JPMORGAN CHASE & CO - FORM 8-K - EX-99.2 - EARNINGS RELEASE FINANCIAL SUPPLEMENT - 3Q18

Attached files

file	filename
EX-12.1 - COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES - 3Q18 - JPMORGAN CHASE & CO	a3q18erfexhibit121.htm
EX-99.1 - EARNINGS RELEASE - 3Q18 - JPMORGAN CHASE & CO	a3q18erfexhibit991narrative.htm
EX-12.2 - RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS - 3Q18 - JPMORGAN CHASE & CO	a3q18erfexhibit122.htm
8-K - 8-K - JPMORGAN CHASE & CO	a3q18erf8kcover.htm

EARNINGS RELEASE FINANCIAL SUPPLEMENT

THIRD QUARTER 2018



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

Notes Including Non-GAAP Financial Measures and Key Performance Measures							28–29


Glossary of Terms and Acronyms (a)

(a)

Refer to the Glossary of Terms and Acronyms on pages 283–289 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”) and the Glossary of Terms and Acronyms and Line of Business Metrics on Pages 172–176 and pages 177–179, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018.



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

	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																		3Q18 Change												2018 Change
SELECTED INCOME STATEMENT DATA	3Q18				2Q18			1Q18			4Q17			3Q17				2Q18		3Q17		2018				2017				2017
Reported Basis
Total net revenue	$	27,260			$	27,753		$	27,907		$	24,457		$	25,578			(2	)%	7	%	$	82,920			$	76,248			9	%
Total noninterest expense	15,623				15,971			16,080			14,895			14,570				(2	)	7		47,674				44,620				7
Pre-provision profit	11,637				11,782			11,827			9,562			11,008				(1	)	6		35,246				31,628				11
Provision for credit losses	948				1,210			1,165			1,308			1,452				(22	)	(35	)	3,323				3,982				(17	)
NET INCOME	8,380				8,316			8,712			4,232			6,732				1		24		25,408				20,209				26

Managed Basis (a)
Total net revenue	27,822				28,388			28,520			25,754			26,452				(2	)	5		84,730				78,968				7
Total noninterest expense	15,623				15,971			16,080			14,895			14,570				(2	)	7		47,674				44,620				7
Pre-provision profit	12,199				12,417			12,440			10,859			11,882				(2	)	3		37,056				34,348				8
Provision for credit losses	948				1,210			1,165			1,308			1,452				(22	)	(35	)	3,323				3,982				(17	)
NET INCOME	8,380				8,316			8,712			4,232			6,732				1		24		25,408				20,209				26

EARNINGS PER SHARE DATA
Net income: Basic	$	2.35			$	2.31		$	2.38		$	1.08		$	1.77			2		33		$	7.04			$	5.26			34
Diluted	2.34				2.29			2.37			1.07			1.76				2		33		7.00				5.22				34
Average shares: Basic	3,376.1				3,415.2			3,458.3			3,489.7			3,534.7				(1	)	(4	)	3,416.5				3,570.9				(4	)
Diluted	3,394.3				3,434.7			3,479.5			3,512.2			3,559.6				(1	)	(5	)	3,436.2				3,597.0				(4	)

MARKET AND PER COMMON SHARE DATA
Market capitalization	$	375,239			$	350,204		$	374,423		$	366,301		$	331,393			7		13		$	375,239			$	331,393			13
Common shares at period-end	3,325.4				3,360.9			3,404.8			3,425.3			3,469.7				(1	)	(4	)	3,325.4				3,469.7				(4	)
Closing share price (b)	$	112.84			$	104.20		$	109.97		$	106.94		$	95.51			8		18		$	112.84			$	95.51			18
Book value per share	69.52				68.85			67.59			67.04			66.95				1		4		69.52				66.95				4
Tangible book value per share (“TBVPS”) (c)	55.68				55.14			54.05			53.56			54.03				1		3		55.68				54.03				3
Cash dividends declared per share	0.80			(g)	0.56			0.56			0.56			0.56				43		43		1.92				1.56				23

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)	14		%		14		%	15		%	7		%	11		%						14		%		11		%
Return on tangible common equity (“ROTCE”) (c)	17				17			19			8			13								18				14
Return on assets	1.28				1.28			1.37			0.66			1.04								1.31				1.06

CAPITAL RATIOS
Common equity Tier 1 (“CET1”) capital ratio (e)	12.0		%	(h)	12.0		%	11.8		%	12.2		%	12.5		%	(i)					12.0		%	(h)	12.5		%	(i)
Tier 1 capital ratio (e)	13.6			(h)	13.6			13.5			13.9			14.1			(i)					13.6			(h)	14.1			(i)
Total capital ratio (e)	15.4			(h)	15.5			15.3			15.9			16.1								15.4			(h)	16.1
Tier 1 leverage ratio (e)	8.3			(h)	8.2			8.2			8.3			8.4								8.3			(h)	8.4
Supplementary leverage ratio (“SLR”) (f)	6.5		%	(h)	6.5			6.5			6.5			6.6								6.5			(h)	6.6

Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and, accordingly, prior period amounts were revised. Refer to page 29 for further discussion.


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


(b)	Based on the closing price reported by 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 pages 28–29.


(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)	Effective January 1, 2018, the SLR was fully phased-in under Basel III. The SLR is defined as Tier 1 capital divided by the Firm’s total leverage exposure. Ratios prior to March 31, 2018 were calculated under the Basel III Transitional rules.


(g)	On September 18, 2018, the Board of Directors increased the quarterly common stock dividend from $0.56 to $0.80 per share.


(h)	Estimated.


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

Page 2



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

	QUARTERLY TRENDS																			NINE MONTHS ENDED SEPTEMBER 30,
																3Q18 Change										2018 Change
	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		2018			2017			2017
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,615,183		$	2,590,050		$	2,609,785		$	2,533,600		$	2,563,074		1	%	2	%	$	2,615,183		$	2,563,074		2	%
Loans:
Consumer, excluding credit card loans	376,062			374,697			373,395			372,681			369,601			—		2		376,062			369,601			2
Credit card loans	147,881			145,255			140,414			149,511			141,313			2		5		147,881			141,313			5
Wholesale loans	430,375			428,462			420,615			408,505			402,847			—		7		430,375			402,847			7
Total Loans	954,318			948,414			934,424			930,697			913,761			1		4		954,318			913,761			4
Core loans (a)	899,006			889,433			870,536			863,683			843,432			1		7		899,006			843,432			7
Core loans (average) (a)	894,279			877,640			861,089			850,166			837,522			2		7		877,774			822,611			7

Deposits:
U.S. offices:
Noninterest-bearing	374,603			385,741			397,856			393,645			390,863			(3	)	(4	)	374,603			390,863			(4	)
Interest-bearing	814,988			819,454			825,223			793,618			783,233			(1	)	4		814,988			783,233			4
Non-U.S. offices:
Noninterest-bearing	19,127			16,602			17,019			15,576			17,907			15		7		19,127			17,907			7
Interest-bearing	250,044			230,325			246,863			241,143			247,024			9		1		250,044			247,024			1
Total deposits	1,458,762			1,452,122			1,486,961			1,443,982			1,439,027			—		1		1,458,762			1,439,027			1

Long-term debt	270,124			273,114			274,449			284,080			288,582			(1	)	(6	)	270,124			288,582			(6	)
Common stockholders’ equity	231,192			231,390			230,133			229,625			232,314			—		—		231,192			232,314			—
Total stockholders’ equity	258,956			257,458			256,201			255,693			258,382			1		—		258,956			258,382			—

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

Headcount	255,313			252,942			253,707			252,539			251,503			1		2		255,313			251,503			2

95% CONFIDENCE LEVEL - TOTAL VaR
Average VaR	$	35		$	35		$	43		$	34		$	30		—		17

LINE OF BUSINESS NET REVENUE (b)
Consumer & Community Banking	$	13,290		$	12,497		$	12,597		$	12,070		$	12,033		6		10		$	38,384		$	34,415		12
Corporate & Investment Bank	8,805			9,923			10,483			7,518			8,615			(11	)	2		29,211			27,139			8
Commercial Banking	2,271			2,316			2,166			2,353			2,146			(2	)	6		6,753			6,252			8
Asset & Wealth Management	3,559			3,572			3,506			3,638			3,472			—		3		10,637			10,197			4
Corporate	(103		)	80			(232		)	175			186			NM		NM		(255		)	965			NM
TOTAL NET REVENUE	$	27,822		$	28,388		$	28,520		$	25,754		$	26,452		(2	)	5		$	84,730		$	78,968		7

LINE OF BUSINESS NET INCOME
Consumer & Community Banking	$	4,086		$	3,412		$	3,326		$	2,631		$	2,553		20		60		$	10,824		$	6,764		60
Corporate & Investment Bank	2,626			3,198			3,974			2,316			2,546			(18	)	3		9,798			8,497			15
Commercial Banking	1,089			1,087			1,025			957			881			—		24		3,201			2,582			24
Asset & Wealth Management	724			755			770			654			674			(4	)	7		2,249			1,683			34
Corporate	(145		)	(136		)	(383		)	(2,326		)	78			(7	)	NM		(664		)	683			NM
NET INCOME	$	8,380		$	8,316		$	8,712		$	4,232		$	6,732		1		24		$	25,408		$	20,209		26


(a)	Loans considered central to the Firm’s ongoing businesses. For further discussion of core loans, see pages 28–29.


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

Page 3



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

	QUARTERLY TRENDS																				NINE MONTHS ENDED SEPTEMBER 30,
																	3Q18 Change										2018 Change
REVENUE	3Q18			2Q18			1Q18			4Q17				3Q17			2Q18		3Q17		2018			2017			2017
Investment banking fees	$	1,832		$	2,168		$	1,736		$	1,818			$	1,868		(15	)%	(2	)%	$	5,736		$	5,594		3	%
Principal transactions	2,964			3,782			3,952			1,907				2,721			(22	)	9		10,698			9,440			13
Lending- and deposit-related fees	1,542			1,495			1,477			1,506				1,497			3		3		4,514			4,427			2
Asset management, administration and commissions	4,310			4,304			4,309			4,291				4,072			—		6		12,923			11,996			8
Investment securities gains/(losses)	(46		)	(80		)	(245		)	(28		)		(1		)	43		NM		(371		)	(38		)	NM
Mortgage fees and related income	262			324			465			377				429			(19	)	(39	)	1,051			1,239			(15	)
Card income	1,328			1,020			1,275			1,110				1,242			30		7		3,623			3,323			9
Other income	1,160			1,255			1,626			449				952			(8	)	22		4,041			3,197			26
Noninterest revenue	13,352			14,268			14,595			11,430				12,780			(6	)	4		42,215			39,178			8
Interest income	19,840			18,869			17,695			16,993				16,687			5		19		56,404			47,379			19
Interest expense	5,932			5,384			4,383			3,966				3,889			10		53		15,699			10,309			52
Net interest income	13,908			13,485			13,312			13,027				12,798			3		9		40,705			37,070			10
TOTAL NET REVENUE	27,260			27,753			27,907			24,457				25,578			(2	)	7		82,920			76,248			9

Provision for credit losses	948			1,210			1,165			1,308				1,452			(22	)	(35	)	3,323			3,982			(17	)

NONINTEREST EXPENSE
Compensation expense	8,108			8,338			8,862			7,498				7,697			(3	)	5		25,308			23,710			7
Occupancy expense	1,014			981			888			920				930			3		9		2,883			2,803			3
Technology, communications and equipment expense	2,219			2,168			2,054			2,038				1,972			2		13		6,441			5,677			13
Professional and outside services	2,086			2,126			2,121			2,244				1,955			(2	)	7		6,333			5,646			12
Marketing	798			798			800			721				710			—		12		2,396			2,179			10
Other expense (a)	1,398			1,560			1,355			1,474				1,306			(10	)	7		4,313			4,605			(6	)
TOTAL NONINTEREST EXPENSE	15,623			15,971			16,080			14,895				14,570			(2	)	7		47,674			44,620			7
Income before income tax expense	10,689			10,572			10,662			8,254				9,556			1		12		31,923			27,646			15
Income tax expense	2,309			2,256			1,950			4,022			(d)	2,824			2		(18	)	6,515			7,437			(12	)
NET INCOME	$	8,380		$	8,316		$	8,712		$	4,232			$	6,732		1		24		$	25,408		$	20,209		26

NET INCOME PER COMMON SHARE DATA
Basic earnings per share	$	2.35		$	2.31		$	2.38		$	1.08			$	1.77		2		33		$	7.04		$	5.26		34
Diluted earnings per share	2.34			2.29			2.37			1.07				1.76			2		33		7.00			5.22			34

FINANCIAL RATIOS
Return on common equity (b)	14		%	14		%	15		%	7		%		11		%					14		%	11		%
Return on tangible common equity (b)(c)	17			17			19			8				13							18			14
Return on assets (b)	1.28			1.28			1.37			0.66				1.04							1.31			1.06
Effective income tax rate	21.6			21.3			18.3			48.7			(d)	29.6							20.4			26.9
Overhead ratio	57			58			58			61				57							57			59


(a)	Included Firmwide legal expense/(benefit) of $20 million, $0 million, $70 million, $(207) million and $(107) million for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017, and September 30, 2017, respectively; and $90 million and $172 million for the nine months ended September 30, 2018 and 2017, respectively.


(b)	Quarterly ratios are based upon annualized amounts.


(c)	For further discussion of ROTCE, see pages 28–29.


(d)	The three months ended December 31, 2017 results include a $1.9 billion tax expense as a result of the estimated impact of the enactment of the Tax Cuts & Jobs Act (“TCJA”).

Page 4



JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
																	Sep 30, 2018
																	Change
	Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,		Sep 30,
	2018				2018			2018			2017			2017			2018		2017
ASSETS
Cash and due from banks	$	23,225			$	23,680		$	24,834		$	25,898		$	22,064		(2	)%	5	%
Deposits with banks	395,872				381,500			389,978			405,406			437,092			4		(9	)
Federal funds sold and securities purchased under
resale agreements	217,632				226,505			247,608			198,422			185,454			(4	)	17
Securities borrowed	122,434				108,246			116,132			105,112			101,680			13		20
Trading assets:
Debt and equity instruments	359,765				360,289			355,368			325,321			362,158			—		(1	)
Derivative receivables	60,062				58,510			56,914			56,523			58,260			3		3
Investment securities	231,398				233,015			238,188			249,958			263,288			(1	)	(12	)
Loans	954,318				948,414			934,424			930,697			913,761			1		4
Less: Allowance for loan losses	13,128				13,250			13,375			13,604			13,539			(1	)	(3	)
Loans, net of allowance for loan losses	941,190				935,164			921,049			917,093			900,222			1		5
Accrued interest and accounts receivable	78,792				75,669			72,659			67,729			61,757			4		28
Premises and equipment	14,180				14,132			14,382			14,159			14,218			—		—
Goodwill, MSRs and other intangible assets	54,697				54,535			54,533			54,392			53,855			—		2
Other assets	115,936				118,805			118,140			113,587			103,026			(2	)	13
TOTAL ASSETS	$	2,615,183			$	2,590,050		$	2,609,785		$	2,533,600		$	2,563,074		1		2

LIABILITIES
Deposits	$	1,458,762			$	1,452,122		$	1,486,961		$	1,443,982		$	1,439,027		—		1
Federal funds purchased and securities loaned or sold
under repurchase agreements	181,608				175,293			179,091			158,916			169,393			4		7
Short-term borrowings	64,635				63,918			62,667			51,802			53,967			1		20
Trading liabilities:
Debt and equity instruments	109,457				107,327			99,588			85,886			89,089			2		23
Derivative payables	41,693				42,511			36,949			37,777			39,446			(2	)	6
Accounts payable and other liabilities	209,707				196,984			192,295			189,383			196,764			6		7
Beneficial interests issued by consolidated VIEs	20,241				21,323			21,584			26,081			28,424			(5	)	(29	)
Long-term debt	270,124				273,114			274,449			284,080			288,582			(1	)	(6	)
TOTAL LIABILITIES	2,356,227				2,332,592			2,353,584			2,277,907			2,304,692			1		2

STOCKHOLDERS’ EQUITY
Preferred stock	27,764			(a)	26,068			26,068			26,068			26,068			7		7
Common stock	4,105				4,105			4,105			4,105			4,105			—		—
Additional paid-in capital	89,333				89,392			89,211			90,579			90,697			—		(2	)
Retained earnings	195,180				189,881			183,855			177,676			175,827			3		11
Accumulated other comprehensive income/(loss)	(2,425		)		(1,138		)	(1,063		)	(119		)	(309		)	(113	)	NM
Shares held in RSU Trust, at cost	(21		)		(21		)	(21		)	(21		)	(21		)	—		—
Treasury stock, at cost	(54,980		)		(50,829		)	(45,954		)	(42,595		)	(37,985		)	(8	)	(45	)
TOTAL STOCKHOLDERS’ EQUITY	258,956				257,458			256,201			255,693			258,382			1		—
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,615,183			$	2,590,050		$	2,609,785		$	2,533,600		$	2,563,074		1		2


(a)	Includes $1.7 billion to be redeemed on October 30, 2018 as previously announced on September 17, 2018.

Page 5



JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
	QUARTERLY TRENDS																			NINE MONTHS ENDED SEPTEMBER 30,
																3Q18 Change											2018 Change
AVERAGE BALANCES	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		2018			2017				2017
ASSETS
Deposits with banks	$	408,595		$	425,942		$	423,807		$	438,740		$	456,673		(4	)%	(11	)%	$	419,392		$	439,974			(5	)%
Federal funds sold and securities purchased under
resale agreements	208,439			205,001			198,362			188,545			188,594			2		11		203,969			192,922				6
Securities borrowed	117,057			112,464			109,733			100,120			95,597			4		22		113,112			93,708				21
Trading assets - debt instruments	258,027			256,526			256,040			247,063			240,876			1		7		256,872			233,884				10
Investment securities	229,987			232,007			239,754			253,767			261,117			(1	)	(12	)	233,881			273,703				(15	)
Loans	951,724			939,675			926,548			918,806			909,580			1		5		939,408			902,216				4
All other interest-earning assets (a)	46,429			50,662			49,169			42,666			41,737			(8	)	11		48,743			41,113				19
Total interest-earning assets	2,220,258			2,222,277			2,203,413			2,189,707			2,194,174			—		1		2,215,377			2,177,520				2
Trading assets - equity instruments	102,962			112,142			107,688			102,874			119,463			(8	)	(14	)	107,580			120,307				(11	)
Trading assets - derivative receivables	62,075			60,978			60,492			58,890			59,839			2		4		61,188			59,824				2
All other noninterest-earning assets	214,326			217,572			214,450			210,684			195,755			(1	)	9		215,449			196,358				10
TOTAL ASSETS	$	2,599,621		$	2,612,969		$	2,586,043		$	2,562,155		$	2,569,231		(1	)	1		$	2,599,594		$	2,554,009			2
LIABILITIES
Interest-bearing deposits	$	1,057,262		$	1,059,357		$	1,046,521		$	1,030,660		$	1,029,534		—		3		$	1,054,419		$	1,007,345			5
Federal funds purchased and securities loaned or
sold under repurchase agreements	184,377			192,136			196,112			181,898			181,851			(4	)	1		190,832			189,236				1
Short-term borrowings (b)	61,042			62,339			57,603			53,236			52,958			(2	)	15		60,341			44,273				36
Trading liabilities - debt and other interest-bearing liabilities (c)	177,091			180,879			171,488			168,440			168,738			(2	)	5		176,507			172,949				2
Beneficial interests issued by consolidated VIEs	19,921			20,906			23,561			27,295			29,832			(5	)	(33	)	21,449			34,197				(37	)
Long-term debt	275,979			275,645			279,005			283,301			294,626			—		(6	)	276,865			294,248				(6	)
Total interest-bearing liabilities	1,775,672			1,791,262			1,774,290			1,744,830			1,757,539			(1	)	1		1,780,413			1,742,248				2
Noninterest-bearing deposits	395,600			401,138			399,487			405,531			401,489			(1	)	(1	)	398,728			403,704				(1	)
Trading liabilities - equity instruments	36,309			34,593			28,631			22,747			20,905			5		74		33,206			20,441				62
Trading liabilities - derivative payables	44,810			42,168			41,745			38,845			44,627			6		—		42,919			45,900				(6	)
All other noninterest-bearing liabilities	90,539			88,839			88,207			91,987			86,742			2		4		89,203			85,711				4
TOTAL LIABILITIES	2,342,930			2,358,000			2,332,360			2,303,940			2,311,302			(1	)	1		2,344,469			2,298,004				2
Preferred stock	26,252			26,068			26,068			26,642			26,068			1		1		26,130			26,068				—
Common stockholders’ equity	230,439			228,901			227,615			231,573			231,861			1		(1	)	228,995			229,937				—
TOTAL STOCKHOLDERS’ EQUITY	256,691			254,969			253,683			258,215			257,929			1		—		255,125			256,005				—
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,599,621		$	2,612,969		$	2,586,043		$	2,562,155		$	2,569,231		(1	)	1		$	2,599,594		$	2,554,009			2

AVERAGE RATES (d)
INTEREST-EARNING ASSETS
Deposits with banks	1.54		%	1.45		%	1.26		%	1.12		%	1.09		%					1.42		%	0.91			%
Federal funds sold and securities purchased under
resale agreements	1.81			1.58			1.49			1.37			1.31							1.63			1.16
Securities borrowed	0.68			0.53			0.23			0.11			—							0.49			(0.09		)	(f)
Trading assets - debt instruments	3.34			3.33			3.35			3.25			3.25							3.34			3.25
Investment securities	3.26			3.24			3.08			3.15			3.10							3.20			3.07
Loans	5.11			4.99			4.87			4.67			4.62							4.99			4.52
All other interest-earning assets (a)	8.07			6.72			5.61			5.11			4.96							6.79			4.21
Total interest-earning assets	3.57			3.43			3.29			3.14			3.07							3.43			2.97

INTEREST-BEARING LIABILITIES
Interest-bearing deposits	0.61			0.51			0.41			0.35			0.32							0.51			0.26
Federal funds purchased and securities loaned or
sold under repurchase agreements	1.78			1.58			1.20			1.05			0.98							1.52			0.80
Short-term borrowings (b)	1.87			1.67			1.47			1.21			1.12							1.68			0.96
Trading liabilities - debt and other interest-bearing liabilities (c)	2.28			2.00			1.56			1.37			1.34							1.95			1.15
Beneficial interests issued by consolidated VIEs	2.41			2.33			2.11			1.71			1.62							2.28			1.51
Long-term debt	2.96			2.91			2.55			2.41			2.37							2.81			2.29
Total interest-bearing liabilities	1.33			1.21			1.00			0.90			0.88							1.18			0.79

INTEREST RATE SPREAD	2.24		%	2.22		%	2.29		%	2.24		%	2.19		%					2.25		%	2.18			%
NET YIELD ON INTEREST-EARNING ASSETS	2.51		%	2.46		%	2.48		%	2.42		%	2.37		%					2.49		%	2.34			%
Memo: Net yield on interest-earning assets excluding CIB Markets (e)	3.30		%	3.21		%	3.13		%	2.97		%	2.90		%					3.21		%	2.81			%


(a)	Includes held-for-investment margin loans, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated Balance Sheets.


(b)	Includes commercial paper.


(c)	Other interest-bearing liabilities include brokerage customer payables.


(d)	Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.


(e)	Net yield on interest-earning assets excluding CIB Markets is a non-GAAP financial measure. For further discussion on net yield on interest-earning assets excluding CIB Markets, refer to page 28.


(f)	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 and other interest-bearing 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 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 pages 28–29.

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



	QUARTERLY TRENDS																			NINE MONTHS ENDED SEPTEMBER 30,
																3Q18 Change										2018 Change
	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		2018			2017			2017
OTHER INCOME
Other income - reported	$	1,160		$	1,255		$	1,626		$	449		$	952		(8	)%	22	%	$	4,041		$	3,197		26	%
Fully taxable-equivalent adjustments (a)	408			474			455			971			555			(14	)	(26	)	1,337			1,733			(23	)
Other income - managed	$	1,568		$	1,729		$	2,081		$	1,420		$	1,507		(9	)	4		$	5,378		$	4,930		9

TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported	$	13,352		$	14,268		$	14,595		$	11,430		$	12,780		(6	)	4		$	42,215		$	39,178		8
Fully taxable-equivalent adjustments (a)	408			474			455			971			555			(14	)	(26	)	1,337			1,733			(23	)
Total noninterest revenue - managed	$	13,760		$	14,742		$	15,050		$	12,401		$	13,335		(7	)	3		$	43,552		$	40,911		6

NET INTEREST INCOME
Net interest income - reported	$	13,908		$	13,485		$	13,312		$	13,027		$	12,798		3		9		$	40,705		$	37,070		10
Fully taxable-equivalent adjustments (a)	154			161			158			326			319			(4	)	(52	)	473			987			(52	)
Net interest income - managed	$	14,062		$	13,646		$	13,470		$	13,353		$	13,117		3		7		$	41,178		$	38,057		8

TOTAL NET REVENUE
Total net revenue - reported	$	27,260		$	27,753		$	27,907		$	24,457		$	25,578		(2	)	7		$	82,920		$	76,248		9
Fully taxable-equivalent adjustments (a)	562			635			613			1,297			874			(11	)	(36	)	1,810			2,720			(33	)
Total net revenue - managed	$	27,822		$	28,388		$	28,520		$	25,754		$	26,452		(2	)	5		$	84,730		$	78,968		7

PRE-PROVISION PROFIT
Pre-provision profit - reported	$	11,637		$	11,782		$	11,827		$	9,562		$	11,008		(1	)	6		$	35,246		$	31,628		11
Fully taxable-equivalent adjustments (a)	562			635			613			1,297			874			(11	)	(36	)	1,810			2,720			(33	)
Pre-provision profit - managed	$	12,199		$	12,417		$	12,440		$	10,859		$	11,882		(2	)	3		$	37,056		$	34,348		8

INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported	$	10,689		$	10,572		$	10,662		$	8,254		$	9,556		1		12		$	31,923		$	27,646		15
Fully taxable-equivalent adjustments (a)	562			635			613			1,297			874			(11	)	(36	)	1,810			2,720			(33	)
Income before income tax expense - managed	$	11,251		$	11,207		$	11,275		$	9,551		$	10,430		—		8		$	33,733		$	30,366		11

INCOME TAX EXPENSE
Income tax expense - reported	$	2,309		$	2,256		$	1,950		$	4,022		$	2,824		2		(18	)	$	6,515		$	7,437		(12	)
Fully taxable-equivalent adjustments (a)	562			635			613			1,297			874			(11	)	(36	)	1,810			2,720			(33	)
Income tax expense - managed	$	2,871		$	2,891		$	2,563		$	5,319		$	3,698		(1	)	(22	)	$	8,325		$	10,157		(18	)

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

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

Page 7



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


	QUARTERLY TRENDS																			NINE MONTHS ENDED SEPTEMBER 30,
																3Q18 Change										2018 Change
	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		2018			2017			2017
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking	$	13,290		$	12,497		$	12,597		$	12,070		$	12,033		6	%	10	%	$	38,384		$	34,415		12	%
Corporate & Investment Bank	8,805			9,923			10,483			7,518			8,615			(11	)	2		29,211			27,139			8
Commercial Banking	2,271			2,316			2,166			2,353			2,146			(2	)	6		6,753			6,252			8
Asset & Wealth Management	3,559			3,572			3,506			3,638			3,472			—		3		10,637			10,197			4
Corporate	(103		)	80			(232		)	175			186			NM		NM		(255		)	965			NM
TOTAL NET REVENUE	$	27,822		$	28,388		$	28,520		$	25,754		$	26,452		(2	)	5		$	84,730		$	78,968		7

TOTAL NONINTEREST EXPENSE
Consumer & Community Banking	$	6,982		$	6,879		$	6,909		$	6,672		$	6,495		1		7		$	20,770		$	19,390		7
Corporate & Investment Bank	5,175			5,403			5,659			4,553			4,793			(4	)	8		16,237			14,854			9
Commercial Banking	853			844			844			912			800			1		7		2,541			2,415			5
Asset & Wealth Management	2,585			2,566			2,581			2,612			2,408			1		7		7,732			7,606			2
Corporate	28			279			87			146			74			(90	)	(62	)	394			355			11
TOTAL NONINTEREST EXPENSE	$	15,623		$	15,971		$	16,080		$	14,895		$	14,570		(2	)	7		$	47,674		$	44,620		7

PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking	$	6,308		$	5,618		$	5,688		$	5,398		$	5,538		12		14		$	17,614		$	15,025		17
Corporate & Investment Bank	3,630			4,520			4,824			2,965			3,822			(20	)	(5	)	12,974			12,285			6
Commercial Banking	1,418			1,472			1,322			1,441			1,346			(4	)	5		4,212			3,837			10
Asset & Wealth Management	974			1,006			925			1,026			1,064			(3	)	(8	)	2,905			2,591			12
Corporate	(131		)	(199		)	(319		)	29			112			34		NM		(649		)	610			NM
PRE-PROVISION PROFIT	$	12,199		$	12,417		$	12,440		$	10,859		$	11,882		(2	)	3		$	37,056		$	34,348		8

PROVISION FOR CREDIT LOSSES
Consumer & Community Banking	$	980		$	1,108		$	1,317		$	1,231		$	1,517		(12	)	(35	)	$	3,405		$	4,341		(22	)
Corporate & Investment Bank	(42		)	58			(158		)	130			(26		)	NM		(62	)	(142		)	(175		)	19
Commercial Banking	(15		)	43			(5		)	(62		)	(47		)	NM		68		23			(214		)	NM
Asset & Wealth Management	23			2			15			9			8			NM		188		40			30			33
Corporate	2			(1		)	(4		)	—			—			NM		NM		(3		)	—			NM
PROVISION FOR CREDIT LOSSES	$	948		$	1,210		$	1,165		$	1,308		$	1,452		(22	)	(35	)	$	3,323		$	3,982		(17	)

NET INCOME/(LOSS)
Consumer & Community Banking	$	4,086		$	3,412		$	3,326		$	2,631		$	2,553		20		60		$	10,824		$	6,764		60
Corporate & Investment Bank	2,626			3,198			3,974			2,316			2,546			(18	)	3		9,798			8,497			15
Commercial Banking	1,089			1,087			1,025			957			881			—		24		3,201			2,582			24
Asset & Wealth Management	724			755			770			654			674			(4	)	7		2,249			1,683			34
Corporate	(145		)	(136		)	(383		)	(2,326		)	78			(7	)	NM		(664		)	683			NM
TOTAL NET INCOME	$	8,380		$	8,316		$	8,712		$	4,232		$	6,732		1		24		$	25,408		$	20,209		26

Page 8



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

																		Sep 30, 2018
																		Change				NINE MONTHS ENDED SEPTEMBER 30,
	Sep 30,				Jun 30,			Mar 31,			Dec 31,			Sep 30,				Jun 30,		Sep 30,						2018 Change
	2018				2018			2018			2017			2017				2018		2017		2018		2017		2017
CAPITAL (a)
Risk-based capital metrics
Standardized Transitional
CET1 capital	$	184,984		(f)	$	184,708		$	183,655		$	183,300		$	187,061			—	%	(1	)%
Tier 1 capital	210,598			(f)	210,321			209,296			208,644			212,297				—		(1	)
Total capital	238,324			(f)	238,630			238,326			238,395			242,949				—		(2	)
Risk-weighted assets	1,547,326			(f)	1,543,370			1,552,952			1,499,506			1,500,658			(g)	—		3
CET1 capital ratio	12.0		%	(f)	12.0		%	11.8		%	12.2		%	12.5		%	(g)
Tier 1 capital ratio	13.6			(f)	13.6			13.5			13.9			14.1			(g)
Total capital ratio	15.4			(f)	15.5			15.3			15.9			16.2			(g)

Advanced Transitional
CET1 capital	$	184,984		(f)	$	184,708		$	183,655		$	183,300		$	187,061			—		(1	)
Tier 1 capital	210,598			(f)	210,321			209,296			208,644			212,297				—		(1	)
Total capital	228,693			(f)	229,027			228,320			227,933			232,794				—		(2	)
Risk-weighted assets	1,438,848			(f)	1,438,747			1,466,095			1,435,825			1,443,019				—		—
CET1 capital ratio	12.9		%	(f)	12.8		%	12.5		%	12.8		%	13.0		%
Tier 1 capital ratio	14.6			(f)	14.6			14.3			14.5			14.7
Total capital ratio	15.9			(f)	15.9			15.6			15.9			16.1

Leverage-based capital metrics
Adjusted average assets (b)	$	2,552,621		(f)	$	2,566,013		$	2,539,183		$	2,514,270		$	2,521,889			(1	)	1
Tier 1 leverage ratio	8.3		%	(f)	8.2		%	8.2		%	8.3		%	8.4		%

Total leverage exposure (c)	3,235,294			(f)	3,255,296			3,234,103			3,204,463			3,211,053				(1	)	1
SLR (c)	6.5		%	(f)	6.5		%	6.5		%	6.5		%	6.6		%

TANGIBLE COMMON EQUITY (period-end) (d)
Common stockholders’ equity	$	231,192			$	231,390		$	230,133		$	229,625		$	232,314			—		—
Less: Goodwill	47,483				47,488			47,499			47,507			47,309				—		—
Less: Other intangible assets	781				806			832			855			808				(3	)	(3	)
Add: Deferred tax liabilities (e)	2,239				2,227			2,216			2,204			3,271				1		(32	)
Total tangible common equity	$	185,167			$	185,323		$	184,018		$	183,467		$	187,468			—		(1	)

TANGIBLE COMMON EQUITY (average) (d)
Common stockholders’ equity	$	230,439			$	228,901		$	227,615		$	231,573		$	231,861			1		(1	)	$	228,995	$	229,937	—	%
Less: Goodwill	47,490				47,494			47,504			47,376			47,309				—		—		47,496		47,297		—
Less: Other intangible assets	795				822			845			820			818				(3	)	(3	)	820		836		(2	)
Add: Deferred tax liabilities (e)	2,233				2,221			2,210			2,738			3,262				1		(32	)	2,221		3,243		(32	)
Total tangible common equity	$	184,387			$	182,806		$	181,476		$	186,115		$	186,996			1		(1	)	$	182,900	$	185,047	(1	)

INTANGIBLE ASSETS (period-end)
Goodwill	$	47,483			$	47,488		$	47,499		$	47,507		$	47,309			—		—
Mortgage servicing rights	6,433				6,241			6,202			6,030			5,738				3		12
Other intangible assets	781				806			832			855			808				(3	)	(3	)
Total intangible assets	$	54,697			$	54,535		$	54,533		$	54,392		$	53,855			—		2

(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 82-91 of the 2017 Annual Report, and on pages 43–47 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018.


(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)	Effective January 1, 2018, the SLR was fully phased-in under Basel III. The SLR is defined as Tier 1 capital divided by the Firm’s total leverage exposure. Ratios prior to March 31, 2018 were calculated under the Basel III Transitional rules.


(d)	For further discussion of TCE, see pages 28–29.


(e)	Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in non-taxable transactions, which are netted against goodwill and other intangibles when calculating TCE.


(f)	Estimated.


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

Page 9



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

	QUARTERLY TRENDS																				NINE MONTHS ENDED SEPTEMBER 30,
																	3Q18 Change										2018 Change
	3Q18				2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		2018			2017			2017
EARNINGS PER SHARE
Basic earnings per share
Net income	$	8,380			$	8,316		$	8,712		$	4,232		$	6,732		1	%	24	%	$	25,408		$	20,209		26	%
Less: Preferred stock dividends	379				379			409			428			412			—		(8	)	1,167			1,235			(6	)
Net income applicable to common equity	8,001				7,937			8,303			3,804			6,320			1		27		24,241			18,974			28
Less: Dividends and undistributed earnings allocated to
participating securities	53				57			65			30			58			(7	)	(9	)	174			188			(7	)
Net income applicable to common stockholders	$	7,948			$	7,880		$	8,238		$	3,774		$	6,262		1		27		$	24,067		$	18,786		28

Total weighted-average basic shares outstanding	3,376.1				3,415.2			3,458.3			3,489.7			3,534.7			(1	)	(4	)	3,416.5			3,570.9			(4	)
Net income per share	$	2.35			$	2.31		$	2.38		$	1.08		$	1.77		2		33		$	7.04		$	5.26		34

Diluted earnings per share
Net income applicable to common stockholders	$	7,948			$	7,880		$	8,238		$	3,774		$	6,262		1		27		$	24,067		$	18,786		28
Total weighted-average basic shares outstanding	3,376.1				3,415.2			3,458.3			3,489.7			3,534.7			(1	)	(4	)	3,416.5			3,570.9			(4	)
Add: Employee stock options, stock appreciation rights (“SARs”), warrants and unvested performance share units (“PSUs”)	18.2				19.5			21.2			22.5			24.9			(7	)	(27	)	19.7			26.1			(25	)
Total weighted-average diluted shares outstanding	3,394.3				3,434.7			3,479.5			3,512.2			3,559.6			(1	)	(5	)	3,436.2			3,597.0			(4	)
Net income per share	$	2.34			$	2.29		$	2.37		$	1.07		$	1.76		2		33		$	7.00		$	5.22		34

COMMON DIVIDENDS
Cash dividends declared per share	$	0.80		(c)	$	0.56		$	0.56		$	0.56		$	0.56		43		43		$	1.92		$	1.56		23
Dividend payout ratio	34		%		24		%	23		%	51		%	31		%					27		%	29		%

COMMON EQUITY REPURCHASE PROGRAM (a)
Total shares of common stock repurchased	39.3				45.3			41.4			47.8			51.7			(13	)	(24	)	126.0			118.8			6
Average price paid per share of common stock	$	112.41			$	109.67		$	112.78		$	100.74		$	92.02		2		22		$	111.55		$	89.22		25
Aggregate repurchases of common equity	4,416				4,968			4,671			4,808			4,763			(11	)	(7	)	14,055			10,602			33

EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans	1.0				0.6			19.8			2.5			0.9			67		11		21.4			22.8			(6	)
Net impact of employee issuances on stockholders’ equity (b)	$	244			$	272		$	(69	)	$	92		$	238		(10	)	3		$	447		$	537		(17	)


(a)	On June 28, 2018, the Firm announced that it is authorized to repurchase up to $20.7 billion of common equity between July 1, 2018 and June 30, 2019, under a new equity repurchase program.


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


(c)	On September 18, 2018, the Board of Directors increased the quarterly common stock dividend from $0.56 to $0.80 per share.

Page 10



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


	QUARTERLY TRENDS																			NINE MONTHS ENDED SEPTEMBER 30,
																3Q18 Change										2018 Change
	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		2018			2017			2017
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	936		$	875		$	857		$	884		$	885		7	%	6	%	$	2,668		$	2,547		5	%
Asset management, administration and commissions	626			591			575			568			543			6		15		1,792			1,644			9
Mortgage fees and related income	260			324			465			378			428			(20	)	(39	)	1,049			1,235			(15	)
Card income	1,219			910			1,170			1,005			1,141			34		7		3,299			3,019			9
All other income	1,135			1,048			1,072			976			901			8		26		3,255			2,454			33
Noninterest revenue	4,176			3,748			4,139			3,811			3,898			11		7		12,063			10,899			11
Net interest income	9,114			8,749			8,458			8,259			8,135			4		12		26,321			23,516			12
TOTAL NET REVENUE	13,290			12,497			12,597			12,070			12,033			6		10		38,384			34,415			12

Provision for credit losses	980			1,108			1,317			1,231			1,517			(12	)	(35	)	3,405			4,341			(22	)

NONINTEREST EXPENSE
Compensation expense (a)	2,635			2,621			2,660			2,555			2,548			1		3		7,916			7,578			4
Noncompensation expense (a)(b)	4,347			4,258			4,249			4,117			3,947			2		10		12,854			11,812			9
TOTAL NONINTEREST EXPENSE	6,982			6,879			6,909			6,672			6,495			1		7		20,770			19,390			7

Income before income tax expense	5,328			4,510			4,371			4,167			4,021			18		33		14,209			10,684			33
Income tax expense	1,242			1,098			1,045			1,536			1,468			13		(15	)	3,385			3,920			(14	)
NET INCOME	$	4,086		$	3,412		$	3,326		$	2,631		$	2,553		20		60		$	10,824		$	6,764		60

REVENUE BY LINE OF BUSINESS
Consumer & Business Banking	$	6,385		$	6,131		$	5,722		$	5,557		$	5,408		4		18		$	18,238		$	15,547		17
Home Lending	1,306			1,347			1,509			1,442			1,558			(3	)	(16	)	4,162			4,513			(8	)
Card, Merchant Services & Auto	5,599			5,019			5,366			5,071			5,067			12		10		15,984			14,355			11

MORTGAGE FEES AND RELATED INCOME DETAILS:
Net production revenue	108			93			95			185			158			16		(32	)	296			451			(34	)
Net mortgage servicing revenue (c)	152			231			370			193			270			(34	)	(44	)	753			784			(4	)
Mortgage fees and related income	$	260		$	324		$	465		$	378		$	428		(20	)	(39	)	$	1,049		$	1,235		(15	)

FINANCIAL RATIOS
ROE	31		%	26		%	25		%	19		%	19		%					27		%	17		%
Overhead ratio	53			55			55			55			54							54			56


(a)	Effective in the first quarter of 2018, certain operations staff were transferred from CCB to CB. The prior period amounts have been revised to conform with the current period presentation. For further discussion of this transfer, see page 18, footnote (c).


(b)	Included operating lease depreciation expense of $862 million, $827 million, $777 million, $726 million and $688 million for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017, and September 30, 2017, respectively, and $2.5 billion and $1.9 billion for the nine months ended September 30, 2018, and 2017, respectively.


(c)	Included MSR risk management results of $(88) million, $(23) million, $17 million, $(110) million and $(23) million for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017, and September 30, 2017, respectively, and

$(94) million and $(132) million for the nine months ended September 30, 2018, and 2017, respectively.

Page 11



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

	QUARTERLY TRENDS														NINE MONTHS ENDED SEPTEMBER 30,
											3Q18 Change								2018 Change
	3Q18		2Q18		1Q18		4Q17		3Q17		2Q18		3Q17		2018		2017		2017
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	560,432	$	552,674	$	540,659	$	552,601	$	537,459	1	%	4	%	$	560,432	$	537,459	4	%

Loans:
Consumer & Business Banking	26,451		26,272		25,856		25,789		25,275		1		5		26,451		25,275		5
Home equity	37,461		39,033		40,777		42,751		44,542		(4	)	(16	)	37,461		44,542		(16	)
Residential mortgage	205,389		202,205		199,548		197,339		195,134		2		5		205,389		195,134		5
Home Lending	242,850		241,238		240,325		240,090		239,676		1		1		242,850		239,676		1
Card	147,881		145,255		140,414		149,511		141,313		2		5		147,881		141,313		5
Auto	63,619		65,014		66,042		66,242		65,102		(2	)	(2	)	63,619		65,102		(2	)
Student	—		—		—		—		47		—		NM		—		47		NM
Total loans	480,801		477,779		472,637		481,632		471,413		1		2		480,801		471,413		2
Core loans	425,917		419,295		409,296		415,167		401,648		2		6		425,917		401,648		6

Deposits	677,260		679,154		685,170		659,885		653,460		—		4		677,260		653,460		4
Equity	51,000		51,000		51,000		51,000		51,000		—		—		51,000		51,000		—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	551,080	$	544,642	$	538,938	$	538,311	$	531,959	1		4		$	544,931	$	530,884	3

Loans:
Consumer & Business Banking	26,351		26,110		25,845		25,234		25,166		1		5		26,104		24,753		5
Home equity	38,211		39,898		41,786		43,624		45,424		(4	)	(16	)	39,951		47,333		(16	)
Residential mortgage	204,689		201,587		198,653		197,032		192,805		2		6		201,665		187,954		7
Home Lending	242,900		241,485		240,439		240,656		238,229		1		2		241,616		235,287		3
Card	146,272		142,724		142,927		143,500		141,172		2		4		143,986		138,852		4
Auto	64,060		65,383		65,863		65,616		65,175		(2	)	(2	)	65,096		65,321		—
Student	—		—		—		12		58		—		NM		—		3,847		NM
Total loans	479,583		475,702		475,074		475,018		469,800		1		2		476,802		468,060		2
Core loans	422,582		414,120		410,147		406,935		398,319		2		6		415,662		389,103		7

Deposits	674,211		673,761		659,599		651,976		645,732		—		4		669,244		636,257		5
Equity	51,000		51,000		51,000		51,000		51,000		—		—		51,000		51,000		—

Headcount (a)(b)	129,891		131,945		133,408		133,721		134,151		(2	)	(3	)	129,891		134,151		(3	)


(a)	Effective in the first quarter of 2018, certain operations staff were transferred from CCB to CB. The prior period amounts have been revised to conform with the current period presentation. For further discussion of this transfer, see page 18, footnote (c).


(b)	During the third quarter of 2018 approximately 1,200 employees transferred from CCB to CIB as part of the reorganization of the commercial card business.

Page 12



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)	QUARTERLY TRENDS																							NINE MONTHS ENDED SEPTEMBER 30,
																				3Q18 Change												2018 Change
	3Q18				2Q18				1Q18			4Q17				3Q17				2Q18		3Q17		2018				2017				2017
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)	$	3,520			$	3,854			$	4,104		$	4,084			$	4,068			(9	)%	(13	)%	$	3,520			$	4,068			(13	)%
Net charge-offs/(recoveries) (c)
Consumer & Business Banking	68				50				53			73				71				36		(4	)	171				184				(7	)
Home equity	(12		)		(7		)		16			(4		)		13				(71	)	NM		(3		)		67				NM
Residential mortgage	(105		)		(149		)		2			(13		)		(2		)		30		NM		(252		)		(3		)		NM
Home Lending	(117		)		(156		)		18			(17		)		11				25		NM		(255		)		64				NM
Card	1,073				1,164				1,170			1,074				1,019				(8	)	5		3,407				3,049				12
Auto	56				50				76			86				116				12		(52	)	182				245				(26	)
Student	—				—				—			—				—				—		—		—				498			(h)	NM
Total net charge-offs/(recoveries)	$	1,080			$	1,108			$	1,317		$	1,216			$	1,217		(g)	(3	)	(11	)	$	3,505			$	4,040		(h)	(13	)
Net charge-off/(recovery) rate (c)
Consumer & Business Banking	1.02			%	0.77			%	0.83		%	1.15			%	1.12			%					0.88			%	0.99			%
Home equity (d)	(0.17		)		(0.09		)		0.21			(0.05		)		0.15								(0.01		)		0.25
Residential mortgage (d)	(0.22		)		(0.33		)		—			(0.03		)		—								(0.18		)		—
Home Lending (d)	(0.21		)		(0.29		)		0.03			(0.03		)		0.02								(0.16		)		0.04
Card	2.91				3.27				3.32			2.97				2.87								3.16				2.94
Auto	0.35				0.31				0.47			0.52				0.71								0.37				0.50
Student	—				—				—			—				—								—				NM
Total net charge-off/(recovery) rate (d)	0.95				1.00				1.20			1.09				1.10			(g)					1.05				1.25			(h)

30+ day delinquency rate
Home Lending (e)(f)	0.81			%	0.86			%	0.98		%	1.19			%	1.03			%					0.81			%	1.03			%
Card	1.75				1.65				1.82			1.80				1.76								1.75				1.76
Auto	0.82				0.77				0.71			0.89				0.93								0.82				0.93
90+ day delinquency rate - Card	0.85				0.85				0.95			0.92				0.86								0.85				0.86

Allowance for loan losses
Consumer & Business Banking	$	796			$	796			$	796		$	796			$	796			—		—		$	796			$	796			—
Home Lending, excluding PCI loans	1,003				1,003				1,003			1,003				1,153				—		(13	)	1,003				1,153				(13	)
Home Lending - PCI loans (c)	1,824				2,132				2,205			2,225				2,245				(14	)	(19	)	1,824				2,245				(19	)
Card	5,034				4,884				4,884			4,884				4,684				3		7		5,034				4,684				7
Auto	464				464				464			464				499				—		(7	)	464				499				(7	)
Total allowance for loan losses (c)	$	9,121			$	9,279			$	9,352		$	9,372			$	9,377			(2	)	(3	)	$	9,121			$	9,377			(3	)

Note : CCB provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, see pages 28–29.


(a)	Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as each of the pools is performing.


(b)	At September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $2.9 billion, $3.3 billion, $4.0 billion, $4.3 billion, and $4.0 billion, respectively. 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 September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, excluded write-offs in the PCI portfolio of $58 million, $73 million, $20 million, $20 million and $20 million, respectively, and for the nine months ended September 30, 2018 and 2017 excluded $151 million and $66 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 September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of (0.12)%, (0.07)%, 0.16%, (0.04)% and 0.11%, respectively; (2) residential mortgage of (0.20)%, (0.30)%, –%, (0.03)%, and –%, respectively; (3) Home Lending of (0.19)%, (0.26)%, 0.03%, (0.03)% and 0.02%, respectively; and (4) total CCB of 0.89%, 0.93%, 1.12%, 1.02% and 1.03%, respectively. For the nine months ended September 30, 2018 and 2017, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of (0.01)% and 0.19%, respectively; (2) residential mortgage of (0.17)% and –%, respectively; (3) Home Lending of (0.14)% and 0.04%, respectively; and (4) total CCB of 0.98% and 1.16%, respectively.


(e)	At September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, excluded mortgage loans insured by U.S. government agencies of $4.5 billion, $5.0 billion, $5.7 billion, $6.2 billion and $5.9 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 9.39%, 9.40%, 9.49%, 10.13% and 9.30% at September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, 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 sale, the total net charge-off rate for the nine months ended September 30, 2017 would have been 1.10%.

Page 13



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

	QUARTERLY TRENDS																								NINE MONTHS ENDED SEPTEMBER 30,
																					3Q18 Change												2018 Change
	3Q18				2Q18				1Q18				4Q17				3Q17				2Q18		3Q17		2018				2017				2017
BUSINESS METRICS
Number of:
Branches	5,066				5,091				5,106				5,130				5,174				—	%	(2	)%	5,066				5,174				(2	)%
Active digital customers (in thousands) (a)	48,664				47,952				47,911				46,694				46,349				1		5		48,664				46,349				5
Active mobile customers (in thousands) (b)	32,538				31,651				30,924				30,056				29,273				3		11		32,538				29,273				11

Debit and credit card sales volume (in billions)	$	259.0			$	255.0			$	232.4			$	245.1			$	231.1			2		12		$	746.4			$	671.8			11

Consumer & Business Banking
Average deposits	$	659,513			$	659,772			$	646,400			$	637,160			$	630,351			—		5		$	655,276			$	621,667			5
Deposit margin	2.43			%	2.36			%	2.20			%	2.06			%	2.02			%					2.33			%	1.95			%
Business banking origination volume	$	1,629			$	1,921			$	1,656			$	1,798			$	1,654			(15	)	(2	)	$	5,206			$	5,550			(6	)
Client investment assets	298,405				283,731				276,183				273,325				262,513				5		14		298,405				262,513				14

Home Lending (in billions)
Mortgage origination volume by channel
Retail	$	10.6			$	10.4			$	8.3			$	11.0			$	10.6			2		—		$	29.3			$	29.3			—
Correspondent	11.9				11.1				9.9				13.4				16.3				7		(27	)	32.9				43.9				(25	)
Total mortgage origination volume (c)	$	22.5			$	21.5			$	18.2			$	24.4			$	26.9			5		(16	)	$	62.2			$	73.2			(15	)
Total loans serviced (period-end)	$	798.6			$	802.6			$	804.9			$	816.1			$	821.6			—		(3	)	$	798.6			$	821.6			(3	)
Third-party mortgage loans serviced (period-end)	526.5				533.0				539.0				553.5				556.9				(1	)	(5	)	526.5				556.9				(5	)
MSR carrying value (period-end)	6.4				6.2				6.2				6.0				5.7				3		12		6.4				5.7				12
Ratio of MSR carrying value (period-end) to third-party
mortgage loans serviced (period-end)	1.22			%	1.16			%	1.15			%	1.08			%	1.02			%					1.22			%	1.02			%
MSR revenue multiple (d)	3.49		x		3.31		x		3.19		x		3.09		x		2.91		x						3.49		x		2.91		x

Card, excluding Commercial Card
Credit card sales volume (in billions)	$	176.0			$	174.0			$	157.1			$	168.0			$	157.7			1		12		$	507.1			$	454.2			12
New accounts opened	1.9				1.9				2.0				1.9				1.9				—		—		5.8				6.5				(11	)

Card Services
Net revenue rate	11.50			%	10.38			%	11.61			%	10.64			%	10.95			%					11.17			%	10.55			%

Merchant Services
Merchant processing volume (in billions)	$	343.8			$	330.8			$	316.3			$	321.4			$	301.6			4		14		$	990.9			$	870.3			14

Auto
Loan and lease origination volume (in billions)	$	8.1			$	8.3			$	8.4			$	8.2			$	8.8			(2	)	(8	)	$	24.8			$	25.1			(1	)
Average auto operating lease assets	19,176				18,407				17,582				16,630				15,641				4		23		18,394				14,715				25


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


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


(c)	Firmwide mortgage origination volume was $24.5 billion, $23.7 billion, $20.0 billion, $26.6 billion and $29.2 billion for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, respectively, and $68.2 billion and $81.0 billion for the nine months ended September 30, 2018, and 2017, respectively.


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

Page 14



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
	QUARTERLY TRENDS																					NINE MONTHS ENDED SEPTEMBER 30,
																		3Q18 Change										2018 Change
	3Q18			2Q18			1Q18				4Q17				3Q17			2Q18		3Q17		2018			2017			2017
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,823		$	2,139		$	1,696			$	1,798			$	1,844		(15	)%	(1	)%	$	5,658		$	5,558		2	%
Principal transactions	3,091			3,666			4,029				1,765				2,673			(16	)	16		10,786			9,108			18
Lending- and deposit-related fees	373			382			381				382				374			(2	)	—		1,136			1,149			(1	)
Asset management, administration and commissions	1,130			1,155			1,131				1,046				1,041			(2	)	9		3,416			3,161			8
All other income	88			190			680			(c)	(50		)		187			(54	)	(53	)	958			622			54
Noninterest revenue	6,505			7,532			7,917				4,941				6,119			(14	)	6		21,954			19,598			12
Net interest income	2,300			2,391			2,566				2,577				2,496			(4	)	(8	)	7,257			7,541			(4	)
TOTAL NET REVENUE (a)	8,805			9,923			10,483				7,518			(d)	8,615			(11	)	2		29,211			27,139			8

Provision for credit losses	(42		)	58			(158		)		130				(26		)	NM		(62	)	(142		)	(175		)	19

NONINTEREST EXPENSE
Compensation expense	2,402			2,720			3,036				1,997				2,284			(12	)	5		8,158			7,534			8
Noncompensation expense	2,773			2,683			2,623				2,556				2,509			3		11		8,079			7,320			10
TOTAL NONINTEREST EXPENSE	5,175			5,403			5,659				4,553				4,793			(4	)	8		16,237			14,854			9

Income before income tax expense	3,672			4,462			4,982				2,835				3,848			(18	)	(5	)	13,116			12,460			5
Income tax expense	1,046			1,264			1,008				519				1,302			(17	)	(20	)	3,318			3,963			(16	)
NET INCOME	$	2,626		$	3,198		$	3,974			$	2,316		(d)	$	2,546		(18	)	3		$	9,798		$	8,497		15

FINANCIAL RATIOS
ROE	14		%	17		%	22		%		12		%		13		%					18		%	15		%
Overhead ratio	59			54			54				61				56							56			55
Compensation expense as percentage of total net revenue	27			27			29				27				27							28			28

REVENUE BY BUSINESS
Investment Banking	$	1,731		$	1,949		$	1,587			$	1,677			$	1,730		(11	)	—		$	5,267		$	5,175		2
Treasury Services	1,183			1,181			1,116				1,078				1,058			—		12		3,480			3,094			12
Lending	331			321			302				336				331			3		—		954			1,093			(13	)
Total Banking	3,245			3,451			3,005				3,091				3,119			(6	)	4		9,701			9,362			4
Fixed Income Markets	2,844			3,453			4,553				2,217				3,164			(18	)	(10	)	10,850			10,595			2
Equity Markets	1,595			1,959			2,017				1,148				1,363			(19	)	17		5,571			4,555			22
Securities Services	1,057			1,103			1,059				1,012				1,007			(4	)	5		3,219			2,905			11
Credit Adjustments & Other (b)	64			(43		)	(151		)		50				(38		)	NM		NM		(130		)	(278		)	53
Total Markets & Investor Services	5,560			6,472			7,478			(c)	4,427				5,496			(14	)	1		19,510			17,777			10
TOTAL NET REVENUE	$	8,805		$	9,923		$	10,483			$	7,518		(d)	$	8,615		(11	)	2		$	29,211		$	27,139		8

(a)

Included tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; as well as tax-exempt income from municipal bonds of $354 million, $428 million, $405 million, $756 million and $505 million for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017, and September 30, 2017, respectively and $1.2 billion and $1.6 billion for the nine months ended September 30, 2018 and 2017, respectively.


(b)	Consists primarily of credit valuation adjustments (“CVA”) managed centrally within CIB and funding valuation adjustments (“FVA”) 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.


(c)	The three months ended March 31, 2018 included $505 million of fair value gains related to the adoption of the recognition and measurement accounting guidance for certain equity investments previously held at cost.


(d)	The three months ended December 31, 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.

Page 15



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
	QUARTERLY TRENDS																			NINE MONTHS ENDED SEPTEMBER 30,
																3Q18 Change										2018 Change
	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		2018			2017			2017
SELECTED BALANCE SHEET DATA (period-end)
Assets	$	928,148		$	908,954		$	909,845		$	826,384		$	851,808		2	%	9	%	$	928,148		$	851,808		9	%
Loans:
Loans retained (a)	117,084			116,645			112,626			108,765			106,955			—		9		117,084			106,955			9
Loans held-for-sale and loans at fair value	6,133			6,254			6,122			4,321			3,514			(2	)	75		6,133			3,514			75
Total loans	123,217			122,899			118,748			113,086			110,469			—		12		123,217			110,469			12
Core loans	122,953			122,574			118,434			112,754			110,133			—		12		122,953			110,133			12

Equity	70,000			70,000			70,000			70,000			70,000			—		—		70,000			70,000			—

SELECTED BALANCE SHEET DATA (average)
Assets	$	924,909		$	937,217		$	910,146		$	866,293		$	858,912		(1	)	8		924,145			$	853,948		8
Trading assets - debt and equity instruments	349,390			358,611			354,869			338,836			349,448			(3	)	—		354,270			343,232			3
Trading assets - derivative receivables	62,025			60,623			60,161			56,140			55,875			2		11		60,943			56,575			8
Loans:
Loans retained (a)	115,390			113,950			109,355			107,263			107,829			1		7		112,921			108,741			4
Loans held-for-sale and loans at fair value	7,328			5,961			5,480			4,224			4,674			23		57		6,263			5,254			19
Total loans	122,718			119,911			114,835			111,487			112,503			2		9		119,184			113,995			5
Core loans	122,442			119,637			114,514			111,152			112,168			2		9		118,877			113,631			5

Equity	70,000			70,000			70,000			70,000			70,000			—		—		70,000			70,000			—

Headcount (b)	54,052			51,400			51,291			51,181			50,641			5		7		54,052			50,641			7

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	(40	)	$	114		$	20		$	22		$	20		NM		NM		$	94		$	49		92
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (c)	318			352			668			812			437			(10	)	(27	)	318			437			(27	)
Nonaccrual loans held-for-sale and loans at fair value	9			175			29			—			2			(95	)	350		9			2			350
Total nonaccrual loans	327			527			697			812			439			(38	)	(26	)	327			439			(26	)

Derivative receivables	90			112			132			130			164			(20	)	(45	)	90			164			(45	)
Assets acquired in loan satisfactions	61			104			91			85			92			(41	)	(34	)	61			92			(34	)
Total nonperforming assets	478			743			920			1,027			695			(36	)	(31	)	478			695			(31	)
Allowance for credit losses:
Allowance for loan losses	1,068			1,043			1,128			1,379			1,253			2		(15	)	1,068			1,253			(15	)
Allowance for lending-related commitments	802			828			800			727			745			(3	)	8		802			745			8
Total allowance for credit losses	1,870			1,871			1,928			2,106			1,998			—		(6	)	1,870			1,998			(6	)

Net charge-off/(recovery) rate (a)(d)	(0.14		)%	0.40		%	0.07		%	0.08		%	0.07		%					0.11		%	0.06		%
Allowance for loan losses to period-end loans retained (a)	0.91			0.89			1.00			1.27			1.17							0.91			1.17
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (e)	1.27			1.27			1.46			1.92			1.79							1.27			1.79
Allowance for loan losses to nonaccrual loans retained (a)(c)	336			296			169			170			287							336			287
Nonaccrual loans to total period-end loans	0.27			0.43			0.59			0.72			0.40							0.27			0.40


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


(b)	During the third quarter of 2018 approximately 1,200 employees transferred from CCB to CIB as part of the reorganization of the commercial card business.


(c)	Allowance for loan losses of $145 million, $141 million, $298 million, $316 million and $177 million were held against nonaccrual loans at September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017, and September 30, 2017, respectively.


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


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

Page 16



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
	QUARTERLY TRENDS																			NINE MONTHS ENDED SEPTEMBER 30,
																3Q18 Change								2018 Change
	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		2018		2017		2017
BUSINESS METRICS
Advisory	$	581		$	626		$	575		$	526		$	620		(7	)%	(6	)%	$	1,782	$	1,624	10	%
Equity underwriting	420			570			346			361			300			(26	)	40		1,336		1,107		21
Debt underwriting	822			943			775			911			924			(13	)	(11	)	2,540		2,827		(10	)
Total investment banking fees	$	1,823		$	2,139		$	1,696		$	1,798		$	1,844		(15	)	(1	)	$	5,658	$	5,558	2

Assets under custody (“AUC”) (period-end) (in billions)	$	24,403		$	24,184		$	24,026		$	23,469		$	22,738		1		7		$	24,403	$	22,738	7

Client deposits and other third-party liabilities (average) (a)	434,847			433,646			423,301			417,003			421,588			—		3		430,640		406,184		6

95% Confidence Level - Total CIB VaR (average)
CIB trading VaR by risk type: (b)
Fixed income	$	30		$	31		$	34		$	28		$	28		(3	)	7
Foreign exchange	5			6			9			7			13			(17	)	(62	)
Equities	16			15			17			14			12			7		33
Commodities and other	9			7			5			6			6			29		50
Diversification benefit to CIB trading VaR (c)	(27		)	(27		)	(25		)	(24		)	(31		)	—		13
CIB trading VaR (b)	33			32			40			31			28			3		18
Credit portfolio VaR (d)	3			4			3			4			5			(25	)	(40	)
Diversification benefit to CIB VaR (c)	(3		)	(3		)	(3		)	(3		)	(3		)	—		—
CIB VaR	$	33		$	33		$	40		$	32		$	30		—		10


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


(b)	CIB trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in CIB, including credit spread sensitivity to CVA. For further information, see VaR measurement on pages 123–125 of the 2017 Annual Report, and pages 71-73 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018.


(c)	Average portfolio VaR was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated.


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

Page 17



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


	QUARTERLY TRENDS																							NINE MONTHS ENDED SEPTEMBER 30,
																				3Q18 Change											2018 Change
	3Q18				2Q18			1Q18				4Q17				3Q17				2Q18		3Q17		2018			2017				2017
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	216			$	224		$	226			$	229			$	223			(4	)%	(3	)%	$	666		$	690			(3	)%
Asset management, administration and commissions	18				16			18				18				16				13		13		52			50				4
All other income (a)	342				393			305				501				353				(13	)	(3	)	1,040			1,034				1
Noninterest revenue	576				633			549				748				592				(9	)	(3	)	1,758			1,774				(1	)
Net interest income	1,695				1,683			1,617				1,605				1,554				1		9		4,995			4,478				12
TOTAL NET REVENUE (b)	2,271				2,316			2,166				2,353				2,146				(2	)	6		6,753			6,252				8

Provision for credit losses	(15		)		43			(5		)		(62		)		(47		)		NM		68		23			(214		)		NM

NONINTEREST EXPENSE
Compensation expense (c)	432				415			421				378				386				4		12		1,268			1,156				10
Noncompensation expense (c)	421				429			423				534				414				(2	)	2		1,273			1,259				1
TOTAL NONINTEREST EXPENSE	853				844			844				912				800				1		7		2,541			2,415				5

Income before income tax expense	1,433				1,429			1,327				1,503				1,393				—		3		4,189			4,051				3
Income tax expense	344				342			302				546				512				1		(33	)	988			1,469				(33	)
NET INCOME	$	1,089			$	1,087		$	1,025			$	957			$	881			—		24		$	3,201		$	2,582			24

Revenue by product
Lending	$	1,027			$	1,026		$	999			$	1,049			$	1,030			—		—		$	3,052		$	3,045			—
Treasury services	1,021				1,026			972				921				873				—		17		3,019			2,523				20
Investment banking (d)	206				254			184				204				196				(19	)	5		644			601				7
Other	17				10			11				179				47				70		(64	)	38			83				(54	)
Total Commercial Banking net revenue (b)	$	2,271			$	2,316		$	2,166			$	2,353			$	2,146			(2	)	6		$	6,753		$	6,252			8

Investment banking revenue, gross (e)	$	581			$	739		$	569			$	608			$	578			(21	)	1		$	1,889		$	1,777			6

Revenue by client segment
Middle Market Banking	$	935			$	919		$	895			$	870			$	848			2		10		$	2,749		$	2,471			11
Corporate Client Banking	749				807			687				711				688				(7	)	9		2,243			2,016				11
Commercial Term Lending	339				344			352				356				367				(1	)	(8	)	1,035			1,098				(6	)
Real Estate Banking	175				170			164				166				157				3		11		509			438				16
Other	73				76			68				250				86				(4	)	(15	)	217			229				(5	)
Total Commercial Banking net revenue (b)	$	2,271			$	2,316		$	2,166			$	2,353			$	2,146			(2	)	6		$	6,753		$	6,252			8

FINANCIAL RATIOS
ROE	21			%	21		%	20			%	18			%	17			%					20		%	16			%
Overhead ratio	38				36			39				39				37								38			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 $107 million, $106 million, $103 million, $304 million and $143 million for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017, and September 30, 2017, respectively and $316 million and $395 million for the nine months ended September 30, 2018 and 2017, respectively. The three months ended December 31, 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)

Effective in the first quarter of 2018, certain operations and compliance staff were transferred from CCB and Corporate, respectively, to CB. As a result, expense for this staff is now reflected in CB’s compensation expense with a corresponding adjustment for expense allocations reflected in noncompensation expense. CB’s, Corporate’s and CCB’s previously reported headcount, compensation expense and noncompensation expense have been revised to reflect this transfer.


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


(e)	Represents total Firm revenue from investment banking products sold to CB clients. As a result of the adoption of the revenue recognition guidance 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																				NINE MONTHS ENDED SEPTEMBER 30,
																	3Q18 Change										2018 Change
	3Q18				2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		2018			2017			2017
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	217,194			$	220,232		$	220,880		$	221,228		$	220,064		(1	)%	(1	)%	$	217,194		$	220,064		(1	)%
Loans:
Loans retained	205,177				205,834			202,812			202,400			201,463			—		2		205,177			201,463			2
Loans held-for-sale and loans at fair value	405				1,576			2,473			1,286			764			(74	)	(47	)	405			764			(47	)
Total loans	$	205,582			$	207,410		$	205,285		$	203,686		$	202,227		(1	)	2		$	205,582		$	202,227		2
Core loans	205,418				207,238			205,087			203,469			201,999			(1	)	2		205,418			201,999			2
Equity	20,000				20,000			20,000			20,000			20,000			—		—		20,000			20,000			—

Period-end loans by client segment
Middle Market Banking	$	57,324			$	58,301		$	57,835		$	56,965		$	56,192		(2	)	2		$	57,324		$	56,192		2
Corporate Client Banking	46,890				48,885			47,562			46,963			47,682			(4	)	(2	)	46,890			47,682			(2	)
Commercial Term Lending	76,201				75,621			75,052			74,901			74,349			1		2		76,201			74,349			2
Real Estate Banking	18,013				17,458			17,709			17,796			17,127			3		5		18,013			17,127			5
Other	7,154				7,145			7,127			7,061			6,877			—		4		7,154			6,877			4
Total Commercial Banking loans	$	205,582			$	207,410		$	205,285		$	203,686		$	202,227		(1	)	2		$	205,582		$	202,227		2

SELECTED BALANCE SHEET DATA (average)
Total assets	$	219,232			$	218,396		$	217,159		$	218,452		$	218,196		—		—		$	218,270		$	216,574		1
Loans:
Loans retained	205,603				204,239			201,966			201,948			199,487			1		3		203,950			195,604			4
Loans held-for-sale and loans at fair value	1,617				1,381			406			844			675			17		140		1,139			931			22
Total loans	$	207,220			$	205,620		$	202,372		$	202,792		$	200,162		1		4		$	205,089		$	196,535		4
Core loans	207,052				205,440			202,161			202,569			199,920			1		4		204,902			196,254			4
Client deposits and other third-party liabilities	168,169				170,745			175,618			181,815			176,218			(2	)	(5	)	171,483			175,402			(2	)
Equity	20,000				20,000			20,000			20,000			20,000			—		—		20,000			20,000			—

Average loans by client segment
Middle Market Banking	$	57,258			$	57,346		$	56,754		$	56,170		$	55,782		—		3		$	57,121		$	55,239		3
Corporate Client Banking	49,004				48,150			45,760			47,585			46,451			2		5		47,650			45,516			5
Commercial Term Lending	75,919				75,307			74,942			74,577			74,136			1		2		75,393			73,041			3
Real Estate Banking	17,861				17,614			17,845			17,474			16,936			1		5		17,774			16,205			10
Other	7,178				7,203			7,071			6,986			6,857			—		5		7,151			6,534			9
Total Commercial Banking loans	$	207,220			$	205,620		$	202,372		$	202,792		$	200,162		1		4		$	205,089		$	196,535		4

Headcount (a)	10,937				10,579			10,372			10,061			10,014			3		9		10,937			10,014			9

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	(18	)		$	34		$	—		$	22		$	19		NM		NM		$	16		$	17		(6	)
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (b)	452				546			666			617			744			(17	)	(39	)	452			744			(39	)
Nonaccrual loans held-for-sale and loans
at fair value	5				—			—			—			—			NM		NM		5			—			NM
Total nonaccrual loans	457				546			666			617			744			(16	)	(39	)	457			744			(39	)

Assets acquired in loan satisfactions	2				2			1			3			3			—		(33	)	2			3			(33	)
Total nonperforming assets	459				548			667			620			747			(16	)	(39	)	459			747			(39	)
Allowance for credit losses:
Allowance for loan losses	2,619				2,622			2,591			2,558			2,620			—		—		2,619			2,620			—
Allowance for lending-related commitments	249				243			263			300			323			2		(23	)	249			323			(23	)
Total allowance for credit losses	2,868				2,865			2,854			2,858			2,943			—		(3	)	2,868			2,943			(3	)

Net charge-off/(recovery) rate (c)	(0.03		)	%	0.07		%	—		%	0.04		%	0.04		%					0.01		%	0.01		%
Allowance for loan losses to period-end loans retained	1.28				1.27			1.28			1.26			1.30							1.28			1.30
Allowance for loan losses to nonaccrual loans retained (b)	579				480			389			415			352							579			352
Nonaccrual loans to period-end total loans	0.22				0.26			0.32			0.30			0.37							0.22			0.37


(a)	Effective in the first quarter of 2018, certain operations and compliance staff were transferred from CCB and Corporate, respectively, to CB. The prior period amounts have been revised to conform with the current period presentation. For further discussion of this transfer, see page 18, footnote (c).


(b)	Allowance for loan losses of $105 million, $126 million, $116 million, $92 million and $128 million was held against nonaccrual loans retained at September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017, and September 30, 2017, 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																			NINE MONTHS ENDED SEPTEMBER 30,
																3Q18 Change										2018 Change
	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		2018			2017			2017
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	2,563		$	2,532		$	2,528		$	2,651		$	2,466		1	%	4	%	$	7,623		$	7,205		6	%
All other income	117			155			102			128			151			(25	)	(23	)	374			472			(21	)
Noninterest revenue	2,680			2,687			2,630			2,779			2,617			—		2		7,997			7,677			4
Net interest income	879			885			876			859			855			(1	)	3		2,640			2,520			5
TOTAL NET REVENUE	3,559			3,572			3,506			3,638			3,472			—		3		10,637			10,197			4

Provision for credit losses	23			2			15			9			8			NM		188		40			30			33

NONINTEREST EXPENSE
Compensation expense	1,391			1,329			1,392			1,389			1,319			5		5		4,112			3,928			5
Noncompensation expense	1,194			1,237			1,189			1,223			1,089			(3	)	10		3,620			3,678			(2	)
TOTAL NONINTEREST EXPENSE	2,585			2,566			2,581			2,612			2,408			1		7		7,732			7,606			2

Income before income tax expense	951			1,004			910			1,017			1,056			(5	)	(10	)	2,865			2,561			12
Income tax expense	227			249			140			363			382			(9	)	(41	)	616			878			(30	)
NET INCOME	$	724		$	755		$	770		$	654		$	674		(4	)	7		$	2,249		$	1,683		34

REVENUE BY LINE OF BUSINESS
Asset Management	$	1,827		$	1,826		$	1,787		$	1,969		$	1,814		—		1		$	5,440		$	5,288		3
Wealth Management	1,732			1,746			1,719			1,669			1,658			(1	)	4		5,197			4,909			6
TOTAL NET REVENUE	$	3,559		$	3,572		$	3,506		$	3,638		$	3,472		—		3		$	10,637		$	10,197		4

FINANCIAL RATIOS
ROE	31		%	33		%	34		%	28		%	29		%					32		%	24		%
Overhead ratio	73			72			74			72			69							73			75
Pretax margin ratio:
Asset Management	27			28			26			29			29							27			19
Wealth Management	26			28			26			27			32							27			31
Asset & Wealth Management	27			28			26			28			30							27			25

Headcount	23,747			23,141			23,268			22,975			22,685			3		5		23,747			22,685			5

Number of Wealth Management client advisors	2,808			2,644			2,640			2,605			2,581			6		9		2,808			2,581			9

Page 20



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

	QUARTERLY TRENDS																				NINE MONTHS ENDED SEPTEMBER 30,
																	3Q18 Change										2018 Change
	3Q18			2Q18				1Q18			4Q17			3Q17			2Q18		3Q17		2018			2017			2017
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	166,716		$	161,474			$	158,439		$	151,909		$	149,170		3	%	12	%	$	166,716		$	149,170		12	%
Loans	143,162			138,606				136,030			130,640			128,038			3		12		143,162			128,038			12
Core loans	143,162			138,606				136,030			130,640			128,038			3		12		143,162			128,038			12
Deposits	130,497			131,511				147,238			146,407			141,409			(1	)	(8	)	130,497			141,409			(8	)
Equity	9,000			9,000				9,000			9,000			9,000			—		—		9,000			9,000			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	161,982		$	158,244			$	154,345		$	149,147		$	146,388		2		11		$	158,218		$	142,541		11
Loans	140,558			136,710				132,634			127,802			125,445			3		12		136,663			122,002			12
Core loans	140,558			136,710				132,634			127,802			125,445			3		12		136,663			122,002			12
Deposits	133,021			139,557				144,199			142,069			144,496			(5	)	(8	)	138,885			151,311			(8	)
Equity	9,000			9,000				9,000			9,000			9,000			—		—		9,000			9,000			—

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	11		$	(5	)		$	1		$	4		$	5		NM		120		$	7		$	10		(30	)
Nonaccrual loans	285			323				359			375			337			(12	)	(15	)	285			337			(15	)
Allowance for credit losses:
Allowance for loan losses	317			304				301			290			285			4		11		317			285			11
Allowance for lending-related commitments	15			15				13			10			10			—		50		15			10			50
Total allowance for credit losses	332			319				314			300			295			4		13		332			295			13
Net charge-off/(recovery) rate	0.03		%	(0.01		)	%	—		%	0.01		%	0.02		%					0.01		%	0.01		%
Allowance for loan losses to period-end loans	0.22			0.22				0.22			0.22			0.22							0.22			0.22
Allowance for loan losses to nonaccrual loans	111			94				84			77			85							111			85
Nonaccrual loans to period-end loans	0.20			0.23				0.26			0.29			0.26							0.20			0.26

Page 21



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


														Sep 30, 2018
														Change				NINE MONTHS ENDED SEPTEMBER 30,
	Sep 30,		Jun 30,			Mar 31,			Dec 31,		Sep 30,			Jun 30,		Sep 30,								2018 Change
CLIENT ASSETS	2018		2018			2018			2017		2017			2018		2017		2018			2017			2017
Assets by asset class
Liquidity	$	463	$	448		$	432		$	459	$	441		3	%	5	%	$	463		$	441		5	%
Fixed income	457		452			467			474		461			1		(1	)	457			461			(1	)
Equity	452		435			432			428		405			4		12		452			405			12
Multi-asset and alternatives	705		693			685			673		638			2		11		705			638			11
TOTAL ASSETS UNDER MANAGEMENT	2,077		2,028			2,016			2,034		1,945			2		7		2,077			1,945			7
Custody/brokerage/administration/deposits	790		771			772			755		733			2		8		790			733			8
TOTAL CLIENT ASSETS	$	2,867	$	2,799		$	2,788		$	2,789	$	2,678		2		7		$	2,867		$	2,678		7

Memo:
Alternatives client assets (a)	$	172	$	172		$	169		$	166	$	161		—		7		$	172		$	161		7

Assets by client segment
Private Banking	$	576	$	551		$	537		$	526	$	507		5		14		$	576		$	507		14
Institutional	945		934			937			968		921			1		3		945			921			3
Retail	556		543			542			540		517			2		8		556			517			8
TOTAL ASSETS UNDER MANAGEMENT	$	2,077	$	2,028		$	2,016		$	2,034	$	1,945		2		7		$	2,077		$	1,945		7

Private Banking	$	1,339	$	1,298		$	1,285		$	1,256	$	1,217		3		10		$	1,339		$	1,217		10
Institutional	967		956			958			990		941			1		3		967			941			3
Retail	561		545			545			543		520			3		8		561			520			8
TOTAL CLIENT ASSETS	$	2,867	$	2,799		$	2,788		$	2,789	$	2,678		2		7		$	2,867		$	2,678		7

Assets under management rollforward
Beginning balance	$	2,028	$	2,016		$	2,034		$	1,945	$	1,876						$	2,034		$	1,771
Net asset flows:
Liquidity	14		17			(21		)	10		5							10			(1		)
Fixed income	3		(7		)	(5		)	12		17							(9		)	24
Equity	1		2			5			1		(5		)					8			(12		)
Multi-asset and alternatives	4		9			16			17		9							29			26
Market/performance/other impacts	27		(9		)	(13		)	49		43							5			137
Ending balance	$	2,077	$	2,028		$	2,016		$	2,034	$	1,945						$	2,077		$	1,945

Client assets rollforward
Beginning balance	$	2,799	$	2,788		$	2,789		$	2,678	$	2,598						$	2,789		$	2,453
Net asset flows	33		11			14			56		25							58			37
Market/performance/other impacts	35		—			(15		)	55		55							20			188
Ending balance	$	2,867	$	2,799		$	2,788		$	2,789	$	2,678						$	2,867		$	2,678


(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																					NINE MONTHS ENDED SEPTEMBER 30,
																		3Q18 Change											2018 Change
	3Q18			2Q18			1Q18				4Q17				3Q17			2Q18		3Q17		2018			2017				2017
INCOME STATEMENT
REVENUE
Principal transactions	$	(161	)	$	83		$	(144	)		$	123			$	(2	)	NM		NM		$	(222	)	$	161			NM
Securities gains/(losses)	(46		)	(80		)	(245		)		(29		)		—			43		NM		(371		)	(37		)		NM
All other income	30			139			204				28				111			(78	)	(73	)	373			839			(g)	(56	)
Noninterest revenue	(177		)	142			(185		)		122				109			NM		NM		(220		)	963				NM
Net interest income	74			(62		)	(47		)		53				77			NM		(4	)	(35		)	2				NM
TOTAL NET REVENUE (a)	(103		)	80			(232		)		175				186			NM		NM		(255		)	965				NM

Provision for credit losses	2			(1		)	(4		)		—				—			NM		NM		(3		)	—				NM

NONINTEREST EXPENSE (b)	28			279			87				146				74			(90	)	(62	)	394			355				11
Income/(loss) before income tax expense/(benefit)	(133		)	(198		)	(315		)		29				112			33		NM		(646		)	610				NM
Income tax expense/(benefit)	12			(62		)	68				2,355			(f)	34			NM		(65	)	18			(73		)		NM
NET INCOME/(LOSS)	$	(145	)	$	(136	)	$	(383	)		$	(2,326	)		$	78		(7	)	NM		$	(664	)	$	683			NM

MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”)	186			87			(38		)		222				265			114		(30	)	235			344				(32	)
Other Corporate	(289		)	(7		)	(194		)		(47		)		(79		)	NM		(266	)	(490		)	621				NM
TOTAL NET REVENUE	$	(103	)	$	80		$	(232	)		$	175			$	186		NM		NM		$	(255	)	$	965			NM

NET INCOME/(LOSS)
Treasury and CIO	96			(153		)	(187		)		66				75			NM		28		(244		)	(6		)		NM
Other Corporate	(241		)	17			(196		)		(2,392		)		3			NM		NM		(420		)	689				NM
TOTAL NET INCOME/(LOSS)	$	(145	)	$	(136	)	$	(383	)		$	(2,326	)		$	78		(7	)	NM		$	(664	)	$	683			NM

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	742,693		$	746,716		$	779,962			$	781,478			$	804,573		(1	)	(8	)	$	742,693		$	804,573			(8	)
Loans	1,556			1,720			1,724				1,653				1,614			(10	)	(4	)	1,556			1,614				(4	)
Core loans (c)	1,556			1,720			1,689				1,653				1,614			(10	)	(4	)	1,556			1,614				(4	)

Headcount (d)	36,686			35,877			35,368				34,601				34,012			2		8		36,686			34,012				8

SUPPLEMENTAL INFORMATION
TREASURY and CIO
Securities gains/(losses)	$	(46	)	$	(80	)	$	(245	)		$	(29	)		$	—		43	%	NM		$	(371	)	$	(49	)		NM
Available-for-sale (“AFS”) investment securities (average)	197,230			200,232			204,323			(e)	205,252				212,633			(1	)	(7	)	200,569			224,094				(10	)
Held-to-maturity (“HTM”) investment securities (average)	31,232			30,304			34,020			(e)	47,115				47,034			3		(34	)	31,842			48,201				(34	)
Investment securities portfolio (average)	$	228,462		$	230,536		$	238,343			$	252,367			$	259,667		(1	)	(12	)	$	232,411		$	272,295			(15	)
AFS investment securities (period-end)	198,523			200,434			207,703			(e)	200,247				214,257			(1	)	(7	)	198,523			214,257				(7	)
HTM investment securities (period-end)	31,368			31,006			29,042			(e)	47,733				47,079			1		(33	)	31,368			47,079				(33	)
Investment securities portfolio (period-end)	$	229,891		$	231,440		$	236,745			$	247,980			$	261,336		(1	)	(12	)	$	229,891		$	261,336			(12	)

(a)

Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $94 million, $95 million, $98 million, $224 million, and $216 million for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, respectively and $287 million and $681 million for the nine months ended September 30, 2018, and 2017, respectively.


(b)	Included legal expense/(benefit) of $(175) million, $(8) million, $(42) million, $(233) million and $(148) million for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017, and September 30, 2017, respectively and $(225) million and $(360) million for the nine months ended September 30, 2018, and 2017, respectively.


(c)	Average core loans were $1.6 billion, $1.7 billion, $1.6 billion, $1.7 billion, and $1.7 billion for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017, and September 30, 2017, respectively and $1.7 billion and $1.6 billion for the nine months ended September 30, 2018, and 2017, respectively.


(d)	Effective in the first quarter of 2018, certain compliance staff were transferred from Corporate to CB. The prior period amounts have been revised to conform with the current period presentation. For further discussion of this transfer, see page 18, footnote (c).


(e)	In accordance with the hedge accounting guidance adopted, the Firm elected to transfer certain securities from HTM to AFS during the first quarter of 2018. Refer to note on page 29 for additional information.


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


(g)	Included revenue related to a legal settlement of $645 million for the nine months ended September 30, 2017.

Page 23



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
													Sep 30, 2018
													Change
	Sep 30,		Jun 30,		Mar 31,		Dec 31,			Sep 30,			Jun 30,		Sep 30,
	2018		2018		2018		2017			2017			2018		2017
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained, excluding PCI loans	$	350,749	$	347,610	$	343,738	$	341,977		$	337,592		1	%	4	%
Loans - PCI	25,209		26,977		29,505		30,576			31,821			(7	)	(21	)
Total loans retained	375,958		374,587		373,243		372,553			369,413			—		2
Loans held-for-sale	104		110		152		128			188			(5	)	(45	)
Total consumer, excluding credit card loans	376,062		374,697		373,395		372,681			369,601			—		2

Credit card loans
Loans retained	147,856		145,221		140,348		149,387			141,200			2		5
Loans held-for-sale	25		34		66		124			113			(26	)	(78	)
Total credit card loans	147,881		145,255		140,414		149,511			141,313			2		5
Total consumer loans	523,943		519,952		513,809		522,192			510,914			1		3

Wholesale loans (b)
Loans retained	423,837		420,632		412,020		402,898			398,569			1		6
Loans held-for-sale and loans at fair value	6,538		7,830		8,595		5,607			4,278			(17	)	53
Total wholesale loans	430,375		428,462		420,615		408,505			402,847			—		7

Total loans	954,318		948,414		934,424		930,697			913,761			1		4
Derivative receivables	60,062		58,510		56,914		56,523			58,260			3		3
Receivables from customers and other (c)	26,137		27,607		27,996		26,272			19,350			(5	)	35
Total credit-related assets	1,040,517		1,034,531		1,019,334		1,013,492			991,371			1		5

Lending-related commitments
Consumer, excluding credit card	50,630		51,784		49,516		48,553		(f)	52,796		(f)	(2	)	(4	)
Credit card	600,728		592,452		588,232		572,831			574,641			1		5
Wholesale	395,916		401,757		384,275		370,098			372,380			(1	)	6
Total lending-related commitments	1,047,274		1,045,993		1,022,023		991,482			999,817			—		5

Total credit exposure	$	2,087,791	$	2,080,524	$	2,041,357	$	2,004,974		$	1,991,188		—		5

Memo: Total by category
Consumer exposure (d)	$	1,175,456	$	1,164,341	$	1,151,698	$	1,143,709		$	1,138,483		1		3
Wholesale exposures (e)	912,335		916,183		889,659		861,265			852,705			—		7
Total credit exposure	$	2,087,791	$	2,080,524	$	2,041,357	$	2,004,974		$	1,991,188		—		5

Note: The Firm provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, see pages 28–29.


(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, lending-related commitments, and receivables from customers and other.


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


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

Page 24



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

																Sep 30, 2018
																Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,		Sep 30,
	2018			2018			2018			2017			2017			2018		2017
NONPERFORMING ASSETS (a)
Consumer nonaccrual loans (b)(c)	$	3,636		$	3,979		$	4,260		$	4,209		$	4,161		(9	)	(13	)

Wholesale nonaccrual loans
Loans retained	994			1,156			1,594			1,734			1,470			(14	)	(32	)
Loans held-for-sale and loans at fair value	14			175			29			—			2			(92	)	NM
Total wholesale nonaccrual loans	1,008			1,331			1,623			1,734			1,472			(24	)	(32	)

Total nonaccrual loans	4,644			5,310			5,883			5,943			5,633			(13	)	(18	)

Derivative receivables	90			112			132			130			164			(20	)	(45	)
Assets acquired in loan satisfactions	300			345			349			353			357			(13	)	(16	)
Total nonperforming assets	5,034			5,767			6,364			6,426			6,154			(13	)	(18	)
Wholesale lending-related commitments (d)	252			712			746			731			764			(65	)	(67	)
Total nonperforming exposure	$	5,286		$	6,479		$	7,110		$	7,157		$	6,918		(18	)	(24	)

NONACCRUAL LOAN-RELATED RATIOS
Total nonaccrual loans to total loans	0.49		%	0.56		%	0.63		%	0.64		%	0.62		%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans	0.97			1.06			1.14			1.13			1.13
Total wholesale nonaccrual loans to total
wholesale loans	0.23			0.31			0.39			0.42			0.37

(a)

At September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017, and September 30, 2017, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $2.9 billion, $3.3 billion, $4.0 billion, $4.3 billion and $4.0 billion, respectively, that are 90 or more days past due; and (2) real estate owned (“REO”) insured by U.S. government agencies of $78 million, $84 million, $94 million, $95 million and $99 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”). Under this guidance, non-modified credit card loans are charged off by the end of the month in which the account becomes 180 days past due, while modified credit card loans are charged off when the account becomes 120 days past due. Moreover, all credit card loans must be charged off within 60 days of receiving notification about certain specified events (e.g., bankruptcy of the borrower).


(b)	Included nonaccrual loans held-for-sale of $– , $–, $34 million, $– and $3 million at September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, 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																				NINE MONTHS ENDED SEPTEMBER 30,
																	3Q18 Change											2018 Change
	3Q18			2Q18			1Q18			4Q17			3Q17				2Q18		3Q17		2018			2017				2017
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	13,250		$	13,375		$	13,604		$	13,539		$	13,363			(1	)%	(1	)%	$	13,604		$	13,776			(1	)%
Net charge-offs:
Gross charge-offs	1,459			1,718			1,640			1,535			1,550				(15	)	(6	)	4,817			4,977				(3	)
Gross recoveries	(426		)	(466		)	(305		)	(271		)	(285		)		9		(49	)	(1,197		)	(854		)		(40	)
Net charge-offs	1,033			1,252			1,335			1,264			1,265			(c)	(17	)	(18	)	3,620			4,123				(12	)
Write-offs of PCI loans (a)	58			73			20			20			20				(21	)	190		151			66				129
Provision for loan losses	968			1,199			1,127			1,349			1,460				(19	)	(34	)	3,294			3,951				(17	)
Other	1			1			(1		)	—			1				—		—		1			1				—
Ending balance	$	13,128		$	13,250		$	13,375		$	13,604		$	13,539			(1	)	(3	)	$	13,128		$	13,539			(3	)

ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	1,117		$	1,107		$	1,068		$	1,109		$	1,117			1		—		$	1,068		$	1,078			(1	)
Provision for lending-related commitments	(20		)	11			38			(41		)	(8		)		NM		(150	)	29			31				(6	)
Other	—			(1		)	1			—			—				NM		—		—			—				—
Ending balance	$	1,097		$	1,117		$	1,107		$	1,068		$	1,109			(2	)	(1	)	$	1,097		$	1,109			(1	)

Total allowance for credit losses	$	14,225		$	14,367		$	14,482		$	14,672		$	14,648			(1	)	(3	)	$	14,225		$	14,648			(3	)

NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans (b)	0.01		%	(0.06		)%	0.16		%	0.15		%	0.22		%						0.03		%	0.37		%	(d)
Credit card retained loans	2.91			3.27			3.32			2.97			2.87								3.16			2.94
Total consumer retained loans	0.82			0.86			1.04			0.94			0.95								0.90			1.07			(d)
Wholesale retained loans	(0.04		)	0.14			0.02			0.05			0.04								0.04			0.03
Total retained loans	0.43			0.54			0.59			0.55			0.56			(c)					0.52			0.62			(d)
Consumer retained loans, excluding credit card and
PCI loans	0.01			(0.07		)	0.17			0.17			0.24								0.04			0.40			(d)
Consumer retained loans, excluding PCI loans	0.86			0.91			1.10			1.00			1.02								0.96			1.15			(d)
Total retained, excluding PCI loans	0.45			0.56			0.61			0.57			0.58			(c)					0.54			0.64			(d)

Memo: Average retained loans
Consumer retained, excluding credit card loans	$	375,742		$	374,377		$	372,739		$	371,068		$	367,411			—		2		$	374,298		$	365,359			2
Credit card retained loans	146,244			142,685			142,830			143,388			141,061				2		4		143,931			138,749				4
Total average retained consumer loans	521,986			517,062			515,569			514,456			508,472				1		3		518,229			504,108				3
Wholesale retained loans	420,597			414,980			404,859			398,795			395,420				1		6		413,537			390,062				6
Total average retained loans	$	942,583		$	932,042		$	920,428		$	913,251		$	903,892			1		4		$	931,766		$	894,170			4

Consumer retained, excluding credit card and
PCI loans	$	349,367		$	345,601		$	342,690		$	339,860		$	334,987			1		4		$	345,912		$	331,635			4
Consumer retained, excluding PCI loans	495,611			488,286			485,520			483,248			476,048				2		4		489,843			470,384				4
Total retained, excluding PCI loans	916,205			903,263			890,376			882,040			871,465				1		5		903,377			860,443				5


(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 nine months ended September 30, 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 0.20%; 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 0.22%; Total consumer retained loans excluding PCI loans would have been 1.02%; 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)

																Sep 30, 2018
																Change
	Sep 30,			Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,		Sep 30,
	2018			2018			2018			2017			2017			2018		2017
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)	$	204		$	226		$	266		$	246		$	271		(10	)%	(25	)%
Formula-based	2,154			2,130			2,089			2,108			2,266			1		(5	)
PCI	1,824			2,132			2,205			2,225			2,245			(14	)	(19	)
Total consumer, excluding credit card	4,182			4,488			4,560			4,579			4,782			(7	)	(13	)
Credit card
Asset-specific (b)	421			402			393			383			376			5		12
Formula-based	4,613			4,482			4,491			4,501			4,308			3		7
Total credit card	5,034			4,884			4,884			4,884			4,684			3		7
Total consumer	9,216			9,372			9,444			9,463			9,466			(2	)	(3	)
Wholesale
Asset-specific (a)	280			318			474			461			363			(12	)	(23	)
Formula-based	3,632			3,560			3,457			3,680			3,710			2		(2	)
Total wholesale	3,912			3,878			3,931			4,141			4,073			1		(4	)
Total allowance for loan losses	13,128			13,250			13,375			13,604			13,539			(1	)	(3	)
Allowance for lending-related commitments	1,097			1,117			1,107			1,068			1,109			(2	)	(1	)
Total allowance for credit losses	$	14,225		$	14,367		$	14,482		$	14,672		$	14,648		(1	)	(3	)

CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	1.11		%	1.20		%	1.22		%	1.23		%	1.29		%
Credit card allowance to total credit card retained loans	3.40			3.36			3.48			3.27			3.32
Wholesale allowance to total wholesale retained loans	0.92			0.92			0.95			1.03			1.02
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (c)	0.99			1.00			1.04			1.12			1.12
Total allowance to total retained loans	1.39			1.41			1.44			1.47			1.49
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	115			113			108			109			115
Total allowance, excluding credit card allowance, to retained
nonaccrual loans, excluding credit card nonaccrual loans (d)	175			163			146			147			157
Wholesale allowance to wholesale retained nonaccrual loans	394			335			247			239			277
Total allowance to total retained nonaccrual loans	284			258			230			229			241

CREDIT RATIOS, excluding PCI loans
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	0.67			0.68			0.69			0.69			0.75
Total allowance to total retained loans	1.23			1.22			1.25			1.27			1.29
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	65			59			56			56			61
Allowance, excluding credit card allowance, to retained non-
accrual loans, excluding credit card nonaccrual loans (d)	135			121			108			109			117
Total allowance to total retained nonaccrual loans	244			217			192			191			201


(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.

NOTES INCLUDING 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)

TCE, ROTCE, and TBVPS are each 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.

(e)In addition to reviewing net interest income and the net interest yield on a managed basis, management also reviews these metrics excluding CIB’s Markets businesses to assess the performance of the Firm’s lending, investing (including asset-liability management) and deposit-raising activities. The resulting metrics are referred to as non-markets related net interest income and net yield. CIB’s Markets businesses are Fixed Income Markets and Equity Markets. Management believes that disclosure of non-markets related net interest income and net yield provide investors and analysts with other measures by which to analyze the non-markets-related business trends of the Firm and provides a comparable measure to other financial institutions that are primarily focused on lending, investing and deposit-raising activities.



	QUARTERLY TRENDS																			NINE MONTHS ENDED SEPTEMBER 30,
																3Q18 Change										2018 Change
	3Q18			2Q18			1Q18			4Q17			3Q17			2Q18		3Q17		2018			2017			2017
NET INTEREST INCOME EXCLUDING CIB’s MARKETS
Net interest income - managed basis^(a)(b)	$	14,062		$	13,646		$	13,470		$	13,353		$	13,117		3	%	7	%	$	41,178		$	38,057		8	%
Less: CIB Markets net interest income	704			754			1,030			1,121			1,070			(7	)	(34	)	2,488			3,509			(29	)
Net interest income excluding CIB Markets^(a)	$	13,358		$	12,892		$	12,440		$	12,232		$	12,047		4		11		$	38,690		$	34,548		12

Average interest-earning assets	2,220,258			2,222,277			2,203,413			2,189,707			2,194,174			—	%	1	%	2,215,377			2,177,520			2	%
Less: Average CIB Markets interest-earning assets	$	613,737		$	611,432		$	591,547		$	558,021		$	544,867		—		13		$	605,653		$	535,044		13
Average interest-earning assets excluding CIB Markets	$	1,606,521		$	1,610,845		$	1,611,866		$	1,631,686		$	1,649,307		—		(3	)	$	1,609,724		$	1,642,476		(2	)

Net interest yield on average interest-earning assets - managed basis	2.51		%	2.46		%	2.48		%	2.42		%	2.37		%					2.49		%	2.34		%
Net interest yield on average CIB Markets interest-earning assets	0.46		%	0.49		%	0.71		%	0.80		%	0.78		%					0.55		%	0.88		%
Net interest yield on average interest-earning assets excluding CIB Markets	3.30		%	3.21		%	3.13		%	2.97		%	2.90		%					3.21		%	2.81		%

(a) Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.

(b) For a reconciliation of net interest income on a reported and managed basis, refer to reconciliation from reported U.S. GAAP results to managed basis on page 7.

Page 28

JPMORGAN CHASE & CO.

NOTES INCLUDING NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES

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.

Financial Accounting Standards Board (“FASB”) Standards Adopted January 1, 2018

(a)

Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and prior period amounts were revised accordingly; the most significant of which was revenue recognition. The revenue recognition guidance requires gross presentation of certain costs that were previously offset against revenue. This change resulted in both noninterest revenue and noninterest expense increasing by $304 million and $252 million for the three months ended December 31, 2017 and September 30, 2017, respectively, and $777 million for the nine months ended September 30, 2017, with no impact to net income. For additional information, including the impacts of each of the new accounting standards, see pages 29-30 of the Firm’s Earnings Release Financial Supplement for the quarterly period ended March 31, 2018.

Page 29

Attached files

Stock widget

Investing forum