JPMORGAN CHASE & CO - FORM 8-K - EX-99.2 - EARNINGS RELEASE FINANCIAL SUPPLEMENT - 4Q17

Attached files

file	filename
EX-99.1 - EARNINGS RELEASE - 4Q17 - JPMORGAN CHASE & CO	a4q17erfexhibit991narrative.htm
EX-12.2 - RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS - 4Q17 - JPMORGAN CHASE & CO	a4q17erfexhibit122.htm
EX-12.1 - RATIO OF EARNINGS TO FIXED CHARGES - 4Q17 - JPMORGAN CHASE & CO	a4q17erfexhibit121.htm
8-K - 8-K - JPMORGAN CHASE & CO	a4q17erf8kcover.htm

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FOURTH 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”) and the Glossary of Terms and Acronyms and Line of Business Metrics on pages 168-172 and pages 173-175, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017.



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

	QUARTERLY TRENDS																				FULL YEAR
																	4Q17 Change											2017 Change
SELECTED INCOME STATEMENT DATA	4Q17				3Q17			2Q17			1Q17			4Q16			3Q17		4Q16		2017				2016			2016
Reported Basis
Total net revenue	$	24,153			$	25,326		$	25,470		$	24,675		$	23,376		(5	)%	3	%	$	99,624			$	95,668		4	%
Total noninterest expense	14,591				14,318			14,506			15,019			13,833			2		5		58,434				55,771			5
Pre-provision profit	9,562				11,008			10,964			9,656			9,543			(13	)	—		41,190				39,897			3
Provision for credit losses	1,308				1,452			1,215			1,315			864			(10	)	51		5,290				5,361			(1	)
NET INCOME	4,232				6,732			7,029			6,448			6,727			(37	)	(37	)	24,441				24,733			(1	)

Managed Basis (a)
Total net revenue	25,450				26,200			26,405			25,586			24,333			(3	)	5		103,641				99,142			5
Total noninterest expense	14,591				14,318			14,506			15,019			13,833			2		5		58,434				55,771			5
Pre-provision profit	10,859				11,882			11,899			10,567			10,500			(9	)	3		45,207				43,371			4
Provision for credit losses	1,308				1,452			1,215			1,315			864			(10	)	51		5,290				5,361			(1	)
NET INCOME	4,232				6,732			7,029			6,448			6,727			(37	)	(37	)	24,441				24,733			(1	)

EARNINGS PER SHARE DATA
Net income: Basic	$	1.08			$	1.77		$	1.83		$	1.66		$	1.73		(39	)	(38	)	$	6.35			$	6.24		2
Diluted	1.07				1.76			1.82			1.65			1.71			(39	)	(37	)	6.31				6.19			2
Average shares: Basic	3,489.7				3,534.7			3,574.1			3,601.7			3,611.3			(1	)	(3	)	3,551.6				3,658.8			(3	)
Diluted	3,512.2				3,559.6			3,599.0			3,630.4			3,646.6			(1	)	(4	)	3,576.8				3,690.0			(3	)

MARKET AND PER COMMON SHARE DATA
Market capitalization	$	366,301			$	331,393		$	321,633		$	312,078		$	307,295		11		19		$	366,301			$	307,295		19
Common shares at period-end	3,425.3				3,469.7			3,519.0			3,552.8			3,561.2			(1	)	(4	)	3,425.3				3,561.2			(4	)
Closing share price (b)	$	106.94			$	95.51		$	91.40		$	87.84		$	86.29		12		24		$	106.94			$	86.29		24
Book value per share	67.04				66.95			66.05			64.68			64.06			—		5		67.04				64.06			5
Tangible book value per share (“TBVPS”) (c)	53.56				54.03			53.29			52.04			51.44			(1	)	4		53.56				51.44			4
Cash dividends declared per share	0.56				0.56			0.50			0.50			0.48			—		17		2.12				1.88			13

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)	7		%		11		%	12		%	11		%	11		%					10		%		10		%
Return on tangible common equity (“ROTCE”) (c)	8				13			14			13			14							12				13
Return on assets	0.66				1.04			1.10			1.03			1.06							0.96				1.00

CAPITAL RATIOS (e)
Common equity Tier 1 (“CET1”) capital ratio	12.2		%	(f)	12.6		%	12.6		%	12.5		%	12.4		%					12.2		%	(f)	12.4		%
Tier 1 capital ratio	13.9			(f)	14.3			14.4			14.3			14.1							13.9			(f)	14.1
Total capital ratio	15.9			(f)	16.1			16.0			15.6			15.5							15.9			(f)	15.5
Tier 1 leverage ratio	8.3			(f)	8.4			8.5			8.4			8.4							8.3			(f)	8.4

Note: On December 22, 2017, the Tax Cuts & Jobs Act (“TCJA”) was signed into law. The three months ended December 31, and the full year 2017 reflect an estimated $2.4 billion decrease in net income largely driven by the deemed repatriation charge and adjustments to the value of the Firm’s tax-oriented investments partially offset by a benefit from the revaluation of the Firm’s net deferred tax liability. The $2.4 billion decrease to net income comprises a $1.9 billion increase to income tax expense and a $520 million decrease to other income. On a managed basis, the equivalent amounts for these items were $2.3 billion and $145 million, respectively. The impact to EPS is a reduction of $0.69 and $0.68 for the three months and the full year ended December 31 2017, respectively. Refer to Corporate & Investment Bank, Commercial Banking and the Corporate business segment for impacts to the line of business results.


(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)	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.


(f)	Estimated.

Page 2



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

	QUARTERLY TRENDS																			FULL YEAR
																4Q17 Change										2017 Change
	4Q17			3Q17			2Q17			1Q17			4Q16			3Q17		4Q16		2017			2016			2016
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,533,600		$	2,563,074		$	2,563,174		$	2,546,290		$	2,490,972		(1	)%	2	%	$	2,533,600		$	2,490,972		2	%
Loans:
Consumer, excluding credit card loans	372,681			369,601			365,371			367,055			364,644			1		2		372,681			364,644			2
Credit card loans	149,511			141,313			140,141			135,016			141,816			6		5		149,511			141,816			5
Wholesale loans	408,505			402,847			403,255			393,903			388,305			1		5		408,505			388,305			5
Total Loans	930,697			913,761			908,767			895,974			894,765			2		4		930,697			894,765			4
Core loans (a)	863,683			843,432			834,935			812,119			806,152			2		7		863,683			806,152			7
Core loans (average) (a)	850,166			837,522			824,583			805,382			799,698			2		6		829,558			769,385			8

Deposits:
U.S. offices:
Noninterest-bearing	393,645			390,863			394,921			400,439			400,831			1		(2	)	393,645			400,831			(2	)
Interest-bearing	793,618			783,233			781,709			775,258			737,949			1		8		793,618			737,949			8
Non-U.S. offices:
Noninterest-bearing	15,576			17,907			17,152			16,456			14,764			(13	)	5		15,576			14,764			5
Interest-bearing	241,143			247,024			245,691			230,846			221,635			(2	)	9		241,143			221,635			9
Total deposits	1,443,982			1,439,027			1,439,473			1,422,999			1,375,179			—		5		1,443,982			1,375,179			5

Long-term debt (b)	284,080			288,582			292,973			289,492			295,245			(2	)	(4	)	284,080			295,245			(4	)
Common stockholders’ equity	229,625			232,314			232,415			229,795			228,122			(1	)	1		229,625			228,122			1
Total stockholders’ equity	255,693			258,382			258,483			255,863			254,190			(1	)	1		255,693			254,190			1

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

Headcount	252,539			251,503			249,257			246,345			243,355			—		4		252,539			243,355			4

95% CONFIDENCE LEVEL - TOTAL VaR
Average VaR (c)	$	34		$	30		$	27		$	25		$	40		13		(15	)

LINE OF BUSINESS NET REVENUE (d)
Consumer & Community Banking	$	12,070		$	12,033		$	11,412		$	10,970		$	11,019		—		10		$	46,485		$	44,915		3
Corporate & Investment Bank	7,478			8,590			8,889			9,536			8,461			(13	)	(12	)	34,493			35,216			(2	)
Commercial Banking	2,353			2,146			2,088			2,018			1,963			10		20		8,605			7,453			15
Asset & Wealth Management	3,374			3,245			3,212			3,087			3,087			4		9		12,918			12,045			7
Corporate	175			186			804			(25		)	(197		)	(6	)	NM		1,140			(487		)	NM
TOTAL NET REVENUE	$	25,450		$	26,200		$	26,405		$	25,586		$	24,333		(3	)	5		$	103,641		$	99,142		5

LINE OF BUSINESS NET INCOME
Consumer & Community Banking	$	2,631		$	2,553		$	2,223		$	1,988		$	2,364		3		11		$	9,395		$	9,714		(3	)
Corporate & Investment Bank	2,316			2,546			2,710			3,241			3,431			(9	)	(32	)	10,813			10,815			—
Commercial Banking	957			881			902			799			687			9		39		3,539			2,657			33
Asset & Wealth Management	654			674			624			385			586			(3	)	12		2,337			2,251			4
Corporate	(2,326		)	78			570			35			(341		)	NM		NM		(1,643		)	(704		)	(133	)
NET INCOME	$	4,232		$	6,732		$	7,029		$	6,448		$	6,727		(37	)	(37	)	$	24,441		$	24,733		(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 $218.8 billion, $221.7 billion, $221.0 billion, $212.0 billion and $212.6 billion for the periods ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively.

(c)

The Firm refined the historical proxy time series inputs to certain VaR models during the first quarter of 2017. This refinement was intended to more appropriately reflect the risk exposure from certain asset-backed products. In the absence of this refinement, the average Total VaR would have been higher by the following amounts: $2 million, $4 million, $6 million and $3 million for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively. 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
																4Q17 Change										2017 Change
REVENUE	4Q17			3Q17			2Q17			1Q17			4Q16			3Q17		4Q16		2017			2016			2016
Investment banking fees	$	1,778		$	1,843		$	1,810		$	1,817		$	1,605		(4	)%	11	%	$	7,248		$	6,448		12	%
Principal transactions	1,907			2,721			3,137			3,582			2,460			(30	)	(22	)	11,347			11,566			(2	)
Lending- and deposit-related fees	1,506			1,497			1,482			1,448			1,484			1		1		5,933			5,774			3
Asset management, administration and commissions	4,030			3,846			3,824			3,677			3,689			5		9		15,377			14,591			5
Securities gains/(losses)	(28		)	(1		)	(34		)	(3		)	5			NM		NM		(66		)	141			NM
Mortgage fees and related income	377			429			404			406			511			(12	)	(26	)	1,616			2,491			(35	)
Card income	1,110			1,242			1,167			914			918			(11	)	21		4,433			4,779			(7	)
Other income	446			951			1,472			770			951			(53	)	(53	)	3,639			3,795			(4	)
Noninterest revenue	11,126			12,528			13,262			12,611			11,623			(11	)	(4	)	49,527			49,585			—
Interest income	16,993			16,687			15,650			15,042			14,466			2		17		64,372			55,901			15
Interest expense	3,966			3,889			3,442			2,978			2,713			2		46		14,275			9,818			45
Net interest income	13,027			12,798			12,208			12,064			11,753			2		11		50,097			46,083			9
TOTAL NET REVENUE	24,153			25,326			25,470			24,675			23,376			(5	)	3		99,624			95,668			4

Provision for credit losses	1,308			1,452			1,215			1,315			864			(10	)	51		5,290			5,361			(1	)

NONINTEREST EXPENSE
Compensation expense	7,456			7,646			7,706			8,201			6,872			(2	)	8		31,009			29,979			3
Occupancy expense	920			930			912			961			957			(1	)	(4	)	3,723			3,638			2
Technology, communications and equipment expense	2,036			1,972			1,870			1,828			1,822			3		12		7,706			6,846			13
Professional and outside services	1,948			1,705			1,644			1,543			1,742			14		12		6,840			6,655			3
Marketing	721			710			756			713			697			2		3		2,900			2,897			—
Other expense (a)	1,510			1,355			1,618			1,773			1,743			11		(13	)	6,256			5,756			9
TOTAL NONINTEREST EXPENSE	14,591			14,318			14,506			15,019			13,833			2		5		58,434			55,771			5
Income before income tax expense	8,254			9,556			9,749			8,341			8,679			(14	)	(5	)	35,900			34,536			4
Income tax expense (b)	4,022			2,824			2,720			1,893			1,952			42		106		11,459			9,803			17
NET INCOME	$	4,232		$	6,732		$	7,029		$	6,448		$	6,727		(37	)	(37	)	$	24,441		$	24,733		(1	)

NET INCOME PER COMMON SHARE DATA
Basic earnings per share	$	1.08		$	1.77		$	1.83		$	1.66		$	1.73		(39	)	(38	)	$	6.35		$	6.24		2
Diluted earnings per share	1.07			1.76			1.82			1.65			1.71			(39	)	(37	)	6.31			6.19			2

FINANCIAL RATIOS
Return on common equity (c)	7		%	11		%	12		%	11		%	11		%					10		%	10		%
Return on tangible common equity (c)(d)	8			13			14			13			14							12			13
Return on assets (c)	0.66			1.04			1.10			1.03			1.06							0.96			1.00
Effective income tax rate (b)	48.7			29.6			27.9			22.7			22.5							31.9			28.4
Overhead ratio	60			57			57			61			59							59			58


(a)	Included Firmwide legal expense/(benefit) of $(207) million, $(107) million, $61 million, $218 million and $230 million for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively: and $(35) million and $(317) million for the full year 2017 and 2016, respectively.


(b)	The three months ended December 31, 2017 and the full year 2017 results include a $1.9 billion tax expense as a result of the estimated impact of the enactment of the TCJA.


(c)	Quarterly ratios are based upon annualized amounts.


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

Page 4



JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
																Dec 31, 2017
																Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,
	2017			2017			2017			2017			2016			2017		2016
ASSETS
Cash and due from banks	$	25,827		$	21,994		$	21,781		$	20,484		$	23,873		17	%	8	%
Deposits with banks	404,294			435,810			427,380			439,911			365,762			(7	)	11
Federal funds sold and securities purchased under
resale agreements	198,422			185,454			218,570			190,566			229,967			7		(14	)
Securities borrowed	105,112			101,680			90,654			92,309			96,409			3		9
Trading assets:
Debt and equity instruments	325,321			362,158			350,558			346,450			308,052			(10	)	6
Derivative receivables	56,523			58,260			56,506			56,063			64,078			(3	)	(12	)
Securities	249,958			263,288			263,458			281,850			289,059			(5	)	(14	)
Loans	930,697			913,761			908,767			895,974			894,765			2		4
Less: Allowance for loan losses	13,604			13,539			13,363			13,413			13,776			—		(1	)
Loans, net of allowance for loan losses	917,093			900,222			895,404			882,561			880,989			2		4
Accrued interest and accounts receivable	67,729			61,757			64,038			60,038			52,330			10		29
Premises and equipment	14,159			14,218			14,206			14,227			14,131			—		—
Goodwill, MSRs and other intangible assets	54,392			53,855			53,880			54,218			54,246			1		—
Other assets	114,770			104,378			106,739			107,613			112,076			10		2
TOTAL ASSETS	$	2,533,600		$	2,563,074		$	2,563,174		$	2,546,290		$	2,490,972		(1	)	2

LIABILITIES
Deposits	$	1,443,982		$	1,439,027		$	1,439,473		$	1,422,999		$	1,375,179		—		5
Federal funds purchased and securities loaned or sold
under repurchase agreements	158,916			169,393			165,621			183,316			165,666			(6	)	(4	)
Short-term borrowings	51,802			53,967			53,143			39,250			34,443			(4	)	50
Trading liabilities:
Debt and equity instruments	85,886			89,089			91,628			90,913			87,428			(4	)	(2	)
Derivative payables	37,777			39,446			41,795			44,575			49,231			(4	)	(23	)
Accounts payable and other liabilities	189,383			196,764			189,160			183,200			190,543			(4	)	(1	)
Beneficial interests issued by consolidated VIEs	26,081			28,424			30,898			36,682			39,047			(8	)	(33	)
Long-term debt	284,080			288,582			292,973			289,492			295,245			(2	)	(4	)
TOTAL LIABILITIES	2,277,907			2,304,692			2,304,691			2,290,427			2,236,782			(1	)	2

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	90,579			90,697			90,604			90,395			91,627			—		(1	)
Retained earnings	177,676			175,827			171,488			166,663			162,440			1		9
Accumulated other comprehensive income/(loss)	(119		)	(309		)	(392		)	(923		)	(1,175		)	61		90
Shares held in RSU Trust, at cost	(21		)	(21		)	(21		)	(21		)	(21		)	—		—
Treasury stock, at cost	(42,595		)	(37,985		)	(33,369		)	(30,424		)	(28,854		)	(12	)	(48	)
TOTAL STOCKHOLDERS’ EQUITY	255,693			258,382			258,483			255,863			254,190			(1	)	1
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,533,600		$	2,563,074		$	2,563,174		$	2,546,290		$	2,490,972		(1	)	2

Page 5



JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
	QUARTERLY TRENDS																						FULL YEAR
																			4Q17 Change												2017 Change
AVERAGE BALANCES	4Q17			3Q17			2Q17				1Q17				4Q16				3Q17		4Q16		2017				2016				2016
ASSETS
Deposits with banks	$	437,542		$	455,255		$	437,637			$	422,169			$	415,817			(4	)%	5	%	$	438,240			$	392,160			12	%
Federal funds sold and securities purchased under
resale agreements	188,546			188,594			193,302				196,965				217,907				—		(13	)	191,819				205,368				(7	)
Securities borrowed	100,120			95,597			90,151				95,372				103,928				5		(4	)	95,324				102,964				(7	)
Trading assets - debt instruments	247,063			240,876			234,809				225,801				218,272				3		13		237,206				215,565				10
Securities	253,767			261,117			274,695				285,565				280,087				(3	)	(9	)	268,678				279,387				(4	)
Loans	918,806			909,580			904,969				891,904				890,511				1		3		906,397				866,378				5
Other assets (a)	43,863			43,155			41,546				43,136				39,025				2		12		42,928				39,782				8
Total interest-earning assets	2,189,707			2,194,174			2,177,109				2,160,912				2,165,547				—		1		2,180,592				2,101,604				4
Trading assets - equity instruments	102,874			119,463			126,127				115,284				98,427				(14	)	5		115,913				95,528				21
Trading assets - derivative receivables	58,890			59,839			58,250				61,400				70,580				(2	)	(17	)	59,588				70,897				(16	)
All other noninterest-earning assets	210,684			195,755			197,750				195,566				197,903				8		6		199,969				193,590				3
TOTAL ASSETS	$	2,562,155		$	2,569,231		$	2,559,236			$	2,533,162			$	2,532,457			—		1		$	2,556,062			$	2,461,619			4
LIABILITIES
Interest-bearing deposits	$	1,030,660		$	1,029,534		$	1,006,008			$	986,015			$	959,779			—		7		$	1,013,221			$	925,270			10
Federal funds purchased and securities loaned or
sold under repurchase agreements	181,898			181,851			196,331				189,611				186,579				—		(3	)	187,386				178,720				5
Commercial paper	23,680			23,022			19,466				13,364				11,263				3		110		19,920				15,001				33
Trading liabilities - debt, short-term and other liabilities (b)	197,996			198,674			197,066				199,981				202,979				—		(2	)	198,426				198,904				—
Beneficial interests issued by consolidated VIEs	27,295			29,832			34,083				38,775				39,985				(9	)	(32	)	32,457				40,180				(19	)
Long-term debt	283,301			294,626			295,868				292,224				301,989				(4	)	(6	)	291,489				295,573				(1	)
Total interest-bearing liabilities	1,744,830			1,757,539			1,748,822				1,719,970				1,702,574				(1	)	2		1,742,899				1,653,648				5
Noninterest-bearing deposits	405,531			401,489			404,121				405,548				414,266				1		(2	)	404,165				402,698				—
Trading liabilities - equity instruments	22,747			20,905			19,346				21,072				21,411				9		6		21,022				20,737				1
Trading liabilities - derivative payables	38,845			44,627			44,740				48,373				54,548				(13	)	(29	)	44,122				55,927				(21	)
All other noninterest-bearing liabilities	91,987			86,742			85,939				84,428				87,180				6		6		87,292				77,910				12
TOTAL LIABILITIES	2,303,940			2,311,302			2,302,968				2,279,391				2,279,979				—		1		2,299,500				2,210,920				4
Preferred stock	26,642			26,068			26,068				26,068				26,068				2		2		26,212				26,068				1
Common stockholders’ equity	231,573			231,861			230,200				227,703				226,410				—		2		230,350				224,631				3
TOTAL STOCKHOLDERS’ EQUITY	258,215			257,929			256,268				253,771				252,478				—		2		256,562				250,699				2
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,562,155		$	2,569,231		$	2,559,236			$	2,533,162			$	2,532,457			—		1		$	2,556,062			$	2,461,619			4

AVERAGE RATES (c)
INTEREST-EARNING ASSETS
Deposits with banks	1.12		%	1.09		%	0.92			%	0.69			%	0.47			%					0.96			%	0.48			%
Federal funds sold and securities purchased under
resale agreements	1.37			1.31			1.10				1.08				1.04								1.21				1.10
Securities borrowed (d)	0.11			—			(0.09		)		(0.19		)		(0.20		)						(0.04		)		(0.32		)
Trading assets - debt instruments	3.25			3.25			3.13				3.38				3.40								3.25				3.42
Securities	3.15			3.10			3.11				3.01				2.87								3.09				2.94
Loans	4.67			4.62			4.46				4.47				4.30								4.56				4.26
Other assets (a)	5.00			4.83			4.28				3.21				2.57								4.34				2.20
Total interest-earning assets	3.14			3.07			2.95				2.88				2.71								3.01				2.72

INTEREST-BEARING LIABILITIES
Interest-bearing deposits	0.35			0.32			0.25				0.20				0.16								0.28				0.15
Federal funds purchased and securities loaned or
sold under repurchase agreements	1.05			0.98			0.79				0.63				0.56								0.86				0.61
Commercial paper	1.52			1.43			1.29				1.22				1.09								1.39				0.90
Trading liabilities - debt, short-term and other liabilities (b)	1.31			1.27			1.12				0.89				0.67								1.15				0.59
Beneficial interests issued by consolidated VIEs	1.71			1.62			1.51				1.41				1.37								1.55				1.25
Long-term debt	2.41			2.37			2.29				2.21				2.06								2.32				1.88
Total interest-bearing liabilities	0.90			0.88			0.79				0.70				0.63								0.82				0.59

INTEREST RATE SPREAD	2.24		%	2.19		%	2.16			%	2.18			%	2.08			%					2.19			%	2.13			%
NET YIELD ON INTEREST-EARNING ASSETS	2.42		%	2.37		%	2.31			%	2.33			%	2.22			%					2.36			%	2.25			%


(a)	Includes held-for-investment 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 related to 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 Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are considered non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. 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
																4Q17 Change										2017 Change
	4Q17			3Q17			2Q17			1Q17			4Q16			3Q17		4Q16		2017			2016			2016
OTHER INCOME
Other income - reported	$	446		$	951		$	1,472		$	770		$	951		(53	)%	(53	)%	$	3,639		$	3,795		(4	)%
Fully taxable-equivalent adjustments (a)	971			555			596			582			645			75		51		2,704			2,265			19
Other income - managed	$	1,417		$	1,506		$	2,068		$	1,352		$	1,596		(6	)	(11	)	$	6,343		$	6,060		5

TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported	$	11,126		$	12,528		$	13,262		$	12,611		$	11,623		(11	)	(4	)	$	49,527		$	49,585		—
Fully taxable-equivalent adjustments (a)	971			555			596			582			645			75		51		2,704			2,265			19
Total noninterest revenue - managed	$	12,097		$	13,083		$	13,858		$	13,193		$	12,268		(8	)	(1	)	$	52,231		$	51,850		1

NET INTEREST INCOME
Net interest income - reported	$	13,027		$	12,798		$	12,208		$	12,064		$	11,753		2		11		$	50,097		$	46,083		9
Fully taxable-equivalent adjustments (a)	326			319			339			329			312			2		4		1,313			1,209			9
Net interest income - managed	$	13,353		$	13,117		$	12,547		$	12,393		$	12,065		2		11		$	51,410		$	47,292		9

TOTAL NET REVENUE
Total net revenue - reported	$	24,153		$	25,326		$	25,470		$	24,675		$	23,376		(5	)	3		$	99,624		$	95,668		4
Fully taxable-equivalent adjustments (a)	1,297			874			935			911			957			48		36		4,017			3,474			16
Total net revenue - managed	$	25,450		$	26,200		$	26,405		$	25,586		$	24,333		(3	)	5		$	103,641		$	99,142		5

PRE-PROVISION PROFIT
Pre-provision profit - reported	$	9,562		$	11,008		$	10,964		$	9,656		$	9,543		(13	)	—		$	41,190		$	39,897		3
Fully taxable-equivalent adjustments (a)	1,297			874			935			911			957			48		36		4,017			3,474			16
Pre-provision profit - managed	$	10,859		$	11,882		$	11,899		$	10,567		$	10,500		(9	)	3		$	45,207		$	43,371		4

INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported	$	8,254		$	9,556		$	9,749		$	8,341		$	8,679		(14	)	(5	)	$	35,900		$	34,536		4
Fully taxable-equivalent adjustments (a)	1,297			874			935			911			957			48		36		4,017			3,474			16
Income before income tax expense - managed	$	9,551		$	10,430		$	10,684		$	9,252		$	9,636		(8	)	(1	)	$	39,917		$	38,010		5

INCOME TAX EXPENSE
Income tax expense - reported	$	4,022		$	2,824		$	2,720		$	1,893		$	1,952		42		106		$	11,459		$	9,803		17
Fully taxable-equivalent adjustments (a)	1,297			874			935			911			957			48		36		4,017			3,474			16
Income tax expense - managed	$	5,319		$	3,698		$	3,655		$	2,804		$	2,909		44		83		$	15,476		$	13,277		17

OVERHEAD RATIO
Overhead ratio - reported	60		%	57		%	57		%	61		%	59		%					59		%	58		%
Overhead ratio - managed	57			55			55			59			57							56			56


(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
																4Q17 Change										2017 Change
	4Q17			3Q17			2Q17			1Q17			4Q16			3Q17		4Q16		2017			2016			2016
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking	$	12,070		$	12,033		$	11,412		$	10,970		$	11,019		—	%	10	%	$	46,485		$	44,915		3	%
Corporate & Investment Bank	7,478			8,590			8,889			9,536			8,461			(13	)	(12	)	34,493			35,216			(2	)
Commercial Banking	2,353			2,146			2,088			2,018			1,963			10		20		8,605			7,453			15
Asset & Wealth Management	3,374			3,245			3,212			3,087			3,087			4		9		12,918			12,045			7
Corporate	175			186			804			(25		)	(197		)	(6	)	NM		1,140			(487		)	NM
TOTAL NET REVENUE	$	25,450		$	26,200		$	26,405		$	25,586		$	24,333		(3	)	5		$	103,641		$	99,142		5

TOTAL NONINTEREST EXPENSE
Consumer & Community Banking	$	6,672		$	6,495		$	6,500		$	6,395		$	6,303		3		6		$	26,062		$	24,905		5
Corporate & Investment Bank	4,513			4,768			4,841			5,121			4,172			(5	)	8		19,243			18,992			1
Commercial Banking	912			800			790			825			744			14		23		3,327			2,934			13
Asset & Wealth Management	2,348			2,181			2,192			2,580			2,175			8		8		9,301			8,478			10
Corporate	146			74			183			98			439			97		(67	)	501			462			8
TOTAL NONINTEREST EXPENSE	$	14,591		$	14,318		$	14,506		$	15,019		$	13,833		2		5		$	58,434		$	55,771		5

PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking	$	5,398		$	5,538		$	4,912		$	4,575		$	4,716		(3	)	14		$	20,423		$	20,010		2
Corporate & Investment Bank	2,965			3,822			4,048			4,415			4,289			(22	)	(31	)	15,250			16,224			(6	)
Commercial Banking	1,441			1,346			1,298			1,193			1,219			7		18		5,278			4,519			17
Asset & Wealth Management	1,026			1,064			1,020			507			912			(4	)	13		3,617			3,567			1
Corporate	29			112			621			(123		)	(636		)	(74	)	NM		639			(949		)	NM
PRE-PROVISION PROFIT	$	10,859		$	11,882		$	11,899		$	10,567		$	10,500		(9	)	3		$	45,207		$	43,371		4

PROVISION FOR CREDIT LOSSES
Consumer & Community Banking	$	1,231		$	1,517		$	1,394		$	1,430		$	949		(19	)	30		$	5,572		$	4,494		24
Corporate & Investment Bank	130			(26		)	(53		)	(96		)	(198		)	NM		NM		(45		)	563			NM
Commercial Banking	(62		)	(47		)	(130		)	(37		)	124			(32	)	NM		(276		)	282			NM
Asset & Wealth Management	9			8			4			18			(11		)	13		NM		39			26			50
Corporate	—			—			—			—			—			—		—		—			(4		)	100
PROVISION FOR CREDIT LOSSES	$	1,308		$	1,452		$	1,215		$	1,315		$	864		(10	)	51		$	5,290		$	5,361		(1	)

NET INCOME/(LOSS)
Consumer & Community Banking	$	2,631		$	2,553		$	2,223		$	1,988		$	2,364		3		11		$	9,395		$	9,714		(3	)
Corporate & Investment Bank	2,316			2,546			2,710			3,241			3,431			(9	)	(32	)	10,813			10,815			—
Commercial Banking	957			881			902			799			687			9		39		3,539			2,657			33
Asset & Wealth Management	654			674			624			385			586			(3	)	12		2,337			2,251			4
Corporate	(2,326		)	78			570			35			(341		)	NM		NM		(1,643		)	(704		)	(133	)
TOTAL NET INCOME	$	4,232		$	6,732		$	7,029		$	6,448		$	6,727		(37	)	(37	)	$	24,441		$	24,733		(1	)

Page 8



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

																	Dec 31, 2017
																	Change				FULL YEAR
	Dec 31,				Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,						2017 Change
	2017				2017			2017			2017			2016			2017		2016		2017		2016		2016
CAPITAL (a)
Risk-based capital metrics
Standardized Transitional
CET1 capital	$	183,567		(f)	$	187,061		$	186,942		$	184,337		$	182,967		(2	)%	—	%
Tier 1 capital	208,913			(f)	212,297			212,353			209,653			208,112			(2	)	—
Total capital	238,659			(f)	242,949			243,061			240,222			239,553			(2	)	—
Risk-weighted assets	1,501,736			(f)	1,482,267			1,478,816			1,468,931			1,464,981			1		3
CET1 capital ratio	12.2		%	(f)	12.6		%	12.6		%	12.5		%	12.5		%
Tier 1 capital ratio	13.9			(f)	14.3			14.4			14.3			14.2
Total capital ratio	15.9			(f)	16.4			16.4			16.4			16.4

Advanced Transitional
CET1 capital	$	183,567		(f)	$	187,061		$	186,942		$	184,337		$	182,967		(2	)	—
Tier 1 capital	208,913			(f)	212,297			212,353			209,653			208,112			(2	)	—
Total capital	228,100			(f)	232,794			233,345			229,436			228,592			(2	)	—
Risk-weighted assets	1,437,849			(f)	1,443,019			1,459,196			1,467,992			1,476,915			—		(3	)
CET1 capital ratio	12.8		%	(f)	13.0		%	12.8		%	12.6		%	12.4		%
Tier 1 capital ratio	14.5			(f)	14.7			14.6			14.3			14.1
Total capital ratio	15.9			(f)	16.1			16.0			15.6			15.5

Leverage-based capital metrics
Adjusted average assets (b)	$	2,514,271		(f)	$	2,521,889		$	2,512,120		$	2,486,114		$	2,484,631		—		1
Tier 1 leverage ratio	8.3		%	(f)	8.4		%	8.5		%	8.4		%	8.4		%
Total leverage exposure (c)	$	3,204,702		(f)	$	3,211,053		$	3,193,072		$	3,171,822		$	3,191,990		—		—
SLR (c)	6.5		%	(f)	6.6		%	6.7		%	6.6		%	6.5		%

TANGIBLE COMMON EQUITY (period-end) (d)
Common stockholders’ equity	$	229,625			$	232,314		$	232,415		$	229,795		$	228,122		(1	)	1
Less: Goodwill	47,507				47,309			47,300			47,292			47,288			—		—
Less: Other intangible assets	855				808			827			847			862			6		(1	)
Add: Deferred tax liabilities (e)	2,204				3,271			3,252			3,225			3,230			(33	)	(32	)
Total tangible common equity	$	183,467			$	187,468		$	187,540		$	184,881		$	183,202		(2	)	—

TANGIBLE COMMON EQUITY (average) (d)
Common stockholders’ equity	$	231,573			$	231,861		$	230,200		$	227,703		$	226,410		—		2		$	230,350	$	224,631	3	%
Less: Goodwill	47,376				47,309			47,290			47,293			47,296			—		—		47,317		47,310		—
Less: Other intangible assets	820				818			838			853			873			—		(6	)	832		922		(10	)
Add: Deferred tax liabilities (e)	2,738				3,262			3,239			3,228			3,231			(16	)	(15	)	3,116		3,212		(3	)
Total tangible common equity	$	186,115			$	186,996		$	185,311		$	182,785		$	181,472		—		3		$	185,317	$	179,611	3

INTANGIBLE ASSETS (period-end)
Goodwill	$	47,507			$	47,309		$	47,300		$	47,292		$	47,288		—		—
Mortgage servicing rights	6,030				5,738			5,753			6,079			6,096			5		(1	)
Other intangible assets	855				808			827			847			862			6		(1	)
Total intangible assets	$	54,392			$	53,855		$	53,880		$	54,218		$	54,246		1		—

(a)

Basel III sets forth two comprehensive approaches for calculating risk-weighted assets: a Standardized approach and an Advanced approach. As required by the Collins Amendment of the Dodd-Frank 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, and on pages 42-48 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017.


(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																			FULL YEAR
																4Q17 Change										2017 Change
	4Q17			3Q17			2Q17			1Q17			4Q16			3Q17		4Q16		2017			2016			2016
EARNINGS PER SHARE
Basic earnings per share
Net income	$	4,232		$	6,732		$	7,029		$	6,448		$	6,727		(37	)%	(37	)%	$	24,441		$	24,733		(1	)%
Less: Preferred stock dividends	428			412			411			412			412			4		4		1,663			1,647			1
Net income applicable to common equity	3,804			6,320			6,618			6,036			6,315			(40	)	(40	)	22,778			23,086			(1	)
Less: Dividends and undistributed earnings allocated to
participating securities	30			58			63			61			65			(48	)	(54	)	211			252			(16	)
Net income applicable to common stockholders	$	3,774		$	6,262		$	6,555		$	5,975		$	6,250		(40	)	(40	)	$	22,567		$	22,834		(1	)

Total weighted-average basic shares outstanding	3,489.7			3,534.7			3,574.1			3,601.7			3,611.3			(1	)	(3	)	3,551.6			3,658.8			(3	)
Net income per share	$	1.08		$	1.77		$	1.83		$	1.66		$	1.73		(39	)	(38	)	$	6.35		$	6.24		2

Diluted earnings per share
Net income applicable to common stockholders	$	3,774		$	6,262		$	6,555		$	5,975		$	6,250		(40	)	(40	)	$	22,567		$	22,834		(1	)
Total weighted-average basic shares outstanding	3,489.7			3,534.7			3,574.1			3,601.7			3,611.3			(1	)	(3	)	3,551.6			3,658.8			(3	)
Add: Employee stock options, stock appreciation rights (“SARs”), warrants and performance share units (“PSUs”)	22.5			24.9			24.9			28.7			35.3			(10	)	(36	)	25.2			31.2			(19	)
Total weighted-average diluted shares outstanding	3,512.2			3,559.6			3,599.0			3,630.4			3,646.6			(1	)	(4	)	3,576.8			3,690.0			(3	)
Net income per share	$	1.07		$	1.76		$	1.82		$	1.65		$	1.71		(39	)	(37	)	$	6.31		$	6.19		2

COMMON DIVIDENDS
Cash dividends declared per share	$	0.56		$	0.56		$	0.50		$	0.50		$	0.48		—		17		$	2.12		$	1.88		13
Dividend payout ratio	51		%	31		%	27		%	30		%	28		%					33		%	30		%

COMMON EQUITY REPURCHASE PROGRAM (a)
Total shares of common stock repurchased	47.8			51.7			35.0			32.1			29.8			(8	)	60		166.6			140.4			19
Average price paid per share of common stock	$	100.74		$	92.02		$	86.05		$	88.14		$	75.56		9		33		$	92.52		$	64.68		43
Aggregate repurchases of common equity	4,808			4,763			3,007			2,832			2,251			1		114		15,410			9,082			70

EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans	2.5			0.9			0.9			21.0			2.3			178		9		25.3			27.1			(7	)
Net impact of employee issuances on stockholders’ equity (b)	$	92		$	238		$	270		$	29		$	164		(61	)	(44	)	$	629		$	1,006		(37	)


(a)	On June 28, 2017, the Firm announced, that it is authorized to repurchase up to $19.4 billion of common equity between July 1, 2017 and June 30, 2018, 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
																4Q17 Change										2017 Change
	4Q17			3Q17			2Q17			1Q17			4Q16			3Q17		4Q16		2017			2016			2016
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	884		$	885		$	850		$	812		$	841		—	%	5	%	$	3,431		$	3,231		6	%
Asset management, administration and commissions	568			543			562			539			497			5		14		2,212			2,093			6
Mortgage fees and related income	378			428			401			406			510			(12	)	(26	)	1,613			2,490			(35	)
Card income	1,005			1,141			1,061			817			821			(12	)	22		4,024			4,364			(8	)
All other income	976			901			810			743			774			8		26		3,430			3,077			11
Noninterest revenue	3,811			3,898			3,684			3,317			3,443			(2	)	11		14,710			15,255			(4	)
Net interest income	8,259			8,135			7,728			7,653			7,576			2		9		31,775			29,660			7
TOTAL NET REVENUE	12,070			12,033			11,412			10,970			11,019			—		10		46,485			44,915			3

Provision for credit losses	1,231			1,517			1,394			1,430			949			(19	)	30		5,572			4,494			24

NONINTEREST EXPENSE
Compensation expense	2,561			2,554			2,511			2,533			2,468			—		4		10,159			9,723			4
Noncompensation expense (a)	4,111			3,941			3,989			3,862			3,835			4		7		15,903			15,182			5
TOTAL NONINTEREST EXPENSE	6,672			6,495			6,500			6,395			6,303			3		6		26,062			24,905			5

Income before income tax expense	4,167			4,021			3,518			3,145			3,767			4		11		14,851			15,516			(4	)
Income tax expense	1,536			1,468			1,295			1,157			1,403			5		9		5,456			5,802			(6	)
NET INCOME	$	2,631		$	2,553		$	2,223		$	1,988		$	2,364		3		11		$	9,395		$	9,714		(3	)

REVENUE BY LINE OF BUSINESS
Consumer & Business Banking	$	5,557		$	5,408		$	5,233		$	4,906		$	4,774		3		16		$	21,104		$	18,659		13
Home Lending (b)	1,442			1,558			1,426			1,529			1,690			(7	)	(15	)	5,955			7,361			(19	)
Card, Merchant Services & Auto (c)	5,071			5,067			4,753			4,535			4,555			—		11		19,426			18,895			3

MORTGAGE FEES AND RELATED INCOME DETAILS:
Net production revenue	185			158			152			141			183			17		1		636			853			(25	)
Net mortgage servicing revenue (d)	193			270			249			265			327			(29	)	(41	)	977			1,637			(40	)
Mortgage fees and related income	$	378		$	428		$	401		$	406		$	510		(12	)	(26	)	$	1,613		$	2,490		(35	)


FINANCIAL RATIOS
ROE	19		%	19		%	17		%	15		%	17		%					17		%	18		%
Overhead ratio	55			54			57			58			57							56			55


(a)	Included operating lease depreciation expense of $726 million, $688 million, $638 million, $599 million and $549 million for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively, and $2.7 billion and $1.9 billion for the full year 2017 and 2016, respectively.


(b)	Formerly Mortgage Banking


(c)	Formerly Card, Commerce Solutions & Auto


(d)	Included MSR risk management of $(110) million, $(23) million, $(57) million, $(52) million and $(23) million for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively, and $(242) million and $217 million for the full year 2017 and 2016, respectively.

Page 11



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

	QUARTERLY TRENDS														FULL YEAR
											4Q17 Change								2017 Change
	4Q17		3Q17		2Q17		1Q17		4Q16		3Q17		4Q16		2017		2016		2016
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	552,601	$	537,459	$	529,859	$	524,770	$	535,310	3	%	3	%	$	552,601	$	535,310	3	%

Loans:
Consumer & Business Banking	25,789		25,275		25,044		24,386		24,307		2		6		25,789		24,307		6
Home equity	42,751		44,542		46,330		48,234		50,296		(4	)	(15	)	42,751		50,296		(15	)
Residential mortgage	197,339		195,134		189,661		185,114		181,196		1		9		197,339		181,196		9
Home Lending	240,090		239,676		235,991		233,348		231,492		—		4		240,090		231,492		4
Credit Card	149,511		141,313		140,141		135,016		141,816		6		5		149,511		141,816		5
Auto	66,242		65,102		65,627		65,568		65,814		2		1		66,242		65,814		1
Student	—		47		75		6,253		7,057		NM		NM		—		7,057		NM
Total loans	481,632		471,413		466,878		464,571		470,486		2		2		481,632		470,486		2
Core loans	415,167		401,648		393,639		381,393		382,608		3		9		415,167		382,608		9

Deposits	659,885		653,460		648,369		646,962		618,337		1		7		659,885		618,337		7
Equity	51,000		51,000		51,000		51,000		51,000		—		—		51,000		51,000		—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	538,311	$	531,959	$	528,598	$	532,098	$	527,684	1		2		$	532,756	$	516,354	3

Loans:
Consumer & Business Banking	25,234		25,166		24,725		24,359		24,040		—		5		24,875		23,431		6
Home equity	43,624		45,424		47,339		49,278		51,393		(4	)	(15	)	46,398		54,545		(15	)
Residential mortgage	197,032		192,805		187,201		183,756		182,820		2		8		190,242		177,010		7
Home Lending	240,656		238,229		234,540		233,034		234,213		1		3		236,640		231,555		2
Credit Card	143,500		141,172		138,132		137,211		136,181		2		5		140,024		131,165		7
Auto	65,616		65,175		65,474		65,315		65,286		1		1		65,395		63,573		3
Student	12		58		4,642		6,916		7,217		(79	)	(100	)	2,880		7,623		(62	)
Total loans	475,018		469,800		467,513		466,835		466,937		1		2		469,814		457,347		3
Core loans	406,935		398,319		387,783		381,016		376,933		2		8		393,598		361,316		9

Deposits	651,976		645,732		639,873		622,915		607,175		1		7		640,219		586,637		9
Equity	51,000		51,000		51,000		51,000		51,000		—		—		51,000		51,000		—

Headcount	134,117		134,553		135,453		133,590		132,802		—		1		134,117		132,802		1

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 reflected a write-down of the portfolio to the estimated fair value at the time of the transfer. This transfer impacted certain loan and credit-related metrics disclosed on pages 12-13 and 24-27.

Page 12



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)	QUARTERLY TRENDS																						FULL YEAR
																			4Q17 Change											2017 Change
	4Q17				3Q17				2Q17				1Q17			4Q16			3Q17		4Q16		2017				2016			2016
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)	$	4,084			$	4,068			$	4,124			$	4,442		$	4,708		—	%	(13	)%	$	4,084			$	4,708		(13	)%
Net charge-offs/(recoveries) (c)
Consumer & Business Banking	73				71				56				57			77			3		(5	)	257				257			—
Home equity	(4		)		13				7				47			48			NM		NM		63				184			(66	)
Residential mortgage	(13		)		(2		)		(4		)		3			3			NM		NM		(16		)		14			NM
Home Lending	(17		)		11				3				50			51			NM		NM		47				198			(76	)
Credit Card	1,074				1,019				1,037				993			914			5		18		4,123				3,442			20
Auto	86				116				48				81			93			(26	)	(8	)	331				285			16
Student	—				—				—				498		(h)	64			NM		NM		498			(h)	162			207
Total net charge-offs/(recoveries)	$	1,216			$	1,217		(g)	$	1,144			$	1,679	(h)	$	1,199		—		1		$	5,256		(h)	$	4,344		21
Net charge-off/(recovery) rate (c)
Consumer & Business Banking	1.15			%	1.12			%	0.91			%	0.95		%	1.27		%					1.03			%	1.10		%
Home equity (d)	(0.05		)		0.15				0.08				0.52			0.50							0.18				0.45
Residential mortgage (d)	(0.03		)		—				(0.01		)		0.01			0.01							(0.01		)		0.01
Home Lending (d)	(0.03		)		0.02				0.01				0.10			0.10							0.02				0.10
Credit Card	2.97				2.87				3.01				2.94			2.67							2.95				2.63
Auto	0.52				0.71				0.29				0.50			0.57							0.51				0.45
Student	—				—				—				NM			3.53							NM				2.13
Total net charge-off/(recovery) rate (d)	1.09				1.10			(g)	1.07				1.58		(h)	1.11							1.21			(h)	1.04

30+ day delinquency rate
Home Lending (e)(f)	1.19			%	1.03			%	1.02			%	1.08		%	1.23		%					1.19			%	1.23		%
Credit Card	1.80				1.76				1.59				1.66			1.61							1.80				1.61
Auto	0.89				0.93				0.88				0.93			1.19							0.89				1.19
Student	—				—				—				—			1.60		(i)					—				1.60		(i)
90+ day delinquency rate - Credit Card	0.92				0.86				0.80				0.87			0.81							0.92				0.81

Allowance for loan losses
Consumer & Business Banking	$	796			$	796			$	796			$	753		$	753		—		6		$	796			$	753		6
Home Lending, excluding PCI loans	1,003				1,153				1,153				1,328			1,328			(13	)	(24	)	1,003				1,328			(24	)
Home Lending - PCI loans (c)	2,225				2,245				2,265				2,287			2,311			(1	)	(4	)	2,225				2,311			(4	)
Credit Card	4,884				4,684				4,384				4,034			4,034			4		21		4,884				4,034			21
Auto	464				499				499				474			474			(7	)	(2	)	464				474			(2	)
Student	—				—				—				—			249			NM		NM		—				249			NM
Total allowance for loan losses (c)	$	9,372			$	9,377			$	9,097			$	8,876		$	9,149		—		2		$	9,372			$	9,149		2

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, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $4.3 billion, $4.0 billion, $4.1 billion, $4.5 billion, and $5.0 billion, respectively. Student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) and 90 or more days past due were also excluded from nonaccrual loans prior to sale of the student loan portfolio in the second quarter of 2017. These amounts have been excluded based upon the government guarantee.

(c)

Net charge-offs/(recoveries) and the net charge-off/(recovery) rates for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, excluded write-offs in the PCI portfolio of $20 million, $20 million, $22 million, $24 million and $32 million, respectively, and for the full year 2017 and 2016 excluded $86 million and $156 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, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of (0.04)%, 0.11%, 0.06%, 0.39% and 0.37%, respectively; (2) residential mortgage of (0.03)%, -%, (0.01)%, 0.01% and 0.01%, respectively; (3) Home Lending of (0.03)%, 0.02%, 0.01%, 0.09% and 0.09%, respectively; and (4) total CCB of 1.02%, 1.03%, 0.99%, 1.46% and 1.02%, respectively. For the full year 2017 and 2016, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of 0.14% and 0.34%, respectively; (2) residential mortgage of (0.01)% and 0.01%, respectively; (3) Home Lending of 0.02% and 0.09%, respectively; and (4) total CCB of 1.12% and 0.95%, respectively.


(e)	At December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, excluded mortgage loans insured by U.S. government agencies of $6.2 billion, $5.9 billion, $6.0 billion, $6.3 billion and $7.0 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.


(f)	Excludes PCI loans. The 30+ day delinquency rate for PCI loans was 10.13%, 9.30%, 9.06%, 9.11% and 9.82%, at December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, respectively.


(g)	Net charge-offs and net charge-off rates for the three months ended September 30, 2017 included $63 million of incremental charge-offs recorded in accordance with regulatory guidance regarding the timing of loss recognition for certain auto and residential real estate loans in bankruptcy and auto loans where assets were acquired in loan satisfaction.


(h)	Excluding net charge-offs of $467 million related to the student loan portfolio transfer, the total net charge-off rates for the three months ended March 31, 2017 and the full year 2017 would have been 1.14% and 1.10%, respectively.


(i)	Excluded student loans insured by U.S government agencies under FFELP of $468 million at December 31, 2016, 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
																					4Q17 Change												2017 Change
	4Q17				3Q17				2Q17				1Q17				4Q16				3Q17		4Q16		2017				2016				2016
BUSINESS METRICS
Number of:
Branches	5,130				5,174				5,217				5,246				5,258				(1	)%	(2	)%	5,130				5,258				(2	)%
Active digital customers (in thousands) (a)	46,694				46,349				45,876				45,463				43,836				1		7		46,694				43,836				7
Active mobile customers (in thousands) (b)	30,056				29,273				28,386				27,256				26,536				3		13		30,056				26,536				13

Debit and credit card sales volume (in billions) (c)	$	245.1			$	231.1			$	231.3			$	209.4			$	220.0			6		11		$	916.9			$	821.6			12

Consumer & Business Banking
Average deposits	$	637,160			$	630,351			$	625,381			$	609,035			$	590,653			1		8		$	625,572			$	570,842			10
Deposit margin	2.06			%	2.02			%	1.96			%	1.88			%	1.80			%					1.98			%	1.81			%
Business banking origination volume	$	1,798			$	1,654			$	2,193			$	1,703			$	1,641			9		10		$	7,348			$	7,315			—
Client investment assets	273,325				262,513				252,993				245,050				234,532				4		17		273,325				234,532				17

Home Lending (in billions)
Mortgage origination volume by channel
Retail	$	11.0			$	10.6			$	9.7			$	9.0			$	12.7			4		(13	)	$	40.3			$	44.3			(9	)
Correspondent	13.4				16.3				14.2				13.4				16.4				(18	)	(18	)	57.3				59.3				(3	)
Total mortgage origination volume (d)	$	24.4			$	26.9			$	23.9			$	22.4			$	29.1			(9	)	(16	)	$	97.6			$	103.6			(6	)
Total loans serviced (period-end)	$	816.1			$	821.6			$	827.8			$	836.3			$	846.6			(1	)	(4	)	$	816.1			$	846.6			(4	)
Third-party mortgage loans serviced (period-end)	553.5				556.9				568.0				582.6				591.5				(1	)	(6	)	553.5				591.5				(6	)
MSR carrying value (period-end)	6.0				5.7				5.8				6.1				6.1				5		(2	)	6.0				6.1				(2	)
Ratio of MSR carrying value (period-end) to third-party mortgage
loans serviced (period-end)	1.08			%	1.02			%	1.02			%	1.05			%	1.03			%					1.08			%	1.03			%
MSR revenue multiple (e)	3.09		x		2.91		x		2.91		x		3.00		x		2.94		x						3.09		x		2.94		x

Credit Card, excluding Commercial Card
Credit card sales volume (in billions)	$	168.0			$	157.7			$	156.8			$	139.7			$	148.5			7		13		$	622.2			$	545.4			14
New accounts opened	1.9				1.9				2.1				2.5				2.7				—		(30	)	8.4				10.4				(19	)

Card Services
Net revenue rate	10.64			%	10.95			%	10.53			%	10.15			%	10.14			%					10.57			%	11.29			%

Merchant Services
Merchant processing volume (in billions)	$	321.4			$	301.6			$	294.4			$	274.3			$	284.9			7		13		$	1,191.7			$	1,063.4			12

Auto
Loan and lease origination volume (in billions)	$	8.2			$	8.8			$	8.3			$	8.0			$	8.0			(7	)	3		$	33.3			$	35.4			(6	)
Average Auto operating lease assets	16,630				15,641				14,728				13,757				12,613				6		32		15,198				11,026				38


(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)	The prior period amounts have been revised to conform with the current period presentation.


(d)	Firmwide mortgage origination volume was $26.6 billion, $29.2 billion, $26.2 billion, $25.6 billion, and $33.5 billion for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, respectively, and $107.6 billion and $117.4 billion for the full year 2017 and 2016, respectively.


(e)	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
																4Q17 Change										2017 Change
	4Q17			3Q17			2Q17			1Q17			4Q16			3Q17		4Q16		2017			2016			2016
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,758		$	1,819		$	1,803		$	1,812		$	1,612		(3	)%	9	%	$	7,192		$	6,424		12	%
Principal transactions	1,765			2,673			2,928			3,507			2,372			(34	)	(26	)	10,873			11,089			(2	)
Lending- and deposit-related fees	382			374			387			388			400			2		(5	)	1,531			1,581			(3	)
Asset management, administration and commissions	1,046			1,041			1,068			1,052			1,000			—		5		4,207			4,062			4
All other income	(50		)	187			258			177			242			NM		NM		572			1,169			(51	)
Noninterest revenue	4,901			6,094			6,444			6,936			5,626			(20	)	(13	)	24,375			24,325			—
Net interest income	2,577			2,496			2,445			2,600			2,835			3		(9	)	10,118			10,891			(7	)
TOTAL NET REVENUE (a) (b)	7,478			8,590			8,889			9,536			8,461			(13	)	(12	)	34,493			35,216			(2	)

Provision for credit losses	130			(26		)	(53		)	(96		)	(198		)	NM		NM		(45		)	563			NM

NONINTEREST EXPENSE
Compensation expense	1,998			2,286			2,451			2,800			1,696			(13	)	18		9,535			9,546			—
Noncompensation expense	2,515			2,482			2,390			2,321			2,476			1		2		9,708			9,446			3
TOTAL NONINTEREST EXPENSE	4,513			4,768			4,841			5,121			4,172			(5	)	8		19,243			18,992			1

Income before income tax expense	2,835			3,848			4,101			4,511			4,487			(26	)	(37	)	15,295			15,661			(2	)
Income tax expense	519			1,302			1,391			1,270			1,056			(60	)	(51	)	4,482			4,846			(8	)
NET INCOME (a)	$	2,316		$	2,546		$	2,710		$	3,241		$	3,431		(9	)	(32	)	$	10,813		$	10,815		—

FINANCIAL RATIOS
ROE	12		%	13		%	15		%	18		%	20		%					14		%	16		%
Overhead ratio	60			56			54			54			49							56			54
Compensation expense as a percent of total net revenue	27			27			28			29			20							28			27

REVENUE BY BUSINESS
Investment Banking	$	1,637		$	1,705		$	1,695		$	1,651		$	1,487		(4	)	10		$	6,688		$	5,950		12
Treasury Services	1,078			1,058			1,055			981			950			2		13		4,172			3,643			15
Lending	336			331			373			389			346			2		(3	)	1,429			1,208			18
Total Banking	3,051			3,094			3,123			3,021			2,783			(1	)	10		12,289			10,801			14
Fixed Income Markets	2,217			3,164			3,216			4,215			3,369			(30	)	(34	)	12,812			15,259			(16	)
Equity Markets	1,148			1,363			1,586			1,606			1,150			(16	)	—		5,703			5,740			(1	)
Securities Services	1,012			1,007			982			916			887			—		14		3,917			3,591			9
Credit Adjustments & Other (c)	50			(38		)	(18		)	(222		)	272			NM		(82	)	(228		)	(175		)	(30	)
Total Markets & Investor Services	4,427			5,496			5,766			6,515			5,678			(19	)	(22	)	22,204			24,415			(9	)
TOTAL NET REVENUE (a)	$	7,478		$	8,590		$	8,889		$	9,536		$	8,461		(13	)	(12	)	$	34,493		$	35,216		(2	)


(a)	The three months ended December 31, 2017 and the full year 2017 results reflect the estimated impact of the enactment of the TCJA including a decrease to net revenue of $259 million and a benefit to net income of $141 million.

(b)

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 $756 million, $505 million, $554 million, $551 million and $591 million for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively, and $2.4 billion and $2.0 billion for the full year 2017 and 2016, respectively.


(c)	Consists primarily of credit valuation adjustments (“CVA”) managed centrally within CIB, 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																			FULL YEAR
																4Q17 Change										2017 Change
	4Q17			3Q17			2Q17			1Q17			4Q16			3Q17		4Q16		2017			2016			2016
SELECTED BALANCE SHEET DATA (period-end)
Assets	$	826,384		$	851,808		$	847,377		$	840,304		$	803,511		(3	)%	3	%	$	826,384		$	803,511		3	%
Loans:
Loans retained (a)	108,765			106,955			108,935			107,902			111,872			2		(3	)	108,765			111,872			(3	)
Loans held-for-sale and loans at fair value	4,321			3,514			7,168			6,477			3,781			23		14		4,321			3,781			14
Total loans	113,086			110,469			116,103			114,379			115,653			2		(2	)	113,086			115,653			(2	)
Core loans	112,754			110,133			115,764			114,003			115,243			2		(2	)	112,754			115,243			(2	)

Equity	70,000			70,000			70,000			70,000			64,000			—		9		70,000			64,000			9

SELECTED BALANCE SHEET DATA (average)
Assets	$	866,293		$	858,912		$	864,686		$	838,017		$	836,446		1		4		$	857,060		$	815,321		5
Trading assets - debt and equity instruments	338,836			349,448			351,678			328,339			304,348			(3	)	11		342,124			300,606			14
Trading assets - derivative receivables	56,140			55,875			54,937			58,948			65,675			—		(15	)	56,466			63,387			(11	)
Loans:
Loans retained (a)	107,263			107,829			110,011			108,389			112,987			(1	)	(5	)	108,368			111,082			(2	)
Loans held-for-sale and loans at fair value	4,224			4,674			5,789			5,308			4,998			(10	)	(15	)	4,995			3,812			31
Total loans	111,487			112,503			115,800			113,697			117,985			(1	)	(6	)	113,363			114,894			(1	)
Core loans	111,152			112,168			115,434			113,309			117,570			(1	)	(5	)	113,006			114,455			(1	)

Equity	70,000			70,000			70,000			70,000			64,000			—		9		70,000			64,000			9

Headcount	51,181			50,641			49,228			48,700			48,748			1		5		51,181			48,748			5

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	22		$	20		$	47		$	(18	)	$	29		10		(24	)	$	71		$	168		(58	)
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (b)	812			437			462			308			467			86		74		812			467			74
Nonaccrual loans held-for-sale and loans at fair value	—			2			31			109			109			(100	)	(100	)	—			109			(100	)
Total nonaccrual loans	812			439			493			417			576			85		41		812			576			41

Derivative receivables	130			164			170			179			223			(21	)	(42	)	130			223			(42	)
Assets acquired in loan satisfactions	85			92			71			87			79			(8	)	8		85			79			8
Total nonperforming assets	1,027			695			734			683			878			48		17		1,027			878			17
Allowance for credit losses:
Allowance for loan losses	1,379			1,253			1,298			1,346			1,420			10		(3	)	1,379			1,420			(3	)
Allowance for lending-related commitments	727			745			745			797			801			(2	)	(9	)	727			801			(9	)
Total allowance for credit losses	2,106			1,998			2,043			2,143			2,221			5		(5	)	2,106			2,221			(5	)

Net charge-off/(recovery) rate (a)(d)	0.08		%	0.07		%	0.17		%	(0.07		)%	0.10		%					0.07		%	0.15		%
Allowance for loan losses to period-end loans retained (a)	1.27			1.17			1.19			1.25			1.27							1.27			1.27
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (c)	1.92			1.79			1.83			1.91			1.86							1.92			1.86
Allowance for loan losses to nonaccrual loans retained (a)(b)	170			287			281			437			304							170			304
Nonaccrual loans to total period-end loans	0.72			0.40			0.42			0.36			0.50							0.72			0.50


(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)	Allowance for loan losses of $316 million, $177 million, $164 million, $61 million and $113 million were held against nonaccrual loans at December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively.


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


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

Page 16



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
	QUARTERLY TRENDS																			FULL YEAR
																4Q17 Change								2017 Change
	4Q17			3Q17			2Q17			1Q17			4Q16			3Q17		4Q16		2017		2016		2016
BUSINESS METRICS
Advisory	$	526		$	620		$	503		$	501		$	517		(15	)%	2	%	$	2,150	$	2,110	2	%
Equity underwriting	342			293			367			394			299			17		14		1,396		1,159		20
Debt underwriting	890			906			933			917			796			(2	)	12		3,646		3,155		16
Total investment banking fees	$	1,758		$	1,819		$	1,803		$	1,812		$	1,612		(3	)	9		$	7,192	$	6,424	12

Assets under custody (“AUC”) (period-end) (in billions)	$	23,469		$	22,738		$	22,134		$	21,383		$	20,520		3		14		$	23,469	$	20,520	14

Client deposits and other third-party liabilities (average) (a)	417,003			421,588			404,920			391,716			390,793			(1	)	7		408,911		376,287		9

Trade finance loans (period-end)	17,947			17,171			17,356			16,613			15,923			5		13		17,947		15,923		13

95% Confidence Level - Total CIB VaR (average) (b)
CIB trading VaR by risk type: (c)
Fixed income	$	28		$	28		$	28		$	28		$	40		—		(30	)
Foreign exchange	7			13			8			10			12			(46	)	(42	)
Equities	14			12			12			11			10			17		40
Commodities and other	6			6			8			8			9			—		(33	)
Diversification benefit to CIB trading VaR (d)	(24		)	(31		)	(30		)	(34		)	(36		)	23		33
CIB trading VaR (c)	31			28			26			23			35			11		(11	)
Credit portfolio VaR (e)	4			5			9			10			12			(20	)	(67	)
Diversification benefit to CIB VaR (d)	(3		)	(3		)	(8		)	(8		)	(8		)	—		63
CIB VaR	$	32		$	30		$	27		$	25		$	39		7		(18	)


(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, the Firm refined the historical proxy time series inputs to certain VaR models during the first quarter of 2017. In the absence of this refinement, the average VaR for each of the following reported components would have been higher by the following amounts: CIB fixed income of $2 million, $4 million, $6 million and $5 million, CIB trading VaR of $2 million, $5 million, $5 million and $4 million, CIB VaR of $2 million, $5 million, $6 million and $3 million for the three months ended December 31, 2017, September 30, 2017, June 30 2017 and March 31, 2017, respectively.


(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 118–120 of the 2016 Annual Report, and pages 73-75 of the Firm's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017.


(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
																				4Q17 Change											2017 Change
	4Q17				3Q17				2Q17				1Q17				4Q16			3Q17		4Q16		2017				2016			2016
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	229			$	223			$	232			$	235			$	230		3	%	—	%	$	919			$	917		—	%
Asset management, administration and commissions	18				16				16				18				15			13		20		68				69			(1	)
All other income (a)	501				353				335				346				355			42		41		1,535				1,334			15
Noninterest revenue	748				592				583				599				600			26		25		2,522				2,320			9
Net interest income	1,605				1,554				1,505				1,419				1,363			3		18		6,083				5,133			19
TOTAL NET REVENUE (b)	2,353				2,146				2,088				2,018				1,963			10		20		8,605				7,453			15

Provision for credit losses	(62		)		(47		)		(130		)		(37		)		124			(32	)	NM		(276		)		282			NM

NONINTEREST EXPENSE
Compensation expense	364				370				365				371				333			(2	)	9		1,470				1,332			10
Noncompensation expense	548				430				425				454				411			27		33		1,857				1,602			16
TOTAL NONINTEREST EXPENSE	912				800				790				825				744			14		23		3,327				2,934			13

Income before income tax expense	1,503				1,393				1,428				1,230				1,095			8		37		5,554				4,237			31
Income tax expense	546				512				526				431				408			7		34		2,015				1,580			28
NET INCOME	$	957			$	881			$	902			$	799			$	687		9		39		$	3,539			$	2,657		33

Revenue by product
Lending	$	1,049			$	1,030			$	1,023			$	992			$	994		2		6		$	4,094			$	3,795		8
Treasury services	921				873				854				796				730			5		26		3,444				2,797			23
Investment banking (c)	204				196				189				216				220			4		(7	)	805				785			3
Other	179				47				22				14				19			281		NM		262				76			245
Total Commercial Banking net revenue (b)	$	2,353			$	2,146			$	2,088			$	2,018			$	1,963		10		20		$	8,605			$	7,453		15

Investment banking revenue, gross (d)	$	587			$	570			$	524			$	646			$	608		3		(3	)	$	2,327			$	2,286		2

Revenue by client segment
Middle Market Banking (e)	$	870			$	848			$	839			$	784			$	753		3		16		$	3,341			$	2,848		17
Corporate Client Banking (e)	711				688				662				666				645			3		10		2,727				2,429			12
Commercial Term Lending	356				367				364				367				355			(3	)	—		1,454				1,408			3
Real Estate Banking	166				157				147				134				128			6		30		604				456			32
Other	250				86				76				67				82			191		205		479				312			54
Total Commercial Banking net revenue (b)	$	2,353			$	2,146			$	2,088			$	2,018			$	1,963		10		20		$	8,605			$	7,453		15

FINANCIAL RATIOS
ROE	18			%	17			%	17			%	15			%	16		%					17			%	16		%
Overhead ratio	39				37				38				41				38							39				39


(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 $304 million, $143 million, $131 million, $121 million and $134 million for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively, and $699 million and $505 million for the full year ended December 31, 2017 and 2016, respectively. The three months ended December 31, 2017 and the full year 2017 results reflect the estimated impact of the enactment of the TCJA including a benefit to other revenue of $115 million on certain investments in the Community Development Banking business.


(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 in the second quarter of 2017. The prior period amounts have been 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
																	4Q17 Change										2017 Change
	4Q17			3Q17			2Q17			1Q17				4Q16			3Q17		4Q16		2017			2016			2016
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	221,228		$	220,064		$	220,676		$	217,348			$	214,341		1	%	3	%	$	221,228		$	214,341		3	%
Loans:
Loans retained	202,400			201,463			197,912			194,538				188,261			—		8		202,400			188,261			8
Loans held-for-sale and loans at fair value	1,286			764			1,661			1,056				734			68		75		1,286			734			75
Total loans	$	203,686		$	202,227		$	199,573		$	195,594			$	188,995		1		8		$	203,686		$	188,995		8
Core loans	203,469			201,999			199,319			195,296				188,673			1		8		203,469			188,673			8
Equity	20,000			20,000			20,000			20,000				16,000			—		25		20,000			16,000			25

Period-end loans by client segment
Middle Market Banking (a)	$	56,965		$	56,192		$	56,377		$	55,113			$	53,929		1		6		$	56,965		$	53,929		6
Corporate Client Banking (a)	46,963			47,682			45,918			45,798				43,027			(2	)	9		46,963			43,027			9
Commercial Term Lending	74,901			74,349			73,760			72,496				71,249			1		5		74,901			71,249			5
Real Estate Banking	17,796			17,127			16,726			15,846				14,722			4		21		17,796			14,722			21
Other	7,061			6,877			6,792			6,341				6,068			3		16		7,061			6,068			16
Total Commercial Banking loans	$	203,686		$	202,227		$	199,573		$	195,594			$	188,995		1		8		$	203,686		$	188,995		8

SELECTED BALANCE SHEET DATA (average)
Total assets	$	218,452		$	218,196		$	217,694		$	213,784			$	212,848		—		3		$	217,047		$	207,532		5
Loans:
Loans retained	201,948			199,487			196,454			190,774				187,528			1		8		197,203			178,670			10
Loans held-for-sale and loans at fair value	844			675			1,402			717				1,342			25		(37	)	909			723			26
Total loans	$	202,792		$	200,162		$	197,856		$	191,491			$	188,870		1		7		$	198,112		$	179,393		10
Core loans	202,569			199,920			197,567			191,180				188,478			1		7		197,846			178,875			11
Client deposits and other third-party liabilities	181,815			176,218			173,214			176,780				180,036			3		1		177,018			174,396			2
Equity	20,000			20,000			20,000			20,000				16,000			—		25		20,000			16,000			25

Average loans by client segment
Middle Market Banking (a)	$	56,170		$	55,782		$	55,651		$	54,267			$	53,806		1		4		$	55,474		$	52,242		6
Corporate Client Banking (a)	47,585			46,451			46,483			43,582				44,390			2		7		46,037			41,756			10
Commercial Term Lending	74,577			74,136			73,081			71,880				70,316			1		6		73,428			66,700			10
Real Estate Banking	17,474			16,936			16,139			15,525				14,452			3		21		16,525			13,063			27
Other	6,986			6,857			6,502			6,237				5,906			2		18		6,648			5,632			18
Total Commercial Banking loans	$	202,792		$	200,162		$	197,856		$	191,491			$	188,870		1		7		$	198,112		$	179,393		10

Headcount	9,005			8,965			8,823			8,554				8,365			—		8		9,005			8,365			8

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	22		$	19		$	8		$	(10	)		$	53		16		(58	)	$	39		$	163		(76	)
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (b)	617			744			819			929				1,149			(17	)	(46	)	617			1,149			(46	)
Nonaccrual loans held-for-sale and loans
at fair value	—			—			—			—				—			—		—		—			—			—
Total nonaccrual loans	617			744			819			929				1,149			(17	)	(46	)	617			1,149			(46	)

Assets acquired in loan satisfactions	3			3			4			11				1			—		200		3			1			200
Total nonperforming assets	620			747			823			940				1,150			(17	)	(46	)	620			1,150			(46	)
Allowance for credit losses:
Allowance for loan losses	2,558			2,620			2,678			2,896				2,925			(2	)	(13	)	2,558			2,925			(13	)
Allowance for lending-related commitments	300			323			331			251				248			(7	)	21		300			248			21
Total allowance for credit losses	2,858			2,943			3,009			3,147				3,173			(3	)	(10	)	2,858			3,173			(10	)

Net charge-off/(recovery) rate (c)	0.04		%	0.04		%	0.02		%	(0.02		)	%	0.11		%					0.02		%	0.09		%
Allowance for loan losses to period-end loans retained	1.26			1.30			1.35			1.49				1.55							1.26			1.55
Allowance for loan losses to nonaccrual loans retained (b)	415			352			327			312				255							415			255
Nonaccrual loans to period-end total loans	0.30			0.37			0.41			0.47				0.61							0.30			0.61


(a)	Certain clients were transferred from Middle Market Banking to Corporate Client Banking in the second quarter of 2017. The prior period amounts have been revised to conform with the current period presentation.


(b)	Allowance for loan losses of $92 million, $128 million, $112 million, $115 million and $155 million was held against nonaccrual loans retained at December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 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																				FULL YEAR
																	4Q17 Change										2017 Change
	4Q17			3Q17			2Q17			1Q17			4Q16				3Q17		4Q16		2017			2016			2016
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	2,390		$	2,240		$	2,211		$	2,105		$	2,209			7	%	8	%	$	8,946		$	8,414		6	%
All other income	125			150			155			163			89				(17	)	40		593			598			(1	)
Noninterest revenue	2,515			2,390			2,366			2,268			2,298				5		9		9,539			9,012			6
Net interest income	859			855			846			819			789				—		9		3,379			3,033			11
TOTAL NET REVENUE	3,374			3,245			3,212			3,087			3,087				4		9		12,918			12,045			7

Provision for credit losses	9			8			4			18			(11		)		13		NM		39			26			50

NONINTEREST EXPENSE
Compensation expense	1,390			1,319			1,278			1,331			1,296				5		7		5,318			5,065			5
Noncompensation expense	958			862			914			1,249			879				11		9		3,983			3,413			17
TOTAL NONINTEREST EXPENSE	2,348			2,181			2,192			2,580			2,175				8		8		9,301			8,478			10

Income before income tax expense	1,017			1,056			1,016			489			923				(4	)	10		3,578			3,541			1
Income tax expense	363			382			392			104			337				(5	)	8		1,241			1,290			(4	)
NET INCOME	$	654		$	674		$	624		$	385		$	586			(3	)	12		$	2,337		$	2,251		4

REVENUE BY LINE OF BUSINESS
Asset Management	$	1,705		$	1,587		$	1,561		$	1,487		$	1,550			7		10		$	6,340		$	5,970		6
Wealth Management	1,669			1,658			1,651			1,600			1,537				1		9		6,578			6,075			8
TOTAL NET REVENUE	$	3,374		$	3,245		$	3,212		$	3,087		$	3,087			4		9		$	12,918		$	12,045		7

FINANCIAL RATIOS
ROE	28		%	29		%	27		%	16		%	25			%					25		%	24		%
Overhead ratio	70			67			68			84			70								72			70
Pretax margin ratio:
Asset Management	33			34			31			1			30								25			31
Wealth Management	27			32			33			30			30								30			28
Asset & Wealth Management	30			33			32			16			30								28			29

Headcount	22,975			22,685			22,289			22,196			21,082				1		9		22,975			21,082			9

Number of Wealth Management client advisors	2,605			2,581			2,452			2,480			2,504				1		4		2,605			2,504			4

Page 20



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

	QUARTERLY TRENDS																			FULL YEAR
																4Q17 Change										2017 Change
	4Q17			3Q17			2Q17			1Q17			4Q16			3Q17		4Q16		2017			2016			2016
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	151,909		$	149,170		$	147,508		$	141,049		$	138,384		2	%	10	%	$	151,909		$	138,384		10	%
Loans	130,640			128,038			124,517			119,947			118,039			2		11		130,640			118,039			11
Core loans	130,640			128,038			124,517			119,947			118,039			2		11		130,640			118,039			11
Deposits	146,407			141,409			146,758			157,295			161,577			4		(9	)	146,407			161,577			(9	)
Equity	9,000			9,000			9,000			9,000			9,000			—		—		9,000			9,000			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	149,147		$	146,388		$	142,966		$	138,178		$	135,213		2		10		$	144,206		$	132,875		9
Loans	127,802			125,445			122,173			118,310			115,063			2		11		123,464			112,876			9
Core loans	127,802			125,445			122,173			118,310			115,063			2		11		123,464			112,876			9
Deposits	142,069			144,496			150,786			158,810			158,335			(2	)	(10	)	148,982			153,334			(3	)
Equity	9,000			9,000			9,000			9,000			9,000			—		—		9,000			9,000			—

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	4		$	5		$	2		$	3		$	—		(20	)	NM		$	14		$	16		(13	)
Nonaccrual loans	375			337			400			379			390			11		(4	)	375			390			(4	)
Allowance for credit losses:
Allowance for loan losses	290			285			285			289			274			2		6		290			274			6
Allowance for lending-related commitments	10			10			10			4			4			—		150		10			4			150
Total allowance for credit losses	300			295			295			293			278			2		8		300			278			8
Net charge-off/(recovery) rate	0.01		%	0.02		%	0.01		%	0.01		%	—		%					0.01		%	0.01		%
Allowance for loan losses to period-end loans	0.22			0.22			0.23			0.24			0.23							0.22			0.23
Allowance for loan losses to nonaccrual loans	77			85			71			76			70							77			70
Nonaccrual loans to period-end loans	0.29			0.26			0.32			0.32			0.33							0.29			0.33

Page 21



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


															Dec 31, 2017
															Change				FULL YEAR
	Dec 31,		Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,								2017 Change
CLIENT ASSETS	2017		2017			2017			2017			2016			2017		2016		2017			2016			2016
Assets by asset class
Liquidity	$	459	$	441		$	434		$	444		$	436		4	%	5	%	$	459		$	436		5	%
Fixed income	474		461			440			432			420			3		13		474			420			13
Equity	428		405			390			378			351			6		22		428			351			22
Multi-asset and alternatives	673		638			612			587			564			5		19		673			564			19
TOTAL ASSETS UNDER MANAGEMENT	2,034		1,945			1,876			1,841			1,771			5		15		2,034			1,771			15
Custody/brokerage/administration/deposits	755		733			722			707			682			3		11		755			682			11
TOTAL CLIENT ASSETS	$	2,789	$	2,678		$	2,598		$	2,548		$	2,453		4		14		$	2,789		$	2,453		14

Memo:
Alternatives client assets (a)	$	166	$	161		$	159		$	157		$	154		3		8		$	166		$	154		8

Assets by client segment
Private Banking	$	526	$	507		$	488		$	468		$	435		4		21		$	526		$	435		21
Institutional	968		921			889			889			869			5		11		968			869			11
Retail	540		517			499			484			467			4		16		540			467			16
TOTAL ASSETS UNDER MANAGEMENT	$	2,034	$	1,945		$	1,876		$	1,841		$	1,771		5		15		$	2,034		$	1,771		15

Private Banking	$	1,256	$	1,217		$	1,188		$	1,154		$	1,098		3		14		$	1,256		$	1,098		14
Institutional	990		941			909			908			886			5		12		990			886			12
Retail	543		520			501			486			469			4		16		543			469			16
TOTAL CLIENT ASSETS	$	2,789	$	2,678		$	2,598		$	2,548		$	2,453		4		14		$	2,789		$	2,453		14

Assets under management rollforward
Beginning balance	$	1,945	$	1,876		$	1,841		$	1,771		$	1,772						$	1,771		$	1,723
Net asset flows:
Liquidity	10		5			(7		)	1			35							9			24
Fixed income	12		17			2			5			(6		)					36			30
Equity	1		(5		)	(3		)	(4		)	(12		)					(11		)	(29		)
Multi-asset and alternatives	17		9			10			7			(3		)					43			22
Market/performance/other impacts	49		43			33			61			(15		)					186			1
Ending balance	$	2,034	$	1,945		$	1,876		$	1,841		$	1,771						$	2,034		$	1,771

Client assets rollforward
Beginning balance	$	2,678	$	2,598		$	2,548		$	2,453		$	2,447						$	2,453		$	2,350
Net asset flows	56		25			2			10			21							93			63
Market/performance/other impacts	55		55			48			85			(15		)					243			40
Ending balance	$	2,789	$	2,678		$	2,598		$	2,548		$	2,453						$	2,789		$	2,453


(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																			FULL YEAR
																4Q17 Change										2017 Change
	4Q17			3Q17			2Q17			1Q17			4Q16			3Q17		4Q16		2017			2016			2016
INCOME STATEMENT
REVENUE
Principal transactions	$	123		$	(2	)	$	148		$	15		$	27		NM		356	%	$	284		$	210		35	%
Securities gains/(losses)	(29		)	—			(34		)	(3		)	5			NM		NM		(66		)	140			NM
All other income (a)	28			111			667			61			269			(75	)	(90	)	867			588			47
Noninterest revenue	122			109			781			73			301			12		(59	)	1,085			938			16
Net interest income	53			77			23			(98		)	(498		)	(31	)	NM		55			(1,425		)	NM
TOTAL NET REVENUE (b)	175			186			804			(25		)	(197		)	(6	)	NM		1,140			(487		)	NM

Provision for credit losses	—			—			—			—			—			—		—		—			(4		)	100

NONINTEREST EXPENSE (c)	146			74			183			98			439			97		(67	)	501			462			8
Income/(loss) before income tax expense/(benefit)	29			112			621			(123		)	(636		)	(74	)	NM		639			(945		)	NM
Income tax expense/(benefit) (d)	2,355			34			51			(158		)	(295		)	NM		NM		2,282			(241		)	NM
NET INCOME/(LOSS)	$	(2,326	)	$	78		$	570		$	35		$	(341	)	NM		NM		$	(1,643	)	$	(704	)	(133	)

MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”)	222			265			86			(7		)	(256		)	(16	)	NM		566			(787		)	NM
Other Corporate	(47		)	(79		)	718			(18		)	59			41		NM		574			300			91
TOTAL NET REVENUE	$	175		$	186		$	804		$	(25	)	$	(197	)	(6	)	NM		$	1,140		$	(487	)	NM

NET INCOME/(LOSS)
Treasury and CIO	66			75			(14		)	(67		)	(197		)	(12	)	NM		60			(715		)	NM
Other Corporate	(2,392		)	3			584			102			(144		)	NM		NM		(1,703		)	11			NM
TOTAL NET INCOME/(LOSS)	$	(2,326	)	$	78		$	570		$	35		$	(341	)	NM		NM		$	(1,643	)	$	(704	)	(133	)

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	781,478		$	804,573		$	817,754		$	822,819		$	799,426		(3	)	(2	)	$	781,478		$	799,426		(2	)
Loans	1,653			1,614			1,696			1,483			1,592			2		4		1,653			1,592			4
Core loans (e)	1,653			1,614			1,696			1,480			1,589			2		4		1,653			1,589			4

Headcount	35,261			34,659			33,464			33,305			32,358			2		9		35,261			32,358			9

SUPPLEMENTAL INFORMATION
TREASURY and CIO
Securities gains	$	(29	)	$	—		$	(34	)	$	(15	)	$	(3	)	NM		NM		$	(78	)	$	132		NM
AFS investment securities ( average)	205,252			212,633			225,053			234,841			227,960			(3	)	(10	)	219,345			226,892			(3	)
HTM investment securities ( average)	47,115			47,034			48,232			49,362			50,883			—		(7	)	47,927			51,358			(7	)
Investment securities portfolio (average)	$	252,367		$	259,667		$	273,285		$	284,203		$	278,843		(3	)	(9	)	$	267,272		$	278,250		(4	)
AFS investment securities ( period-end)	200,247			214,257			213,291			230,617			236,670			(7	)	(15	)	200,247			236,670			(15	)
HTM investment securities ( period-end)	47,733			47,079			47,761			48,913			50,168			1		(5	)	47,733			50,168			(5	)
Investment securities portfolio (period-end)	$	247,980		$	261,336		$	261,052		$	279,530		$	286,838		(5	)	(14	)	$	247,980		$	286,838		(14	)


(a)	Included revenue related to a legal settlement of $645 million for both the three months ended June 30, 2017 and the full year 2017.


(b)	Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $224 million, $216 million, $237 million, $228 million, and $222 million for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively and $905 million and $885 million for the full year 2017 and 2016, respectively.


(c)	Included legal expense/(benefit) of $(233) million, $(148) million, $16 million, $(228) million and $165 million for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively, and $(593) million and $(385) million for the full year 2017 and 2016, respectively.


(d)	The three months ended December 31, 2017 and the full year 2017 results include a $2.7 billion increase to income tax expense reflecting the estimated impact of the enactment of the TCJA.


(e)	Average core loans were $1.7 billion, $1.7 billion, $1.6 billion, $1.6 billion, and $1.7 billion for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, respectively, and $1.6 billion and $1.9 billion for the full year 2017 and 2016, respectively.

Page 23



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
											Dec 31, 2017
											Change
	Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Sep 30,		Dec 31,
	2017		2017		2017		2017		2016		2017		2016
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained, excluding PCI loans	$	341,977	$	337,592	$	332,051	$	326,198	$	328,727	1	%	4	%
Loans - PCI	30,576		31,821		33,064		34,385		35,679		(4	)	(14	)
Total loans retained	372,553		369,413		365,115		360,583		364,406		1		2
Loans held-for-sale	128		188		256		6,472		238		(32	)	(46	)
Total consumer, excluding credit card loans	372,681		369,601		365,371		367,055		364,644		1		2

Credit card loans
Loans retained	149,387		141,200		140,035		134,917		141,711		6		5
Loans held-for-sale	124		113		106		99		105		10		18
Total credit card loans	149,511		141,313		140,141		135,016		141,816		6		5
Total consumer loans	522,192		510,914		505,512		502,071		506,460		2		3

Wholesale loans (b)
Loans retained	402,898		398,569		394,426		386,370		383,790		1		5
Loans held-for-sale and loans at fair value	5,607		4,278		8,829		7,533		4,515		31		24
Total wholesale loans	408,505		402,847		403,255		393,903		388,305		1		5

Total loans	930,697		913,761		908,767		895,974		894,765		2		4
Derivative receivables	56,523		58,260		56,506		56,063		64,078		(3	)	(12	)
Receivables from customers and other (c)	26,272		19,350		19,531		21,473		17,560		36		50
Total credit-related assets	1,013,492		991,371		984,804		973,510		976,403		2		4

Lending-related commitments
Consumer, excluding credit card	49,710		55,071		58,162		53,594		54,797		(10	)	(9	)
Credit card	572,831		574,641		576,264		577,096		553,891		—		3
Wholesale	370,098		372,380		366,498		364,520		368,014		(1	)	1
Total lending-related commitments	992,639		1,002,092		1,000,924		995,210		976,702		(1	)	2

Total credit exposure	$	2,006,131	$	1,993,463	$	1,985,728	$	1,968,720	$	1,953,105	1		3

Memo: Total by category
Consumer exposure (d)	$	1,144,866	$	1,140,758	$	1,140,074	$	1,132,889	$	1,115,268	—		3
Wholesale exposures (e)	861,265		852,705		845,654		835,831		837,837		1		3
Total credit exposure	$	2,006,131	$	1,993,463	$	1,985,728	$	1,968,720	$	1,953,105	1		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 reflected a write-down to the estimated fair value of the portfolio at the time of the transfer. This transfer impacted certain loan and credit-related metrics disclosed on pages 12-13 and 24-27.

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 held-for-investment 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, 2017
																Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,
	2017			2017			2017			2017			2016			2017		2016
NONPERFORMING ASSETS (a)
Consumer nonaccrual loans (b)(c)	$	4,209		$	4,161		$	4,226		$	4,549		$	4,820		1		(13	)

Wholesale nonaccrual loans
Loans retained	1,734			1,470			1,634			1,571			1,954			18		(11	)
Loans held-for-sale and loans at fair value	—			2			31			109			109			(100	)	(100	)
Total wholesale nonaccrual loans	1,734			1,472			1,665			1,680			2,063			18		(16	)

Total nonaccrual loans	5,943			5,633			5,891			6,229			6,883			6		(14	)

Derivative receivables	130			164			170			179			223			(21	)	(42	)
Assets acquired in loan satisfactions	353			357			371			418			429			(1	)	(18	)
Total nonperforming assets	6,426			6,154			6,432			6,826			7,535			4		(15	)
Wholesale lending-related commitments (d)	731			764			750			882			506			(4	)	44
Total nonperforming exposure	$	7,157		$	6,918		$	7,182		$	7,708		$	8,041		3		(11	)

NONACCRUAL LOAN-RELATED RATIOS
Total nonaccrual loans to total loans	0.64		%	0.62		%	0.65		%	0.70		%	0.77		%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans	1.13			1.13			1.16			1.24			1.32
Total wholesale nonaccrual loans to total
wholesale loans	0.42			0.37			0.41			0.43			0.53

(a)

At December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017, and December 31, 2016, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $4.3 billion, $4.0 billion, $4.1 billion, $4.5 billion and $5.0 billion, respectively, that are 90 or more days past due; and (2) real estate owned (“REO”) insured by U.S. government agencies of $95 million, $99 million, $105 million, $121 million and $142 million, respectively. Student loans insured by U.S. government agencies under FFELP and 90 or more days past due were also excluded from nonperforming assets prior to the sale of the student loan portfolio in the second quarter of 2017. 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 $-, $3 million, $33 million, $156 million and $53 million at December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, respectively.


(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
																		4Q17 Change											2017 Change
	4Q17			3Q17				2Q17			1Q17				4Q16			3Q17		4Q16		2017				2016			2016
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	13,539		$	13,363			$	13,413		$	13,776			$	14,204		1	%	(5	)%	$	13,776			$	13,555		2	%
Net charge-offs:
Gross charge-offs	1,535			1,550				1,468			1,959				1,532			(1	)	—		6,512				5,697			14
Gross recoveries	(271		)	(285		)		(264		)	(305		)		(252		)	5		(8	)	(1,125		)		(1,005		)	(12	)
Net charge-offs	1,264			1,265			(c)	1,204			1,654				1,280			—		(1	)	5,387				4,692			15
Write-offs of PCI loans (a)	20			20				22			24				32			—		(38	)	86				156			(45	)
Provision for loan losses	1,349			1,460				1,175			1,316				896			(8	)	51		5,300				5,080			4
Other	—			1				1			(1		)		(12		)	(100	)	100		1				(11		)	NM
Ending balance	$	13,604		$	13,539			$	13,363		$	13,413			$	13,776		—		(1	)	$	13,604			$	13,776		(1	)

ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	1,109		$	1,117			$	1,077		$	1,078			$	1,100		(1	)	1		$	1,078			$	786		37
Provision for lending-related commitments	(41		)	(8		)		40			(1		)		(32		)	(413	)	(28	)	(10		)		281			NM
Other	—			—				—			—				10			—		(100	)	—				11			(100	)
Ending balance	$	1,068		$	1,109			$	1,117		$	1,077			$	1,078		(4	)	(1	)	$	1,068			$	1,078		(1	)

Total allowance for credit losses	$	14,672		$	14,648			$	14,480		$	14,490			$	14,854		—		(1	)	$	14,672			$	14,854		(1	)

NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans (b)	0.15		%	0.22		%		0.12		%	0.76		%	(d)	0.31		%					0.31		%	(d)	0.25		%
Credit card retained loans	2.97			2.87				3.01			2.94				2.67							2.95				2.63
Total consumer retained loans	0.94			0.95				0.92			1.35			(d)	0.95							1.04			(d)	0.89
Wholesale retained loans	0.05			0.04				0.06			(0.03		)		0.08							0.03				0.09
Total retained loans	0.55			0.56			(c)	0.54			0.76			(d)	0.58							0.60			(d)	0.54
Consumer retained loans, excluding credit card and
PCI loans	0.17			0.24				0.13			0.84			(d)	0.35							0.34			(d)	0.28
Consumer retained loans, excluding PCI loans	1.00			1.02				0.99			1.46			(d)	1.03							1.11			(d)	0.96
Total retained, excluding PCI loans	0.57			0.58			(c)	0.56			0.79			(d)	0.60							0.62			(d)	0.57

Memo: Average retained loans
Consumer retained, excluding credit card loans	$	371,068		$	367,411			$	362,551		$	366,098			$	364,857		1		2		$	366,798			$	358,486		2
Credit card retained loans	143,388			141,061				138,032			137,112				136,085			2		5		139,918				131,081			7
Total average retained consumer loans	514,456			508,472				500,583			503,210				500,942			1		3		506,716				489,567			4
Wholesale retained loans	398,795			395,420				392,257			382,367				382,360			1		4		392,263				371,778			6
Total average retained loans	$	913,251		$	903,892			$	892,840		$	885,577			$	883,302		1		3		$	898,979			$	861,345		4

Consumer retained, excluding credit card and
PCI loans	$	339,860		$	334,987			$	328,816		$	331,057			$	328,507		1		3		$	333,709			$	320,118		4
Consumer retained, excluding PCI loans	483,248			476,048				466,848			468,169				464,592			2		4		473,627				451,199			5
Total retained, excluding PCI loans	882,040			871,465				859,102			850,533				846,949			1		4		865,887				822,973			5

Note: During the second quarter of 2017, the Firm refined its loss estimates on the wholesale portfolio by incorporating the use of internal historical data versus external credit rating agency default statistics to estimate probability of default. In addition, an adjustment to the modeled loss estimates for wholesale lending-related commitments was incorporated similar to the adjustment applied for wholesale loans. The impacts of these refinements were not material to the allowance for credit losses.


(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)	Net charge-offs and net charge-off rates for the three months ended September 30, 2017 included $63 million of incremental charge-offs recorded in accordance with regulatory guidance regarding the timing of loss recognition for certain auto and residential real estate loans in bankruptcy and auto loans where assets were acquired in loan satisfaction.

(d)

During the first quarter of 2017, the Firm transferred the student loan portfolio to held-for-sale, resulting in a write-down of the portfolio to the estimated fair value at the time of the transfer. For the three months ended March 31, 2017, excluding net charge-offs of $467 million related to the transfer, 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%. For the year ended December 31, 2017, the net charge-off rate for Consumer retained, excluding credit card loans would have been 0.18%; Total consumer retained loans would have been 0.95%; Total retained loans would have been 0.55%; Consumer retained, excluding credit card loans and PCI loans would have been 0.20%; Total consumer retained loans excluding PCI loans would have been 1.01%; 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)

																Dec 31, 2017
																Change
	Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,		Dec 31,
	2017			2017			2017			2017			2016			2017		2016
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)	$	246		$	271		$	296		$	300		$	308		(9	)%	(20	)%
Formula-based	2,108			2,266			2,239			2,339			2,579			(7	)	(18	)
PCI	2,225			2,245			2,265			2,287			2,311			(1	)	(4	)
Total consumer, excluding credit card	4,579			4,782			4,800			4,926			5,198			(4	)	(12	)
Credit card
Asset-specific (a)(b)	383			376			370			373			358			2		7
Formula-based	4,501			4,308			4,014			3,661			3,676			4		22
Total credit card	4,884			4,684			4,384			4,034			4,034			4		21
Total consumer	9,463			9,466			9,184			8,960			9,232			—		3
Wholesale
Asset-specific (a)	461			363			345			249			342			27		35
Formula-based	3,680			3,710			3,834			4,204			4,202			(1	)	(12	)
Total wholesale	4,141			4,073			4,179			4,453			4,544			2		(9	)
Total allowance for loan losses	13,604			13,539			13,363			13,413			13,776			—		(1	)
Allowance for lending-related commitments	1,068			1,109			1,117			1,077			1,078			(4	)	(1	)
Total allowance for credit losses	$	14,672		$	14,648		$	14,480		$	14,490		$	14,854		—		(1	)

CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	1.23		%	1.29		%	1.31		%	1.37		%	1.43		%
Credit card allowance to total credit card retained loans	3.27			3.32			3.13			2.99			2.85
Wholesale allowance to total wholesale retained loans	1.03			1.02			1.06			1.15			1.18
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (c)	1.12			1.12			1.17			1.27			1.30
Total allowance to total retained loans	1.47			1.49			1.49			1.52			1.55
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	109			115			114			112			109
Total allowance, excluding credit card allowance, to retained
nonaccrual loans, excluding credit card nonaccrual loans (d)	147			157			154			157			145
Wholesale allowance to wholesale retained nonaccrual loans	239			277			256			283			233
Total allowance to total retained nonaccrual loans	229			241			229			225			205

CREDIT RATIOS, excluding PCI loans
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	0.69			0.75			0.76			0.81			0.88
Total allowance to total retained loans	1.27			1.29			1.28			1.31			1.34
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	56			61			60			60			61
Allowance, excluding credit card allowance, to retained non-
accrual loans, excluding credit card nonaccrual loans (d)	109			117			115			119			111
Total allowance to total retained nonaccrual loans	191			201			190			187			171


(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 Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. The Firm’s definition of managed basis starts, in each case, 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 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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