JPMORGAN CHASE & CO - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
EX-99.1 - EXHIBIT 99.1 - JPMORGAN CHASE & CO	a2q20erfexhibit991narr.htm
8-K - 8-K - JPMORGAN CHASE & CO	a2q20erf8kcover.htm

Exhibit 99.2

EARNINGS RELEASE FINANCIAL SUPPLEMENT

SECOND QUARTER 2020



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 (“CCB”)							11–14
Corporate & Investment Bank (“CIB”)							15–17
Commercial Banking (“CB”)							18–19
Asset & Wealth Management (“AWM”)							20–22
Corporate							23

Credit-Related Information							24–27

Non-GAAP Financial Measures							28

Glossary of Terms and Acronyms (a)

(a)

Refer to the Glossary of Terms and Acronyms on pages 293–299 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”) and the Glossary of Terms and Acronyms and Line of Business Metrics on pages 171-176 and pages 177-179, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020.



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

	QUARTERLY TRENDS																				SIX MONTHS ENDED JUNE 30,
																	2Q20 Change											2020 Change
SELECTED INCOME STATEMENT DATA	2Q20				1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		2020				2019			2019
Reported Basis
Total net revenue (a)	$	32,980			$	28,192		$	28,285		$	29,291		$	28,747		17	%	15	%	$	61,172			$	57,823		6	%
Total noninterest expense (a)	16,942				16,791			16,293			16,372			16,256			1		4		33,733				32,604			3
Pre-provision profit (b)	16,038				11,401			11,992			12,919			12,491			41		28		27,439				25,219			9
Provision for credit losses	10,473				8,285			1,427			1,514			1,149			26		NM		18,758				2,644			NM
NET INCOME	4,687				2,865			8,520			9,080			9,652			64		(51	)	7,552				18,831			(60	)

Managed Basis (c)
Total net revenue (a)	33,817				29,010			29,165			30,014			29,481			17		15		62,827				59,285			6
Total noninterest expense (a)	16,942				16,791			16,293			16,372			16,256			1		4		33,733				32,604			3
Pre-provision profit (b)	16,875				12,219			12,872			13,642			13,225			38		28		29,094				26,681			9
Provision for credit losses	10,473				8,285			1,427			1,514			1,149			26		NM		18,758				2,644			NM
NET INCOME	4,687				2,865			8,520			9,080			9,652			64		(51	)	7,552				18,831			(60	)

EARNINGS PER SHARE DATA
Net income: Basic	$	1.39			$	0.79		$	2.58		$	2.69		$	2.83		76		(51	)	$	2.17			$	5.48		(60	)
Diluted	1.38				0.78			2.57			2.68			2.82			77		(51	)	2.17				5.46			(60	)
Average shares: Basic	3,076.3				3,095.8			3,140.7			3,198.5			3,250.6			(1	)	(5	)	3,086.1				3,274.3			(6	)
Diluted	3,081.0				3,100.7			3,148.5			3,207.2			3,259.7			(1	)	(5	)	3,090.8				3,283.9			(6	)

MARKET AND PER COMMON SHARE DATA
Market capitalization	$	286,658			$	274,323		$	429,913		$	369,133		$	357,479		4		(20	)	$	286,658			$	357,479		(20	)
Common shares at period-end	3,047.6				3,047.0			3,084.0			3,136.5			3,197.5			—		(5	)	3,047.6				3,197.5			(5	)
Book value per share	76.91				75.88			75.98			75.24			73.88			1		4		76.91				73.88			4
Tangible book value per share (“TBVPS”) (b)	61.76				60.71			60.98			60.48			59.52			2		4		61.76				59.52			4
Cash dividends declared per share	0.90				0.90			0.90			0.90			0.80			—		13		1.80				1.60			13

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)	7		%		4		%	14		%	15		%	16		%					6		%		16		%
Return on tangible common equity (“ROTCE”) (b)	9				5			17			18			20							7				20
Return on assets	0.58				0.40			1.22			1.30			1.41							0.50				1.40

CAPITAL RATIOS (e)
Common equity Tier 1 (“CET1”) capital ratio	12.4		%	(f)	11.5		%	12.4		%	12.3		%	12.2		%					12.4		%	(f)	12.2		%
Tier 1 capital ratio	14.3			(f)	13.3			14.1			14.1			14.0							14.3			(f)	14.0
Total capital ratio	16.6			(f)	15.5			16.0			15.9			15.8							16.6			(f)	15.8
Tier 1 leverage ratio	6.9			(f)	7.5			7.9			7.9			8.0							6.9			(f)	8.0
Supplementary leverage ratio (“SLR”)	6.8			(f)	6.0			6.3			6.3			6.4							6.8			(f)	6.4

Effective January 1, 2020, the Firm adopted the Financial Instruments – Credit Losses (“CECL”) accounting guidance, which resulted in a net increase to the allowance for credit losses of $4.3 billion and a decrease to retained earnings of $2.7 billion. Refer to Note 1 – Basis of Presentation on pages 85-86 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.


(a)	In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts were revised to conform with the current presentation.


(b)	Pre-provision profit, TBVPS and ROTCE are each non-GAAP financial measures. Tangible common equity (“TCE”) is also a non-GAAP financial measure; refer to page 9 for a reconciliation of common stockholders’ equity to TCE. Refer to page 28 for a further discussion of these measures.


(c)	Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.


(d)	Quarterly ratios are based upon annualized amounts.

(e)

The capital metrics reflect relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including neutralization of the effects of the Firm’s participation in the various programs and facilities established by the U.S. government. For the periods ended June 30, 2020 and March 31, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $6.5 billion and $4.3 billion, respectively. As of June 30, 2020, the SLR reflects the temporary exclusions of U.S. Treasury securities and deposits at Federal Reserve Banks. Refer to Regulatory Developments Relating to the COVID-19 Pandemic on pages 10-11 and Capital Risk Management on pages 39-44 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for additional information. Refer to Capital Risk Management on pages 85-92 of the Firm’s 2019 Form 10-K for additional information on the Firm’s capital metrics.


(f)	Estimated.

Page 2



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

	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q20 Change										2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		2020			2019			2019
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	3,213,115		$	3,139,431		$	2,687,379		$	2,764,661		$	2,727,379		2	%	18	%	$	3,213,115		$	2,727,379		18	%
Loans:
Consumer, excluding credit card loans (a)	308,917			295,627			298,001			300,407			315,705			4		(2	)	308,917			315,705			(2	)
Credit card loans	141,656			154,021			168,924			159,571			157,576			(8	)	(10	)	141,656			157,576			(10	)
Wholesale loans (a)	527,945			565,727			492,844			485,240			483,608			(7	)	9		527,945			483,608			9
Total Loans	978,518			1,015,375			959,769			945,218			956,889			(4	)	2		978,518			956,889			2

Deposits:
U.S. offices:
Noninterest-bearing	529,729			448,195			395,667			393,522			394,237			18		34		529,729			394,237			34
Interest-bearing	1,061,093			1,026,603			876,156			844,137			841,397			3		26		1,061,093			841,397			26
Non-U.S. offices:
Noninterest-bearing	22,752			22,192			20,087			21,455			20,419			3		11		22,752			20,419			11
Interest-bearing	317,455			339,019			270,521			266,147			268,308			(6	)	18		317,455			268,308			18
Total deposits	1,931,029			1,836,009			1,562,431			1,525,261			1,524,361			5		27		1,931,029			1,524,361			27

Long-term debt	317,003			299,344			291,498			296,472			288,869			6		10		317,003			288,869			10
Common stockholders’ equity	234,403			231,199			234,337			235,985			236,222			1		(1	)	234,403			236,222			(1	)
Total stockholders’ equity	264,466			261,262			261,330			264,348			263,215			1		—		264,466			263,215			—

Loans-to-deposits ratio	51		%	55		%	61		%	62		%	63		%					51		%	63		%

Headcount	256,710			256,720			256,981			257,444			254,983			—		1		256,710			254,983			1

95% CONFIDENCE LEVEL - TOTAL VaR (b)
Average VaR	$	130		$	59		$	37		$	39		$	46		120		183

LINE OF BUSINESS NET REVENUE (c)
Consumer & Community Banking (d)	$	12,217		$	13,112		$	13,749		$	13,958		$	13,484		(7	)	(9	)	$	25,329		$	26,927		(6	)
Corporate & Investment Bank	16,352			9,948			9,647			9,522			9,831			64		66		26,300			19,865			32
Commercial Banking	2,392			2,178			2,297			2,274			2,285			10		5		4,570			4,698			(3	)
Asset & Wealth Management	3,610			3,606			3,700			3,568			3,559			—		1		7,216			7,048			2
Corporate	(754		)	166			(228		)	692			322			NM		NM		(588		)	747			NM
TOTAL NET REVENUE	$	33,817		$	29,010		$	29,165		$	30,014		$	29,481		17		15		$	62,827		$	59,285		6

LINE OF BUSINESS NET INCOME/(LOSS)
Consumer & Community Banking	$	(176	)	$	191		$	4,214		$	4,245		$	4,157		NM		NM		$	15		$	8,104		(100	)
Corporate & Investment Bank	5,464			1,988			2,938			2,831			2,946			175		85		7,452			6,206			20
Commercial Banking	(691		)	147			944			943			1,002			NM		NM		(544		)	2,062			NM
Asset & Wealth Management	658			664			785			668			719			(1	)	(8	)	1,322			1,380			(4	)
Corporate	(568		)	(125		)	(361		)	393			828			(354	)	NM		(693		)	1,079			NM
NET INCOME	$	4,687		$	2,865		$	8,520		$	9,080		$	9,652		64		(51	)	$	7,552		$	18,831		(60	)

In the first quarter of 2020, the Merchant Services business was realigned from CCB to CIB as part of the Firm’s Wholesale Payments business. The prior period amounts were revised to conform with the current presentation. Refer to Business segment changes on page 21 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.


(a)	In conjunction with the adoption of CECL on January 1, 2020, the Firm reclassified risk-rated business banking and auto dealer loans held in CCB from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment. Prior periods have been revised to conform with the current presentation.

(b)

Effective January 1, 2020, the Firm refined the scope of VaR to exclude positions related to the risk management of interest rate exposure from changes in the Firm’s own credit spread on fair value option elected liabilities, and included these positions in other-sensitivity based measures. In the absence of this refinement, the average Total VaR for the three months ended June 30, 2020 and March 31, 2020 would have been different by $(8) million and $6 million, respectively.


(c)	Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.


(d)	In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts were revised to conform with the current presentation.

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

	QUARTERLY TRENDS																				SIX MONTHS ENDED JUNE 30,
																	2Q20 Change											2020 Change
REVENUE	2Q20			1Q20			4Q19			3Q19			2Q19				1Q20		2Q19		2020			2019				2019
Investment banking fees	$	2,850		$	1,866		$	1,843		$	1,967		$	1,851			53	%	54	%	$	4,716		$	3,691			28	%
Principal transactions	7,621			2,937			2,779			3,449			3,714				159		105		10,558			7,790				36
Lending- and deposit-related fees (a)	1,431			1,706			1,772			1,671			1,624				(16	)	(12	)	3,137			3,183				(1	)
Asset management, administration and commissions (a)	4,266			4,540			4,301			4,306			4,264				(6	)	—		8,806			8,301				6
Investment securities gains	26			233			123			78			44				(89	)	(41	)	259			57				354
Mortgage fees and related income	917			320			474			887			279				187		229		1,237			675				83
Card income (b)	974			995			1,335			1,233			1,281				(2	)	(24	)	1,969			2,508				(21	)
Other income	1,042			1,156			1,492			1,472			1,292				(10	)	(19	)	2,198			2,767				(21	)
Noninterest revenue	19,127			13,753			14,119			15,063			14,349				39		33		32,880			28,972				13
Interest income	16,112			19,161			19,927			21,121			21,603				(16	)	(25	)	35,273			42,992				(18	)
Interest expense	2,259			4,722			5,761			6,893			7,205				(52	)	(69	)	6,981			14,141				(51	)
Net interest income	13,853			14,439			14,166			14,228			14,398				(4	)	(4	)	28,292			28,851				(2	)
TOTAL NET REVENUE	32,980			28,192			28,285			29,291			28,747				17		15		61,172			57,823				6

Provision for credit losses	10,473			8,285			1,427			1,514			1,149				26		NM		18,758			2,644				NM

NONINTEREST EXPENSE
Compensation expense	9,509			8,895			8,088			8,583			8,547				7		11		18,404			17,484				5
Occupancy expense	1,080			1,066			1,084			1,110			1,060				1		2		2,146			2,128				1
Technology, communications and equipment expense	2,590			2,578			2,585			2,494			2,378				—		9		5,168			4,742				9
Professional and outside services	1,999			2,028			2,226			2,056			2,212				(1	)	(10	)	4,027			4,251				(5	)
Marketing (b)	481			800			847			895			777				(40	)	(38	)	1,281			1,609				(20	)
Other expense (c)	1,283			1,424			1,463			1,234			1,282				(10	)	—		2,707			2,390				13
TOTAL NONINTEREST EXPENSE	16,942			16,791			16,293			16,372			16,256				1		4		33,733			32,604				3
Income before income tax expense	5,565			3,116			10,565			11,405			11,342				79		(51	)	8,681			22,575				(62	)
Income tax expense	878			251			2,045			2,325			1,690			(e)	250		(48	)	1,129			3,744			(e)	(70	)
NET INCOME	$	4,687		$	2,865		$	8,520		$	9,080		$	9,652			64		(51	)	$	7,552		$	18,831			(60	)


NET INCOME PER COMMON SHARE DATA
Basic earnings per share	$	1.39		$	0.79		$	2.58		$	2.69		$	2.83			76		(51	)	$	2.17		$	5.48			(60	)
Diluted earnings per share	1.38			0.78			2.57			2.68			2.82				77		(51	)	2.17			5.46				(60	)

FINANCIAL RATIOS
Return on common equity (d)	7		%	4		%	14		%	15		%	16		%						6		%	16		%
Return on tangible common equity (d)(e)	9			5			17			18			20								7			20
Return on assets (d)	0.58			0.40			1.22			1.30			1.41								0.50			1.40
Effective income tax rate	15.8			8.1			19.4			20.4			14.9			(f)					13.0			16.6			(f)
Overhead ratio	51			60			58			56			57								55			56


(a)	In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts were revised to conform with the current presentation.


(b)	In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts were revised to conform with the current presentation.


(c)	Included Firmwide legal expense/(benefit) of $118 million, $197 million, $241 million, $10 million and $69 million for the three months ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, respectively, and $315 million and $(12) million for the six months ended June 30, 2020 and June 30, 2019 respectively.


(d)	Quarterly ratios are based upon annualized amounts.


(e)	Refer to page 28 for further discussion of ROTCE.


(f)	The three and six months ended June 30, 2019 included income tax benefits of $768 million and $874 million, respectively, due to the resolution of certain tax audits.

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JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
																	Jun 30, 2020
																	Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,				Jun 30,			Mar 31,		Jun 30,
	2020			2020			2019			2019				2019			2020		2019
ASSETS
Cash and due from banks	$	20,544		$	24,001		$	21,704		$	21,215			$	23,164		(14	)%	(11	)%
Deposits with banks	473,185			343,533			241,927			235,382				244,874			38		93
Federal funds sold and securities purchased under
resale agreements	256,980			248,580			249,157			257,391				267,864			3		(4	)
Securities borrowed	142,704			139,839			139,758			138,336				130,661			2		9
Trading assets:
Debt and equity instruments	451,196			466,932			361,337			440,298				470,495			(3	)	(4	)
Derivative receivables	74,846			81,648			49,766			55,577				52,878			(8	)	42
Available-for-sale (“AFS”) securities	485,883			399,944			350,699			353,421				276,357			21		76
Held-to-maturity (”HTM”) securities, net of allowance for credit losses (a)	72,908			71,200			47,540			40,830				30,907			2		136
Investment securities, net of allowance for credit losses (a)	558,791			471,144			398,239			394,251				307,264			19		82
Loans	978,518			1,015,375			959,769			945,218				956,889			(4	)	2
Less: Allowance for loan losses	32,092			23,244			13,123			13,235				13,166			38		144
Loans, net of allowance for loan losses	946,426			992,131			946,646			931,983				943,723			(5	)	—
Accrued interest and accounts receivable	72,260			122,064			72,861			88,988				88,399			(41	)	(18	)
Premises and equipment	26,301			25,882			25,813			25,117				24,665			2		7
Goodwill, MSRs and other intangible assets	51,669			51,867			53,341			53,078				53,302			—		(3	)
Other assets	138,213			171,810			126,830			123,045				120,090			(20	)	15
TOTAL ASSETS	$	3,213,115		$	3,139,431		$	2,687,379		$	2,764,661			$	2,727,379		2		18

LIABILITIES
Deposits	$	1,931,029		$	1,836,009		$	1,562,431		$	1,525,261			$	1,524,361		5		27
Federal funds purchased and securities loaned or sold
under repurchase agreements	235,647			233,207			183,675			247,766				201,683			1		17
Short-term borrowings	48,014			51,909			40,920			48,893				59,890			(8	)	(20	)
Trading liabilities:
Debt and equity instruments	107,735			119,109			75,569			90,553				106,160			(10	)	1
Derivative payables	57,477			65,087			43,708			47,790				41,479			(12	)	39
Accounts payable and other liabilities	230,916			253,874			210,407			225,063				216,137			(9	)	7
Beneficial interests issued by consolidated VIEs	20,828			19,630			17,841			18,515				25,585			6		(19	)
Long-term debt	317,003			299,344			291,498			296,472				288,869			6		10
TOTAL LIABILITIES	2,948,649			2,878,169			2,426,049			2,500,313				2,464,164			2		20

STOCKHOLDERS’ EQUITY
Preferred stock	30,063			30,063			26,993			28,363			(b)	26,993			—		11
Common stock	4,105			4,105			4,105			4,105				4,105			—		—
Additional paid-in capital	88,125			87,857			88,522			88,512				88,359			—		—
Retained earnings	221,732			220,226			223,211			217,888				212,093			1		5
Accumulated other comprehensive income/(loss)	8,789			7,418			1,569			1,800				1,114			18		NM
Shares held in RSU Trust, at cost	(11		)	(21		)	(21		)	(21		)		(21		)	48		48
Treasury stock, at cost	(88,337		)	(88,386		)	(83,049		)	(76,299		)		(69,428		)	—		(27	)
TOTAL STOCKHOLDERS’ EQUITY	264,466			261,262			261,330			264,348				263,215			1		—
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,213,115		$	3,139,431		$	2,687,379		$	2,764,661			$	2,727,379		2		18


(a)	Upon adoption of the CECL accounting guidance, HTM securities are presented net of an allowance for credit losses. At June 30, 2020 and March 31, 2020, the allowance for credit losses on HTM securities was $23 million and $19 million, respectively.


(b)	Included $1.4 billion, which was redeemed on October 30, 2019, as previously announced on September 26, 2019.

Page 5



JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
	QUARTERLY TRENDS																				SIX MONTHS ENDED JUNE 30,
																	2Q20 Change											2020 Change
AVERAGE BALANCES	2Q20				1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		2020				2019			2019
ASSETS
Deposits with banks	$	477,895			$	279,748		$	272,648		$	267,578		$	289,838		71	%	65	%	$	378,821			$	290,058		31	%
Federal funds sold and securities purchased under
resale agreements	244,306				253,403			248,170			276,721			288,781			(4	)	(15	)	248,856				288,631			(14	)
Securities borrowed	141,328				136,127			135,374			139,939			126,157			4		12		138,728				124,820			11
Trading assets - debt instruments	380,442				346,911			323,554			339,198			351,716			10		8		363,676				337,209			8
Investment securities	500,254				421,529			394,002			343,134			281,232			19		78		460,891				270,376			70
Loans	997,558				962,820			948,298			947,280			954,854			4		4		980,189				961,400			2
All other interest-earning assets (a)	78,072				65,194			55,695			51,304			46,516			20		68		71,633				46,611			54
Total interest-earning assets	2,819,855				2,465,732			2,377,741			2,365,154			2,339,094			14		21		2,642,794				2,319,105			14
Trading assets - equity and other instruments	99,115				114,479			114,112			113,980			120,545			(13	)	(18	)	106,797				114,605			(7	)
Trading assets - derivative receivables	79,298				66,309			52,860			57,062			52,659			20		51		72,803				52,591			38
All other noninterest-earning assets	231,000				243,712			232,557			228,856			226,757			(5	)	2		237,356				225,734			5
TOTAL ASSETS	$	3,229,268			$	2,890,232		$	2,777,270		$	2,765,052		$	2,739,055		12		18		$	3,059,750			$	2,712,035		13
LIABILITIES
Interest-bearing deposits	$	1,375,213			$	1,216,555		$	1,154,716		$	1,123,452		$	1,104,051		13		25		$	1,295,884			$	1,092,228		19
Federal funds purchased and securities loaned or
sold under repurchase agreements	276,815				243,922			235,481			239,698			227,313			13		22		260,368				218,240			19
Short-term borrowings (b)	45,297				37,288			39,936			44,814			58,262			21		(22	)	41,292				62,643			(34	)
Trading liabilities - debt and other interest-bearing liabilities (c)	207,322				192,950			170,049			183,369			191,655			7		8		200,138				187,590			7
Beneficial interests issued by consolidated VIEs	20,331				18,048			19,390			21,123			26,713			13		(24	)	19,189				24,782			(23	)
Long-term debt	269,336				243,996			248,521			248,985			246,053			10		9		256,666				247,171			4
Total interest-bearing liabilities	2,194,314				1,952,759			1,868,093			1,861,441			1,854,047			12		18		2,073,537				1,832,654			13
Noninterest-bearing deposits	515,304				419,631			413,582			407,428			408,243			23		26		467,467				403,880			16
Trading liabilities - equity and other instruments	33,797				30,721			28,197			31,310			30,170			10		12		32,259				32,440			(1	)
Trading liabilities - derivative payables	63,178				54,990			44,361			45,987			40,233			15		57		59,084				39,902			48
All other noninterest-bearing liabilities	158,204				168,195			162,490			155,032			146,343			(6	)	8		163,200				144,553			13
TOTAL LIABILITIES	2,964,797				2,626,296			2,516,723			2,501,198			2,479,036			13		20		2,795,547				2,453,429			14
Preferred stock	30,063				29,406			27,669			28,241			26,993			2		11		29,734				27,059			10
Common stockholders’ equity	234,408				234,530			232,878			235,613			233,026			—		1		234,469				231,547			1
TOTAL STOCKHOLDERS’ EQUITY	264,471				263,936			260,547			263,854			260,019			—		2		264,203				258,606			2
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,229,268			$	2,890,232		$	2,777,270		$	2,765,052		$	2,739,055		12		18		$	3,059,750			$	2,712,035		13

AVERAGE RATES (d)
INTEREST-EARNING ASSETS
Deposits with banks	0.06			%	0.82		%	1.00		%	1.33		%	1.57		%					0.34			%	1.60		%
Federal funds sold and securities purchased under
resale agreements	0.99				1.74			2.05			2.21			2.33							1.37				2.32
Securities borrowed (e)	(0.50		)		0.45			0.81			1.23			1.48							(0.03		)		1.40
Trading assets - debt instruments	2.50				2.87			3.03			3.12			3.34							2.67				3.41
Investment securities	2.03				2.48			2.65			2.92			3.28							2.24				3.32
Loans	4.30				5.00			5.11			5.29			5.36							4.64				5.39
All other interest-earning assets (a)	0.92				2.58			3.45			4.27			4.07							1.68				4.03
Total interest-earning assets	2.31				3.14			3.35			3.56			3.73							2.70				3.76

INTEREST-BEARING LIABILITIES
Interest-bearing deposits	0.10				0.52			0.67			0.85			0.88							0.30				0.85
Federal funds purchased and securities loaned or
sold under repurchase agreements	0.19				1.30			1.77			2.05			2.16							0.71				2.16
Short-term borrowings (b)	1.11				1.63			1.97			2.31			2.49							1.34				2.54
Trading liabilities - debt and other interest-bearing liabilities (c)(e)	(0.08		)		0.77			1.04			1.43			1.60							0.33				1.59
Beneficial interests issued by consolidated VIEs	1.15				2.02			2.22			2.53			2.63							1.56				2.64
Long-term debt	2.45				2.88			3.21			3.49			3.69							2.65				3.76
Total interest-bearing liabilities	0.41				0.97			1.22			1.47			1.56							0.68				1.56

INTEREST RATE SPREAD	1.90			%	2.17		%	2.13		%	2.09		%	2.17		%					2.02			%	2.20		%
NET YIELD ON INTEREST-EARNING ASSETS	1.99			%	2.37		%	2.38		%	2.41		%	2.49		%					2.17			%	2.53		%
Memo: Net yield on interest-earning assets excluding CIB Markets (f)	2.27			%	3.01		%	3.06		%	3.23		%	3.35		%					2.61			%	3.39		%


(a)	Includes prime brokerage-related held-for-investment customer receivables, 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)	All other interest-bearing liabilities include prime brokerage-related customer payables.


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


(e)	Negative interest income and yields are related to the impact of current interest rates combined with the fees paid on client-driven securities borrowed balances. The negative interest expense related to prime brokerage customer payables is recognized in interest expense and reported within trading liabilities - debt and all other liabilities.


(f)	Net yield on interest-earning assets excluding CIB Markets is a non-GAAP financial measure. Refer to page 28 for a further discussion of this measure.

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. Refer to the notes on Non-GAAP Financial Measures on page 28 for additional information on managed basis.

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



	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q20 Change										2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		2020			2019			2019
OTHER INCOME
Other income - reported	$	1,042		$	1,156		$	1,492		$	1,472		$	1,292		(10	)%	(19	)%	$	2,198		$	2,767		(21	)%
Fully taxable-equivalent adjustments (a)	730			708			757			596			596			3		22		1,438			1,181			22
Other income - managed	$	1,772		$	1,864		$	2,249		$	2,068		$	1,888		(5	)	(6	)	$	3,636		$	3,948		(8	)

TOTAL NONINTEREST REVENUE (b)
Total noninterest revenue - reported	$	19,127		$	13,753		$	14,119		$	15,063		$	14,349		39		33		$	32,880		$	28,972		13
Fully taxable-equivalent adjustments (a)	730			708			757			596			596			3		22		1,438			1,181			22
Total noninterest revenue - managed	$	19,857		$	14,461		$	14,876		$	15,659		$	14,945		37		33		$	34,318		$	30,153		14

NET INTEREST INCOME
Net interest income - reported	$	13,853		$	14,439		$	14,166		$	14,228		$	14,398		(4	)	(4	)	$	28,292		$	28,851		(2	)
Fully taxable-equivalent adjustments (a)	107			110			123			127			138			(3	)	(22	)	217			281			(23	)
Net interest income - managed	$	13,960		$	14,549		$	14,289		$	14,355		$	14,536		(4	)	(4	)	$	28,509		$	29,132		(2	)

TOTAL NET REVENUE (b)
Total net revenue - reported	$	32,980		$	28,192		$	28,285		$	29,291		$	28,747		17		15		$	61,172		$	57,823		6
Fully taxable-equivalent adjustments (a)	837			818			880			723			734			2		14		1,655			1,462			13
Total net revenue - managed	$	33,817		$	29,010		$	29,165		$	30,014		$	29,481		17		15		$	62,827		$	59,285		6

PRE-PROVISION PROFIT
Pre-provision profit - reported	$	16,038		$	11,401		$	11,992		$	12,919		$	12,491		41		28		$	27,439		$	25,219		9
Fully taxable-equivalent adjustments (a)	837			818			880			723			734			2		14		1,655			1,462			13
Pre-provision profit - managed	$	16,875		$	12,219		$	12,872		$	13,642		$	13,225		38		28		$	29,094		$	26,681		9

INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported	$	5,565		$	3,116		$	10,565		$	11,405		$	11,342		79		(51	)	$	8,681		$	22,575		(62	)
Fully taxable-equivalent adjustments (a)	837			818			880			723			734			2		14		1,655			1,462			13
Income before income tax expense - managed	$	6,402		$	3,934		$	11,445		$	12,128		$	12,076		63		(47	)	$	10,336		$	24,037		(57	)

INCOME TAX EXPENSE
Income tax expense - reported	$	878		$	251		$	2,045		$	2,325		$	1,690		250		(48	)	$	1,129		$	3,744		(70	)
Fully taxable-equivalent adjustments (a)	837			818			880			723			734			2		14		1,655			1,462			13
Income tax expense - managed	$	1,715		$	1,069		$	2,925		$	3,048		$	2,424		60		(29	)	$	2,784		$	5,206		(47	)

OVERHEAD RATIO
Overhead ratio - reported	51		%	60		%	58		%	56		%	57		%					55		%	56		%
Overhead ratio - managed	50			58			56			55			55							54			55


(a)	Predominantly recognized in CIB, CB and Corporate.


(b)	In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts were revised to conform with the current presentation.

Page 7



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


	QUARTERLY TRENDS																		SIX MONTHS ENDED JUNE 30,
															2Q20 Change									2020 Change
	2Q20			1Q20			4Q19			3Q19		2Q19			1Q20		2Q19		2020			2019		2019
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking (a)	$	12,217		$	13,112		$	13,749		$	13,958	$	13,484		(7	)%	(9	)%	$	25,329		$	26,927	(6	)%
Corporate & Investment Bank	16,352			9,948			9,647			9,522		9,831			64		66		26,300			19,865		32
Commercial Banking	2,392			2,178			2,297			2,274		2,285			10		5		4,570			4,698		(3	)
Asset & Wealth Management	3,610			3,606			3,700			3,568		3,559			—		1		7,216			7,048		2
Corporate	(754		)	166			(228		)	692		322			NM		NM		(588		)	747		NM
TOTAL NET REVENUE	$	33,817		$	29,010		$	29,165		$	30,014	$	29,481		17		15		$	62,827		$	59,285	6

TOTAL NONINTEREST EXPENSE
Consumer & Community Banking (a)	$	6,626		$	7,102		$	6,965		$	7,025	$	6,836		(7	)	(3	)	$	13,728		$	13,759	—
Corporate & Investment Bank	6,764			5,896			5,392			5,504		5,661			15		19		12,660			11,290		12
Commercial Banking	899			988			943			940		931			(9	)	(3	)	1,887			1,869		1
Asset & Wealth Management	2,506			2,659			2,650			2,622		2,596			(6	)	(3	)	5,165			5,243		(1	)
Corporate	147			146			343			281		232			1		(37	)	293			443		(34	)
TOTAL NONINTEREST EXPENSE	$	16,942		$	16,791		$	16,293		$	16,372	$	16,256		1		4		$	33,733		$	32,604	3

PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking	$	5,591		$	6,010		$	6,784		$	6,933	$	6,648		(7	)	(16	)	$	11,601		$	13,168	(12	)
Corporate & Investment Bank	9,588			4,052			4,255			4,018		4,170			137		130		13,640			8,575		59
Commercial Banking	1,493			1,190			1,354			1,334		1,354			25		10		2,683			2,829		(5	)
Asset & Wealth Management	1,104			947			1,050			946		963			17		15		2,051			1,805		14
Corporate	(901		)	20			(571		)	411		90			NM		NM		(881		)	304		NM
PRE-PROVISION PROFIT	$	16,875		$	12,219		$	12,872		$	13,642	$	13,225		38		28		$	29,094		$	26,681	9

PROVISION FOR CREDIT LOSSES
Consumer & Community Banking	$	5,828		$	5,772		$	1,207		$	1,311	$	1,120		1		420		$	11,600		$	2,434	377
Corporate & Investment Bank	1,987			1,401			98			92		—			42		NM		3,388			87		NM
Commercial Banking	2,431			1,010			110			67		29			141		NM		3,441			119		NM
Asset & Wealth Management	223			94			13			44		2			137		NM		317			4		NM
Corporate	4			8			(1		)	—		(2		)	(50	)	NM		12			—		NM
PROVISION FOR CREDIT LOSSES	$	10,473		$	8,285		$	1,427		$	1,514	$	1,149		26		NM		$	18,758		$	2,644	NM

NET INCOME/(LOSS)
Consumer & Community Banking	$	(176	)	$	191		$	4,214		$	4,245	$	4,157		NM		NM		$	15		$	8,104	(100	)
Corporate & Investment Bank	5,464			1,988			2,938			2,831		2,946			175		85		7,452			6,206		20
Commercial Banking	(691		)	147			944			943		1,002			NM		NM		(544		)	2,062		NM
Asset & Wealth Management	658			664			785			668		719			(1	)	(8	)	1,322			1,380		(4	)
Corporate	(568		)	(125		)	(361		)	393		828			(354	)	NM		(693		)	1,079		NM
TOTAL NET INCOME	$	4,687		$	2,865		$	8,520		$	9,080	$	9,652		64		(51	)	$	7,552		$	18,831	(60	)

In the first quarter of 2020, the Merchant Services business was realigned from CCB to CIB as part of the Firm’s Wholesale Payments business. Prior period amounts were revised to conform with the current presentation. Refer to Business segment changes on page 21 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.


(a)	In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts were revised to conform with the current presentation.

Page 8



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

																	Jun 30, 2020
																	Change				SIX MONTHS ENDED JUNE 30,
	Jun 30,				Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,		Jun 30,						2020 Change
	2020				2020			2019			2019			2019			2020		2019		2020		2019		2019
CAPITAL (a)
Risk-based capital metrics
Standardized
CET1 capital	$	190,778		(e)	$	183,591		$	187,753		$	188,151		$	189,169		4	%	1	%
Tier 1 capital	220,586			(e)	213,406			214,432			214,831			215,808			3		2
Total capital	256,602			(e)	247,541			242,589			243,500			244,490			4		5
Risk-weighted assets	1,544,281			(e)	1,598,828			1,515,869			1,527,762			1,545,101			(3	)	—
CET1 capital ratio	12.4		%	(e)	11.5		%	12.4		%	12.3		%	12.2		%
Tier 1 capital ratio	14.3			(e)	13.3			14.1			14.1			14.0
Total capital ratio	16.6			(e)	15.5			16.0			15.9			15.8

Advanced
CET1 capital	$	190,778		(e)	$	183,591		$	187,753		$	188,151		$	189,169		4		1
Tier 1 capital	220,586			(e)	213,406			214,432			214,831			215,808			3		2
Total capital	244,037			(e)	234,434			232,112			233,203			234,507			4		4
Risk-weighted assets	1,454,707			(e)	1,489,134			1,397,878			1,435,693			1,449,211			(2	)	—
CET1 capital ratio	13.1		%	(e)	12.3		%	13.4		%	13.1		%	13.1		%
Tier 1 capital ratio	15.2			(e)	14.3			15.3			15.0			14.9
Total capital ratio	16.8			(e)	15.7			16.6			16.2			16.2

Leverage-based capital metrics
Adjusted average assets (b)	$	3,176,642		(e)	$	2,842,244		$	2,730,239		$	2,717,852		$	2,692,225		12		18
Tier 1 leverage ratio	6.9		%	(e)	7.5		%	7.9		%	7.9		%	8.0		%

Total leverage exposure	3,227,809			(e)	3,535,822			3,423,431			3,404,535			3,367,154			(9	)	(4	)
SLR	6.8		%	(e)	6.0		%	6.3		%	6.3		%	6.4		%

TANGIBLE COMMON EQUITY (period-end) (c)
Common stockholders’ equity	$	234,403			$	231,199		$	234,337		$	235,985		$	236,222		1		(1	)
Less: Goodwill	47,811				47,800			47,823			47,818			47,477			—		1
Less: Other intangible assets	778				800			819			841			732			(3	)	6
Add: Certain deferred tax liabilities (d)	2,397				2,389			2,381			2,371			2,316			—		3
Total tangible common equity	$	188,211			$	184,988		$	188,076		$	189,697		$	190,329		2		(1	)

TANGIBLE COMMON EQUITY (average) (c)
Common stockholders’ equity	$	234,408			$	234,530		$	232,878		$	235,613		$	233,026		—		1		$	234,469	$	231,547	1	%
Less: Goodwill	47,805				47,812			47,819			47,707			47,472			—		1		47,808		47,474		1
Less: Other intangible assets	791				812			831			842			741			(3	)	7		802		741		8
Add: Certain deferred tax liabilities (d)	2,393				2,385			2,375			2,344			2,304			—		4		2,388		2,296		4
Total tangible common equity	$	188,205			$	188,291		$	186,603		$	189,408		$	187,117		—		1		$	188,247	$	185,628	1

INTANGIBLE ASSETS (period-end)
Goodwill	$	47,811			$	47,800		$	47,823		$	47,818		$	47,477		—		1
Mortgage servicing rights	3,080				3,267			4,699			4,419			5,093			(6	)	(40	)
Other intangible assets	778				800			819			841			732			(3	)	6
Total intangible assets	$	51,669			$	51,867		$	53,341		$	53,078		$	53,302		—		(3	)

(a)


(b)	Adjusted average assets, for purposes of calculating the 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)	Refer to page 28 for further discussion of TCE.


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


(e)	Estimated.

Page 9



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

	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q20 Change										2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		2020			2019			2019
EARNINGS PER SHARE
Basic earnings per share
Net income	$	4,687		$	2,865		$	8,520		$	9,080		$	9,652		64	%	(51	)%	$	7,552		$	18,831		(60	)%
Less: Preferred stock dividends	401			421			386			423			404			(5	)	(1	)	822			778			6
Net income applicable to common equity	4,286			2,444			8,134			8,657			9,248			75		(54	)	6,730			18,053			(63	)
Less: Dividends and undistributed earnings allocated to
participating securities	21			13			44			51			56			62		(63	)	32			108			(70	)
Net income applicable to common stockholders	$	4,265		$	2,431		$	8,090		$	8,606		$	9,192		75		(54	)	$	6,698		$	17,945		(63	)

Total weighted-average basic shares outstanding	3,076.3			3,095.8			3,140.7			3,198.5			3,250.6			(1	)	(5	)	3,086.1			3,274.3			(6	)
Net income per share	$	1.39		$	0.79		$	2.58		$	2.69		$	2.83		76		(51	)	$	2.17		$	5.48		(60	)

Diluted earnings per share
Net income applicable to common stockholders	$	4,265		$	2,431		$	8,090		$	8,606		$	9,192		75		(54	)	$	6,698		$	17,945		(63	)
Total weighted-average basic shares outstanding	3,076.3			3,095.8			3,140.7			3,198.5			3,250.6			(1	)	(5	)	3,086.1			3,274.3			(6	)
Add: Dilutive impact of stock appreciation rights (“SARs”) and employee stock options, unvested performance share units (“PSUs”) and nondividend-earning restricted stock units (“RSUs”)	4.7			4.9			7.8			8.7			9.1			(4	)	(48	)	4.7			9.6			(51	)
Total weighted-average diluted shares outstanding	3,081.0			3,100.7			3,148.5			3,207.2			3,259.7			(1	)	(5	)	3,090.8			3,283.9			(6	)
Net income per share	$	1.38		$	0.78		$	2.57		$	2.68		$	2.82		77		(51	)	$	2.17		$	5.46		(60	)

COMMON DIVIDENDS
Cash dividends declared per share	$	0.90		$	0.90		$	0.90		$	0.90		$	0.80		—		13		$	1.80		$	1.60		13
Dividend payout ratio	65		%	114		%	35		%	33		%	28		%					83		%	29		%

COMMON EQUITY REPURCHASE PROGRAM (a)
Total shares of common stock repurchased	—			50.0			54.0			62.0			47.5			NM		NM		50.0			97.0			(48	)
Average price paid per share of common stock	$	—		$	127.92		$	127.24		$	112.07		$	109.83		NM		NM		$	127.92		$	106.23		20
Aggregate repurchases of common equity	—			6,397			6,871			6,949			5,210			NM		NM		6,397			10,301			(38	)

EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans	0.8			13.0			1.5			1.0			1.0			(94	)	(20	)	13.8			18.7			(26	)
Net impact of employee issuances on stockholders’ equity (b)	$	325		$	398		$	132		$	232		$	258		(18	)	26		$	723		$	606		19


(a)	On June 29, 2020, the Firm announced that the Federal Reserve Board has directed the Firm to discontinue its net share repurchases, at least through the end of the third quarter of 2020.


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

Page 10



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


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																		2Q20 Change											2020 Change
	2Q20				1Q20			4Q19			3Q19			2Q19				1Q20		2Q19		2020				2019			2019
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees (a)	$	617			$	972		$	1,032		$	1,026		$	971			(37	)%	(36	)%	$	1,589			$	1,880		(15	)%
Asset management, administration and commissions (a)	536				585			609			606			620				(8	)	(14	)	1,121				1,201			(7	)
Mortgage fees and related income (b)	917				320			474			886			279				187		229		1,237				675			83
Card income (c)	733				709			983			905			913				3		(20	)	1,442				1,775			(19	)
All other income	1,313				1,373			1,396			1,383			1,321				(4	)	(1	)	2,686				2,611			3
Noninterest revenue	4,116				3,959			4,494			4,806			4,104				4		—		8,075				8,142			(1	)
Net interest income (b)	8,101				9,153			9,255			9,152			9,380				(11	)	(14	)	17,254				18,785			(8	)
TOTAL NET REVENUE	12,217				13,112			13,749			13,958			13,484				(7	)	(9	)	25,329				26,927			(6	)

Provision for credit losses	5,828				5,772			1,207			1,311			1,120				1		420		11,600				2,434			377

NONINTEREST EXPENSE
Compensation expense	2,557				2,597			2,497			2,544			2,531				(2	)	1		5,154				5,097			1
Noncompensation expense (c)(d)	4,069				4,505			4,468			4,481			4,305				(10	)	(5	)	8,574				8,662			(1	)
TOTAL NONINTEREST EXPENSE	6,626				7,102			6,965			7,025			6,836				(7	)	(3	)	13,728				13,759			—

Income/(loss) before income tax expense/(benefit)	(237		)		238			5,577			5,622			5,528				NM		NM		1				10,734			(100	)
Income tax expense/(benefit)	(61		)		47			1,363			1,377			1,371				NM		NM		(14		)		2,630			NM
NET INCOME/(LOSS)	$	(176	)		$	191		$	4,214		$	4,245		$	4,157			NM		NM		$	15			$	8,104		(100	)

REVENUE BY LINE OF BUSINESS
Consumer & Business Banking	$	5,107			$	6,091		$	6,537		$	6,782		$	6,897			(16	)	(26	)	$	11,198			$	13,558		(17	)
Home Lending (b)	1,687				1,161			1,250			1,465			1,118				45		51		2,848				2,464			16
Card & Auto (c)	5,423				5,860			5,962			5,711			5,469				(7	)	(1	)	11,283				10,905			3

MORTGAGE FEES AND RELATED INCOME DETAILS:
Net production revenue (b)	742				319			327			738			353				133		110		1,061				553			92
Net mortgage servicing revenue (e)	175				1			147			148			(74		)		NM		NM		176				122			44
Mortgage fees and related income	$	917			$	320		$	474		$	886		$	279			187		229		$	1,237			$	675		83

FINANCIAL RATIOS
ROE	(2		)	%	1		%	31		%	31		%	31			%					(1		)	%	31		%
Overhead ratio	54				54			51			50			51								54				51

In the first quarter of 2020, the Merchant Services business was realigned from CCB to CIB as part of the Firm’s Wholesale Payments business. Prior-period amounts were revised to conform with the current presentation. Refer to Business segment changes on page 21 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.


(a)	In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior-period amounts were revised to conform with the current presentation.

(b)

Net production revenue in the third quarter of 2019 included approximately $350 million of gains on the sale of certain mortgage loans that were predominantly offset by a charge in net interest income for the unwind of the related internal funding from Treasury and Chief Investment Office (“CIO”) associated with these loans. The charge reflects the net present value of that funding and is recognized as interest income in Treasury and CIO. Refer to footnote (a) in Corporate on page 23 and Funds Transfer Pricing (“FTP”) on page 61 of the Firm’s 2019 Form 10-K for further information.


(c)	In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts were revised to conform with the current presentation.


(d)	Included depreciation expense on leased assets of $1.1 billion for the three months ended June 30, 2020, March 31, 2020, December 31, 2019 and $1.0 billion and $957 million for the three months ended September 30, 2019, and June 30, 2019, respectively, and

$2.2 billion and $1.9 billion for the six months ended June 30, 2020 and 2019, respectively.


(e)	Included MSR risk management results of $79 million, $(90) million, $35 million, $53 million and $(244) million for the three months ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, respectively, and $(11) million and $(253) million for the six months ended June 30, 2020 and 2019, respectively.

Page 11



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

	QUARTERLY TRENDS															SIX MONTHS ENDED JUNE 30,
												2Q20 Change									2020 Change
	2Q20			1Q20		4Q19		3Q19		2Q19		1Q20		2Q19		2020			2019		2019
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	492,251		$	506,147	$	532,538	$	525,223	$	536,758	(3	)%	(8	)%	$	492,251		$	536,758	(8	)%

Loans:
Consumer & Business Banking	46,910		(b)	27,709		27,199		26,699		26,616		69		76		46,910		(b)	26,616		76
Home Lending	188,576			196,401		199,799		203,339		219,533		(4	)	(14	)	188,576			219,533		(14	)
Card	141,656			154,021		168,924		159,571		157,576		(8	)	(10	)	141,656			157,576		(10	)
Auto	59,287			61,468		61,522		61,410		62,073		(4	)	(4	)	59,287			62,073		(4	)
Total loans	436,429			439,599		457,444		451,019		465,798		(1	)	(6	)	436,429			465,798		(6	)

Deposits	876,991			775,068		718,354		701,111		695,096		13		26		876,991			695,096		26
Equity	52,000			52,000		52,000		52,000		52,000		—		—		52,000			52,000		—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	498,140		$	517,213	$	525,863	$	530,649	$	534,612	(4	)	(7	)	$	507,676		$	540,296	(6	)

Loans:
Consumer & Business Banking	41,198			27,261		26,820		26,550		26,570		51		55		34,230			26,529		29
Home Lending	192,716			198,042		201,599		213,372		224,685		(3	)	(14	)	195,379			231,778		(16	)
Card	142,377			162,660		162,112		158,168		153,746		(12	)	(7	)	152,518			152,447		—
Auto	60,306			60,893		61,100		61,371		62,236		(1	)	(3	)	60,599			62,498		(3	)
Total loans	436,597			448,856		451,631		459,461		467,237		(3	)	(7	)	442,726			473,252		(6	)

Deposits	831,996			733,648		707,953		693,943		690,892		13		20		782,822			685,980		14
Equity	52,000			52,000		52,000		52,000		52,000		—		—		52,000			52,000		—

Headcount (a)	122,089			122,081		123,115		123,532		123,580		—		(1	)	122,089			123,580		(1	)


(a)	During the second quarter of 2020, certain technology and support functions, comprising approximately 850 staff, were transferred from AWM to CCB as part of the ongoing reorganization of the U.S. Wealth Management business.


(b)	At June 30, 2020, included $19.9 billion of loans under the Paycheck Protection Program (“PPP”). Refer to page 11 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information on the PPP.

Page 12



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)	QUARTERLY TRENDS																									SIX MONTHS ENDED JUNE 30,
																						2Q20 Change													2020 Change
	2Q20					1Q20				4Q19				3Q19				2Q19				1Q20		2Q19		2020					2019				2019
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)	$	4,407			(e)	$	4,008			$	3,018			$	3,099			$	3,142			10	%	40	%	$	4,407			(e)	$	3,142			40	%
Net charge-offs/(recoveries)
Consumer & Business Banking	60					74				92				79				66				(19	)	(9	)	134					125				7
Home Lending	(5		)			(122		)		(23		)		(42		)		(28		)		96		82		(127		)			(33		)		(285	)
Card	1,178					1,313				1,231				1,175				1,240				(10	)	(5	)	2,491					2,442				2
Auto	45					48				57				49				42				(6	)	7		93					100				(7	)
Total net charge-offs/(recoveries)	$	1,278				$	1,313			$	1,357			$	1,261			$	1,320			(3	)	(3	)	$	2,591				$	2,634			(2	)
Net charge-off/(recovery) rate
Consumer & Business Banking	0.59			%		1.09			%	1.36			%	1.18			%	1.00			%					0.79			%		0.95			%
Home Lending	(0.01		)			(0.25		)		(0.05		)		(0.08		)		(0.05		)						(0.13		)			(0.03		)
Card	3.33					3.25				3.01				2.95				3.24								3.28					3.23
Auto	0.30					0.32				0.37				0.32				0.27								0.31					0.32
Total net charge-off/(recovery) rate	1.18					1.18				1.20				1.10				1.14								1.18					1.13

30+ day delinquency rate
Home Lending (c)(d)	1.30			%	(f)	1.48			%	1.58			%	1.63			%	1.55			%					1.30			%	(f)	1.55			%
Card	1.71				(f)	1.96				1.87				1.84				1.71								1.71				(f)	1.71
Auto	0.54				(f)	0.89				0.94				0.88				0.82								0.54				(f)	0.82

90+ day delinquency rate - Card	0.93				(f)	1.02				0.95				0.90				0.87								0.93				(f)	0.87

Allowance for loan losses
Consumer & Business Banking	$	1,370				$	882			$	746			$	746			$	796			55		72		$	1,370				$	796			72
Home Lending	2,957					2,137				1,890				2,159				2,302				38		28		2,957					2,302				28
Card	17,800					14,950				5,683				5,583				5,383				19		231		17,800					5,383				231
Auto	1,044					732				465				465				465				43		125		1,044					465				125
Total allowance for loan losses	$	23,171				$	18,701			$	8,784			$	8,953			$	8,946			24		159		$	23,171				$	8,946			159


(a)	At June 30, 2020 and March 31, 2020, nonaccrual loans included $1.3 billion and $970 million of PCD loans, respectively. Prior to the adoption of CECL, nonaccrual loans excluded PCI loans as the Firm recognized interest income on each pool of PCI loans as each of the pools was performing.


(b)	At June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $561 million, $616 million, $961 million, $1.6 billion and $1.8 billion, respectively. These amounts have been excluded based upon the government guarantee.


(c)	At June 30, 2020 and March 31, 2020, the 30+ day delinquency rates included PCD loans. The rates prior to January 1, 2020 were revised to include the impact of PCI loans.


(d)	At June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, excluded mortgage loans insured by U.S. government agencies of $826 million, $1.0 billion, $1.7 billion, $2.7 billion and $2.9 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.


(e)	Generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic.


(f)	At June 30, 2020, the principal balance of loans in Home Lending, Card and Auto under payment deferral programs offered in response to the COVID-19 pandemic and are still within their deferral period were $18.2 billion, $4.4 billion and $12.3 billion, respectively. Loans that are performing according to their modified terms are generally not considered delinquent.

Page 13



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

	QUARTERLY TRENDS																								SIX MONTHS ENDED JUNE 30,
																					2Q20 Change												2020 Change
	2Q20				1Q20				4Q19				3Q19				2Q19				1Q20		2Q19		2020				2019				2019
BUSINESS METRICS
Number of:
Branches	4,923				4,967				4,976				4,949				4,970				(1	)%	(1	)%	4,923				4,970				(1	)%
Active digital customers (in thousands) (a)	54,471				53,799				52,421				51,843				51,032				1		7		54,471				51,032				7
Active mobile customers (in thousands) (b)	39,024				38,236				37,297				36,510				35,392				2		10		39,024				35,392				10

Debit and credit card sales volume (in billions)	$	237.6			$	266.0			$	295.6			$	282.2			$	281.5			(11	)	(16	)	$	503.6			$	536.6			(6	)

Consumer & Business Banking
Average deposits	$	813,153			$	718,909			$	691,696			$	678,281			$	676,663			13		20		$	766,031			$	672,617			14
Deposit margin	1.52			%	2.06			%	2.28			%	2.47			%	2.60			%					1.77			%	2.61			%
Business banking origination volume	$	23,042		(f)	$	1,491			$	1,827			$	1,550			$	1,741			NM		NM		$	24,533		(f)	$	3,221			NM
Client investment assets	356,143				322,999				358,036				337,915				328,141				10		9		356,143				328,141				9

Home Lending (in billions)
Mortgage origination volume by channel
Retail	$	18.0			$	14.1			$	16.4			$	14.2			$	12.5			28		44		$	32.1			$	20.4			57
Correspondent	6.2				14.0				16.9				18.2				12.0				(56	)	(48	)	20.2				19.1				6
Total mortgage origination volume (c)	$	24.2			$	28.1			$	33.3			$	32.4			$	24.5			(14	)	(1	)	$	52.3			$	39.5			32
Total loans serviced (period-end)	$	683.7			$	737.8			$	761.4			$	774.8			$	780.1			(7	)	(12	)	$	683.7			$	780.1			(12	)
Third-party mortgage loans serviced (period-end)	482.4				505.0				520.8				535.8				526.6				(4	)	(8	)	482.4				526.6				(8	)
MSR carrying value (period-end)	3.1				3.3				4.7				4.4				5.1				(6	)	(39	)	3.1				5.1				(39	)
Ratio of MSR carrying value (period-end) to third-party
mortgage loans serviced (period-end)	0.64			%	0.65			%	0.90			%	0.82			%	0.97			%					0.64			%	0.97			%
MSR revenue multiple (d)	2.29		x		2.10		x		2.73		x		2.41		x		2.69		x						2.21		x		2.77		x

Credit Card
Credit card sales volume, excluding Commercial Card (in billions)	$	148.5			$	179.1			$	204.2			$	193.6			$	192.5			(17	)	(23	)	327.6				365.0				(10	)
Net revenue rate (e)	11.02			%	10.54			%	10.65			%	10.40			%	10.31			%					10.76			%	10.43			%

Auto
Loan and lease origination volume (in billions)	$	7.7			$	8.3			$	8.5			$	9.1			$	8.5			(7	)	(9	)	$	16.0			$	16.4			(2	)
Average auto operating lease assets	22,579				23,081				22,427				21,765				21,314				(2	)	6		22,830				21,074				8


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


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


(c)	Firmwide mortgage origination volume was $28.3 billion, $31.9 billion, $37.4 billion, $35.8 billion and $26.3 billion for the three months ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, respectively, and $60.2 billion and $42.7 billion for the six months ended June 30, 2020 and 2019, 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).


(e)	In the second quarter of 2020, the Firm reclassified certain spend-based credit card reward costs from marketing expense to be a reduction of card income, with no effect on net income. Prior-period amounts were revised to conform with the current presentation.


(f)	Included $21.5 billion of origination volume under the PPP for the three and six months ended June 30, 2020. Refer to page 11 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information on the PPP.

Page 14



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q20 Change										2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		2020			2019			2019
INCOME STATEMENT
REVENUE
Investment banking fees	$	2,847		$	1,907		$	1,904		$	1,981		$	1,846		49	%	54	%	$	4,754		$	3,690		29	%
Principal transactions	7,400			3,188			2,932			3,418			3,885			132		90		10,588			8,049			32
Lending- and deposit-related fees (a)	500			450			462			398			412			11		21		950			808			18
Asset management, administration and commissions (a)	1,146			1,261			1,059			1,160			1,112			(9	)	3		2,407			2,179			10
All other income	380			35			622			397			405			NM		(6	)	415			770			(46	)
Noninterest revenue	12,273			6,841			6,979			7,354			7,660			79		60		19,114			15,496			23
Net interest income	4,079			3,107			2,668			2,168			2,171			31		88		7,186			4,369			64
TOTAL NET REVENUE (b)	16,352			9,948			9,647			9,522			9,831			64		66		26,300			19,865			32

Provision for credit losses	1,987			1,401			98			92			—			42		NM		3,388			87			NM

NONINTEREST EXPENSE
Compensation expense	3,997			3,006			2,377			2,873			2,839			33		41		7,003			5,930			18
Noncompensation expense	2,767			2,890			3,015			2,631			2,822			(4	)	(2	)	5,657			5,360			6
TOTAL NONINTEREST EXPENSE	6,764			5,896			5,392			5,504			5,661			15		19		12,660			11,290			12

Income before income tax expense	7,601			2,651			4,157			3,926			4,170			187		82		10,252			8,488			21
Income tax expense	2,137			663			1,219			1,095			1,224			222		75		2,800			2,282			23
NET INCOME	$	5,464		$	1,988		$	2,938		$	2,831		$	2,946		175		85		$	7,452		$	6,206		20

FINANCIAL RATIOS
ROE	27		%	9		%	14		%	13		%	14		%					18		%	15		%
Overhead ratio	41			59			56			58			58							48			57
Compensation expense as percentage of total net revenue	24			30			25			30			29							27			30

REVENUE BY BUSINESS
Investment Banking	$	3,401		$	886		$	1,823		$	1,871		$	1,776		284		91		$	4,287		$	3,521		22
Wholesale Payments	1,356			1,359			1,433			1,361			1,402			—		(3	)	2,715			2,817			(4	)
Lending	270			350			250			253			260			(23	)	4		620			518			20
Total Banking	5,027			2,595			3,506			3,485			3,438			94		46		7,622			6,856			11
Fixed Income Markets	7,338			4,993			3,446			3,557			3,690			47		99		12,331			7,415			66
Equity Markets	2,380			2,237			1,508			1,517			1,728			6		38		4,617			3,469			33
Securities Services	1,097			1,074			1,061			1,034			1,045			2		5		2,171			2,059			5
Credit Adjustments & Other (c)	510			(951		)	126			(71		)	(70		)	NM		NM		(441		)	66			NM
Total Markets & Securities Services	11,325			7,353			6,141			6,037			6,393			54		77		18,678			13,009			44
TOTAL NET REVENUE	$	16,352		$	9,948		$	9,647		$	9,522		$	9,831		64		66		$	26,300		$	19,865		32


(a)	In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions to lending- and deposit-related fees. Prior period amounts were revised to conform with the current presentation.

(b)

Includes 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 $686 million, $667 million, $646 million, $527 million and $547 million for the three months ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, respectively and $1.4 billion and $1.1 billion for the six months ended June 30, 2020 and 2019, respectively.


(c)	Consists primarily of credit valuation adjustments (“CVA”) managed centrally within CIB and funding valuation adjustments (“FVA”) on derivatives and certain components of fair value option elected liabilities. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.

Page 15



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q20 Change										2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		2020			2019			2019
SELECTED BALANCE SHEET DATA (period-end)
Assets	$	1,080,761		$	1,217,459		$	914,705		$	1,030,396		$	976,430		(11	)%	11	%	$	1,080,761		$	976,430		11	%
Loans:
Loans retained (a)	140,770			165,376			121,733			118,290			123,074			(15	)	14		140,770			123,074			14
Loans held-for-sale and loans at fair value	10,241			9,326			10,112			8,324			6,838			10		50		10,241			6,838			50
Total loans	151,011			174,702			131,845			126,614			129,912			(14	)	16		151,011			129,912			16

Equity	80,000			80,000			80,000			80,000			80,000			—		—		80,000			80,000			—

SELECTED BALANCE SHEET DATA (average)
Assets	$	1,167,807		$	1,082,820		$	994,152		$	1,011,246		$	1,000,517		8		17		1,125,314			$	984,165		14
Trading assets - debt and equity instruments	450,507			427,316			398,604			415,450			421,775			5		7		438,911			401,656			9
Trading assets - derivative receivables	76,710			55,133			45,153			48,266			48,815			39		57		65,922			49,707			33
Loans:
Loans retained (a)	154,038			128,838			119,412			119,007			124,194			20		24		141,438			125,585			13
Loans held-for-sale and loans at fair value	8,399			9,818			9,708			8,344			7,763			(14	)	8		9,108			8,186			11
Total loans	162,437			138,656			129,120			127,351			131,957			17		23		150,546			133,771			13

Equity	80,000			80,000			80,000			80,000			80,000			—		—		80,000			80,000			—

Headcount	60,950			60,245			60,013			60,028			59,111			1		3		60,950			59,111			3

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	204		$	55		$	43		$	38		$	72		271		183		$	259		$	102		154
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (b)	1,195			689			308			712			569			73		110		1,195			569			110
Nonaccrual loans held-for-sale and loans at fair value	250			138			95			262			370			81		(32	)	250			370			(32	)
Total nonaccrual loans	1,445			827			403			974			939			75		54		1,445			939			54

Derivative receivables	108			85			30			26			39			27		177		108			39			177
Assets acquired in loan satisfactions	35			43			70			75			58			(19	)	(40	)	35			58			(40	)
Total nonperforming assets	1,588			955			503			1,075			1,036			66		53		1,588			1,036			53
Allowance for credit losses:
Allowance for loan losses	3,440			1,422			1,202			1,171			1,131			142		204		3,440			1,131			204
Allowance for lending-related commitments	1,233			1,468			848			824			807			(16	)	53		1,233			807			53
Total allowance for credit losses	4,673			2,890			2,050			1,995			1,938			62		141		4,673			1,938			141

Net charge-off/(recovery) rate (a)(c)	0.53		%	0.17		%	0.14		%	0.13		%	0.23		%					0.37		%	0.16		%
Allowance for loan losses to period-end loans retained (a)	2.44			0.86			0.99			0.99			0.92							2.44			0.92
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (d)	3.27			1.11			1.31			1.33			1.27							3.27			1.27
Allowance for loan losses to nonaccrual loans retained (a)(b)	288			206			390			164			199							288			199
Nonaccrual loans to total period-end loans	0.96			0.47			0.31			0.77			0.72							0.96			0.72


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


(b)	Allowance for loan losses of $340 million, $317 million, $110 million, $207 million and $147 million were held against nonaccrual loans at June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, respectively.


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


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

Page 16



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q20 Change								2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		2020		2019		2019
BUSINESS METRICS
Advisory	$	602		$	503		$	702		$	506		$	525		20	%	15	%	$	1,105	$	1,169	(5	)%
Equity underwriting	977			331			382			514			505			195		93		1,308		770		70
Debt underwriting	1,268			1,073			820			961			816			18		55		2,341		1,751		34
Total investment banking fees	$	2,847		$	1,907		$	1,904		$	1,981		$	1,846		49		54		$	4,754	$	3,690	29

Client deposits and other third-party liabilities (average) (a)	607,902			514,464			485,037			471,328			458,237			18		33		561,183		451,185		24

Merchant processing volume (in billions) (b)	371.9			374.8			402.9			380.5			371.6			(1	)	—		$	746.7	$	728.1	3

Assets under custody (“AUC”) (period-end) (in billions)	$	27,447		$	24,409		$	26,831		$	25,695		$	25,450		12		8		$	27,447	$	25,450	8

95% Confidence Level - Total CIB VaR (average) (c)
CIB trading VaR by risk type: (d)
Fixed income	$	129		$	60		$	39		$	37		$	39		115		231
Foreign exchange	9			7			5			6			7			29		29
Equities	27			20			18			22			25			35		8
Commodities and other	32			10			7			8			9			220		256
Diversification benefit to CIB trading VaR (e)	(69		)	(40		)	(32		)	(34		)	(36		)	(73	)	(92	)
CIB trading VaR (d)	128			57			37			39			44			125		191
Credit portfolio VaR (f)	22			9			5			5			5			144		340
Diversification benefit to CIB VaR (e)	(23		)	(8		)	(5		)	(6		)	(5		)	(188	)	(360	)
CIB VaR	$	127		$	58		$	37		$	38		$	44		119		189


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


(b)	Represents total merchant processing volume across CIB, CCB and CB.

(c)

Effective January 1, 2020, the Firm refined the scope of VaR to exclude positions related to the risk management of interest rate exposure from changes in the Firm’s own credit spread on fair value option elected liabilities, and included these positions in other-sensitivity based measures. In the absence of this refinement, the average VaR for each of the following reported components would have been different by the following amounts: CIB fixed income of $(11) million and $4 million, CIB Trading VaR $(11) million and $5 million and CIB VaR $(8) million and $6 million for the three months ended June 30, 2020 and March 31, 2020, respectively.


(d)	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. Refer to VaR measurement on pages 121–123 of the Firm’s 2019 Form 10-K, and pages 67-69 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.


(e)	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.


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

Page 17



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


	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																		2Q20 Change											2020 Change
	2Q20				1Q20				4Q19			3Q19			2Q19			1Q20		2Q19		2020				2019			2019
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees (a)	$	297			$	261			$	256		$	228		$	224		14	%	33	%	$	558			$	457		22	%
All other income (a)	518				360				437			438			399			44		30		878				899			(2	)
Noninterest revenue	815				621				693			666			623			31		31		1,436				1,356			6
Net interest income	1,577				1,557				1,604			1,608			1,662			1		(5	)	3,134				3,342			(6	)
TOTAL NET REVENUE (b)	2,392				2,178				2,297			2,274			2,285			10		5		4,570				4,698			(3	)

Provision for credit losses	2,431				1,010				110			67			29			141		NM		3,441				119			NM

NONINTEREST EXPENSE
Compensation expense	430				472				444			454			438			(9	)	(2	)	902				887			2
Noncompensation expense	465				513				499			486			493			(9	)	(6	)	978				982			—
Amortization of intangibles	4				3				—			—			—			33		NM		7				—			NM
TOTAL NONINTEREST EXPENSE	899				988				943			940			931			(9	)	(3	)	1,887				1,869			1

Income/(loss) before income tax expense/(benefit)	(938		)		180				1,244			1,267			1,325			NM		NM		(758		)		2,710			NM
Income tax expense/(benefit)	(247		)		33				300			324			323			NM		NM		(214		)		648			NM
NET INCOME/(LOSS)	$	(691	)		$	147			$	944		$	943		$	1,002		NM		NM		$	(544	)		$	2,062		NM

Revenue by product
Lending	$	1,127			$	954			$	1,027		$	1,006		$	1,012		18		11		$	2,081			$	2,024		3
Wholesale payments	917				991				1,021			1,017			1,063			(7	)	(14	)	1,908				2,167			(12	)
Investment banking (c)	256				235				211			226			193			9		33		491				482			2
Other	92				(2		)		38			25			17			NM		441		90				25			260
Total Commercial Banking net revenue (b)	$	2,392			$	2,178			$	2,297		$	2,274		$	2,285		10		5		$	4,570			$	4,698		(3	)

Investment banking revenue, gross (d)	$	851			$	686			$	634		$	700		$	592		24		44		$	1,537			$	1,410		9

Revenue by client segment
Middle Market Banking	$	866			$	946			$	934		$	925		$	961		(8	)	(10	)	$	1,812			$	1,935		(6	)
Corporate Client Banking	859				681				759			767			744			26		15		1,540				1,595			(3	)
Commercial Real Estate Banking	566				541				537			547			538			5		5		1,107				1,085			2
Other	101				10				67			35			42			NM		140		111				83			34
Total Commercial Banking net revenue (b)	$	2,392			$	2,178			$	2,297		$	2,274		$	2,285		10		5		$	4,570			$	4,698		(3	)

FINANCIAL RATIOS
ROE	(14		)	%	2			%	16		%	16		%	17		%					(6		)	%	18		%
Overhead ratio	38				45				41			41			41							41				40

In the first quarter of 2020, the Merchant Services business was realigned from CCB to CIB and the revenue and expense of the business is reported across CCB, CIB and CB based primarily on client relationship. In conjunction with this realignment, treasury services product revenue has been renamed wholesale payments. Prior period revenue and expense amounts were revised to conform with the current presentation. Refer to Business segment changes on page 21 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information.


(a)	In the first quarter of 2020, the Firm reclassified certain fees from asset management, administration and commissions (which are included in all other income) to lending- and deposit-related fees. Prior period amounts were revised to conform with the current presentation.

(b)

Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities and in entities established for rehabilitation of historic properties, as well as tax-exempt income related to municipal financing activities of $80 million, $81 million, $152 million, $114 million and $100 million for the three months ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, respectively, and $161 million and $194 million for the six months ended June 30, 2020 and 2019, respectively.


(c)	Includes CB’s share of revenue from investment banking products sold to CB clients through the CIB.


(d)	Refer to page 60 of the Firm’s 2019 Form 10-K for discussion of revenue sharing.

Page 18



JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q20 Change										2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		2020			2019			2019
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	234,934		$	247,786		$	220,514		$	222,483		$	220,712		(5	)%	6	%	$	234,934		$	220,712		6	%
Loans:
Loans retained	223,192			232,254			207,287			209,448			208,323			(4	)	7		223,192			208,323			7
Loans held-for-sale and loans at fair value	917			1,112			1,009			3,187			1,284			(18	)	(29	)	917			1,284			(29	)
Total loans	$	224,109		$	233,366		$	208,296		$	212,635		$	209,607		(4	)	7		$	224,109		$	209,607		7
Equity	22,000			22,000			22,000			22,000			22,000			—		—		22,000			22,000			—

Period-end loans by client segment
Middle Market Banking	$	64,211	(c)	$	60,317		$	54,188		$	54,298		$	56,346		6		14		$	64,211	(c)	$	56,346		14
Corporate Client Banking	56,182			69,540			51,165			55,976			51,500			(19	)	9		56,182			51,500			9
Commercial Real Estate Banking	103,117			102,799			101,951			101,326			100,751			—		2		103,117			100,751			2
Other	599			710			992			1,035			1,010			(16	)	(41	)	599			1,010			(41	)
Total Commercial Banking loans	$	224,109	(c)	$	233,366		$	208,296		$	212,635		$	209,607		(4	)	7		$	224,109	(c)	$	209,607		7

SELECTED BALANCE SHEET DATA (average)
Total assets	$	247,512		$	226,071		$	219,891		$	218,620		$	218,760		9		13		$	236,792		$	218,530		8
Loans:
Loans retained	233,044			209,988			208,776			207,286			206,771			11		13		221,516			205,623			8
Loans held-for-sale and loans at fair value	502			1,831			1,036			963			701			(73	)	(28	)	1,167			1,165			—
Total loans	$	233,546		$	211,819		$	209,812		$	208,249		$	207,472		10		13		$	222,683		$	206,788		8
Client deposits and other third-party liabilities	236,968			188,808			182,546			172,714			168,247			26		41		212,888			167,756			27
Equity	22,000			22,000			22,000			22,000			22,000			—		—		22,000			22,000			—

Average loans by client segment
Middle Market Banking	$	66,279		$	56,045		$	54,114		$	54,806		$	57,155		18		16		$	61,162		$	56,940		7
Corporate Client Banking	63,308			53,032			53,187			51,389			48,656			19		30		58,170			48,400			20
Commercial Real Estate Banking	103,516			101,526			101,542			101,044			100,671			2		3		102,521			100,469			2
Other	443			1,216			969			1,010			990			(64	)	(55	)	830			979			(15	)
Total Commercial Banking loans	$	233,546		$	211,819		$	209,812		$	208,249		$	207,472		10		13		$	222,683		$	206,788		8

Headcount	11,802			11,779			11,629			11,501			11,248			—		5		11,802			11,248			5

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	79		$	100		$	89		$	45		$	15		(21	)	427		$	179		$	26		NM
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (a)	1,377			793			498			659			614			74		124		1,377			614			124
Nonaccrual loans held-for-sale and loans
at fair value	—			—			—			—			—			—		—		—			—			—
Total nonaccrual loans	1,377			793			498			659			614			74		124		1,377			614			124

Assets acquired in loan satisfactions	24			24			25			19			20			—		20		24			20			20
Total nonperforming assets	1,401			817			523			678			634			71		121		1,401			634			121
Allowance for credit losses:
Allowance for loan losses	4,830			2,680			2,780			2,759			2,756			80		75		4,830			2,756			75
Allowance for lending-related commitments	707			505			293			293			274			40		158		707			274			158
Total allowance for credit losses	5,537			3,185			3,073			3,052			3,030			74		83		5,537			3,030			83

Net charge-off/(recovery) rate (b)	0.14		%	0.19		%	0.17		%	0.09		%	0.03		%					0.16		%	0.03		%
Allowance for loan losses to period-end loans retained	2.16			1.15			1.34			1.32			1.32							2.16			1.32
Allowance for loan losses to nonaccrual loans retained (a)	351			338			558			419			449							351			449
Nonaccrual loans to period-end total loans	0.61			0.34			0.24			0.31			0.29							0.61			0.29


(a)	Allowance for loan losses of $287 million, $175 million, $114 million, $119 million and $125 million was held against nonaccrual loans retained at June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, respectively.


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


(c)	At June 30, 2020, total loans included $6.5 billion of loans under the PPP, of which $6.3 billion was in Middle Market Banking. Refer to page 11 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2020 for further information on the PPP.

Page 19



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


	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q20 Change										2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		2020			2019			2019
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	2,589		$	2,706		$	2,654		$	2,574		$	2,568		(4	)%	1	%	$	5,295		$	4,984		6	%
All other income	131			3			173			139			115			NM		14		134			292			(54	)
Noninterest revenue	2,720			2,709			2,827			2,713			2,683			—		1		5,429			5,276			3
Net interest income	890			897			873			855			876			(1	)	2		1,787			1,772			1
TOTAL NET REVENUE	3,610			3,606			3,700			3,568			3,559			—		1		7,216			7,048			2

Provision for credit losses	223			94			13			44			2			137		NM		317			4			NM

NONINTEREST EXPENSE
Compensation expense	1,315			1,411			1,446			1,391			1,406			(7	)	(6	)	2,726			2,868			(5	)
Noncompensation expense	1,191			1,248			1,204			1,231			1,190			(5	)	—		2,439			2,375			3
TOTAL NONINTEREST EXPENSE	2,506			2,659			2,650			2,622			2,596			(6	)	(3	)	5,165			5,243			(1	)

Income before income tax expense	881			853			1,037			902			961			3		(8	)	1,734			1,801			(4	)
Income tax expense	223			189			252			234			242			18		(8	)	412			421			(2	)
NET INCOME	$	658		$	664		$	785		$	668		$	719		(1	)	(8	)	$	1,322		$	1,380		(4	)

REVENUE BY LINE OF BUSINESS
Asset Management	$	1,780		$	1,740		$	1,892		$	1,816		$	1,785		2		—		$	3,520		$	3,546		(1	)
Wealth Management	1,830			1,866			1,808			1,752			1,774			(2	)	3		3,696			3,502			6
TOTAL NET REVENUE	$	3,610		$	3,606		$	3,700		$	3,568		$	3,559		—		1		$	7,216		$	7,048		2

FINANCIAL RATIOS
ROE	24		%	25		%	29		%	24		%	27		%					24		%	26		%
Overhead ratio	69			74			72			73			73							72			74
Pretax margin ratio:
Asset Management	30			24			30			25			25							26			24
Wealth Management	19			24			26			25			29							22			27
Asset & Wealth Management	24			24			28			25			27							24			26

Headcount (a)	22,949			23,830			24,191			24,228			23,683			(4	)	(3	)	22,949			23,683			(3	)

Number of Wealth Management client advisors	2,869			2,878			2,890			2,872			2,735			—		5		2,869			2,735			5


(a)	During the second quarter of 2020, certain technology and support functions, comprising approximately 850 staff, were transferred from AWM to CCB as part of the ongoing reorganization of the U.S. Wealth Management business.

Page 20



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

	QUARTERLY TRENDS																					SIX MONTHS ENDED JUNE 30,
																		2Q20 Change										2020 Change
	2Q20				1Q20			4Q19			3Q19			2Q19				1Q20		2Q19		2020			2019			2019
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	183,189			$	186,102		$	182,004		$	174,226		$	172,149			(2	)%	6	%	$	183,189		$	172,149		6	%
Loans	165,299				166,058			160,535			153,245			149,877				—		10		165,299			149,877			10
Deposits	169,537				168,561			147,804			138,439			136,225				1		24		169,537			136,225			24
Equity	10,500				10,500			10,500			10,500			10,500				—		—		10,500			10,500			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	182,318			$	183,316		$	176,925		$	171,121		$	167,544			(1	)	9		$	182,817		$	167,452		9
Loans	163,440				161,823			156,106			150,486			146,494				1		12		162,631			145,953			11
Deposits	168,573				150,631			143,059			138,822			140,317				12		20		159,602			139,282			15
Equity	10,500				10,500			10,500			10,500			10,500				—		—		10,500			10,500			—

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	(2		)		$	2		$	4		$	26		$	(3	)		NM		33		$	—		$	1		NM
Nonaccrual loans	775				304			116			176			127				155		NM		775			127			NM
Allowance for credit losses:
Allowance for loan losses	648				438			354			350			331				48		96		648			331			96
Allowance for lending-related commitments	28				14			19			16			17				100		65		28			17			65
Total allowance for credit losses	676				452			373			366			348				50		94		676			348			94
Net charge-off/(recovery) rate	—			%	—		%	0.01		%	0.07		%	(0.01		)	%					—		%	—		%
Allowance for loan losses to period-end loans	0.39				0.26			0.22			0.23			0.22								0.39			0.22
Allowance for loan losses to nonaccrual loans	84				144			305			199			261								84			261
Nonaccrual loans to period-end loans	0.47				0.18			0.07			0.11			0.08								0.47			0.08

Page 21



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


															Jun 30, 2020
															Change				SIX MONTHS ENDED JUNE 30,
	Jun 30,		Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,		Jun 30,								2020 Change
CLIENT ASSETS	2020		2020			2019			2019			2019			2020		2019		2020			2019			2019
Assets by asset class
Liquidity	$	707	$	618		$	542		$	505		$	481		14	%	47	%	$	707		$	481		47	%
Fixed income	629		586			602			590			543			7		16		629			543			16
Equity	457		369			474			437			441			24		4		457			441			4
Multi-asset and alternatives	718		666			746			714			713			8		1		718			713			1
TOTAL ASSETS UNDER MANAGEMENT	2,511		2,239			2,364			2,246			2,178			12		15		2,511			2,178			15
Custody/brokerage/administration/deposits	859		763			862			815			820			13		5		859			820			5
TOTAL CLIENT ASSETS	$	3,370	$	3,002		$	3,226		$	3,061		$	2,998		12		12		$	3,370		$	2,998		12

Memo:
Alternatives client assets (a)	$	188	$	188		$	185		$	183		$	177		—		6		$	188		$	177		6

Assets by client segment
Private Banking	$	677	$	617		$	672		$	636		$	617		10		10		$	677		$	617		10
Institutional	1,218		1,097			1,074			1,029			991			11		23		1,218			991			23
Retail	616		525			618			581			570			17		8		616			570			8
TOTAL ASSETS UNDER MANAGEMENT	$	2,511	$	2,239		$	2,364		$	2,246		$	2,178		12		15		$	2,511		$	2,178		15

Private Banking	$	1,500	$	1,355		$	1,504		$	1,424		$	1,410		11		6		$	1,500		$	1,410		6
Institutional	1,249		1,118			1,099			1,051			1,013			12		23		1,249			1,013			23
Retail	621		529			623			586			575			17		8		621			575			8
TOTAL CLIENT ASSETS	$	3,370	$	3,002		$	3,226		$	3,061		$	2,998		12		12		$	3,370		$	2,998		12

Assets under management rollforward
Beginning balance	$	2,239	$	2,364		$	2,246		$	2,178		$	2,096						$	2,364		$	1,987
Net asset flows:
Liquidity	95		75			37			24			4							170			(1		)
Fixed income	17		1			9			41			37							18			56
Equity	11		(1		)	(1		)	(2		)	(1		)					10			(7		)
Multi-asset and alternatives	1		(2		)	6			1			—							(1		)	(3		)
Market/performance/other impacts	148		(198		)	67			4			42							(50		)	146
Ending balance	$	2,511	$	2,239		$	2,364		$	2,246		$	2,178						$	2,511		$	2,178

Client assets rollforward
Beginning balance	$	3,002	$	3,226		$	3,061		$	2,998		$	2,897						$	3,226		$	2,733
Net asset flows	138		85			58			59			52							223			61
Market/performance/other impacts	230		(309		)	107			4			49							(79		)	204
Ending balance	$	3,370	$	3,002		$	3,226		$	3,061		$	2,998						$	3,370		$	2,998


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

Page 22



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

	QUARTERLY TRENDS																				SIX MONTHS ENDED JUNE 30,
																	2Q20 Change											2020 Change
	2Q20			1Q20			4Q19			3Q19			2Q19				1Q20		2Q19		2020			2019				2019
INCOME STATEMENT
REVENUE
Principal transactions	$	(2	)	$	(113	)	$	(234	)	$	10		$	(175	)		98	%	99	%	$	(115	)	$	(237	)		51	%
Investment securities gains	26			233			123			78			44				(89	)	(41	)	259			57				354
All other income	(91		)	211			(6		)	32			6				NM		NM		120			63				90
Noninterest revenue	(67		)	331			(117		)	120			(125		)		NM		46		264			(117		)		NM
Net interest income (a)	(687		)	(165		)	(111		)	572			447				(316	)	NM		(852		)	864				NM
TOTAL NET REVENUE (b)	(754		)	166			(228		)	692			322				NM		NM		(588		)	747				NM

Provision for credit losses	4			8			(1		)	—			(2		)		(50	)	NM		12			—				NM

NONINTEREST EXPENSE (c)	147			146			343			281			232				1		(37	)	293			443				(34	)
Income/(loss) before income tax expense/(benefit)	(905		)	12			(570		)	411			92				NM		NM		(893		)	304				NM
Income tax expense/(benefit)	(337		)	137			(209		)	18			(736		)	(f)	NM		54		(200		)	(775		)	(f)	74
NET INCOME/(LOSS)	$	(568	)	$	(125	)	$	(361	)	$	393		$	828			(354	)	NM		$	(693	)	$	1,079			NM

MEMO:
TOTAL NET REVENUE
Treasury and CIO (a)	(671		)	169			102			801			618				NM		NM		(502		)	1,129				NM
Other Corporate	(83		)	(3		)	(330		)	(109		)	(296		)		NM		72		(86		)	(382		)		77
TOTAL NET REVENUE	$	(754	)	$	166		$	(228	)	$	692		$	322			NM		NM		$	(588	)	$	747			NM

NET INCOME/(LOSS)
Treasury and CIO	(550		)	83			22			576			462				NM		NM		(467		)	796				NM
Other Corporate	(18		)	(208		)	(383		)	(183		)	366				91		NM		(226		)	283				NM
TOTAL NET INCOME/(LOSS)	$	(568	)	$	(125	)	$	(361	)	$	393		$	828			(354	)	NM		$	(693	)	$	1,079			NM

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	1,221,980		$	981,937		$	837,618		$	812,333		$	821,330			24		49		$	1,221,980		$	821,330			49
Loans	1,670			1,650			1,649			1,705			1,695				1		(1	)	1,670			1,695				(1	)

Headcount	38,920			38,785			38,033			38,155			37,361				—		4		38,920			37,361				4

SUPPLEMENTAL INFORMATION
TREASURY and CIO
Investment securities gains	$	26		$	233		$	123		$	78		$	44			(89	)	(41	)%	$	259		$	57			354	%
Available-for-sale securities (average)	426,470			372,954			350,100			305,894			248,612				14		72		399,712			237,669				68
Held-to-maturity securities (average)	71,713			46,673			42,125			35,494			30,929				54		132		59,193			31,005				91
Investment securities portfolio (average)	$	498,183		$	419,627		$	392,225		$	341,388		$	279,541			19		78		$	458,905		$	268,674			71
Available-for-sale securities (period-end)	483,752			397,891			348,876			351,599			274,533				22		76		483,752			274,533				76
Held-to-maturity securities, net of allowance for credit losses (period-end) (d)(e)	72,908			71,200			47,540			40,830			30,907				2		136		72,908			30,907				136
Investment securities portfolio, net of allowance for credit losses (period-end) (d)	$	556,660		$	469,091		$	396,416		$	392,429		$	305,440			19		82		$	556,660		$	305,440			82


(a)	Net interest income in the third quarter of 2019 included income related to the unwind of the internal funding provided by Treasury and CIO to CCB upon the sale of certain mortgage loans. Refer to footnote (b) in CCB on page 11 for further information.


(b)	Included tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of $63 million, $61 million, $73 million, $74 million and $81 million for the three months ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019 and June 30, 2019, respectively, and $124 million and $167 million for the six months ended June 30, 2020 and 2019, respectively.


(c)	Included legal expense/(benefit) of $(12) million, $(20) million, $(25) million, $(32) million and $(67) million for the three months ended June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, respectively, and $(32) million and $(157) million for the six months ended June 30, 2020 and 2019, respectively.


(d)	Upon adoption of the CECL accounting guidance, HTM securities are presented net of an allowance for credit losses. At June 30, 2020 and March 31, 2020, the allowance for credit losses on HTM securities was $23 million and $19 million, respectively.


(e)	During the first quarter of 2020, the Firm transferred $26.1 billion of U.S. government-sponsored enterprise and government agency mortgage-backed securities from AFS to HTM for capital management purposes.


(f)	The three and six months ended June 30, 2019 included income tax benefits of $742 million and $825 million, respectively, due to the resolution of certain tax audits.

Page 23



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
											Jun 30, 2020
											Change
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Jun 30,
	2020		2020		2019		2019		2019		2020		2019
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained	$	307,005	$	293,779	$	294,999	$	295,586	$	314,675	5		(2	)
Loans held-for-sale	1,912		1,848		3,002		4,821		1,030		3		86
Total consumer, excluding credit card loans	308,917		295,627		298,001		300,407		315,705		4		(2	)

Credit card loans
Loans retained	141,656		154,021		168,924		159,571		157,568		(8	)	(10	)
Loans held-for-sale	—		—		—		—		8		—		NM
Total credit card loans	141,656		154,021		168,924		159,571		157,576		(8	)	(10	)
Total consumer loans	450,573		449,648		466,925		459,978		473,281		—		(5	)

Wholesale loans (b)
Loans retained	516,787		555,289		481,678		473,730		475,485		(7	)	9
Loans held-for-sale and loans at fair value	11,158		10,438		11,166		11,510		8,123		7		37
Total wholesale loans	527,945		565,727		492,844		485,240		483,608		(7	)	9

Total loans	978,518		1,015,375		959,769		945,218		956,889		(4	)	2
Derivative receivables	74,846		81,648		49,766		55,577		52,878		(8	)	42
Receivables from customers and other (c)	22,403		33,376		33,706		32,236		27,414		(33	)	(18	)
Total credit-related assets	1,075,767		1,130,399		1,043,241		1,033,031		1,037,181		(5	)	4

Lending-related commitments
Consumer, excluding credit card	45,348		41,535		40,169		41,697		40,132		9		13
Credit card (d)	673,836		681,442		650,720		645,880		633,970		(1	)	6
Wholesale	405,946		358,485		413,310		405,470		403,767		13		1
Total lending-related commitments	1,125,130		1,081,462		1,104,199		1,093,047		1,077,869		4		4

Total credit exposure	$	2,200,897	$	2,211,861	$	2,147,440	$	2,126,078	$	2,115,050	—		4

Memo: Total by category
Consumer exposure (e)	$	1,169,757	$	1,172,625	$	1,157,814	$	1,147,573	$	1,147,404	—		2
Wholesale exposures (f)	1,031,140		1,039,236		989,626		978,505		967,646		(1	)	7
Total credit exposure	$	2,200,897	$	2,211,861	$	2,147,440	$	2,126,078	$	2,115,050	—		4

Effective January 1, 2020, the Firm adopted the CECL accounting guidance. In conjunction with the adoption of CECL, the Firm reclassified risk-rated business banking and auto dealer loans and commitments held in CCB from the consumer, excluding credit card portfolio segment to the wholesale portfolio segment. Prior periods have been revised to conform with the current presentation.


(a)	Includes scored loans held in CCB, scored mortgage and home equity loans held in AWM, and scored mortgage loans held in Corporate.


(b)	Includes loans held in CIB, CB, AWM, Corporate as well as risk-rated business banking and auto dealer loans held in CCB for which the wholesale methodology is applied for determining the allowance for loan losses.


(c)	Primarily represents brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable on the Consolidated balance sheets.


(d)	Also includes commercial card lending-related commitments primarily in CB and CIB.


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


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

Page 24



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

																		Jun 30, 2020
																		Change
	Jun 30,				Mar 31,			Dec 31,				Sep 30,			Jun 30,			Mar 31,		Jun 30,
	2020				2020			2019				2019			2019			2020		2019
NONPERFORMING ASSETS (a)
Consumer nonaccrual loans (b)(c)	$	4,246			$	3,877		$	2,928			$	2,986		$	3,077		10	%	38	%

Wholesale nonaccrual loans
Loans retained	3,423				1,957			1,057				1,703			1,423			75		141
Loans held-for-sale and loans at fair value	375				138			95				262			370			172		1
Total wholesale nonaccrual loans	3,798				2,095			1,152				1,965			1,793			81		112

Total nonaccrual loans	8,044			(e)	5,972			4,080				4,951			4,870			35		65

Derivative receivables	108				85			30				26			39			27		177
Assets acquired in loan satisfactions	288				364			387				366			351			(21	)	(18	)
Total nonperforming assets	8,440				6,421			4,497				5,343			5,260			31		60
Wholesale lending-related commitments (d)	762				619			474			(f)	446			465			23		64
Total nonperforming exposure	$	9,202			$	7,040		$	4,971			$	5,789		$	5,725		31		61

NONACCRUAL LOAN-RELATED RATIOS (e)
Total nonaccrual loans to total loans (c)	0.82		%		0.59		%	0.43		%		0.52		%	0.51		%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans (c)	1.37				1.31			0.98				0.99			0.97
Total wholesale nonaccrual loans to total
wholesale loans	0.72				0.37			0.23				0.40			0.37

(a)

At June 30, 2020, March 31, 2020, December 31, 2019, September 30, 2019, and June 30, 2019, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $561 million, $616 million, $961 million, $1.6 billion and $1.8 billion, respectively, that are 90 or more days past due; and (2) real estate owned (“REO”) insured by U.S. government agencies of $13 million, $29 million, $41 million, $50 million and $56 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”). Refer to Note 12 of the Firm’s 2019 Form 10-K for additional information on the Firm’s credit card nonaccrual and charge-off policies.


(b)	Included nonaccrual loans held-for-sale of $2 million, $2 million, and $31 million at December 31, 2019, September 30, 2019, and June 30, 2019, respectively. There were no nonaccrual loans held-for-sale in all other periods presented.


(c)	At June 30, 2020 and March 31, 2020, nonaccrual loans included $1.3 billion and $970 million of PCD loans, respectively. Prior to the adoption of CECL, nonaccrual loans excluded PCI loans as the Firm recognized interest income on each pool of PCI loans as each of the pools was performing.


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


(e)	Generally excludes loans that were under payment deferral or granted other assistance, including amendments or waivers of financial covenants in response to the COVID-19 pandemic.


(f)	The prior period amount has been revised to conform with the current period presentation.

Page 25



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

	QUARTERLY TRENDS																							SIX MONTHS ENDED JUNE 30,
																				2Q20 Change											2020 Change
	2Q20			1Q20				4Q19				3Q19				2Q19				1Q20		2Q19		2020			2019				2019
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	23,244		$	17,295		(a)	$	13,235			$	13,166			$	13,533			34	%	72	%	$	17,295		$	13,445			29	%
Net charge-offs:
Gross charge-offs	1,877			1,902				1,788				1,676				1,704				(1	)	10		3,779			3,346				13
Gross recoveries collected	(317		)	(433		)		(294		)		(305		)		(301		)		27		(5	)	(750		)	(582		)		(29	)
Net charge-offs	1,560			1,469				1,494				1,371				1,403				6		11		3,029			2,764				10
Write-offs of PCI loans	NA			NA				19			(b)	43			(b)	39			(b)	NM		NM		NA			89			(b)	NM
Provision for loan losses	10,407			7,418				1,401				1,479				1,077				40		NM		17,825			2,569				NM
Other	1			—				—				4				(2		)		NM		NM		1			5				(80	)
Ending balance	$	32,092		$	23,244			$	13,123			$	13,235			$	13,166			38		144		$	32,092		$	13,166			144

ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	2,147		$	1,289		(a)	$	1,165			$	1,129			$	1,058			67		103		$	1,289		$	1,055			22
Provision for lending-related commitments	62			858				26				35				72				(93	)	(14	)	920			75				NM
Other	—			—				—				1				(1		)		—		NM		—			(1		)		NM
Ending balance	$	2,209		$	2,147			$	1,191			$	1,165			$	1,129			3		96		$	2,209		$	1,129			96

Total allowance for credit losses	$	34,301		$	25,391			$	14,314			$	14,400			$	14,295			35		140		$	34,301		$	14,295			140

NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans	0.11		%	(0.01		)%		0.15		%		0.11		%		0.09		%						0.05		%	0.11		%
Credit card retained loans	3.33			3.25				3.01				2.95				3.24								3.28			3.23
Total consumer retained loans	1.14			1.15				1.16				1.08				1.11								1.14			1.10
Wholesale retained loans	0.22			0.13				0.13				0.10				0.08								0.18			0.06
Total retained loans	0.64			0.62				0.63				0.58				0.60								0.63			0.59

Memo: Average retained loans
Consumer retained, excluding credit card loans	$	304,179		$	294,156			$	295,258			$	304,385			$	319,424			3		(5	)	$	299,169		$	326,418			(8	)
Credit card retained loans	142,377			162,660				162,112				158,166				153,736				(12	)	(7	)	152,518			152,435				—
Total average retained consumer loans	446,556			456,816				457,370				462,551				473,160				(2	)	(6	)	451,687			478,853				(6	)
Wholesale retained loans	540,248			491,819				476,402				469,942				472,049				10		14		516,032			471,999				9
Total average retained loans	$	986,804		$	948,635			$	933,772			$	932,493			$	945,209			4		4		$	967,719		$	950,852			2


(a)	Upon the adoption of the CECL accounting guidance on January 1, 2020, the Firm recognized a net increase of $4.3 billion (“day 1 impact”) to the allowance for credit losses, of which $4.2 billion relates to the allowance for loan losses and $98 million relates to the allowance for lending-related commitments.


(b)	Prior to the adoption of CECL, write-offs of PCI loans were recorded against the allowance for loan losses when actual losses for a pool exceeded estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan was recognized when the underlying loan was removed from a pool.

Page 26



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

																Jun 30, 2020
																Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,		Jun 30,
	2020			2020			2019			2019			2019			2020		2019
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)	$	263		$	223		$	75		$	88		$	87		18	%	202	%
Portfolio-based	4,609			3,231			1,476			1,475			1,538			43		200
PCI	NA			NA			987			1,256			1,299			NM		NM
Total consumer, excluding credit card	4,872			3,454			2,538			2,819			2,924			41		67
Credit card
Asset-specific (b)	642			530			477			488			472			21		36
Portfolio-based	17,158			14,420			5,206			5,095			4,911			19		249
Total credit card	17,800			14,950			5,683			5,583			5,383			19		231
Total consumer	22,672			18,404			8,221			8,402			8,307			23		173
Wholesale
Asset-specific (c)	757			556			295			399			346			36		119
Portfolio-based	8,663			4,284			4,607			4,434			4,513			102		92
Total wholesale	9,420			4,840			4,902			4,833			4,859			95		94
Total allowance for loan losses	32,092			23,244			13,123			13,235			13,166			38		144
Allowance for lending-related commitments	2,209			2,147			1,191			1,165			1,129			3		96
Total allowance for credit losses	$	34,301		$	25,391		$	14,314		$	14,400		$	14,295		35		140

CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	1.59		%	1.18		%	0.86		%	0.95		%	0.93		%
Credit card allowance to total credit card retained loans	12.57			9.71			3.36			3.50			3.42
Wholesale allowance to total wholesale retained loans	1.82			0.87			1.02			1.02			1.02
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (d)	1.95			0.93			1.08			1.08			1.10
Total allowance to total retained loans	3.32			2.32			1.39			1.42			1.39
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (e)	115			89			87			94			96
Total allowance, excluding credit card allowance, to retained
nonaccrual loans, excluding credit card nonaccrual loans (e)	186			142			187			163			174
Wholesale allowance to wholesale retained nonaccrual loans	275			247			464			284			341
Total allowance to total retained nonaccrual loans	418			398			329			282			295


(a)	Includes modified PCD loans and loans that have been modified or are reasonably expected to be modified in a troubled debt restructuring (“TDR”).


(b)	The asset-specific credit card allowance for loan losses relates to loans that have been modified or are reasonably expected to be modified in a TDR; the Firm calculates this allowance based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.


(c)	Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified or are reasonably expected to be modified in a TDR.


(d)	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.


(e)	Refer to footnote (a) on page 25 for information on the Firm’s nonaccrual policy for credit card loans.

Page 27

JPMORGAN CHASE & CO.

NON-GAAP FINANCIAL 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)	Pre-provision profit is a non-GAAP financial measure which represents total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.

(c)

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 utilized by the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.

(d)

The ratio of the wholesale and CIB’s 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 respective allowance coverage ratio.

(e)In addition to reviewing net interest income and the net 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																			SIX MONTHS ENDED JUNE 30,
																2Q20 Change										2020 Change
(in millions, except rates)	2Q20			1Q20			4Q19			3Q19			2Q19			1Q20		2Q19		2020			2019			2019

Net interest income - reported	$	13,853		$	14,439		$	14,166		$	14,228		$	14,398		(4	)%	(4	)%	$	28,292		$	28,851		(2	)%
Fully taxable-equivalent adjustments	107			110			123			127			138			(3	)	(22	)	217			281			(23	)
Net interest income - managed basis (a)	$	13,960		$	14,549		$	14,289		$	14,355		$	14,536		(4	)	(4	)	$	28,509		$	29,132		(2	)
Less: CIB Markets net interest income	2,536			1,596			1,149			723			624			59		306		4,132			1,248			231
Net interest income excluding CIB Markets (a)	$	11,424		$	12,953		$	13,140		$	13,632		$	13,912		(12	)	(18	)	$	24,377		$	27,884		(13	)

Average interest-earning assets	$	2,819,855		$	2,465,732		$	2,377,741		$	2,365,154		$	2,339,094		14		21		$	2,642,794		$	2,319,105		14
Less: Average CIB Markets interest-earning assets	795,677			736,035			676,763			690,593			673,480			8		18		765,856			661,397			16
Average interest-earning assets excluding CIB Markets	$	2,024,178		$	1,729,697		$	1,700,978		$	1,674,561		$	1,665,614		17		22		$	1,876,938		$	1,657,708		13

Net yield on average interest-earning assets - managed basis	1.99		%	2.37		%	2.38		%	2.41		%	2.49		%					2.17		%	2.53		%
Net yield on average CIB Markets interest-earning assets	1.28			0.87			0.67			0.42			0.37							1.08			0.38
Net yield on average interest-earning assets excluding CIB Markets	2.27			3.01			3.06			3.23			3.35							2.61			3.39

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

Page 28

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