364,644		363,796		361,305		354,192		1		4

Credit card loans
Loans retained	134,917		141,711		133,346		131,507		126,012		(5	)	7
Loans held-for-sale	99		105		89		84		78		(6	)	27
Total credit card loans	135,016		141,816		133,435		131,591		126,090		(5	)	7
Total consumer loans	502,071		506,460		497,231		492,896		480,282		(1	)	5

Wholesale loans (b)
Loans retained	386,370		383,790		386,449		374,174		364,312		1		6
Loans held-for-sale and loans at fair value	7,533		4,515		4,374		5,734		2,719		67		177
Total wholesale loans	393,903		388,305		390,823		379,908		367,031		1		7

Total loans	895,974		894,765		888,054		872,804		847,313		—		6
Derivative receivables	56,063		64,078		65,579		78,446		70,209		(13	)	(20	)
Receivables from customers and other (c)	21,473		17,560		19,163		14,426		16,294		22		32
Total credit-related assets	973,510		976,403		972,796		965,676		933,816		—		4

Lending-related commitments
Consumer, excluding credit card	53,594		54,797		59,990		59,224		60,744		(2	)	(12	)
Credit card	577,096		553,891		549,634		539,105		532,224		4		8
Wholesale	364,520		368,014		368,987		357,145		367,466		(1	)	(1	)
Total lending-related commitments	995,210		976,702		978,611		955,474		960,434		2		4

Total credit exposure	$	1,968,720	$	1,953,105	$	1,951,407	$	1,921,150	$	1,894,250	1		4

Memo: Total by category
Consumer exposure (d)	$	1,132,889	$	1,115,268	$	1,106,980	$	1,091,363	$	1,073,377	2		6
Wholesale exposures (e)	835,831		837,837		844,427		829,787		820,873		—		2
Total credit exposure	$	1,968,720	$	1,953,105	$	1,951,407	$	1,921,150	$	1,894,250	1		4

Note 2: 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 AWM, and prime mortgage loans reported in Corporate.


(b)	Includes loans reported in CIB, CB and AWM 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)

																Mar 31, 2017
																Change
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,		Mar 31,
	2017			2016			2016			2016			2016			2016		2016
NONPERFORMING ASSETS (a)
Consumer nonaccrual loans (b)(c)	$	4,549		$	4,820		$	4,961		$	5,085		$	5,225		(6	)	(13	)

Wholesale nonaccrual loans
Loans retained	1,571			1,954			2,151			2,093			2,203			(20	)	(29	)
Loans held-for-sale and loans at fair value	109			109			26			7			7			—		NM
Total wholesale nonaccrual loans	1,680			2,063			2,177			2,100			2,210			(19	)	(24	)

Total nonaccrual loans	6,229			6,883			7,138			7,185			7,435			(10	)	(16	)

Derivative receivables	179			223			232			220			212			(20	)	(16	)
Assets acquired in loan satisfactions	418			429			409			352			376			(3	)	11
Total nonperforming assets	6,826			7,535			7,779			7,757			8,023			(9	)	(15	)
Wholesale lending-related commitments (d)	882			506			503			460			722			74		22
Total nonperforming exposure	$	7,708		$	8,041		$	8,282		$	8,217		$	8,745		(4	)	(12	)

NONACCRUAL LOAN-RELATED RATIOS
Total nonaccrual loans to total loans	0.70		%	0.77		%	0.80		%	0.82		%	0.88		%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans	1.24			1.32			1.36			1.41			1.48
Total wholesale nonaccrual loans to total
wholesale loans	0.43			0.53			0.56			0.55			0.60

(a)

At March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $4.5 billion, $5.0 billion, $5.0 billion, $5.2 billion and $5.7 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 $234 million, $263 million, $259 million, $252 million and $269 million, respectively, that are 90 or more days past due; (3) real estate owned (“REO”) insured by U.S. government agencies of $121 million, $142 million, $163 million, $355 million and $360 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 $156 million, $53 million, $53 million and $61 million at March 31, 2017, December 31, 2016, September 30, 2016 and March 31, 2016, 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
																1Q17 Change
	1Q17			4Q16			3Q16			2Q16			1Q16			4Q16		1Q16
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	13,776		$	14,204		$	14,227		$	13,994		$	13,555		(3	)%	2	%
Net charge-offs:
Gross charge-offs	1,959			1,532			1,375			1,433			1,357			28		44
Gross recoveries	(305		)	(252		)	(254		)	(252		)	(247		)	(21	)	(23	)
Net charge-offs	1,654			1,280			1,121			1,181			1,110			29		49
Write-offs of PCI loans and other (a)	24			32			36			41			47			(25	)	(49	)
Provision for loan losses	1,316			896			1,132			1,456			1,596			47		(18	)
Other	(1		)	(12		)	2			(1		)	—			92		NM
Ending balance	$	13,413		$	13,776		$	14,204		$	14,227		$	13,994		(3	)	(4	)

ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	1,078		$	1,100		$	960		$	1,014		$	786		(2	)	37
Provision for lending-related commitments	(1		)	(32		)	139			(54		)	228			97		NM
Other	—			10			1			—			—			(100	)	—
Ending balance	$	1,077		$	1,078		$	1,100		$	960		$	1,014		—		6

Total allowance for credit losses	$	14,490		$	14,854		$	15,304		$	15,187		$	15,008		(2	)	(3	)

NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans (b) (c)	0.76		%	0.31		%	0.26		%	0.19		%	0.25		%
Credit card retained loans	2.94			2.67			2.51			2.70			2.62
Total consumer retained loans (c)	1.35			0.95			0.86			0.85			0.89
Wholesale retained loans	(0.03		)	0.08			0.05			0.17			0.07
Total retained loans (c)	0.76			0.58			0.51			0.56			0.53
Consumer retained loans, excluding credit card and
PCI loans (c)	0.84			0.35			0.29			0.21			0.29
Consumer retained loans, excluding PCI loans (c)	1.46			1.03			0.93			0.92			0.97
Total retained, excluding PCI loans (c)	0.79			0.60			0.54			0.58			0.56

Memo: Average retained loans
Consumer retained, excluding credit card loans	$	366,098		$	364,857		$	362,457		$	357,602		$	348,916		—		5
Credit card retained loans	137,112			136,085			132,626			128,314			127,227			1		8
Total average retained consumer loans	503,210			500,942			495,083			485,916			476,143			—		6
Wholesale retained loans	382,367			382,360			374,593			369,706			360,306			—		6
Total average retained loans	$	885,577		$	883,302		$	869,676		$	855,622		$	836,449		—		6

Consumer retained, excluding credit card and
PCI loans	$	331,057		$	328,507		$	324,741		$	318,556		$	308,526		1		7
Consumer retained, excluding PCI loans	468,169			464,592			457,367			446,870			435,753			1		7
Total retained, excluding PCI loans	850,533			846,949			831,956			816,572			796,055			—		7


(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.

(c)

For the first quarter of 2017, excluding the net charge-offs related to the student loan portfolio write-down, the net charge-off rate for Consumer retained, excluding credit card loans would have been 0.24%; Total consumer retained loans would have been 0.98%; Total retained loans would have been 0.54%; Consumer retained, excluding credit card loans and PCI loans would have been 0.27% ; Total consumer retained loans excluding PCI loans would have been 1.05%; and Total retained, excluding PCI loans would have been 0.57%.

Page 26



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

																Mar 31, 2017
																Change
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,		Mar 31,
	2017			2016			2016			2016			2016			2016		2016
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)	$	300		$	308		$	352		$	365		$	371		(3	)%	(19	)%
Formula-based	2,339			2,579			2,667			2,627			2,694			(9	)	(13	)
PCI	2,287			2,311			2,618			2,654			2,695			(1	)	(15	)
Total consumer, excluding credit card	4,926			5,198			5,637			5,646			5,760			(5	)	(14	)
Credit card
Asset-specific (a)(b)	373			358			363			361			427			4		(13	)
Formula-based	3,661			3,676			3,521			3,323			3,007			—		22
Total credit card	4,034			4,034			3,884			3,684			3,434			—		17
Total consumer	8,960			9,232			9,521			9,330			9,194			(3	)	(3	)
Wholesale
Asset-specific (a)	249			342			490			525			565			(27	)	(56	)
Formula-based	4,204			4,202			4,193			4,372			4,235			—		(1	)
Total wholesale	4,453			4,544			4,683			4,897			4,800			(2	)	(7	)
Total allowance for loan losses	13,413			13,776			14,204			14,227			13,994			(3	)	(4	)
Allowance for lending-related commitments	1,077			1,078			1,100			960			1,014			—		6
Total allowance for credit losses	$	14,490		$	14,854		$	15,304		$	15,187		$	15,008		(2	)	(3	)

CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	1.37		%	1.43		%	1.55		%	1.56		%	1.63		%
Credit card allowance to total credit card retained loans	2.99			2.85			2.91			2.80			2.73
Wholesale allowance to total wholesale retained loans	1.15			1.18			1.21			1.31			1.32
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (c)	1.27			1.30			1.33			1.45			1.47
Total allowance to total retained loans	1.52			1.55			1.61			1.64			1.66
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	112			109			115			111			112
Total allowance, excluding credit card allowance, to retained
nonaccrual loans, excluding credit card nonaccrual loans (d)	157			145			146			147			143
Wholesale allowance to wholesale retained nonaccrual loans	283			233			218			234			218
Total allowance to total retained nonaccrual loans	225			205			201			198			190

CREDIT RATIOS, excluding PCI loans
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	0.81			0.88			0.93			0.93			0.98
Total allowance to total retained loans	1.31			1.34			1.37			1.40			1.40
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	60			61			62			59			59
Allowance, excluding credit card allowance, to retained non-
accrual loans, excluding credit card nonaccrual loans (d)	119			111			109			110			107
Total allowance to total retained nonaccrual loans	187			171			164			161			153


(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 AND KEY PERFORMANCE MEASURES

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.

Page 28

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