JPMorgan Chase & Co. 10Q 2023 Q3 Quarterly report

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly report pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

For the quarterly period ended

Commission file

September 30, 2023

number

1-5805

JPMorgan Chase & Co.

(Exact name of registrant as specified in its charter)


Delaware		13-2624428
(State or other jurisdiction of incorporation or organization)		(I.R.S. employer identification no.)

383 Madison Avenue,
New York,	New York	10179
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (212) 270-6000

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock	JPM	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-Cumulative Preferred Stock, Series DD	JPM PR D	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-Cumulative Preferred Stock, Series EE	JPM PR C	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-Cumulative Preferred Stock, Series GG	JPM PR J	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.55% Non-Cumulative Preferred Stock, Series JJ	JPM PR K	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.625% Non-Cumulative Preferred Stock, Series LL	JPM PR L	The New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.20% Non-Cumulative Preferred Stock, Series MM	JPM PR M	The New York Stock Exchange
Alerian MLP Index ETNs due May 24, 2024	AMJ	NYSE Arca, Inc.
Guarantee of Callable Fixed Rate Notes due June 10, 2032 of JPMorgan Chase Financial Company LLC	JPM/32	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

Number of shares of common stock outstanding as of September 30, 2023: 2,891,008,341

FORM 10-Q

TABLE OF CONTENTS


Part I – Financial information		Page
Item 1.	Financial Statements.
	Consolidated Financial Statements – JPMorgan Chase & Co.:
	Consolidated statements of income (unaudited) for the three and nine months ended September 30, 2023 and 2022	96
	Consolidated statements of comprehensive income (unaudited) for the three and nine months ended September 30, 2023 and 2022	97
	Consolidated balance sheets (unaudited) at September 30, 2023 and December 31, 2022	98
	Consolidated statements of changes in stockholders’ equity (unaudited) for the three and nine months ended September 30, 2023 and 2022	99
	Consolidated statements of cash flows (unaudited) for the nine months ended September 30, 2023 and 2022	100
	Notes to Consolidated Financial Statements (unaudited)	101
	Report of Independent Registered Public Accounting Firm	197
	Consolidated Average Balance Sheets, Interest and Rates (unaudited) for the three and nine months ended September 30, 2023 and 2022	198
	Glossary of Terms and Acronyms and Line of Business Metrics	200
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.
	Consolidated Financial Highlights	3
	Introduction	4
	Executive Overview	5
	Consolidated Results of Operations	10
	Consolidated Balance Sheets and Cash Flows Analysis	16
	Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures	19
	Business Segment Results	21
	Firmwide Risk Management	47
	Capital Risk Management	48
	Liquidity Risk Management	54
	Consumer Credit Portfolio	65
	Wholesale Credit Portfolio	70
	Investment Portfolio Risk Management	83
	Market Risk Management	84
	Country Risk Management	90
	Critical Accounting Estimates Used by the Firm	91
	Accounting and Reporting Developments	94
	Forward-Looking Statements	95
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	209
Item 4.	Controls and Procedures.	209
Part II – Other information
Item 1.	Legal Proceedings.	209
Item 1A.	Risk Factors.	209
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	209
Item 3.	Defaults Upon Senior Securities.	210
Item 4.	Mine Safety Disclosures.	210
Item 5.	Other Information.	210
Item 6.	Exhibits.	212

JPMorgan Chase & Co.

Consolidated financial highlights (unaudited)


As of or for the period ended, (in millions, except per share, ratio, headcount data and where otherwise noted)																	Nine months ended Sept 30,
	3Q23				2Q23			1Q23			4Q22			3Q22			2023				2022
Selected income statement data
Total net revenue	$	39,874			$	41,307		$	38,349		$	34,547		$	32,716		$	119,530			$	94,148
Total noninterest expense	21,757				20,822			20,107			19,022			19,178			62,686				57,118
Pre-provision profit(a)	18,117				20,485			18,242			15,525			13,538			56,844				37,030
Provision for credit losses	1,384				2,899			2,275			2,288			1,537			6,558				4,101
Income before income tax expense	16,733				17,586			15,967			13,237			12,001			50,286				32,929
Income tax expense	3,582				3,114			3,345			2,229			2,264			10,041				6,261
Net income	$	13,151			$	14,472		$	12,622		$	11,008		$	9,737		$	40,245			$	26,668

Earnings per share data
Net income: Basic	$	4.33			$	4.76		$	4.11		$	3.58		$	3.13		$	13.20			$	8.53
Diluted	4.33				4.75			4.10			3.57			3.12			13.18				8.51
Average shares: Basic	2,927.5				2,943.8			2,968.5			2,962.9			2,961.2			2,946.6				2,966.8
Diluted	2,932.1				2,948.3			2,972.7			2,967.1			2,965.4			2,951.0				2,970.9

Market and per common share data
Market capitalization	419,254				422,661			380,803			393,484			306,520			419,254				306,520
Common shares at period-end	2,891.0				2,906.1			2,922.3			2,934.3			2,933.2			2,891.0				2,933.2
Book value per share	100.30				98.11			94.34			90.29			87.00			100.30				87.00
Tangible book value per share (“TBVPS”)(a)	82.04				79.90			76.69			73.12			69.90			82.04				69.90
Cash dividends declared per share	1.05				1.00			1.00			1.00			1.00			3.05				3.00

Selected ratios and metrics
Return on common equity (“ROE”)(b)	18		%		20		%	18		%	16		%	15		%	19		%		14		%
Return on tangible common equity (“ROTCE”)(a)(b)	22				25			23			20			18			23				17
Return on assets(b)	1.36				1.51			1.38			1.16			1.01			1.42				0.92
Overhead ratio	55				50			52			55			59			52				61
Loans-to-deposits ratio	55				54			47			49			46			55				46
Firm Liquidity coverage ratio (“LCR”) (average)(c)	112				112			114			112			113			112				113
JPMorgan Chase Bank, N.A. LCR (average)(c)	123				129			140			151			165			123				165
Common equity Tier 1 (“CET1”) capital ratio(d)	14.3				13.8			13.8			13.2			12.5			14.3				12.5
Tier 1 capital ratio(d)	15.9				15.4			15.4			14.9			14.1			15.9				14.1
Total capital ratio(d)	17.8				17.3			17.4			16.8			16.0			17.8				16.0
Tier 1 leverage ratio(c)(d)	7.1				6.9			6.9			6.6			6.2			7.1				6.2
Supplementary leverage ratio (“SLR”)(c)(d)	6.0				5.8			5.9			5.6			5.3			6.0				5.3

Selected balance sheet data (period-end)
Trading assets	$	601,993			$	636,996		$	578,892		$	453,799		$	506,487		$	601,993			$	506,487
Investment securities, net of allowance for credit losses	585,380				612,203			610,075			631,162			618,246			585,380				618,246
Loans	1,310,059				1,300,069			1,128,896			1,135,647			1,112,633			1,310,059				1,112,633
Total assets	3,898,333				3,868,240			3,744,305			3,665,743			3,773,884			3,898,333				3,773,884
Deposits	2,379,526				2,398,962			2,377,253			2,340,179			2,408,615			2,379,526				2,408,615
Long-term debt	362,793				364,078			295,489			295,865			287,473			362,793				287,473
Common stockholders’ equity	289,967				285,112			275,678			264,928			255,180			289,967				255,180
Total stockholders’ equity	317,371				312,516			303,082			292,332			288,018			317,371				288,018
Headcount	308,669			(e)	300,066			296,877			293,723			288,474			308,669			(e)	288,474

Credit quality metrics
Allowances for credit losses	$	24,155			$	24,288		$	22,774		$	22,204		$	20,797		$	24,155			$	20,797
Allowance for loan losses to total retained loans	1.73		%		1.75		%	1.85		%	1.81		%	1.70		%	1.73		%		1.70		%
Nonperforming assets	$	8,131			$	7,838		$	7,418		$	7,247		$	7,243		$	8,131			$	7,243
Net charge-offs	1,497				1,411			1,137			887			727			4,045				1,966
Net charge-off rate	0.47		%		0.47		%	0.43		%	0.33		%	0.27		%	0.46		%		0.25		%

As of and for the period ended September 30, 2023, the results of the Firm include the impact of First Republic. Refer to Business Segment Results on page 23 and Note 28 for additional information.

(a)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 Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 19-20 for a further discussion of these measures.

(b)Ratios are based upon annualized amounts.

(c)For the nine months ended September 30, 2023 and 2022, the percentage represents average ratios for the three months ended September 30, 2023 and 2022.

(d)The ratios reflect the Current Expected Credit Losses (“CECL”) capital transition provisions. Refer to Capital Risk Management on pages 48-53 of this Form 10-Q and pages 86-96 of JPMorgan Chase’s 2022 Form 10-K for additional information.

(e)Includes 4,774 individuals associated with First Republic who became employees effective July 2, 2023.

INTRODUCTION

The following is Management’s discussion and analysis of the financial condition and results of operations (“MD&A”) of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) for the third quarter of 2023.

This Quarterly Report on Form 10-Q for the third quarter of 2023 (“Form 10-Q”) should be read together with JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 2022 (“2022 Form 10-K”). Refer to the Glossary of terms and acronyms and line of business metrics on pages 200-208 for definitions of terms and acronyms used throughout this Form 10-Q.

This Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-Q and are subject to significant risks and uncertainties. Refer to Forward-looking Statements on page 95 of this Form 10-Q; Part I, Item 1A, Risk Factors on pages 9-32 of the 2022 Form 10-K; and Part II, Item 1A, Risk Factors on page 209 of this Form 10-Q for a discussion of certain of those risks and uncertainties and the factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results will be in line with any outlook information set forth herein, and the Firm does not undertake to update any forward-looking statements.

JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $3.9 trillion in assets and $317.4 billion in stockholders’ equity as of September 30, 2023. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers, predominantly in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally.

JPMorgan Chase’s principal bank subsidiary is JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank, N.A.”), a national banking association with U.S. branches in 48 states and Washington, D.C. JPMorgan Chase’s principal non-bank subsidiary is J.P. Morgan Securities LLC (“J.P. Morgan Securities”), a U.S. broker-dealer. The bank and non-bank subsidiaries of JPMorgan Chase operate nationally as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. The Firm’s principal operating subsidiaries outside the U.S. are J.P. Morgan Securities plc and J.P. Morgan SE (“JPMSE”), which are subsidiaries of JPMorgan Chase Bank, N.A. and are based in the United Kingdom (“U.K.”) and Germany, respectively.

For management reporting purposes, the Firm’s activities are organized into four major reportable business segments, as well as a Corporate segment. The Firm’s consumer business segment is Consumer & Community Banking (“CCB”). The Firm’s wholesale business segments are the Corporate & Investment Bank (“CIB”), Commercial Banking (“CB”), and Asset & Wealth Management (“AWM”). Refer to Business Segment Results on pages 21-46 and Note 27 of this Form 10-Q, and Note 32 of JPMorgan Chase’s 2022 Form 10-K, for a description of the Firm’s business segments and the products and services they provide to their respective client bases. On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the “First Republic acquisition”) from the Federal Deposit Insurance Corporation (“FDIC”). Refer to Note 28 for additional information.

The Firm's website is www.jpmorganchase.com. JPMorgan Chase makes available on its website, free of charge, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after it electronically files or furnishes such material to the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov. JPMorgan Chase makes new and important information about the Firm available on its website at https://www.jpmorganchase.com, including on the Investor Relations section of its website at https://www.jpmorganchase.com/ir. Information on the Firm's website is not incorporated by reference into this Form 10-Q or the Firm’s other filings with the SEC.

EXECUTIVE OVERVIEW

This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of this Form 10-Q. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, this Form 10-Q and the 2022 Form 10-K should be read together and in their entirety.


Financial performance of JPMorgan Chase
(unaudited) As of or for the period ended, (in millions, except per share data and ratios)	Three months ended September 30,								Nine months ended September 30,
	2023			2022			Change		2023			2022			Change
Selected income statement data
Noninterest revenue	$	17,148		$	15,198		13	%	$	54,314		$	47,630		14	%
Net interest income	22,726			17,518			30		65,216			46,518			40
Total net revenue	39,874			32,716			22		119,530			94,148			27
Total noninterest expense	21,757			19,178			13		62,686			57,118			10
Pre-provision profit	18,117			13,538			34		56,844			37,030			54
Provision for credit losses	1,384			1,537			(10)		6,558			4,101			60
Net income	13,151			9,737			35		40,245			26,668			51
Diluted earnings per share	4.33			3.12			39		13.18			8.51			55
Selected ratios and metrics
Return on common equity	18		%	15		%			19		%	14		%
Return on tangible common equity	22			18					23			17
Book value per share	$	100.30		$	87.00		15		$	100.30		$	87.00		15
Tangible book value per share	82.04			69.90			17		82.04			69.90			17
Capital ratios(a)
CET1 capital	14.3		%	12.5		%			14.3		%	12.5		%
Tier 1 capital	15.9			14.1					15.9			14.1
Total capital	17.8			16.0					17.8			16.0
Memo:
NII excluding Markets(b)	$	23,173		$	16,923		37		$	66,479		$	42,357		57
NIR excluding Markets(b)	10,932			9,797			12		33,963			31,040			9
Markets(b)	6,581			6,771			(3)		21,981			23,314			(6)
Total net revenue - managed basis	$	40,686		$	33,491		21		$	122,423		$	96,711		27

As of and for the period ended September 30, 2023, the results of the Firm include the impact of First Republic. Refer to page 23 and Note 28 for additional information.

(a)The ratios reflect the CECL capital transition provisions. Refer to Capital Risk Management on pages 48-53 of this Form 10-Q and pages 86-96 of JPMorgan Chase’s 2022 Form 10-K for additional information.

(b)NII and NIR refer to net interest income and noninterest revenue, respectively. Markets consists of CIB's Fixed Income Markets and Equity Markets businesses.

Comparisons noted in the sections below are for the third quarter of 2023 versus the third quarter of 2022, unless otherwise specified.

Firmwide overview

For the third quarter of 2023, JPMorgan Chase reported net income of $13.2 billion, up 35%, earnings per share of $4.33, ROE of 18% and ROTCE of 22%. The Firm's results for the third quarter of 2023 included investment securities losses of $669 million in Treasury and CIO, and legal expense of $665 million, predominantly in CIB.

•Total net revenue was $39.9 billion, up 22%, reflecting:

–Net interest income ("NII") of $22.7 billion, up 30%, driven by higher rates, the impact of First Republic and higher revolving balances in Card Services, partially offset by lower average deposit balances and lower

Markets net interest income. NII excluding Markets was $23.2 billion, up 37%.

–Noninterest revenue ("NIR") was $17.1 billion, up 13%, driven by higher Markets noninterest revenue, the impact of First Republic, higher asset management fees and lower net investment securities losses in Treasury and CIO, partially offset by impairment losses on equity investments in CIB.

–Total Markets revenue declined reflecting lower Markets NII, predominantly offset by higher NIR.

•Noninterest expense was $21.8 billion, up 13%, predominantly driven by the impact of First Republic, higher compensation expense, including growth in front office and technology headcount as well as wage inflation, and higher legal expense.

•The provision for credit losses was $1.4 billion, reflecting $1.5 billion of net charge-offs and a net reduction in the allowance for credit losses of $113 million. The net reduction in the allowance for credit losses reflected:

–$184 million in wholesale, predominantly driven by the impact of changes in the loan and lending-related commitment portfolios in CIB, partially offset by the net effect of changes in the Firm's macroeconomic scenarios,

partially offset by

–a net addition of $58 million in consumer, primarily driven by CCB, comprised of $301 million in Card Services, predominantly offset by a $250 million net reduction in Home Lending.

Net charge-offs increased $770 million, predominantly driven by CCB, primarily Card Services.

The prior year included an $808 million net addition to the allowance for credit losses and net charge-offs of $727 million.

•The total allowance for credit losses was $24.2 billion at September 30, 2023. The Firm had an allowance for loan losses to retained loans coverage ratio of 1.73%, compared with 1.70% in the prior year.

•The Firm’s nonperforming assets totaled $8.1 billion at September 30, 2023, up 12%, driven by wholesale nonaccrual loans, which reflects the impact of downgrades. Refer to Wholesale Credit Portfolio and Consumer Credit Portfolio on pages 70-79 and pages 65-69, respectively, for additional information.

•Firmwide average loans of $1.3 trillion were up 17%, predominantly driven by higher loans in CCB and CB, primarily as a result of First Republic.

•Firmwide average deposits of $2.4 trillion were down 4%, driven by:

–continued migration in AWM into higher-yielding investments; a net decline in CCB reflecting higher customer spending in existing accounts; and continued deposit attrition in CB,

partially offset by

–increases in CCB associated with First Republic, in Corporate related to the Firm's international consumer initiatives, and in CIB due to net issuances of structured notes as a result of client demand.

Refer to Liquidity Risk Management on pages 54-61 for additional information.

Selected capital and other metrics

•CET1 capital was $242 billion, and the Standardized and Advanced CET1 ratios were 14.3% and 14.5%, respectively.

•SLR was 6.0%.

•TBVPS grew 17%, ending the third quarter of 2023 at $82.04.

•As of September 30, 2023, the Firm had eligible end-of-period High Quality Liquid Assets (“HQLA”) of approximately $796 billion and unencumbered marketable securities with a fair value of approximately $590 billion, resulting in approximately $1.4 trillion of liquidity sources. Refer to Liquidity Risk Management on pages 54-61 for additional information.

Refer to Consolidated Results of Operations and Consolidated Balance Sheets Analysis on pages 10-15 and pages 16-18, respectively, for a further discussion of the Firm's results; and Business Segment Results on page 23 and Note 28 for additional information on the First Republic acquisition.

Pre-provision profit, ROTCE, TCE, TBVPS, NII and NIR excluding Markets, and total net revenue on a managed basis are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 19-20 for a further discussion of each of these measures.

Business segment highlights

Selected business metrics for each of the Firm’s four lines of business ("LOB"), including the impact of First Republic, are presented below for the third quarter of 2023.


CCB ROE 41%						•Average deposits down 3%; client investment assets up 43% •Average loans up 27% year-over-year ("YoY") and 9% quarter-over-quarter ("QoQ"); Card Services net charge-off rate of 2.49% •Debit and credit card sales volume(a) up 8% •Active mobile customers(b) up 9%
CIB ROE 11%						•#1 ranking for Global Investment Banking fees with 8.6% wallet share year-to-date •Total Markets revenue of $6.6 billion, down 3%, with Fixed Income Markets up 1% and Equity Markets down 10%
CB ROE 25%						•Gross Investment Banking and Markets revenue of $821 million, up 8% •Average loans up 24% YoY and 4% QoQ; average deposits down 7%
AWM ROE 32%						•Assets under management ("AUM") of $3.2 trillion, up 22% •Average loans up 3% YoY and 2% QoQ; average deposits down 20%

(a)Excludes Commercial Card.

(b)Users of all mobile platforms who have logged in within the past 90 days. As of September 30, 2023, excludes First Republic.

Refer to the Business Segment Results on pages 21-46 for a detailed discussion of results by business segment.

Credit provided and capital raised

JPMorgan Chase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during the first nine months of 2023, consisting of:


$ 1.7 trillion						Total credit provided and capital raised (including loans and commitments)

$182 billion						Credit for consumers

$27 billion						Credit for U.S. small businesses

$775 billion						Credit for corporations

$709 billion						Capital for corporate clients and non-U.S. government entities

$37 billion						Credit and capital for nonprofit and U.S. government entities(a)

(a)Includes states, municipalities, hospitals and universities.

Outlook

These current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-Q, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 95 of this Form 10-Q; Part I, Item 1A, Risk Factors on pages 9-32 of the 2022 Form 10-K; and Part II, Item 1A, Risk Factors on page 209 of this Form 10-Q for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results in 2023 will be in line with the outlook information set forth below, and the Firm does not undertake to update any forward-looking statements.

JPMorgan Chase’s current outlook for full-year 2023 should be viewed against the backdrop of the global and U.S. economies, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the U.S. and other countries where the Firm does business. Each of these factors will affect the performance of the Firm. The Firm will continue to make appropriate adjustments to its businesses and operations in response to ongoing developments in the business, economic, regulatory and legal environments in which it operates.

In May 2023, the FDIC issued a notice of proposed rulemaking recommending a special assessment related to the systemic risk determination made on March 12, 2023, to recover losses to the Deposit Insurance Fund ("DIF") arising from the protection of uninsured depositors resulting from recent bank resolutions. In its current form, the rule would impose a special assessment at an annual rate of 12.5 basis points on certain banks’ estimated uninsured deposits reported as of December 31, 2022. If this rule remains as proposed, the Firm expects to recognize an estimated assessment expense of approximately $3 billion (pre-tax) when the rule is finalized.

Full-year 2023

•Management expects net interest income to be approximately $88.5 billion and net interest income excluding Markets to be approximately $89 billion, market dependent.

•Management expects adjusted expense to be approximately $84 billion, market dependent and excluding any FDIC special assessment.

•Management expects the net charge-off rate in Card Services to be approximately 2.5%.

Net interest income excluding Markets and adjusted expense are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 19-20.

Business Developments

First Republic acquisition

JPMorgan Chase’s Consolidated Financial Statements as of and for the period ended September 30, 2023 reflect the impact of First Republic. Where meaningful to the disclosure, the impact of the First Republic acquisition, as well as subsequent related business and activities, are disclosed in various sections of this Form 10-Q. The Firm continues to convert certain operations, and to integrate clients, products and services, associated with the First Republic acquisition to align with the Firm’s businesses and operations. The Firm also continues to evaluate to which segments certain clients, products and services, primarily deposits, should be allocated. Accordingly, reporting classifications and allocations may change in future periods, including across the Firm's segments.

Refer to Note 28 and page 23 for additional information related to First Republic.

Current market and economic conditions

Refer to Part I, Item 1A, Risk Factors on pages 9-32 of JPMorgan Chase's 2022 Form 10-K and Part II, Item 1A, Risk Factors on page 209 of this Form 10-Q for a discussion of material risk factors that could affect the Firm. These risk factors include potential impacts to the Firm associated with current market and economic conditions, including inflationary pressures, higher interest rates and ongoing geopolitical tensions and hostilities, any or all of which could result in additional market disruption, government actions (including with respect to monetary policies), continuing impacts to global supply chains, and other geopolitical risks.

CONSOLIDATED RESULTS OF OPERATIONS

This section provides a comparative discussion of JPMorgan Chase’s Consolidated Results of Operations on a reported basis for the three and nine months ended September 30, 2023 and 2022, unless otherwise specified. Factors that relate primarily to a single business segment are discussed in more detail within that business segment's results. Refer to pages 91-93 of this Form 10-Q and pages 149-152 of JPMorgan Chase’s 2022 Form 10-K for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.


Revenue
	Three months ended September 30,						Nine months ended September 30,
(in millions)	2023		2022		Change		2023		2022		Change
Investment banking fees	$	1,722	$	1,674	3	%	$	4,884	$	5,268	(7)	%
Principal transactions	6,210		5,383		15		20,735		15,478		34
Lending- and deposit-related fees	2,039		1,731		18		5,487		5,443		1
Asset management fees	3,904		3,495		12		11,143		10,664		4
Commissions and other fees	1,705		1,574		8		5,139		5,007		3

Investment securities losses	(669)		(959)		30		(2,437)		(1,506)		(62)
Mortgage fees and related income	414		314		32		913		1,152		(21)
Card income	1,209		1,086		11		3,537		3,194		11
Other income(a)(b)(c)	614		900		(32)		4,913		2,930		68
Noninterest revenue	17,148		15,198		13		54,314		47,630		14
Net interest income	22,726		17,518		30		65,216		46,518		40
Total net revenue	$	39,874	$	32,716	22	%	$	119,530	$	94,148	27	%

(a) Included operating lease income of $695 million and $870 million for the three months ended September 30, 2023 and 2022, respectively, and $2.2 billion and $2.9 billion for the nine months ended September 30, 2023 and 2022, respectively.

(b) Included measurement period adjustments of $100 million in the three months ended September, 2023, increasing the estimated bargain purchase gain to $2.8 billion in Corporate, for the nine months ended September 30, 2023, associated with the First Republic acquisition. Refer to Business Segment Results on page 23, and Notes 6 and 28 for additional information.

Quarterly results

Investment banking fees in CIB included:

•higher debt underwriting fees driven by higher issuance activity in high-yield bonds and higher originations in leveraged loans reflecting wallet share gains, partially offset by lower issuance activity in high-grade bonds impacted by higher rates, and

•lower advisory fees due to a lower number of completed transactions, reflecting the lower level of announced deals in prior periods amid a challenging environment.

Refer to Business Segment Results and CIB segment results on pages 21-46 and pages 29-35, respectively, and Note 6 for additional information.

Principal transactions revenue increased, reflecting in CIB:

•higher principal transactions revenue in Equity Markets, primarily in Equity Derivatives and Prime Finance. The higher principal transactions revenue in Equities was more than offset by lower Equity Markets net interest income, primarily due to higher funding costs, and

•in Fixed Income Markets, principal transactions revenue was relatively flat, primarily due to lower revenue in Rates and Currencies & Emerging Markets, offset by higher revenue in Securitized Products and Fixed Income Financing.

The increase in principal transactions revenue also included the impact of higher short-term cash deployment activities in Treasury and CIO as a result of the current interest rate environment.

Principal transactions revenue in CIB generally has offsets across other revenue lines, including net interest income. The Firm assesses the performance of its Markets business on a total net revenue basis.

Refer to CIB and Corporate segment results on pages 29-35 and pages 45-46, respectively, and Note 6 for additional information.

Lending- and deposit-related fees increased due to:

•higher lending-related revenue driven by the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, predominantly in AWM and CB,

partially offset by

•lower cash management fees in CIB and CB driven by the higher level of credits earned by clients that reduce such fees.

Refer to CIB, CB and AWM segment results on pages 29-35, pages 36-39 and pages 40-44, respectively, and Note 6 and Note 28 for additional information on the First Republic acquisition.

Asset management fees increased driven by strong net inflows and higher average market levels in AWM and CCB, and the impact of First Republic in CCB.

Refer to CCB and AWM segment results on pages 24-28 and pages 40-44, respectively, and Note 6 for additional information; and Business Segment Results on page 23 for additional information on First Republic.

Commissions and other fees increased largely driven by higher commissions on brokerage activities and higher administration fees.

Refer to CIB and AWM segment results on pages 29-35 and pages 40-44, respectively, and Note 6 for additional information.

Investment securities losses reflected lower net losses on sales of U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio in Treasury and CIO. Refer to Corporate segment results on pages 45-46 and Note 10 for additional information.

Mortgage fees and related income increased in Home Lending, reflecting the impact of First Republic, higher production revenue, and higher net mortgage servicing revenue.

Refer to CCB segment results on pages 24-28 and Notes 6 and 15 for additional information.

Card income increased in CIB and CB, reflecting growth in merchant processing volume in J.P. Morgan Payments.

Card income increased in CCB, reflecting higher net interchange from the impact of an increase in debit and credit card sales volume, and higher annual fees, predominantly offset by higher amortization related to new account origination costs.

Refer to Business Segment Results, CCB, CIB and CB segment results on pages 21-46, pages 24-28, pages 29-35 and pages 36-39, respectively, Critical Accounting Estimates on pages 91-93, and Note 6 for additional information.

Other income decreased, reflecting:

•lower auto operating lease income in CCB due to a decline in volume, and

•the net impact of equity investments in CIB, including impairment losses in the current period,

largely offset by

•measurement period adjustments of $100 million resulting in an increase to the estimated bargain purchase gain associated with the First Republic acquisition.

Refer to Business Segment Results on page 23 and Note 28 for additional information on the First Republic acquisition; and Note 5 for additional information on net investment hedges.

Net interest income increased driven by higher rates, the impact of First Republic, and higher revolving balances in Card Services, partially offset by lower average deposit balances and lower Markets net interest income.

The Firm’s average interest-earning assets were $3.3 trillion, down $13 billion, and the yield was 5.32%, up 227 basis points (“bps”). The net yield on these assets, on an FTE basis, was 2.72%, an increase of 63 bps. The net yield excluding Markets was 3.89%, up 108 bps.

Refer to the Consolidated average balance sheets, interest and rates schedule on page 198 for further information; and Business Segment Results on page 23 and Note 28 for additional information on the First Republic acquisition.

Net yield excluding Markets is a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 19-20 for a further discussion of Net yield excluding Markets.

Year-to-date results

Investment banking fees decreased, reflecting in CIB:

•lower debt underwriting fees as challenging market conditions, primarily in the first half of the year, resulted in lower issuance activity across leveraged loans, high-grade bonds and investment-grade loans. This was partially offset by higher issuance activity in high-yield bonds driven by higher industry-wide issuance, and

•lower advisory fees due to a lower number of completed transactions, reflecting the lower level of announced deals in prior periods amid a challenging environment.

Principal transactions revenue increased, reflecting in CIB:

•higher Equity Markets net revenue in principal transactions, primarily in Prime Finance and Equity Derivatives,

•higher Fixed Income Markets net revenue in principal transactions, primarily in Securitized Products and Fixed Income Financing, largely offset by lower revenue in Rates and Currencies & Emerging Markets,

–the increase in Markets principal transactions revenue was more than offset by a decline in Markets net interest income, primarily due to higher funding costs

•losses of $178 million in Credit Adjustments & Other, largely driven by losses on certain components of fair value option elected liabilities, compared with losses of $773 million in the prior year.

The increase in principal transactions revenue also included the impact of higher short-term cash deployment activities in Treasury and CIO as a result of the current interest rate environment.

Lending- and deposit-related fees was relatively flat, reflecting:

•higher lending-related revenue driven by the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, predominantly in AWM and CB,

predominantly offset by

•lower cash management fees in CIB and CB driven by the higher level of credits earned by clients that reduce such fees.

Asset management fees increased driven by the impact of First Republic, higher average market levels and strong net inflows in CCB, and in AWM strong net inflows as well as the removal of most money market fund fee waivers.

Commissions and other fees increased driven by higher commissions on travel-related services and annuity sales in CCB.

Investment securities losses reflected higher net losses on sales of U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio in both periods in Treasury and CIO.

Mortgage fees and related income decreased in Home Lending, reflecting:

•lower production revenue due to a decline in volume, and

•lower net mortgage servicing revenue due to lower net gains in MSR risk management and lower operating revenue.

Card income increased in CIB and CB, reflecting growth in merchant processing volume and Commercial Card transactions in J.P. Morgan Payments.

Card income increased in CCB, reflecting

•higher net interchange from the impact of an increase in debit and credit card sales volume, and a reduction in rewards costs and partner payments in the first quarter of 2023 related to a periodic tax refund on airline miles redeemed, largely offset by an increase to the rewards liability due to adjustments to certain reward program terms in the second quarter of 2023, and

•lower other card income driven by higher amortization related to new account origination costs, predominantly offset by higher annual fees.

Other income increased, reflecting:

•the $2.8 billion estimated bargain purchase gain associated with the First Republic acquisition in Corporate,

•the impact of net investment hedges, primarily in the first half of 2023, in Treasury and CIO, and

•a gain of $339 million recognized in the first quarter of 2023 in AWM on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% interest in the entity,

partially offset by

•lower auto operating lease income in CCB due to a decline in volume,

•the net impact of equity investments in CIB, including impairment losses in the third quarter of 2023,

•the absence of proceeds from an insurance settlement in the prior year,

•the absence of a gain in the prior year on an equity-method investment received in partial satisfaction of a loan in CB, and

•lower net gains related to certain other Corporate investments.

Net interest income increased driven by higher rates, higher revolving balances in Card Services, and the impact of First Republic, partially offset by lower Markets net interest income and lower average deposit balances.

The Firm’s average interest-earning assets were $3.3 trillion, down $80 billion, and the yield was 5.01%, up 263 bps. The net yield on these assets, on an FTE basis, was 2.66%, an increase of 81 bps. The net yield excluding Markets was 3.84%, up 150 bps.


Provision for credit losses
	Three months ended September 30,						Nine months ended September 30,
(in millions)	2023		2022		Change		2023		2022		Change
Consumer, excluding credit card	$	(75)	$	(69)	(9)	%	$	728	$	166	339	%
Credit card	1,527		592		158	%	4,073		1,828		123
Total consumer	1,452		523		178		4,801		1,994		141
Wholesale	(81)		1,000		NM		1,730		2,088		(17)
Investment securities	13		14		(7)		27		19		42
Total provision for credit losses	$	1,384	$	1,537	(10)	%	$	6,558	$	4,101	60	%

Quarterly results

The provision for credit losses was $1.4 billion, reflecting $1.5 billion of net charge-offs and a $113 million net reduction in the allowance for credit losses.

Net charge-offs increased $770 million, predominantly driven by Card Services in CCB, as the portfolio continues to normalize to pre-pandemic levels.

The net reduction in the allowance for credit losses of $113 million consisted of:

•$184 million in wholesale, predominantly driven by the impact of changes in the loan and lending-related commitment portfolios in CIB, partially offset by the net effect of changes in the Firm's macroeconomic scenarios,

partially offset by

•a net addition of $58 million in consumer, primarily driven by CCB, comprised of $301 million in Card Services, predominantly offset by a $250 million net reduction in Home Lending. The net addition in Card Services was driven by loan growth, including an increase in revolving balances, largely offset by changes in the Firm's macroeconomic outlook including a lower forecasted unemployment rate, and reduced borrower uncertainty. The net reduction in Home Lending was driven by improvements in the outlook for home prices.

The prior year included an $808 million net addition to the allowance for credit losses and net charge-offs of $727 million.

Refer to CCB segment results on pages 24-28, CIB on pages 29-35, CB on pages 36-39, AWM on pages 40-44, Corporate on pages 45-46; Allowance for Credit Losses on pages 80-82; Notes 10 and 13 for additional information on the credit portfolio and the allowance for credit losses; and Business Segment Results on page 23 for additional information on First Republic.

Year-to-date results

The provision for credit losses was $6.6 billion, reflecting $4.0 billion of net charge-offs and a $2.5 billion net addition to the allowance for credit losses.

Net charge-offs increased $2.1 billion, primarily driven by Card Services in CCB, as the portfolio continues to normalize to pre-pandemic levels.

The net addition to the allowance for credit losses consisted of:

•$707 million in consumer, predominantly driven by CCB, comprised of $801 million in Card Services, partially offset by a $200 million net reduction in Home Lending. The net addition in Card Services was driven by loan growth, including an increase in revolving balances, partially offset by reduced borrower uncertainty and the net effect of changes in the Firm's weighted average macroeconomic outlook. The net reduction in Home Lending was largely driven by improvements in the outlook for home prices, and

•$616 million in wholesale, driven by net downgrade activity, the net effect of changes in the Firm's weighted average macroeconomic outlook, including deterioration in the outlook for commercial real estate in CB, partially offset by the impact of changes in the loan and lending-related commitment portfolios in CIB in the third quarter of 2023.

The net addition also included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023.

The prior year included a $2.1 billion net addition to the allowance for credit losses and net charge-offs of $2.0 billion.


Noninterest expense
(in millions)	Three months ended September 30,						Nine months ended September 30,
	2023		2022		Change		2023		2022		Change
Compensation expense(a)	$	11,726	$	10,539	11	%	$	34,618	$	31,627	9	%
Noncompensation expense:
Occupancy	1,197		1,162		3		3,382		3,425		(1)
Technology, communications and equipment(b)	2,386		2,366		1		6,837		7,102		(4)
Professional and outside services	2,620		2,481		6		7,629		7,522		1
Marketing	1,126		1,017		11		3,293		2,818		17
Other expense(c)	2,702		1,613		68		6,927		4,624		50
Total noncompensation expense(d)	10,031		8,639		16		28,068		25,491		10
Total noninterest expense	$	21,757	$	19,178	13	%	$	62,686	$	57,118	10	%

(a)Includes the impact of 4,774 individuals associated with First Republic who became employees on July 2, 2023.

(b)Includes depreciation expense associated with auto operating lease assets.

(c)Included Firmwide legal expense of $665 million and $47 million for the three months ended September 30, 2023 and 2022, respectively, and $1.3 billion and $239 million for the nine months ended September 30, 2023 and 2022, respectively; as well as FDIC-related expense of $342 million and $209 million for the three months ended September 30, 2023 and 2022, respectively, and $997 million and $623 million for the nine months ended September 30, 2023 and 2022, respectively. Refer to Note 6 for additional information.

(d)Included the impact of First Republic of $424 million and $1.0 billion for the three and nine months ended September 30, 2023, respectively. The nine months ended September 30, 2023, included expenses recorded in the second quarter of 2023 associated with the First Republic individuals who were not employees of the Firm until July 2, 2023. Refer to Business Segment Results on page 23 for additional information.

Quarterly results

Compensation expense increased driven by:

•additional headcount, primarily in front office and technology, as well as the impact of wage inflation, and

•the impact of First Republic, largely in CCB.

Noncompensation expense increased as a result of:

•the impact of First Republic in CCB and Corporate,

•higher legal expense, predominantly in CIB,

•higher investments in the businesses, including technology and marketing, and

•higher other expense, including higher indirect tax expense in CIB and the increase in the FDIC assessment that was announced in October 2022,

partially offset by

•lower depreciation expense on lower Auto lease assets.

Refer to Business Segment Results on page 23 for additional information on First Republic.

Year-to-date results

Compensation expense increased driven by:

•additional headcount, primarily in front office and technology, as well as the impact of wage inflation,

•the impact of First Republic in the third quarter of 2023, largely in CCB, and

•higher revenue-related compensation in AWM and CCB, partially offset by a decline in CIB.

Noncompensation expense increased as a result of:

•the impact of First Republic in Corporate and CCB,

•higher investments in the business, including marketing and technology,

•higher legal expense, predominantly in CIB and Corporate, and

•higher other expense, including the increase in the FDIC assessment that was announced in October 2022, higher indirect tax expense in CIB, and higher travel and entertainment expense across the segments,

partially offset by

•lower depreciation expense on lower Auto lease assets.


Income tax expense
(in millions)	Three months ended September 30,								Nine months ended September 30,
	2023			2022			Change		2023			2022			Change
Income before income tax expense	$	16,733		$	12,001		39	%	$	50,286		$	32,929		53	%
Income tax expense	3,582			2,264			58		10,041			6,261			60
Effective tax rate	21.4		%	18.9		%			20.0		%	19.0		%

Quarterly results

The effective tax rate increased predominantly driven by lower benefits associated with tax audit settlements and changes in the level and mix of income and expenses subject to U.S. federal and state and local taxes.

Year-to-date results

The effective tax rate increased driven by:

•the higher level of pre-tax income and changes in the mix of income and expenses subject to U.S. federal and state and local taxes and lower benefits associated with tax audit settlements and vesting of employee stock based awards,

partially offset by

•the impact of the income tax expense associated with the First Republic acquisition that was reflected in the estimated bargain purchase gain, which resulted in a reduction in the Firm’s effective tax rate.

CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS

Consolidated balance sheets analysis

The following is a discussion of the significant changes between September 30, 2023 and December 31, 2022.


Selected Consolidated balance sheets data
(in millions)	September 30, 2023		December 31, 2022		Change
Assets
Cash and due from banks	$	24,921	$	27,697	(10)	%
Deposits with banks	486,448		539,537		(10)
Federal funds sold and securities purchased under resale agreements	350,059		315,592		11
Securities borrowed	188,279		185,369		2
Trading assets	601,993		453,799		33
Available-for-sale securities	197,119		205,857		(4)
Held-to-maturity securities	388,261		425,305		(9)
Investment securities, net of allowance for credit losses	585,380		631,162		(7)
Loans	1,310,059		1,135,647		15
Allowance for loan losses	(21,946)		(19,726)		11
Loans, net of allowance for loan losses	1,288,113		1,115,921		15
Accrued interest and accounts receivable	127,752		125,189		2
Premises and equipment	29,677		27,734		7
Goodwill, MSRs and other intangible assets	64,910		60,859		7
Other assets	150,801		182,884		(18)
Total assets	$	3,898,333	$	3,665,743	6	%

Cash and due from banks and deposits with banks decreased primarily as a result of First Republic, which included the impact of the repayment of deposits provided to First Republic Bank in March 2023 by the consortium of large U.S. banks and amounts paid to the FDIC, as well as loan growth. Deposits with banks reflect the Firm’s placement of its excess cash with various central banks, including the Federal Reserve Banks.

Federal funds sold and securities purchased under resale agreements increased driven by Markets, reflecting higher demand for securities to cover short positions and higher collateral requirements, partially offset by a decrease in client-driven market-making activities, net of the lower level of netting.

Refer to Note 11 for additional information on securities purchased under resale agreements and securities borrowed.

Trading assets increased predominantly driven by CIB due to higher levels of debt and equity instruments in Markets, in response to demand from client-driven market-making activities, and when compared with the seasonally lower levels at year-end. The increase was also attributable to the impact of higher short-term cash deployment activities in Treasury and CIO as a result of the current interest rate environment. Refer to Notes 2 and 5 for additional information.

Investment securities decreased due to:

•lower available-for-sale ("AFS") securities driven by maturities and paydowns, partially offset by net purchases, the impact of First Republic, and the transfer of securities from held-to-maturity (“HTM”) in the first quarter of 2023, and

•lower HTM securities driven by maturities and paydowns, and the transfer of securities to AFS.

Refer to Corporate segment results on pages 45-46,

Investment Portfolio Risk Management on page 83, and Notes 2 and 10 for additional information.

Loans increased, reflecting:

•$147 billion of loans associated with First Republic, primarily reflected in CCB, CB and AWM.

The increase also included:

•growth in new accounts and revolving balances in Card Services, as the portfolio continues to normalize to pre-pandemic levels,

•higher revolver utilization and originations in CB, and

•growth in Auto loans.

The allowance for loan losses increased, reflecting:

•a net addition to the allowance for loan losses of $1.7 billion, consisting of:

–$1.0 billion in wholesale, driven by net downgrade activity and the net effect of changes in the Firm's weighted average macroeconomic outlook, including deterioration in the outlook for commercial real estate in CB, partially offset by the impact of changes in the loan portfolio in CIB in the third quarter of 2023, and

–$725 million in consumer, predominantly driven by CCB, comprised of $801 million in Card Services, partially offset by a $200 million net reduction in Home Lending. The net addition in Card Services was driven by loan growth, including an increase in revolving balances, partially offset by reduced borrower uncertainty and the net effect of changes in the Firm's weighted average macroeconomic outlook. The net reduction in Home Lending was largely driven by improvements in the outlook for home prices, and

•$1.1 billion to establish the allowance for the First Republic loans in the second quarter of 2023.

The allowance for loan losses also reflected a reduction of

$587 million, on January 1, 2023, as a result of the adoption of the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance. References in this Form 10-Q to "changes to the TDR accounting guidance" pertain to the Firm's adoption of this guidance.

There was also a $308 million net reduction in the allowance for lending-related commitments recognized in other liabilities on the Consolidated balance sheets.

Refer to Credit and Investment Risk Management on pages 62-83, and Notes 2, 3, 12 and 13 for additional information on loans and the total allowance for credit losses; and Business Segment Results on page 23 and Note 28 for additional information on the First Republic acquisition.

Accrued interest and accounts receivable increased as a result of receivables associated with U.S. Treasuries that matured in Treasury and CIO, and higher receivables related

to unsettled trades, predominantly offset by lower client receivables related to client-driven activities in Markets.

Goodwill, MSRs and other intangible assets increased predominantly due to:

•the other intangibles and goodwill related to the Firm's acquisition of the remaining 51% interest in CIFM,

•core deposit intangibles associated with the First Republic acquisition, and

•higher MSRs as a result of net additions primarily from purchases, and the impact of higher interest rates, partially offset by the realization of expected cash flows.

Refer to Note 15 and 28 for additional information.

Other assets decreased reflecting the impact of the change in the type of collateral placed with central counterparties ("CCPs") from cash to securities.


Selected Consolidated balance sheets data (continued)
(in millions)	September 30, 2023		December 31, 2022		Change
Liabilities
Deposits	$	2,379,526	$	2,340,179	2	%
Federal funds purchased and securities loaned or sold under repurchase agreements	268,750		202,613		33
Short-term borrowings	45,470		44,027		3
Trading liabilities	207,457		177,976		17
Accounts payable and other liabilities	292,070		300,141		(3)
Beneficial interests issued by consolidated variable interest entities (“VIEs”)	24,896		12,610		97
Long-term debt	362,793		295,865		23
Total liabilities	3,580,962		3,373,411		6
Stockholders’ equity	317,371		292,332		9
Total liabilities and stockholders’ equity	$	3,898,333	$	3,665,743	6	%

Deposits increased, reflecting:

• net issuances of structured notes in CIB as a result of client demand, as well as deposit inflows related to client-driven activities in Securities Services and Payments,

• an increase in Corporate related to the Firm's international consumer initiatives,

• a net increase in CCB due to $64 billion of deposits associated with First Republic, predominantly offset by a net reduction reflecting higher customer spending in existing accounts,

• a net decrease in AWM from continued migration into higher-yielding investments as a result of the rising interest rate environment, partially offset by growth from new and existing customers resulting from new offerings, and

• continued deposit attrition in CB driven by higher rates and seasonal outflows, partially offset by the retention of inflows associated with disruptions in the market in the first quarter of 2023.

Federal funds purchased and securities loaned or sold under repurchase agreements increased due to higher secured financing of trading assets and the impact of a lower level of netting on client-driven market-making activities in Markets.

Refer to Liquidity Risk Management on pages 54-61 for additional information on deposits, federal funds purchased and securities loaned or sold under repurchase agreements, and short-term borrowings; Notes 2 and 16 for deposits and Note 11 for federal funds purchased and securities loaned or

sold under repurchase agreements; Business Segment Results on page 23 and Note 28 for additional information on the First Republic acquisition.

Trading liabilities increased due to client-driven market-making activities in Fixed Income Markets, which resulted in higher levels of short positions in debt instruments, partially offset by lower derivative payables primarily as a result of market movements. Refer to Notes 2 and 5 for additional information.

Accounts payable and other liabilities decreased primarily due to lower client payables related to client-driven activities in Markets.

Beneficial interests issued by consolidated VIEs increased in CIB primarily driven by higher levels of Firm-administered multi-seller conduit commercial paper held by third parties, reflecting changes in the Firm’s short-term liquidity management. Refer to Liquidity Risk Management on pages 54-61 and Notes 14 and 24 for additional information, specifically Firm-sponsored VIEs and loan securitization trusts.

Long-term debt increased, reflecting the impact of First Republic, which included the Purchase Money Note issued to the FDIC, as well as FHLB advances, partially offset by maturities and redemptions in Treasury and CIO. Refer to Liquidity Risk Management on pages 54-61; and Note 28 for additional information on the First Republic acquisition.

Stockholders’ equity: refer to Consolidated statements of changes in stockholders’ equity on page 99, Capital Actions on page 52, and Note 21 for additional information.

Consolidated cash flows analysis

The following is a discussion of cash flow activities during the nine months ended September 30, 2023 and 2022.


(in millions)	Nine months ended September 30,
		2023		2022
Net cash provided by/(used in)
Operating activities		$	(47,257)	$	5,897
Investing activities		(12,239)		(86,289)
Financing activities		10,326		16,087
Effect of exchange rate changes on cash		(6,695)		(32,342)
Net decrease in cash and due from banks and deposits with banks		$	(55,865)	$	(96,647)

Operating activities

•In 2023, cash used resulted from higher trading assets and lower accounts payable and other liabilities, partially offset by lower other assets and higher trading liabilities.

•In 2022, cash provided reflected higher accounts payable and other liabilities, trading liabilities, and net proceeds from loans held-for-sale, predominantly offset by higher trading assets.

Investing activities

•In 2023, cash used resulted from higher securities purchased under resale agreements, higher net loan originations, and net cash used in the First Republic acquisition, predominantly offset by proceeds from paydowns and maturities of investment securities and from sales and securitizations of loans held-for-investment.

•In 2022, cash used resulted from net loan originations and higher securities purchased under resale agreements, partially offset by net proceeds of investment securities.

Financing activities

•In 2023, cash provided reflected higher securities loaned or sold under repurchase agreements and higher beneficial interests issued by consolidated VIEs, largely offset by net outflows in deposits, which included the impact of the repayment of the deposits provided to First Republic Bank by the consortium of large U.S. banks that the Firm assumed as part of the First Republic acquisition.

•In 2022, cash provided reflected higher securities loaned or sold under repurchase agreements and net proceeds from long- and short-term borrowings, largely offset by lower deposits.

•For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock.

* * *

Refer to Consolidated Balance Sheets Analysis on pages 16-18, Capital Risk Management on pages 48-53, and Liquidity Risk Management on pages 54-61, and the Consolidated Statements of Cash Flows on page 100 of this Form 10-Q, and pages 97-104 of JPMorgan Chase’s 2022 Form 10-K for a further discussion of the activities affecting the Firm’s cash flows.


EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES

The Firm prepares its Consolidated Financial Statements in accordance with U.S. GAAP and this presentation is referred to as “reported” basis; these financial statements appear on pages 96-100.

In addition to analyzing the Firm’s results on a reported basis, the Firm also reviews and uses certain non-GAAP financial measures at the Firmwide and segment level. These non-GAAP measures include:

•Firmwide “managed” basis results, including the overhead ratio, which include certain reclassifications to present total net revenue from investments that receive tax credits and tax-exempt securities on a basis comparable to taxable investments and securities (“FTE” basis);

•Pre-provision profit, which represents total net revenue less total noninterest expense;

•Net interest income, net yield, and noninterest revenue excluding Markets;

•TCE, ROTCE, and TBVPS;

•Adjusted expense, which represents noninterest expense excluding Firmwide legal expense; and

•Allowance for loan losses to period-end loans retained, excluding trade finance and conduits.

Refer to Explanation and Reconciliation of the Firm’s Use Of Non-GAAP Financial Measures and Key Performance Measures on pages 58-60 of JPMorgan Chase’s 2022 Form 10-K for a further discussion of management’s use of non-GAAP financial measures.

The following summary tables provide a reconciliation from the Firm’s reported U.S. GAAP results to managed basis.


	Three months ended September 30,
	2023								2022
(in millions, except ratios)	Reported			Fully taxable-equivalent adjustments(a)		Managed basis			Reported			Fully taxable-equivalent adjustments(a)		Managed basis
Other income	$	614		$	682	$	1,296		$	900		$	663	$	1,563
Total noninterest revenue	17,148			682		17,830			15,198			663		15,861
Net interest income	22,726			130		22,856			17,518			112		17,630
Total net revenue	39,874			812		40,686			32,716			775		33,491
Total noninterest expense	21,757			NA		21,757			19,178			NA		19,178
Pre-provision profit	18,117			812		18,929			13,538			775		14,313
Provision for credit losses	1,384			NA		1,384			1,537			NA		1,537
Income before income tax expense	16,733			812		17,545			12,001			775		12,776
Income tax expense	3,582			812		4,394			2,264			775		3,039
Net income	$	13,151		NA		$	13,151		$	9,737		NA		$	9,737

Overhead ratio	55		%	NM		53		%	59		%	NM		57		%

	Nine months ended September 30,
	2023								2022
(in millions, except ratios)	Reported			Fully taxable-equivalent adjustments(a)		Managed basis			Reported			Fully taxable-equivalent adjustments(a)		Managed basis
Other income	$	4,913		$	2,539	$	7,452		$	2,930		$	2,250	$	5,180
Total noninterest revenue	54,314			2,539		56,853			47,630			2,250		49,880
Net interest income	65,216			354		65,570			46,518			313		46,831
Total net revenue	119,530			2,893		122,423			94,148			2,563		96,711
Total noninterest expense	62,686			NA		62,686			57,118			NA		57,118
Pre-provision profit	56,844			2,893		59,737			37,030			2,563		39,593
Provision for credit losses	6,558			NA		6,558			4,101			NA		4,101
Income before income tax expense	50,286			2,893		53,179			32,929			2,563		35,492
Income tax expense	10,041			2,893		12,934			6,261			2,563		8,824
Net Income	$	40,245		NA		$	40,245		$	26,668		NA		$	26,668

Overhead ratio	52		%	NM		51		%	61		%	NM		59		%

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

The following table provides information on net interest income, net yield, and noninterest revenue excluding Markets.



(in millions, except rates)	Three months ended September 30,								Nine months ended September 30,
	2023			2022			Change		2023			2022			Change
Net interest income – reported	$	22,726		$	17,518		30	%	$	65,216		$	46,518		40	%
Fully taxable-equivalent adjustments	130			112			16		354			313			13
Net interest income – managed basis(a)	$	22,856		$	17,630		30		$	65,570		$	46,831		40
Less: Markets net interest income(b)	(317)			707			NM		(909)			4,474			NM
Net interest income excluding Markets(a)	$	23,173		$	16,923		37		$	66,479		$	42,357		57

Average interest-earning assets	$	3,331,728		$	3,344,949		—		$	3,297,843		$	3,377,390		(2)
Less: Average Markets interest-earning assets(b)	970,789			952,488			2		985,703			957,837			3
Average interest-earning assets excluding Markets	$	2,360,939		$	2,392,461		(1)		$	2,312,140		$	2,419,553		(4)

Net yield on average interest-earning assets – managed basis	2.72		%	2.09		%			2.66		%	1.85		%
Net yield on average Markets interest-earning assets(b)	(0.13)			0.29					(0.12)			0.62
Net yield on average interest-earning assets excluding Markets	3.89		%	2.81		%			3.84		%	2.34		%

Noninterest revenue – reported	$	17,148		$	15,198		13		$	54,314		$	47,630		14
Fully taxable-equivalent adjustments	682			663			3		2,539			2,250			13
Noninterest revenue – managed basis	$	17,830		$	15,861		12		$	56,853		$	49,880		14
Less: Markets noninterest revenue(b)	6,898			6,064			14		22,890			18,840			21
Noninterest revenue excluding Markets	$	10,932		$	9,797		12		$	33,963		$	31,040		9

Memo: Total Markets net revenue(b)	$	6,581		$	6,771		(3)		$	21,981		$	23,314		(6)

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

(b)Refer to page 34 for further information on Markets.

The following summary table provides a reconciliation from the Firm’s common stockholders’ equity to TCE.



	Period-end				Average
(in millions, except per share and ratio data)	Sep 30, 2023		Dec 31, 2022		Three months ended September 30,						Nine months ended September 30,
					2023			2022			2023			2022
Common stockholders’ equity	$	289,967	$	264,928	$	284,798		$	252,944		$	278,010		$	251,147
Less: Goodwill	52,492		51,662		52,427			51,323			52,164			50,739
Less: Other intangible assets	3,309		1,224		3,511			1,208			2,342			1,076
Add: Certain deferred tax liabilities(a)	3,025		2,510		3,080			2,512			2,846			2,504
Tangible common equity	$	237,191	$	214,552	$	231,940		$	202,925		$	226,350		$	201,836

Return on tangible common equity	NA		NA		22		%	18		%	23		%	17		%
Tangible book value per share	$	82.04	$	73.12	NA			NA			NA			NA

(a)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.

BUSINESS SEGMENT RESULTS

The Firm is managed on an LOB basis. There are four major reportable business segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. In addition, there is a Corporate segment.

The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by the Firm’s Operating Committee. Segment results are presented on a managed basis. Refer to Explanation and Reconciliation of the Firm’s use of Non-GAAP Financial Measures on pages 19-20 for a definition of managed basis.

Description of business segment reporting methodology

Results of the business segments are intended to present each segment as if it were a stand-alone business. The management reporting process that derives business segment results includes the allocation of certain income and expense items. The Firm periodically assesses the assumptions, methodologies and reporting classifications used for segment reporting, and further refinements may be implemented in future periods. The Firm also assesses the level of capital required for each LOB on at least an annual basis. The Firm’s LOBs also provide various business metrics which are utilized by the Firm and its investors and analysts in assessing performance.

Revenue sharing

When business segments join efforts to sell products and services to the Firm’s clients and customers, the participating business segments may agree to share revenue from those transactions. Revenue is generally recognized in the segment responsible for the related product or service, with allocations to the other segment(s) involved in the transaction. The segment results reflect these revenue-sharing agreements.

Funds transfer pricing

Funds transfer pricing (“FTP”) is the process by which the Firm allocates interest income and expense to the LOBs and Other Corporate and transfers the primary interest rate risk and liquidity risk to Treasury and CIO.

The funds transfer pricing process considers the interest rate risk and liquidity risk characteristics of assets and liabilities and off-balance sheet products. Periodically the methodology and assumptions utilized in the FTP process are adjusted to reflect economic conditions and other factors, which may impact the allocation of net interest income to the segments.

Foreign exchange risk

Foreign exchange risk is transferred from the LOBs and Other Corporate to Treasury and CIO for certain revenues and expenses. Treasury and CIO manages these risks centrally and reports the impact of foreign exchange rate movements related to the transferred risk in its results. Refer to Market Risk Management on pages 84-89 for additional information.

Capital allocation

The amount of capital assigned to each business segment is referred to as equity. At least annually, the assumptions, judgments and methodologies used to allocate capital are reassessed and, as a result, the capital allocated to the LOBs may change. Refer to Line of business equity on page 51, and page 93 of JPMorgan Chase’s 2022 Form 10-K for additional information on capital allocation.

Refer to Business Segment Results – Description of business segment reporting methodology on pages 61-62 and Note 32 of JPMorgan Chase’s 2022 Form 10-K for a further discussion of those methodologies.

Segment results – managed basis

The following tables summarize the Firm’s results by segment for the periods indicated.


Three months ended September 30,	Consumer & Community Banking									Corporate & Investment Bank									Commercial Banking
(in millions, except ratios)	2023			2022				Change		2023			2022				Change		2023			2022			Change
Total net revenue	$	18,362		$	14,281		(a)	29	%	$	11,730		$	11,925		(a)	(2)	%	$	4,031		$	3,048		32	%
Total noninterest expense	9,105			7,983			(a)	14		7,443			6,682			(a)	11		1,375			1,180			17
Pre-provision profit/(loss)	9,257			6,298				47		4,287			5,243				(18)		2,656			1,868			42
Provision for credit losses	1,446			529				173		(185)			513				NM		90			618			(85)
Net income/(loss)	5,895			4,344			(a)	36		3,092			3,522			(a)	(12)		1,935			946			105
Return on equity (“ROE”)	41		%	34		%				11		%	13		%				25		%	14		%


Three months ended September 30,	Asset & Wealth Management								Corporate					Total
(in millions, except ratios)	2023			2022			Change		2023		2022		Change	2023			2022			Change
Total net revenue	$	5,005		$	4,539		10	%	$	1,558	$	(302)	NM	$	40,686		$	33,491		21	%
Total noninterest expense	3,138			3,028			4		696		305		128	21,757			19,178			13
Pre-provision profit/(loss)	1,867			1,511			24		862		(607)		NM	18,929			14,313			32
Provision for credit losses	(13)			(102)			87		46		(21)		NM	1,384			1,537			(10)
Net income/(loss)	1,417			1,219			16		812		(294)		NM	13,151			9,737			35
ROE	32		%	28		%			NM		NM			18		%	15		%


Nine months ended September 30,	Consumer & Community Banking									Corporate & Investment Bank									Commercial Banking
(in millions, except ratios)	2023			2022				Change		2023			2022				Change		2023			2022			Change
Total net revenue	$	52,051		$	39,021		(a)	33	%	$	37,849		$	37,504		(a)	1	%	$	11,530		$	8,129		42	%
Total noninterest expense	25,483			23,296			(a)	9		21,820			20,855			(a)	5		3,983			3,465			15
Pre-provision profit/(loss)	26,568			15,725				69		16,029			16,649				(4)		7,547			4,664			62
Provision for credit losses	4,710			1,968				139		(89)			1,017				NM		1,604			984			63
Net income/(loss)	16,444			10,360			(a)	59		11,605			11,611			(a)	—		4,490			2,790			61
ROE	40		%	27		%				14		%	14		%				20		%	14		%


Nine months ended September 30,	Asset & Wealth Management								Corporate					Total
(in millions, except ratios)	2023			2022			Change		2023		2022		Change	2023			2022			Change
Total net revenue	$	14,732		$	13,160		12	%	$	6,261	$	(1,103)	NM	$	122,423		$	96,711		27	%
Total noninterest expense	9,392			8,807			7		2,008		695		189	62,686			57,118			10
Pre-provision profit/(loss)	5,340			4,353			23		4,253		(1,798)		NM	59,737			39,593			51
Provision for credit losses	160			96			67		173		36		381	6,558			4,101			60
Net income/(loss)	4,010			3,231			24		3,696		(1,324)		NM	40,245			26,668			51
ROE	32		%	25		%			NM		NM			19		%	14		%

(a)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.

Selected Firmwide Metrics

The following tables present key metrics for Wealth Management, which consists of the Global Private Bank in AWM and J.P. Morgan Wealth Management in CCB; and total revenue and key metrics for J.P. Morgan Payments, which consists of payments activities in CIB and CB. This presentation is intended to provide investors with additional information concerning Wealth Management and J.P. Morgan Payments, each of which consists of similar business activities conducted across LOBs to serve different types of clients and customers.

Selected metrics - Wealth Management


	September 30, 2023			September 30, 2022
Client assets (in billions)(a)	$	2,929	(b)	$	2,302
Number of client advisors	8,867			8,127

(a) Consists of Global Private Bank in AWM and client investment assets in J.P. Morgan Wealth Management in CCB.

(b)At September 30, 2023, included $140.6 billion of client investment assets associated with First Republic.

Selected metrics - J.P. Morgan Payments


(in millions, except where otherwise noted)	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Total net revenue(a)	$	4,504	$	3,762	$	13,691	$	9,487
Merchant processing volume (in billions)	610.1		545.4		1,769.0		1,575.2
Average deposits (in billions)	702		748		710		794

(a)Includes certain revenues that are reported as investment banking product revenue in CB, and excludes the net impact of equity investments.

Segment information related to First Republic

The following table presents selected impacts to CCB, CB, AWM and Corporate associated with First Republic from the acquisition date of May 1, 2023.


	As of or for the three months ended September 30, 2023
(in millions)	Consumer & Community Banking		Commercial Banking		Asset & Wealth Management		Corporate			Total
Selected Income Statement Data
Revenue
Asset management fees	$	142	$	—	$	—	$	—		$	142
All other income	191		144		203		81		(a)	619
Noninterest revenue	333		144		203		81			761
Net interest income	1,022		222		233		(3)			1,474
Total net revenue	1,355		366		436		78			2,235

Provision for credit losses	(2)		26		(31)		—			(7)
Noninterest expense	583		18		17		240			858
Net income	589		245		342		(99)			1,077

Selected Balance Sheet Data (period-end)
Loans	$	94,333	$	38,729	$	12,026	$	—		$	145,088	(b)
Deposits	63,945		—		—		—			63,945

	As of or for the nine months ended September 30, 2023
(in millions)	Consumer & Community Banking		Commercial Banking		Asset & Wealth Management		Corporate			Total
Selected Income Statement Data
Revenue
Asset management fees	$	249	$	—	$	—	$	—		$	249
All other income	296		144		377		2,843		(a)	3,660
Noninterest revenue	545		144		377		2,843			3,909
Net interest income	1,641		400		362		(32)			2,371
Total net revenue	2,186		544		739		2,811			6,280

Provision for credit losses	406		634		115		—			1,155
Noninterest expense	620		18		17		802			1,457
Net income	882		(82)		461		2,202			3,463

Selected Balance Sheet Data (period-end)
Loans	$	94,333	$	38,729	$	12,026	$	—		$	145,088	(b)
Deposits	63,945		—		—		—			63,945

(a)Included the preliminary estimated bargain purchase gain of $2.7 billion recorded in other income. For the three months ended September 30, 2023, reflects measurement period adjustments of $100 million, increasing the estimated bargain purchase gain to $2.8 billion for the nine months ended September 30, 2023. Refer to Note 28 for additional information.

(b)Excluded $1.9 billion of loans transferred to the CIB as part of the First Republic acquisition.

The following sections provide a comparative discussion of the Firm’s results by segment as of or for the three and nine months ended September 30, 2023 and 2022, unless otherwise specified.

CONSUMER & COMMUNITY BANKING

Refer to pages 63-66 of JPMorgan Chase's 2022 Form 10-K and Line of Business Metrics on page 206 for a further discussion of the business profile of CCB.


Selected income statement data
	Three months ended September 30,										Nine months ended September 30,
(in millions, except ratios)	2023				2022				Change		2023				2022				Change
Revenue
Lending- and deposit-related fees	$	836			$	822			2	%	$	2,500			$	2,482			1	%
Asset management fees	891			(d)	662				35		2,383			(d)	2,072				15
Mortgage fees and related income	417				313				33		914				1,146				(20)
Card income	626				613			(f)	2		1,848				1,775			(f)	4
All other income(a)	1,212			(d)	1,302			(f)	(7)		3,503			(d)	3,942			(f)	(11)
Noninterest revenue	3,982				3,712				7		11,148				11,417				(2)
Net interest income	14,380			(d)	10,569				36		40,903			(d)	27,604				48
Total net revenue	18,362				14,281				29		52,051				39,021				33

Provision for credit losses	1,446			(d)	529				173		4,710			(d)	1,968				139

Noninterest expense
Compensation expense	3,975				3,345				19		11,148				9,753				14
Noncompensation expense(b)	5,130				4,638			(f)	11		14,335				13,543			(f)	6
Total noninterest expense	9,105			(d)	7,983				14		25,483			(d)	23,296				9
Income before income tax expense	7,811				5,769				35		21,858				13,757				59
Income tax expense	1,916				1,425			(f)	34		5,414				3,397			(f)	59
Net income	$	5,895			$	4,344			36		$	16,444			$	10,360			59

Revenue by line of business
Banking & Wealth Management	$	11,345		(e)	$	7,960		(f)	43		$	32,322		(e)	$	20,477		(f)	58
Home Lending	1,252			(e)	920				36		2,979			(e)	3,090				(4)
Card Services & Auto	5,765				5,401				7		16,750				15,454				8

Mortgage fees and related income details:
Production revenue	162				93				74		339				454				(25)
Net mortgage servicing revenue(c)	255				220				16		575				692				(17)
Mortgage fees and related income	$	417			$	313			33%		$	914			$	1,146			(20)	%

Financial ratios
Return on equity	41		%		34		%	(f)			40		%		27		%
Overhead ratio	50				56						49				60

(a)Primarily includes operating lease income and commissions and other fees. For the three months ended September 30, 2023 and 2022, operating lease income was $685 million and $854 million, respectively, and $2.1 billion and $2.8 billion for the nine months ended September 30, 2023 and 2022, respectively.

(b)Included depreciation expense on leased assets of $458 million and $605 million for the three months ended September 30, 2023 and 2022, respectively, and $1.3 billion and $2.0 billion for the nine months ended September 30, 2023 and 2022, respectively.

(c)Included MSR risk management results of $111 million and $54 million for the three months ended September 30, 2023 and 2022, respectively, and $124 million and $191 million for the nine months ended September 30, 2023 and 2022, respectively.

(d)Includes First Republic. Refer to page 23 for additional information.

(e)Banking & Wealth Management and Home Lending included revenue associated with First Republic of $1.0 billion and $351 million, respectively, for the three months ended September 30, 2023, and $1.6 billion and $586 million, respectively, for the nine months ended September 30, 2023.

(f)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.

Quarterly results

Net income was $5.9 billion, up 36%.

Net revenue was $18.4 billion, up 29%.

Net interest income was $14.4 billion, up 36%, driven by:

•deposit margin expansion on higher rates, partially offset by lower average deposits in Banking & Wealth Management ("BWM"), and

•higher NII driven by increased revolving balances in Card Services, as well as the impact of First Republic in Home Lending.

Noninterest revenue was $4.0 billion, up 7%, driven by:

•the impact of First Republic in BWM, largely asset management fees, and

•higher mortgage fees and related income in Home Lending,

partially offset by

•lower auto operating lease income as a result of a decline in volume.

Card income was up 2%, reflecting higher net interchange from the impact of an increase in debit and credit card sales volume, and higher annual fees, predominantly offset by higher amortization related to new account origination costs.

Refer to Note 6 for additional information on card income, asset management fees, and commissions and other fees; and Critical Accounting Estimates on pages 91-93 for card income.

Refer to Note 15 for further information regarding changes in the value of the MSR asset and related hedges, and mortgage fees and related income.

Refer to Note 28 for additional information on the First Republic acquisition.

Noninterest expense was $9.1 billion, up 14%, reflecting:

•higher compensation expense, predominantly driven by an increase in headcount and wage inflation, including the impact of First Republic, and

•higher noncompensation expense, largely driven by the impact of First Republic including technology spend and the amortization of intangibles. The increase in noncompensation expense also reflects additional investments in technology and marketing, as well as the FDIC assessment increase announced in the prior year, largely offset by lower auto lease depreciation on lower auto lease assets.

The provision for credit losses was $1.4 billion, reflecting:

•net charge-offs of $1.4 billion, up $720 million, predominantly driven by Card Services, as the portfolio continues to normalize to pre-pandemic levels, and

•a $47 million net addition to the allowance for credit losses driven by $301 million in Card Services, predominantly offset by a $250 million net reduction in Home Lending. The net addition in Card Services was driven by loan growth, including an increase in revolving balances, largely offset by changes in the Firm's

macroeconomic outlook including a lower forecasted unemployment rate and reduced borrower uncertainty. The net reduction in Home Lending was driven by improvements in the outlook for home prices.

The prior year included a $150 million reduction in the allowance for credit losses across CCB.

Refer to Credit and Investment Risk Management on pages 62-83 and Allowance for Credit Losses on pages 80-82 for a further discussion of the credit portfolios and the allowance for credit losses.

Year-to-date results

Net income was $16.4 billion, up 59%.

Net revenue was $52.1 billion, up 33%.

Net interest income was $40.9 billion, up 48%, driven by:

•deposit margin expansion on higher rates, partially offset by lower average deposits and the impact of lower PPP loan forgiveness in BWM, and

•higher NII driven by increased revolving balances in Card Services, as well as the impact of First Republic in Home Lending.

Noninterest revenue was $11.1 billion, down 2%, driven by:

•lower auto operating lease income as a result of a decline in volume, and

•in Home Lending, lower production revenue from a decline in volume and lower net mortgage servicing revenue driven by lower net gains on MSR risk management and lower operating revenue,

largely offset by

•the impact of First Republic in BWM, largely asset management fees, and

•higher travel-related commissions in Card Services.

Card income was up 4%, reflecting

•lower other card income driven by higher amortization related to new account origination costs, predominantly offset by higher annual fees.

Noninterest expense was $25.5 billion, up 9%, reflecting:

•higher compensation expense, driven by an increase in headcount and wage inflation, including the impact of First Republic in the third quarter of 2023, and higher revenue-related compensation, and

•higher noncompensation expense, driven by the impact of First Republic, investments in marketing and technology, as well as the FDIC assessment increase announced in the prior year, largely offset by lower auto lease depreciation on lower auto lease assets.

The provision for credit losses was $4.7 billion, reflecting:

•net charge-offs of $3.7 billion, up $1.9 billion, predominantly driven by Card Services, as the portfolio continues to normalize to pre-pandemic levels, and

•a $1.0 billion net addition to the allowance for credit losses, which included $801 million in Card Services, partially offset by a $200 million net reduction in Home Lending. The net addition in Card Services was driven by loan growth, including an increase in revolving balances, partially offset by reduced borrower uncertainty, and the net effect of changes in the Firm's weighted average macroeconomic outlook, including the updates to the

central scenario in the third quarter of 2023 and the impact of additional weight placed on the adverse scenarios in the first quarter of 2023. The net reduction in Home Lending was largely driven by improvements in the outlook for home prices.

The net addition also included $408 million to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023.

The prior year included a $125 million addition to the allowance for credit losses across CCB.


Selected metrics
	As of or for the three months ended September 30,							As of or for the nine months ended September 30,
(in millions, except headcount)	2023			2022		Change		2023			2022		Change
Selected balance sheet data (period-end)
Total assets	$	626,196		$	500,752	25	%	$	626,196		$	500,752	25	%
Loans:
Banking & Wealth Management(a)	30,574		(d)	30,230		1		30,574		(d)	30,230		1
Home Lending(b)	261,858		(d)	174,618		50		261,858		(d)	174,618		50
Card Services	196,955			170,462		16		196,955			170,462		16
Auto	74,831			67,201		11		74,831			67,201		11
Total loans	564,218			442,511		28		564,218			442,511		28
Deposits	1,136,884		(e)	1,173,241		(3)		1,136,884		(e)	1,173,241		(3)
Equity	55,500			50,000		11		55,500			50,000		11
Selected balance sheet data (average)
Total assets	$	622,760		$	498,858	25		$	569,076		$	494,704	15
Loans:
Banking & Wealth Management	30,686		(f)	30,788		—		29,947		(f)	32,264		(7)
Home Lending(c)	264,041		(f)	176,852		49		222,248		(f)	176,891		26
Card Services	195,245			168,125		16		187,629			158,721		18
Auto	74,358			66,979		11		71,416			68,258		5
Total loans	564,330			442,744		27		511,240			436,134		17
Deposits	1,143,539		(g)	1,174,227		(3)		1,138,050		(g)	1,169,474		(3)
Equity	55,500			50,000		11		53,962			50,000		8

Headcount	141,125			133,803		5	%	141,125			133,803		5	%

(a)At September 30, 2023 and 2022, included $129 million and $791 million of loans, respectively, in Business Banking under the PPP. Refer to Credit Portfolio on pages 108-109 of JPMorgan Chase's 2022 Form 10-K for a further discussion of the PPP.

(b)At both September 30, 2023 and 2022, Home Lending loans held-for-sale and loans at fair value were $4.1 billion.

(c)Average Home Lending loans held-for sale and loans at fair value were $5.7 billion and $5.9 billion for the three months ended September 30, 2023 and 2022, respectively, and $4.8 billion and $8.3 billion for the nine months ended September 30, 2023 and 2022, respectively.

(d)At September 30, 2023, included $3.1 billion and $91.2 billion for Banking & Wealth Management and Home Lending, respectively, associated with First Republic.

(e)Includes First Republic. Refer to page 23 for additional information.

(f)Average Banking & Wealth Management and Home Lending loans associated with First Republic were $3.2 billion and $91.1 billion, respectively, for the three months ended September 30, 2023, and $2.0 billion and $49.8 billion, respectively, for the nine months ended September 30, 2023.

(g)Included $66.7 billion and $38.2 billion associated with First Republic for the three and nine months ended September 30, 2023, respectively.


Selected metrics
	As of or for the three months ended September 30,									As of or for the nine months ended September 30,
(in millions, except ratio data)	2023				2022			Change		2023				2022			Change
Credit data and quality statistics
Nonaccrual loans(a)(b)	$	3,690			$	3,936		(6)	%	$	3,690			$	3,936		(6)	%
Net charge-offs/(recoveries)
Banking & Wealth Management	88				105			(16)		259				275			(6)
Home Lending	(16)				(59)			73		(62)				(196)			68
Card Services	1,227				592			107		3,273				1,678			95
Auto	100				41			144		232				86			170
Total net charge-offs/(recoveries)	$	1,399			$	679		106		$	3,702			$	1,843		101

Net charge-off/(recovery) rate
Banking & Wealth Management(c)	1.14		%		1.35		%			1.16		%		1.14		%
Home Lending	(0.02)				(0.14)					(0.04)				(0.16)
Card Services	2.49				1.40					2.33				1.41
Auto	0.53				0.24					0.43				0.17
Total net charge-off/(recovery) rate	0.99		%		0.62		%			0.98		%		0.58		%

30+ day delinquency rate
Home Lending(d)(e)	0.59		%		0.78		%			0.59		%		0.78		%
Card Services	1.94				1.23					1.94				1.23
Auto	1.13				0.75					1.13				0.75

90+ day delinquency rate - Card Services	0.94		%		0.57		%			0.94		%		0.57		%

Allowance for loan losses
Banking & Wealth Management	$	686			$	722		(5)		$	686			$	722		(5)
Home Lending	573			(f)	667			(14)		573			(f)	667			(14)
Card Services	11,901				10,400			14		11,901				10,400			14
Auto	742				715			4		742				715			4
Total allowance for loan losses	$	13,902		(g)	$	12,504		11	%	$	13,902		(g)	$	12,504		11	%

(a)At September 30, 2023 and 2022, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $123 million and $219 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.

(b)At September 30, 2023 and 2022, generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic. Refer to Credit Portfolio on pages 108-109 of JPMorgan Chase's 2022 Form 10-K for further information on consumer assistance.

(c)At September 30, 2023 and 2022, included $129 million and $791 million of loans, respectively, in Business Banking under the PPP. The Firm does not expect to realize material credit losses on PPP loans because the loans are guaranteed by the SBA. Refer to Credit Portfolio on pages 108-109 of JPMorgan Chase's 2022 Form 10-K for a further discussion of the PPP.

(d)At September 30, 2023 and 2022, the principal balance of loans under payment deferral programs offered in response to the COVID-19 pandemic was $89 million and $454 million in Home Lending, respectively. Loans that are performing according to their modified terms are generally not considered delinquent. Refer to Credit Portfolio on pages 108-109 of JPMorgan Chase's 2022 Form 10-K for further information on consumer assistance.

(e)At September 30, 2023 and 2022, excluded mortgage loans insured by U.S. government agencies of $175 million and $284 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.

(f)At September 30, 2023, included $396 million allowance associated with First Republic.

(g)On January 1, 2023, the Firm adopted changes to the TDR accounting guidance. The adoption of this guidance resulted in a net decrease in the allowance for loan losses of $591 million, driven by residential real estate and credit card. Refer to Note 1 for further information.


Selected metrics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in billions, except ratios and where otherwise noted)	2023				2022			Change	2023				2022			Change
Business Metrics
Number of branches	4,863				4,802			1%	4,863				4,802			1%
Active digital customers (in thousands)(a)	66,765			(f)	61,985			8	66,765			(f)	61,985			8
Active mobile customers (in thousands)(b)	53,221			(f)	48,904			9	53,221			(f)	48,904			9
Debit and credit card sales volume	$	426.3			$	395.8		8	$	1,237.6			$	1,144.3		8
Total payments transaction volume (in trillions)(c)	1.5			(f)	1.4			7	4.4			(f)	4.2			5

Banking & Wealth Management
Average deposits	$	1,127.8		(g)	$	1,156.9		(3)	$	1,123.1		(g)	$	1,152.2		(3)
Deposit margin	2.92		%		1.83		%		2.84		%		1.46		%
Business Banking average loans	$	19.5			$	21.3		(8)	$	19.7			$	22.9		(14)
Business banking origination volume	1.3				1.0			35	3.6				3.2			13
Client investment assets(d)	882.3				615.0			43	882.3				615.0			43
Number of client advisors	5,424				5,017			8	5,424				5,017			8

Home Lending
Mortgage origination volume by channel
Retail	$	6.8		(h)	$	7.8		(13)	$	17.7		(h)	$	33.9		(48)
Correspondent	4.2				4.3			(2)	10.2				24.8			(59)
Total mortgage origination volume(e)	$	11.0			$	12.1		(9)	$	27.9			$	58.7		(52)

Third-party mortgage loans serviced (period-end)	$	637.8			$	586.7		9	637.8				$	586.7		9
MSR carrying value (period-end)	9.1				8.1			12	9.1				8.1			12

Card Services
Sales volume, excluding commercial card	$	296.2			$	272.3		9	$	856.4			$	779.9		10
Net revenue rate	9.60		%		9.92		%		9.69		%		9.79		%
Net yield on average loans	9.54				9.81				9.58				9.76

Auto
Loan and lease origination volume	$	10.2			$	7.5		36	$	31.4			$	22.9		37
Average auto operating lease assets	10.7				13.5			(21)%	11.1				14.9			(26)%

(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)Total payments transaction volume includes debit and credit card sales volume and gross outflows of ACH, ATM, teller, wires, BillPay, PayChase, Zelle, person-to-person and checks.

(d)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 40-44 for additional information. At September 30, 2023, included $140.6 billion of client investment assets associated with First Republic.

(e)Firmwide mortgage origination volume was $13.0 billion and $15.2 billion for the three months ended September 30, 2023 and 2022, respectively, and $32.8 billion and $73.3 billion for the nine months ended September 30, 2023 and 2022, respectively.

(f)Excludes First Republic.

(g)Included $66.7 billion and $38.2 billion for the three and nine months ended September 30, 2023, respectively, associated with First Republic.

(h)Included $730 million and $1.9 billion for the three and nine months ended September 30, 2023, respectively, associated with First Republic.

CORPORATE & INVESTMENT BANK

Refer to pages 67-72 of JPMorgan Chase’s 2022 Form 10-K and Line of Business Metrics on page 206 for a further discussion of the business profile of CIB.


Selected income statement data
	Three months ended September 30,								Nine months ended September 30,
(in millions, except ratios)	2023			2022				Change	2023			2022				Change
Revenue
Investment banking fees (a)	$	1,717		$	1,762			(3)%	$	4,928		$	5,462			(10)%
Principal transactions	5,918			5,258				13	20,023			15,529				29
Lending- and deposit-related fees	556			589				(6)	1,628			1,871				(13)
Commissions and other fees	1,174			1,198				(2)	3,627			3,858				(6)
Card income	374			293			(c)	28	1,089			896			(c)	22
All other income	131			181			(c)	(28)	900			474			(c)	90
Noninterest revenue	9,870			9,281				6	32,195			28,090				15
Net interest income	1,860			2,644				(30)	5,654			9,414				(40)
Total net revenue(b)	11,730			11,925				(2)	37,849			37,504				1
Provision for credit losses	(185)			513				NM	(89)			1,017				NM

Noninterest expense
Compensation expense	3,425			3,311				3	10,971			10,827				1
Noncompensation expense	4,018			3,371			(c)	19	10,849			10,028			(c)	8
Total noninterest expense	7,443			6,682				11	21,820			20,855				5
Income before income tax expense	4,472			4,730				(5)	16,118			15,632				3
Income tax expense	1,380			1,208			(c)	14	4,513			4,021			(c)	12
Net income	$	3,092		$	3,522			(12)%	$	11,605		$	11,611			—%
Financial ratios
Return on equity	11		%	13		%			14		%	14		%
Overhead ratio	63			56					58			56			(c)
Compensation expense as percentage of total net revenue	29			28					29			29

(a)Includes CB's share of revenue from investment banking products sold to CB clients through the CIB that is subject to a revenue sharing arrangement which is reported as a reduction in All other income.

(b)Includes tax-equivalent adjustments, predominantly due to income tax credits and other tax benefits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; and tax-exempt income from municipal bonds of $643 million and $626 million for the three months ended September 30, 2023 and 2022, respectively and $2.4 billion and $2.1 billion for the nine months ended September 30, 2023 and 2022, respectively.

(c)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.


Selected income statement data
	Three months ended September 30,							Nine months ended September 30,
(in millions)	2023		2022			Change		2023		2022			Change
Revenue by business
Investment Banking	$	1,613	$	1,713		(6)	%	$	4,667	$	5,121		(9)	%
Payments	2,094		2,039		(b)	3		6,941		5,459		(b)	27
Lending	291		323			(10)		857		1,054			(19)
Total Banking	3,998		4,075			(2)		12,465		11,634			7
Fixed Income Markets	4,514		4,469			1		14,780		14,878			(1)
Equity Markets	2,067		2,302			(10)		7,201		8,436			(15)
Securities Services	1,212		1,110			9		3,581		3,329			8
Credit Adjustments & Other(a)	(61)		(31)			(97)		(178)		(773)			77
Total Markets & Securities Services	7,732		7,850			(2)		25,384		25,870			(2)
Total net revenue	$	11,730	$	11,925		(2)	%	$	37,849	$	37,504		1	%

(a)Consists primarily of centrally managed credit valuation adjustments (“CVA”), funding valuation adjustments (“FVA”) on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.

(b)In the first quarter of 2023, the allocations of revenue and expense to CCB associated with a Merchant Services revenue sharing agreement were discontinued and are now retained in Payments in CIB. Prior-period amounts have been revised to conform with the current presentation.

Quarterly results

Net income was $3.1 billion, down 12%.

Net revenue was $11.7 billion, down 2%.

Banking revenue was $4.0 billion, down 2%.

•Investment Banking revenue was $1.6 billion, down 6%. Investment Banking fees were down 3%, driven by lower advisory fees, largely offset by higher debt underwriting fees. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.

–Advisory fees were $767 million, down 10%, due to a lower number of completed transactions, reflecting the lower level of announced deals in prior periods amid a challenging environment.

–Debt underwriting fees were $676 million, up 8%, driven by higher issuance activity in high-yield bonds and higher originations in leveraged loans reflecting wallet share gains, partially offset by lower issuance activity in high-grade bonds impacted by higher rates.

–Equity underwriting fees were $274 million, down 6%, reflecting lower activity in private placements.

•Payments revenue was $2.1 billion, up 3%. Excluding the net impact of equity investments, which reflected an impairment in the current period, revenue was up 12%, driven by deposit margin expansion on higher rates, partially offset by lower average deposits.

•Lending revenue was $291 million, down 10%, and included $79 million of fair value losses on hedges of retained loans.

Markets & Securities Services revenue was $7.7 billion, down 2%. Markets revenue was $6.6 billion, down 3%.

•Fixed Income Markets revenue was $4.5 billion, up 1%, driven by an increase in finance and trading activity in Securitized Products as well as improved performance in Credit, predominantly offset by lower revenues in Currencies & Emerging Markets.

•Equity Markets revenue was $2.1 billion, down 10%, driven by lower revenues across products when compared with a stronger performance in the third quarter in the prior year.

•Securities Services revenue was $1.2 billion, up 9%, driven by deposit margin expansion on higher rates, partially offset by lower average deposits.

•Credit Adjustments & Other was a loss of $61 million, compared with a loss of $31 million in the prior year.

Noninterest expense was $7.4 billion, up 11%, predominantly driven by higher legal expense and higher compensation expense, primarily due to wage inflation.

The provision for credit losses was a net benefit of $185 million, reflecting a $230 million net reduction in the allowance for credit losses, driven by the impact of changes in the loan and lending-related commitment portfolios and changes in the central scenario. Net charge-offs were $45 million.

The prior year provision was $513 million, predominantly driven by an addition to the allowance for credit losses.

Refer to Credit and Investment Risk Management on pages 62-83 and Allowance for Credit Losses on pages 80-82 for a further discussion of the credit portfolios and the allowance for credit losses.

Year-to-date results

Net income of $11.6 billion, was flat when compared to the prior year.

Net revenue was $37.8 billion, up 1%.

Banking revenue was $12.5 billion, up 7%.

•Investment Banking revenue was $4.7 billion, down 9%. Excluding $257 million of markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio recorded in the second quarter of 2022, Investment Banking revenue was down 13%. Investment Banking fees were down 10%, driven by lower debt underwriting and advisory fees. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.

–Debt underwriting fees were $2.0 billion, down 14%, as challenging market conditions, primarily in the first half of the year, resulted in lower issuance activity across leveraged loans, high-grade bonds and investment-grade loans. This was partially offset by higher issuance activity in high-yield bonds driven by higher industry-wide issuance.

–Advisory fees were $2.1 billion, down 11%, due to a lower number of completed transactions, reflecting the lower level of announced deals in prior periods amid a challenging environment.

–Equity underwriting fees were $827 million, up 5%, driven by higher follow-on offerings due to lower equity market volatility and higher convertible securities offerings which benefited from higher rates, largely offset by lower activity in private placements amid a challenging environment.

•Payments revenue was $6.9 billion, up 27%. Excluding the net impact of equity investments, which reflected an impairment in the third quarter of 2023, revenue was up 31%, driven by deposit margin expansion on higher rates, partially offset by lower average deposits.

•Lending revenue was $857 million, down 19%, driven by $262 million of fair value losses on hedges of retained loans, compared to $86 million of gains in the prior year, partially offset by higher net interest income.

Markets & Securities Services revenue was $25.4 billion, down 2%. Markets revenue was $22.0 billion, down 6%.

•Fixed Income Markets revenue was $14.8 billion, down 1%, reflecting lower revenue in Currencies & Emerging Markets and Commodities, largely offset by higher revenue in the Securitized Products Group, Credit Trading and Rates.

•Equity Markets revenue was $7.2 billion, down 15%, driven by lower revenue in Equity Derivatives and Cash Equities.

•Securities Services revenue was $3.6 billion, up 8%, driven by deposit margin expansion on higher rates, largely offset by lower fees and lower average deposits.

•Credit Adjustments & Other was a loss of $178 million, largely driven by losses on certain components of fair value option elected liabilities, compared with a loss of $773 million in the prior year.

Noninterest expense was $21.8 billion, up 5%, predominantly driven by higher legal expense, indirect tax expense and compensation expense, including wage inflation.

The provision for credit losses was a net benefit of $89 million, reflecting a $240 million net reduction in the allowance for credit losses, driven by the impact of changes in the loan and lending-related commitment portfolios and the net effect of changes in the Firm's weighted average macroeconomic outlook, partially offset by net downgrade activity. Net charge-offs were $151 million.

The prior year provision was $1.0 billion, predominantly driven by a net addition to the allowance for credit losses.


Selected metrics
	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(in millions, except headcount)	2023		2022		Change		2023		2022		Change
Selected balance sheet data (period-end)
Total assets	$	1,446,231	$	1,384,618	4	%	$	1,446,231	$	1,384,618	4	%
Loans:
Loans retained(a)	194,255		180,604		8		194,255		180,604		8
Loans held-for-sale and loans at fair value(b)	39,069		40,357		(3)		39,069		40,357		(3)
Total loans	233,324		220,961		6		233,324		220,961		6
Equity	108,000		103,000		5		108,000		103,000		5
Selected balance sheet data (average)
Total assets	$	1,423,182	$	1,403,247	1		$	1,438,210	$	1,413,662	2
Trading assets-debt and equity instruments	522,845		386,895		35		515,023		405,655		27
Trading assets-derivative receivables	65,774		83,084		(21)		64,301		77,846		(17)
Loans:
Loans retained(a)	$	193,683	$	176,469	10		$	189,499	$	169,175	12
Loans held-for-sale and loans at fair value(b)	39,227		45,150		(13)		39,964		48,176		(17)
Total loans	$	232,910	$	221,619	5		$	229,463	$	217,351	6
Deposits	726,617		721,690		1		716,439		750,538		(5)
Equity	108,000		103,000		5		108,000		103,000		5
Headcount	74,900		71,797		4	%	74,900		71,797		4	%

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

(b)Loans held-for-sale and loans at fair value primarily reflect lending-related positions originated and purchased in Markets, including loans held for securitization.


Selected metrics
	As of or for the three months ended September 30,								As of or for the nine months ended September 30,
(in millions, except ratios)	2023			2022			Change		2023			2022			Change
Credit data and quality statistics
Net charge-offs/(recoveries)	$	45		$	17		165	%	$	151		$	75		101	%
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained(a)	$	978		$	583		68		$	978		$	583		68
Nonaccrual loans held-for-sale and loans at fair value(b)	801			824			(3)		801			824			(3)
Total nonaccrual loans	1,779			1,407			26		1,779			1,407			26
Derivative receivables	293			339			(14)		293			339			(14)
Assets acquired in loan satisfactions	126			85			48		126			85			48
Total nonperforming assets	$	2,198		$	1,831		20		$	2,198		$	1,831		20
Allowance for credit losses:
Allowance for loan losses	$	2,414		$	2,032		19		$	2,414		$	2,032		19
Allowance for lending-related commitments	1,095			1,582			(31)		1,095			1,582			(31)
Total allowance for credit losses	$	3,509		$	3,614		(3)	%	$	3,509		$	3,614		(3)	%
Net charge-off/(recovery) rate(c)	0.09		%	0.04		%			0.11		%	0.06		%
Allowance for loan losses to period-end loans retained	1.24			1.13					1.24			1.13
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits(d)	1.74			1.49					1.74			1.49
Allowance for loan losses to nonaccrual loans retained(a)	247			349					247			349
Nonaccrual loans to total period-end loans	0.76		%	0.64		%			0.76		%	0.64		%

(a)Allowance for loan losses of $182 million and $111 million were held against these nonaccrual loans at September 30, 2023 and 2022, respectively.

(b)At September 30, 2023 and 2022, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $65 million and $143 million, respectively. These amounts have been excluded based upon the government guarantee.

(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. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 19-20.


Investment banking fees
	Three months ended September 30,					Nine months ended September 30,
(in millions)	2023		2022		Change	2023		2022		Change
Advisory	$	767	$	848	(10)%	$	2,063	$	2,313	(11)%
Equity underwriting	274		290		(6)	827		784		5
Debt underwriting(a)	676		624		8	2,038		2,365		(14)
Total investment banking fees	$	1,717	$	1,762	(3)%	$	4,928	$	5,462	(10)%

(a)Represents long-term debt and loan syndications.


League table results – wallet share
	Three months ended September 30,								Nine months ended September 30,								Full-year 2022
	2023				2022				2023				2022
	Rank		Share		Rank		Share		Rank		Share		Rank		Share		Rank		Share
Based on fees(a)
M&A(b)
Global	#	2	11.1	%	#	2	8.6	%	#	2	9.5	%	#	2	7.8	%	#	2	7.9	%
U.S.	2		12.6		3		8.2		2		11.8		2		8.4		2		8.9
Equity and equity-related(c)
Global	2		7.3		2		5.9		1		7.2		2		5.8		2		5.7
U.S.	3		11.3		1		16.0		2		12.9		1		14.3		1		13.8
Long-term debt(d)
Global	1		7.2		2		6.3		1		6.7		1		7.3		1		6.9
U.S.	2		10.3		2		12.0		2		10.1		1		12.3		1		12.2
Loan syndications
Global	1		11.6		1		9.2		1		12.1		1		10.8		1		11.0
U.S.	1		12.5		1		13.0		1		14.6		1		12.1		1		12.9
Global investment banking fees(e)	#	1	9.3	%	#	1	7.7	%	#	1	8.6	%	#	1	7.8	%	#	1	7.8	%

(a)Source: Dealogic as of October 2, 2023. Reflects the ranking of revenue wallet and market share.

(b)Global M&A excludes any withdrawn transactions. U.S. M&A revenue wallet represents wallet from client parents based in the U.S.

(c)Global equity and equity-related ranking includes rights offerings and Chinese A-Shares.

(d)Long-term debt rankings include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, asset-backed securities (“ABS”) and mortgage-backed securities (“MBS”); and exclude money market, short-term debt and U.S. municipal securities.

(e)Global investment banking fees exclude money market, short-term debt and shelf securities.

Markets revenue

The following table summarizes selected income statement data for the Markets businesses. Markets includes both Fixed Income Markets and Equity Markets. Markets revenue consists of principal transactions, fees, commissions and other income, as well as net interest income. The Firm assesses its Markets business performance on a total revenue basis, as offsets may occur across revenue line items. For example, securities that generate net interest income may be risk-managed by derivatives that are

reflected at fair value in principal transactions revenue. Refer to Notes 6 and 7 for a description of the composition of these income statement line items. Refer to Markets revenue on page 70 of JPMorgan Chase’s 2022 Form 10-K for further information.

For the periods presented below, the primary source of principal transactions revenue was the amount recognized upon executing new transactions.


	Three months ended September 30,						Three months ended September 30,
	2023						2022
(in millions)	Fixed Income Markets		Equity Markets		Total Markets		Fixed Income Markets		Equity Markets		Total Markets
Principal transactions	$	2,985	$	2,921	$	5,906	$	3,113	$	2,070	$	5,183
Lending- and deposit-related fees	81		10		91		75		7		82
Commissions and other fees	147		454		601		139		450		589
All other income	319		(19)		300		213		(3)		210
Noninterest revenue	3,532		3,366		6,898		3,540		2,524		6,064
Net interest income(a)	982		(1,299)		(317)		929		(222)		707
Total net revenue	$	4,514	$	2,067	$	6,581	$	4,469	$	2,302	$	6,771

	Nine months ended September 30,						Nine months ended September 30,
	2023						2022
(in millions)	Fixed Income Markets		Equity Markets		Total Markets		Fixed Income Markets		Equity Markets		Total Markets
Principal transactions	$	10,503	$	9,300	$	19,803	$	9,436	$	6,802	$	16,238
Lending- and deposit-related fees	227		24		251		229		15		244
Commissions and other fees	442		1,448		1,890		423		1,513		1,936
All other income	1,019		(73)		946		496		(74)		422
Noninterest revenue	12,191		10,699		22,890		10,584		8,256		18,840
Net interest income(a)	2,589		(3,498)		(909)		4,294		180		4,474
Total net revenue	$	14,780	$	7,201	$	21,981	$	14,878	$	8,436	$	23,314

(a)The decline in Markets net interest income was driven by higher funding costs.


Selected metrics
	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(in millions, except where otherwise noted)	2023		2022		Change		2023		2022		Change
Assets under custody (“AUC”) by asset class (period-end) (in billions):
Fixed Income	$	14,397	$	14,025	3	%	$	14,397	$	14,025	3	%
Equity	11,633		9,767		19		11,633		9,767		19
Other(a)	3,695		3,365		10		3,695		3,365		10
Total AUC	$	29,725	$	27,157	9		$	29,725	$	27,157	9
Merchant processing volume (in billions)(b)	$	610.1	$	545.4	12		$	1,769.0	$	1,575.2	12
Client deposits and other third-party liabilities (average)(c)	$	638,119	$	669,215	(5)%		$	639,792	$	700,095	(9)%

(a)Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts.

(b)Represents Firmwide merchant processing volume.

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


International metrics
	As of or for the three months ended September 30,							As of or for the nine months ended September 30,
(in millions, except where otherwise noted)	2023		2022			Change		2023		2022			Change
Total net revenue(a)
Europe/Middle East/Africa	$	3,174	$	3,653		(13)	%	$	11,255	$	12,625		(11)	%
Asia-Pacific	1,826		2,060			(11)		5,848		6,068			(4)
Latin America/Caribbean	555		549			1		1,660		1,690			(2)
Total international net revenue	5,555		6,262			(11)		18,763		20,383			(8)
North America	6,175		5,663		(c)	9		19,086		17,121		(c)	11
Total net revenue	$	11,730	$	11,925		(2)		$	37,849	$	37,504		1

Loans retained (period-end)(a)
Europe/Middle East/Africa	$	40,080	$	38,244		5		$	40,080	$	38,244		5
Asia-Pacific	14,444		16,670			(13)		14,444		16,670			(13)
Latin America/Caribbean	8,688		8,035			8		8,688		8,035			8
Total international loans	63,212		62,949			—		63,212		62,949			—
North America	131,043		117,655			11		131,043		117,655			11
Total loans retained	$	194,255	$	180,604		8		$	194,255	$	180,604		8

Client deposits and other third-party liabilities (average)(b)
Europe/Middle East/Africa	$	226,137	$	240,548		(6)		$	228,469	$	253,300		(10)
Asia-Pacific	125,087		123,024			2		126,452		129,059			(2)
Latin America/Caribbean	38,294		38,231			—		38,646		41,207			(6)
Total international	$	389,518	$	401,803		(3)		$	393,567	$	423,566		(7)
North America	248,601		267,412			(7)		246,225		276,529			(11)
Total client deposits and other third-party liabilities	$	638,119	$	669,215		(5)		$	639,792	$	700,095		(9)

AUC (period-end)(b) (in billions)
North America	$	20,049	$	18,285		10		$	20,049	$	18,285		10
All other regions	9,676		8,872			9		9,676		8,872			9
Total AUC	$	29,725	$	27,157		9	%	$	29,725	$	27,157		9	%

(a)Total net revenue and loans retained (excluding loans held-for-sale and loans at fair value) are based on the location of the trading desk, booking location, or domicile of the client, as applicable.

(b)Client deposits and other third-party liabilities pertaining to the Payments and Securities Services businesses, and AUC, are based on the domicile of the client.

COMMERCIAL BANKING

Refer to pages 73-75 of JPMorgan Chase’s 2022 Form 10-K and Line of Business Metrics on page 207 for a discussion of the business profile of CB.


Selected income statement data
	Three months ended September 30,							Nine months ended September 30,
(in millions)	2023			2022		Change		2023			2022		Change
Revenue
Lending- and deposit-related fees	$	410	(b)	$	288	42	%	$	886	(b)	$	1,000	(11)	%
Card income	198			177		12		572			514		11
All other income	364			371		(2)		1,130			1,093		3
Noninterest revenue	972			836		16		2,588			2,607		(1)
Net interest income	3,059		(b)	2,212		38		8,942		(b)	5,522		62
Total net revenue(a)	4,031			3,048		32		11,530			8,129		42

Provision for credit losses	90		(b)	618		(85)		1,604		(b)	984		63

Noninterest expense
Compensation expense	730		(b)	577		27		2,027		(b)	1,689		20
Noncompensation expense	645			603		7		1,956			1,776		10
Total noninterest expense	1,375			1,180		17		3,983			3,465		15

Income before income tax expense	2,566			1,250		105		5,943			3,680		61
Income tax expense	631			304		108		1,453			890		63
Net income	$	1,935		$	946	105	%	$	4,490		$	2,790	61	%

(a)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 $103 million and $80 million for the three months ended September 30, 2023 and 2022, respectively, and $274 million and $222 million for the nine months ended September 30, 2023 and 2022, respectively.

(b)Includes First Republic. Refer to page 23 for additional information.


Selected income statement data (continued)
	Three months ended September 30,									Nine months ended September 30,
(in millions, except ratios)	2023				2022			Change		2023				2022			Change
Revenue by product
Lending	$	1,662		(d)	$	1,176		41	%	$	4,364		(d)	$	3,339		31	%
Payments(a)	2,045				1,568			30		6,205				3,754			65
Investment banking(a)(b)	290				274			6		869				816			6
Other	34				30			13		92				220			(58)
Total net revenue	$	4,031			$	3,048		32		$	11,530			$	8,129		42

Investment Banking and Markets revenue, gross(c)	$	821			$	761		8		$	2,469			$	2,278		8

Revenue by client segments
Middle Market Banking	$	1,876		(e)	$	1,366		37		$	5,473		(e)	$	3,515		56
Corporate Client Banking	1,208				1,052			15		3,613				2,809			29
Commercial Real Estate Banking	921			(e)	624			48		2,369			(e)	1,795			32
Other	26				6			333		75				10			NM
Total net revenue	$	4,031			$	3,048		32	%	$	11,530			$	8,129		42	%

Financial ratios
Return on equity	25		%		14		%			20		%		14		%
Overhead ratio	34				39					35				43

(a)In the third quarter of 2023, certain revenue from CIB Markets products was reclassified from payments to investment banking. Prior-period amounts have been revised to conform with the current presentation.

(b)Includes CB’s share of revenue from Investment Banking and Markets' products sold to CB clients through the CIB which is reported in All other income.

(c)Includes gross revenues earned by the Firm that are subject to a revenue sharing arrangement between CB and the CIB for Investment Banking and Markets' products sold to CB clients. This includes revenues related to fixed income and equity markets products. Refer to Business Segment Results on page 21 for discussion of revenue sharing.

(d)Includes First Republic. Refer to page 23 for additional information.

(e)Middle Market Banking and Commercial Real Estate Banking included $93 million and $273 million, respectively, for the three months ended September 30, 2023, and $141 million and $403 million, respectively, for the nine months ended September 30, 2023, associated with First Republic.

Quarterly results

Net income was $1.9 billion, up 105%.

Net revenue was $4.0 billion, up 32%. Net interest income was $3.1 billion, up 38%, predominantly driven by deposit margin expansion on higher rates and higher average loans, largely First Republic, partially offset by lower average deposits.

Noninterest revenue was $972 million, up 16%, driven by:

•higher lending-related revenue predominantly driven by the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, and

•higher card income,

partially offset by

•lower deposit-related fees due to the higher level of credits earned by clients that reduce such fees.

Noninterest expense was $1.4 billion, up 17%, driven by higher compensation expense, reflecting an increase in headcount including front office and technology investments, as well as higher volume-related expense, including the impact of new client acquisitions.

The provision for credit losses was $90 million, reflecting net charge-offs of $53 million and a net addition of $37 million to the allowance for credit losses, driven by updates to certain commercial real estate pricing variables, largely offset by other changes in the central scenario and the impact of changes in the loan and lending-related commitment portfolios.

The prior year provision was $618 million, reflecting a net addition to the allowance for credit losses.

Refer to Note 6 for additional information on lending- related fees.

Refer to Credit and Investment Risk Management on pages 62-83 and Allowance for Credit Losses on pages 80-82 for further discussions of the credit portfolios and the allowance for credit losses.

Year-to-date results

Net income was $4.5 billion, up 61%.

Net revenue was $11.5 billion, up 42%. Net interest income was $8.9 billion, up 62%, driven by deposit margin expansion on higher rates and higher average loans, largely First Republic, partially offset by lower average deposits.

Noninterest revenue was $2.6 billion, down 1%, driven by:

•lower deposit-related fees due to the higher level of credits earned by clients that reduce such fees,

predominantly offset by

•higher lending-related revenue predominantly driven by the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, and

•higher card income.

Noninterest expense was $4.0 billion, up 15%, driven by higher compensation expense, reflecting an increase in headcount including front office and technology investments, as well as higher volume-related expense, including the impact of new client acquisitions.

The provision for credit losses was $1.6 billion, reflecting a $1.4 billion net addition to the allowance for credit losses, largely driven by the net effect of changes in the Firm's weighted-average macroeconomic outlook, including deterioration in the outlook for commercial real estate, as well as net downgrade activity.

The net addition also included $608 million to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023.

The prior year provision was $1.0 billion, reflecting a net addition to the allowance for credit losses.


Selected metrics
	As of or for the three months ended September 30,							As of or for the nine months ended September 30,
(in millions, except headcount)	2023			2022		Change		2023			2022		Change
Selected balance sheet data (period-end)
Total assets	$	300,367		$	247,485	21	%	$	300,367		$	247,485	21	%
Loans:
Loans retained	281,389		(b)	231,829		21		281,389		(b)	231,829		21
Loans held-for-sale and loans at fair value	915			137		NM		915			137		NM
Total loans	$	282,304		$	231,966	22		$	282,304		$	231,966	22
Equity	30,000			25,000		20		30,000			25,000		20

Period-end loans by client segment
Middle Market Banking(a)	$	78,955	(c)	$	71,707	10		$	78,955	(c)	$	71,707	10
Corporate Client Banking	59,645			52,940		13		59,645			52,940		13
Commercial Real Estate Banking	143,413		(c)	107,241		34		143,413		(c)	107,241		34
Other	291			78		272		291			78		272
Total loans(a)	$	282,304		$	231,966	22		$	282,304		$	231,966	22

Selected balance sheet data (average)
Total assets	$	301,964		$	246,318	23		$	282,939		$	239,772	18
Loans:
Loans retained	281,602		(d)	227,539		24		262,998		(d)	218,255		21
Loans held-for-sale and loans at fair value	1,378			1,589		(13)		1,087			1,578		(31)
Total loans	$	282,980		$	229,128	24		$	264,085		$	219,833	20

Average loans by client segment
Middle Market Banking	$	78,774	(e)	$	70,002	13		$	76,635	(e)	$	66,387	15
Corporate Client Banking	60,816			52,432		16		58,868			48,645		21
Commercial Real Estate Banking	142,955		(e)	106,546		34		128,292		(e)	104,659		23
Other	435			148		194		290			142		104
Total loans	$	282,980		$	229,128	24		$	264,085		$	219,833	20

Deposits	262,148			281,276		(7)		267,748			299,337		(11)
Equity	30,000			25,000		20		29,341			25,000		17

Headcount	17,281			14,299		21	%	17,281			14,299		21	%

(a)As of September 30, 2023 and 2022, total loans included $48 million and $205 million of loans, respectively, under the PPP, of which $43 million and $187 million were in Middle Market Banking, respectively. Refer to Credit Portfolio on pages 108-109 of JPMorgan Chase's 2022 Form 10-K for a further discussion of the PPP.

(b)Includes First Republic. Refer to page 23 for additional information.

(c)As of September 30, 2023, included $6.1 billion and $32.7 billion for Middle Market Banking and Commercial Real Estate Banking, respectively, associated with First Republic.

(d)Average loans retained associated with First Republic were $39.0 billion and $22.7 billion for the three and nine months ended September 30, 2023, respectively.

(e)Average Middle Market Banking and Commercial Real Estate Banking loans associated with First Republic were $6.2 billion and $32.8 billion, respectively, for the three months ended September 30, 2023, and $3.5 billion and $19.1 billion, respectively, for the nine months ended September 30, 2023.


Selected metrics (continued)
	As of or for the three months ended September 30,									As of or for the nine months ended September 30,
(in millions, except ratios)	2023				2022			Change		2023				2022			Change
Credit data and quality statistics
Net charge-offs/(recoveries)	$	53			$	42		26	%	$	190			$	49		288	%
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained(a)	$	889			$	836		6	%	$	889			$	836		6	%
Nonaccrual loans held-for-sale and loans at fair value	24				—			NM		24				—			NM
Total nonaccrual loans	$	913			$	836		9		$	913			$	836		9
Assets acquired in loan satisfactions	47				7			NM		47				7			NM
Total nonperforming assets	$	960			$	843		14		$	960			$	843		14
Allowance for credit losses:
Allowance for loan losses	$	4,721			$	3,050		55		$	4,721			$	3,050		55
Allowance for lending-related commitments	845				864			(2)		845				864			(2)
Total allowance for credit losses	$	5,566		(c)	$	3,914		42	%	$	5,566		(c)	$	3,914		42	%
Net charge-off/(recovery) rate(b)	0.07		%		0.07		%			0.10		%		0.03		%
Allowance for loan losses to period-end loans retained	1.68				1.32					1.68				1.32
Allowance for loan losses to nonaccrual loans retained(a)	531				365					531				365
Nonaccrual loans to period-end total loans	0.32				0.36					0.32				0.36

(a)Allowance for loan losses of $164 million and $150 million was held against nonaccrual loans retained at September 30, 2023 and 2022, respectively.

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

(c)As of September 30, 2023, included a $630 million allowance for First Republic.

ASSET & WEALTH MANAGEMENT

Refer to pages 76-78 of JPMorgan Chase’s 2022 Form 10-K and Line of Business Metrics on pages 207-208 for a discussion of the business profile of AWM.


Selected income statement data
(in millions, except ratios)	Three months ended September 30,									Nine months ended September 30,
	2023				2022			Change		2023				2022			Change
Revenue
Asset management fees	$	2,988			$	2,803		7	%	$	8,679			$	8,499		2	%
Commissions and other fees	177				241			(27)		554				697			(21)
All other income	266			(a)	82			224		889			(a)	253			251
Noninterest revenue	3,431				3,126			10		10,122				9,449			7
Net interest income	1,574			(b)	1,413			11		4,610			(b)	3,711			24
Total net revenue	5,005				4,539			10		14,732				13,160			12

Provision for credit losses	(13)			(b)	(102)			87		160			(b)	96			67

Noninterest expense
Compensation expense	1,777				1,649			8		5,258				4,687			12
Noncompensation expense	1,361				1,379			(1)		4,134				4,120			—
Total noninterest expense	3,138			(b)	3,028			4		9,392			(b)	8,807			7

Income before income tax expense	1,880				1,613			17		5,180				4,257			22
Income tax expense	463				394			18		1,170				1,026			14
Net income	$	1,417			$	1,219		16		$	4,010			$	3,231		24

Revenue by line of business
Asset Management	$	2,164			$	2,209		(2)		$	6,726			$	6,660		1
Global Private Bank	2,841			(b)	2,330			22		8,006			(b)	6,500			23
Total net revenue	$	5,005			$	4,539		10	%	$	14,732			$	13,160		12	%

Financial ratios
Return on equity	32		%		28		%			32		%		25		%
Overhead ratio	63				67					64				67
Pre-tax margin ratio:
Asset Management	29				31					31				31
Global Private Bank	44				40					38				34
Asset & Wealth Management	38				36					35				32

(a)Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic. Refer to Note 6 for additional information.

(b)Includes First Republic. Refer to page 23 for additional information.

Quarterly results

Net income was $1.4 billion, up 16%.

Net revenue was $5.0 billion, up 10%. Net interest income was $1.6 billion, up 11%. Noninterest revenue was $3.4 billion, up 10%.

Revenue from Asset Management was $2.2 billion, down 2%, driven by:

•lower performance fees,

•lower NII due to higher funding costs, and

•net investment valuation losses,

predominantly offset by

•higher asset management fees reflecting strong net inflows.

Revenue from Global Private Bank was $2.8 billion, up 22%, predominantly driven by:

•higher net interest income on higher average loans and higher lending-related revenue driven by the amortization

of the fair value discount on certain acquired lending-related commitments associated with First Republic,

partially offset by

•lower net interest income from deposits driven by lower average balances, largely offset by margin expansion.

Noninterest expense was $3.1 billion, up 4%, driven by the impact from the acquisitions of J.P. Morgan Asset Management China and Global Shares, the impact of First Republic and continued growth in private banking advisor teams.

The provision for credit losses was a net benefit of $13 million.

The prior year provision was a net benefit of $102 million, predominantly driven by a net reduction in the allowance for credit losses.

Refer to Note 6 for additional information on lending related fees.

Refer to Credit and Investment Risk Management on pages 62-83 and Allowance for Credit Losses on pages 80-82 for further discussions of the credit portfolios and the allowance for credit losses.

Year-to-date results

Net income was $4.0 billion, up 24%.

Net revenue was $14.7 billion, up 12%. Net interest income was $4.6 billion, up 24%. Noninterest revenue was $10.1 billion, up 7%.

Revenue from Asset Management was $6.7 billion, up 1%, driven by:

•a gain of $339 million on the original minority interest in CIFM upon the Firm's acquisition of the remaining 51% interest in the entity, and

•higher asset management fees reflecting strong net inflows and the removal of most money market fund fee waivers in the prior year, largely offset by lower market levels,

predominantly offset by

•lower performance fees,

•lower NII due to higher funding costs, and

•net investment valuation losses.

Revenue from Global Private Bank was $8.0 billion, up 23%, driven by:

•higher net interest income from deposits driven by margin expansion reflecting higher rates on lower average balances, and

•higher lending-related revenue predominantly driven by the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic.

Noninterest expense was $9.4 billion, up 7%, predominantly driven by continued growth in private banking advisor teams, the impact from the acquisitions of Global Shares and J.P. Morgan Asset Management China and higher revenue-related compensation.

The provision for credit losses was $160 million, predominantly driven by a $146 million addition to the allowance for credit losses to establish the allowance for the First Republic loans and lending-related commitments, in the second quarter of 2023.

The prior year provision for credit losses was $96 million driven by a net addition to the allowance for credit losses.


Selected metrics
	As of or for the three months ended September 30,									As of or for the nine months ended September 30,
(in millions, except ranking data, headcount and ratios)	2023				2022			Change		2023				2022			Change
% of JPM mutual fund assets and ETFs rated as 4- or 5-star(a)	70		%		75		%			70		%		75		%
% of JPM mutual fund assets and ETFs ranked in 1st or 2nd quartile:(b)
1 year	39				72					39				72
3 years	67				76					67				76
5 years	81				83					81				83

Selected balance sheet data (period-end)(c)
Total assets	$	249,866			$	232,303		8	%	$	249,866			$	232,303		8	%
Loans	228,114			(d)	214,989			6		228,114			(d)	214,989			6
Deposits	215,152				242,315			(11)		215,152				242,315			(11)
Equity	17,000				17,000			—		17,000				17,000			—

Selected balance sheet data (average)(c)
Total assets	$	245,616			$	232,748		6		$	237,870			$	233,209		2
Loans	223,760			(e)	216,714			3		218,278			(e)	216,065			1
Deposits	201,975				253,026			(20)		212,652				269,754			(21)
Equity	17,000				17,000			—		16,560				17,000			(3)

Headcount	28,083				25,769			9		28,083				25,769			9

Number of Global Private Bank client advisors	3,443				3,110			11		3,443				3,110			11

Credit data and quality statistics(c)
Net charge-offs/(recoveries)	$	1			$	(13)		NM		$	1			$	(5)		NM
Nonaccrual loans	621				467			33		621				467			33
Allowance for credit losses:
Allowance for loan losses	$	642			$	461		39		$	642			$	461		39
Allowance for lending-related commitments	32				21			52		32				21			52
Total allowance for credit losses	$	674		(f)	$	482		40	%	$	674		(f)	$	482		40	%
Net charge-off/(recovery) rate	—		%		(0.02)		%			—		%		—		%
Allowance for loan losses to period-end loans	0.28				0.21					0.28				0.21
Allowance for loan losses to nonaccrual loans	103				99					103				99
Nonaccrual loans to period-end loans	0.27				0.22					0.27				0.22

(a)Represents the Morningstar Rating for all domiciled funds except for Japan domiciled funds which use Nomura. Includes only Asset Management retail active open-ended mutual funds and active ETFs that have a rating. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds. Prior-period amounts have been revised to conform with the current presentation.

(b)Quartile ranking sourced from Morningstar, Lipper and Nomura based on country of domicile. Includes only Asset Management retail active open-ended mutual funds and active ETFs that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds. Prior-period amounts have been revised to conform with the current presentation.

(c)Loans, deposits and related credit data and quality statistics relate to the Global Private Bank business.

(d)Includes First Republic. Refer to page 23 for additional information.

(e)For the three and nine months ended September 30, 2023, included $13.0 billion and $7.6 billion, respectively, associated with First Republic.

(f)At September 30, 2023, included $115 million allowance associated with First Republic.

Client assets

Assets under management of $3.2 trillion were up 22%, while client assets of $4.6 trillion were up 21%, driven by continued net inflows and higher market levels.


Client assets
	As of September 30,
(in billions)	2023		2022		Change
Assets by asset class
Liquidity	$	867	$	615	41	%
Fixed income	707		612		16
Equity	780		609		28
Multi-asset	626		577		8
Alternatives	206		203		1
Total assets under management	3,186		2,616		22
Custody/brokerage/administration/deposits	1,458		1,207		21
Total client assets(a)	$	4,644	$	3,823	21

Assets by client segment
Private Banking	$	888	$	698	27
Global Institutional	1,424		1,209		18
Global Funds	874		709		23
Total assets under management	$	3,186	$	2,616	22

Private Banking	$	2,249	$	1,848	22
Global Institutional	1,514		1,261		20
Global Funds	881		714		23
Total client assets(a)	$	4,644	$	3,823	21	%

(a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager.


Client assets (continued)
	Three months ended September 30,				Nine months ended September 30,
(in billions)	2023		2022		2023		2022
Assets under management rollforward
Beginning balance	$	3,188	$	2,743	$	2,766	$	3,113
Net asset flows:
Liquidity	40		(36)		193		(88)
Fixed income	1		9		64		5
Equity	16		6		58		26
Multi-asset	1		(5)		2		(2)
Alternatives	2		2		4		8
Market/performance/other impacts	(62)		(103)		99		(446)
Ending balance, September 30	$	3,186	$	2,616	$	3,186	$	2,616

Client assets rollforward
Beginning balance	$	4,558	$	3,798	$	4,048	$	4,295
Net asset flows	132		(15)		396		(21)
Market/performance/other impacts	(46)		40		200		(451)
Ending balance, September 30	$	4,644	$	3,823	$	4,644	$	3,823


International
	Three months ended September 30,						Nine months ended September 30,
(in millions)	2023		2022		Change		2023		2022		Change
Total net revenue(a)
Europe/Middle East/Africa	$	807	$	868	(7)	%	$	2,507	$	2,357	6	%
Asia-Pacific	451		458		(2)		1,425		1,370		4
Latin America/Caribbean	260		237		10		747		736		1
Total international net revenue	1,518		1,563		(3)		4,679		4,463		5
North America	3,487		2,976		17		10,053		8,697		16
Total net revenue(a)	$	5,005	$	4,539	10	%	$	14,732	$	13,160	12	%

(a)Regional revenue is based on the domicile of the client.


	As of September 30,						As of September 30,
(in billions)	2023		2022		Change		2023		2022		Change
Assets under management
Europe/Middle East/Africa	$	510	$	455	12	%	$	510	$	455	12	%
Asia-Pacific	242		205		18		242		205		18
Latin America/Caribbean	80		67		19		80		67		19
Total international assets under management	832		727		14		832		727		14
North America	2,354		1,889		25		2,354		1,889		25
Total assets under management	$	3,186	$	2,616	22		$	3,186	$	2,616	22

Client assets
Europe/Middle East/Africa	$	681	$	566	20		$	681	$	566	20
Asia-Pacific	379		306		24		379		306		24
Latin America/Caribbean	218		181		20		218		181		20
Total international client assets	1,278		1,053		21		1,278		1,053		21
North America	3,366		2,770		22		3,366		2,770		22
Total client assets	$	4,644	$	3,823	21	%	$	4,644	$	3,823	21	%

CORPORATE

Refer to pages 79-80 of JPMorgan Chase’s 2022 Form 10-K for a discussion of Corporate.


Selected income statement and balance sheet data
	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(in millions, except headcount)	2023			2022		Change	2023			2022		Change
Revenue
Principal transactions	$	128		$	(76)	NM	$	323		$	(220)	NM
Investment securities losses	(669)			(959)		30%	(2,437)			(1,506)		(62)%
All other income	116		(c)	(59)		NM	2,914		(c)	43		NM
Noninterest revenue	(425)			(1,094)		61	800			(1,683)		NM
Net interest income	1,983		(c)	792		150	5,461		(c)	580		NM
Total net revenue(a)	1,558			(302)		NM	6,261			(1,103)		NM
Provision for credit losses	46			(21)		NM	173			36		381
Noninterest expense	696		(c)	305		128	2,008		(c)	695		189
Income/(loss) before income tax expense/(benefit)	816			(586)		NM	4,080			(1,834)		NM
Income tax expense/(benefit)	4		(d)	(292)		NM	384		(d)	(510)		NM
Net income/(loss)	$	812		$	(294)	NM	$	3,696		$	(1,324)	NM
Total net revenue
Treasury and CIO	$	1,640		$	(180)	NM	$	4,007		$	(1,042)	NM
Other Corporate	(82)		(c)	(122)		33	2,254		(c)	(61)		NM
Total net revenue	$	1,558		$	(302)	NM	$	6,261		$	(1,103)	NM
Net income/(loss)
Treasury and CIO	$	1,129		$	(68)	NM	$	2,810		$	(728)	NM
Other Corporate	(317)		(c)	(226)		(40)	886		(c)	(596)		NM
Total net income/(loss)	$	812		$	(294)	NM	$	3,696		$	(1,324)	NM
Total assets (period-end)	$	1,275,673		$	1,408,726	(9)	$	1,275,673		$	1,408,726	(9)
Loans (period-end)	2,099			2,206		(5)	2,099			2,206		(5)
Deposits (period-end)(b)	20,363			14,449		41	20,363			14,449		41
Headcount	47,280			42,806		10%	47,280			42,806		10%

(a)Included tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of $57 million and $59 million for the three months ended September 30, 2023 and 2022, respectively, and $158 million and $177 million for the nine months ended September 30, 2023 and 2022, respectively.

(b)Predominantly relates to the Firm's international consumer initiatives.

(c)Includes the impact of the First Republic acquisition. Refer to Note 28 for additional information.

(d)Income taxes associated with the First Republic acquisition are reflected in the estimated bargain purchase gain.

Quarterly results

Net income was $812 million, compared with a net loss of $294 million in the prior year.

Net revenue was $1.6 billion, compared with a net loss of $302 million in the prior year, driven by higher net interest income due to higher rates.

Noninterest revenue was a loss of $425 million, compared with a loss of $1.1 billion in the prior year, driven by:

•lower net investment securities losses on sales of U.S. Treasures and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio,

•higher losses in the prior year on certain revenues associated with foreign exchange rate movements risk managed by Treasury and CIO,

•the impact of higher short-term cash deployment activities as a result of the current interest rate environment, and

•measurement period adjustments of $100 million resulting in an increase to the estimated bargain purchase gain associated with the First Republic acquisition.

Noninterest expense of $696 million was up $391 million driven by:

•$240 million associated with First Republic, largely driven by integration and restructuring costs,

•a greater benefit in the prior year on certain expenses associated with foreign exchange rate movements risk managed by Treasury and CIO, and

•higher legal expense,

partially offset by

•lower compensation expense.

Refer to Business Segment Results on page 23 for additional information on First Republic.

The net impact of movements in foreign exchange rates associated with the foreign exchange risk that was transferred to Treasury and CIO on certain revenues and

expense were not material to net income. Refer to Foreign Exchange Risk on page 21 for additional information.

The current period tax expense was driven by changes in the level and mix of income and expenses subject to U.S. federal and state and local taxes that also impacted the Firm’s tax reserves, including receipt of interest associated with tax refunds.

Year-to-date results

Net income was $3.7 billion, compared with a net loss of $1.3 billion in the prior year.

Net revenue was $6.3 billion, compared with a loss of $1.1 billion in the prior year, driven by higher net interest income due to higher rates, partially offset by lower Firmwide average deposit balances available for deployment in Treasury and CIO.

Noninterest revenue was $800 million, compared with a loss of $1.7 billion, driven by:

•a $2.8 billion estimated bargain purchase gain associated with the First Republic acquisition,

•higher losses in the prior year on certain revenues associated with foreign exchange rate movements risk managed by Treasury and CIO, and

•the impact of higher short-term cash deployment activities as a result of the current interest rate environment,

partially offset by

•higher net investment securities losses related to the sales of U.S. Treasuries and U.S. GSE and government agency MBS, associated with repositioning the investment securities portfolio,

•the absence of proceeds in the prior year from an insurance settlement, and

•lower net gains related to certain other Corporate investments.

Noninterest expense of $2.0 billion was up $1.3 billion driven by:

•$802 million associated with First Republic, predominantly driven by expenses recorded in the second quarter of 2023, for the First Republic individuals who were not employees of the Firm until July 2, 2023, as well as integration and restructuring costs,

•a greater benefit in the prior year on certain expenses associated with foreign exchange rate movements risk managed by Treasury and CIO, and

•higher legal expense,

partially offset by

•lower compensation expense.

Refer to Business Segment Results on page 23 for additional information on First Republic.

The provision for credit losses was $173 million, predominantly driven by an addition to the allowance for credit losses related to a single name exposure.

Refer to Note 10 for additional information on the investment securities portfolio, and Note 13 for additional information on the allowance for credit losses.

The current period tax expense benefited from the income tax expense associated with the First Republic acquisition reflected in the estimated bargain purchase gain, partially offset by changes in the level and mix of income and

expenses subject to U.S. federal and state and local taxes that also impacted the Firm's tax reserves.

Other Corporate also reflects the Firm's international consumer initiatives, which includes Chase U.K., the Firm's digital retail bank in the U.K.; Nutmeg, a digital wealth manager in the U.K.; and a 40% ownership stake in C6 Bank, a digital bank in Brazil.

Treasury and CIO overview

At September 30, 2023, the average credit rating of the Treasury and CIO investment securities comprising the portfolio in the table below was AA+ (based upon external ratings where available and, where not available, based primarily upon internal risk ratings). Refer to Note 10 for further information on the Firm’s investment securities portfolio and internal risk ratings.

Refer to Liquidity Risk Management on pages 54-61 for further information on liquidity and funding risk. Refer to Market Risk Management on pages 84-89 for information on interest rate and foreign exchange risks.


Selected income statement and balance sheet data
	As of or for the three months ended September 30,						As of or for the nine months ended September 30,
(in millions)	2023			2022		Change	2023			2022		Change
Investment securities losses	$	(669)		$	(959)	30%	$	(2,437)		$	(1,506)	(62)%
Available-for-sale securities (average)	$	201,875		$	209,008	(3)	$	201,087		$	254,798	(21)
Held-to-maturity securities (average)(a)	402,816			436,302		(8)	410,200			406,915		1
Investment securities portfolio (average)	$	604,691		$	645,310	(6)	$	611,287		$	661,713	(8)
Available-for-sale securities (period-end)	$	195,200	(c)	$	186,441	5	$	195,200	(c)	$	186,441	5
Held-to-maturity securities (period-end)(a)	388,261			430,106		(10)	388,261			430,106		(10)
Investment securities portfolio, net of allowance for credit losses (period-end)(b)	$	583,461		$	616,547	(5)%	$	583,461		$	616,547	(5)%

(a)Effective January 1, 2023, the Firm adopted new hedge accounting guidance. As permitted by the guidance, the Firm elected to transfer $7.1 billion of HTM securities to AFS. During 2022, the Firm transferred $78.3 billion of investment securities from AFS to HTM for capital management purposes. Refer to Note 1 and Note 10 for additional information on the new hedge accounting guidance.

(b)As of September 30, 2023 and 2022, the allowance for credit losses on investment securities was $87 million and $52 million, respectively.

(c)As of September 30, 2023, included $22.9 billion of AFS securities associated with First Republic. Refer to Note 28 for additional information.

FIRMWIDE RISK MANAGEMENT

Risk is an inherent part of JPMorgan Chase’s business activities. When the Firm extends a consumer or wholesale loan, advises customers and clients on their investment decisions, makes markets in securities, or offers other products or services, the Firm takes on some degree of risk. The Firm’s overall objective is to manage its business, and the associated risks, in a manner that balances serving the interests of its clients, customers and investors, and protecting the safety and soundness of the Firm.

The Firm believes that effective risk management requires, among other things:

•Acceptance of responsibility, including identification and escalation of risks by all individuals within the Firm;

•Ownership of risk identification, assessment, data and management within each of the LOBs and Corporate; and

•A Firmwide risk governance and oversight structure.

The Firm follows a disciplined and balanced compensation framework with strong internal governance and independent oversight by the Board of Directors (the “Board”). The impact of risk and control issues is carefully considered in the Firm’s performance evaluation and incentive compensation processes.

Risk governance framework

The Firm’s risk governance framework involves understanding drivers of risks, types of risks, and impacts of risks.

Refer to pages 81-84 of JPMorgan Chase’s 2022 Form 10-K for a further discussion of Firmwide risk management governance and oversight.

Risk governance and oversight functions

The following sections of this Form 10-Q and the 2022 Form 10-K discuss the risk governance and oversight functions in place to manage the risks inherent in the Firm’s business activities.


Risk governance and oversight functions	Form 10-Q page reference	Form 10-K page reference
Strategic Risk		85
Capital Risk	48–53	86-96
Liquidity Risk	54–61	97-104
Reputation Risk		105
Consumer Credit Risk	65–69	110-115
Wholesale Credit Risk	70–79	116-126
Investment Portfolio Risk	83	130
Market Risk	84–89	131-138
Country Risk	90	139-140
Climate Risk		141
Operational Risk		142-148
Compliance Risk		145
Conduct Risk		146
Legal Risk		147
Estimations and Model Risk		148

CAPITAL RISK MANAGEMENT

Capital risk is the risk the Firm has an insufficient level or composition of capital to support the Firm’s business activities and associated risks during normal economic environments and under stressed conditions.

Refer to pages 86-96 of JPMorgan Chase’s 2022 Form 10-K, Note 23 of this Form 10-Q and the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for a further discussion of the Firm’s capital risk.

Basel III Overview

The capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. Bank Holding Companies (“BHCs”) and banks, including the Firm and its insured depository institution (“IDI”) subsidiaries, including JPMorgan Chase Bank, N.A. The minimum amount of regulatory capital that must be held by BHCs and banks is determined by calculating risk-weighted assets ("RWA"), which are on-balance sheet assets and off-balance sheet exposures, weighted according to risk. Two comprehensive approaches are prescribed for calculating RWA: a standardized approach (“Basel III Standardized”), and an advanced approach (“Basel III Advanced”). For each of the risk-based capital ratios, the capital adequacy of the Firm is evaluated against the lower of the Standardized or Advanced approaches compared to their respective regulatory capital ratio requirements. The Firm’s Basel III Standardized risk-based ratios are currently more binding than the Basel III Advanced risk-based ratios.

Basel III also includes a requirement for Advanced Approaches banking organizations, including the Firm, to calculate its SLR. Refer to SLR on page 51 for additional information.

Key Regulatory Developments

CECL Regulatory Capital Transition

Beginning January 1, 2022, the $2.9 billion CECL capital benefit, provided by the Federal Reserve in response to the COVID-19 pandemic, is being phased out at 25% per year over a three-year period. As of September 30, 2023, the Firm's CET1 capital reflected the remaining $1.4 billion benefit associated with the CECL capital transition provisions.

Similarly, as of January 1, 2023, the Firm has phased out 50% of the other CECL capital transition provisions which impacted Tier 2 capital, adjusted average assets, total leverage exposure and RWA, as applicable.

Refer to Capital Risk Management on pages 86-96 and Note 1 of JPMorgan Chase’s 2022 Form 10-K for further information on CECL capital transition provisions and the CECL accounting guidance.

U.S. Basel III Finalization

In July 2023, the Federal Reserve, the Office of the Comptroller of the Currency ("OCC") and the FDIC released a proposal to amend the risk-based capital framework, entitled "Regulatory capital rule: Amendments applicable to large banking organizations and to banking organizations with significant trading activity". Under the proposal, changes would include replacement of the advanced approach with an expanded risk-based approach, which would not permit the use of internal models for the calculation of risk-weighted assets, other than for Market risk. In addition, the stress capital buffer requirement would be applicable to both the expanded risk-based approach and the standardized approach. The proposal would significantly revise risk-based capital requirements for all banks with assets of $100 billion or more, including the Firm and other U.S. global systemically important banks ("GSIBs"). The proposed effective date is July 1, 2025 with a three-year transition period applicable to the expanded risk-based approach. Based on the Firm's understanding of the proposal, as applied to its Consolidated balance sheets as of June 30, 2023, the estimated impact at the end of the transition period would be an increase to RWA of approximately 30% which results in an approximately 25% increase to CET1 capital necessary to meet its CET1 ratio requirement, all else equal. These estimates do not reflect any actions that the Firm may take to mitigate the impact of the rule as currently proposed.

Pending the finalization of the U.S. Basel III proposal, the Firm expects that it will continue to build capital above the current levels, and therefore the CET1 target of 13.5% previously set by the Firm (which was with respect to the current Standardized RWA measure) is no longer meaningful. The Firm's quarterly capital ratios may vary dependent on market conditions and other factors.

GSIB Surcharge

In July 2023, the Federal Reserve also released a proposal to amend the calculation of the GSIB surcharge. If adopted as proposed, these amendments would require the Firm to assess its GSIB surcharge on an annual basis, using the average of the quarterly surcharge calculations throughout the calendar year, with daily averaging required for certain measures within the surcharge calculation. Surcharge increments would be reduced from 50bp to 10bp and there would also be other technical amendments to the Method 2 calculation. The proposed amendments would revise risk-based capital requirements for the Firm and other U.S. GSIBs, and would become effective on two calendar quarters after the adoption of the final rule. Refer to Risk-based Capital Regulatory Requirements on pages 89-90 of JPMorgan Chase’s 2022 Form 10-K for further information on the GSIB surcharge.

TLAC and Eligible LTD Requirements

In August 2023, the Federal Reserve, the FDIC and the OCC released a proposal to expand the eligible long-term debt ("eligible LTD") and clean holding company requirements under the existing total loss-absorbing capacity ("TLAC") rule to apply to non-GSIB banks with $100 billion or more in total consolidated assets. While U.S. GSIBs are already subject to these requirements, the proposal would reduce

the amount of LTD with remaining maturities of less than two years that count towards a U.S. GSIB's TLAC requirement. The proposal would also expand the existing capital deduction framework for LTD issued by GSIBs to include LTD issued by non-GSIB banks subject to the LTD requirements.

Selected capital and RWA data

The following tables present the Firm’s risk-based capital metrics under both the Basel III Standardized and Advanced approaches and leverage-based capital metrics. Refer to Capital Risk Management on pages 86-96 of JPMorgan Chase’s 2022 Form 10-K for a further discussion of these capital metrics. Refer to Note 23 for JPMorgan Chase Bank, N.A.’s risk-based and leverage-based capital metrics. First Republic Bank was not subject to Advanced approach regulatory capital requirements. As a result, for certain exposures associated with the First Republic acquisition, Advanced RWA and any impact on Advanced Total capital is calculated under the Standardized approach as permitted by the transition provisions in the U.S. capital rules. Refer to Note 28 for additional information on the First Republic acquisition.


	Standardized								Advanced
(in millions, except ratios)	September 30, 2023			December 31, 2022			Capital ratio requirements(b)		September 30, 2023				December 31, 2022			Capital ratio requirements(b)
Risk-based capital metrics:(a)
CET1 capital	$	241,825		$	218,934				$	241,825			$	218,934
Tier 1 capital	268,579			245,631					268,579				245,631
Total capital	300,859			277,769					287,560			(c)	264,583
Risk-weighted assets	1,692,219			1,653,538					1,671,593			(c)	1,609,773
CET1 capital ratio	14.3		%	13.2		%	12.5	%	14.5		%		13.6		%	11.0	%
Tier 1 capital ratio	15.9			14.9			14.0		16.1				15.3			12.5
Total capital ratio	17.8			16.8			16.0		17.2				16.4			14.5

(a)The capital metrics reflect the CECL capital transition provisions.

(b)Represents minimum requirements and regulatory buffers applicable to the Firm for the period ended September 30, 2023. For the period ended December 31, 2022, the Basel III Standardized CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 12.0%, 13.5%, and 15.5%, respectively; the Basel III Advanced CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 10.5%, 12.0%, and 14.0%, respectively. Refer to Note 23 for additional information.

(c)Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by the transition provisions in the U.S. capital rules.


Three months ended (in millions, except ratios)	September 30, 2023			December 31, 2022			Capital ratio requirements(c)
Leverage-based capital metrics:(a)
Adjusted average assets(b)	$	3,785,641		$	3,703,873
Tier 1 leverage ratio	7.1		%	6.6		%	4.0	%
Total leverage exposure	$	4,500,253		$	4,367,092
SLR	6.0		%	5.6		%	5.0	%

(a)The capital metrics reflect the CECL capital transition provisions.

(b)Adjusted average assets, for purposes of calculating the leverage ratios, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, and other intangible assets.

(c)Represents minimum requirements and regulatory buffers applicable to the Firm. Refer to Note 23 for additional information.

Capital components

The following table presents reconciliations of total stockholders’ equity to Basel III CET1 capital, Tier 1 capital and Total capital as of September 30, 2023 and December 31, 2022.


(in millions)	September 30, 2023			December 31, 2022
Total stockholders’ equity	$	317,371		$	292,332
Less: Preferred stock	27,404			27,404
Common stockholders’ equity	289,967			264,928
Add:
Certain deferred tax liabilities(a)	3,025			2,510
Other CET1 capital adjustments(b)	6,234			6,221
Less:
Goodwill(c)	54,092			53,501
Other intangible assets	3,309			1,224

Standardized/Advanced CET1 capital	$	241,825		$	218,934
Add: Preferred stock	27,404			27,404
Less: Other Tier 1 adjustments	650			707
Standardized/Advanced Tier 1 capital	$	268,579		$	245,631
Long-term debt and other instruments qualifying as Tier 2 capital	$	12,520		$	13,569
Qualifying allowance for credit losses(d)	20,313			19,353
Other	(553)			(784)
Standardized Tier 2 capital	$	32,280		$	32,138
Standardized Total capital	$	300,859		$	277,769
Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(e)	(13,299)		(f)	(13,186)
Advanced Tier 2 capital	$	18,981		$	18,952
Advanced Total capital	$	287,560		$	264,583

(b)As of September 30, 2023 and December 31, 2022, included a net benefit associated with cash flow hedges and debit valuation adjustments ("DVA") related to structured notes recorded in AOCI of $5.8 billion and $5.2 billion and the benefit from the CECL capital transition provisions of $1.4 billion and $2.2 billion, respectively.

(c)Goodwill deducted from capital includes goodwill associated with equity method investments in nonconsolidated financial institutions based on regulatory requirements. Refer to Principal investment risk on page 83 for additional information.

(d)Represents the allowance for credit losses eligible for inclusion in Tier 2 capital up to 1.25% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA.

(e)Represents an adjustment to qualifying allowance for credit losses for the excess of eligible credit reserves over expected credit losses up to 0.6% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA.

(f)Included an incremental $663 million allowance for credit losses on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules.

Capital rollforward

The following table presents the changes in Basel III CET1 capital, Tier 1 capital and Tier 2 capital for the nine months ended September 30, 2023.


Nine months ended September 30, (in millions)	2023
Standardized/Advanced CET1 capital at December 31, 2022	$	218,934
Net income applicable to common equity	39,130
Dividends declared on common stock	(8,991)
Net purchase of treasury stock	(6,641)
Changes in additional paid-in capital	855
Changes related to AOCI applicable to capital:
Unrealized gains/(losses) on investment securities	1,019
Translation adjustments, net of hedges(a)	(73)
Fair value hedges	(15)
Defined benefit pension and other postretirement employee benefit (“OPEB”) plans	(82)
Changes related to other CET1 capital adjustments(b)	(2,311)
Change in Standardized/Advanced CET1 capital	22,891
Standardized/Advanced CET1 capital at September 30, 2023	$	241,825
Standardized/Advanced Tier 1 capital at December 31, 2022	$	245,631
Change in CET1 capital(b)	22,891
Redemptions of noncumulative perpetual preferred stock	—
Other	57
Change in Standardized/Advanced Tier 1 capital	22,948
Standardized/Advanced Tier 1 capital at September 30, 2023	$	268,579
Standardized Tier 2 capital at December 31, 2022	$	32,138
Change in long-term debt and other instruments qualifying as Tier 2	(1,049)
Change in qualifying allowance for credit losses(b)	960
Other	231
Change in Standardized Tier 2 capital	142
Standardized Tier 2 capital at September 30, 2023	$	32,280
Standardized Total capital at September 30, 2023	$	300,859
Advanced Tier 2 capital at December 31, 2022	$	18,952
Change in long-term debt and other instruments qualifying as Tier 2	(1,049)
Change in qualifying allowance for credit losses(b)(c)	847
Other	231
Change in Advanced Tier 2 capital	29
Advanced Tier 2 capital at September 30, 2023	$	18,981
Advanced Total capital at September 30, 2023	$	287,560

(a)Includes foreign currency translation adjustments and the impact of related derivatives.

(b)Includes the impact of the CECL capital transition provisions and the cumulative effect of changes in accounting principles. Refer to Note 1 for additional information.

(c)Included an incremental $663 million allowance for credit losses on certain assets associated with First Republic to which the Standardized approach has been applied, as permitted by the transition provisions in the U.S. capital rules.

RWA rollforward

The following table presents changes in the components of RWA under Basel III Standardized and Advanced approaches for the nine months ended September 30, 2023. The amounts in the rollforward categories are estimates, based on the predominant driver of the change.


	Standardized						Advanced
Nine months ended September 30, 2023 (in millions)	Credit risk RWA(c)		Market risk RWA		Total RWA		Credit risk RWA(c)(d)		Market risk RWA		Operational risk RWA		Total RWA
December 31, 2022	$	1,568,536	$	85,002	$	1,653,538	$	1,078,076	$	85,432	$	446,265	$	1,609,773
Model & data changes(a)	(9,240)		(4,786)		(14,026)		(13,119)		(4,786)		—		(17,905)
Movement in portfolio levels(b)	62,585		(9,878)		52,707		93,553		(9,757)		(4,071)		79,725
Changes in RWA	53,345		(14,664)		38,681		80,434		(14,543)		(4,071)		61,820
September 30, 2023	$	1,621,881	$	70,338	$	1,692,219	$	1,158,510	$	70,889	$	442,194	$	1,671,593

(a)Model & data changes refer to material movements in levels of RWA as a result of revised methodologies and/or treatment per regulatory guidance (exclusive of rule changes).

(b)Movement in portfolio levels (inclusive of rule changes) refers to: for Credit risk RWA, changes in book size, impacts associated with the First Republic acquisition, including the benefit of the shared-loss agreements entered into with the FDIC, position roll-offs in legacy portfolios in Home Lending, changes in composition and credit quality, market movements, and deductions for excess eligible allowances for credit losses not eligible for inclusion in Tier 2 capital; for Market risk RWA, changes in position, market movements, and changes in the Firm’s regulatory multiplier from Regulatory VaR backtesting exceptions; and for Operational risk RWA, updates to cumulative losses and macroeconomic model inputs.

(c)As of September 30, 2023 and December 31, 2022, the Basel III Standardized Credit risk RWA included wholesale and retail off balance-sheet RWA of $217.9 billion and $210.1 billion, respectively; and the Basel III Advanced Credit risk RWA included wholesale and retail off balance-sheet RWA of $193.4 billion and $180.8 billion, respectively.

(d)As of September 30, 2023, Credit risk RWA reflected approximately $53.1 billion of RWA calculated under the Standardized approach for certain assets associated with First Republic as permitted by the transition provisions in the U.S. capital rules.

Refer to the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for further information on Credit risk RWA, Market risk RWA and Operational risk RWA.

Supplementary leverage ratio

Refer to Supplementary Leverage Ratio on page 93 of JPMorgan Chase’s 2022 Form 10-K for additional information.

The following table presents the components of the Firm’s SLR.


Three months ended (in millions, except ratio)	September 30, 2023			December 31, 2022
Tier 1 capital	$	268,579		$	245,631
Total average assets	3,839,777			3,755,271
Less: Regulatory capital adjustments(a)	54,136			51,398
Total adjusted average assets(b)	3,785,641			3,703,873
Add: Off-balance sheet exposures(c)	714,612			663,219
Total leverage exposure	$	4,500,253		$	4,367,092
SLR	6.0		%	5.6		%

(a)For purposes of calculating the SLR, includes quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, other intangible assets and adjustments for the CECL capital transition provisions.

(b)Adjusted average assets used for the calculation of Tier 1 leverage ratio.

(c)Off-balance sheet exposures are calculated as the average of the three month-end spot balances on applicable regulatory exposures during the reporting quarter. Refer to the Firm’s Pillar 3 Regulatory Capital Disclosures reports for additional information.

Line of business equity

Each business segment is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements.

Refer to line of business equity on page 93 of JPMorgan Chase’s 2022 Form 10-K for additional information on capital allocation.

The following table presents the capital allocated to each business segment.


Line of business equity (Allocated capital)
(in billions)	September 30, 2023(a)		December 31, 2022
Consumer & Community Banking	$	55.5	$	50.0
Corporate & Investment Bank	108.0		103.0
Commercial Banking	30.0		25.0
Asset & Wealth Management	17.0		17.0
Corporate	79.5		69.9
Total common stockholders’ equity	$	290.0	$	264.9

(a)Includes the impact of the First Republic acquisition.

Capital actions

Common stock dividends

On September 19, 2023, the Firm announced that its Board of Directors declared a quarterly common stock dividend, which increased to $1.05 per share from $1.00 per share, effective with the dividend payable on October 31, 2023. The Firm's dividends are subject to approval by the Board of Directors on a quarterly basis.

Common stock

The Firm is authorized to purchase up to $30 billion under its common share repurchase program previously approved by the Board of Directors.

The following table sets forth the Firm’s repurchases of common stock for the three and nine months ended September 30, 2023 and 2022.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022(a)		2023		2022(a)
Total number of shares of common stock repurchased	15.6		—		54.3		23.1
Aggregate purchase price of common stock repurchases	$	2,364	$	—	$	7,597	$	3,122

(a)In the third quarter of 2022, the Firm had temporarily suspended share repurchases.

Refer to Capital actions on page 94 of JPMorgan Chase’s 2022 Form 10-K for additional information.

Refer to Part II, Item 2: Unregistered Sales of Equity Securities and Use of Proceeds and Part II, Item 5: Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on pages 209-210 of this Form 10-Q and page 34 of JPMorgan Chase’s 2022 Form 10-K, respectively, for additional information regarding repurchases of the Firm’s equity securities.

Preferred stock

Preferred stock dividends declared were $386 million and $432 million, and $1.1 billion and $1.2 billion, for the three and nine months ended September 30, 2023 and 2022, respectively.

Refer to Note 19 of this Form 10-Q and Note 21 of JPMorgan Chase’s 2022 Form 10-K for additional information on the Firm’s preferred stock, including the issuance and redemption of preferred stock.

Subordinated Debt

Refer to Long-term funding and issuance on page 60 and Note 18 for additional information on the Firm’s subordinated debt.

Capital planning and stress testing

Comprehensive Capital Analysis and Review

On June 30, 2023, the Firm announced that it had completed the Federal Reserve's 2023 Comprehensive Capital Analysis and Review (“CCAR”) stress test process.

On July 27, 2023, the Federal Reserve affirmed the Firm's 2023 SCB requirement of 2.9% (down from 4.0%), and the

Firm's Standardized CET1 capital ratio requirement, including regulatory buffers, of 11.4% (down from 12.5%). The SCB requirement became effective on October 1, 2023, and will remain in effect until September 30, 2024.

Refer to Capital planning and stress testing on pages 86-87 of JPMorgan Chase’s 2022 Form 10-K for additional information on CCAR.

Other capital requirements

Total Loss-Absorbing Capacity

The Federal Reserve’s TLAC rule requires the U.S. GSIB top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible LTD.

The following table presents the eligible external TLAC and eligible LTD amounts, as well as a representation of these amounts as a percentage of the Firm’s total RWA and total leverage exposure applying the impact of the CECL capital transition provisions as of September 30, 2023 and December 31, 2022.


	September 30, 2023						December 31, 2022
(in billions, except ratio)	External TLAC			LTD			External TLAC			LTD
Total eligible amount	$	496.2		$	216.4		$	486.0		$	228.5
% of RWA	29.3		%	12.8		%	29.4		%	13.8		%
Regulatory requirements	23.0			10.0			22.5			9.5
Surplus/(shortfall)	$	107.0		$	47.2		$	114.0		$	71.4
% of total leverage exposure	11.0		%	4.8		%	11.1		%	5.2		%
Regulatory requirements	9.5			4.5			9.5			4.5
Surplus/(shortfall)	$	68.7		$	13.9		$	71.2		$	32.0

Effective January 1, 2023, the Firm's regulatory requirements for TLAC to RWA and LTD to RWA ratios increased by 50 bps to 23.0% and 10.0%, respectively, due to the increase in the Firm’s GSIB requirements. Refer to Risk-based Capital Regulatory Requirements on pages 89-90 of JPMorgan Chase’s 2022 Form 10-K for further information on the GSIB surcharge.

Refer to Liquidity Risk Management on pages 54-61 for further information on long-term debt issued by the Parent Company.

Refer to Part I, Item 1A: Risk Factors on pages 9-32 of JPMorgan Chase’s 2022 Form 10-K for information on the financial consequences to holders of the Firm’s debt and equity securities in a resolution scenario.

Refer to other capital requirements on page 95 of JPMorgan Chase’s 2022 Form 10-K for additional information on TLAC.

U.S. broker-dealer regulatory capital

J.P. Morgan Securities

JPMorgan Chase’s principal U.S. broker-dealer subsidiary is J.P. Morgan Securities. J.P. Morgan Securities is subject to the regulatory capital requirements of Rule 15c3-1 under the Securities Exchange Act of 1934 (the “Net Capital Rule”). J.P. Morgan Securities is also registered as a futures commission merchant and is subject to regulatory capital requirements, including those imposed by the SEC, the Commodity Futures Trading Commission (“CFTC”), the Financial Industry Regulatory Authority (“FINRA”) and the National Futures Association (“NFA”).

The following table presents J.P. Morgan Securities’ net capital:


September 30, 2023
(in millions)	Actual		Minimum
Net Capital	$	25,406	$	5,229

Non-U.S. subsidiary regulatory capital

J.P. Morgan Securities plc

J.P. Morgan Securities plc is a wholly-owned subsidiary of JPMorgan Chase Bank, N.A. and has authority to engage in banking, investment banking and broker-dealer activities. J.P. Morgan Securities plc is jointly regulated in the U.K. by the Prudential Regulation Authority (“PRA”) and the Financial Conduct Authority (“FCA”). J.P. Morgan Securities plc is subject to the European Union (“EU”) Capital Requirements Regulation (“CRR”), as adopted in the U.K., and the PRA capital rules, each of which have implemented Basel III and thereby subject J.P. Morgan Securities plc to its requirements.

The Bank of England requires that U.K. banks, including U.K. regulated subsidiaries of overseas groups, maintain minimum requirements for own funds and eligible liabilities (“MREL”). As of September 30, 2023, J.P. Morgan Securities plc was compliant with its MREL requirements.

Effective January 1, 2023, J.P. Morgan Securities plc was required to meet the minimum Tier 1 leverage ratio requirement established by the PRA of 3.25%, plus regulatory buffers.

The following table presents J.P. Morgan Securities plc’s risk-based and leverage-based capital metrics:


September 30, 2023				Regulatory Minimum ratios(a)
(in millions, except ratios)	Estimated
Total capital	$	53,817
CET1 capital ratio	16.7		%	4.5	%
Tier 1 capital ratio	21.9			6.0
Total capital ratio	28.2			8.0

Tier 1 leverage ratio	7.2			3.3		(b)

(a)Represents minimum Pillar 1 requirements specified by the PRA. J.P. Morgan Securities plc's capital ratios as of September 30, 2023 exceeded the minimum requirements, including the additional capital requirements specified by the PRA.

(b)At least 75% of the Tier 1 leverage ratio minimum must be met with CET1 capital.

J.P. Morgan SE

JPMSE is a wholly-owned subsidiary of JPMorgan Chase Bank, N.A. and has authority to engage in banking, investment banking and markets activities. JPMSE is regulated by the European Central Bank as well as the local regulators in each of the countries in which it operates, and it is subject to EU capital requirements under Basel III.

JPMSE is required by the EU Single Resolution Board to maintain MREL. As of September 30, 2023, JPMSE was compliant with its MREL requirements.

The following table presents JPMSE’s risk-based and leverage-based capital metrics:


September 30, 2023				Regulatory Minimum ratios(a)
(in millions, except ratios)	Estimated
Total capital	$	42,352
CET1 capital ratio	19.2		%	4.5	%
Tier 1 capital ratio	19.2			6.0
Total capital ratio	34.5			8.0
Tier 1 leverage ratio	5.7			3.0

(a)Represents minimum Pillar 1 requirements specified by the EU CRR. J.P. Morgan SE’s capital and leverage ratios as of September 30, 2023 exceeded the minimum requirements, including the additional capital requirements specified by EU regulators.

Refer to U.S. broker-dealer and Non-U.S. subsidiary regulatory capital on page 96 of JPMorgan Chase’s 2022 Form 10-K for further information.

LIQUIDITY RISK MANAGEMENT

Liquidity risk is the risk that the Firm will be unable to meet its contractual and contingent financial obligations as they arise or that it does not have the appropriate amount, composition and tenor of funding and liquidity to support its assets and liabilities. Refer to pages 97-104 of JPMorgan Chase’s 2022 Form 10-K and the Firm’s U.S. LCR Disclosure reports, which are available on the Firm’s website, for a further discussion of the Firm’s liquidity risk.

LCR and HQLA

The LCR rule requires that the Firm and JPMorgan Chase Bank, N.A. maintain an amount of eligible HQLA that is sufficient to meet their respective estimated total net cash outflows over a prospective 30 calendar-day period of significant stress.

Under the LCR rule, the amount of eligible HQLA held by JPMorgan Chase Bank, N.A. that is in excess of its stand-alone 100% minimum LCR requirement, and that is not transferable to non-bank affiliates, must be excluded from the Firm’s reported eligible HQLA. The LCR for both the Firm and JPMorgan Chase Bank, N.A. is required to be a minimum of 100%.

The following table summarizes the Firm and JPMorgan Chase Bank, N.A.’s average LCR for the three months ended September 30, 2023, June 30, 2023 and September 30, 2022 based on the Firm’s interpretation of the LCR framework.


	Three months ended
Average amount (in millions)	September 30, 2023			June 30, 2023			September 30, 2022
JPMorgan Chase & Co.:
HQLA
Eligible cash(a)	$	402,663		$	440,294		$	589,158
Eligible securities(b)(c)	378,702			327,837			126,913
Total HQLA(d)(e)	$	781,365		$	768,131		$	716,071
Net cash outflows	$	696,668		$	683,446		$	635,072
LCR	112		%	112		%	113		%
Net excess eligible HQLA(d)	$	84,697		$	84,685		$	80,999
JPMorgan Chase Bank N.A.:
LCR	123		%	129		%	165		%
Net excess eligible HQLA	$	167,096		$	211,233		$	450,260

(a)Represents cash on deposit at central banks, primarily the Federal Reserve Banks.

(b)Predominantly U.S. Treasuries, U.S. GSE and government agency MBS, and sovereign bonds net of applicable haircuts under the LCR rule.

(c)Eligible HQLA securities may be reported in securities borrowed or purchased under resale agreements, trading assets, or investment securities on the Firm’s Consolidated balance sheets.

(d)Excludes average excess eligible HQLA at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates.

(e)End-of-period HQLA balances were approximately $795.6 billion, $791.5 billion, and $709.0 billion for September 30, 2023, June 30, 2023 and September 30, 2022, respectively.

JPMorgan Chase Bank, N.A.'s average LCR decreased during the three months ended September 30, 2023, compared with the three months ended June 30, 2023, reflecting the full quarter impact associated with First Republic in the third quarter as the First Republic acquisition occurred on May 1, 2023. JPMorgan Chase Bank, N.A.’s HQLA was further impacted by a reduction in cash primarily driven by a decline in average deposits and higher average loans, predominantly offset by CIB market activities.

JPMorgan Chase Bank, N.A.’s average LCR for the three months ended September 30, 2023 decreased when compared with the same period in the prior year, reflecting a decrease in JPMorgan Chase Bank, N.A.’s HQLA as a result of a reduction in cash from a decline in average deposits and loan growth, as well as the impact of First Republic and lower market values of HQLA-eligible investment securities.

Refer to Note 10 and Note 28 for additional information on the Firm's investment securities portfolio and the First Republic acquisition.

Actions by the Federal Reserve have impacted depositor behavior, resulting in reductions to system-wide deposits, including those held by the Firm. Each of the Firm and JPMorgan Chase Bank, N.A.'s average LCR may fluctuate from period to period due to changes in their respective eligible HQLA and estimated net cash outflows as a result of ongoing business activity and from the continued impacts of Federal Reserve actions as well as other factors.

Refer to page 98 of JPMorgan Chase’s 2022 Form 10-K and the Firm’s U.S. LCR Disclosure reports for additional information on HQLA and net cash outflows.

Internal stress testing

The Firm conducts internal liquidity stress testing that is intended to ensure that the Firm and its material legal entities have sufficient liquidity under a variety of adverse scenarios, including scenarios analyzed as part of the Firm’s resolution and recovery planning. Internal Stress scenarios are produced on a regular basis, and other stress tests are performed in response to specific market events or concerns. Results of stress tests are considered in the formulation of the Firm’s funding plan and assessment of its liquidity position.

The Firm maintains liquidity at the Parent Company, the Intermediate Holding Company (“IHC”), and operating subsidiaries at levels sufficient to comply with liquidity risk tolerances and minimum liquidity requirements, and to manage through periods of stress when access to normal funding sources may be disrupted.

Other liquidity sources

In addition to the assets reported in the Firm’s eligible HQLA discussed above, the Firm had unencumbered marketable securities, such as equity and debt securities, that the Firm believes would be available to raise liquidity. This includes excess eligible HQLA securities at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. The fair value of these securities was approximately $590 billion and $694 billion as of September 30, 2023 and December 31, 2022, respectively, although the amount of liquidity that could be raised at any particular time would be dependent on prevailing market conditions. The decrease compared to December 31, 2022, was driven by a reduction in excess eligible HQLA securities at JPMorgan Chase Bank, N.A., partially offset by an increase in CIB trading assets.

The Firm also had available borrowing capacity at the Federal Home Loan Banks (“FHLBs”) and the discount window at the Federal Reserve Banks as a result of collateral pledged by the Firm to such banks of approximately $347 billion and $323 billion as of September 30, 2023 and December 31, 2022, respectively. This borrowing capacity excludes the benefit of cash and securities reported in the Firm’s eligible HQLA or other unencumbered securities that are currently pledged at the Federal Reserve Banks discount window and other central banks. Available borrowing capacity increased from December 31, 2022 primarily due to increased commercial loans and credit card receivables pledged at the Federal Reserve Banks. Although available, the Firm does not view this borrowing capacity at the Federal Reserve Banks discount window and the other central banks as a primary source of liquidity.

NSFR

The net stable funding ratio (“NSFR”) is a liquidity requirement for large banking organizations that is intended to measure the adequacy of “available” stable funding that is sufficient to meet their “required” amounts of stable funding over a one-year horizon.

As of September 30, 2023, both the Firm and JPMorgan Chase Bank, N.A. were compliant with the 100% minimum NSFR requirement, based on the Firm's interpretation of the final rule. Refer to the Firm's U.S. NSFR Disclosure report covering June 30, 2023 and March 31, 2023 on the Firm’s website for additional information.

Funding

Sources of funds

Management believes that the Firm’s unsecured and secured funding capacity is sufficient to meet its on- and off-balance sheet obligations, which includes both short- and long-term cash requirements.

The Firm funds its global balance sheet through diverse sources of funding including stable deposits, secured and unsecured funding in the capital markets and stockholders’ equity. Deposits are the primary funding source for JPMorgan Chase Bank, N.A. Additionally, JPMorgan Chase Bank, N.A. may access funding through short- or long-term secured borrowings, through the issuance of unsecured long-term debt, or from borrowings from the IHC. The

Firm’s non-bank subsidiaries are primarily funded from long-term unsecured borrowings and short-term secured borrowings which are primarily securities loaned or sold under repurchase agreements. Excess funding is invested by Treasury and CIO in the Firm’s investment securities portfolio or deployed in cash or other short-term liquid investments based on their interest rate and liquidity risk characteristics.

Refer to Note 24 for additional information on off-balance sheet obligations.

Deposits

The table below summarizes, by LOB and Corporate, the period-end deposit balances as of September 30, 2023 and December 31, 2022, and the average deposit balances for the three and nine months ended September 30, 2023 and 2022, respectively.


	September 30, 2023		December 31, 2022		Three months ended September 30,				Nine months ended September 30,
					Average				Average
(in millions)					2023		2022		2023		2022
Consumer & Community Banking	$	1,136,884	$	1,131,611	$	1,143,539	$	1,174,227	$	1,138,050	$	1,169,474
Corporate & Investment Bank	751,477		689,893		726,617		721,690		716,439		750,538
Commercial Banking	255,650		271,342		262,148		281,276		267,748		299,337
Asset & Wealth Management	215,152		233,130		201,975		253,026		212,652		269,754
Corporate	20,363		14,203		21,462		15,151		19,785		8,385
Total Firm	$	2,379,526	$	2,340,179	$	2,355,741	$	2,445,370	$	2,354,674	$	2,497,488

The Firm believes that deposits provide a stable source of funding and reduce the Firm’s reliance on the wholesale funding markets. A significant portion of the Firm’s deposits are consumer deposits and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are generally considered to be stable sources of liquidity because they are generated from customers that maintain operating service relationships with the Firm.

The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances. However, during periods of market disruption those trends could be affected.

Average deposits were lower for the three months ended September 30, 2023 compared to the three months ended September 30, 2022. The net decrease reflected:

• continued migration in AWM into higher-yielding investments as a result of the rising interest rate environment, partially offset by growth from new and existing customers resulting from new offerings,

• a net decline in CCB reflecting higher customer spending in existing accounts, largely offset by the impact of First Republic,

• continued deposit attrition in CB as clients seek higher yielding alternatives, partially offset by the retention of inflows associated with disruptions in the market in the first quarter of 2023,

• an increase in Corporate related to the Firm's international consumer initiatives, and

• an increase in CIB due to net issuances of structured notes as a result of client demand, predominantly offset by continued deposit attrition, including actions to reduce certain deposits.

Average deposits were lower for the nine months ended September 30, 2023 compared to the nine months ended September 30, 2022. The net decrease reflected:

• continued deposit attrition in CIB, including actions to reduce certain deposits, largely offset by net issuances of structured notes as a result of client demand,

• a net decline in CCB reflecting higher customer spending in existing accounts, largely offset by the impact of First Republic, and

• an increase in Corporate related to the Firm's international consumer initiatives.

Period-end deposits increased when compared to December 31, 2022. The net increase reflected:

• net issuances of structured notes in CIB as a result of client demand, as well as deposit inflows related to client-driven activities in Securities Services and Payments,

• an increase in Corporate related to the Firm's international consumer initiatives,

• a net increase in CCB due to $64 billion of deposits associated with First Republic, predominantly offset by a net reduction reflecting higher customer spending in existing accounts,

Refer to the Firm’s Consolidated Balance Sheets Analysis and the Business Segment Results on pages 16-18 and pages 21-46, respectively, for further information on deposit and liability balance trends. Refer to Note 3 for further information on structured notes.

Certain deposits are covered by insurance protection that provides additional funding stability and results in a benefit to the LCR. Deposit insurance protection may be available to depositors in the countries in which the deposits are placed. For example, the FDIC provides deposit insurance protection for deposits placed in a U.S. depository institution. At September 30, 2023 and December 31, 2022(a), the Firmwide estimated uninsured deposits were $1,332.4 billion and $1,353.1 billion, respectively, primarily reflecting wholesale operating deposits.

Total uninsured deposits include time deposits. The table below presents an estimate of uninsured U.S. and non-U.S. time deposits, and their remaining maturities. The Firm’s estimates of its uninsured U.S. time deposits are based on data that the Firm calculates periodically under applicable FDIC regulations. For purposes of this presentation, all non-U.S. time deposits are deemed to be uninsured.


(in millions)	September 30, 2023				December 31, 2022
	U.S.		Non-U.S.		U.S.			Non-U.S.
Three months or less	$	47,770	$	76,943	$	25,910	(a)	$	68,765
Over three months but within 6 months	23,581		10,137		8,670			3,658
Over six months but within 12 months	9,127		4,728		7,035			2,850
Over 12 months	905		2,445		787			2,634
Total	$	81,383	$	94,253	$	42,402		$	77,907

(a)Prior-period amounts for the Firmwide estimated uninsured deposits, including uninsured U.S. time deposits, have been revised to conform with the current presentation, reflecting refinements to the calculation.

Refer to pages 100-101 of JPMorgan Chase's 2022 Form 10-K for additional disclosure on the Firm's deposit balances.

The table below shows the loan and deposit balances, the loans-to-deposits ratios, and deposits as a percentage of total liabilities, as of September 30, 2023 and December 31, 2022.


(in billions except ratios)	September 30, 2023			December 31, 2022
Deposits	$	2,379.5		$	2,340.2
Deposits as a % of total liabilities	66		%	69		%
Loans	$	1,310.1		$	1,135.6
Loans-to-deposits ratio	55		%	49		%

The following tables provide a summary of the average balances and average interest rates of JPMorgan Chase’s deposits for the three and nine months ended September 30, 2023 and 2022.


(Unaudited) (in millions)	Average balances
	Three months ended				Nine months ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
U.S. offices
Noninterest-bearing	$	636,730	$	689,709	$	636,079	$	702,694
Interest-bearing
Demand(a)	274,951		312,420		280,635		334,687
Savings(b)	855,846		961,130		876,671		984,340
Time	158,112		67,369		132,155		57,779
Total interest-bearing deposits	1,288,909		1,340,919		1,289,461		1,376,806
Total deposits in U.S. offices	1,925,639		2,030,628		1,925,540		2,079,500
Non-U.S. offices
Noninterest-bearing	24,253		26,809		25,007		28,122
Interest-bearing
Demand	317,003		320,125		319,339		327,566
Time	88,846		67,808		84,788		62,300
Total interest-bearing deposits	405,849		387,933		404,127		389,866
Total deposits in non-U.S. offices	430,102		414,742		429,134		417,988
Total deposits	$	2,355,741	$	2,445,370	$	2,354,674	$	2,497,488


(Unaudited)	Average interest rates
	Three months ended				Nine months ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
U.S. offices
Noninterest-bearing	NA		NA		NA		NA
Interest-bearing
Demand(a)	3.85	%	1.23	%	3.34	%	0.52	%
Savings(b)	1.19		0.36		1.04		0.17
Time	4.68		2.38		4.59		1.31
Total interest-bearing deposits	2.18		0.63		1.90		0.31
Total deposits in U.S. offices	1.47		0.44		1.27		0.20
Non-U.S. offices
Noninterest-bearing	NA		NA		NA		NA
Interest-bearing
Demand	2.90		0.71		2.55		0.25
Time	6.23		2.18		5.64		1.04
Total interest-bearing deposits	3.61		0.95		3.20		0.37
Total deposits in non-U.S. offices	3.41		0.23		3.01		0.35
Total deposits	1.83	%	0.52	%	1.59	%	0.23	%

(a)Includes Negotiable Order of Withdrawal (“NOW”) accounts, and certain trust accounts.

(b)Includes Money Market Deposit Accounts (“MMDAs”).

Refer to Note 16 for additional information on deposits.

The following table summarizes short-term and long-term funding, excluding deposits, as of September 30, 2023 and December 31, 2022, and average balances for the three and nine months ended September 30, 2023 and 2022, respectively. Refer to the Consolidated Balance Sheets Analysis on pages 16-18 and Note 11 for additional information.

Sources of funds (excluding deposits)


	September 30, 2023			December 31, 2022			Three months ended September 30,					Nine months ended September 30,
						Average						Average
(in millions)						2023			2022				2023			2022
Commercial paper	$	13,760		$	12,557		$	13,004		$	16,926			$	12,292		$	17,039
Other borrowed funds	8,860			8,418			9,250			12,351				9,701			12,821
Federal funds purchased	1,711			1,684			1,799			1,685				1,753			1,541
Total short-term unsecured funding	$	24,331		$	22,659		$	24,053		$	30,962			$	23,746		$	31,401
Securities sold under agreements to repurchase(a)	$	260,383		$	198,382		$	246,761		$	232,581			$	250,447		$	234,383
Securities loaned(a)	6,656			2,547			5,545			5,316				4,517			5,095
Other borrowed funds	22,850		(g)	23,052			22,110			23,994				22,071			26,088
Obligations of Firm-administered multi-seller conduits(b)	19,817			9,236			18,353			7,602				13,890			6,954
Total short-term secured funding	$	309,706		$	233,217		$	292,769		$	269,493			$	290,925		$	272,520
Senior notes	$	175,384		$	188,025		$	178,395		$	193,730			$	181,336		$	190,447
Subordinated debt	19,454			21,803			19,695			19,510				20,681			19,628
Structured notes(c)	76,552			70,839			77,182			67,901				75,347			68,354
Total long-term unsecured funding	$	271,390		$	280,667		$	275,272		$	281,141			$	277,364		$	278,429
Credit card securitization(b)	$	2,997		$	1,999		$	1,347		$	1,781			$	1,175		$	1,933

FHLB advances	37,882		(g)	11,093			36,040			11,100				25,275			11,105
Purchase Money Note(d)	48,936			NA			48,901			NA				27,394			NA
Other long-term secured funding(e)	4,585			4,105			4,627			3,729				4,485			3,814
Total long-term secured funding	$	94,400		$	17,197		$	90,915		$	16,610			$	58,329		$	16,852
Preferred stock(f)	$	27,404		$	27,404		$	27,404		$	32,838			$	27,404		$	33,065
Common stockholders’ equity(f)	$	289,967		$	264,928		$	284,798		$	252,944			$	278,010		$	251,147

(a)Primarily consists of short-term securities loaned or sold under agreements to repurchase.

(b)Included in beneficial interests issued by consolidated variable interest entities on the Firm’s Consolidated balance sheets.

(c)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.

(d)Reflects the Purchase Money Note associated with the First Republic acquisition. Refer to Note 28 for additional information.

(e)Includes long-term structured notes which are secured.

(f)Refer to Capital Risk Management on pages 48-53 and Consolidated statements of changes in stockholders’ equity on page 99 of this Form 10-Q, and Note 21 and Note 22 of JPMorgan Chase’s 2022 Form 10-K for additional information on preferred stock and common stockholders’ equity.

(g)As of September 30, 2023, included short-term and long-term FHLB advances of $2.3 billion and $23.9 billion, respectively, associated with First Republic. Refer to Note 28 for additional information.

Short-term funding

The Firm’s sources of short-term secured funding primarily consist of securities loaned or sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and U.S. GSE and government agency MBS. Securities sold under agreements to repurchase increased at September 30, 2023, compared with December 31, 2022, due to higher secured financing of trading assets and the impact of a lower level of netting on client-driven market-making activities in Markets.

The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to investment and financing activities of clients, the Firm’s demand for financing, the ongoing management of the mix of the Firm’s liabilities, including its secured and unsecured financing (for both the investment securities and market-making portfolios), and other market and portfolio factors.

The Firm’s sources of short-term unsecured funding primarily consist of issuances of wholesale commercial paper and other borrowed funds.

The decrease in commercial paper for the average three and nine months ended September 30, 2023 compared to the prior year periods, and the increase in commercial paper at September 30, 2023, from December 31, 2022, were due to changes in net issuance levels primarily for short-term liquidity management.

The decrease in average unsecured other borrowed funds for the three and nine months ended September 30, 2023 compared to the prior year periods was primarily due to a lower level of overdrafts.

Long-term funding and issuance

Long-term funding provides an additional source of stable funding and liquidity for the Firm. The Firm’s long-term funding plan is driven primarily by expected client activity, liquidity considerations and regulatory requirements, including TLAC. Long-term funding objectives include maintaining diversification, maximizing market access and optimizing funding costs. The Firm evaluates various funding markets, tenors and currencies in creating its optimal long-term funding plan.

The significant majority of the Firm’s long-term unsecured funding is issued by the Parent Company to provide flexibility in support of the funding needs of both bank and non-bank subsidiaries. The Parent Company advances substantially all net funding proceeds to its subsidiary, the IHC. The IHC does not issue debt to external counterparties. The following table summarizes long-term unsecured issuance and maturities or redemptions for the three and nine months ended September 30, 2023 and 2022. Refer to Note 18 of this Form 10-Q and Liquidity Risk Management on pages 97-104 of JPMorgan Chase’s 2022 Form 10-K for additional information on the IHC and long-term debt.


Long-term unsecured funding
	Three months ended September 30,				Nine months ended September 30,				Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022		2023		2022		2023		2022
(Notional in millions)	Parent Company								Subsidiaries
Issuance
Senior notes issued in the U.S. market	$	4,500	$	8,500	$	7,000	$	29,600	$	—	$	—	$	—	$	—
Senior notes issued in non-U.S. markets	—		—		—		2,752		—		—		—		—
Total senior notes	4,500		8,500		7,000		32,352		—		—		—		—
Subordinated debt	—		3,500		—		3,500		—		—		—		—
Structured notes(a)	755		416		2,199		2,341		10,028		9,733		25,693		29,395
Total long-term unsecured funding – issuance	$	5,255	$	12,416	$	9,199	$	38,193	$	10,028	$	9,733	$	25,693	$	29,395
Maturities/redemptions
Senior notes	$	4,535	$	4,495	$	17,968	$	13,188	$	—	$	—	$	67	$	64
Subordinated debt	41		—		2,068		—		—		—		—		—
Structured notes	499		72		1,270		1,464		7,282		6,108		21,263		21,178
Total long-term unsecured funding – maturities/redemptions	$	5,075	$	4,567	$	21,306	$	14,652	$	7,282	$	6,108	$	21,330	$	21,242

(a)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.

The Firm can also raise secured long-term funding through securitization of consumer credit card loans and FHLB advances. The following table summarizes the securitization issuance, the FHLB advances, and their respective maturities or redemptions, as applicable for the three and nine months ended September 30, 2023 and 2022, respectively. Additionally, the table includes the FHLB advances and Purchase Money Note associated with First Republic. Refer to Note 28 for additional information.


Long-term secured funding
	Three months ended September 30,									Nine months ended September 30,
	Issuance				Maturities/Redemptions					Issuance					Maturities/Redemptions
(in millions)	2023		2022		2023			2022		2023			2022		2023			2022
Credit card securitization	$	1,998	$	997	$	—		$	750	$	1,998		$	997	$	1,000		$	1,400

FHLB advances	6,000		—		4,230		(c)	3		31,775		(c)	—		4,834		(c)	9
Purchase Money Note(a)	—		NA		—			NA		50,000			NA		—			NA
Other long-term secured funding(b)	177		73		164			49		919			357		276			141
Total long-term secured funding	$	8,175	$	1,070	$	4,394		$	802	$	84,692		$	1,354	$	6,110		$	1,550

(a)Reflects the Purchase Money Note associated with the First Republic acquisition. Refer to Note 28 for additional information.

(b)Includes long-term structured notes that are secured.

(c)As of September 30, 2023, included FHLB advances associated with First Republic. Refer to Note 28 for additional information.

The Firm’s wholesale businesses also securitize loans for client-driven transactions; those client-driven loan securitizations are not considered to be a source of funding for the Firm and are not included in the table above. Refer to Note 14 of JPMorgan Chase’s 2022 Form 10-K for a further description of client-driven loan securitizations.

Credit ratings

The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm’s access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors, which the Firm believes are incorporated in its liquidity risk

and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.

Additionally, the Firm’s funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to Note 5 and Note 14 for additional information.

The credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries as of September 30, 2023, were as follows:

JPMorgan Chase & Co.

JPMorgan Chase Bank, N.A.

J.P. Morgan Securities LLC
J.P. Morgan Securities plc
J.P. Morgan SE

September 30, 2023

Long-term issuer

Short-term issuer

Outlook

Long-term issuer

Short-term issuer

Outlook

Long-term issuer

Short-term issuer

Outlook

Moody’s Investors Service

P-1

Stable

Aa2

P-1

Stable

Aa3

P-1

Stable

Standard & Poor’s (a)

A-

A-2

Stable

A+

A-1

Stable

A+

A-1

Stable

Fitch Ratings

AA-

F1+

Stable

F1+

Stable

F1+

Stable

(a) On March 31, 2023, Standard & Poor's affirmed the credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries, and revised the outlook from positive to stable.

Refer to page 104 of JPMorgan Chase’s 2022 Form 10-K for a discussion of the factors that could affect the credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries.

CREDIT AND INVESTMENT RISK MANAGEMENT

Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk,

wholesale credit risk, and investment portfolio risk. Refer to Consumer Credit Portfolio, Wholesale Credit Portfolio and

Allowance for Credit Losses on pages 65-82 for a further discussion of Credit Risk.

Refer to page 83 for a further discussion of Investment Portfolio Risk. Refer to Credit and Investment Risk Management on pages 106-130 of JPMorgan Chase’s 2022 Form 10-K for a further discussion of the Firm’s Credit and Investment Risk Management framework.

CREDIT PORTFOLIO

Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer.

In the following tables, total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes 12, 24 and 5 for additional information on the Firm’s loans, lending-related commitments and derivative receivables.

Refer to Note 10 for information regarding the credit risk inherent in the Firm’s investment securities portfolio; and refer to Note 11 for information regarding the credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages 65-69 and Note 12 for further discussions of the consumer credit environment and consumer loans. Refer to Wholesale Credit Portfolio on pages 70-79 and Note 12 for further discussions of the wholesale credit environment and wholesale loans.

On January 1, 2023, the Firm adopted changes to the TDR accounting guidance, which eliminated the accounting and disclosure requirements for TDRs including the requirement to assess whether a modification is reasonably expected or involves a concession. The new guidance requires disclosure for loan modifications to borrowers experiencing financial difficulty consisting of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. The Firm has defined these types of modifications as financial difficulty modifications ("FDMs"). As a result of the elimination of the requirement to assess whether a modification is reasonably expected or involves a concession, the population of loans considered FDMs differs from the population previously considered TDRs. Refer to Note 1 and Note 12 for further information.


Total credit portfolio
	Credit exposure					Nonperforming(d)
(in millions)	Sep 30, 2023			Dec 31, 2022		Sep 30, 2023		Dec 31, 2022
Loans retained	$	1,265,941		$	1,089,598	$	6,673	$	5,837
Loans held-for-sale	5,310			3,970		97		54
Loans at fair value	38,808			42,079		750		829
Total loans	1,310,059			1,135,647		7,520		6,720
Derivative receivables	67,070			70,880		293		296
Receivables from customers(a)	43,376			49,257		—		—
Total credit-related assets	1,420,505			1,255,784		7,813		7,016
Assets acquired in loan satisfactions
Real estate owned	NA			NA		280		203
Other	NA			NA		38		28
Total assets acquired in loan satisfactions	NA			NA		318		231
Lending-related commitments	1,478,784			1,326,782		387		455
Total credit portfolio	$	2,899,289	(c)	$	2,582,566	$	8,518	$	7,702
Credit derivatives and credit-related notes used in credit portfolio management activities(b)	$	(32,199)		$	(19,330)	$	—	$	—
Liquid securities and other cash collateral held against derivatives	(27,832)			(23,014)		NA		NA

(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.

(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage credit exposures.

(c)Includes credit exposure associated with First Republic consisting of $103.3 billion in the Consumer credit portfolio and $95.2 billion in the Wholesale credit portfolio.

(d)At September 30, 2023 and December 31, 2022, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $188 million and $302 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.

The following table provides information on Firmwide nonaccrual loans to total loans.


(in millions, except ratios)	September 30, 2023			December 31, 2022

Total nonaccrual loans	$	7,520		$	6,720
Total loans	1,310,059			1,135,647
Firmwide nonaccrual loans to total loans outstanding	0.57		%	0.59		%

The following table provides information about the Firm’s net charge-offs and recoveries.


(in millions, except ratios)	Three months ended September 30,						Nine months ended September 30,
	2023			2022			2023			2022
Net charge-offs	$	1,497		$	727		$	4,045		$	1,966
Average retained loans	1,259,845			1,059,962			1,179,419			1,033,586
Net charge-off rates	0.47		%	0.27		%	0.46		%	0.25		%

CONSUMER CREDIT PORTFOLIO

The Firm’s retained consumer portfolio consists primarily of loans and lending-related commitments for residential real estate, credit card, scored auto and business banking. The consumer credit portfolio also includes loans and lending-related commitments associated with First Republic, primarily in residential real estate. The Firm’s focus is on serving primarily the prime segment of the consumer credit market. Refer to Note 12 of this Form 10-Q; and Consumer Credit Portfolio on pages 110-115 and Note 12 of JPMorgan Chase's 2022 Form 10-K for further information on consumer loans, as well as the Firm’s nonaccrual and charge-off accounting policies. Refer to Note 24 of this Form 10-Q and Note 28 of JPMorgan Chase's 2022 Form 10-K for further information on lending-related commitments.

The following tables present consumer credit-related information with respect to the scored credit portfolios held in CCB, AWM, CIB and Corporate.


Consumer credit portfolio
(in millions)	Credit exposure					Nonaccrual loans(j)(k)(l)
	Sep 30, 2023			Dec 31, 2022		Sep 30, 2023		Dec 31, 2022
Consumer, excluding credit card
Residential real estate(a)	$	327,635		$	237,561	$	3,604	$	3,745
Auto and other(b)(c)	69,419			63,192		162		129
Total loans – retained	397,054			300,753		3,766		3,874
Loans held-for-sale	438			618		19		28
Loans at fair value(d)	11,277			10,004		389		423
Total consumer, excluding credit card loans	408,769			311,375		4,174		4,325
Lending-related commitments(e)	48,313			33,518
Total consumer exposure, excluding credit card	457,082		(i)	344,893
Credit card
Loans retained(f)	196,935			185,175		NA		NA

Total credit card loans	196,935			185,175		NA		NA
Lending-related commitments(e)(g)	898,903			821,284
Total credit card exposure	1,095,838			1,006,459
Total consumer credit portfolio	$	1,552,920		$	1,351,352	$	4,174	$	4,325
Credit-related notes used in credit portfolio management activities(h)	$	(882)		$	(1,187)


	Three months ended September 30,
(in millions, except ratios)	Net charge-offs/(recoveries)				Average loans - retained				Net charge-off/(recovery) rate(m)
	2023		2022		2023		2022		2023		2022
Consumer, excluding credit card
Residential real estate	$	(16)	$	(59)	$	327,826	$	237,261	(0.02)	%	(0.10)	%
Auto and other	183		135		68,962		64,086		1.05		0.84
Total consumer, excluding credit card - retained	167		76		396,788		301,347		0.17		0.10
Credit card - retained	1,227		592		195,232		168,125		2.49		1.40
Total consumer - retained	$	1,394	$	668	$	592,020	$	469,472	0.93	%	0.56	%


	Nine months ended September 30,
(in millions, except ratios)	Net charge-offs/(recoveries)				Average loans - retained				Net charge-off/(recovery) rate(m)
	2023		2022		2023		2022		2023		2022
Consumer, excluding credit card
Residential real estate	$	(61)	$	(193)	$	286,239	$	232,028	(0.03)	%	(0.11)	%
Auto and other	482		342		66,431		66,812		0.97		0.68
Total consumer, excluding credit card - retained	421		149		352,670		298,840		0.16		0.07
Credit card - retained	3,273		1,678		187,624		158,721		2.33		1.41
Total consumer - retained	$	3,694	$	1,827	$	540,294	$	457,561	0.91	%	0.53	%

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

(b)At September 30, 2023 and December 31, 2022, excluded operating lease assets of $10.6 billion and $12.0 billion, respectively. These operating lease assets are included in other assets on the Firm’s Consolidated balance sheets. Refer to Note 17 for further information.

(c)Includes scored auto and business banking loans, and overdrafts.

(d)Includes scored mortgage loans held in CCB and CIB, and other consumer unsecured loans in CIB.

(e)Credit card, home equity and certain business banking lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. For credit card commitments, and if certain conditions are met, home equity commitments and certain business banking commitments, the Firm can reduce or cancel these lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. Refer to Note 24 for further information.

(f)Includes billed interest and fees.

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

(h)Represents the notional amount of protection obtained through the issuance of credit-related notes that reference certain pools of residential real estate and auto loans in the retained consumer portfolio.

(i)Included credit exposure of $103.3 billion associated with First Republic, consisting of $100.5 billion in residential real estate and $2.8 billion in auto and other.

(j)At September 30, 2023 and December 31, 2022, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $188 million and $302 million, respectively. These amounts have been excluded from nonaccrual loans 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.

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

(l)At September 30, 2023 and December 31, 2022, nonaccrual loans excluded $35 million and $101 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA.

(m)Average consumer loans held-for-sale and loans at fair value were $14.4 billion and $14.9 billion for the three months ended September 30, 2023 and 2022, respectively, and $12.9 billion and $19.0 billion for the nine months ended September 30, 2023 and 2022, respectively. These amounts were excluded when calculating net charge-off/(recovery) rates.

Maturities and sensitivity to changes in interest rates

The table below sets forth loan maturities by scheduled repayments, by class of loan and the distribution between fixed and floating interest rates based on the stated terms of the loan agreements. Refer to Consumer Credit Portfolio on pages 110-115 of JPMorgan Chase's 2022 Form 10-K for further information.


September 30, 2023 (in millions)	Within 1 year(d)			1-5 years		5-15 years		After 15 years		Total
Consumer, excluding credit card
Residential real estate	$	16,633		$	27,489	$	110,166	$	183,145	$	337,433
Auto and other	19,889		(e)	46,531		4,911		5		71,336
Total consumer, excluding credit card loans(a)	$	36,522		$	74,020	$	115,077	$	183,150	$	408,769
Total credit card loans	$	196,292		$	640	$	3	$	—	$	196,935
Total consumer loans	$	232,814		$	74,660	$	115,080	$	183,150	$	605,704

Loans due after one year at fixed interest rates
Residential real estate(b)				$	20,352	$	59,714	$	90,811
Auto and other				46,453		3,747		5
Credit card				640		3		—

Loans due after one year at variable interest rates
Residential real estate(c)				$	7,137	$	50,452	$	92,334
Auto and other				78		1,164		—

Total consumer loans				$	74,660	$	115,080	$	183,150

(a)Included $3.5 billion, $4.6 billion, $27.7 billion, and $57.3 billion of loans within 1 year, 1-5 years, 5-15 years, and after 15 years, respectively, associated with First Republic.

(b)Included $3.0 billion, $8.8 billion, and $15.4 billion in 1-5 years, 5-15 years, and after 15 years, respectively, associated with First Republic.

(c)Included $1.6 billion, $18.9 billion, and $41.9 billion in 1-5 years, 5-15 years, and after 15 years, respectively, associated with First Republic.

(d)Includes loans held-for-sale and loans at fair value.

(e)Includes overdrafts.

Consumer, excluding credit card

Portfolio analysis

Loans increased compared to December 31, 2022 driven by residential real estate loans associated with First Republic and higher auto loans.

Residential real estate: The residential real estate portfolio, including loans held-for-sale and loans at fair value, predominantly consists of prime mortgage loans and home equity lines of credit.

Retained loans increased compared to December 31, 2022, driven by residential real estate loans associated with First Republic. Retained nonaccrual loans decreased compared to December 31, 2022. Net recoveries were lower for the three and nine months ended September 30, 2023 compared to the same periods in the prior year driven by lower prepayments due to higher interest rates.

Loans at fair value decreased from December 31, 2022, driven by a decrease in CIB due to sales outpacing purchases predominantly offset by an increase in Home Lending as originations outpaced warehouse loan sales. Nonaccrual loans at fair value decreased compared to December 31, 2022, predominantly driven by CIB.

At September 30, 2023 and December 31, 2022, the carrying value of interest-only residential mortgage loans was $90.9 billion and $36.3 billion, respectively. The increase was driven by First Republic. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers. The credit performance of this portfolio is comparable with the performance of the broader prime mortgage portfolio and there were no charge-offs associated with First Republic for the three and nine months ended September 30, 2023.

The carrying value of home equity lines of credit outstanding was $16.4 billion at September 30, 2023, which included $2.6 billion associated with First Republic. The carrying value of home equity lines of credit outstanding included $4.5 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified and $4.5 billion of interest-only balloon HELOCs, which primarily mature after 2030. The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are exhibiting a material deterioration in their credit risk profile.

The following table provides a summary of the Firm’s residential mortgage portfolio insured and/or guaranteed by U.S. government agencies, predominantly loans held-for-sale and loans at fair value. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses.


(in millions)	September 30, 2023		December 31, 2022
Current	$	632	$	659
30-89 days past due	103		136
90 or more days past due	188		302
Total government guaranteed loans	$	923	$	1,097

Geographic composition and current estimated loan-to-value ratio of residential real estate loans

At September 30, 2023, $229.3 billion, or 70% of the total retained residential real estate loan portfolio, was concentrated in California, New York, Florida, Texas and Massachusetts, compared with $147.8 billion, or 62% at December 31, 2022.

Refer to Note 12 for information on the geographic composition and current estimated LTVs of the Firm’s residential real estate loans.

Modified residential real estate loans

For the three and nine months ended September 30, 2023, residential real estate FDMs were $43 million and $110 million, respectively. In addition to FDMs, the Firm also had $27 million and $59 million of loans subject to trial modification where the terms of the loans have not been permanently modified, as well as $3 million and $7 million of loans subject to discharge under Chapter 7 bankruptcy proceedings ("Chapter 7 loans") for the three and nine months ended September 30, 2023, respectively. The changes to the TDR accounting guidance eliminated the TDR reasonably expected and concession assessment criteria. Accordingly, trial modifications and Chapter 7 loans were considered TDRs, but not FDMs. Refer to Note 1 and Note 12 for further information.

For the three and nine months ended September 30, 2022, residential real estate TDRs were $80 million and $313 million, respectively. Refer to Note 12 for further information on TDRs in prior periods.

Auto and other: The auto and other loan portfolio, including loans at fair value, consists of prime-quality scored auto and business banking loans, other consumer unsecured loans, and overdrafts. The portfolio increased when compared to December 31, 2022 due to originations of scored Auto loans and an increase in other consumer unsecured fair value option loans associated with First Republic, predominantly offset by paydowns. Net charge-offs increased for the three and nine months ended September 30, 2023 compared to the same periods in the prior year due to higher charge-offs of scored Auto loans as delinquency levels increased and vehicle valuations declined. The net charge-off rates for scored Auto loans were 0.61% and 0.27% for the three months ended September 30, 2023 and 2022, respectively, and 0.50% and 0.19% for the nine months ended September 30, 2023 and 2022, respectively.

Nonperforming assets

The following table presents information as of September 30, 2023 and December 31, 2022, about consumer, excluding credit card, nonperforming assets.


Nonperforming assets(a)
(in millions)	September 30, 2023		December 31, 2022
Nonaccrual loans
Residential real estate(b)	$	4,009	$	4,196
Auto and other(c)	165		129
Total nonaccrual loans	4,174		4,325
Assets acquired in loan satisfactions
Real estate owned	122		129
Other	36		28
Total assets acquired in loan satisfactions	158		157
Total nonperforming assets	$	4,332	$	4,482

(a)At September 30, 2023 and December 31, 2022, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $188 million and $302 million, respectively. These amounts have been excluded based upon the government guarantee.

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

(c)At September 30, 2023 and December 31, 2022, nonaccrual loans excluded $35 million and $101 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA.

Nonaccrual loans

The following table presents changes in consumer, excluding credit card, nonaccrual loans for the nine months ended September 30, 2023 and 2022.


Nonaccrual loan activity
Nine months ended September 30, (in millions)	2023		2022
Beginning balance	$	4,325	$	5,350
Additions	2,038		1,648
Reductions:
Principal payments and other(a)	934		1,209
Charge-offs	329		176
Returned to performing status	795		1,099
Foreclosures and other liquidations	131		136
Total reductions	2,189		2,620
Net changes	(151)		(972)
Ending balance	$	4,174	$	4,378

(a)Other reductions include loan sales.

Refer to Note 12 for further information about the consumer credit portfolio, including information about delinquencies, other credit quality indicators, loan modifications and loans that were in the process of active or suspended foreclosure.

Credit card

Total credit card loans increased from December 31, 2022 reflecting growth from new accounts and revolving balances which continued to normalize to pre-pandemic levels. The September 30, 2023 30+ and 90+ day delinquency rates of 1.94% and 0.94%, respectively, increased compared to the December 31, 2022 30+ and 90+ day delinquency rates of 1.45% and 0.68% respectively. Net charge-offs increased for the three and nine months ended September 30, 2023 compared to the same periods in the prior year as delinquencies have normalized.

Consistent with the Firm’s policy, all credit card loans typically remain on accrual status until charged off. However, the Firm’s allowance for loan losses includes the estimated uncollectible portion of accrued and billed interest and fee income. Refer to Note 12 for further information about this portfolio, including information about delinquencies.

Geographic and FICO composition of credit card loans

Refer to Note 12 for information on the geographic and FICO composition of the Firm’s credit card loans.

Modifications of credit card loans

For the three and nine months ended September 30, 2023, credit card FDMs were $197 million and $489 million, respectively. FDMs increased for the three and nine months ended September 30, 2023 compared to credit card TDRs in the same periods in the prior year, as delinquencies have normalized. In addition to FDMs, the Firm also had $29 million of loans subject to trial modification where the terms of the loans have not been permanently modified for both the three and nine months ended September 30, 2023. The changes to the TDR accounting guidance eliminated the TDR reasonably expected and concession assessment criteria. Accordingly, trial modifications were considered TDRs, but not FDMs.

For the three and nine months ended September 30, 2022, credit card TDRs were $111 million and $274 million, respectively.

Refer to Note 1 and Note 12 for further information.

WHOLESALE CREDIT PORTFOLIO

In its wholesale businesses, the Firm is exposed to credit risk primarily through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through various operating services (such as cash management and clearing activities), securities financing activities and cash placed with banks. A portion of the loans originated or acquired by the Firm’s wholesale businesses is generally retained on the balance sheet. The Firm distributes a significant percentage of the loans that it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk. The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure inclusive of collateral where applicable, and of industry, product and client concentrations. Refer to the industry discussion on pages 72-75 for further information.

The Firm’s wholesale credit portfolio includes exposure held in CIB, CB, AWM and Corporate, as well as risk-rated BWM and auto dealer exposure held in CCB, for which the wholesale methodology is applied when determining the allowance for loan losses. The Firm continues to convert certain operations, and to integrate clients, products and services, associated with First Republic to align with the Firm’s businesses and operations. Accordingly, reporting classifications and internal risk rating profiles in the wholesale portfolio may change in future periods. Refer to Business Developments on page 9 for additional information.

As of September 30, 2023, retained loans increased $68.3 billion predominantly driven by the impact of First Republic. Lending-related commitments increased $59.6 billion driven by the impact of First Republic, and net portfolio activity in CIB and CB.

As of September 30, 2023, the increase in nonperforming exposure was driven by loans, including a single name in Banks & Finance Companies and client-specific downgrades in Real Estate and Healthcare, partially offset by a client-specific upgrade in civic organizations. For the nine months ended September 30, 2023, wholesale charge-offs remained low, despite increased charge-offs in Office real estate.


Wholesale credit portfolio
	Credit exposure					Nonperforming
(in millions)	Sep 30, 2023			Dec 31, 2022		Sep 30, 2023		Dec 31, 2022
Loans retained	$	671,952		$	603,670	$	2,907	$	1,963
Loans held-for-sale	4,872			3,352		78		26
Loans at fair value	27,531			32,075		361		406
Loans	704,355			639,097		3,346		2,395
Derivative receivables	67,070			70,880		293		296
Receivables from customers(a)	43,376			49,257		—		—
Total wholesale credit-related assets	814,801			759,234		3,639		2,691
Assets acquired in loan satisfactions
Real estate owned	—			NA		158		74
Other	—			NA		2		—
Total assets acquired in loan satisfactions	—			NA		160		74
Lending-related commitments	531,568			471,980		387		455
Total wholesale credit portfolio	$	1,346,369	(c)	$	1,231,214	$	4,186	$	3,220
Credit derivatives and credit-related notes used in credit portfolio management activities(b)	$	(31,317)		$	(18,143)	$	—	$	—
Liquid securities and other cash collateral held against derivatives	(27,832)			(23,014)		—		NA

(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. Refer to Credit derivatives on page 79 and Note 5 for additional information.

(c)Included credit exposure of $95.2 billion associated with First Republic.

Wholesale credit exposure – maturity and ratings profile

The following tables present the maturity and internal risk rating profiles of the wholesale credit portfolio as of September 30, 2023 and December 31, 2022. The Firm generally considers internal ratings with qualitative characteristics equivalent to BBB-/Baa3 or higher as investment grade, and takes into consideration collateral and structural support when determining the internal risk rating for each credit facility. Refer to Note 12 of JPMorgan Chase's 2022 Form 10-K for further information on internal risk ratings.



	Maturity profile(d)								Ratings profile
	1 year or less		1 year through 5 years		After 5 years		Total		Investment-grade		Noninvestment-grade		Total		Total % of IG
September 30, 2023, (in millions, except ratios)
Loans retained	$	215,482	$	278,606	$	177,864	$	671,952	$	463,711	$	208,241	$	671,952	69	%
Derivative receivables							67,070						67,070
Less: Liquid securities and other cash collateral held against derivatives							(27,832)						(27,832)
Total derivative receivables, net of collateral	12,685		10,215		16,338		39,238		31,320		7,918		39,238		80
Lending-related commitments	141,421		368,108		22,039		531,568		348,656		182,912		531,568		66
Subtotal	369,588		656,929		216,241		1,242,758		843,687		399,071		1,242,758		68
Loans held-for-sale and loans at fair value(a)							32,403						32,403
Receivables from customers							43,376						43,376
Total exposure – net of liquid securities and other cash collateral held against derivatives							$	1,318,537					$	1,318,537
Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)	$	(3,034)	$	(24,676)	$	(3,607)	$	(31,317)	$	(27,162)	$	(4,155)	$	(31,317)	87	%


	Maturity profile(d)								Ratings profile
	1 year or less		1 year through 5 years		After 5 years		Total		Investment-grade		Noninvestment-grade		Total		Total % of IG
December 31, 2022 (in millions, except ratios)
Loans retained	$	204,761	$	253,896	$	145,013	$	603,670	$	425,412	$	178,258	$	603,670	70	%
Derivative receivables							70,880						70,880
Less: Liquid securities and other cash collateral held against derivatives							(23,014)						(23,014)
Total derivative receivables, net of collateral	13,508		14,880		19,478		47,866		36,231		11,635		47,866		76
Lending-related commitments	101,083		347,456		23,441		471,980		327,168		144,812		471,980		69
Subtotal	319,352		616,232		187,932		1,123,516		788,811		334,705		1,123,516		70
Loans held-for-sale and loans at fair value(a)							35,427						35,427
Receivables from customers							49,257						49,257
Total exposure – net of liquid securities and other cash collateral held against derivatives							$	1,208,200					$	1,208,200
Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)	$	(2,817)	$	(13,530)	$	(1,796)	$	(18,143)	$	(15,115)	$	(3,028)	$	(18,143)	83	%

(a)Loans held-for-sale are primarily related to syndicated loans and loans transferred from the retained portfolio.

(b)These derivatives do not qualify for hedge accounting under U.S. GAAP.

(c)The notional amounts are presented on a net basis by underlying reference entity and the ratings profile shown is based on the ratings of the reference entity on which protection has been purchased. Predominantly all of the credit derivatives entered into by the Firm where it has purchased protection used in credit portfolio management activities are executed with investment-grade counterparties. In addition, the Firm obtains credit protection against certain loans in the retained loan portfolio through the issuance of credit-related notes.

(d)The maturity profile of retained loans, lending-related commitments and derivative receivables is generally based on remaining contractual maturity. Derivative contracts that are in a receivable position as of September 30, 2023, may become payable prior to maturity based on their cash flow profile or changes in market conditions.

Wholesale credit exposure – industry exposures

The Firm focuses on the management and diversification of its industry exposures, and pays particular attention to industries with actual or potential credit concerns.

Exposures deemed criticized align with the U.S. banking regulators’ definition of criticized exposures, which consist of the special mention, substandard and doubtful categories. Total criticized exposure, excluding loans held-for-sale and loans at fair value, was $37.7 billion and $31.3 billion as of September 30, 2023 and December 31, 2022, representing approximately 3.0% and 2.7% of total wholesale credit exposure, respectively. Criticized exposure increased predominantly driven by Real Estate, including exposures associated with First Republic, Technology, Media & Telecommunications (largely Technology), and Healthcare. Of the $37.7 billion of criticized exposure at September 30, 2023, $34.1 billion was performing.

The table below summarizes by industry the Firm’s exposures as of September 30, 2023 and December 31, 2022. The industry of risk category is generally based on the client or counterparty’s primary business activity. Refer to Note 4 for additional information on industry concentrations.


Wholesale credit exposure – industries(a)
											Selected metrics
											30 days or more past due and accruing loans		Net charge-offs/ (recoveries)		Credit derivative hedges and credit-related notes(i)		Liquid securities and other cash collateral held against derivative receivables
					Noninvestment-grade
As of or for the nine months ended	Credit exposure(f)(g)(h)		Investment- grade		Noncriticized		Criticized performing		Criticized nonperforming
September 30, 2023
(in millions)
Real Estate	$	206,067	$	152,504	$	47,272	$	5,471	$	820	$	443	$	144	$	(558)	$	—
Asset Managers	145,707		94,525		51,088		88		6		329		1		—		(11,778)
Individuals and Individual Entities(b)	143,786		118,435		24,690		218		443		645		—		—		—
Consumer & Retail	127,978		63,142		56,377		7,989		470		198		96		(3,797)		—
Industrials	75,865		42,697		29,923		3,120		125		178		27		(2,694)		—
Technology, Media & Telecommunications	73,047		39,576		24,456		8,772		243		50		82		(3,833)		—
Healthcare	62,126		41,630		17,251		2,860		385		48		14		(2,956)		(19)
Banks & Finance Companies	56,886		31,752		24,054		568		512		4		8		(522)		(908)
State & Municipal Govt(c)	37,016		33,391		3,590		25		10		32		—		(12)		—
Utilities	36,454		24,899		10,681		752		122		30		(2)		(2,060)		—
Automotive	34,217		23,804		9,781		488		144		98		—		(610)		—
Oil & Gas	33,253		18,644		14,400		170		39		47		15		(1,920)		—
Insurance	23,733		17,749		5,691		293		—		1		—		(718)		(9,451)
Chemicals & Plastics	20,261		11,606		7,520		965		170		17		—		(1,006)		—
Central Govt	15,819		15,335		359		122		3		22		—		(3,907)		(142)
Transportation	15,180		6,857		6,910		1,358		55		28		(24)		(596)		—
Metals & Mining	15,136		8,143		6,552		410		31		16		(6)		(213)		—
Securities Firms	8,928		6,008		2,919		1		—		—		—		(13)		(2,707)
Financial Markets Infrastructure	4,096		3,758		338		—		—		—		—		(3)		—
All other(d)	135,035		115,659		18,944		423		9		9		(4)		(5,899)		(2,827)
Subtotal	$	1,270,590	$	870,114	$	362,796	$	34,093	$	3,587	$	2,195	$	351	$	(31,317)	$	(27,832)
Loans held-for-sale and loans at fair value	32,403
Receivables from customers	43,376
Total(e)	$	1,346,369


(continued from previous page)
											Selected metrics
											30 days or more past due and accruing loans		Net charge-offs/ (recoveries)		Credit derivative hedges and credit-related notes(i)		Liquid securities and other cash collateral held against derivative receivables
					Noninvestment-grade
As of or for the year ended	Credit exposure(f)(g)		Investment- grade		Noncriticized		Criticized performing		Criticized nonperforming
December 31, 2022
(in millions)
Real Estate	$	170,857	$	129,866	$	36,945	$	3,609	$	437	$	543	$	19	$	(113)	$	—
Asset Managers	95,656		78,925		16,665		61		5		15		(1)		—		(8,278)
Individuals and Individual Entities (b)	130,815		112,006		18,104		360		345		1,038		1		—		—
Consumer & Retail	120,555		60,781		51,871		7,295		608		321		49		(1,157)		—
Industrials	72,483		39,052		30,500		2,809		122		282		44		(1,258)		—
Technology, Media & Telecommunications	72,286		39,199		25,689		7,096		302		62		39		(1,766)		—
Healthcare	62,613		43,839		17,117		1,479		178		43		27		(1,055)		—
Banks & Finance Companies	51,816		27,811		22,994		961		50		36		—		(262)		(994)
State & Municipal Govt(c)	33,847		33,191		529		126		1		36		—		(9)		(5)
Utilities	36,218		25,981		9,294		807		136		21		15		(607)		(1)
Automotive	33,287		23,908		8,839		416		124		198		(2)		(513)		—
Oil & Gas	38,668		20,547		17,616		474		31		57		(6)		(414)		—
Insurance	21,045		15,468		5,396		181		—		1		—		(273)		(7,296)
Chemicals & Plastics	20,030		12,134		7,103		744		49		10		3		(298)		—
Central Govt	19,095		18,698		362		35		—		—		10		(4,591)		(677)
Transportation	15,009		6,497		6,862		1,574		76		24		2		(339)		—
Metals & Mining	15,915		8,825		6,863		222		5		7		(1)		(27)		(4)
Securities Firms	8,066		4,235		3,716		115		—		—		(13)		(26)		(2,811)
Financial Markets Infrastructure	4,962		4,525		437		—		—		—		—		—		—
All other(d)	123,307		105,284		17,555		223		245		4		(5)		(5,435)		(2,948)
Subtotal	$	1,146,530	$	810,772	$	304,457	$	28,587	$	2,714	$	2,698	$	181	$	(18,143)	$	(23,014)
Loans held-for-sale and loans at fair value	35,427
Receivables from customers	49,257
Total(e)	$	1,231,214

(a)The industry rankings presented in the table as of December 31, 2022, are based on the industry rankings of the corresponding exposures as of September 30, 2023, not actual rankings of such exposures as of December 31, 2022.

(b)Individuals and Individual Entities predominantly consists of Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB, and includes exposure to personal investment companies and personal and testamentary trusts.

(c)In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) noted above, the Firm held $6.3 billion and $6.6 billion of trading assets as of September 30, 2023 and December 31, 2022, respectively; $19.7 billion and $6.8 billion, respectively, of AFS securities; and $10.7 billion and $19.7 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 10 for further information.

(d)All other includes: SPEs, and Private education and civic organizations, representing approximately 94% and 6%, respectively, as of September 30, 2023 and 95% and 5%, respectively, as of December 31, 2022.

(e)Excludes cash and other deposits placed with banks of $502.8 billion and $556.6 billion, as of September 30, 2023 and December 31, 2022, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks.

(f)Credit exposure is net of risk participations and excludes the benefit of credit derivatives and credit-related notes used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables.

(g)Credit exposure includes held-for-sale and fair value option elected lending-related commitments.

(h)Included credit exposure of $95.2 billion associated with First Republic predominantly in Asset Managers, Real Estate, and Individuals and Individual Entities.

(i)Represents the net notional amounts of protection purchased and sold through credit derivatives and credit-related notes used to manage the credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. The All other category includes purchased credit protection on certain credit indices.

Presented below is additional detail on certain of the Firm’s industry exposures.

Real Estate

Real Estate exposure was $206.1 billion as of September 30, 2023. Criticized exposure increased by $2.3 billion from $4.0 billion as of December 31, 2022 to $6.3 billion as of September 30, 2023, driven by client-specific downgrades and exposures associated with First Republic, partially offset by client-specific upgrades.


	September 30, 2023
(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure			% Investment-grade		% Drawn(e)
Multifamily(a)	$	120,401	$	6	$	120,407		81	%	89	%
Industrial	20,375		2		20,377			71		74
Office	17,105		25		17,130			58		81
Other Income Producing Properties(b)	16,300		160		16,460			60		65
Services and Non Income Producing	14,765		62		14,827			69		52
Retail	12,784		24		12,808			74		74
Lodging	4,045		13		4,058			29		50
Total Real Estate Exposure(c)	$	205,775	$	292	$	206,067	(d)	74	%	81	%

	December 31, 2022
(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure			% Investment- grade		% Drawn(e)
Multifamily(a)	$	99,555	$	17	$	99,572		82	%	87	%
Industrial	15,928		1		15,929			72		71
Office	14,917		25		14,942			74		73
Other Income Producing Properties(b)	12,701		150		12,851			70		62
Services and Non Income Producing	13,968		10		13,978			65		48
Retail	10,192		8		10,200			75		68
Lodging	3,347		38		3,385			6		37
Total Real Estate Exposure	$	170,608	$	249	$	170,857		76	%	77	%

(a)Multifamily exposure is largely in California.

(b)Other Income Producing Properties consists of clients with diversified property types or other property types outside of categories listed in the table above.

(c)Real Estate exposure is approximately 81% secured; unsecured exposure is approximately 75% investment-grade.

(d)Included $32.9 billion of credit exposure associated with First Republic.

(e)Represents drawn exposure as a percentage of credit exposure.

Consumer & Retail

Consumer & Retail exposure was $128.0 billion as of September 30, 2023. Criticized exposure increased by $556 million from $7.9 billion as of December 31, 2022 to $8.5 billion as of September 30, 2023, driven by client-specific downgrades predominantly offset by client-specific upgrades and net portfolio activity.


	September 30, 2023
(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment-grade		% Drawn(d)
Retail(a)	$	35,990	$	246	$	36,236	52	%	32	%
Business and Consumer Services	34,025		475		34,500		45		41
Food and Beverage	32,798		947		33,745		56		37
Consumer Hard Goods	14,448		162		14,610		48		34
Leisure(b)	8,812		75		8,887		30		46
Total Consumer & Retail(c)	$	126,073	$	1,905	$	127,978	49	%	37	%

	December 31, 2022
(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment- grade		% Drawn(d)
Retail(a)	$	33,891	$	309	$	34,200	50	%	33	%
Business and Consumer Services	31,256		384		31,640		50		40
Food and Beverage	31,706		736		32,442		59		39
Consumer Hard Goods	13,879		172		14,051		51		39
Leisure(b)	8,173		49		8,222		21		45
Total Consumer & Retail	$	118,905	$	1,650	$	120,555	50	%	38	%

(a)Retail consists of Home Improvement & Specialty Retailers, Restaurants, Supermarkets, Discount & Drug Stores, Specialty Apparel and Department Stores.

(b)Leisure consists of Gaming, Arts & Culture, Travel Services and Sports & Recreation. As of September 30, 2023 approximately 90% of the noninvestment-grade Leisure portfolio is secured.

(c)Consumer & Retail exposure is approximately 57% secured; unsecured exposure is approximately 80% investment-grade.

(d)Represents drawn exposure as a percent of credit exposure.

Oil & Gas

Oil & Gas exposure was $33.3 billion as of September 30, 2023 of which $209 million was considered criticized exposure.


	September 30, 2023
(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment-grade		% Drawn(c)
Exploration & Production (“E&P”) and Oil field Services	$	15,819	$	1,963	$	17,782	53	%	29	%
Other Oil & Gas(a)	15,048		423		15,471		59		26
Total Oil & Gas(b)	$	30,867	$	2,386	$	33,253	56	%	27	%

	December 31, 2022
(in millions, except ratios)	Loans and Lending-related Commitments		Derivative Receivables		Credit exposure		% Investment- grade		% Drawn(c)
Exploration & Production (“E&P”) and Oil field Services	$	17,729	$	4,666	$	22,395	50	%	25	%
Other Oil & Gas(a)	15,818		455		16,273		57		25
Total Oil & Gas	$	33,547	$	5,121	$	38,668	53	%	25	%

(a)Other Oil & Gas includes Integrated Oil & Gas companies, Midstream/Oil Pipeline companies and refineries.

(b)Oil & Gas exposure is approximately 39% secured, over half of which is reserve-based lending to the Exploration & Production sub-sector; unsecured exposure is approximately 67% investment-grade.

(c)Represents drawn exposure as a percent of credit exposure.

Loans

In its wholesale businesses, the Firm provides loans to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals. Refer to Note 12 for a further discussion on loans, including information about delinquencies, loan modifications and other credit quality indicators.

The following table presents the change in the nonaccrual loan portfolio for the nine months ended September 30, 2023 and 2022. Since September 30, 2022, nonaccrual loan exposure increased by $1.1 billion driven by a single name in Banks & Finance Companies and client-specific downgrades in Real Estate and Healthcare, partially offset by a client-specific upgrade in civic organizations.


Wholesale nonaccrual loan activity
Nine months ended September 30, (in millions)	2023		2022
Beginning balance	$	2,395	$	2,445
Additions	2,843		1,635
Reductions:
Paydowns and other	783		1,108
Gross charge-offs	414		127
Returned to performing status	550		516
Sales	145		33
Total reductions	1,892		1,784
Net changes	951		(149)
Ending balance	$	3,346	$	2,296

The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the three and nine months ended September 30, 2023 and 2022. The amounts in the table below do not include gains or losses from sales of nonaccrual loans recognized in noninterest revenue.


Wholesale net charge-offs/(recoveries)
(in millions, except ratios)	Three months ended September 30,						Nine months ended September 30,
	2023			2022			2023			2022
Loans
Average loans retained	$	667,825		$	590,490		$	639,125		$	576,025
Gross charge-offs	141			109			435			232
Gross recoveries collected	(38)			(50)			(84)			(93)
Net charge-offs/(recoveries)	103			59			351			139
Net charge-off/(recovery) rate	0.06		%	0.04		%	0.07		%	0.03		%

Modified wholesale loans

The amortized cost of wholesale FDMs was $1.4 billion and $2.0 billion for the three and nine months ended September 30, 2023, respectively. Refer to Note 1 and Note 12 for further information.

Wholesale TDRs were $108 million and $587 million for the three and nine months ended September 30, 2022, respectively.

As a result of the elimination of the requirement to assess whether a modification is reasonably expected or involves a concession, the population of loans considered FDMs is greater than the population previously considered TDRs. Refer to Note 12 for further information on TDRs in prior periods.

Maturities and sensitivity to changes in interest rates

The table below sets forth loan maturities by scheduled repayments, by class of loan and the distribution between fixed and floating interest rates based on the stated terms of the loan agreements. Refer to Wholesale Credit Portfolio on pages 116-126 of JPMorgan Chase's 2022 Form 10-K for further information. Refer to Note 12 for further information on loan classes.


September 30, 2023 (in millions, except ratios)	1 year or less(f)		After 1 year through 5 years		After 5 years through 15 years		After 15 years		Total
Wholesale loans:
Secured by real estate(a)	$	16,152	$	60,962	$	50,006	$	42,123	$	169,243
Commercial and industrial	52,042		111,879		9,781		150		173,852
Other(b)	179,440		138,475		37,526		5,819		361,260
Total wholesale loans	$	247,634	$	311,316	$	97,313	$	48,092	$	704,355
Loans due after one year at fixed interest rates
Secured by real estate(c)			$	15,531	$	11,640	$	678
Commercial and industrial			5,156		1,418		34
Other			25,108		15,294		3,910
Loans due after one year at variable interest rates
Secured by real estate(d)			$	45,431	$	38,366	$	41,445
Commercial and industrial			106,723		8,362		115
Other(e)			113,367		22,233		1,910
Total wholesale loans			$	311,316	$	97,313	$	48,092

(a)Included $6.3 billion, $16.7 billion, and $10.2 billion of loans in 1 year or less, after 1 year through 5 years, and after 5 years though 15, respectively, associated with First Republic.

(b)Included $10.6 billion, and $3.8 billion of loans in 1 year or less, and after 1 year through 5 years, respectively, associated with First Republic.

(c)Included $9.6 billion, and $5.9 billion in after 1 year through 5 years, and after 5 years though 15, respectively, associated with First Republic.

(d)Included $7.1 billion, and $4.3 billion in after 1 year through 5 years, and after 5 years though 15, respectively, associated with First Republic.

(e)Included $3.1 billion in after 1 year through 5 years associated with First Republic.

(f)Includes loans held-for-sale, demand loans and overdrafts.

The following table presents net charge-offs/recoveries, average retained loans and net charge-off/recovery rate by loan class for the three and nine months ended September 30, 2023 and 2022.


	Three months ended September 30,
	Secured by real estate						Commercial and industrial						Other						Total
(in millions, except ratios)	2023			2022			2023			2022			2023			2022			2023			2022
Net charge-offs/(recoveries)	$	41		$	—		$	45		$	27		$	17		$	32		$	103		$	59
Average retained loans	161,765			124,187			170,998			165,287			335,062			301,016			667,825			590,490
Net charge-off/(recovery) rate	0.10		%	—		%	0.10		%	0.07		%	0.02		%	0.04		%	0.06		%	0.04		%


	Nine months ended September 30,
	Secured by real estate						Commercial and industrial						Other						Total
(in millions, except ratios)	2023			2022			2023			2022			2023			2022			2023			2022
Net charge-offs/(recoveries)	$	131		$	7		$	196		$	77		$	24		$	55		$	351		$	139
Average retained loans	147,171			121,867			171,289			158,132			320,665			296,026			639,125			576,025
Net charge-off/(recovery) rate	0.12		%	0.01		%	0.15		%	0.07		%	0.01		%	0.02		%	0.07		%	0.03		%

Lending-related commitments

The Firm uses lending-related financial instruments, such as commitments (including revolving credit facilities) and guarantees, to address the financing needs of its clients. The contractual amounts of these financial instruments represent the maximum possible credit risk should the clients draw down on these commitments or when the Firm fulfills its obligations under these guarantees, and the clients subsequently fail to perform according to the terms of these contracts. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being drawn upon or a default occurring. As a result, the Firm does not believe that the total contractual amount of these wholesale lending-related commitments is representative of the Firm’s expected future credit exposure or funding requirements. Refer to Note 24 for further information on wholesale lending-related commitments.

Receivables from customers

Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM that are collateralized by assets maintained in the clients’ brokerage accounts (e.g., cash on deposit, and liquid and readily marketable debt or equity securities). Because of this collateralization, no allowance for credit losses is generally held against these receivables. To manage its credit risk the Firm establishes margin requirements and monitors the required margin levels on an ongoing basis, and requires clients to deposit additional cash or other collateral, or to reduce positions, when appropriate. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets.

Derivative contracts

Derivatives enable clients and counterparties to manage risk including credit risk and risks arising from fluctuations in interest rates, foreign exchange and equities and commodities prices. The Firm makes markets in derivatives in order to meet these needs and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. The Firm also uses derivative instruments to manage its own credit risk and other market risk exposure. The nature of the counterparty and the settlement mechanism of the derivative affect the credit risk to which the Firm is exposed. For over-the-counter ("OTC") derivatives the Firm is exposed to the credit risk of the derivative counterparty. For exchange-traded derivatives (“ETD”), such as futures and options, and cleared over-the-counter (“OTC-cleared”) derivatives, the Firm can also be exposed to the credit risk of the relevant central counterparty clearing house (“CCP”). Where possible, the Firm seeks to mitigate its credit risk exposures arising from derivative contracts through the use of legally enforceable master netting arrangements and collateral agreements.

The percentage of the Firm’s over-the-counter derivative transactions subject to collateral agreements — excluding foreign exchange spot trades, which are not typically covered by collateral agreements due to their short maturity, and centrally cleared trades that are settled daily — was approximately 88% and 87% at September 30, 2023 and December 31, 2022, respectively. Refer to Note 5 for additional information on the Firm’s use of collateral agreements and for a further discussion of derivative contracts, counterparties and settlement types.

The fair value of derivative receivables reported on the Consolidated balance sheets was $67.1 billion and $70.9 billion at September 30, 2023 and December 31, 2022, respectively. The decrease was primarily driven by market movements. Derivative receivables represent the fair value of the derivative contracts after giving effect to legally enforceable master netting agreements and the related cash collateral held by the Firm.

In addition, the Firm held liquid securities and other cash collateral that may be used as security when the fair value of the client’s exposure is in the Firm’s favor. For these purposes, the definition of liquid securities is consistent with the definition of high quality liquid assets as defined in the LCR rule.

In management’s view, the appropriate measure of current credit risk should also take into consideration other collateral, which generally represents securities that do not qualify as high quality liquid assets under the LCR rule. The benefits of these additional collateral amounts for each counterparty are subject to a legally enforceable master netting agreement and limited to the net amount of the derivative receivables for each counterparty.

The Firm also holds additional collateral (primarily cash, G7 government securities, other liquid government agency and guaranteed securities, and corporate debt and equity securities) delivered by clients at the initiation of transactions, as well as collateral related to contracts that have a non-daily call frequency and collateral that the Firm has agreed to return but has not yet settled as of the reporting date. Although this collateral does not reduce the balances and is not included in the tables below, it is available as security against potential exposure that could arise should the fair value of the client’s derivative contracts move in the Firm’s favor. Refer to Note 5 for additional information on the Firm’s use of collateral agreements for derivatives transactions.

The following tables summarize the net derivative receivables and the internal ratings profile for the periods presented.


Derivative receivables
(in millions)	September 30, 2023		December 31, 2022
Total, net of cash collateral	$	67,070	$	70,880
Liquid securities and other cash collateral held against derivative receivables	(27,832)		(23,014)
Total, net of liquid securities and other cash collateral	$	39,238	$	47,866
Other collateral held against derivative receivables	(1,682)		(1,261)
Total, net of collateral	$	37,556	$	46,605


Ratings profile of derivative receivables
	September 30, 2023				December 31, 2022
(in millions, except ratios)	Exposure net of collateral		% of exposure net of collateral		Exposure net of collateral			% of exposure net of collateral
Investment-grade	$	29,817	79	%	$	35,097		75	%
Noninvestment-grade	7,739		21		11,508		(a)	25
Total	$	37,556	100	%	$	46,605		100	%

Credit portfolio management activities

The Firm uses credit derivatives for two primary purposes: first, in its capacity as a market-maker, and second, as an end-user, to manage the Firm’s own credit risk associated with traditional lending activities (loans and lending-related commitments) and derivatives counterparty exposure in the Firm’s wholesale businesses. In addition, the Firm obtains credit protection against certain loans in the retained wholesale portfolio through the issuance of credit-related notes. Information on credit portfolio management activities is provided in the table below.


Credit derivatives and credit-related notes used in credit portfolio management activities
	Notional amount of protection purchased and sold(a)
(in millions)	September 30, 2023		December 31, 2022
Credit derivatives and credit-related notes used to manage:
Loans and lending-related commitments	$	20,092	$	6,422
Derivative receivables	11,225		11,721
Credit derivatives and credit-related notes used in credit portfolio management activities	$	31,317	$	18,143

(a)Amounts are presented net, considering the Firm’s net protection purchased or sold with respect to each underlying reference entity or index.

Refer to Credit derivatives in Note 5 of this Form 10-Q and Note 5 of JPMorgan Chase’s 2022 Form 10-K for further information on credit derivatives and derivatives used in credit portfolio management activities.

ALLOWANCE FOR CREDIT LOSSES

The Firm’s allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses generally consists of:

•the allowance for loan losses, which covers the Firm’s retained loan portfolios (scored and risk-rated),

•the allowance for lending-related commitments, which is reflected in accounts payable and other liabilities on the Consolidated balance sheets, and

•the allowance for credit losses on investment securities, which is reflected in investment securities on the Consolidated balance sheets.

Discussion of changes in the allowance

The allowance for credit losses as of September 30, 2023 was $24.2 billion, reflecting a net addition of $2.5 billion from December 31, 2022.

The net addition to the allowance for credit losses included $1.4 billion, consisting of:

•$623 million in wholesale, driven by net downgrade activity, the net effect of changes in the Firm's weighted average macroeconomic outlook, including deterioration in the outlook for commercial real estate in CB, partially offset by the impact of changes in the loan and lending-related commitment portfolios in CIB in the third quarter of 2023.

The net addition also included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023.

The changes in the Firm's weighted average macroeconomic outlook included updates to the central scenario in the third quarter of 2023 to reflect a lower forecasted unemployment rate consistent with a higher growth rate in GDP. The Firm's weighted average macroeconomic outlook also reflects the impact of the additional weight placed on the adverse scenarios in the first quarter of 2023, reflecting elevated recession risks due to high inflation and tightening financial conditions.

The allowance for credit losses also reflected a reduction of $587 million as a result of the adoption of changes to the TDR accounting guidance on January 1, 2023. Refer to Note 1 for further information.

The Firm's allowance for credit losses is estimated using a weighted average of five internally developed macroeconomic scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions provided in the table below, resulting in a weighted average U.S. unemployment rate peaking at 5.5% in the fourth quarter of 2024, and a 1.8% lower U.S. real GDP exiting the fourth quarter of 2024.

The Firm’s central case assumptions reflected U.S. unemployment rates and U.S. real GDP as follows:


	Assumptions at September 30, 2023
	4Q23		2Q24		4Q24
U.S. unemployment rate(a)	3.9	%	4.2	%	4.6	%
YoY growth in U.S. real GDP(b)	2.1	%	1.2	%	0.7	%

	Assumptions at December 31, 2022
	2Q23		4Q23		2Q24
U.S. unemployment rate(a)	3.8	%	4.3	%	5.0	%
YoY growth in U.S. real GDP(b)	1.5	%	0.4	%	—	%

(a)Reflects quarterly average of forecasted U.S. unemployment rate.

(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.

Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.

Refer to Note 13 and Note 10 of JPMorgan Chase's 2022 Form 10-K for a description of the policies, methodologies and judgments used to determine the Firm’s allowance for credit losses on loans, lending-related commitments, and investment securities.

Refer to Consumer Credit Portfolio on pages 65-69, Wholesale Credit Portfolio on pages 70-79 and Note 12 for additional information on the consumer and wholesale credit portfolios.

Refer to Critical Accounting Estimates Used by the Firm on pages 91-93 for further information on the allowance for credit losses and related management judgments.


Allowance for credit losses and related information
	2023												2022
Nine months ended September 30,	Consumer, excluding credit card			Credit card			Wholesale			Total			Consumer, excluding credit card			Credit card			Wholesale			Total
(in millions, except ratios)
Allowance for loan losses
Beginning balance at January 1,	$	2,040		$	11,200		$	6,486		$	19,726		$	1,765		$	10,250		$	4,371		$	16,386
Cumulative effect of a change in accounting principle(a)	(489)			(100)			2			(587)			NA			NA			NA			NA
Gross charge-offs	809			3,852			435			5,096			590			2,294			232			3,116
Gross recoveries collected	(388)			(579)			(84)			(1,051)			(441)			(616)			(93)			(1,150)
Net charge-offs/(recoveries)	421			3,273			351			4,045			149			1,678			139			1,966
Provision for loan losses	723			4,073			2,047			6,843			202			1,828			1,733			3,763
Other	1			—			8			9			1			—			1			2
Ending balance at September 30,	$	1,854		$	11,900		$	8,192		$	21,946		$	1,819		$	10,400		$	5,966		$	18,185

Allowance for lending-related commitments
Beginning balance at January 1,	$	76		$	—		$	2,306		$	2,382		$	113		$	—		$	2,148		$	2,261
Provision for lending-related commitments	5			—			(313)			(308)			(36)			—			325			289
Other	—			—			1			1			—			—			1			1
Ending balance at September 30,	$	81		$	—		$	1,994		$	2,075		$	77		$	—		$	2,474		$	2,551

Impairment methodology
Asset-specific(b)	$	(942)		$	—		$	732		$	(210)		$	(702)		$	218		$	450		$	(34)
Portfolio-based	2,796			11,900			7,460			22,156			2,521			10,182			5,516			18,219
Total allowance for loan losses	$	1,854		$	11,900		$	8,192		$	21,946		$	1,819		$	10,400		$	5,966		$	18,185

Impairment methodology
Asset-specific	$	—		$	—		$	61		$	61		$	—		$	—		$	84		$	84
Portfolio-based	81			—			1,933			2,014			77			—			2,390			2,467
Total allowance for lending-related commitments	$	81		$	—		$	1,994		$	2,075		$	77		$	—		$	2,474		$	2,551
Total allowance for investment securities	NA			NA			NA			$	117		NA			NA			NA			$	61
Total allowance for credit losses(c)(d)	$	1,935		$	11,900		$	10,186		$	24,138		$	1,896		$	10,400		$	8,440		$	20,797

Memo:
Retained loans, end-of-period	$	397,054		$	196,935		$	671,952		$	1,265,941		$	301,403		$	170,462		$	596,208		$	1,068,073
Retained loans, average	352,670			187,624			639,125			1,179,419			298,840			158,721			576,025			1,033,586
Credit ratios
Allowance for loan losses to retained loans	0.47		%	6.04		%	1.22		%	1.73		%	0.60		%	6.10		%	1.00		%	1.70		%
Allowance for loan losses to retained nonaccrual loans(e)	49			NA			282			329			46			NA			317			314
Allowance for loan losses to retained nonaccrual loans excluding credit card	49			NA			282			151			46			NA			317			134
Net charge-off/(recovery) rates	0.16			2.33			0.07			0.46			0.07			1.41			0.03			0.25

(a)Represents the impact to the allowance for loan losses upon the Firm's adoption of changes to the TDR accounting guidance on January 1, 2023. The adoption of this guidance eliminated the existing accounting and disclosure requirements for TDRs, including the requirement to measure the allowance using a discounted cash flow ("DCF") methodology. The Firm elected to change from an asset-specific allowance approach to its non-DCF, portfolio-based allowance approach for modified loans to troubled borrowers for all portfolios except collateral-dependent loans and nonaccrual risk-rated loans, for which the asset-specific allowance approach will continue to apply. Refer to Note 1 for further information.

(b)Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans for all periods presented. Prior periods also include non collateral-dependent TDRs or reasonably expected TDRs and modified purchased credit deteriorated ("PCD") loans.

(c)At September 30, 2023 and 2022, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $17 million and $30 million, respectively, associated with certain accounts receivable in CIB.

(d)As of September 30, 2023 included $1.2 billion allowance for credit losses associated with First Republic.

(e)The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.

Allocation of allowance for loan losses

The table below presents a breakdown of the allowance for loan losses by loan class. Refer to Note 12 for further information on loan classes.


	September 30, 2023				December 31, 2022
(in millions, except ratios)	Allowance for loan losses		Percent of retained loans to total retained loans		Allowance for loan losses		Percent of retained loans to total retained loans
Residential real estate	$	815	26	%	$	1,070	22	%
Auto and other	1,039		5		970		6
Consumer, excluding credit card	1,854		31		2,040		28
Credit card	11,900		16		11,200		17
Total consumer	13,754		47		13,240		45
Secured by real estate	2,725		13		1,782		12
Commercial and industrial	3,635		13		3,507		15
Other	1,832		27		1,197		28
Total wholesale	8,192		53		6,486		55
Total(a)	$	21,946	100	%	$	19,726	100	%

(a) As of September 30, 2023 included $1.1 billion allowance for loan losses associated with First Republic, consisting of $396 million in Residential real estate, $473 million in Secured by real estate, and $195 million in Commercial and industrial.

INVESTMENT PORTFOLIO RISK MANAGEMENT

Investment portfolio risk is the risk associated with the loss of principal or a reduction in expected returns on investments arising from the investment securities portfolio or from principal investments. The investment securities portfolio is predominantly held by Treasury and CIO in connection with the Firm’s balance sheet and asset-liability management objectives. Principal investments are predominantly privately-held financial instruments and are managed in the LOBs and Corporate. Investments are typically intended to be held over extended periods and, accordingly, the Firm has no expectation for short-term realized gains with respect to these investments.

Investment securities risk

Investment securities risk includes the exposure associated with a default in the payment of principal and interest. This risk is mitigated given that the investment securities portfolio held by Treasury and CIO predominantly consists of high-quality securities. At September 30, 2023, the Treasury and CIO investment securities portfolio, net of the allowance for credit losses, was $583.5 billion, and the average credit rating of the securities comprising the portfolio was AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings). Refer to Corporate segment results on pages 45-46 and Note 10 for further information on the investment securities portfolio and internal risk ratings. Refer to Liquidity Risk Management on pages 54-61 for further information on related liquidity risk. Refer to Market Risk Management on pages 84-89 for further information on the market risk inherent in the portfolio.

Principal investment risk

Principal investments are typically privately-held financial instruments representing ownership interests or other forms of junior capital. In general, principal investments include tax-oriented investments and investments made to enhance or accelerate the Firm’s business strategies and exclude those that are consolidated on the Firm's balance sheets. These investments are made by dedicated investing businesses or as part of a broader business strategy. The Firm’s principal investments are managed by the LOBs and Corporate and are reflected within their respective financial results. The Firm’s investments will continue to evolve in line with its strategies, including the Firm’s commitment to support underserved communities and minority-owned businesses.

The table below presents the aggregate carrying values of the principal investment portfolios as of September 30, 2023 and December 31, 2022.


(in billions)	September 30, 2023		December 31, 2022
Tax-oriented investments, primarily in alternative energy and affordable housing(a)	$	27.6	$	26.2
Private equity, various debt and equity instruments, and real assets(b)	10.7		10.8
Total carrying value	$	38.3	$	37.0

(a)As of September 30, 2023, included approximately $1.1 billion in tax-oriented investments in CIB associated with First Republic.

(b)Includes the Firm’s 40% ownership in C6 Bank and 49% ownership in Viva Wallet.

Refer to page 130 of JPMorgan Chase’s 2022 Form 10-K for a discussion of the Firm’s Investment Portfolio Risk Management governance and oversight.

MARKET RISK MANAGEMENT

Market risk is the risk associated with the effect of changes in market factors such as interest and foreign exchange rates, equity and commodity prices, credit spreads or implied volatilities, on the value of assets and liabilities held for both the short and long term. Refer to Market Risk Management on pages 131-138 of JPMorgan Chase’s 2022 Form 10-K for a discussion of the Firm’s Market Risk Management organization, market risk measurement, risk monitoring and control, and predominant business activities that give rise to market risk.

Models used to measure market risk are inherently imprecise and are limited in their ability to measure certain risks or to predict losses. This imprecision may be heightened when sudden or severe shifts in market conditions occur. For additional discussion on model uncertainty refer to Estimations and Model Risk Management on page 148 of JPMorgan Chase’s 2022 Form 10-K.

Market Risk Management periodically reviews the Firm’s existing market risk measures to identify opportunities for enhancement, and to the extent appropriate, will calibrate those measures accordingly over time.

Value-at-risk

JPMorgan Chase utilizes value-at-risk (“VaR”), a statistical risk measure, to estimate the potential loss from adverse market moves in the current market environment. The Firm has a single VaR framework used as a basis for calculating Risk Management VaR and Regulatory VaR.

The Firm’s Risk Management VaR is calculated assuming a one-day holding period and an expected tail-loss methodology which approximates a 95% confidence level. For risk management purposes, the Firm believes this methodology provides a daily measure of risk that is closely aligned to risk management decisions made by the LOBs and Corporate and, along with other market risk measures, provides the appropriate information needed to respond to risk events. The Firm calculates separately a daily aggregated VaR in accordance with regulatory rules (“Regulatory VaR”), which is used to derive the Firm’s regulatory VaR-based capital requirements under Basel III.

The Firm’s VaR model calculations are periodically evaluated and enhanced in response to changes in the composition of the Firm’s portfolios, changes in market conditions, improvements in the Firm’s modeling techniques and measurements, and other factors. Such changes may affect historical comparisons of VaR results. Refer to Estimations and Model Risk Management on page 148 of JPMorgan Chase’s 2022 Form 10-K for information regarding model reviews and approvals.

Refer to page 133 of JPMorgan Chase’s 2022 Form 10-K for further information regarding VaR, including the inherent limitations, and the key differences between Risk Management VaR and Regulatory VaR. Refer to JPMorgan Chase’s Basel III Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for additional information on Regulatory VaR and the other components of market risk regulatory capital for the Firm (e.g., VaR-based measure, stressed VaR-based measure and the respective backtesting). Refer to Other risk measures on pages 136-138 of JPMorgan Chase’s 2022 Form 10-K for further information regarding nonstatistical market risk measures used by the Firm.

The table below shows the results of the Firm’s Risk Management VaR measure using a 95% confidence level. VaR can vary significantly as positions change, market volatility fluctuates, and diversification benefits change.


Total VaR
	Three months ended
	September 30, 2023						June 30, 2023						September 30, 2022
(in millions)	Avg.		Min		Max		Avg.		Min		Max		Avg.		Min		Max
CIB trading VaR by risk type
Fixed income	$	49	$	34	$	63	$	57	$	50	$	66	$	64	$	45	$	82
Foreign exchange	17		9		26		12		7		24		9		6		15
Equities	7		5		11		8		5		11		11		8		14
Commodities and other	10		8		13		12		8		17		14		11		20
Diversification benefit to CIB trading VaR(a)	(48)		NM		NM		(48)		NM		NM		(47)		NM		NM
CIB trading VaR	35		27		44		41		31		50		51		36		69
Credit Portfolio VaR(b)	15		12		18		14		11		18		10		6		17
Diversification benefit to CIB VaR(a)	(12)		NM		NM		(11)		NM		NM		(8)		NM		NM
CIB VaR	38		30		47		44		34		55		53		38		71
CCB VaR	5		2		9		9		6		14		6		4		11
Corporate and other LOB VaR(c)	11		9		13		13		11		15		12		10		13
Diversification benefit to other VaR(a)	(4)		NM		NM		(7)		NM		NM		(4)		NM		NM
Other VaR	12		9		15		15		13		19		14		11		17
Diversification benefit to CIB and other VaR(a)	(9)		NM		NM		(12)		NM		NM		(13)		NM		NM
Total VaR	$	41	$	32	$	52	$	47	$	36	$	56	$	54	$	40	$	71

(a)Diversification benefit represents the difference between the portfolio VaR and the sum of its individual components. This reflects the non-additive nature of VaR due to imperfect correlation across LOBs, Corporate, and risk types. For maximum and minimum VaR, diversification benefit is not meaningful as the maximum and minimum VaR for each portfolio may have occurred on different trading days than the components.

(b)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. In the first quarter of 2022, in line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also removed to maintain consistency. This exposure is now reflected in other sensitivity-based measures.

(c)Corporate and other LOB VaR includes a legacy private equity position in Corporate which is publicly traded.

Quarter over quarter results

Average total VaR decreased by $6 million for the three months ended September 30, 2023, when compared with June 30, 2023, predominantly due to market volatility rolling out of the one-year historical look-back period which primarily impacted fixed income, partially offset by increases in the foreign exchange risk type.

Year over year results

Average total VaR decreased by $13 million for the three months ended September 30, 2023, compared with the same period in the prior year driven by reduced market volatility as well as risk reductions impacting fixed income, partially offset by increases in the foreign exchange risk type.

The following graph presents daily Risk Management VaR for the five trailing quarters.

Daily Risk Management VaR

Third Quarter
2022

Fourth Quarter
2022

First Quarter
2023

Second Quarter
2023

Third Quarter

2023

VaR backtesting

The Firm performs daily VaR model backtesting, which compares the daily Risk Management VaR results with the daily gains and losses that are utilized for VaR backtesting purposes. The gains and losses depicted in the chart below do not reflect the Firm’s reported revenue as they exclude certain components of total net revenue, such as those associated with the execution of new transactions (i.e., intraday client-driven trading and intraday risk management activities), fees, commissions, other valuation adjustments and net interest income. These excluded components of total net revenue may more than offset the backtesting gain or loss on a particular day. The definition of backtesting gains and losses above is consistent with the requirements for backtesting under Basel III capital rules.

A backtesting exception occurs when the daily backtesting loss exceeds the daily Risk Management VaR for the prior day. Under the Firm’s Risk Management VaR methodology, assuming current changes in market values are consistent with the historical changes used in the simulation, the Firm would expect to incur VaR backtesting exceptions five times every 100 trading days on average. The number of VaR backtesting exceptions observed can differ from the statistically expected number of backtesting exceptions if the current level of market volatility is materially different from the level of market volatility during the 12 months of historical data used in the VaR calculation.

For the 12 months ended September 30, 2023, the Firm posted backtesting gains on 137 of the 258 days, and observed nine VaR backtesting exceptions. For the three months ended September 30, 2023, the Firm posted backtesting gains on 36 of the 65 days, and observed one VaR backtesting exception.

The following chart presents the distribution of Firmwide daily backtesting gains and losses for the trailing 12 months and three months ended September 30, 2023. The daily backtesting losses are displayed as a percentage of the corresponding daily Risk Management VaR. The count of days with backtesting losses are shown in aggregate, in fifty percentage point intervals. Backtesting exceptions are displayed within the intervals that are greater than one hundred percent. The results in the chart below differ from the results of backtesting disclosed in the Market Risk section of the Firm’s Basel III Pillar 3 Regulatory Capital Disclosures reports, which are based on Regulatory VaR applied to the Firm’s covered positions.

Distribution of Daily Backtesting Gains and Losses

Structural interest rate risk management

The effect of interest rate exposure on the Firm’s reported net income is important as interest rate risk represents one of the Firm’s significant market risks. Interest rate risk arises not only from trading activities but also from the Firm’s traditional banking activities, which include extension of loans and credit facilities, taking deposits, issuing debt and the investment securities portfolio.

One way that the Firm evaluates its structural interest rate risk is through earnings-at-risk. Earnings-at-risk estimates the Firm’s interest rate exposure for a given interest rate scenario. It is presented as a sensitivity to a baseline, which includes net interest income and certain interest rate sensitive fees. The baseline uses market interest rates and in the case of deposits, pricing assumptions. The Firm conducts simulations of changes to this baseline for interest rate-sensitive assets and liabilities denominated in U.S. dollars and other currencies (“non-U.S. dollar” currencies). These simulations primarily include retained loans, deposits, deposits with banks, investment securities, long-term debt and any related interest rate hedges, and funds transfer pricing of other positions in risk management VaR and other sensitivity-based measures as described on page 132 of JPMorgan Chase’s 2022 Form 10-K.

Earnings-at-risk scenarios estimate the potential change to a net interest income baseline, over the following 12 months utilizing multiple assumptions. These scenarios include a parallel shift involving changes to both short-term and long-term rates by an equal amount; a steeper yield curve involving holding short-term rates constant and increasing long-term rates; and a flatter yield curve involving increasing short-term rates and holding long-term rates constant or holding short-term rates constant and decreasing long-term rates. These scenarios consider many different factors, including:

•The impact on exposures as a result of instantaneous changes in interest rates from baseline rates.

•Forecasted balance sheet, as well as modeled prepayment and reinvestment behavior, but excluding assumptions about actions that could be taken by the Firm or its clients and customers in response to instantaneous rate changes. Mortgage prepayment assumptions are based on the interest rates used in the scenarios compared with underlying contractual rates, the time since origination, and other factors which are updated periodically based on historical experience. Deposit forecasts are a key assumption in the Firm's earnings-at-risk. The baseline reflects certain assumptions relating to the reversal of Quantitative Easing that are highly uncertain and require management judgment. Therefore, the actual amount of deposits held by the Firm, at any particular time, could be impacted by actions the Federal Reserve may take as part of monetary policy, including through the use of the Reverse Repurchase Facility. In addition, there are other factors that impact the amount of deposits held at the Firm such

as the level of loans across the industry and competition for deposits.

•The pricing sensitivity of deposits, known as deposit betas, represent the amount by which deposit rates paid could change upon a given change in market interest rates. As part of the Firm's continuous evaluation and periodic enhancements to its earnings-at-risk calculations, the Firm updated its model in the second quarter of 2023 to incorporate deposit repricing lags impacting both consumer and wholesale deposits. The model change incorporated observed pricing and customer behavior in both rising and falling interest rate environments. Actual deposit rates paid may differ from the modeled assumptions, primarily due to customer behavior and competition for deposits.

The Firm’s earnings-at-risk scenarios are periodically evaluated and enhanced in response to changes in the composition of the Firm’s balance sheet, changes in market conditions, improvements in the Firm’s simulation and other factors. While a relevant measure of the Firm’s interest rate exposure, the earnings-at-risk analysis does not represent a forecast of the Firm’s net interest income. Refer to Outlook on page 8 for additional information.

The Firm’s U.S. dollar sensitivities are presented in the table below.


(in billions)	September 30, 2023		(a)	December 31, 2022
Parallel shift:
+100 bps shift in rates	$	2.5		$	(2.0)
-100 bps shift in rates	(2.2)			2.4
Steeper yield curve:
+100 bps shift in long-term rates	0.6			0.8
-100 bps shift in short-term rates	(1.5)			3.2
Flatter yield curve:
+100 bps shift in short-term rates	1.9			(2.8)
-100 bps shift in long-term rates	(0.6)			(0.9)

(a)Reflects the impact of the aforementioned model update to incorporate deposit repricing lags. Prior periods have not been revised.

In the absence of the model update to incorporate deposit repricing lags in the second quarter of 2023, the Firm's U.S. dollar sensitivities as of September 30, 2023, would have been lower by $4.2 billion to the +100 basis points shift in short-term and parallel rate scenarios and higher by $4.4 billion to the -100 basis points shift in short-term and parallel rate scenarios.

In addition, the change in the Firm’s U.S. dollar sensitivities as of September 30, 2023 compared to December 31, 2022 reflected the impact of changes in the Firm’s balance sheet including the impact of the First Republic acquisition.

As of September 30, 2023, the Firm’s sensitivity to the +/-100 basis points parallel shift in rates is primarily the result of a greater impact from assets repricing compared to the impact of liabilities repricing.

The Firm continues to convert certain operations and to integrate products associated with the First Republic acquisition to align with the Firm’s business and operations. The Firm also continues to evaluate to which segments certain products associated with the First Republic acquisition, primarily deposits, should be allocated. Accordingly, earnings-at-risk results may be impacted in future periods.

The Firm’s non-U.S. dollar sensitivities are presented in the table below.


(in billions)	September 30, 2023		December 31, 2022
Parallel shift:
+100 bps shift in rates	$	0.9	$	0.7
-100 bps shift in rates	(0.9)		(0.6)
Steeper yield curve:
-100 bps shift in short-term rates	(0.8)		(0.6)
Flatter yield curve:
+100 bps shift in short-term rates	0.9		0.6

The results of the non-U.S. dollar interest rate scenario involving a steeper/flatter yield curve with long-term rates increasing/decreasing by 100 basis points and short-term rates staying at current levels were not material to the Firm’s earnings-at-risk at September 30, 2023 and December 31, 2022.

In addition to earnings-at-risk, the Firm also measures Economic Value Sensitivity (EVS). EVS stress tests the longer-term economic value of equity by measuring the sensitivity of the Firm’s current balance sheet, primarily retained loans, deposits, debt and investment securities as well as related hedges, under various interest rate scenarios. In accordance with the CTC structural interest rate risk policy, the Firm has established limits on EVS as a percentage of TCE.

Refer to Other Risk Measures on pages 136–138 of JPMorgan Chase’s 2022 Form 10-K for additional information.

Other sensitivity-based measures

The Firm quantifies the market risk of certain debt and equity and credit and funding-related exposures by assessing the potential impact on net revenue, other comprehensive income (“OCI”) and noninterest expense due to changes in relevant market variables. Refer to the predominant business activities that give rise to market risk on page 138 of JPMorgan Chase’s 2022 Form 10-K for additional information on the positions captured in other sensitivity-based measures.

The table below represents the potential impact to net revenue, OCI or noninterest expense for market risk-sensitive instruments that are not included in VaR or earnings-at-risk. Where appropriate, instruments used for hedging purposes are reported net of the positions being hedged. The sensitivities disclosed in the table below may not be representative of the actual gain or loss that would have been realized at September 30, 2023 and December 31, 2022, as the movement in market parameters across maturities may vary and are not intended to imply management’s expectation of future changes in these sensitivities.

Gain/(loss) (in millions)

September 30, 2023

December 31, 2022

Activity

Description

Sensitivity measure

Debt and equity(a)

Asset Management activities

Consists of seed capital and related hedges; fund co-investments(c); and certain deferred compensation and related hedges(d)

10% decline in market value

(73)

(56)

Other debt and equity

Consists of certain real estate-related fair value option elected loans, privately held equity and other investments held at fair value(c)

10% decline in market value

(1,053)

(1,046)

Credit- and funding-related exposures

Non-USD LTD cross-currency basis

Represents the basis risk on derivatives used to hedge the foreign exchange risk on the non-USD LTD(e)

1 basis point parallel tightening of cross currency basis

(10)

(12)

Non-USD LTD hedges foreign currency (“FX”) exposure

Primarily represents the foreign exchange revaluation on the fair value of the derivative hedges(e)

10% depreciation of currency

Derivatives – funding spread risk

Impact of changes in the spread related to derivatives FVA(c)

1 basis point parallel increase in spread

(3)

(4)

CVA - counterparty credit risk(b)

Credit risk component of CVA and associated hedges

10% credit spread widening

(1)

Fair value option elected liabilities – funding spread risk

Impact of changes in the spread related to fair value option elected liabilities DVA(e)

1 basis point parallel increase in spread

Fair value option elected liabilities – interest rate sensitivity

Interest rate sensitivity on fair value option elected liabilities resulting from a change in the Firm’s own credit spread(e)

1 basis point parallel increase in spread

—

Interest rate sensitivity related to risk management of changes in the Firm’s own credit spread on the fair value option elected liabilities noted above(c)

1 basis point parallel increase in spread

—

(a)Excludes equity securities without readily determinable fair values that are measured under the measurement alternative. Refer to Note 2 for additional information.

(b)In the first quarter of 2022, in line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also removed to maintain consistency. This exposure is now reflected in other sensitivity-based measures.

(c)Impact recognized through net revenue.

(d)Impact recognized through noninterest expense.

(e)Impact recognized through OCI.

COUNTRY RISK MANAGEMENT

The Firm, through its LOBs and Corporate, may be exposed to country risk resulting from financial, economic, political or other significant developments which adversely affect the value of the Firm’s exposures related to a particular country or set of countries. The Country Risk Management group actively monitors the various portfolios which may be impacted by these developments and measures the extent to which the Firm’s exposures are diversified given the Firm’s strategy and risk tolerance relative to a country.

Refer to pages 139-140 of JPMorgan Chase’s 2022 Form 10-K for a further discussion of the Firm’s country risk management.

Risk Reporting

The following table presents the Firm’s top 20 exposures by country (excluding the U.S.) as of September 30, 2023 and their comparative exposures as of December 31, 2022. The selection of countries represents the Firm’s largest total exposures by individual country, based on the Firm’s internal country risk management approach, and does not represent the Firm’s view of any existing or potentially adverse credit conditions. Country exposures may fluctuate from period to period due to client activity and market flows.

The decrease in exposure to Japan when compared to December 31, 2022, was driven by a reduction in cash placed with the central bank of Japan as a result of liquidity management activities undertaken by the Firm and client-driven activities.

The decrease in exposure to Australia when compared to December 31, 2022, was driven by a reduction in cash placed with the central bank of Australia in the first quarter of 2023 due to client-driven activities resulting from changes in interest rates. .

In addition, in the third quarter of 2023, the exposures to Germany and the United Kingdom decreased by $18.6 billion and $13.6 billion, respectively, when compared to June 30, 2023 primarily driven by decreases in cash placed with the central banks of those countries as a result of liquidity management activities undertaken by the Firm and client-driven activities.

The Firm continues to monitor its exposure to Russia which was approximately $400 million as of September 30, 2023 based on the Firm's internal country risk measurement framework. This amount excludes certain deposits placed on behalf of clients at the Depository Insurance Agency of Russia.


Top 20 country exposures (excluding the U.S.)(a)
(in billions)	September 30, 2023										December 31, 2022(f)
	Deposits with banks(b)		Lending(c)		Trading and investing(d)		Other(e)		Total exposure		Total exposure
Germany	$	77.0	$	11.6	$	4.5	$	0.7	$	93.8	$	93.2
United Kingdom	25.8		25.6		20.8		2.8		75.0		70.1
Japan	26.0		2.5		4.6		0.3		33.4		55.8
Canada	2.0		11.8		3.6		0.2		17.6		14.4
Brazil	2.6		4.8		7.8		—		15.2		17.8
China	5.1		5.6		3.5		—		14.2		13.7
Australia	5.2		6.4		2.4		—		14.0		25.7
France	0.4		10.0		1.7		1.1		13.2		18.1
Switzerland	5.4		3.9		1.4		0.7		11.4		15.3
Belgium	8.0		1.6		1.1		—		10.7		9.2
Singapore	1.6		3.6		3.6		0.2		9.0		9.9
India	1.3		3.6		3.5		0.2		8.6		9.0
South Korea	1.2		3.7		3.3		0.2		8.4		10.0
Netherlands	—		6.6		0.7		0.3		7.6		7.1
Mexico	0.7		4.3		1.9		—		6.9		5.4
Saudi Arabia	1.3		3.8		1.4		—		6.5		7.9
Spain	0.3		4.9		0.7		—		5.9		5.8
Italy	—		5.0		(0.3)		0.5		5.2		3.4
Luxembourg	0.8		2.4		1.3		—		4.5		5.3
Hong Kong SAR	2.4		1.0		0.9		0.2		4.5		4.5

(a)Country exposures presented in the table reflect 87% of total Firmwide non-U.S. exposure, where exposure is attributed to an individual country based on the Firm’s internal country risk management approach, as of both September 30, 2023 and December 31, 2022.

(b)Predominantly represents cash placed with central banks.

(c)Includes loans and accrued interest receivable, lending-related commitments (net of eligible collateral and the allowance for credit losses). Excludes intra-day and operating exposures, such as those from settlement and clearing activities.

(d)Includes market-making inventory, investment securities, and counterparty exposure on derivative and securities financings net of eligible collateral and hedging. Includes exposure from single reference entity (“single-name”), index and other multiple reference entity transactions for which one or more of the underlying reference entities is in a country listed in the above table.

(e)Includes physical commodities inventory and clearing house guarantee funds.

(f)The country rankings presented in the table as of December 31, 2022, are based on the country rankings of the corresponding exposures at September 30, 2023, not actual rankings of such exposures as of December 31, 2022.

CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM

JPMorgan Chase’s accounting policies and use of estimates are integral to understanding its reported results. The Firm’s most complex accounting estimates require management’s judgment to ascertain the appropriate carrying value of assets and liabilities. The Firm has established policies and control procedures intended to ensure that estimation methods, including any judgments made as part of such methods, are well-controlled, independently reviewed and applied consistently from period to period. The methods used and judgments made reflect, among other factors, the nature of the assets or liabilities and the related business and risk management strategies, which may vary across the Firm’s businesses and portfolios. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The Firm believes its estimates for determining the carrying value of its assets and liabilities are appropriate. The following is a brief description of the Firm’s critical accounting estimates involving significant judgments.

Allowance for credit losses

The Firm’s allowance for credit losses represents management’s estimate of expected credit losses over the remaining expected life of the Firm’s financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses generally consists of:

•The allowance for loan losses, which covers the Firm’s retained loan portfolios (scored and risk-rated).

•The allowance for lending-related commitments, which is reflected in accounts payable and other liabilities on the Consolidated balance sheets, and

•The allowance for credit losses on investment securities, which is reflected in investment securities on the Consolidated balance sheets.

The allowance for credit losses involves significant judgment on a number of matters including development and weighting of macroeconomic forecasts, incorporation of historical loss experience, assessment of risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life. Refer to Note 10 and Note 13 of JPMorgan Chase's 2022 Form 10-K for further information on these judgments as well as the Firm’s policies and methodologies used to determine the Firm’s allowance for credit losses; and refer to Allowance for credit losses on pages 80-82 and Note 13 of this Form 10-Q for further information.

One of the most significant judgments involved in estimating the Firm’s allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the eight-quarter forecast period within the Firm’s methodology. The eight-quarter forecast incorporates hundreds of macroeconomic variables ("MEVs") that are relevant for exposures across the Firm, with modeled credit losses being driven primarily by a subset of less than twenty

variables. The specific variables that have the greatest effect on the modeled losses of each portfolio vary by portfolio and geography.

•Key MEVs for the consumer portfolio include regional U.S. unemployment and HPI.

•Key MEVs for the wholesale portfolio include U.S. unemployment, U.S. real GDP, U.S. equity prices, U.S. interest rates, corporate credit spreads, oil prices, commercial real estate prices and HPI.

Changes in the Firm’s assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.

As a result of the First Republic acquisition, the Firm recorded an allowance for credit losses for the loans acquired and lending-related commitments assumed as of May 1, 2023. Given the differences in risk rating methodologies for the First Republic portfolio, and the ongoing integration of products and systems, the allowance for credit losses for the acquired wholesale portfolio was measured based on other facilities underwritten by the Firm with similar risk characteristics and not based on modeled estimates. As such, the First Republic wholesale portfolio is excluded from the modeled estimates sensitivity analysis below. The allowance for credit losses for predominantly all of the consumer portfolio was measured using the Firm’s modeled approach, as the consumer portfolio is predominantly residential real estate that has more commonly defined risk characteristics including loan to value ratio and credit score, and therefore is reflected in the sensitivity analysis below. Refer to Note 28 for additional information on the First Republic acquisition.

It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses. Changes in the factors and inputs considered may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others.

To consider the impact of a hypothetical alternate macroeconomic forecast, the Firm compared the modeled credit losses determined using its central and relative adverse macroeconomic scenarios, which are two of the five scenarios considered in estimating the allowances for loan losses and lending-related commitments. The central and relative adverse scenarios each included a full suite of MEVs, but differed in the levels, paths and peaks/troughs of those variables over the eight-quarter forecast period.

For example, compared to the Firm’s central scenario shown on page 80 and in Note 13, the Firm’s relative

adverse scenario assumes an elevated U.S. unemployment rate, averaging approximately 1.9% higher

over the eight-quarter forecast, with a peak difference of

2.7% in the third quarter of 2024; lower

U.S. real GDP with a slower recovery, remaining approximately 3.7% lower at the end of the eight-quarter forecast, with a peak difference of approximately 4.5% in the third quarter of 2024; and lower national HPI with a peak difference of approximately 16.2% in the second quarter of 2025.

This analysis is not intended to estimate expected future changes in the allowance for credit losses, for a number of reasons, including:

•The allowance as of September 30, 2023, reflects credit losses beyond those estimated under the central scenario due to the weight placed on the adverse scenarios.

•The impacts of changes in many MEVs are both interrelated and nonlinear, so the results of this analysis cannot be simply extrapolated for more severe changes in macroeconomic variables.

•Expectations of future changes in portfolio composition and borrower behavior can significantly affect the allowance for credit losses.

To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of September 30, 2023, the Firm compared the modeled estimates under its relative adverse scenario to its central scenario. Without considering offsetting or correlated effects in other qualitative components of the Firm’s allowance for credit losses, the comparison between these two scenarios for the exposures below reflect the following differences:

•An increase of approximately $950 million for residential real estate loans and lending-related commitments, including the First Republic portfolios

•An increase of approximately $3.1 billion for credit card loans

▪An increase of approximately $4.1 billion for wholesale loans and lending-related commitments, excluding the First Republic portfolios.

This analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall allowance for credit losses as it does not reflect any potential changes in other adjustments to the quantitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these modeled lifetime loss estimates based on then-current circumstances and conditions.

Recognizing that forecasts of macroeconomic conditions are inherently uncertain, particularly in light of the recent economic conditions, the Firm believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and appropriate for the period ended September 30, 2023.

Fair value

JPMorgan Chase carries a portion of its assets and liabilities at fair value. The majority of such assets and liabilities are measured at fair value on a recurring basis, including derivatives, structured note products and certain securities financing agreements. Certain assets and liabilities are measured at fair value on a nonrecurring basis, including certain mortgage, home equity and other loans, where the carrying value is based on the fair value of the underlying collateral.

Assets measured at fair value

The following table includes the Firm’s assets measured at fair value and the portion of such assets that are classified within level 3 of the fair value hierarchy. Refer to Note 2 for further information.


September 30, 2023 (in millions, except ratios)	Total assets at fair value		Total level 3 assets
Federal funds sold and securities purchased under resale agreements	$	344,193	$	—
Securities borrowed	68,046		—
Trading assets:
Trading–debt and equity instruments	534,881		2,922
Derivative receivables(a)	67,070		10,644
Total trading assets	601,951		13,566
AFS securities	197,119		60
Loans	38,808		3,683
MSRs	9,109		9,109
Other	13,171		888
Total assets measured at fair value on a recurring basis	1,272,397		27,306
Total assets measured at fair value on a nonrecurring basis	2,993		2,290
Total assets measured at fair value	$	1,275,390	$	29,596
Total Firm assets	$	3,898,333
Level 3 assets at fair value as a percentage of total Firm assets(a)			0.8		%
Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)			2.3		%

(a)For purposes of the table above, the derivative receivables total reflects the impact of netting adjustments; however, the $10.6 billion of derivative receivables classified as level 3 does not reflect the netting adjustment as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral.

Valuation

Estimating fair value requires the application of judgment. The type and level of judgment required is largely dependent on the amount of observable market information available to the Firm. For instruments valued using internally developed valuation models and other valuation techniques that use significant unobservable inputs and are therefore classified within level 3 of the fair value hierarchy, judgments used to estimate fair value are more significant than those required when estimating the fair value of instruments classified within levels 1 and 2.

In arriving at an estimate of fair value for an instrument within level 3, management must first determine the appropriate valuation model or other valuation technique to use. Second, the lack of observability of certain significant inputs requires management to assess relevant empirical data in deriving valuation inputs including, for example, transaction details, yield curves, interest rates, prepayment speeds, default rates, volatilities, correlations, prices (such as commodity, equity or debt prices), valuations of comparable instruments, foreign exchange rates and credit curves. Refer to Note 2 for a further discussion of the valuation of level 3 instruments, including unobservable inputs used.

For instruments classified in levels 2 and 3, management judgment must be applied to assess the appropriate level of valuation adjustments to reflect counterparty credit quality, the Firm’s creditworthiness, market funding rates, liquidity considerations, unobservable parameters, and for portfolios that meet specified criteria, the size of the net open risk position. The judgments made are typically affected by the type of product and its specific contractual terms, and the level of liquidity for the product or within the market as a whole. In periods of heightened market volatility and uncertainty judgments are further affected by the wider variation of reasonable valuation estimates, particularly for positions that are less liquid. Refer to Note 2 for a further discussion of valuation adjustments applied by the Firm.

Imprecision in estimating unobservable market inputs or other factors can affect the amount of gain or loss recorded for a particular position. Furthermore, while the Firm believes its valuation methods are appropriate and consistent with those of other market participants, the methods and assumptions used reflect management judgment and may vary across the Firm’s businesses and portfolios.

The Firm uses various methodologies and assumptions in the determination of fair value. The use of methodologies or assumptions different than those used by the Firm could result in a different estimate of fair value at the reporting date. Refer to Note 2 for a detailed discussion of the Firm’s valuation process and hierarchy, and its determination of fair value for individual financial instruments.

Credit card rewards liability

The credit card rewards liability was $12.9 billion and $11.3 billion at September 30, 2023 and December 31, 2022, respectively, and is recorded in accounts payable and other liabilities on the Consolidated balance sheets. The increase in the liability was predominantly driven by continued growth in rewards points earned on higher spend and promotional offers outpacing redemptions throughout 2023, and, to a lesser extent, adjustments to certain reward program terms in the second quarter of 2023. Refer to pages 151-152 of JPMorgan Chase’s 2022 Form 10-K for a description of the significant assumptions and sensitivities, associated with the Firm’s credit card rewards liability.

Income taxes

Refer to Income taxes on page 152 of JPMorgan Chase’s 2022 Form 10-K for a description of the significant assumptions, judgments and interpretations associated with the accounting for income taxes.

Goodwill impairment

Management applies significant judgment when testing goodwill for impairment. Refer to Goodwill impairment on page 151 of JPMorgan Chase’s 2022 Form 10-K for a description of the significant valuation judgments associated with goodwill impairment.

Refer to Note 15 for additional information on goodwill, including the goodwill impairment assessment as of September 30, 2023.

Litigation reserves

Refer to Note 26 of this Form 10-Q, and Note 30 of JPMorgan Chase’s 2022 Form 10-K for a description of the significant estimates and judgments associated with establishing litigation reserves.

ACCOUNTING AND REPORTING DEVELOPMENTS


Financial Accounting Standards Board (“FASB”) Standards Adopted since January 1, 2021
Standard	Summary of guidance	Effects on financial statements
Reference Rate Reform Issued March 2020 and updated January 2021 and December 2022	•Provides optional expedients and exceptions to current accounting guidance when financial instruments, hedge accounting relationships, and other transactions are amended due to reference rate reform.	•Issued and effective March 12, 2020. The January 7, 2021 and December 21, 2022 updates were effective when issued. •Refer to Accounting and Reporting Developments on page 153 of JPMorgan Chase's 2022 Form 10-K for further information.
FASB Standards Adopted since January 1, 2023
Standard	Summary of guidance	Effects on financial statements
Derivatives and Hedging: Fair Value Hedging – Portfolio Layer Method Issued March 2022	•Expands the current ability to hedge a portfolio of prepayable assets to allow more of the portfolio to be hedged. Non-prepayable assets can also be included in the same portfolio, thus increasing the size of the portfolio and the amount available to be hedged. •Clarifies the types of derivatives that can be used as hedges, and the balance sheet presentation and disclosure requirements for the hedge accounting adjustments. •Allows a one-time reclassification from HTM to AFS upon adoption.	•Adopted prospectively on January 1, 2023. •Refer to Note 1 for further information.
Financial Instruments – Credit Losses: Troubled Debt Restructurings and Vintage Disclosures Issued March 2022	•Eliminates existing accounting and disclosure requirements for Troubled Debt Restructurings, including the requirement to measure the allowance using a discounted cash flow methodology. •Requires disclosure of loan modifications for borrowers experiencing financial difficulty involving principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. •Requires disclosure of current period loan charge-off information by origination year. •May be adopted prospectively, or by using a modified retrospective method wherein the effect of adoption is reflected as an adjustment to retained earnings at the effective date.	•Adopted under the modified retrospective method on January 1, 2023. •Refer to Note 1 for further information.
FASB Standards Issued but not yet Adopted
Standard	Summary of guidance	Effects on financial statements
Investments - Equity Method and Joint Ventures: Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method Issued March 2023	•Expands the ability to elect proportional amortization for more types of tax-oriented investments (beyond low income housing tax credit investments) on a program-by-program basis. •May be adopted using a full retrospective method, or a modified retrospective method wherein the effect of adoption is reflected as an adjustment to retained earnings at the effective date.	•Required effective date: January 1, 2024. (a) •The Firm is currently evaluating the potential impact on the Consolidated Financial Statements.

(a) Early adoption is permitted.

FORWARD-LOOKING STATEMENTS

From time to time, the Firm has made and will make forward-looking statements. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipate,” “target,” “expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” or other words of similar meaning. Forward-looking statements provide JPMorgan Chase’s current expectations or forecasts of future events, circumstances, results or aspirations. JPMorgan Chase’s disclosures in this Form 10-Q contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Firm also may make forward-looking statements in its other documents filed or furnished with the SEC. In addition, the Firm’s senior management may make forward-looking statements orally to investors, analysts, representatives of the media and others.

All forward-looking statements are, by their nature, subject to risks and uncertainties, many of which are beyond the Firm’s control. JPMorgan Chase’s actual future results may differ materially from those set forth in its forward-looking statements. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ from those in the forward-looking statements:

•Local, regional and global business, economic and political conditions and geopolitical events, including geopolitical tensions and hostilities;

•Changes in laws, rules and regulatory requirements, including capital and liquidity requirements affecting the Firm’s businesses, and the ability of the Firm to address those requirements;

•Heightened regulatory and governmental oversight and scrutiny of JPMorgan Chase’s business practices, including dealings with retail customers;

•Changes in trade, monetary and fiscal policies and laws;

•Changes in the level of inflation;

•Changes in income tax laws, rules and regulations;

•Changes in FDIC assessments;

•Securities and capital markets behavior, including changes in market liquidity and volatility;

•Changes in investor sentiment or consumer spending or savings behavior;

•Ability of the Firm to manage effectively its capital and liquidity;

•Changes in credit ratings assigned to the Firm or its subsidiaries;

•Damage to the Firm’s reputation;

•Ability of the Firm to appropriately address social, environmental and sustainability concerns that may arise, including from its business activities;

•Ability of the Firm to deal effectively with an economic slowdown or other economic or market disruption, including, but not limited to, in the interest rate environment;

•Technology changes instituted by the Firm, its counterparties or competitors;

•The effectiveness of the Firm’s control agenda;

•Ability of the Firm to develop or discontinue products and services, and the extent to which products or services previously sold by the Firm require the Firm to incur liabilities or absorb losses not contemplated at their initiation or origination;

•Acceptance of the Firm’s new and existing products and services by the marketplace and the ability of the Firm to innovate and to increase market share;

•Ability of the Firm to attract and retain qualified and diverse employees;

•Ability of the Firm to control expenses;

•Competitive pressures;

•Changes in the credit quality of the Firm’s clients, customers and counterparties;

•Adequacy of the Firm’s risk management framework, disclosure controls and procedures and internal control over financial reporting;

•Adverse judicial or regulatory proceedings;

•Ability of the Firm to determine accurate values of certain assets and liabilities;

•Occurrence of natural or man-made disasters or calamities, including health emergencies, the spread of infectious diseases, epidemics or pandemics, an outbreak or escalation of hostilities or other geopolitical instabilities, the effects of climate change or extraordinary events beyond the Firm's control, and the Firm’s ability to deal effectively with disruptions caused by the foregoing;

•Ability of the Firm to maintain the security of its financial, accounting, technology, data processing and other operational systems and facilities;

•Ability of the Firm to withstand disruptions that may be caused by any failure of its operational systems or those of third parties;

•Ability of the Firm to effectively defend itself against cyberattacks and other attempts by unauthorized parties to access information of the Firm or its customers or to disrupt the Firm’s systems; and

•The other risks and uncertainties detailed in Part I, Item 1A: Risk Factors in JPMorgan Chase’s 2022 Form 10-K.

Any forward-looking statements made by or on behalf of the Firm speak only as of the date they are made, and JPMorgan Chase does not undertake to update any forward-looking statements. The reader should, however, consult any further disclosures of a forward-looking nature the Firm may make in any subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.

JPMorgan Chase & Co.

Consolidated statements of income (unaudited)


	Three months ended September 30,				Nine months ended September 30,
(in millions, except per share data)	2023		2022		2023		2022
Revenue
Investment banking fees	$	1,722	$	1,674	$	4,884	$	5,268
Principal transactions	6,210		5,383		20,735		15,478
Lending- and deposit-related fees	2,039		1,731		5,487		5,443
Asset management fees	3,904		3,495		11,143		10,664
Commissions and other fees	1,705		1,574		5,139		5,007

Investment securities losses	(669)		(959)		(2,437)		(1,506)
Mortgage fees and related income	414		314		913		1,152
Card income	1,209		1,086		3,537		3,194
Other income	614		900		4,913		2,930
Noninterest revenue	17,148		15,198		54,314		47,630
Interest income	44,556		25,611		123,204		59,753
Interest expense	21,830		8,093		57,988		13,235
Net interest income	22,726		17,518		65,216		46,518
Total net revenue	39,874		32,716		119,530		94,148

Provision for credit losses	1,384		1,537		6,558		4,101

Noninterest expense
Compensation expense	11,726		10,539		34,618		31,627
Occupancy expense	1,197		1,162		3,382		3,425
Technology, communications and equipment expense	2,386		2,366		6,837		7,102
Professional and outside services	2,620		2,481		7,629		7,522
Marketing	1,126		1,017		3,293		2,818
Other expense	2,702		1,613		6,927		4,624
Total noninterest expense	21,757		19,178		62,686		57,118
Income before income tax expense	16,733		12,001		50,286		32,929
Income tax expense	3,582		2,264		10,041		6,261
Net income	$	13,151	$	9,737	$	40,245	$	26,668
Net income applicable to common stockholders	$	12,685	$	9,255	$	38,889	$	25,295
Net income per common share data
Basic earnings per share	$	4.33	$	3.13	$	13.20	$	8.53
Diluted earnings per share	4.33		3.12		13.18		8.51

Weighted-average basic shares	2,927.5		2,961.2		2,946.6		2,966.8
Weighted-average diluted shares	2,932.1		2,965.4		2,951.0		2,970.9

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

JPMorgan Chase & Co.

Consolidated statements of comprehensive income (unaudited)


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Net income	$	13,151	$	9,737	$	40,245	$	26,668
Other comprehensive income/(loss), after–tax
Unrealized gains/(losses) on investment securities	(1,950)		(2,145)		1,019		(13,629)
Translation adjustments, net of hedges	(340)		(581)		(73)		(1,322)
Fair value hedges	(5)		38		(15)		199
Cash flow hedges	(583)		(1,698)		(282)		(5,837)
Defined benefit pension and OPEB plans	(21)		(1,004)		(82)		(917)
DVA on fair value option elected liabilities	85		625		(330)		2,456
Total other comprehensive income/(loss), after–tax	(2,814)		(4,765)		237		(19,050)
Comprehensive income	$	10,337	$	4,972	$	40,482	$	7,618

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

JPMorgan Chase & Co.

Consolidated balance sheets (unaudited)


(in millions, except share data)	September 30, 2023		December 31, 2022
Assets
Cash and due from banks	$	24,921	$	27,697
Deposits with banks	486,448		539,537
Federal funds sold and securities purchased under resale agreements (included $344,193 and $311,883 at fair value)	350,059		315,592
Securities borrowed (included $68,046 and $70,041 at fair value)	188,279		185,369
Trading assets (included assets pledged of $132,750 and $93,687)	601,993		453,799
Available-for-sale securities (amortized cost of $206,500 and $216,188; included assets pledged of $12,548 and $9,158)	197,119		205,857
Held-to-maturity securities	388,261		425,305
Investment securities, net of allowance for credit losses	585,380		631,162
Loans (included $38,808 and $42,079 at fair value)	1,310,059		1,135,647
Allowance for loan losses	(21,946)		(19,726)
Loans, net of allowance for loan losses	1,288,113		1,115,921
Accrued interest and accounts receivable	127,752		125,189
Premises and equipment	29,677		27,734
Goodwill, MSRs and other intangible assets	64,910		60,859
Other assets (included $14,168 and $14,921 at fair value and assets pledged of $5,701 and $7,998)	150,801		182,884
Total assets(a)	$	3,898,333	$	3,665,743
Liabilities
Deposits (included $65,006 and $28,620 at fair value)	$	2,379,526	$	2,340,179
Federal funds purchased and securities loaned or sold under repurchase agreements (included $211,571 and $151,999 at fair value)	268,750		202,613
Short-term borrowings (included $19,289 and $15,792 at fair value)	45,470		44,027
Trading liabilities	207,457		177,976
Accounts payable and other liabilities (included $4,492 and $7,038 at fair value)	292,070		300,141
Beneficial interests issued by consolidated VIEs (included $66 and $5 at fair value)	24,896		12,610
Long-term debt (included $78,357 and $72,281 at fair value)	362,793		295,865
Total liabilities(a)	3,580,962		3,373,411
Commitments and contingencies (refer to Notes 24, 25 and 26)
Stockholders’ equity
Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,740,375 shares)	27,404		27,404
Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)	4,105		4,105
Additional paid-in capital	89,899		89,044
Retained earnings	327,044		296,456
Accumulated other comprehensive losses	(17,104)		(17,341)
Treasury stock, at cost (1,213,925,554 and 1,170,676,094 shares)	(113,977)		(107,336)
Total stockholders’ equity	317,371		292,332
Total liabilities and stockholders’ equity	$	3,898,333	$	3,665,743

(a) The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at September 30, 2023 and December 31, 2022. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 14 for a further discussion.


(in millions)	September 30, 2023		December 31, 2022
Assets
Trading assets	$	1,780	$	2,151
Loans	38,176		34,411
All other assets	593		550
Total assets	$	40,549	$	37,112
Liabilities
Beneficial interests issued by consolidated VIEs	$	24,896	$	12,610
All other liabilities	244		279
Total liabilities	$	25,140	$	12,889

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

JPMorgan Chase & Co.

Consolidated statements of changes in stockholders’ equity (unaudited)


	Three months ended September 30,				Nine months ended September 30,
(in millions, except per share data)	2023		2022		2023		2022
Preferred stock
Balance at the beginning of the period	$	27,404	$	32,838	$	27,404	$	34,838
Issuance	—		—		—		—
Redemption	—		—		—		(2,000)
Balance at September 30	27,404		32,838		27,404		32,838

Common stock
Balance at the beginning and end of the period	4,105		4,105		4,105		4,105

Additional paid-in capital
Balance at the beginning of the period	89,578		88,614		89,044		88,415
Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects	321		251		855		450

Balance at September 30	89,899		88,865		89,899		88,865

Retained earnings
Balance at the beginning of the period	317,359		282,445		296,456		272,268
Cumulative effect of change in accounting principles	—		—		449		—
Net income	13,151		9,737		40,245		26,668
Dividends declared:
Preferred stock	(386)		(432)		(1,115)		(1,239)
Common stock ($1.05 and $1.00 per share and $3.05 and $3.00 per share, respectively)	(3,080)		(2,974)		(8,991)		(8,921)
Balance at September 30	327,044		288,776		327,044		288,776

Accumulated other comprehensive income/(loss)
Balance at the beginning of the period	(14,290)		(14,369)		(17,341)		(84)
Other comprehensive income/(loss), after-tax	(2,814)		(4,765)		237		(19,050)
Balance at September 30	(17,104)		(19,134)		(17,104)		(19,134)

Treasury stock, at cost
Balance at the beginning of the period	(111,640)		(107,490)		(107,336)		(105,415)
Repurchase	(2,387)		—		(7,658)		(3,122)
Reissuance	50		58		1,017		1,105
Balance at September 30	(113,977)		(107,432)		(113,977)		(107,432)

Total stockholders’ equity	$	317,371	$	288,018	$	317,371	$	288,018

Effective January 1, 2023, the Firm adopted the Financial Instruments – Credit Losses: Troubled Debt Restructurings and Derivatives and Hedging: Fair Value Hedging – Portfolio Layer Method accounting guidance. Refer to Note 1 for further information.

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

JPMorgan Chase & Co.

Consolidated statements of cash flows (unaudited)


	Nine months ended September 30,
(in millions)	2023		2022
Operating activities
Net income	$	40,245	$	26,668
Adjustments to reconcile net income to net cash used in operating activities:
Provision for credit losses	6,558		4,101
Depreciation and amortization	4,175		5,380
Deferred tax (benefit)/expense	(4,544)		(3,455)
Bargain purchase gain associated with the First Republic acquisition	(2,812)		—
Other	3,611		3,815
Originations and purchases of loans held-for-sale	(83,534)		(131,589)
Proceeds from sales, securitizations and paydowns of loans held-for-sale	83,169		149,420
Net change in:
Trading assets	(151,151)		(114,006)
Securities borrowed	(2,852)		12,347
Accrued interest and accounts receivable	(166)		(41,621)
Other assets	39,371		(17,114)
Trading liabilities	30,787		34,950
Accounts payable and other liabilities	(11,955)		75,961
Other operating adjustments	1,841		1,040
Net cash provided by/(used in) operating activities	(47,257)		5,897
Investing activities
Net change in:
Federal funds sold and securities purchased under resale agreements	(34,101)		(40,741)
Held-to-maturity securities:
Proceeds from paydowns and maturities	34,152		33,542
Purchases	(4,141)		(29,329)
Available-for-sale securities:
Proceeds from paydowns and maturities	39,160		30,646
Proceeds from sales	82,922		62,252
Purchases	(82,075)		(75,204)
Proceeds from sales and securitizations of loans held-for-investment	34,541		36,199
Other changes in loans, net	(60,094)		(96,151)


Net cash used in the First Republic acquisition	(9,920)		—
All other investing activities, net	(12,683)		(7,503)
Net cash used in investing activities	(12,239)		(86,289)
Financing activities
Net change in:
Deposits	(43,083)		(44,336)
Federal funds purchased and securities loaned or sold under repurchase agreements	66,050		45,910
Short-term borrowings	1,303		(4,813)
Beneficial interests issued by consolidated VIEs	10,823		2,042
Proceeds from long-term borrowings	42,817		68,944
Payments of long-term borrowings	(48,757)		(37,470)

Redemption of preferred stock	—		(2,000)
Treasury stock repurchased	(7,549)		(3,162)
Dividends paid	(10,037)		(10,186)
All other financing activities, net	(1,241)		1,158
Net cash provided by financing activities	10,326		16,087
Effect of exchange rate changes on cash and due from banks and deposits with banks	(6,695)		(32,342)
Net decrease in cash and due from banks and deposits with banks	(55,865)		(96,647)
Cash and due from banks and deposits with banks at the beginning of the period	567,234		740,834
Cash and due from banks and deposits with banks at the end of the period	$	511,369	$	644,187
Cash interest paid	$	55,775	$	11,075
Cash income taxes paid, net	5,541		226

The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

100

Refer to the Glossary of Terms and Acronyms on pages 200-205 for definitions of terms and acronyms used throughout the Notes to Consolidated Financial Statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

Note 1 – Basis of presentation

JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the U.S., with operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. On May 1, 2023, JPMorgan Chase acquired certain assets and assumed certain liabilities of First Republic Bank (the “First Republic acquisition”) from the Federal Deposit Insurance Corporation (“FDIC”). The Firm continues to convert certain operations, and to integrate clients, products and services associated with the First Republic acquisition, to align with the Firm’s businesses and operations. The Firm also continues to evaluate to which segments certain clients, products and services, primarily deposits, should be allocated. Accordingly, reporting classifications and allocations may change in future periods, including across the Firm's segments. Refer to Note 27 for a further discussion of the Firm’s business segments and Note 28 for additional information on the First Republic acquisition.

The accounting and financial reporting policies of JPMorgan Chase and its subsidiaries conform to U.S. GAAP. Additionally, where applicable, the policies conform to the accounting and reporting guidelines prescribed by regulatory authorities.

The unaudited Consolidated Financial Statements prepared in conformity with U.S. GAAP require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expense, and the disclosures of contingent assets and liabilities. Actual results could be different from these estimates. In the opinion of management, all normal, recurring adjustments have been included such that this interim financial information is fairly stated.

These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, and related notes thereto, included in JPMorgan Chase’s 2022 Form 10-K.

Certain amounts reported in prior periods have been revised to conform with the current presentation.

Consolidation

The Consolidated Financial Statements include the accounts of JPMorgan Chase and other entities in which the Firm has a controlling financial interest. All material intercompany balances and transactions have been eliminated.

Assets held for clients in an agency or fiduciary capacity by the Firm are not assets of JPMorgan Chase and are not included on the Consolidated balance sheets.

The Firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity.

Refer to Notes 1 and 14 of JPMorgan Chase’s 2022 Form 10-K for a further description of JPMorgan Chase’s accounting policies regarding consolidation.

Offsetting assets and liabilities

U.S. GAAP permits entities to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net basis on the Consolidated balance sheets when a legally enforceable master netting agreement exists. U.S. GAAP also permits securities financing balances to be presented on a net basis when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances where it has determined that the specified conditions are met. Refer to Note 1 of JPMorgan Chase’s 2022 Form 10-K for further information on offsetting assets and liabilities.

Accounting standards adopted January 1, 2023

Derivatives and Hedging: Fair Value Hedging – Portfolio Layer Method

The adoption of this guidance expanded the ability to hedge a portfolio of prepayable assets to allow more of the portfolio to be hedged. Non-prepayable assets can also be included in the same portfolio, thus increasing the size of the portfolio and the amount available to be hedged. This guidance also clarified the types of derivatives that can be used as hedges, and the balance sheet presentation and disclosure requirements for the hedge accounting adjustments. As permitted by the guidance, the Firm elected to transfer HTM securities to AFS and designate those securities in a portfolio layer method hedge upon adoption. The adoption impact of the transfer on retained earnings was not material.

Refer to Note 5 and Note 10 for additional information.

Financial Instruments – Credit Losses: Troubled Debt Restructurings and Vintage Disclosures

The adoption of this guidance eliminated the accounting and disclosure requirements for TDRs, including the requirement to measure the allowance using a discounted cash flow (“DCF”) methodology, and allowed the option of a non-DCF portfolio-based approach for modified loans to troubled borrowers. If a DCF methodology is still applied for these modified loans, the discount rate must be the post-

101

modification effective interest rate, instead of the pre-modification effective interest rate.

The Firm elected to apply its non-DCF, portfolio-based allowance approach for modified loans to troubled borrowers for all portfolios except collateral-dependent loans and nonaccrual risk-rated loans which the Firm elected to continue applying a DCF methodology. Refer to Note 13 of JPMorgan Chase’s 2022 Form 10-K for a description of the portfolio-based allowance approach and the asset-specific allowance approach.

This guidance was adopted under the modified retrospective method which resulted in a net decrease to the allowance for credit losses of $587 million and an increase to retained earnings of $446 million, after-tax, predominantly driven by residential real estate and credit card.

The adoption of this guidance eliminated the disclosure requirements for TDRs including the requirement to assess whether a modification is reasonably expected or involves a concession. The new guidance requires disclosure for loan modifications to borrowers experiencing financial difficulty consisting of principal forgiveness, interest rate reduction, other-than-insignificant payment delay, term extension or a combination of these modifications. The Firm has defined these types of modifications as financial difficulty modifications ("FDMs"). As a result of the elimination of the requirement to assess whether a modification is reasonably expected or involves a concession, the population of loans considered FDMs differs from the population previously considered TDRs. This guidance also requires disclosure of current period gross charge-offs by vintage origination year.

Refer to Note 12 for further information.

102

Note 2 – Fair value measurement

Refer to Note 2 of JPMorgan Chase’s 2022 Form 10-K for a discussion of the Firm’s valuation methodologies for assets, liabilities and lending-related commitments measured at fair value and the fair value hierarchy.

103

The following table presents the assets and liabilities reported at fair value as of September 30, 2023 and December 31, 2022, by major product category and fair value hierarchy.


Assets and liabilities measured at fair value on a recurring basis
	Fair value hierarchy						Derivative netting adjustments(f)

September 30, 2023 (in millions)	Level 1		Level 2		Level 3				Total fair value
Federal funds sold and securities purchased under resale agreements	$	—	$	344,193	$	—	$	—	$	344,193
Securities borrowed	—		68,046		—		—		68,046
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies(a)	—		88,624		779		—		89,403
Residential – nonagency	—		2,164		5		—		2,169
Commercial – nonagency	—		1,677		13		—		1,690
Total mortgage-backed securities	—		92,465		797		—		93,262
U.S. Treasury, GSEs and government agencies(a)	123,392		9,100		—		—		132,492
Obligations of U.S. states and municipalities	—		6,265		9		—		6,274
Certificates of deposit, bankers’ acceptances and commercial paper	—		2,760		—		—		2,760
Non-U.S. government debt securities	34,373		54,850		151		—		89,374
Corporate debt securities	—		32,734		652		—		33,386
Loans	—		7,098		1,048		—		8,146
Asset-backed securities	—		2,960		6		—		2,966
Total debt instruments	157,765		208,232		2,663		—		368,660
Equity securities	135,880		976		151		—		137,007
Physical commodities(b)	2,657		10,409		5		—		13,071
Other	—		16,040		103		—		16,143
Total debt and equity instruments(c)	296,302		235,657		2,922		—		534,881
Derivative receivables:
Interest rate	5,929		280,613		4,399		(259,844)		31,097
Credit	—		10,418		1,198		(10,298)		1,318
Foreign exchange	275		235,721		1,320		(214,708)		22,608
Equity	—		54,647		3,531		(52,458)		5,720
Commodity	—		17,272		196		(11,141)		6,327
Total derivative receivables	6,204		598,671		10,644		(548,449)		67,070
Total trading assets(d)	302,506		834,328		13,566		(548,449)		601,951
Available-for-sale securities:
Mortgage-backed securities:
U.S. GSEs and government agencies(a)	6		82,511		—		—		82,517
Residential – nonagency	—		3,578		—		—		3,578
Commercial – nonagency	—		2,558		—		—		2,558
Total mortgage-backed securities	6		88,647		—		—		88,653
U.S. Treasury and government agencies	53,241		118		—		—		53,359
Obligations of U.S. states and municipalities	—		19,662		—		—		19,662
Non-U.S. government debt securities	18,196		8,317		—		—		26,513
Corporate debt securities	—		134		60		—		194
Asset-backed securities:
Collateralized loan obligations	—		5,703		—		—		5,703
Other(a)	—		3,035		—		—		3,035
Total available-for-sale securities	71,443		125,616		60		—		197,119
Loans(e)	—		35,125		3,683		—		38,808
Mortgage servicing rights	—		—		9,109		—		9,109
Other assets(d)	6,054		6,229		888		—		13,171
Total assets measured at fair value on a recurring basis	$	380,003	$	1,413,537	$	27,306	$	(548,449)	$	1,272,397
Deposits	$	—	$	63,154	$	1,852	$	—	$	65,006
Federal funds purchased and securities loaned or sold under repurchase agreements	—		211,571		—		—		211,571
Short-term borrowings	—		17,344		1,945		—		19,289
Trading liabilities:
Debt and equity instruments(c)	132,323		33,130		41		—		165,494
Derivative payables:
Interest rate	3,880		268,415		5,510		(261,831)		15,974
Credit	—		10,728		647		(10,493)		882
Foreign exchange	269		233,348		807		(221,519)		12,905
Equity	—		57,499		4,830		(55,424)		6,905
Commodity	—		17,238		319		(12,260)		5,297
Total derivative payables	4,149		587,228		12,113		(561,527)		41,963
Total trading liabilities	136,472		620,358		12,154		(561,527)		207,457
Accounts payable and other liabilities	2,999		1,430		63		—		4,492
Beneficial interests issued by consolidated VIEs	—		66		—		—		66
Long-term debt	—		53,510		24,847		—		78,357
Total liabilities measured at fair value on a recurring basis	$	139,471	$	967,433	$	40,861	$	(561,527)	$	586,238

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	Fair value hierarchy						Derivative netting adjustments(f)

December 31, 2022 (in millions)	Level 1		Level 2		Level 3				Total fair value
Federal funds sold and securities purchased under resale agreements	$	—	$	311,883	$	—	$	—	$	311,883
Securities borrowed	—		70,041		—		—		70,041
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies(a)	—		68,162		759		—		68,921
Residential – nonagency	—		2,498		5		—		2,503
Commercial – nonagency	—		1,448		7		—		1,455
Total mortgage-backed securities	—		72,108		771		—		72,879
U.S. Treasury, GSEs and government agencies(a)	61,191		8,546		—		—		69,737
Obligations of U.S. states and municipalities	—		6,608		7		—		6,615
Certificates of deposit, bankers’ acceptances and commercial paper	—		2,009		—		—		2,009
Non-U.S. government debt securities	18,213		48,429		155		—		66,797
Corporate debt securities	—		25,626		463		—		26,089
Loans	—		5,744		759		—		6,503
Asset-backed securities	—		2,536		23		—		2,559
Total debt instruments	79,404		171,606		2,178		—		253,188
Equity securities	82,483		2,060		665		—		85,208
Physical commodities(b)	9,595		16,673		2		—		26,270
Other	—		18,146		64		—		18,210
Total debt and equity instruments(c)	171,482		208,485		2,909		—		382,876
Derivative receivables:
Interest rate	3,390		292,956		4,069		(271,996)		28,419
Credit	—		9,722		607		(9,239)		1,090
Foreign exchange	169		240,207		1,203		(218,214)		23,365
Equity	—		57,485		4,428		(52,774)		9,139
Commodity	—		24,982		375		(16,490)		8,867
Total derivative receivables	3,559		625,352		10,682		(568,713)		70,880
Total trading assets(d)	175,041		833,837		13,591		(568,713)		453,756
Available-for-sale securities:
Mortgage-backed securities:
U.S. GSEs and government agencies(a)	3		71,500		—		—		71,503
Residential – nonagency	—		4,620		—		—		4,620
Commercial – nonagency	—		1,958		—		—		1,958
Total mortgage-backed securities	3		78,078		—		—		78,081
U.S. Treasury and government agencies	92,060		—		—		—		92,060
Obligations of U.S. states and municipalities	—		6,786		—		—		6,786
Non-U.S. government debt securities	10,591		9,105		—		—		19,696
Corporate debt securities	—		118		239		—		357
Asset-backed securities:
Collateralized loan obligations	—		5,792		—		—		5,792
Other	—		3,085		—		—		3,085
Total available-for-sale securities	102,654		102,964		239		—		205,857
Loans(e)	—		40,661		1,418		—		42,079
Mortgage servicing rights	—		—		7,973		—		7,973
Other assets(d)	7,544		6,065		405		—		14,014
Total assets measured at fair value on a recurring basis	$	285,239	$	1,365,451	$	23,626	$	(568,713)	$	1,105,603
Deposits	$	—	$	26,458	$	2,162	$	—	$	28,620
Federal funds purchased and securities loaned or sold under repurchase agreements	—		151,999		—		—		151,999
Short-term borrowings	—		14,391		1,401		—		15,792
Trading liabilities:
Debt and equity instruments(c)	98,719		28,032		84		—		126,835
Derivative payables:
Interest rate	2,643		284,280		3,368		(274,321)		15,970
Credit	—		9,377		594		(9,217)		754
Foreign exchange	160		250,647		714		(232,665)		18,856
Equity	—		57,649		4,812		(53,657)		8,804
Commodity	—		22,748		521		(16,512)		6,757
Total derivative payables	2,803		624,701		10,009		(586,372)		51,141
Total trading liabilities	101,522		652,733		10,093		(586,372)		177,976
Accounts payable and other liabilities	5,702		1,283		53		—		7,038
Beneficial interests issued by consolidated VIEs	—		5		—		—		5
Long-term debt	—		48,189		24,092		—		72,281
Total liabilities measured at fair value on a recurring basis	$	107,224	$	895,058	$	37,801	$	(586,372)	$	453,711

(a)At September 30, 2023 and December 31, 2022, included total U.S. GSE obligations of $90.8 billion and $73.8 billion, respectively, which were mortgage-related.

(b)Physical commodities inventories are generally accounted for at the lower of cost or net realizable value. “Net realizable value” is a term defined in U.S. GAAP as not exceeding fair value less costs to sell (“transaction costs”). Transaction costs for the Firm’s physical commodities inventories are either not applicable or immaterial to the value of the inventory. Therefore, net realizable value approximates fair value for the Firm’s physical commodities inventories. When fair value hedging has been applied (or when net realizable value is below cost), the carrying value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in fair value. Refer to Note 5 for a further discussion of the Firm’s hedge accounting relationships. To provide consistent fair value disclosure information, all physical commodities inventories have been included in each period presented.

105

(c)Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions).

(d)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not required to be classified in the fair value hierarchy. At September 30, 2023 and December 31, 2022, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were $1.0 billion and $950 million, respectively. Included in these balances at September 30, 2023 and December 31, 2022, were trading assets of $42 million and $43 million, respectively, and other assets of $997 million and $907 million, respectively.

(e)At September 30, 2023 and December 31, 2022, included $9.4 billion and $9.7 billion, respectively, of residential first-lien mortgages, and $6.2 billion and $6.8 billion, respectively, of commercial first-lien mortgages. Residential mortgage loans include conforming mortgage loans originated with the intent to sell to U.S. GSEs and government agencies of $3.7 billion and $2.4 billion, respectively.

(f)As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral.

Level 3 valuations

Refer to Note 2 of JPMorgan Chase’s 2022 Form 10-K for further information on the Firm’s valuation process and a detailed discussion of the determination of fair value for individual financial instruments.

The following table presents the Firm’s primary level 3 financial instruments, the valuation techniques used to measure the fair value of those financial instruments, the significant unobservable inputs, the range of values for those inputs and the weighted or arithmetic averages of such inputs. While the determination to classify an instrument within level 3 is based on the significance of the unobservable inputs to the overall fair value measurement, level 3 financial instruments typically include observable components (that is, components that are actively quoted and can be validated to external sources) in addition to the unobservable components. The level 1 and/or level 2 inputs are not included in the table. In addition, the Firm manages the risk of the observable components of level 3 financial instruments using securities and derivative positions that are classified within levels 1 or 2 of the fair value hierarchy.

The range of values presented in the table is representative of the highest and lowest level input used to value the significant groups of instruments within a product/instrument classification. Where provided, the weighted averages of the input values presented in the table are calculated based on the fair value of the instruments that the input is being used to value.

In the Firm’s view, the input range, weighted and arithmetic average values do not reflect the degree of input uncertainty or an assessment of the reasonableness of the Firm’s estimates and assumptions. Rather, they reflect the characteristics of the various instruments held by the Firm and the relative distribution of instruments within the range of characteristics. For example, two option contracts may have similar levels of market risk exposure and valuation uncertainty, but may have significantly different implied volatility levels because the option contracts have different underlyings, tenors, or strike prices. The input range and weighted average values will therefore vary from period-to-period and parameter-to-parameter based on the characteristics of the instruments held by the Firm at each balance sheet date.

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Level 3 inputs(a)
September 30, 2023
Product/Instrument	Fair value (in millions)		Principal valuation technique	Unobservable inputs(g)	Range of input values		Average(i)
Residential mortgage-backed securities and loans(b)	$	1,664	Discounted cash flows	Yield	0%	80%		8%
				Prepayment speed	3%	11%		8%
				Conditional default rate	0%	5%		0%
				Loss severity	0%	110%		3%
Commercial mortgage-backed securities and loans(c)	2,255		Market comparables	Price	$0	$100		$81
Corporate debt securities	712		Market comparables	Price	$0	$242		$99
Loans(d)	1,609		Market comparables	Price	$0	$118		$75
Non-U.S. government debt securities	151		Market comparables	Price	$6	$102		$89
Net interest rate derivatives	(1,101)		Option pricing	Interest rate volatility	26bps	814bps		136bps
				Interest rate spread volatility	37bps	77bps		64bps
				Bermudan switch value	0%	52%		18%
				Interest rate correlation	(85)%	90%		15%
				IR-FX correlation	(35)%	60%		3%
	(10)		Discounted cash flows	Prepayment speed	0%	20%		5%
Net credit derivatives	520		Discounted cash flows	Credit correlation	35%	65%		49%
				Credit spread	0bps	13,323bps		340bps
				Recovery rate	10%	90%		41%
	31		Market comparables	Price	$0	$115		$73
Net foreign exchange derivatives	582		Option pricing	IR-FX correlation	(40)%	60%		20%
	(69)		Discounted cash flows	Prepayment speed	11%			11%
				Interest rate curve	0%	14%		6%
Net equity derivatives	(1,299)		Option pricing	Forward equity price(h)	83%	162%		102%
				Equity volatility	3%	203%		32%
				Equity correlation	17%	100%		57%
				Equity-FX correlation	(80)%	59%		(30)%
				Equity-IR correlation	10%	20%		18%
Net commodity derivatives	(123)		Option pricing	Oil commodity forward	37 $/BBL	273 $/BBL		155 $/BBL
				Natural gas commodity forward	1 $/MMBTU	8 $/MMBTU		5 $/MMBTU
				Commodity volatility	5%	23%		14%
				Commodity correlation	(35)%	80%		23%
MSRs	9,109		Discounted cash flows	Refer to Note 15
Long-term debt, short-term borrowings, and deposits(e)	27,295		Option pricing	Interest rate volatility	26bps	814bps		136bps
				Bermudan switch value	0%	52%		18%
				Interest rate correlation	(85)%	90%		15%
				IR-FX correlation	(35)%	60%		3%
				Equity correlation	17%	100%		57%
				Equity-FX correlation	(80)%	59%		(30)%
				Equity-IR correlation	10%	20%		18%
	1,349		Discounted cash flows	Credit correlation	35%	65%		49%
				Yield	5%	20%		13%
				Conditional default rate	0%	1%		1%
				Loss severity	0%	100%		50%
Other level 3 assets and liabilities, net(f)	1,058

(a)The categories presented in the table have been aggregated based upon the product type, which may differ from their classification on the Consolidated balance sheets. Furthermore, the inputs presented for each valuation technique in the table are, in some cases, not applicable to every instrument valued using the technique as the characteristics of the instruments can differ.

(b)Comprises U.S. GSE and government agency securities of $779 million, nonagency securities of $5 million and non-trading loans of $880 million.

(c)Comprises nonagency securities of $13 million, trading loans of $72 million and non-trading loans of $2.2 billion.

(d)Comprises trading loans of $976 million and non-trading loans of $633 million.

(e)Long-term debt, short-term borrowings and deposits include structured notes issued by the Firm that are financial instruments that typically contain embedded derivatives. The estimation of the fair value of structured notes includes the derivative features embedded within the instrument. The significant unobservable inputs are broadly consistent with those presented for derivative receivables.

(f)Includes equity securities of $830 million including $680 million in Other assets, for which quoted prices are not readily available and the fair value is generally based on internal valuation techniques such as EBITDA multiples and comparable analysis. All other level 3 assets and liabilities are insignificant both individually and in aggregate.

(g)Price is a significant unobservable input for certain instruments. When quoted market prices are not readily available, reliance is generally placed on price-based internal valuation techniques. The price input is expressed assuming a par value of $100.

(h)Forward equity price is expressed as a percentage of the current equity price.

(i)Amounts represent weighted averages except for derivative related inputs where arithmetic averages are used.

107

Changes in and ranges of unobservable inputs

Refer to Note 2 of JPMorgan Chase’s 2022 Form 10-K for a discussion of the impact on fair value of changes in unobservable inputs and the relationships between unobservable inputs as well as a description of attributes of the underlying instruments and external market factors that affect the range of inputs used in the valuation of the Firm’s positions.

Changes in level 3 recurring fair value measurements

The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the three months ended September 30, 2023 and 2022. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable inputs to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. Also, the Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm’s risk management activities related to such level 3 instruments.

108


	Fair value measurements using significant unobservable inputs
Three months ended September 30, 2023 (in millions)	Fair value at July 1, 2023		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2023			Change in unrealized gains/(losses) related to financial instruments held at September 30, 2023
						Purchases(g)		Sales				Settlements(h)
Assets:(a)
Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	—	$	—		$	—	$	—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies	706		(4)			118		(20)				(21)		—		—			779		(4)
Residential – nonagency	5		—			—		—				—		—		—			5		—
Commercial – nonagency	6		6			1		—				—		—		—			13		7
Total mortgage-backed securities	717		2			119		(20)				(21)		—		—			797		3
Obligations of U.S. states and municipalities	6		—			—		—				—		3		—			9		—
Non-U.S. government debt securities	199		9			16		(53)				—		—		(20)			151		18
Corporate debt securities	522		15			191		(56)				(1)		8		(27)			652		4
Loans	1,105		(56)			161		(172)				(12)		108		(86)			1,048		(56)
Asset-backed securities	14		1			—		(8)				—		—		(1)			6		1
Total debt instruments	2,563		(29)			487		(309)				(34)		119		(134)			2,663		(30)
Equity securities	631		2			26		(100)				(442)		41		(7)			151		7
Physical commodities	6		(2)			1		—				—		—		—			5		(2)
Other	113		(3)			9		—				(15)		—		(1)			103		(2)
Total trading assets – debt and equity instruments	3,313		(32)		(c)	523		(409)				(491)		160		(142)			2,922		(27)		(c)
Net derivative receivables:(b)
Interest rate	(1,122)		(162)			79		(127)				349		(56)		(72)			(1,111)		(267)
Credit	689		11			2		—				(150)		(4)		3			551		11
Foreign exchange	389		88			55		(18)				(5)		7		(3)			513		51
Equity	(1,881)		1,013			145		(222)				(385)		70		(39)			(1,299)		1,060
Commodity	(353)		113			3		(101)				31		—		184			(123)		104
Total net derivative receivables	(2,278)		1,063		(c)	284		(468)				(160)		17		73			(1,469)		959		(c)
Available-for-sale securities:
Corporate debt securities	267		(4)			—		(165)				—		—		(38)			60		(3)
Total available-for-sale securities	267		(4)		(d)	—		(165)				—		—		(38)			60		(3)		(d)
Loans	3,808		110		(c)	24		(34)				(442)		276		(59)			3,683		25		(c)
Mortgage servicing rights	8,229		596		(e)	650		(101)				(265)		—		—			9,109		596		(e)
Other assets	417		(1)		(c)	498		(11)				(14)		—		(1)			888		(1)		(c)

	Fair value measurements using significant unobservable inputs
Three months ended September 30, 2023 (in millions)	Fair value at July 1, 2023		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2023			Change in unrealized (gains)/losses related to financial instruments held at September 30, 2023
						Purchases		Sales		Issuances		Settlements(h)
Liabilities:(a)
Deposits	$	2,053	$	(34)	(c)(f)	$	—	$	—	$	341	$	(468)	$	—	$	(40)		$	1,852	$	(34)	(c)(f)
Short-term borrowings	1,704		22		(c)(f)	—		—		1,371		(1,150)		—		(2)			1,945		2		(c)(f)
Trading liabilities – debt and equity instruments	63		(5)		(c)	(2)		2		—		(2)		—		(15)			41		—
Accounts payable and other liabilities	68		(7)		(c)	(11)		13		—		—		—		—			63		(7)		(c)
Long-term debt	25,425		(764)		(c)(f)	—		—		3,380		(3,130)		18		(82)			24,847		(774)		(c)(f)

109


	Fair value measurements using significant unobservable inputs
Three months ended September 30, 2022 (in millions)	Fair value at July 1, 2022		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2022			Change in unrealized gains/(losses) related to financial instruments held at September 30, 2022
						Purchases(g)		Sales				Settlements(h)
Assets:(a)
Federal funds sold and securities purchased under resale agreements	$	1	$	—		$	1	$	—			$	(1)	$	—	$	—		$	1	$	—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies	803		5			5		—				(32)		—		(5)			776		5
Residential – nonagency	14		—			1		(5)				—		—		(1)			9		—
Commercial – nonagency	10		(1)			—		(1)				—		3		—			11		(1)
Total mortgage-backed securities	827		4			6		(6)				(32)		3		(6)			796		4
Obligations of U.S. states and municipalities	7		1			—		(1)				—		—		—			7		1
Non-U.S. government debt securities	205		(11)			21		(22)				(4)		8		(31)			166		(11)
Corporate debt securities	574		2			45		(75)				(28)		66		(236)			348		11
Loans	898		(15)			103		(144)				(43)		252		(186)			865		(16)
Asset-backed securities	20		5			15		(13)				—		—		(1)			26		1
Total debt instruments	2,531		(14)			190		(261)				(107)		329		(460)			2,208		(10)
Equity securities	661		(43)			16		(60)				(2)		18		(10)			580		(46)
Physical commodities	2		(1)			1		—				—		—		—			2		(1)
Other	87		19			10		—				(32)		1		(1)			84		15
Total trading assets – debt and equity instruments	3,281		(39)		(c)	217		(321)				(141)		348		(471)			2,874		(42)		(c)
Net derivative receivables:(b)
Interest rate	420		(574)			60		(108)				(38)		848		(53)			555		(552)
Credit	249		56			6		(1)				41		2		(10)			343		69
Foreign exchange	245		217			31		(43)				43		(1)		15			507		166
Equity	(1,234)		904			272		(424)				385		(134)		(95)			(326)		902
Commodity	26		116			14		(51)				29		4		61			199		141
Total net derivative receivables	(294)		719		(c)	383		(627)				460		719		(82)			1,278		726		(c)
Available-for-sale securities:
Corporate debt securities	186		(6)			—		—				—		—		—			180		(6)
Total available-for-sale securities	186		(6)		(d)	—		—				—		—		—			180		(6)		(d)
Loans	2,020		(53)		(c)	37		(85)				(102)		213		(456)			1,574		(52)		(c)
Mortgage servicing rights	7,439		504		(e)	510		(79)				(234)		—		—			8,140		504		(e)
Other assets	408		11		(c)	2		(1)				(44)		—		—			376		11		(c)

	Fair value measurements using significant unobservable inputs
Three months ended September 30, 2022 (in millions)	Fair value at July 1, 2022		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2022			Change in unrealized (gains)/losses related to financial instruments held at September 30, 2022
						Purchases		Sales		Issuances		Settlements(h)
Liabilities:(a)
Deposits	$	2,032	$	(152)	(c)(f)	$	—	$	—	$	24	$	(18)	$	—	$	(60)		$	1,826	$	(154)	(c)(f)
Short-term borrowings	2,101		(22)		(c)(f)	—		—		863		(1,354)		—		(4)			1,584		(51)		(c)(f)
Trading liabilities – debt and equity instruments	56		3		(c)	(5)		14		—		—		7		(4)			71		7		(c)
Accounts payable and other liabilities	73		(4)		(c)	—		—		—		—		—		—			69		(4)		(c)
Long-term debt	23,077		(1,037)		(c)(f)	—		—		2,943		(2,404)		297		(448)			22,428		(1,075)		(c)(f)

110


	Fair value measurements using significant unobservable inputs
Nine months ended September 30, 2023 (in millions)	Fair value at Jan 1, 2023		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2023			Change in unrealized gains/(losses) related to financial instruments held at September 30, 2023
						Purchases(g)		Sales				Settlements(h)
Assets:(a)
Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	—	$	—			$	—	$	—	$	—		$	—	$	—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies	759		3			249		(133)				(85)		—		(14)			779		3
Residential – nonagency	5		7			—		(6)				(2)		1		—			5		—
Commercial – nonagency	7		6			1		—				(1)		8		(8)			13		5
Total mortgage-backed securities	771		16			250		(139)				(88)		9		(22)			797		8
Obligations of U.S. states and municipalities	7		—			—		(1)				—		3		—			9		—
Non-U.S. government debt securities	155		49			116		(149)				—		—		(20)			151		86
Corporate debt securities	463		39			301		(116)				(3)		38		(70)			652		34
Loans	759		(54)			843		(299)				(125)		233		(309)			1,048		(28)
Asset-backed securities	23		1			5		(11)				(1)		5		(16)			6		(1)
Total debt instruments	2,178		51			1,515		(715)				(217)		288		(437)			2,663		99
Equity securities	665		(45)			134		(207)				(442)		181		(135)			151		(28)
Physical Commodities	2		(2)			7		—				(2)		—		—			5		5
Other	64		(43)			105		—				(19)		1		(5)			103		(25)
Total trading assets – debt and equity instruments	2,909		(39)		(c)	1,761		(922)				(680)		470		(577)			2,922		51		(c)
Net derivative receivables:(b)
Interest rate	701		(859)			174		(219)				376		(1,135)		(149)			(1,111)		(789)
Credit	13		485			5		(4)				52		22		(22)			551		487
Foreign exchange	489		140			134		(126)				(206)		126		(44)			513		114
Equity	(384)		1,036			758		(1,584)				(1,111)		530		(544)			(1,299)		936
Commodity	(146)		71			42		(219)				(80)		(11)		220			(123)		57
Total net derivative receivables	673		873		(c)	1,113		(2,152)				(969)		(468)		(539)			(1,469)		805		(c)
Available-for-sale securities:
Corporate debt securities	239		24			—		(165)				—		—		(38)			60		22
Total available-for-sale securities	239		24		(d)	—		(165)				—		—		(38)			60		22		(d)
Loans	1,418		133		(c)	2,309		(107)				(1,027)		1,193		(236)			3,683		29		(c)
Mortgage servicing rights	7,973		860		(e)	1,227		(191)				(760)		—		—			9,109		860		(e)
Other assets	405		20		(c)	515		(13)				(44)		8		(3)			888		56		(c)

	Fair value measurements using significant unobservable inputs
Nine months ended September 30, 2023 (in millions)	Fair value at Jan 1, 2023		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2023			Change in unrealized (gains)/losses related to financial instruments held at September 30, 2023
						Purchases		Sales		Issuances		Settlements(h)
Liabilities:(a)
Deposits	$	2,162	$	(37)	(c)(f)	$	—	$	—	$	608	$	(716)	$	—	$	(165)		$	1,852	$	(41)	(c)(f)
Short-term borrowings	1,401		162		(c)(f)	—		—		3,613		(3,209)		2		(24)			1,945		12		(c)(f)
Trading liabilities – debt and equity instruments	84		(18)		(c)	(29)		8		—		(4)		18		(18)			41		3		(c)
Accounts payable and other liabilities	53		(3)		(c)	(13)		20		—		—		8		(2)			63		(3)		(c)
Long-term debt	24,092		917		(c)(f)	—		—		8,780		(8,655)		222		(509)			24,847		667		(c)(f)

111


	Fair value measurements using significant unobservable inputs
Nine months ended September 30, 2022 (in millions)	Fair value at Jan 1, 2022		Total realized/unrealized gains/(losses)											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2022			Change in unrealized gains/(losses) related to financial instruments held at September 30, 2022
						Purchases(g)		Sales				Settlements(h)
Assets:(a)
Federal funds sold and securities purchased under resale agreements	$	—	$	—		$	1	$	—			$	(1)	$	1	$	—		$	1	$	—
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies	265		31			670		(125)				(60)		—		(5)			776		29
Residential – nonagency	28		—			6		(5)				(12)		—		(8)			9		(1)
Commercial – nonagency	10		(1)			—		(1)				—		3		—			11		(1)
Total mortgage-backed securities	303		30			676		(131)				(72)		3		(13)			796		27
Obligations of U.S. states and municipalities	7		1			—		(1)				—		—		—			7		2
Non-U.S. government debt securities	81		(53)			426		(288)				(4)		51		(47)			166		(50)
Corporate debt securities	332		(33)			378		(146)				(65)		164		(282)			348		(27)
Loans	708		(52)			522		(406)				(202)		777		(482)			865		(25)
Asset-backed securities	26		5			17		(23)				—		5		(4)			26		1
Total debt instruments	1,457		(102)			2,019		(995)				(343)		1,000		(828)			2,208		(72)
Equity securities	662		(955)			337		(361)				(2)		977		(78)			580		(407)
Physical Commodities	—		(1)			3		—				—		—		—			2		(1)
Other	160		86			36		—				(195)		1		(4)			84		58
Total trading assets – debt and equity instruments	2,279		(972)		(c)	2,395		(1,356)				(540)		1,978		(910)			2,874		(422)		(c)
Net derivative receivables:(b)
Interest rate	(16)		(181)			285		(337)				218		865		(279)			555		25
Credit	74		387			14		(8)				(120)		—		(4)			343		367
Foreign exchange	(419)		755			178		(86)				75		17		(13)			507		716
Equity	(3,626)		3,472			932		(1,449)				688		(692)		349			(326)		3,106
Commodity	(907)		920			82		(257)				297		3		61			199		878
Total net derivative receivables	(4,894)		5,353		(c)	1,491		(2,137)				1,158		193		114			1,278		5,092		(c)
Available-for-sale securities:
Corporate debt securities	161		2			17		—				—		—		—			180		2
Total available-for-sale securities	161		2		(d)	17		—				—		—		—			180		2		(d)
Loans	1,933		(37)		(c)	431		(185)				(633)		829		(764)			1,574		79		(c)
Mortgage servicing rights	5,494		2,117		(e)	1,981		(750)				(702)		—		—			8,140		2,117		(e)
Other assets	306		136		(c)	48		(29)				(81)		2		(6)			376		131		(c)

	Fair value measurements using significant unobservable inputs
Nine months ended September 30, 2022 (in millions)	Fair value at Jan 1, 2022		Total realized/unrealized (gains)/losses											Transfers into level 3		Transfers (out of) level 3		Fair value at September 30, 2022			Change in unrealized (gains)/losses related to financial instruments held at September 30, 2022
						Purchases		Sales		Issuances		Settlements(h)
Liabilities:(a)
Deposits	$	2,317	$	(454)	(c)(f)	$	—	$	—	$	270	$	(87)	$	—	$	(220)		$	1,826	$	(446)	(c)(f)
Short-term borrowings	2,481		(409)		(c)(f)	—		—		3,249		(3,737)		15		(15)			1,584		17		(c)(f)
Trading liabilities – debt and equity instruments	30		(13)		(c)	(39)		48		—		—		51		(6)			71		14		(c)
Accounts payable and other liabilities	69		(10)		(c)	(28)		43		—		—		1		(6)			69		(9)		(c)
Long-term debt	24,374		(5,345)		(c)(f)	—		—		10,463		(6,925)		739		(878)			22,428		(5,097)		(c)(f)

(a)Level 3 assets at fair value as a percentage of total Firm assets at fair value (including assets measured at fair value on a nonrecurring basis) were 2% at both September 30, 2023 and December 31, 2022. Level 3 liabilities at fair value as a percentage of total Firm liabilities at fair value (including liabilities measured at fair value on a nonrecurring basis) were 7% and 8% at September 30, 2023 and December 31, 2022, respectively.

112

(b)All level 3 derivatives are presented on a net basis, irrespective of the underlying counterparty.

(c)Predominantly reported in principal transactions revenue, except for changes in fair value for CCB mortgage loans and lending-related commitments originated with the intent to sell, and mortgage loan purchase commitments, which are reported in mortgage fees and related income.

(d)Realized gains/(losses) on AFS securities are reported in investment securities gains/(losses). Unrealized gains/(losses) are reported in OCI. Realized and unrealized gains/(losses) recorded on level 3 AFS securities were not material both for the three and nine months ended September 30, 2023 and 2022.

(e)Changes in fair value for MSRs are reported in mortgage fees and related income.

(f)Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue, and were not material both for the three and nine months ended September 30, 2023 and 2022. Unrealized (gains)/losses are reported in OCI, and were $15 million and $(256) million for the three months ended September 30, 2023 and 2022, respectively and $(277) million and $(829) million for the nine months ended September 30, 2023 and 2022, respectively.

(g)Loan originations are included in purchases.

(h)Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications, deconsolidations associated with beneficial interests in VIEs and other items.

Level 3 analysis

Consolidated balance sheets changes

The following describes significant changes to level 3 assets since December 31, 2022, for those items measured at fair value on a recurring basis. Refer to Assets and liabilities measured at fair value on a nonrecurring basis on page 115 for further information on changes impacting items measured at fair value on a nonrecurring basis.

Three and nine months ended September 30, 2023

Level 3 assets were $27.3 billion at September 30, 2023, reflecting an increase of $523 million from June 30, 2023, and an increase of $3.7 billion from December 31, 2022.

The increase for the three months ended September 30, 2023 was driven by:

•$880 million in MSRs.

The increase for the nine months ended September 30, 2023 was predominantly driven by:

•$2.3 billion in non-trading loans primarily due to $1.8 billion of loans in CIB associated with First Republic.

•$1.1 billion in MSRs.

Refer to Note 15 for information on MSRs.

Refer to the sections below for additional information.

Transfers between levels for instruments carried at fair value on a recurring basis

For the three months ended September 30, 2023, there were no significant transfers from level 2 into level 3.

For the three months ended September 30, 2023, there were no significant transfers from level 3 into level 2.

For the nine months ended September 30, 2023, significant transfers from level 2 into level 3 included the following:

•$1.8 billion of gross interest rate derivative payables as a result of transition to term SOFR for certain interest rate options.

•$1.2 billion of gross equity derivative receivables as a result of a decrease in observability and an increase in the significance of unobservable inputs.

•$1.2 billion of non-trading loans driven by a decrease in observability.

For the nine months ended September 30, 2023, significant transfers from level 3 into level 2 included the following:

•$1.7 billion and $1.2 billion of gross equity derivative receivables and gross equity derivative payables, respectively, as a result of an increase in observability and a decrease in the significance of unobservable inputs.

For the three months ended September 30, 2022, significant transfers from level 2 into level 3 included the following:

•$1.1 billion of gross interest rate derivative receivables as a result of a decrease in observability and an increase in the significance of unobservable inputs.

For the three months ended September 30, 2022, significant transfers from level 3 into level 2 included the following:

•$524 million of gross equity derivative receivables as a result of an increase in observability and a decrease in the significance of unobservable inputs.

For the nine months ended September 30, 2022, significant transfers from level 2 into level 3 included the following:

•$2.0 billion of total debt and equity instruments, predominantly due to equity securities of $977 million driven by a decrease in observability as a result of restricted access to certain markets and trading loans of $777 million driven by a decrease in observability.

•$1.5 billion and $639 million of gross interest rate derivative receivables and gross interest rate derivative payables, respectively, as a result of a decrease in observability and an increase in the significance of unobservable inputs.

•$963 million and $1.8 billion of gross equity derivative receivables and gross equity derivative payables, respectively, as a result of a decrease in observability and an increase in the significance of unobservable inputs.

•$829 million of non-trading loans driven by a decrease in observability.

•$739 million of long-term debt driven by a decrease in observability and an increase in the significance of unobservable inputs for certain structured notes.

For the nine months ended September 30, 2022, significant transfers from level 3 into level 2 included the following:

•$1.0 billion and $758 million of gross interest rate derivative receivables and gross interest rate derivative payables, respectively, as a result of an increase in observability and a decrease in the significance of unobservable inputs.

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•$1.4 billion and $1.8 billion of gross equity derivative receivables and gross equity derivative payables, respectively, as a result of an increase in observability and a decrease in the significance of unobservable inputs.

•$764 million of non-trading loans driven by an increase in observability.

•$878 million of long-term debt driven by an increase in observability and a decrease in the significance of unobservable inputs for certain structured notes.

All transfers are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur.

Gains and losses

The following describes significant components of total realized/unrealized gains/(losses) for instruments measured at fair value on a recurring basis for the periods indicated. These amounts exclude any effects of the Firm’s risk management activities where the financial instruments are classified as level 1 and 2 of the fair value hierarchy. Refer to Changes in level 3 recurring fair value measurements rollforward tables on pages 108-113 for further information on these instruments.

Three months ended September 30, 2023

•$1.7 billion of net gains on assets, predominantly driven by gains in net equity derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates.

•$788 million of net gains on liabilities, driven by gains in long-term debt due to market movements.

Three months ended September 30, 2022

•$1.1 billion of net gains on assets, driven by gains in net equity derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates.

•$1.2 billion of net gains on liabilities, predominantly driven by gains in long-term debt due to market movements.

Nine months ended September 30, 2023

•$1.9 billion of net gains on assets, driven by gains in net equity derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates.

•$1.0 billion of net losses on liabilities, predominantly driven by losses in long-term debt due to market movements.

Nine months ended September 30, 2022

•$6.6 billion of net gains on assets, predominantly driven by gains in net equity derivative receivables due to market movements and gains in MSRs reflecting lower prepayment speeds on higher rates.

•$6.2 billion of net gains on liabilities, predominantly driven by gains in long-term debt due to market movements.

Refer to Note 15 for information on MSRs.

Credit and funding adjustments — derivatives

The following table provides the impact of credit and funding adjustments on principal transactions revenue in the respective periods, excluding the effect of any associated hedging activities. The FVA presented below includes the impact of the Firm’s own credit quality on the inception value of liabilities as well as the impact of changes in the Firm’s own credit quality over time.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Credit and funding adjustments:
Derivatives CVA	$	90	$	(6)	$	211	$	(171)
Derivatives FVA	56		5		111		(46)

Refer to Note 2 of JPMorgan Chase’s 2022 Form 10-K for further information about both credit and funding adjustments, as well as information about valuation adjustments on fair value option elected liabilities.

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Assets and liabilities measured at fair value on a nonrecurring basis

The following tables present the assets and liabilities held as of September 30, 2023 and 2022, for which nonrecurring fair value adjustments were recorded during the nine months ended September 30, 2023 and 2022, by major product category and fair value hierarchy.


	Fair value hierarchy							Total fair value
September 30, 2023 (in millions)	Level 1		Level 2		Level 3
Loans	$	—	$	666	$	1,014	(b)	$	1,680
Other assets(a)	—		37		1,276			1,313
Total assets measured at fair value on a nonrecurring basis	$	—	$	703	$	2,290		$	2,993
Accounts payable and other liabilities	—		—		—			—
Total liabilities measured at fair value on a nonrecurring basis	$	—	$	—	$	—		$	—


	Fair value hierarchy						Total fair value
September 30, 2022 (in millions)	Level 1		Level 2		Level 3
Loans	$	—	$	1,142	$	927	$	2,069
Other assets	—		37		1,119		1,156
Total assets measured at fair value on a nonrecurring basis	$	—	$	1,179	$	2,046	$	3,225
Accounts payable and other liabilities	—		—		112		112
Total liabilities measured at fair value on a nonrecurring basis	$	—	$	—	$	112	$	112

(a)Included impairments on certain equity method investments, as well as equity securities without readily determinable fair values that were adjusted based on observable price changes in orderly transactions from an identical or similar investment of the same issuer (measurement alternative). Of the $1.3 billion in level 3 assets measured at fair value on a nonrecurring basis as of September 30, 2023, $396 million related to equity securities adjusted based on the measurement alternative. These equity securities are classified as level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.

(b)Of the $1.0 billion in level 3 loans measured at fair value on a nonrecurring basis as of September 30, 2023, $60 million related to residential real estate loans carried at the net realizable value of the underlying collateral (e.g., collateral-dependent loans). These amounts are classified as level 3 as they are valued using information from broker’s price opinions, appraisals and automated valuation models and discounted based upon the Firm’s experience with actual liquidation values. These discounts ranged from 10% to 56% with a weighted average of 25%.

Nonrecurring fair value changes

The following table presents the total change in value of assets and liabilities for which fair value adjustments have been recognized for the three and nine months ended September 30, 2023 and 2022, related to assets and liabilities held at those dates.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Loans	$	(75)	$	(28)	$	(200)	$	(77)
Other assets(a)	(376)		(76)		(536)		(122)
Accounts payable and other liabilities	—		52		—		(108)
Total nonrecurring fair value gains/(losses)	$	(451)	$	(52)	$	(736)	$	(307)

(a)Included $33 million and $(76) million for the three months ended September 30, 2023 and 2022, respectively, and $(60) million and $(105) million for the nine months ended September 30, 2023 and 2022, respectively, of net gains/(losses) as a result of the measurement alternative. The current period also included impairments on certain equity method investments.

Refer to Note 12 for further information about the measurement of collateral-dependent loans.

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Equity securities without readily determinable fair values

The Firm measures certain equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer (i.e., measurement alternative), with such changes recognized in other income.

In its determination of the new carrying values upon observable price changes, the Firm may adjust the prices if deemed necessary to arrive at the Firm’s estimated fair values. Such adjustments may include adjustments to reflect the different rights and obligations of similar securities, and other adjustments that are consistent with the Firm’s valuation techniques for private equity direct investments.

The following table presents the carrying value of equity securities without readily determinable fair values held as of September 30, 2023 and 2022, that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable.


	Three months ended September 30,				Nine months ended September 30,
As of or for the period ended, (in millions)	2023		2022		2023		2022
Other assets
Carrying value(a)	$	4,499	$	4,229	$	4,499	$	4,229
Upward carrying value changes(b)	50		40		90		486
Downward carrying value changes/impairment(c)	(17)		(116)		(150)		(591)

(a)The carrying value as of December 31, 2022 was $4.1 billion. The period-end carrying values reflect cumulative purchases and sales in addition to upward and downward carrying value changes.

(b)The cumulative upward carrying value changes between January 1, 2018 and September 30, 2023 were $1.3 billion.

(c)The cumulative downward carrying value changes/impairment between January 1, 2018 and September 30, 2023 were $(1.1) billion.

Included in other assets above is the Firm’s interest in approximately 37 million Visa Class B common shares (“Visa B shares”). These shares are subject to certain transfer restrictions and are convertible into Visa Class A common shares (“Visa A shares”) at a specified conversion rate upon final resolution of certain litigation matters involving Visa. On October 2, 2023, Visa filed a Current Report on Form 8-K with the SEC indicating that the conversion rate of Visa B shares to Visa A shares decreased from 1.5902 to 1.5875 effective September 28, 2023. The conversion rate may be further adjusted by Visa depending on developments related to the litigation matters. The outcome of those litigation matters, and the effect that the resolution of those matters may have on the conversion rate, is unknown. Accordingly, as of September 30, 2023, there is significant uncertainty regarding when the transfer restrictions on Visa B shares may be terminated and what the final conversion rate for the Visa B shares will be. As a result of these considerations, as well as differences in voting rights, Visa B shares are not considered to be similar to Visa A shares, and they continue to be held at their nominal carrying value.

In connection with prior sales of Visa B shares, the Firm has entered into derivative instruments with the purchasers of the shares under which the Firm retains the risk associated with changes in the conversion rate. Under the terms of the derivative instruments, the Firm will (a) make or receive payments based on subsequent changes in the conversion rate and (b) make periodic interest payments to the purchasers of the Visa B shares. The payments under the derivative instruments will continue as long as the Visa B shares remain subject to transfer restrictions. The derivative instruments are accounted for at fair value using a discounted cash flow methodology based upon the Firm’s estimate of the timing and magnitude of final resolution of the litigation matters. The derivative instruments are recorded in trading liabilities, and changes in fair value are recognized in other income. As of September 30, 2023, the Firm held derivative instruments associated with 23 million Visa B shares that the Firm had previously sold, which are all subject to similar terms and conditions.

On September 13, 2023, Visa filed a Current Report on Form 8-K with the SEC announcing that Visa is engaging with its common stockholders on potential amendments to its Certificate of Incorporation that would authorize Visa to conduct an exchange offer program ("the Program") and have the effect of releasing transfer restrictions on portions of Visa's Class B common stock. The amendments would become effective only if approved by a majority of the outstanding shares of Visa's Class A, Class B and Class C common stock, each voting as a separate class. The Program, if approved as proposed, would entitle the Firm to sell up to 50% of the Firm's Visa B shares through an initial exchange offer and would also provide for the potential of future exchange offers.

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Additional disclosures about the fair value of financial instruments that are not carried on the Consolidated balance sheets at fair value

The following table presents, by fair value hierarchy classification, the carrying values and estimated fair values at September 30, 2023 and December 31, 2022, of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and their classification within the fair value hierarchy.


	September 30, 2023										December 31, 2022
			Estimated fair value hierarchy										Estimated fair value hierarchy
(in billions)	Carrying value		Level 1		Level 2		Level 3		Total estimated fair value		Carrying value		Level 1		Level 2		Level 3		Total estimated fair value
Financial assets
Cash and due from banks	$	24.9	$	24.9	$	—	$	—	$	24.9	$	27.7	$	27.7	$	—	$	—	$	27.7
Deposits with banks	486.4		485.7		0.7		—		486.4		539.5		539.3		0.2		—		539.5
Accrued interest and accounts receivable	127.4		—		127.3		0.1		127.4		124.7		—		124.6		0.1		124.7
Federal funds sold and securities purchased under resale agreements	5.9		—		5.9		—		5.9		3.7		—		3.7		—		3.7
Securities borrowed	120.2		—		120.2		—		120.2		115.3		—		115.3		—		115.3
Investment securities, held-to-maturity	388.3		170.0		178.7		—		348.7		425.3		189.1		199.5		—		388.6
Loans, net of allowance for loan losses(a)	1,249.4		—		270.4		942.1		1,212.5		1,073.9		—		194.0		853.9		1,047.9
Other	71.1		—		69.2		2.0		71.2		101.2		—		99.6		1.7		101.3
Financial liabilities
Deposits	$	2,314.5	$	—	$	2,314.6	$	—	$	2,314.6	$	2,311.6	$	—	$	2,311.5	$	—	$	2,311.5
Federal funds purchased and securities loaned or sold under repurchase agreements	57.2		—		57.2		—		57.2		50.6		—		50.6		—		50.6
Short-term borrowings(b)	26.2		—		26.2		—		26.2		28.2		—		28.2		—		28.2
Accounts payable and other liabilities	249.0		—		239.8		8.7		248.5		257.5		—		251.2		5.6		256.8
Beneficial interests issued by consolidated VIEs	24.8		—		24.8		—		24.8		12.6		—		12.6		—		12.6
Long-term debt(b)	284.4		—		227.8		49.9		277.7		223.6		—		216.5		2.8		219.3

(a)Fair value is typically estimated using a discounted cash flow model that incorporates the characteristics of the underlying loans (including principal, contractual interest rate and contractual fees) and other key inputs, including expected lifetime credit losses, interest rates, prepayment rates, and primary origination or secondary market spreads. For certain loans, the fair value is measured based on the value of the underlying collateral. Carrying value of the loan takes into account the loan’s allowance for loan losses, which represents the loan’s expected credit losses over its remaining expected life. The difference between the estimated fair value and carrying value of a loan is generally attributable to changes in market interest rates, including credit spreads, market liquidity premiums and other factors that affect the fair value of a loan but do not affect its carrying value.

(b)Includes FHLB advances in level 2 of Long-term debt and Short-term borrowings and the Purchase Money Note in level 3 of Long-term debt associated with First Republic. Refer to Notes 18 and 28 for additional information.

The majority of the Firm’s lending-related commitments are not carried at fair value on a recurring basis on the Consolidated balance sheets. The carrying value and the estimated fair value of these wholesale lending-related commitments were as follows for the periods indicated.


	September 30, 2023										December 31, 2022
			Estimated fair value hierarchy										Estimated fair value hierarchy
(in billions)	Carrying value(a)(b)(c)		Level 1		Level 2		Level 3		Total estimated fair value		Carrying value(a)(b)		Level 1		Level 2		Level 3		Total estimated fair value
Wholesale lending-related commitments	$	3.3	$	—	$	—	$	5.1	$	5.1	$	2.3	$	—	$	—	$	3.2	$	3.2

(a)Excludes the current carrying values of the guarantee liability and the offsetting asset, each of which is recognized at fair value at the inception of the guarantees.

(b)Includes the wholesale allowance for lending-related commitments.

(c)As of September 30, 2023, includes fair value adjustments associated with First Republic for other unfunded commitments to extend credit totaling $1.3 billion recorded in accounts payable and other liabilities on the Consolidated balance sheets. Refer to Notes 24 and 28 for additional information.

The Firm does not estimate the fair value of consumer off-balance sheet lending-related commitments. In many cases, the Firm can reduce or cancel these commitments by providing the borrower notice or, in some cases as permitted by law, without notice. Refer to page 169 of JPMorgan Chase’s 2022 Form 10-K for a further discussion of the valuation of lending-related commitments.

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Note 3 – Fair value option

The fair value option provides an option to elect fair value for selected financial assets, financial liabilities, unrecognized firm commitments, and written loan commitments.

The Firm has elected to measure certain instruments at fair value for several reasons including to mitigate income statement volatility caused by the differences between the measurement basis of elected instruments (e.g., certain instruments that otherwise would be accounted for on an accrual basis) and the associated risk management arrangements that are accounted for on a fair value basis, as well as to better reflect those instruments that are managed on a fair value basis.

The Firm’s election of fair value includes the following instruments:

•Loans purchased or originated as part of securitization warehousing activity, subject to bifurcation accounting, or managed on a fair value basis, including lending-related commitments

•Certain securities financing agreements

•Owned beneficial interests in securitized financial assets that contain embedded credit derivatives, which would otherwise be required to be separately accounted for as a derivative instrument

•Structured notes and other hybrid instruments, which are predominantly financial instruments that contain embedded derivatives, that are issued or transacted as part of client-driven activities

•Certain long-term beneficial interests issued by CIB’s consolidated securitization trusts where the underlying assets are carried at fair value

Changes in fair value under the fair value option election

The following table presents the changes in fair value included in the Consolidated statements of income for the three and nine months ended September 30, 2023 and 2022, for items for which the fair value option was elected. The profit and loss information presented below only includes the financial instruments that were elected to be measured at fair value; related risk management instruments, which are required to be measured at fair value, are not included in the table.


	Three months ended September 30,
	2023							2022
(in millions)	Principal transactions		All other income			Total changes in fair value recorded (e)		Principal transactions		All other income			Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements	$	146	$	—		$	146	$	(185)	$	—		$	(185)
Securities borrowed	29		—			29		(209)		—			(209)
Trading assets:
Debt and equity instruments, excluding loans	200		—			200		(1,782)		—			(1,782)
Loans reported as trading assets:
Changes in instrument-specific credit risk	17		—			17		34		—			34
Other changes in fair value	4		—			4		(36)		—			(36)
Loans:
Changes in instrument-specific credit risk	31		4		(c)	35		(133)		3		(c)	(130)
Other changes in fair value	(74)		(78)		(c)	(152)		(340)		(107)		(c)	(447)
Other assets	32		(1)		(d)	31		12		(7)		(d)	5
Deposits(a)	(454)		—			(454)		364		—			364
Federal funds purchased and securities loaned or sold under repurchase agreements	(17)		—			(17)		104		—			104
Short-term borrowings(a)	(130)		—			(130)		85		—			85
Trading liabilities	4		—			4		9		—			9
Beneficial interests issued by consolidated VIEs	—		—			—		—		—			—
Other liabilities	(2)		—			(2)		(2)		—			(2)
Long-term debt(a)(b)	2,606		(14)		(c)(d)	2,592		1,828		125		(c)(d)	1,953

118


	Nine months ended September 30,
	2023							2022
(in millions)	Principal transactions		All other income			Total changes in fair value recorded (e)		Principal transactions		All other income			Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements	$	366	$	—		$	366	$	(560)	$	—		$	(560)
Securities borrowed	57		—			57		(508)		—			(508)
Trading assets:
Debt and equity instruments, excluding loans	2,955		—			2,955		(2,693)		—			(2,693)
Loans reported as trading assets:
Changes in instrument-specific credit risk	248		—			248		(109)		—			(109)
Other changes in fair value	9		2		(c)	11		(58)		—			(58)
Loans:
Changes in instrument-specific credit risk	102		—			102		(210)		26		(c)	(184)
Other changes in fair value	45		26		(c)	71		(1,560)		(881)		(c)	(2,441)
Other assets	46		(2)		(d)	44		21		(6)		(d)	15
Deposits(a)	(1,322)		—			(1,322)		1,148		—			1,148
Federal funds purchased and securities loaned or sold under repurchase agreements	(86)		—			(86)		310		—			310
Short-term borrowings(a)	(399)		—			(399)		858		—			858
Trading liabilities	(26)		—			(26)		(3)		—			(3)
Beneficial interests issued by consolidated VIEs	—		—			—		(1)		—			(1)
Other liabilities	(3)		—			(3)		(6)		—			(6)
Long-term debt(a)(b)	(855)		(42)		(c)(d)	(897)		11,193		158		(c)(d)	11,351

(a)Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected are recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue were not material both for the three and nine months ended September 30, 2023 and 2022.

(b)Long-term debt measured at fair value predominantly relates to structured notes. Although the risk associated with the structured notes is actively managed, the gains/(losses) reported in this table do not include the income statement impact of the risk management instruments used to manage such risk.

(c)Reported in mortgage fees and related income.

(d)Reported in other income.

(e)Changes in fair value exclude contractual interest, which is included in interest income and interest expense for all instruments other than certain hybrid financial instruments in CIB. Refer to Note 7 for further information regarding interest income and interest expense.

119

Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding

The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of September 30, 2023 and December 31, 2022, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected.


	September 30, 2023							December 31, 2022
(in millions)	Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding		Contractual principal outstanding			Fair value		Fair value over/(under) contractual principal outstanding
Loans
Nonaccrual loans
Loans reported as trading assets	$	3,080		$	572	$	(2,508)	$	2,517		$	368	$	(2,149)
Loans	875			750		(125)		967			829		(138)
Subtotal	3,955			1,322		(2,633)		3,484			1,197		(2,287)
90 or more days past due and government guaranteed
Loans(a)	71			65		(6)		124			115		(9)
All other performing loans(b)
Loans reported as trading assets	9,009			7,574		(1,435)		7,823			6,135		(1,688)
Loans	39,212			37,993		(1,219)		42,588			41,135		(1,453)
Subtotal	48,221			45,567		(2,654)		50,411			47,270		(3,141)
Total loans	$	52,247		$	46,954	$	(5,293)	$	54,019		$	48,582	$	(5,437)
Long-term debt
Principal-protected debt	$	45,221	(d)	$	34,331	$	(10,890)	$	41,341	(d)	$	31,105	$	(10,236)
Nonprincipal-protected debt(c)	NA			44,026		NA		NA			41,176		NA
Total long-term debt	NA			$	78,357	NA		NA			$	72,281	NA
Long-term beneficial interests
Nonprincipal-protected debt(c)	NA			$	66	NA		NA			$	5	NA
Total long-term beneficial interests	NA			$	66	NA		NA			$	5	NA

(a)These balances are excluded from nonaccrual loans as the loans are insured and/or guaranteed by U.S. government agencies.

(b)There were no performing loans that were ninety days or more past due as of September 30, 2023 and December 31, 2022.

(c)Remaining contractual principal is not applicable to nonprincipal-protected structured notes and long-term beneficial interests. Unlike principal-protected structured notes and long-term beneficial interests, for which the Firm is obligated to return a stated amount of principal at maturity, nonprincipal-protected structured notes and long-term beneficial interests do not obligate the Firm to return a stated amount of principal at maturity, but for structured notes to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal-protected notes.

(d)Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflects the contractual principal payment at maturity or, if applicable, the contractual principal payment at the Firm’s next call date.

At September 30, 2023 and December 31, 2022, the contractual amount of lending-related commitments for which the fair value option was elected was $13.0 billion and $7.6 billion, respectively, with a corresponding fair value of $247 million and $24 million, respectively. Refer to Note 28 of JPMorgan Chase’s 2022 Form 10-K, and Note 24 of this Form 10-Q for further information regarding off-balance sheet lending-related financial instruments.

120

Structured note products by balance sheet classification and risk component

The following table presents the fair value of structured notes, by balance sheet classification and the primary risk type.


	September 30, 2023									December 31, 2022
(in millions)	Long-term debt		Short-term borrowings		Deposits			Total		Long-term debt		Short-term borrowings		Deposits			Total
Risk exposure
Interest rate	$	34,449	$	271	$	60,595		$	95,315	$	31,973	$	260	$	24,655		$	56,888
Credit	4,746		365		—			5,111		4,105		170		—			4,275
Foreign exchange	2,373		953		112			3,438		2,674		788		50			3,512
Equity	34,007		5,850		2,986			42,843		30,864		4,272		3,545			38,681
Commodity	1,989		21		1		(a)	2,011		1,655		16		2		(a)	1,673
Total structured notes	$	77,564	$	7,460	$	63,694		$	148,718	$	71,271	$	5,506	$	28,252		$	105,029

(a)Excludes deposits linked to precious metals for which the fair value option has not been elected of $587 million and $602 million for the periods ended September 30, 2023 and December 31, 2022, respectively.

121

Note 4 – Credit risk concentrations

Concentrations of credit risk arise when a number of clients, counterparties or customers are engaged in similar business activities or activities in the same geographic region, or when they have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions.

JPMorgan Chase regularly monitors various segments of its credit portfolios to assess potential credit risk concentrations and to obtain additional collateral when deemed necessary and permitted under the Firm’s agreements. Senior management is significantly involved in the credit approval and review process, and risk levels are adjusted as needed to reflect the Firm’s risk appetite.

In the Firm’s consumer portfolio, concentrations are managed primarily by product and by U.S. geographic region, with a key focus on trends and concentrations at the portfolio level, where potential credit risk concentrations can be remedied through changes in underwriting policies and portfolio guidelines. Refer to Note 12 for additional information on the geographic composition of the Firm’s consumer loan portfolios. In the wholesale portfolio, credit risk concentrations are evaluated primarily by industry and monitored regularly on both an aggregate portfolio level and on an individual client or counterparty basis.

The Firm’s wholesale exposure is managed through loan syndications and participations, loan sales, securitizations, credit derivatives, master netting agreements, collateral and other risk-reduction techniques. Refer to Note 12 for additional information on loans.

The Firm does not believe that its exposure to any particular loan product or industry segment results in a significant concentration of credit risk.

Terms of loan products and collateral coverage are included in the Firm’s assessment when extending credit and establishing its allowance for loan losses.

122

The table below presents both on–balance sheet and off–balance sheet consumer and wholesale credit exposure by the Firm’s three credit portfolio segments as of September 30, 2023 and December 31, 2022. The wholesale industry of risk category is generally based on the client or counterparty’s primary business activity.


	September 30, 2023								December 31, 2022
	Credit exposure(h)(i)		On-balance sheet				Off-balance sheet(j)		Credit exposure(h)		On-balance sheet				Off-balance sheet(j)
(in millions)			Loans		Derivatives						Loans		Derivatives
Consumer, excluding credit card	$	457,082	$	408,769	$	—	$	48,313	$	344,893	$	311,375	$	—	$	33,518
Credit card(a)	1,095,838		196,935		—		898,903		1,006,459		185,175		—		821,284
Total consumer(a)	1,552,920		605,704		—		947,216		1,351,352		496,550		—		854,802
Wholesale(b)
Real Estate	206,067		166,446		292		39,329		170,857		131,681		249		38,927
Asset Managers	145,707		54,485		18,893		72,329		95,656		40,511		16,397		38,748
Individuals and Individual Entities (c)	143,786		124,859		720		18,207		130,815		120,424		434		9,957
Consumer & Retail	127,978		47,013		1,905		79,060		120,555		45,867		1,650		73,038
Industrials	75,865		26,958		2,058		46,849		72,483		26,960		1,770		43,753
Technology, Media & Telecommunications	73,047		20,151		2,525		50,371		72,286		21,622		2,950		47,714
Healthcare	62,126		23,947		1,111		37,068		62,613		22,970		1,683		37,960
Banks & Finance Companies	56,886		33,769		3,510		19,607		51,816		32,172		3,246		16,398
State & Municipal Govt(d)	37,016		20,827		275		15,914		33,847		18,147		585		15,115
Utilities	36,454		7,666		2,852		25,936		36,218		9,107		3,269		23,842
Automotive	34,217		15,813		469		17,935		33,287		14,735		529		18,023
Oil & Gas	33,253		9,117		2,386		21,750		38,668		9,632		5,121		23,915
Insurance	23,733		2,753		10,085		10,895		21,045		2,387		8,081		10,577
Chemicals & Plastics	20,261		6,393		448		13,420		20,030		5,771		407		13,852
Central Govt	15,819		4,078		9,944		1,797		19,095		3,167		12,955		2,973
Transportation	15,180		5,174		507		9,499		15,009		5,005		567		9,437
Metals & Mining	15,136		4,606		237		10,293		15,915		5,398		475		10,042
Securities Firms	8,928		860		3,442		4,626		8,066		556		3,387		4,123
Financial Markets Infrastructure	4,096		67		1,672		2,357		4,962		13		3,050		1,899
All other(e)	135,035		96,970		3,739		34,326		123,307		87,545		4,075		31,687
Subtotal	1,270,590		671,952		67,070		531,568		1,146,530		603,670		70,880		471,980
Loans held-for-sale and loans at fair value	32,403		32,403		—		—		35,427		35,427		—		—
Receivables from customers(f)	43,376		—		—		—		49,257		—		—		—
Total wholesale	1,346,369		704,355		67,070		531,568		1,231,214		639,097		70,880		471,980
Total exposure(g)(h)	$	2,899,289	$	1,310,059	$	67,070	$	1,478,784	$	2,582,566	$	1,135,647	$	70,880	$	1,326,782

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

(b)The industry rankings presented in the table as of December 31, 2022, are based on the industry rankings of the corresponding exposures as of September 30, 2023, not actual rankings of such exposures at December 31, 2022.

(c)Individuals and Individual Entities predominantly consists of Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB, and includes exposure to personal investment companies and personal and testamentary trusts.

(d)In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) as of September 30, 2023 and December 31, 2022, noted above, the Firm held: $6.3 billion and $6.6 billion, respectively, of trading assets; $19.7 billion and $6.8 billion, respectively, of AFS securities; and $10.7 billion and $19.7 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 10 for further information.

(e)All other includes: SPEs and Private education and civic organizations, representing approximately 94% and 6%, respectively, as of September 30, 2023 and 95% and 5%, respectively, as of December 31, 2022. Refer to Note 14 for more information on exposures to SPEs.

(f)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM that are collateralized by assets maintained in the clients’ brokerage accounts (e.g., cash on deposit, liquid and readily marketable debt or equity securities). Because of this collateralization, no allowance for credit losses is generally held against these receivables. To manage its credit risk the Firm establishes margin requirements and monitors the required margin levels on an ongoing basis, and requires clients to deposit additional cash or other collateral, or to reduce positions, when appropriate. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets.

(g)Excludes cash placed with banks of $502.8 billion and $556.6 billion, as of September 30, 2023 and December 31, 2022, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks.

(h)Credit exposure is net of risk participations and excludes the benefit of credit derivatives used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables.

(i)Included credit exposure associated with First Republic consisting of $103.3 billion in the Consumer, excluding credit card portfolio, and $95.2 billion in the Wholesale portfolio predominantly in Asset Managers, Real Estate, and Individuals and Individual Entities.

(j)Represents lending-related financial instruments.

123

Note 5 – Derivative instruments

JPMorgan Chase makes markets in derivatives for clients and also uses derivatives to hedge or manage its own risk exposures. Refer to Note 5 of JPMorgan Chase’s 2022 Form 10-K for a further discussion of the Firm’s use of and accounting policies regarding derivative instruments.

The Firm’s disclosures are based on the accounting treatment and purpose of these derivatives. A limited number of the Firm’s derivatives are designated in hedge

accounting relationships and are disclosed according to the type of hedge (fair value hedge, cash flow hedge, or net investment hedge). Derivatives not designated in hedge accounting relationships include certain derivatives that are used to manage risks associated with specified assets and liabilities (“specified risk management” positions) as well as derivatives used in the Firm’s market-making businesses or for other purposes.

The following table outlines the Firm’s primary uses of derivatives and the related hedge accounting designation or disclosure category.

Type of Derivative

Use of Derivative

Designation and disclosure

Affected
segment or unit

10-Q page reference

Manage specifically identified risk exposures in qualifying hedge accounting relationships:

•Interest rate

Hedge fixed rate assets and liabilities

Fair value hedge

Corporate

130-131

•Interest rate

Hedge floating-rate assets and liabilities

Cash flow hedge

Corporate

132

•Foreign exchange

Hedge foreign currency-denominated assets and liabilities

Fair value hedge

Corporate

130-131

•Foreign exchange

Hedge foreign currency-denominated forecasted revenue and expense

Cash flow hedge

Corporate

132

•Foreign exchange

Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entities

Net investment hedge

Corporate

133

•Commodity

Hedge commodity inventory

Fair value hedge

CIB, AWM

130-131

Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships:

•Interest rate

Manage the risk associated with mortgage commitments, warehouse loans and MSRs

Specified risk management

CCB

134

•Credit

Manage the credit risk associated with wholesale lending exposures

Specified risk management

CIB

134

•Interest rate and foreign exchange

Manage the risk associated with certain other specified assets and liabilities

Specified risk management

Corporate

134

Market-making derivatives and other activities:

•Various

Market-making and related risk management

Market-making and other

CIB

134

•Various

Other derivatives

Market-making and other

CIB, AWM, Corporate

134

124

Notional amount of derivative contracts

The following table summarizes the notional amount of free-standing derivative contracts outstanding as of September 30, 2023 and December 31, 2022.


	Notional amounts(b)
(in billions)	September 30, 2023		December 31, 2022
Interest rate contracts
Swaps	$	26,430	$	24,491
Futures and forwards	2,934		2,636
Written options	3,324		3,047
Purchased options	3,349		2,992
Total interest rate contracts	36,037		33,166
Credit derivatives(a)	1,275		1,132
Foreign exchange contracts
Cross-currency swaps	4,417		4,196
Spot, futures and forwards	8,669		7,017
Written options	851		775
Purchased options	819		759
Total foreign exchange contracts	14,756		12,747
Equity contracts
Swaps	667		618
Futures and forwards	90		110
Written options	796		636
Purchased options	734		580
Total equity contracts	2,287		1,944
Commodity contracts
Swaps	133		136
Spot, futures and forwards	152		136
Written options	129		117
Purchased options	106		98
Total commodity contracts	520		487
Total derivative notional amounts	$	54,875	$	49,476

(a)Refer to the Credit derivatives discussion on page 135 for more information on volumes and types of credit derivative contracts.

(b)Represents the sum of gross long and gross short third-party notional derivative contracts.

While the notional amounts disclosed above give an indication of the volume of the Firm’s derivatives activity, the notional amounts significantly exceed, in the Firm’s view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged; it is simply a reference amount used to calculate payments.

125

Impact of derivatives on the Consolidated balance sheets

The following table summarizes information on derivative receivables and payables (before and after netting adjustments) that are reflected on the Firm’s Consolidated balance sheets as of September 30, 2023 and December 31, 2022, by accounting designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships or not) and contract type.


Free-standing derivative receivables and payables(a)
	Gross derivative receivables								Gross derivative payables
September 30, 2023 (in millions)	Not designated as hedges		Designated as hedges		Total derivative receivables		Net derivative receivables(b)		Not designated as hedges		Designated as hedges		Total derivative payables		Net derivative payables(b)
Trading assets and liabilities
Interest rate	$	290,941	$	—	$	290,941	$	31,097	$	277,798	$	7	$	277,805	$	15,974
Credit	11,616		—		11,616		1,318		11,375		—		11,375		882
Foreign exchange	235,863		1,453		237,316		22,608		233,104		1,320		234,424		12,905
Equity	58,178		—		58,178		5,720		62,329		—		62,329		6,905
Commodity	17,214		254		17,468		6,327		17,445		112		17,557		5,297
Total fair value of trading assets and liabilities	$	613,812	$	1,707	$	615,519	$	67,070	$	602,051	$	1,439	$	603,490	$	41,963

	Gross derivative receivables								Gross derivative payables
December 31, 2022 (in millions)	Not designated as hedges		Designated as hedges		Total derivative receivables		Net derivative receivables(b)		Not designated as hedges		Designated as hedges		Total derivative payables		Net derivative payables(b)
Trading assets and liabilities
Interest rate	$	300,411	$	4	$	300,415	$	28,419	$	290,291	$	—	$	290,291	$	15,970
Credit	10,329		—		10,329		1,090		9,971		—		9,971		754
Foreign exchange	239,946		1,633		241,579		23,365		248,911		2,610		251,521		18,856
Equity	61,913		—		61,913		9,139		62,461		—		62,461		8,804
Commodity	23,652		1,705		25,357		8,867		20,758		2,511		23,269		6,757
Total fair value of trading assets and liabilities	$	636,251	$	3,342	$	639,593	$	70,880	$	632,392	$	5,121	$	637,513	$	51,141

(a)Balances exclude structured notes for which the fair value option has been elected. Refer to Note 3 for further information.

(b)As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral receivables and payables when a legally enforceable master netting agreement exists.

126

Derivatives netting

The following tables present, as of September 30, 2023 and December 31, 2022, gross and net derivative receivables and payables by contract and settlement type. Derivative receivables and payables, as well as the related cash collateral from the same counterparty, have been netted on the Consolidated balance sheets where the Firm has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the Consolidated balance sheets, and those derivative receivables and payables are shown separately in the tables below.

In addition to the cash collateral received and transferred that is presented on a net basis with derivative receivables and payables, the Firm receives and transfers additional collateral (financial instruments and cash). These amounts mitigate counterparty credit risk associated with the Firm’s derivative instruments, but are not eligible for net presentation:

•collateral that consists of liquid securities and other cash collateral held at third-party custodians, which are shown separately as “Collateral not nettable on the Consolidated balance sheets” in the tables below, up to the fair value exposure amount. For the purpose of this disclosure, the definition of liquid securities is consistent with the definition of high quality liquid assets as defined in the LCR rule;

•the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables below; and

•collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables below.


	September 30, 2023							December 31, 2022
(in millions)	Gross derivative receivables		Amounts netted on the Consolidated balance sheets		Net derivative receivables			Gross derivative receivables		Amounts netted on the Consolidated balance sheets		Net derivative receivables
U.S. GAAP nettable derivative receivables
Interest rate contracts:
Over-the-counter (“OTC”)	$	201,719	$	(172,743)	$	28,976		$	203,922	$	(178,261)	$	25,661
OTC–cleared	86,803		(86,563)		240			93,800		(93,424)		376
Exchange-traded(a)	543		(538)		5			559		(311)		248
Total interest rate contracts	289,065		(259,844)		29,221			298,281		(271,996)		26,285
Credit contracts:
OTC	8,807		(7,725)		1,082			8,474		(7,535)		939
OTC–cleared	2,618		(2,573)		45			1,746		(1,704)		42
Total credit contracts	11,425		(10,298)		1,127			10,220		(9,239)		981
Foreign exchange contracts:
OTC	234,022		(214,033)		19,989			237,941		(216,796)		21,145
OTC–cleared	699		(664)		35			1,461		(1,417)		44
Exchange-traded(a)	13		(11)		2			15		(1)		14
Total foreign exchange contracts	234,734		(214,708)		20,026			239,417		(218,214)		21,203
Equity contracts:
OTC	24,226		(21,392)		2,834			30,323		(25,665)		4,658
Exchange-traded(a)	32,140		(31,066)		1,074			28,467		(27,109)		1,358
Total equity contracts	56,366		(52,458)		3,908			58,790		(52,774)		6,016
Commodity contracts:
OTC	9,611		(5,130)		4,481			14,430		(7,633)		6,797
OTC–cleared	126		(118)		8			120		(112)		8
Exchange-traded(a)	5,899		(5,893)		6			9,103		(8,745)		358
Total commodity contracts	15,636		(11,141)		4,495			23,653		(16,490)		7,163
Derivative receivables with appropriate legal opinion	607,226		(548,449)		58,777		(d)	630,361		(568,713)		61,648		(d)
Derivative receivables where an appropriate legal opinion has not been either sought or obtained	8,293				8,293			9,232				9,232
Total derivative receivables recognized on the Consolidated balance sheets	$	615,519			$	67,070		$	639,593			$	70,880
Collateral not nettable on the Consolidated balance sheets(b)(c)					(27,832)							(23,014)
Net amounts					$	39,238						$	47,866

127


	September 30, 2023							December 31, 2022
(in millions)	Gross derivative payables		Amounts netted on the Consolidated balance sheets		Net derivative payables			Gross derivative payables		Amounts netted on the Consolidated balance sheets		Net derivative payables
U.S. GAAP nettable derivative payables
Interest rate contracts:
OTC	$	185,270	$	(171,572)	$	13,698		$	190,108	$	(176,890)	$	13,218
OTC–cleared	89,861		(89,739)		122			97,417		(97,126)		291
Exchange-traded(a)	520		(520)		—			327		(305)		22
Total interest rate contracts	275,651		(261,831)		13,820			287,852		(274,321)		13,531
Credit contracts:
OTC	8,947		(8,140)		807			8,054		(7,572)		482
OTC–cleared	2,353		(2,353)		—			1,674		(1,645)		29
Total credit contracts	11,300		(10,493)		807			9,728		(9,217)		511
Foreign exchange contracts:
OTC	231,710		(220,852)		10,858			246,457		(231,248)		15,209
OTC–cleared	749		(665)		84			1,488		(1,417)		71
Exchange-traded(a)	5		(2)		3			20		—		20
Total foreign exchange contracts	232,464		(221,519)		10,945			247,965		(232,665)		15,300
Equity contracts:
OTC	26,659		(24,354)		2,305			29,833		(26,554)		3,279
Exchange-traded(a)	32,967		(31,070)		1,897			28,291		(27,103)		1,188
Total equity contracts	59,626		(55,424)		4,202			58,124		(53,657)		4,467
Commodity contracts:
OTC	8,850		(6,235)		2,615			11,954		(7,642)		4,312
OTC–cleared	109		(109)		—			112		(112)		—
Exchange-traded(a)	6,147		(5,916)		231			9,021		(8,758)		263
Total commodity contracts	15,106		(12,260)		2,846			21,087		(16,512)		4,575
Derivative payables with appropriate legal opinion	594,147		(561,527)		32,620		(d)	624,756		(586,372)		38,384		(d)
Derivative payables where an appropriate legal opinion has not been either sought or obtained	9,343				9,343			12,757				12,757
Total derivative payables recognized on the Consolidated balance sheets	$	603,490			$	41,963		$	637,513			$	51,141
Collateral not nettable on the Consolidated balance sheets(b)(c)					(4,382)							(3,318)
Net amounts					$	37,581						$	47,823

(a)Exchange-traded derivative balances that relate to futures contracts are settled daily.

(b)Includes liquid securities and other cash collateral held at third-party custodians related to derivative instruments where an appropriate legal opinion has been obtained. For some counterparties, the collateral amounts of financial instruments may exceed the derivative receivables and derivative payables balances. Where this is the case, the total amount reported is limited to the net derivative receivables and net derivative payables balances with that counterparty.

(c)Derivative collateral relates only to OTC and OTC-cleared derivative instruments.

(d)Net derivatives receivable included cash collateral netted of $57.8 billion and $51.5 billion at September 30, 2023 and December 31, 2022, respectively. Net derivatives payable included cash collateral netted of $70.9 billion and $69.2 billion at September 30, 2023 and December 31, 2022, respectively. Derivative cash collateral relates to OTC and OTC-cleared derivative instruments.

128

Liquidity risk and credit-related contingent features

Refer to Note 5 of JPMorgan Chase’s 2022 Form 10-K for a more detailed discussion of liquidity risk and credit-related contingent features related to the Firm’s derivative contracts.

The following table shows the aggregate fair value of net derivative payables related to OTC and OTC-cleared derivatives that contain contingent collateral or termination features that may be triggered upon a ratings downgrade, and the associated collateral the Firm has posted in the normal course of business, at September 30, 2023 and December 31, 2022.


OTC and OTC-cleared derivative payables containing downgrade triggers
(in millions)	September 30, 2023			December 31, 2022
Aggregate fair value of net derivative payables		$	14,023		$	16,023
Collateral posted		13,990			15,505

The following table shows the impact of a single-notch and two-notch downgrade of the long-term issuer ratings of JPMorgan Chase & Co. and its subsidiaries, predominantly JPMorgan Chase Bank, N.A., at September 30, 2023 and December 31, 2022, related to OTC and OTC-cleared derivative contracts with contingent collateral or termination features that may be triggered upon a ratings downgrade. Derivatives contracts generally require additional collateral to be posted or terminations to be triggered when the predefined rating threshold is breached. A downgrade by a single rating agency that does not result in a rating lower than a preexisting corresponding rating provided by another major rating agency will generally not result in additional collateral (except in certain instances in which additional initial margin may be required upon a ratings downgrade), nor in termination payment requirements. The liquidity impact in the table is calculated based upon a downgrade below the lowest current rating of the rating agencies referred to in the derivative contract.


Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives
	September 30, 2023				December 31, 2022
(in millions)	Single-notch downgrade		Two-notch downgrade		Single-notch downgrade		Two-notch downgrade
Amount of additional collateral to be posted upon downgrade(a)	$	111	$	1,335	$	128	$	1,293
Amount required to settle contracts with termination triggers upon downgrade(b)	98		725		88		925

(a)Includes the additional collateral to be posted for initial margin.

(b)Amounts represent fair values of derivative payables, and do not reflect collateral posted.

Derivatives executed in contemplation of a sale of the underlying financial asset

In certain instances the Firm enters into transactions in which it transfers financial assets but maintains the economic exposure to the transferred assets by entering into a derivative with the same counterparty in contemplation of the initial transfer. The Firm generally accounts for such transfers as collateralized financing transactions as described in Note 11, but in limited circumstances they may qualify to be accounted for as a sale and a derivative under U.S. GAAP. The amount of such transfers accounted for as a sale where the associated derivative was outstanding was not material at both September 30, 2023 and December 31, 2022.

129

Impact of derivatives on the Consolidated statements of income

The following tables provide information related to gains and losses recorded on derivatives based on their hedge accounting designation or purpose.

Fair value hedge gains and losses

The following tables present derivative instruments, by contract type, used in fair value hedge accounting relationships, as well as pre-tax gains/(losses) recorded on such derivatives and the related hedged items for the three and nine months ended September 30, 2023 and 2022, respectively. The Firm includes gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the related hedged item.


	Gains/(losses) recorded in income						Income statement impact of excluded components(e)				OCI impact
Three months ended September 30, 2023 (in millions)	Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
Contract type
Interest rate(a)(b)	$	620	$	(577)	$	43	$	—	$	61	$	—
Foreign exchange(c)	(18)		71		53		(145)		53		(7)
Commodity(d)	938		(799)		139		—		145		—
Total	$	1,540	$	(1,305)	$	235	$	(145)	$	259	$	(7)


	Gains/(losses) recorded in income						Income statement impact of excluded components(e)				OCI impact
Three months ended September 30, 2022 (in millions)	Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
Contract type
Interest rate(a)(b)	$	(2,947)	$	2,819	$	(128)	$	—	$	(93)	$	—
Foreign exchange(c)	(1,044)		1,082		38		(170)		39		50
Commodity(d)	5,000		(4,992)		8		—		26		—
Total	$	1,009	$	(1,091)	$	(82)	$	(170)	$	(28)	$	50


	Gains/(losses) recorded in income						Income statement impact of excluded components(e)				OCI impact
Nine months ended September 30, 2023 (in millions)	Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
Contract type
Interest rate(a)(b)	$	1,641	$	(1,516)	$	125	$	—	$	75	$	—
Foreign exchange(c)	394		(211)		183		(474)		183		(20)
Commodity(d)	(180)		536		356		—		362		—
Total	$	1,855	$	(1,191)	$	664	$	(474)	$	620	$	(20)


	Gains/(losses) recorded in income						Income statement impact of excluded components(e)				OCI impact
Nine months ended September 30, 2022 (in millions)	Derivatives		Hedged items		Income statement impact		Amortization approach		Changes in fair value		Derivatives - Gains/(losses) recorded in OCI(f)
Contract type
Interest rate(a)(b)	$	(14,484)	$	14,167	$	(317)	$	—	$	(238)	$	—
Foreign exchange(c)	(2,552)		2,600		48		(350)		49		262
Commodity(d)	3,288		(3,381)		(93)		—		(84)		—
Total	$	(13,748)	$	13,386	$	(362)	$	(350)	$	(273)	$	262

(a)Primarily consists of hedges of the benchmark (e.g., Secured Overnight Financing Rate (“SOFR”)) interest rate risk of fixed-rate long-term debt and AFS securities. Gains and losses were recorded in net interest income.

(b)Includes the amortization of income/expense associated with the inception hedge accounting adjustment applied to the hedged item. Excludes the accrual of interest on interest rate swaps and the related hedged items.

(c)Primarily consists of hedges of the foreign currency risk of long-term debt and AFS securities for changes in spot foreign currency rates. Gains and losses related to the derivatives and the hedged items due to changes in foreign currency rates and the income statement impact of excluded components were recorded primarily in principal transactions revenue and net interest income.

(d)Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or net realizable value (net realizable value approximates fair value). Gains and losses were recorded in principal transactions revenue.

(e)The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such as forward points on foreign exchange forward contracts, time values and cross-currency basis spreads. Excluded components may impact earnings either through amortization of the initial amount over the life of the derivative, or through fair value changes recognized in the current period.

(f)Represents the change in value of amounts excluded from the assessment of effectiveness under the amortization approach, predominantly cross-currency basis spreads. The amount excluded at inception of the hedge is recognized in earnings over the life of the derivative.

130

As of September 30, 2023 and December 31, 2022, the following amounts were recorded on the Consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the income statement in future periods as an adjustment to yield.


	Carrying amount of the hedged items(a)(b)			Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:
September 30, 2023 (in millions)				Active hedging relationships(d)		Discontinued hedging relationships(d)(e)		Total
Assets
Investment securities - AFS	$	129,501	(c)	$	(5,006)	$	(3,636)	$	(8,642)
Liabilities
Long-term debt	180,160			(7,717)		(9,191)		(16,908)

	Carrying amount of the hedged items(b)(c)			Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:
December 31, 2022 (in millions)				Active hedging relationships(d)		Discontinued hedging relationships(d)(e)		Total
Assets
Investment securities - AFS	$	84,073	(c)	$	(4,149)	$	(1,542)	$	(5,691)
Liabilities
Long-term debt	175,257			(11,879)		(3,313)		(15,192)

(a)Excludes physical commodities with a carrying value of $11.9 billion and $26.0 billion at September 30, 2023 and December 31, 2022, respectively, to which the Firm applies fair value hedge accounting. As a result of the application of hedge accounting, these inventories are carried at fair value, thus recognizing unrealized gains and losses in current periods. Since the Firm exits these positions at fair value, there is no incremental impact to net income in future periods.

(b)Excludes hedged items where only foreign currency risk is the designated hedged risk, as basis adjustments related to foreign currency hedges will not reverse through the income statement in future periods. At September 30, 2023 and December 31, 2022, the carrying amount excluded for AFS securities is $24.9 billion and $20.3 billion, respectively, and for long-term debt is $209 million and $221 million, respectively.

(c)Carrying amount represents the amortized cost, net of allowance if applicable. Effective January 1, 2023, the Firm adopted the new portfolio layer method hedge accounting guidance which expanded the ability to hedge a portfolio of prepayable assets to allow more of the portfolio to be hedged. At September 30, 2023, the amortized cost of the portfolio layer method closed portfolios was $64.9 billion, of which $63.5 billion was designated as hedged. The cumulative amount of basis adjustments was $(3.1) billion, reflecting $(2.9) billion and $(207) million for active and discontinued hedging relationships, respectively. Refer to Note 1 and Note 10 for additional information.

(d)Positive (negative) amounts related to assets represent cumulative fair value hedge basis adjustments that will reduce (increase) net interest income in future periods. Positive (negative) amounts related to liabilities represent cumulative fair value hedge basis adjustments that will increase (reduce) net interest income in future periods.

(e)Represents basis adjustments existing on the balance sheet date associated with hedged items that have been de-designated from qualifying fair value hedging relationships.

131

Cash flow hedge gains and losses

The following tables present derivative instruments, by contract type, used in cash flow hedge accounting relationships, and the pre-tax gains/(losses) recorded on such derivatives, for the three and nine months ended September 30, 2023 and 2022, respectively. The Firm includes the gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the change in cash flows on the related hedged item.


	Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Three months ended September 30, 2023 (in millions)	Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Contract type
Interest rate(a)	$	(514)	$	(1,087)	$	(573)
Foreign exchange(b)	71		(122)		(193)
Total	$	(443)	$	(1,209)	$	(766)

	Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Three months ended September 30, 2022 (in millions)	Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Contract type
Interest rate(a)	$	(160)	$	(2,279)	$	(2,119)
Foreign exchange(b)	(118)		(232)		(114)
Total	$	(278)	$	(2,511)	$	(2,233)

	Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Nine months ended September 30, 2023 (in millions)	Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Contract type
Interest rate(a)	$	(1,416)	$	(1,825)	$	(409)
Foreign exchange(b)	25		64		39
Total	$	(1,391)	$	(1,761)	$	(370)

	Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Nine months ended September 30, 2022 (in millions)	Amounts reclassified from AOCI to income		Amounts recorded in OCI		Total change in OCI for period
Contract type
Interest rate(a)	$	169	$	(7,149)	$	(7,318)
Foreign exchange(b)	(186)		(548)		(362)
Total	$	(17)	$	(7,697)	$	(7,680)

(a)Primarily consists of hedges of SOFR-indexed floating-rate assets. Gains and losses were recorded in net interest income.

(b)Primarily consists of hedges of the foreign currency risk of non-U.S. dollar-denominated revenue and expense. The income statement classification of gains and losses follows the hedged item – primarily noninterest revenue and compensation expense.

The Firm did not experience any forecasted transactions that failed to occur for the three and nine months ended September 30, 2023 and 2022.

Over the next 12 months, the Firm expects that approximately $(1.7) billion (after-tax) of net losses recorded in AOCI at September 30, 2023, related to cash flow hedges will be recognized in income. For cash flow hedges that have been terminated, the maximum length of time over which the derivative results recorded in AOCI will be recognized in earnings is approximately seven years, corresponding to the timing of the originally hedged forecasted cash flows. For open cash flow hedges, the maximum length of time over which forecasted transactions are hedged is approximately seven years. The Firm’s longer-dated forecasted transactions relate to core lending and borrowing activities.

132

Net investment hedge gains and losses

The following table presents hedging instruments, by contract type, that were used in net investment hedge accounting relationships, and the pre-tax gains/(losses) recorded on such instruments for the three and nine months ended September 30, 2023 and 2022.


	Gains/(losses) recorded in income and other comprehensive income/(loss)
	2023					2022
Three months ended September 30, (in millions)	Amounts recorded in income(a)(b)			Amounts recorded in OCI		Amounts recorded in income(a)(b)			Amounts recorded in OCI
Foreign exchange derivatives		$	26	$	1,650		$	26	$	2,992

	Gains/(losses) recorded in income and other comprehensive income/(loss)
	2023					2022
Nine months ended September 30, (in millions)	Amounts recorded in income(a)(b)			Amounts recorded in OCI		Amounts recorded in income(a)(b)			Amounts recorded in OCI
Foreign exchange derivatives		$	231	$	558		$	(221)	$	6,850

(a)Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points on foreign exchange forward contracts. The Firm elects to record changes in fair value of these amounts directly in other income.

(b)Excludes amounts reclassified from AOCI to income on the sale or liquidation of hedged entities. During the nine months ended September 30, 2023, the Firm reclassified a net pre-tax loss of $(38) million to other revenue predominantly related to the acquisition of CIFM. The amounts reclassified for the three months ended September 30, 2023 and nine months ended September 30, 2022 were not material. Refer to Note 21 for further information.

133

Gains and losses on derivatives used for specified risk management purposes

The following table presents pre-tax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from mortgage commitments, warehouse loans, MSRs, wholesale lending exposures, and foreign currency-denominated assets and liabilities.


	Derivatives gains/(losses) recorded in income
	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Contract type
Interest rate(a)	$	(259)	$	(215)	$	(385)	$	(753)
Credit(b)	(39)		(17)		(202)		105
Foreign exchange(c)	(22)		(3)		21		(79)
Total	$	(320)	$	(235)	$	(566)	$	(727)

(a)Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in mortgage commitments, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income.

(b)Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm’s wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue.

(c)Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue.

Gains and losses on derivatives related to market-making activities and other derivatives

The Firm makes markets in derivatives in order to meet the needs of customers and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. All derivatives not included in the hedge accounting or specified risk management categories above are included in this category. Gains and losses on these derivatives are primarily recorded in principal transactions revenue. Refer to Note 6 for information on principal transactions revenue.

134

Credit derivatives

Refer to Note 5 of JPMorgan Chase’s 2022 Form 10-K for a more detailed discussion of credit derivatives. The following tables present a summary of the notional amounts of credit derivatives and credit-related notes the Firm sold and purchased as of September 30, 2023 and December 31, 2022. The Firm does not use notional amounts of credit derivatives as the primary measure of risk management for such derivatives, because the notional amount does not take into account the probability of the occurrence of a credit event, the recovery value of the reference obligation, or related cash instruments and economic hedges, each of which reduces, in the Firm’s view, the risks associated with such derivatives.

Total credit derivatives and credit-related notes


	Maximum payout/Notional amount
September 30, 2023 (in millions)	Protection sold		Protection purchased with identical underlyings(c)			Net protection (sold)/purchased(d)		Other protection purchased(e)
Credit derivatives
Credit default swaps	$	(561,857)		$	581,432	$	19,575	$	4,536
Other credit derivatives(a)	(46,909)			54,830		7,921		25,537
Total credit derivatives	(608,766)			636,262		27,496		30,073
Credit-related notes(b)	—			—		—		7,520
Total	$	(608,766)		$	636,262	$	27,496	$	37,593

	Maximum payout/Notional amount
December 31, 2022 (in millions)	Protection sold		Protection purchased with identical underlyings(c)			Net protection (sold)/purchased(d)		Other protection purchased(e)
Credit derivatives
Credit default swaps	$	(495,557)		$	509,846	$	14,289	$	2,917
Other credit derivatives(a)	(47,165)			65,029		17,864		11,746
Total credit derivatives	(542,722)			574,875		32,153		14,663
Credit-related notes(b)	—			—		—		7,863
Total	$	(542,722)		$	574,875	$	32,153	$	22,526

(a)Other credit derivatives predominantly consist of credit swap options and total return swaps.

(b)Represents Other protection purchased by CIB, primarily in its market-making businesses.

(c)Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may be greater or lower than the notional amount of protection sold.

(d)Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the seller of protection pays to the buyer of protection in determining settlement value.

(e)Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any protection on the identical reference instrument.

The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit derivatives as of September 30, 2023 and December 31, 2022, where JPMorgan Chase is the seller of protection. The maturity profile is based on the remaining contractual maturity of the credit derivative contracts. The ratings profile is based on the rating of the reference entity on which the credit derivative contract is based. The ratings and maturity profile of credit derivatives where JPMorgan Chase is the purchaser of protection are comparable to the profile reflected below.


Protection sold — credit derivatives ratings(a)/maturity profile
September 30, 2023 (in millions)	<1 year		1–5 years		>5 years		Total notional amount		Fair value of receivables(b)		Fair value of payables(b)		Net fair value
Risk rating of reference entity
Investment-grade	$	(88,064)	$	(299,190)	$	(78,835)	$	(466,089)	$	3,584	$	(1,774)	$	1,810
Noninvestment-grade	(34,254)		(86,100)		(22,323)		(142,677)		2,072		(1,799)		273
Total	$	(122,318)	$	(385,290)	$	(101,158)	$	(608,766)	$	5,656	$	(3,573)	$	2,083


December 31, 2022 (in millions)	<1 year		1–5 years		>5 years		Total notional amount		Fair value of receivables(b)		Fair value of payables(b)		Net fair value
Risk rating of reference entity
Investment-grade	$	(90,484)	$	(294,791)	$	(30,822)	$	(416,097)	$	2,324	$	(1,495)	$	829
Noninvestment-grade	(33,244)		(87,011)		(6,370)		(126,625)		1,267		(3,209)		(1,942)
Total	$	(123,728)	$	(381,802)	$	(37,192)	$	(542,722)	$	3,591	$	(4,704)	$	(1,113)

(a)The ratings scale is primarily based on external credit ratings defined by S&P and Moody’s.

(b)Amounts are shown on a gross basis, before the benefit of legally enforceable master netting agreements including cash collateral netting.

135

Note 6 – Noninterest revenue and noninterest expense

Noninterest revenue

Refer to Note 6 of JPMorgan Chase’s 2022 Form 10-K for a discussion of the components of and accounting policies for the Firm’s noninterest revenue.

Investment banking fees

The following table presents the components of investment banking fees.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Underwriting
Equity	$	274	$	271	$	824	$	743
Debt	677		578		2,053		2,263
Total underwriting	951		849		2,877		3,006
Advisory	771		825		2,007		2,262
Total investment banking fees	$	1,722	$	1,674	$	4,884	$	5,268

Principal transactions

The following table presents all realized and unrealized gains and losses recorded in principal transactions revenue. This table excludes interest income and interest expense on trading assets and liabilities, which are an integral part of the overall performance of the Firm’s client-driven market-making activities in CIB and fund deployment activities in Treasury and CIO. Refer to Note 7 for further information on interest income and interest expense.

Trading revenue is presented primarily by instrument type. The Firm’s client-driven market-making businesses generally utilize a variety of instrument types in connection with their market-making and related risk-management activities; accordingly, the trading revenue presented in the table below is not representative of the total revenue of any individual LOB.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Trading revenue by instrument type
Interest rate(a)	$	1,383	$	1,092	$	4,950	$	1,937
Credit(b)	487		488		1,540		1,224		(c)
Foreign exchange	1,219		1,398		4,205		4,147
Equity	2,677		1,868		8,311		6,426
Commodity	450		562		1,744		1,808
Total trading revenue	6,216		5,408		20,750		15,542
Private equity losses	(6)		(25)		(15)		(64)
Principal transactions	$	6,210	$	5,383	$	20,735	$	15,478

(a)Includes the impact of changes in funding valuation adjustments on derivatives.

(b)Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities.

(c)Includes markdowns on held-for-sale positions, primarily unfunded commitments, in the bridge financing portfolio.

Lending- and deposit-related fees

The following table presents the components of lending- and deposit-related fees.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Lending-related fees(a)	$	777	$	379	$	1,736	$	1,103
Deposit-related fees	1,262		1,352		3,751		4,340
Total lending- and deposit-related fees	$	2,039	$	1,731	$	5,487	$	5,443

(a) Includes the amortization of the fair value discount on certain acquired lending-related commitments associated with First Republic, predominantly in AWM and CB. The discount is deferred in other liabilities and recognized on a straight-line basis over the commitment period. Refer to Note 28 for additional information.

Deposit-related fees include the impact of credits earned by clients that reduce such fees.

Asset management fees

The following table presents the components of asset management fees.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Asset management fees
Investment management fees(a)(b)	$	3,825	$	3,420	$	10,910	$	10,407
All other asset management fees(c)	79		75		233		257
Total asset management fees	$	3,904	$	3,495	$	11,143	$	10,664

(a)Represents fees earned from managing assets on behalf of the Firm’s clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts.

(b)Includes the impact of First Republic. Refer to Note 28 for additional information.

(c)Represents fees for services that are ancillary to investment management services, such as commissions earned on the sales or distribution of mutual funds to clients.

136

Commissions and other fees

The following table presents the components of commissions and other fees.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Commissions and other fees
Brokerage commissions(a)	$	692	$	648	$	2,161	$	2,196
Administration fees(b)	589		558		1,721		1,781
All other commissions and fees (c)	424		368		1,257		1,030
Total commissions and other fees	$	1,705	$	1,574	$	5,139	$	5,007

(a)Represents commissions earned when the Firm acts as a broker, by facilitating its clients’ purchases and sales of securities and other financial instruments.

(b)Predominantly includes fees for custody, securities lending, funds services and securities clearance.

(c)Includes travel-related and annuity sales commissions, depositary receipt-related service fees, as well as other service fees, which are recognized as revenue when the services are rendered.

Card income

The following table presents the components of card income.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Interchange and merchant processing income	$	7,914	$	7,166	$	22,938	$	20,615
Rewards costs and partner payments	(6,283)		(5,747)		(18,184)		(16,258)
Other card income(a)	(422)		(333)		(1,217)		(1,163)
Total card income	$	1,209	$	1,086	$	3,537	$	3,194

(a)Predominantly represents the amortization of account origination costs and annual fees.

Refer to Note 15 for further information on mortgage fees and related income.

Other income

This revenue category includes operating lease income, as well as losses associated with the Firm’s tax-oriented investments, predominantly alternative energy equity-method investments in CIB.

The following table presents certain components of other income:


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Operating lease income	$	695	$	870	$	2,166	$	2,863
Losses on tax-oriented investments(a)	(316)		(312)		(1,190)		(1,147)
Estimated bargain purchase gain associated with the First Republic acquisition(b)	100		—		2,812		—

Gain related to the acquisition of CIFM(c)	—		—		339

(a) The losses associated with these tax-oriented investments are more than offset by lower income tax expense from the associated tax credits.

(b) Refer to Note 28 for additional information on the First Republic acquisition.

Refer to Note 17 for information on operating lease income included within other income.

Noninterest expense

Other expense

Other expense on the Firm’s Consolidated statements of income includes the following:


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022			2023		2022
Legal expense	$	665	$	47		$	1,261	$	239


FDIC-related expense	342		209			997		623
First Republic-related expense(a)	244		—			843		—

(a) Included in the nine months ended September 30, 2023, were payments to the FDIC in the second quarter of 2023 with respect to First Republic individuals who were not employees of the Firm until July 2, 2023. Refer to Note 28 for additional information on the First Republic acquisition.

FDIC Special Assessment

In May 2023, the FDIC issued a notice of proposed rulemaking recommending a special assessment related to the systemic risk determination made on March 12, 2023, to recover losses to the Deposit Insurance Fund ("DIF") arising from the protection of uninsured depositors resulting from recent bank resolutions. In its current form, the rule would impose a special assessment at an annual rate of 12.5 basis points on certain banks’ estimated uninsured deposits reported as of December 31, 2022. The Firm expects to be subject to the special assessment as proposed by the FDIC.

137

Note 7 – Interest income and Interest expense

Refer to Note 7 of JPMorgan Chase’s 2022 Form 10-K for a description of JPMorgan Chase’s accounting policies regarding interest income and interest expense.

The following table presents the components of interest income and interest expense.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Interest income
Loans(a)	$	22,311	$	13,985	$	60,325	$	36,244
Taxable securities	4,513		2,696		12,674		6,964
Non-taxable securities(b)	360		236		951		726
Total investment securities(a)	4,873		2,932		13,625		7,690
Trading assets - debt instruments	4,164		2,390		11,823		6,206
Federal funds sold and securities purchased under resale agreements	3,951		1,413		10,849		2,353
Securities borrowed	2,085		772		5,667		858
Deposits with banks	5,270		3,015		15,278		4,332
All other interest-earning assets(c)	1,902		1,104		5,637		2,070
Total interest income	$	44,556	$	25,611	$	123,204	$	59,753
Interest expense
Interest-bearing deposits	$	10,796	$	3,159	$	28,024	$	4,239
Federal funds purchased and securities loaned or sold under repurchase agreements	3,523		1,194		9,727		1,752
Short-term borrowings(d)	512		228		1,361		385
Trading liabilities – debt and all other interest-bearing liabilities(e)	2,463		1,045		6,807		1,707
Long-term debt	4,239		2,405		11,428		5,042
Beneficial interest issued by consolidated VIEs	297		62		641		110
Total interest expense	$	21,830	$	8,093	$	57,988	$	13,235
Net interest income	$	22,726	$	17,518	$	65,216	$	46,518
Provision for credit losses	1,384		1,537		6,558		4,101
Net interest income after provision for credit losses	$	21,342	$	15,981	$	58,658	$	42,417

(a)Includes the amortization/accretion of unearned income (e.g., purchase premiums/discounts and net deferred fees/costs).

(b)Represents securities which are tax-exempt for U.S. federal income tax purposes.

(c)Includes interest earned on 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.

(d)Includes commercial paper.

(e)All other interest-bearing liabilities includes interest expense on brokerage-related customer payables.

138

Note 8 – Pension and other postretirement employee benefit plans

Refer to Note 8 of JPMorgan Chase’s 2022 Form 10-K for a discussion of JPMorgan Chase’s pension and OPEB plans.

The following table presents the net periodic benefit costs reported in the Consolidated statements of income for the Firm’s defined benefit pension, defined contribution and OPEB plans.


(in millions)	Three months ended September 30,					Nine months ended September 30,
	2023		2022				2023		2022
	Pension and OPEB plans				Pension and OPEB plans
Total net periodic defined benefit plan cost/(credit)	$	(104)	$	(11)		(a)	$	(292)	$	(150)	(a)
Total defined contribution plans	403		353				1,165		1,054
Total pension and OPEB cost included in noninterest expense	$	299	$	342			$	873	$	904

(a)Included a $58 million pension settlement loss. Refer to Note 8 of JPMorgan Chase's 2022 Form 10-K for additional information regarding the pension settlement.

As of September 30, 2023 and December 31, 2022, the fair values of plan assets for the Firm’s significant defined benefit pension and OPEB plans were $19.4 billion and $19.9 billion, respectively.

139

Note 9 – Employee share-based incentives

Refer to Note 9 of JPMorgan Chase’s 2022 Form 10-K for a discussion of the accounting policies and other information relating to employee share-based incentives.

The Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Cost of prior grants of restricted stock units (“RSUs”), performance share units (“PSUs”) and stock appreciation rights (“SARs”) that are amortized over their applicable vesting periods	$	363	$	292	$	1,169	$	941
Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees	419		392		1,317		1,368
Total noncash compensation expense related to employee share-based incentive plans	$	782	$	684	$	2,486	$	2,309

In the first quarter of 2023, in connection with its annual incentive grant for the 2022 performance year, the Firm granted 20 million RSUs and 801 thousand PSUs with weighted-average grant date fair values of $138.57 per RSU and $139.81 per PSU.

140

Note 10 – Investment securities

Investment securities consist of debt securities that are classified as AFS or HTM. Debt securities classified as trading assets are discussed in Note 2. Predominantly all of the Firm’s AFS and HTM securities are held by Treasury and CIO in connection with its asset-liability management activities. At September 30, 2023, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings).

Effective January 1, 2023, the Firm adopted the portfolio layer method hedge accounting guidance which permitted a transfer of HTM securities to AFS upon adoption. The Firm

transferred obligations of U.S. states and municipalities with a carrying value of $7.1 billion resulting in the recognition of $38 million net pre-tax unrealized losses in AOCI. This transfer was a noncash transaction. Refer to Note 1 and Note 21 for additional information.

During 2022, the Firm transferred $78.3 billion of investment securities from AFS to HTM for capital management purposes. AOCI included pretax unrealized losses of $4.8 billion on the securities at the date of transfer.

Refer to Note 10 of JPMorgan Chase’s 2022 Form 10-K for additional information regarding the investment securities portfolio.

The amortized costs and estimated fair values of the investment securities portfolio were as follows for the dates indicated.


	September 30, 2023									December 31, 2022
(in millions)	Amortized cost(c)(d)		Gross unrealized gains		Gross unrealized losses		Fair value			Amortized cost(c)(d)		Gross unrealized gains		Gross unrealized losses		Fair value
Available-for-sale securities
Mortgage-backed securities:
U.S. GSEs and government agencies	$	90,398	$	86	$	7,967	$	82,517		$	77,194	$	479	$	6,170	$	71,503
Residential:
U.S.	2,063		1		137		1,927			1,576		1		111		1,466
Non-U.S.	1,649		4		2		1,651			3,176		5		27		3,154
Commercial	2,723		1		166		2,558			2,113		—		155		1,958
Total mortgage-backed securities	96,833		92		8,272		88,653			84,059		485		6,463		78,081
U.S. Treasury and government agencies	54,823		237		1,701		53,359			95,217		302		3,459		92,060
Obligations of U.S. states and municipalities	21,648		66		2,052		19,662			7,103		86		403		6,786
Non-U.S. government debt securities	27,064		13		564		26,513			20,360		14		678		19,696
Corporate debt securities	218		—		24		194			381		—		24		357
Asset-backed securities:
Collateralized loan obligations	5,730		7		34		5,703			5,916		1		125		5,792
Other	3,075		4		44		3,035			3,152		2		69		3,085
Unallocated portfolio layer fair value basis adjustments(a)	(2,891)		—		(2,891)		NA			NA		NA		NA		NA
Total available-for-sale securities	206,500		419		9,800		197,119		(e)	216,188		890		11,221		205,857
Held-to-maturity securities(b)
Mortgage-backed securities:
U.S. GSEs and government agencies	107,718		—		17,696		90,022			113,492		35		13,709		99,818
U.S. Residential	9,979		1		1,413		8,567			10,503		3		1,244		9,262
Commercial	10,598		2		796		9,804			10,361		10		734		9,637
Total mortgage-backed securities	128,295		3		19,905		108,393			134,356		48		15,687		118,717
U.S. Treasury and government agencies	187,819		—		17,813		170,006			207,463		—		18,363		189,100
Obligations of U.S. states and municipalities	10,730		1		1,304		9,427			19,747		53		1,080		18,720
Asset-backed securities:
Collateralized loan obligations	59,487		64		531		59,020			61,414		4		1,522		59,896
Other	1,930		1		76		1,855			2,325		—		110		2,215
Total held-to-maturity securities	388,261		69		39,629		348,701			425,305		105		36,762		388,648
Total investment securities, net of allowance for credit losses	$	594,761	$	488	$	49,429	$	545,820		$	641,493	$	995	$	47,983	$	594,505

(a)Represents the amount of portfolio layer method basis adjustments related to AFS securities hedged in a closed portfolio. Under U.S. GAAP portfolio layer method basis adjustments are not allocated to individual securities, however the amounts impact the unrealized gains or losses in the table for the types of securities being hedged. Refer to Note 1 and Note 5 for additional information.

(b)There were no purchases of HTM securities for the three months ended September 30, 2023; the Firm purchased $4.1 billion of HTM securities for the nine months ended September 30, 2023, and $1.8 billion and $29.3 billion for the three and nine months ended September 30, 2022, respectively.

(c)The amortized cost of investment securities is reported net of allowance for credit losses of $117 million and $96 million at September 30, 2023 and December 31, 2022, respectively.

(d)Excludes $2.8 billion and $2.5 billion of accrued interest receivable at September 30, 2023 and December 31, 2022, respectively. The Firm did not reverse through interest income any accrued interest receivable for the three and nine months ended September 30, 2023 and 2022. Refer to Note 10 of JPMorgan Chase’s 2022 Form 10-K for further discussion of accounting policies for accrued interest receivable on investment securities.

(e)As of September 30, 2023, included $22.9 billion of AFS securities associated with First Republic. Refer to Note 28 for additional information.

141

AFS securities impairment

The following tables present the fair value and gross unrealized losses by aging category for AFS securities at September 30, 2023 and December 31, 2022. The tables exclude U.S. Treasury and government agency securities and U.S. GSE and government agency MBS with unrealized losses of $9.7 billion and $9.6 billion, at September 30, 2023 and December 31, 2022, respectively; changes in the value of these securities are generally driven by changes in interest rates rather than changes in their credit profile given the explicit or implicit guarantees provided by the U.S. government.


	Available-for-sale securities with gross unrealized losses
	Less than 12 months					12 months or more
September 30, 2023 (in millions)	Fair value			Gross unrealized losses		Fair value		Gross unrealized losses		Total fair value		Total gross unrealized losses
Available-for-sale securities
Mortgage-backed securities:
Residential:
U.S.	$	682		$	15	$	1,232	$	122	$	1,914	$	137
Non-U.S.	—			—		1,317		2		1,317		2
Commercial	480			7		1,751		159		2,231		166
Total mortgage-backed securities	1,162			22		4,300		283		5,462		305
Obligations of U.S. states and municipalities	15,200			1,585		2,285		467		17,485		2,052
Non-U.S. government debt securities	14,499			76		4,974		488		19,473		564
Corporate debt securities	13			1		83		23		96		24
Asset-backed securities:
Collateralized loan obligations	100			—		4,231		34		4,331		34
Other	672			14		1,600		30		2,272		44
Total available-for-sale securities with gross unrealized losses	$	31,646	(a)	$	1,698	$	17,473	$	1,325	$	49,119	$	3,023


	Available-for-sale securities with gross unrealized losses
	Less than 12 months				12 months or more
December 31, 2022 (in millions)	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Total fair value		Total gross unrealized losses
Available-for-sale securities
Mortgage-backed securities:
Residential:
U.S.	$	1,187	$	71	$	260	$	40	$	1,447	$	111
Non-U.S.	2,848		25		70		2		2,918		27
Commercial	1,131		74		813		81		1,944		155
Total mortgage-backed securities	5,166		170		1,143		123		6,309		293
Obligations of U.S. states and municipalities	3,051		241		364		162		3,415		403
Non-U.S. government debt securities	6,941		321		3,848		357		10,789		678
Corporate debt securities	150		2		207		22		357		24
Asset-backed securities:
Collateralized loan obligations	3,010		61		2,701		64		5,711		125
Other	2,586		51		256		18		2,842		69
Total available-for-sale securities with gross unrealized losses	$	20,904	$	846	$	8,519	$	746	$	29,423	$	1,592

(a)Includes the impact of First Republic, primarily obligations of U.S. states and municipalities. Refer to Note 28 for additional information.

142

HTM securities – credit risk

Credit quality indicator

The primary credit quality indicator for HTM securities is the risk rating assigned to each security. At September 30, 2023 and December 31, 2022, all HTM securities were rated investment grade and were current and accruing, with approximately 99% and 98% rated at least AA+, respectively.

Allowance for credit losses on investment securities

The allowance for credit losses on investment securities was $117 million and $61 million as of September 30, 2023 and 2022, respectively, which included a cumulative-effect adjustment to retained earnings related to the transfer of HTM securities to AFS for the nine months ended September 30, 2023.

Refer to Note 10 of JPMorgan Chase’s 2022 Form 10-K for further discussion of accounting policies for AFS and HTM securities.

Selected impacts of investment securities on the Consolidated statements of income


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Realized gains	$	16	$	88	$	345	$	170
Realized losses	(685)		(1,047)		(2,782)		(1,676)
Investment securities losses	$	(669)	$	(959)	$	(2,437)	$	(1,506)
Provision for credit losses	$	13	$	14	$	27	$	19

143

Contractual maturities and yields

The following table presents the amortized cost and estimated fair value at September 30, 2023, of JPMorgan Chase’s investment securities portfolio by contractual maturity.


By remaining maturity September 30, 2023 (in millions)	Due in one year or less			Due after one year through five years			Due after five years through 10 years			Due after 10 years(c)			Total
Available-for-sale securities
Mortgage-backed securities
Amortized cost	$	14		$	4,401		$	5,996		$	86,422		$	96,833
Fair value	15			4,241			5,881			78,516			88,653			(d)
Average yield(a)	2.16		%	4.87		%	6.21		%	4.54		%	4.66		%
U.S. Treasury and government agencies
Amortized cost	$	1		$	30,294		$	18,147		$	6,381		$	54,823
Fair value	1			29,643			18,146			5,569			53,359
Average yield(a)	5.47		%	5.16		%	6.37		%	7.14		%	5.77		%
Obligations of U.S. states and municipalities
Amortized cost	$	9		$	63		$	833		$	20,743		$	21,648
Fair value	9			61			806			18,786			19,662			(d)
Average yield(a)	3.63		%	3.03		%	4.29		%	5.88		%	5.81		%
Non-U.S. government debt securities
Amortized cost	$	15,132		$	4,367		$	3,680		$	3,885		$	27,064
Fair value	15,128			4,273			3,285			3,827			26,513
Average yield(a)	4.68		%	3.60		%	1.94		%	3.88		%	4.02		%
Corporate debt securities
Amortized cost	$	133		$	101		$	14		$	—		$	248
Fair value	81			100			13			—			194
Average yield(a)	16.24		%	9.80		%	4.10		%	—		%	12.95		%
Asset-backed securities
Amortized cost	$	14		$	1,136		$	3,692		$	3,963		$	8,805
Fair value	14			1,121			3,675			3,928			8,738			(d)
Average yield(a)	6.09		%	3.67		%	6.38		%	6.52		%	6.09		%

Total available-for-sale securities
Amortized cost(b)	$	15,303		$	40,362		$	32,362		$	121,394		$	209,421
Fair value	15,248			39,439			31,806			110,626			197,119			(d)
Average yield(a)	4.78		%	4.92		%	5.78		%	4.94		%	5.06		%
Held-to-maturity securities
Mortgage-backed securities
Amortized cost	$	100		$	4,850		$	9,354		$	114,039		$	128,343
Fair value	97			4,411			7,898			95,987			108,393
Average yield(a)	6.41		%	2.66		%	2.55		%	3.00		%	2.96		%
U.S. Treasury and government agencies
Amortized cost	$	64,545		$	74,372		$	48,902		$	—		$	187,819
Fair value	63,263			67,504			39,239			—			170,006
Average yield(a)	0.56		%	0.95		%	1.26		%	—		%	0.89		%
Obligations of U.S. states and municipalities
Amortized cost	$	—		$	—		$	485		$	10,284		$	10,769
Fair value	—			—			447			8,980			9,427
Average yield(a)	—		%	—		%	4.20		%	4.00		%	4.01		%
Asset-backed securities
Amortized cost	$	—		$	13		$	20,219		$	41,185		$	61,417
Fair value	—			13			20,097			40,765			60,875
Average yield(a)	—		%	6.49		%	6.24		%	6.34		%	6.31		%
Total held-to-maturity securities
Amortized cost(b)	$	64,645		$	79,235		$	78,960		$	165,508		$	388,348
Fair value	63,360			71,928			67,681			145,732			348,701
Average yield(a)	0.57		%	1.05		%	2.71		%	3.89		%	2.52		%

(a)Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of related hedging derivatives, including closed portfolio hedges. Taxable-equivalent amounts are used where applicable. The effective yield excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected maturities as certain securities may be prepaid. However, for certain callable debt securities, the average yield is calculated to the earliest call date.

(b)For purposes of this table, the amortized cost of available-for-sale securities excludes the allowance for credit losses of $(30) million and the portfolio layer fair value hedge basis adjustments of $(2.9) billion at September 30, 2023. The amortized cost of held-to-maturity securities also excludes the allowance for credit losses of $(87) million at September 30, 2023.

(c)Substantially all of the Firm’s U.S. residential MBS and collateralized mortgage obligations are due in 10 years or more, based on contractual maturity. The estimated weighted-average life, which reflects anticipated future prepayments, is approximately eight years for agency residential MBS, seven years for agency residential collateralized mortgage obligations, and six years for nonagency residential collateralized mortgage obligations.

(d)Includes AFS securities associated with First Republic, primarily due after 10 years. Refer to Note 28 for additional information.

144

Note 11 – Securities financing activities

Refer to Note 11 of JPMorgan Chase’s 2022 Form 10-K for a discussion of accounting policies relating to securities financing activities. Refer to Note 3 for further information regarding securities financing agreements for which the fair value option has been elected. Refer to Note 25 for further information regarding assets pledged and collateral received in securities financing agreements.

The table below summarizes the gross and net amounts of the Firm’s securities financing agreements as of September 30, 2023 and December 31, 2022. When the Firm has obtained an appropriate legal opinion with respect to a master netting agreement with a counterparty and where other relevant netting criteria under U.S. GAAP are met, the Firm nets, on the Consolidated balance sheets, the balances outstanding under its securities financing agreements with the same counterparty. In addition, the Firm exchanges securities and/or cash collateral with its counterparty to reduce the economic exposure with the counterparty, but such collateral is not eligible for net

Consolidated balance sheet presentation. Where the Firm has obtained an appropriate legal opinion with respect to the counterparty master netting agreement, such collateral, along with securities financing balances that do not meet all these relevant netting criteria under U.S. GAAP, is presented in the table below as “Amounts not nettable on the Consolidated balance sheets,” and reduces the “Net amounts” presented. Where a legal opinion has not been either sought or obtained, the securities financing balances are presented gross in the “Net amounts” below. In transactions where the Firm is acting as the lender in a securities-for-securities lending agreement and receives securities that can be pledged or sold as collateral, the Firm recognizes the securities received at fair value within other assets and the obligation to return those securities within accounts payable and other liabilities on the Consolidated balance sheets.


	September 30, 2023
(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets		Amounts presented on the Consolidated balance sheets		Amounts not nettable on the Consolidated balance sheets(b)		Net amounts(c)
Assets
Securities purchased under resale agreements	$	556,708	$	(206,711)	$	349,997	$	(339,936)		$	10,061
Securities borrowed	226,710		(38,431)		188,279		(137,150)			51,129
Liabilities
Securities sold under repurchase agreements	$	467,094	$	(206,711)	$	260,383	$	(224,365)		$	36,018
Securities loaned and other(a)	49,530		(38,431)		11,099		(10,866)			233


	December 31, 2022
(in millions)	Gross amounts		Amounts netted on the Consolidated balance sheets		Amounts presented on the Consolidated balance sheets		Amounts not nettable on the Consolidated balance sheets(b)		Net amounts(c)
Assets
Securities purchased under resale agreements	$	597,912	$	(282,411)	$	315,501	$	(304,120)		$	11,381
Securities borrowed	228,279		(42,910)		185,369		(131,578)			53,791
Liabilities
Securities sold under repurchase agreements	$	480,793	$	(282,411)	$	198,382	$	(167,427)		$	30,955
Securities loaned and other(a)	52,443		(42,910)		9,533		(9,527)			6

(a)Includes securities-for-securities lending agreements of $4.4 billion and $7.0 billion at September 30, 2023 and December 31, 2022, respectively, accounted for at fair value, where the Firm is acting as lender.

(b)In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the amounts reported in this column are limited to the related net asset or liability with that counterparty.

(c)Includes securities financing agreements that provide collateral rights, but where an appropriate legal opinion with respect to the master netting agreement has not been either sought or obtained. At September 30, 2023 and December 31, 2022, included $6.2 billion and $6.0 billion, respectively, of securities purchased under resale agreements; $46.7 billion and $49.0 billion, respectively, of securities borrowed; $34.1 billion and $29.1 billion, respectively, of securities sold under repurchase agreements; and $105 million and $2 million, respectively, of securities loaned and other.

145

The tables below present as of September 30, 2023 and December 31, 2022 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements.


	Gross liability balance
	September 30, 2023				December 31, 2022
(in millions)	Securities sold under repurchase agreements		Securities loaned and other		Securities sold under repurchase agreements		Securities loaned and other
Mortgage-backed securities
U.S. GSEs and government agencies	$	75,190	$	—	$	58,050	$	—
Residential - nonagency	1,979		—		2,414		—
Commercial - nonagency	2,387		—		2,007		—
U.S. Treasury, GSEs and government agencies	199,410		715		191,254		1,464
Obligations of U.S. states and municipalities	1,777		—		1,735		5
Non-U.S. government debt	115,837		2,276		155,156		1,259
Corporate debt securities	39,542		991		37,121		461
Asset-backed securities	3,155		—		2,981		—
Equity securities	27,817		45,548		30,075		49,254
Total	$	467,094	$	49,530	$	480,793	$	52,443


	Remaining contractual maturity of the agreements
	Overnight and continuous						Greater than 90 days
September 30, 2023 (in millions)			Up to 30 days		30 – 90 days				Total
Total securities sold under repurchase agreements	$	248,186	$	105,278	$	34,859	$	78,771	$	467,094
Total securities loaned and other	45,346		20		1		4,163		49,530


	Remaining contractual maturity of the agreements
	Overnight and continuous						Greater than 90 days
December 31, 2022 (in millions)			Up to 30 days		30 – 90 days				Total
Total securities sold under repurchase agreements	$	205,235	$	170,696	$	37,120	$	67,742	$	480,793
Total securities loaned and other	50,138		1,285		3		1,017		52,443

Transfers not qualifying for sale accounting

At September 30, 2023 and December 31, 2022, the Firm held $541 million and $692 million of financial assets for which the rights have been transferred to third parties; however, the transfers did not qualify as a sale in accordance with U.S. GAAP. These transfers have been recognized as collateralized financing transactions. The transferred assets are recorded in trading assets and loans, and the corresponding liabilities are recorded primarily in short-term borrowings and long-term debt on the Consolidated balance sheets.

146

Note 12 – Loans

Loan accounting framework

The accounting for a loan depends on management’s strategy for the loan. The Firm accounts for loans based on the following categories:

•Originated or purchased loans held-for-investment (i.e., “retained”)

•Loans held-for-sale

•Loans at fair value

Refer to Note 12 of JPMorgan Chase's 2022 Form 10-K for a detailed discussion of loans, including accounting policies. Refer to Note 3 of this Form 10-Q for further information on the Firm's elections of fair value accounting under the fair value option. Refer to Note 2 of this Form 10-Q for information on loans carried at fair value and classified as trading assets.

On January 1, 2023 the Firm adopted the Financial Instruments - Credit Losses: Troubled Debt Restructurings and Vintage Disclosures accounting guidance as discussed in Note 1. The adoption of this guidance eliminated the existing accounting and disclosure requirements for TDRs, and implemented additional disclosure requirements for FDMs. The disclosure requirements for FDMs are effective for periods beginning on or after January 1, 2023. Refer to Note 12 of JPMorgan Chase's 2022 Form 10-K for a detailed discussion on loan modifications prior to January 1, 2023, which were accounted for and reported as TDRs. This new guidance also requires disclosure of current period gross charge-offs by vintage origination year, effective for periods beginning on or after January 1, 2023.

Loan portfolio

The Firm’s loan portfolio is divided into three portfolio segments, which are the same segments used by the Firm to determine the allowance for loan losses: Consumer, excluding credit card; Credit card; and Wholesale. Within each portfolio segment the Firm monitors and assesses the credit risk in the following classes of loans, based on the risk characteristics of each loan class.

Consumer, excluding
credit card

Credit card

Wholesale(c)(d)

• Residential real estate(a)

• Auto and other(b)

• Credit card loans

• Secured by real estate

• Commercial and industrial

• Other(e)

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

(b)Includes scored auto, business banking loans and overdrafts in BWM and other consumer unsecured loans in CIB.

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

(d)The wholesale portfolio segment's classes align with loan classifications as defined by the bank regulatory agencies, based on the loan's collateral, purpose, and type of borrower.

(e)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB). Refer to Note 14 of JPMorgan Chase’s 2022 Form 10-K for more information on SPEs.

The following tables summarize the Firm’s loan balances by portfolio segment.


September 30, 2023	Consumer, excluding credit card			Credit card		Wholesale			Total(b)(c)
(in millions)
Retained	$	397,054	(a)	$	196,935	$	671,952	(a)	$	1,265,941
Held-for-sale	438			—		4,872			5,310
At fair value	11,277		(a)	—		27,531			38,808
Total	$	408,769		$	196,935	$	704,355		$	1,310,059

December 31, 2022	Consumer, excluding credit card			Credit card		Wholesale			Total(b)(c)
(in millions)
Retained	$	300,753		$	185,175	$	603,670		$	1,089,598
Held-for-sale	618			—		3,352			3,970
At fair value	10,004			—		32,075			42,079
Total	$	311,375		$	185,175	$	639,097		$	1,135,647

(a)Includes loans associated with First Republic consisting of $91.2 billion of retained loans and $1.8 billion of loans at fair value in consumer, excluding credit card and $53.8 billion of retained loans in wholesale.

(b)Excludes $6.5 billion and $5.2 billion of accrued interest receivables as of September 30, 2023 and December 31, 2022, respectively. Accrued interest receivables written off was not material for the three and nine months ended September 30, 2023 and 2022.

(c)Loans (other than those for which the fair value option has been elected) are presented net of unamortized discounts and premiums and net deferred loan fees or costs. These amounts were not material as of September 30, 2023 and December 31, 2022.

147

The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-for-sale during the periods indicated. Loans that were reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of this table.


	2023										2022
Three months ended September 30, (in millions)	Consumer, excluding credit card			Credit card		Wholesale			Total		Consumer, excluding credit card			Credit card		Wholesale		Total
Purchases	$	62	(b)(c)	$	—	$	539		$	601	$	447	(b)(c)	$	—	$	462	$	909
Sales	1,318			—		13,076			14,394		2,755			—		11,226		13,981
Retained loans reclassified to held-for-sale(a)	33			—		194			227		47			—		343		390

	2023										2022
Nine months ended September 30, (in millions)	Consumer, excluding credit card			Credit card		Wholesale			Total		Consumer, excluding credit card			Credit card		Wholesale		Total
Purchases	$	92,143	(b)(c)(d)	$	—	$	59,100	(d)	$	151,243	$	1,539	(b)(c)	$	—	$	856	$	2,395
Sales	1,756			—		31,956			33,712		2,884			—		32,938		35,822
Retained loans reclassified to held-for-sale(a)	157			—		1,279			1,436		189			—		1,031		1,220

(a)Reclassifications of loans to held-for-sale are non-cash transactions.

(b)Includes purchases of residential real estate loans, including the Firm’s voluntary repurchases of certain delinquent loans from loan pools as permitted by Government National Mortgage Association (“Ginnie Mae”) guidelines for the three and nine months ended September 30, 2023 and 2022. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, FHA, RHS, and/or VA.

(c)Excludes purchases of retained loans of $1.9 billion and $2.4 billion for the three months ended September 30, 2023 and 2022, and $4.2 billion and $11.6 billion for the nine months ended September 30, 2023 and 2022, respectively, which are predominantly sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards.

(d)Includes loans acquired in the First Republic acquisition consisting of $91.9 billion in Consumer, excluding credit card and $58.4 billion in Wholesale.

Gains and losses on sales of loans

Net gains/(losses) on sales of loans and lending-related commitments (including adjustments to record loans and lending-related commitments held-for-sale at the lower of cost or fair value) recognized in noninterest revenue for the three and nine months ended September 30, 2023, was $9 million and $46 million, respectively, of which $9 million and $52 million, respectively, related to loans. Net gains/(losses) on sales of loans and lending-related commitments for the three and nine months ended September 30, 2022, was $68 million and $(246) million, respectively, of which $(48) million and $(80) million, respectively, related to loans. In addition, the sale of loans may also result in write downs, recoveries or changes in the allowance recognized in the provision for credit losses.

148

Consumer, excluding credit card loan portfolio

Consumer loans, excluding credit card loans, consist primarily of scored residential mortgages, home equity loans and lines of credit, auto and business banking loans, with a focus on serving the prime consumer credit market. The portfolio also includes home equity loans secured by junior liens, prime mortgage loans with an interest-only payment period and certain payment-option loans that may result in negative amortization.

The following table provides information about retained consumer loans, excluding credit card, by class.


(in millions)	September 30, 2023			December 31, 2022
Residential real estate	$	327,635	(a)	$	237,561
Auto and other	69,419			63,192
Total retained loans	$	397,054		$	300,753

(a)Included $91.2 billion of loans associated with First Republic.

Delinquency rates are the primary credit quality indicator for consumer loans. Refer to Note 12 of JPMorgan Chase's 2022 Form 10-K for further information on consumer credit quality indicators.

149

Residential real estate

Delinquency is the primary credit quality indicator for retained residential real estate loans. The following tables provide information on delinquency and gross charge-offs for the nine months ended September 30, 2023.


(in millions, except ratios)	September 30, 2023
	Term loans by origination year(f)																		Revolving loans						Total
	2023			2022			2021			2020			2019			Prior to 2019			Within the revolving period			Converted to term loans
Loan delinquency(a)(b)
Current(c)	$	19,478		$	64,947		$	85,516		$	56,324		$	21,854		$	61,742		$	7,453		$	8,489		$	325,803
30–149 days past due	2			31			28			34			27			759			47			220			1,148
150 or more days past due	1			7			13			1			25			466			3			168			684
Total retained loans	$	19,481		$	64,985		$	85,557		$	56,359		$	21,906		$	62,967		$	7,503		$	8,877		$	327,635
% of 30+ days past due to total retained loans(d)(e)	0.02		%	0.06		%	0.05		%	0.06		%	0.24		%	1.92		%	0.67		%	4.37		%	0.55		%
Gross charge-offs	$	—		$	—		$	—		$	—		$	1		$	101		$	20		$	7		$	129


(in millions, except ratios)	December 31, 2022
	Term loans by origination year(f)																		Revolving loans						Total
	2022			2021			2020			2019			2018			Prior to 2018			Within the revolving period			Converted to term loans
Loan delinquency(a)(b)
Current	$	39,934		$	66,072		$	43,315		$	15,397		$	6,339		$	49,632		$	5,589		$	9,685		$	235,963
30–149 days past due	29			11			14			20			20			597			15			208			914
150 or more days past due	1			1			6			10			7			480			4			175			684
Total retained loans	$	39,964		$	66,084		$	43,335		$	15,427		$	6,366		$	50,709		$	5,608		$	10,068		$	237,561
% of 30+ days past due to total retained loans(d)	0.08		%	0.02		%	0.05		%	0.19		%	0.42		%	2.07		%	0.34		%	3.80		%	0.66		%

(a)Individual delinquency classifications include mortgage loans insured by U.S. government agencies which were not material at September 30, 2023 and December 31, 2022

(b)At September 30, 2023 and December 31, 2022, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent.

(c)Included $6.1 billion, $26.5 billion, $22.2 billion, $15.0 billion, $7.5 billion, and $11.3 billion of term loans originated in 2023, 2022, 2021, 2020, 2019 and prior to 2019, respectively, and $2.5 billion of revolving loans within the revolving period associated with First Republic.

(d)Excludes mortgage loans that are 30 or more days past due insured by U.S. government agencies which were not material at September 30, 2023 and December 31, 2022. These amounts have been excluded based upon the government guarantee.

(e)Included $165 million of 30+ days past due loans associated with First Republic.

(f)Purchased loans are included in the year in which they were originated.

Approximately 37% of the total revolving loans are senior lien loans; the remaining balance are junior lien loans. The lien position the Firm holds is considered in the Firm’s allowance for credit losses. Revolving loans that have been converted to term loans have higher delinquency rates than those that are still within the revolving period. That is primarily because the fully-amortizing payment that is generally required for those products is higher than the minimum payment options available for revolving loans within the revolving period.

150

Nonaccrual loans and other credit quality indicators

The following table provides information on nonaccrual and other credit quality indicators for retained residential real estate loans.


(in millions, except weighted-average data)	September 30, 2023				December 31, 2022
Nonaccrual loans(a)(b)(c)(d)(e)	$	3,604			$	3,745

Current estimated LTV ratios(f)(g)(h)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	169			$	2
Less than 660	4				—
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	330				174
Less than 660	8				6
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	10,813			(l)	12,034
Less than 660	197				184
Less than 80% and refreshed FICO scores:
Equal to or greater than 660	305,108			(l)	215,096
Less than 660	10,083			(l)	8,659
No FICO/LTV available	923				1,406			(k)
Total retained loans	$	327,635		(m)	$	237,561

Weighted average LTV ratio(f)(i)	50		%		51		%
Weighted average FICO(g)(i)	772				769

Geographic region(j)(k)
California	$	127,702		(n)	$	73,112
New York	49,126			(n)	34,471
Florida	22,671			(n)	18,870
Texas	15,517				14,968
Massachusetts	14,292			(n)	6,380
Illinois	10,990				11,296
Colorado	10,800				9,968
Washington	9,874				9,060
New Jersey	8,101				7,108
Connecticut	7,155				5,432
All other	51,407				46,896
Total retained loans	$	327,635			$	237,561

(a)Includes collateral-dependent residential real estate loans that are charged down to the fair value of the underlying collateral less costs to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower (“Chapter 7 loans”) as collateral-dependent nonaccrual loans, regardless of their delinquency status. At September 30, 2023, approximately 10% of Chapter 7 residential real estate loans were 30 days or more past due.

(b)Mortgage loans insured by U.S. government agencies excluded from nonaccrual loans were not material at September 30, 2023 and December 31, 2022.

(c)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative.

(d)Interest income on nonaccrual loans recognized on a cash basis was $44 million and $42 million and $133 million and $132 million for the three and nine months ended September 30, 2023 and 2022, respectively.

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

(f)Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.

(g)Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.

(h)Includes residential real estate loans, primarily held in LLCs in AWM that did not have a refreshed FICO score. These loans have been included in a FICO band based on management’s estimation of the borrower’s credit quality.

(i)Excludes loans with no FICO and/or LTV data available.

(j)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at September 30, 2023.

(k)Prior-period amounts have been revised to conform with the current presentation.

(l)Included $2.6 billion in equal to or greater than 660 FICO scores within 80% to 100% LTV ratio, and $86.3 billion and $1.7 billion in equal to or greater than 660 and less than 660 FICO scores, respectively, within less than 80% LTV ratio associated with First Republic.

(m)Included $91.2 billion of loans associated with First Republic.

(n)Included $55.2 billion, $15.0 billion, $3.6 billion and $7.9 billion in California, New York, Florida and Massachusetts, respectively, associated with First Republic.

151

Loan modifications

The Firm grants certain modifications of residential real estate loans to borrowers experiencing financial difficulty, which effective January 1, 2023, are reported as FDMs. The Firm's proprietary modification programs as well as government programs, including U.S. GSE programs, that generally provide various modifications to borrowers experiencing financial difficulty including, but not limited to, interest rate reductions, term extensions, other-than-insignificant payment delay and principal forgiveness that would otherwise have been required under the terms of the original agreement, are considered FDMs.

Financial effects of FDMs

For the three and nine months ended September 30, 2023, residential real estate FDMs were $43 million and $110 million, respectively. The financial effects of the FDMs, which were predominantly in the form of term extensions and interest rate reductions, included extending the weighted-average life of the loans by 22 years and 19 years, and reducing the weighted-average contractual interest rate from 7.22% to 4.63% and 7.04% to 4.24% for the three and nine months ended September 30, 2023, respectively. For the three and nine months ended September 30, 2023, there were no additional commitments to lend to borrowers experiencing financial difficulty whose loans have been modified as FDMs.

In addition to FDMs, the Firm also had $27 million and $59 million of loans subject to a trial modification, and $3 million and $7 million of Chapter 7 loans for the three and nine months ended September 30, 2023, respectively. The changes to the TDR accounting guidance eliminated the TDR reasonably expected and concession assessment criteria. Accordingly, trial modifications and Chapter 7 loans were considered TDRs, but not FDMs.

Payment status of FDMs and redefaults

For the three and nine months ended September 30, 2023, residential real estate FDMs of $6 million and $20 million, respectively, were 30 or more days past due.

For both the three and nine months ended September 30, 2023, FDMs that re-defaulted were not material.

Nature and extent of TDRs

For periods ending prior to January 1, 2023, modifications of residential real estate loans where the Firm granted concessions to borrowers who were experiencing financial difficulty were generally accounted for and reported as TDRs. For the three and nine months ended September 30, 2022, new TDRs were $80 million and $313 million, respectively. There were no additional commitments to lend to borrowers whose residential real estate loans have been modified in TDRs. Refer to Note 12 of JPMorgan Chase's 2022 Form 10-K for further information on TDRs.

The following table provides information about how residential real estate loans were modified in TDRs during the period presented.


	Three months ended September 30,		Nine months ended September 30,
	2022		2022
Number of loans approved for a trial modification	820		3,258
Number of loans permanently modified	784		3,615
Concession granted:(a)
Interest rate reduction	47	%	54	%
Term or payment extension	61		65
Principal and/or interest deferred	9		11
Principal forgiveness	—		1
Other(b)	46		38

(a)Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds 100% because predominantly all of the modifications include more than one type of concession. Concessions offered on trial modifications are generally consistent with those granted on permanent modifications.

(b)Includes variable interest rate to fixed interest rate modifications and payment delays that meet the definition of a TDR.

Financial effects of TDRs and redefaults

The following table provides information about the financial effects of the various concessions granted in modifications of residential real estate loans and about redefaults of certain loans modified in TDRs for the period presented.


(in millions, except weighted-average data)	Three months ended September 30,			Nine months ended September 30,
	2022			2022
Weighted-average interest rate of loans with interest rate reductions – before TDR	5.39		%	4.65		%
Weighted-average interest rate of loans with interest rate reductions – after TDR	3.52			3.34
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR	20			22
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR	37			38
Charge-offs recognized upon permanent modification	$	—		$	1
Principal deferred	4			15
Principal forgiven	—			1
Balance of loans that redefaulted within one year of permanent modification(a)	$	33		$	103

(a)Represents loans permanently modified in TDRs that experienced a payment default in the period presented, and for which the payment default occurred within one year of the modification. The dollar amount presented represents the balance of such loans at the end of the reporting period in which such loans defaulted.

152

Active and suspended foreclosure

At September 30, 2023 and December 31, 2022, the Firm had residential real estate loans, excluding those insured by U.S. government agencies, with a carrying value of $589 million and $565 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure.

Auto and other

Delinquency is the primary credit quality indicator for retained auto and other loans. The following tables provide information on delinquency and gross charge-offs for the nine months ended September 30, 2023.


	September 30, 2023
(in millions, except ratios)	Term loans by origination year																		Revolving loans
	2023			2022			2021			2020			2019			Prior to 2019			Within the revolving period			Converted to term loans			Total
Loan delinquency
Current	$	24,269		$	16,365		$	14,484		$	7,621		$	2,242		$	723		$	2,712		$	110		$	68,526
30–119 days past due	200			249			219			76			44			20			14			20			842
120 or more days past due	—			—			21			13			—			1			2			14			51
Total retained loans	$	24,469		$	16,614		$	14,724		$	7,710		$	2,286		$	744		$	2,728		$	144		$	69,419
% of 30+ days past due to total retained loans(a)	0.82		%	1.50		%	1.47		%	0.97		%	1.92		%	2.82		%	0.59		%	23.61		%	1.23		%
Gross charge-offs	$	211		$	233		$	121		$	42		$	25		$	46		$	—		$	2		$	680


	December 31, 2022
(in millions, except ratios)	Term loans by origination year																		Revolving loans
	2022			2021			2020			2019			2018			Prior to 2018			Within the revolving period			Converted to term loans			Total
Loan delinquency
Current	$	22,187		$	20,212		$	11,401		$	3,991		$	1,467		$	578		$	2,342		$	118		$	62,296
30–119 days past due	263			308			100			68			33			17			12			10			811
120 or more days past due	—			53			24			—			—			1			2			5			85
Total retained loans	$	22,450		$	20,573		$	11,525		$	4,059		$	1,500		$	596		$	2,356		$	133		$	63,192
% of 30+ days past due to total retained loans(a)	1.17		%	1.15		%	0.83		%	1.68		%	2.20		%	3.02		%	0.59		%	11.28		%	1.18		%

(a)At September 30, 2023 and December 31, 2022, auto and other loans excluded $38 million and $153 million, respectively, of PPP loans guaranteed by the SBA that are 30 or more days past due. These amounts have been excluded based upon the SBA guarantee.

153

Nonaccrual and other credit quality indicators

The following table provides information on nonaccrual and other credit quality indicators for retained auto and other consumer loans.


(in millions)	Total Auto and other
	September 30, 2023		December 31, 2022
Nonaccrual loans(a)(b)(c)	$	162	$	129

Geographic region(d)
California	$	10,580	$	9,689
Texas	8,280		7,216
Florida	5,500		4,847
New York	4,750		4,345
Illinois	3,095		2,839
New Jersey	2,530		2,219
Georgia	1,892		1,708
Pennsylvania	1,887		1,822
Arizona	1,747		1,551
North Carolina	1,677		1,481
All other	27,481		25,475
Total retained loans	$	69,419	$	63,192

(a)At September 30, 2023 and December 31, 2022, nonaccrual loans excluded $35 million and $101 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA, of which $33 million and $76 million, respectively, were no longer accruing interest based on the guidelines set by the SBA. Typically the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting the guidelines set by the SBA. There were no loans that were not guaranteed by the SBA that are 90 or more days past due and still accruing interest at September 30, 2023 and December 31, 2022.

(b)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to charge down, the related allowance may be negative.

(c)Interest income on nonaccrual loans recognized on a cash basis was not material for the three and nine months ended September 30, 2023 and 2022.

(d)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at September 30, 2023.

Loan modifications

The Firm grants certain modifications of auto and other loans to borrowers experiencing financial difficulty, which effective January 1, 2023, are reported as FDMs. For the three and nine months ended September 30, 2023 and 2022, auto and other FDMs were not material and there were no additional commitments to lend to borrowers modified as FDMs.

For the three and nine months ended September 30, 2022, auto and other TDRs were not material.

154

Credit card loan portfolio

The credit card portfolio segment includes credit card loans originated and purchased by the Firm. Delinquency rates are the primary credit quality indicator for credit card loans.

Refer to Note 12 of JPMorgan Chase's 2022 Form 10-K for further information on the credit card loan portfolio, including credit quality indicators.

The following tables provide information on delinquency and gross charge-offs for the nine months ended September 30, 2023.


(in millions, except ratios)	September 30, 2023
	Within the revolving period			Converted to term loans			Total
Loan delinquency
Current and less than 30 days past due and still accruing	$	192,295		$	814		$	193,109
30–89 days past due and still accruing	1,901			76			1,977
90 or more days past due and still accruing	1,810			39			1,849
Total retained loans	$	196,006		$	929		$	196,935
Loan delinquency ratios
% of 30+ days past due to total retained loans	1.89		%	12.38		%	1.94		%
% of 90+ days past due to total retained loans	0.92			4.20			0.94
Gross charge-offs	$	3,737		$	115		$	3,852


(in millions, except ratios)	December 31, 2022
	Within the revolving period			Converted to term loans			Total
Loan delinquency
Current and less than 30 days past due and still accruing	$	181,793		$	696		$	182,489
30–89 days past due and still accruing	1,356			64			1,420
90 or more days past due and still accruing	1,230			36			1,266
Total retained loans	$	184,379		$	796		$	185,175
Loan delinquency ratios
% of 30+ days past due to total retained loans	1.40		%	12.56		%	1.45		%
% of 90+ days past due to total retained loans	0.67			4.52			0.68

Other credit quality indicators

The following table provides information on other credit quality indicators for retained credit card loans.


(in millions, except ratios)	September 30, 2023			December 31, 2022
Geographic region(a)
California	$	30,227		$	28,154
Texas	20,654			19,171
New York	15,996			15,046
Florida	13,957			12,905
Illinois	10,721			10,089
New Jersey	8,148			7,643
Colorado	5,989			5,493
Ohio	5,987			5,792
Pennsylvania	5,653			5,517
Arizona	4,828			4,487
All other	74,775			70,878
Total retained loans	$	196,935		$	185,175
Percentage of portfolio based on carrying value with estimated refreshed FICO scores
Equal to or greater than 660	85.8		%	86.8		%
Less than 660	14.0			13.0
No FICO available	0.2			0.2

(a)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at September 30, 2023.

155

Loan modifications

The Firm grants certain modifications of credit card loans to borrowers experiencing financial difficulty, which effective January 1, 2023, are reported as FDMs. These modifications involve placing the customer on a fixed payment plan, generally for 60 months, and typically include reducing the interest rate on the credit card under long-term programs. If the cardholder does not comply with the modified payment terms, then the credit card loan continues to age and will ultimately be charged-off in accordance with the Firm's standard charge-off policy. In most cases, the Firm does not reinstate the borrower's line of credit.

Financial effects of FDMs

The following tables provide information on credit card loan modifications considered FDMs.


Three months ended September 30, 2023 (in millions)	Amortized cost basis		% of loan modifications to total retained credit card loans		Financial effect of loan modification

Loan modification
Term extension and interest rate reduction(a)(b)	$	197	0.10	%	Term extension with a reduction in the weighted average contractual interest rate from 23.48% to 3.67%
Total	$	197


Nine months ended September 30, 2023 (in millions)	Amortized cost basis		% of loan modifications to total retained credit card loans		Financial effect of loan modification

Loan modification
Term extension and interest rate reduction(a)(b)	$	489	0.25	%	Term extension with a reduction in the weighted average contractual interest rate from 23.15% to 3.58%
Total	$	489

(a)Term extension includes credit card loans whose terms have been modified under long-term programs by placing the customer on a fixed payment plan.

(b)The interest rates represent weighted average at enrollment.

For both the three and nine months ended September 30, 2023, the Firm also had $29 million of credit card loans subject to trial modifications. The changes to the TDR accounting guidance eliminated the TDR reasonably expected and concession assessment criteria. Accordingly, trial modifications are not considered FDMs.

Payment status of FDMs and redefaults

The following table provides information on the payment status of FDMs during the three and nine months ended September 30, 2023.


(in millions)	Amortized cost basis
	Three months ended September 30,		Nine months ended September 30,
	2023		2023
Current and less than 30 days past due and still accruing	$	143	$	414
30-89 days past due and still accruing	33		47
90 or more days past due and still accruing	21		28
Total	$	197	$	489

There were $18 million and $24 million FDMs that re-defaulted during both the three and nine months ended September 30, 2023 which were a combination of term extension and interest rate reduction.

For credit card loans modified as FDMs, payment default is deemed to have occurred when the borrower misses two consecutive contractual payments. Defaulted modified credit card loans remain in the modification program and continue to be charged off in accordance with the Firm's standard charge-off policy.

Financial effects of TDRs and redefaults

For periods ending prior to January 1, 2023, modifications of credit card loans where the Firm granted concessions to borrowers who were experiencing financial difficulty were generally accounted for and reported as TDRs. Refer to Note 12 of JPMorgan Chase's 2022 Form 10-K for further information on TDRs.

The following table provides information about the financial effects of the concessions granted on credit card loans modified in TDRs and redefaults. New enrollments were less than 1% of total retained credit card loans.


(in millions, except weighted-average data)	Three months ended September 30,			Nine months ended September 30,
	2022			2022
Balance of new TDRs(a)	$	111		$	274
Weighted-average interest rate of loans – before TDR	20.26		%	19.19		%
Weighted-average interest rate of loans – after TDR	3.81			4.37
Balance of loans that redefaulted within one year of modification(b)	$	9		$	26

(a)Represents the outstanding balance prior to modification.

(b)Represents loans modified in TDRs that experienced a payment default in the period presented, and for which the payment default occurred within one year of the modification. The amount presented represents the balance of such loans as of the end of the quarter in which they defaulted.

156

Wholesale loan portfolio

Wholesale loans include loans made to a variety of clients, ranging from large corporate and institutional clients, to small businesses and high-net-worth individuals. The primary credit quality indicator for wholesale loans is the internal risk rating assigned to each loan. Refer to Note 12 of JPMorgan Chase’s 2022 Form 10-K for further information on these risk ratings.

Internal risk rating is the primary credit quality indicator for retained wholesale loans. The following tables provide information on internal risk rating and gross charge-offs for the nine months ended September 30, 2023.


	Secured by real estate						Commercial and industrial						Other(b)							Total retained loans
(in millions, except ratios)	Sep 30, 2023			Dec 31, 2022			Sep 30, 2023			Dec 31, 2022				Sep 30, 2023			Dec 31, 2022				Sep 30, 2023			Dec 31, 2022
Loans by risk ratings
Investment-grade	$	124,446		$	99,552		$	71,287		$	76,275			$	267,978		$	249,585			$	463,711		$	425,412
Noninvestment-grade:
Noncriticized	31,870			23,272			81,984			81,393				73,786			57,888				187,640			162,553
Criticized performing	5,071			3,662			11,586			8,974				1,037			1,106				17,694			13,742
Criticized nonaccrual	490			246			1,320			1,018				1,097			699				2,907			1,963
Total noninvestment-grade	37,431			27,180			94,890			91,385				75,920			59,693				208,241			178,258
Total retained loans(a)	$	161,877		$	126,732		$	166,177		$	167,660			$	343,898		$	309,278			$	671,952		$	603,670
% of investment-grade to total retained loans	76.88		%	78.55		%	42.90		%	45.49		%		77.92		%	80.70		%		69.01		%	70.47		%
% of total criticized to total retained loans	3.44			3.08			7.77			5.96				0.62			0.58				3.07			2.60
% of criticized nonaccrual to total retained loans	0.30			0.19			0.79			0.61				0.32			0.23				0.43			0.33

(a)As of September 30, 2023 included $33.9 billion of Secured by real estate loans, $2.9 billion of Commercial and industrial loans, and $17.0 billion of Other loans associated with First Republic.

(b)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB). Refer to Note 14 of JPMorgan Chase’s 2022 Form 10-K for more information on SPEs.


	Secured by real estate
(in millions)	September 30, 2023
	Term loans by origination year												Revolving loans
	2023		2022		2021		2020		2019		Prior to 2019		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	8,379	$	30,591	$	26,874	$	17,585	$	16,523	$	23,111	$	1,383	$	—	$	124,446
Noninvestment-grade	3,653		10,811		7,147		3,508		3,609		7,607		1,095		1		37,431
Total retained loans(a)	$	12,032	$	41,402	$	34,021	$	21,093	$	20,132	$	30,718	$	2,478	$	1	$	161,877
Gross charge-offs	$	—	$	35	$	22	$	—	$	17	$	63	$	—	$	1	$	138


	Secured by real estate
(in millions)	December 31, 2022
	Term loans by origination year												Revolving loans
	2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	24,134	$	22,407	$	14,773	$	14,666	$	5,277	$	17,289	$	1,006	$	—	$	99,552
Noninvestment-grade	6,072		5,602		3,032		3,498		2,395		5,659		920		2		27,180
Total retained loans	$	30,206	$	28,009	$	17,805	$	18,164	$	7,672	$	22,948	$	1,926	$	2	$	126,732

(a) As of September 30, 2023 included $3.1 billion, $11.1 billion, $6.3 billion, $4.4 billion, $2.9 billion, and $5.3 billion of retained loans originated in 2023, 2022, 2021, 2020, 2019 and prior to 2019, respectively, and $832 million of revolving loans within the revolving period associated with First Republic.

157


	Commercial and industrial
(in millions)	September 30, 2023
	Term loans by origination year												Revolving loans
	2023		2022		2021		2020		2019		Prior to 2019		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	12,399	$	11,455	$	4,659	$	2,378	$	1,264	$	1,074	$	38,057	$	1	$	71,287
Noninvestment-grade	13,327		17,731		10,654		2,540		1,478		1,395		47,680		85		94,890
Total retained loans(a)	$	25,726	$	29,186	$	15,313	$	4,918	$	2,742	$	2,469	$	85,737	$	86	$	166,177
Gross charge-offs	$	1	$	7	$	23	$	1	$	2	$	8	$	220	$	7	$	269


	Commercial and industrial
(in millions)	December 31, 2022
	Term loans by origination year												Revolving loans
	2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	21,072	$	8,338	$	3,045	$	1,995	$	748	$	989	$	40,087	$	1	$	76,275
Noninvestment-grade	24,088		12,444		3,459		2,506		525		1,014		47,267		82		91,385
Total retained loans	$	45,160	$	20,782	$	6,504	$	4,501	$	1,273	$	2,003	$	87,354	$	83	$	167,660

(a) As of September 30, 2023 included $210 million, $609 million, $369 million, $223 million, $65 million, and $175 million of retained loans originated in 2023, 2022, 2021, 2020, 2019 and prior to 2019, respectively, and $1.3 billion of revolving loans within the revolving period associated with First Republic.


	Other(a)
(in millions)	September 30, 2023
	Term loans by origination year												Revolving loans
	2023		2022		2021		2020		2019		Prior to 2019		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	33,905	$	19,379	$	10,824	$	10,701	$	3,751	$	7,143	$	180,152	$	2,123	$	267,978
Noninvestment-grade	9,380		11,697		6,480		2,406		651		2,174		43,049		83		75,920
Total retained loans(b)	$	43,285	$	31,076	$	17,304	$	13,107	$	4,402	$	9,317	$	223,201	$	2,206	$	343,898
Gross charge-offs	$	1	$	8	$	9	$	6	$	—	$	1	$	3	$	—	$	28


	Other(a)
(in millions)	December 31, 2022
	Term loans by origination year												Revolving loans
	2022		2021		2020		2019		2018		Prior to 2018		Within the revolving period		Converted to term loans		Total
Loans by risk ratings
Investment-grade	$	32,121	$	15,864	$	13,015	$	4,529	$	2,159	$	7,251	$	171,049	$	3,597	$	249,585
Noninvestment-grade	16,829		7,096		1,821		699		451		475		32,240		82		59,693
Total retained loans	$	48,950	$	22,960	$	14,836	$	5,228	$	2,610	$	7,726	$	203,289	$	3,679	$	309,278

(a)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Global Private Bank clients within AWM and J.P. Morgan Wealth Management within CCB). Refer to Note 14 of JPMorgan Chase’s 2022 Form 10-K for more information on SPEs.

(b)As of September 30, 2023 included $176 million, $766 million, $763 million, $1.0 billion, $174 million, and $1.3 billion of retained loans originated in 2023, 2022, 2021, 2020, 2019 and prior to 2019, respectively, $12.8 billion of revolving loans within the revolving period, and $67 million converted to term loans associated with First Republic.

158

The following table presents additional information on retained loans secured by real estate, which consists of loans secured wholly or substantially by a lien or liens on real property at origination.


(in millions, except ratios)	Multifamily						Other commercial						Total retained loans secured by real estate
	Sep 30, 2023			Dec 31, 2022			Sep 30, 2023			Dec 31, 2022			Sep 30, 2023				Dec 31, 2022
Retained loans secured by real estate	$	100,839		$	79,139		$	61,038		$	47,593		$	161,877		(a)	$	126,732
Criticized	2,329			1,916			3,232			1,992			5,561				3,908
% of criticized to total retained loans secured by real estate	2.31		%	2.42		%	5.30		%	4.19		%	3.44		%		3.08		%
Criticized nonaccrual	$	51		$	51		$	439		$	195		$	490			$	246
% of criticized nonaccrual loans to total retained loans secured by real estate	0.05		%	0.06		%	0.72		%	0.41		%	0.30		%		0.19		%

(a) Included $20.7 billion and $13.1 billion of Multifamily and Other commercial loans, respectively, associated with First Republic.

Geographic distribution and delinquency

The following table provides information on the geographic distribution and delinquency for retained wholesale loans.


	Secured by real estate				Commercial and industrial				Other				Total retained loans
(in millions)	Sep 30, 2023		Dec 31, 2022		Sep 30, 2023		Dec 31, 2022		Sep 30, 2023		Dec 31, 2022		Sep 30, 2023		Dec 31, 2022
Loans by geographic distribution(a)(b)
Total U.S.	$	159,200	$	123,740	$	125,997	$	125,324	$	264,656	$	230,525	$	549,853	$	479,589
Total non-U.S.	2,677		2,992		40,180		42,336		79,242		78,753		122,099		124,081
Total retained loans	$	161,877	$	126,732	$	166,177	$	167,660	$	343,898	$	309,278	$	671,952	$	603,670
Loan delinquency
Current and less than 30 days past due and still accruing	$	160,861	$	126,083	$	164,179	$	165,415	$	341,810	$	307,511	$	666,850	$	599,009
30–89 days past due and still accruing	507		402		598		1,127		949		1,015		2,054		2,544
90 or more days past due and still accruing(c)	19		1		80		100		42		53		141		154
Criticized nonaccrual	490		246		1,320		1,018		1,097		699		2,907		1,963
Total retained loans	$	161,877	$	126,732	$	166,177	$	167,660	$	343,898	$	309,278	$	671,952	$	603,670

(a)The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.

(b)Borrowers associated with First Republic are predominantly domiciled in the U.S.

(c)Represents loans that are considered well-collateralized and therefore still accruing interest.

Nonaccrual loans

The following table provides information on retained wholesale nonaccrual loans.


(in millions)	Secured by real estate				Commercial and industrial				Other				Total retained loans
	Sep 30, 2023		Dec 31, 2022		Sep 30, 2023		Dec 31, 2022		Sep 30, 2023		Dec 31, 2022		Sep 30, 2023		Dec 31, 2022
Nonaccrual loans
With an allowance	$	106	$	172	$	885	$	686	$	873	$	487	$	1,864	$	1,345
Without an allowance(a)	384		74		435		332		224		212		1,043		618
Total nonaccrual loans(b)	$	490	$	246	$	1,320	$	1,018	$	1,097	$	699	$	2,907	$	1,963

(a)When the discounted cash flows or collateral value equals or exceeds the amortized cost of the loan, the loan does not require an allowance. This typically occurs when the loans have been partially charged off and/or there have been interest payments received and applied to the loan balance.

(b)Interest income on nonaccrual loans recognized on a cash basis was not material for the three and nine months ended September 30, 2023 and 2022.

159

Loan modifications

The Firm grants certain modifications of wholesale loans to borrowers experiencing financial difficulty, which effective January 1, 2023, are reported as FDMs.

Financial effects of FDMs

The following tables provide information about Secured by real estate, Commercial and industrial and Other loan modifications considered FDMs.


(in millions)	Secured by real estate
	Three months ended September 30, 2023					Nine months ended September 30, 2023
	Amortized cost basis		% of loan modifications to total retained Commercial and industrial loans		Financial effect of loan modification	Amortized cost basis		% of loan modifications to total retained Commercial and industrial loans		Financial effect of loan modification
Loan modification
Single modifications
Interest rate reduction	$	—	—	%		$	5	—	%	Reduced weighted-average contractual interest by 350 bps
Term extension	60		0.04	%	Extended loans by a weighted-average of 14 months	112		0.07	%	Extended loans by a weighted-average of 13 months

Other-than-insignificant payment delay	—		—	%		2		—	%	Provided payment deferrals with delayed amounts primarily re-amortized over the remaining tenor
Multiple modifications
Interest rate reduction and term extension	$	—	—	%		$	1	—	%	Reduced weighted-average contractual interest by (271) bps and extended loans by a weighted-average of 9 months
Other-than-insignificant payment delay and interest rate reduction	$	—	—	%		$	5	—	%	Provided payment deferrals with delayed amounts primarily recaptured at maturity and reduced weighted-average contractual interest by 184 bps
Total	$	60				$	125


(in millions)	Commercial and industrial
	Three months ended September 30, 2023					Nine months ended September 30, 2023
	Amortized cost basis		% of loan modifications to total retained Commercial and industrial loans		Financial effect of loan modification	Amortized cost basis		% of loan modifications to total retained Commercial and industrial loans		Financial effect of loan modification
Loan modification
Single modifications

Term extension	$	372	0.22	%	Extended loans by a weighted-average of 21 months	$	669	0.40	%	Extended loans by a weighted-average of 19 months

Other-than-insignificant payment delay	309		0.19	%	Provided payment deferrals with delayed amounts primarily re-amortized over the remaining tenor	310		0.19	%	Provided payment deferrals with delayed amounts primarily re-amortized over the remaining tenor
Multiple modifications
Other-than-insignificant payment delay and term extension	$	32	0.02	%	Provided payment deferrals with delayed amounts primarily recaptured at maturity and extended loans by a weighted-average of 6 months	$	32	0.02	%	Provided payment deferrals with delayed amounts primarily recaptured at maturity and extended loans by a weighted-average of 6 months
Other-than-insignificant payment delay and interest rate reduction and term extension	2		—	%	Provided payment deferrals with delayed amounts primarily recaptured through re-amortization over the remaining tenor and reduced weighted-average contractual interest by 75 bps and extended loans by a weighted-average of 31 months	2		—	%	Provided payment deferrals with delayed amounts primarily recaptured through re-amortization over the remaining tenor and reduced weighted-average contractual interest by 75 bps and extended loans by a weighted-average of 31 months
Term extension and principal forgiveness	—		—	%		14		0.01	%	Extended loans by a weighted-average of 73 months and reduced amortized cost basis of the loans by $23 mm
Interest rate reduction and term extension	—		—	%		1		—	%	Reduced weighted-average contractual interest by (136) bps and extended loans by a weighted-average of 18 months
	$	715				$	1,028

160


(in millions)	Other
	Three months ended September 30, 2023					Nine months ended September 30, 2023
	Amortized cost basis		% of loan modifications to total retained Other loans		Financial effect of loan modification	Amortized cost basis		% of loan modifications to total retained Other loans		Financial effect of loan modification
Loan modification
Single modifications
Interest rate reduction	$	—	—	%		$	9	—	%	Reduced weighted-average contractual interest by 654 bps
Term extension	100		0.03	%	Extended loans by a weighted-average of 27 months	100		0.03	%	Extended loans by a weighted-average of 30 months


Multiple modifications
Interest rate reduction and term extension	$	495	0.14	%	Reduced weighted-average contractual interest by 1,708 bps and extended loans by a weighted-average of 7 months	$	495	0.14	%	Reduced weighted-average contractual interest by 1,708 bps and extended loans by a weighted-average of 7 months
Other-than-insignificant payment delay and term extension	—		—	%		233		0.07	%	Provided payment deferrals with delayed amounts primarily recaptured at the end of the deferral period and extended loans by a weighted-average of 144 months
Total	$	595				$	837

Payment status of FDMs and redefaults

The following table provides information on the payment status of Secured by real estate, Commercial and industrial and Other FDMs during the three and nine months ended September 30, 2023.


	Amortized cost basis
	Secured by real estate				Commercial and industrial				Other
(in millions)	Three months ended September 30, 2023		Nine months ended September 30, 2023		Three months ended September 30, 2023		Nine months ended September 30, 2023		Three months ended September 30, 2023		Nine months ended September 30, 2023
Current and less than 30 days past due and still accruing	$	60	$	117	$	504	$	703	$	16	$	248
30-89 days past due and still accruing	—		—		—		—		28		28
90 or more days past due and still accruing	—		—		10		10		—		—
Criticized nonaccrual	—		8		201		315		551		561
Total	$	60	$	125	$	715	$	1,028	$	595	$	837

The following table provides information on Secured by real estate, Commercial and industrial and Other FDMs that re-defaulted during the three and nine months ended September 30, 2023.


(in millions)	Amortized cost basis
	Secured by real estate				Commercial and industrial				Other
	Three months ended September 30, 2023		Nine months ended September 30, 2023		Three months ended September 30, 2023		Nine months ended September 30, 2023		Three months ended September 30, 2023		Nine months ended September 30, 2023

Loan modification

Term extension	—		1		11		18		32		32


Interest rate reduction and term extension	—		1		—		—		—		—
Total(a)	$	—	$	2	$	11	$	18	$	32	$	32

(a)Represents FDMs that were 30 days or more past due.

Additional unfunded commitments to borrowers experiencing financial difficulty whose Commercial and industrial loans have been modified as FDMs were $363 million and $1.5 billion for the three and nine months ended September 30, 2023, and additional unfunded commitments to borrowers experiencing financial difficulty whose Secured by real estate and Other loans have been modified as FDMs were $1 million for the three and nine months ended September 30, 2023.

Nature and extent of TDRs

Prior to January 1, 2023, certain loan modifications were considered TDRs.

For the three and nine months ended September 30, 2022, new TDRs were $108 million and $587 million, respectively.

New TDRs for the three and nine months ended September 30, 2022 reflected extended maturity dates and covenant waivers primarily in the Commercial and Industrial loan class. For the three and nine months ended September 30, 2022, the impact of these modifications were not material to the Firm.

161

Note 13 – Allowance for credit losses

The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments.

On January 1, 2023 the Firm adopted the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance as described in Note 1.

The adoption of this guidance eliminated the requirement to measure the allowance for TDRs using a DCF methodology and allowed the option of a non-DCF portfolio-based approach for modified loans to borrowers experiencing financial difficulty. If a DCF methodology is still applied for these modified loans, the discount rate must be the post-modification effective interest rate, instead of the pre-modification effective interest rate.

The Firm elected to change from an asset-specific allowance approach to its non-DCF, portfolio-based allowance approach for modified loans to troubled borrowers for all portfolios except collateral-dependent loans and nonaccrual risk-rated loans, for which the asset-specific allowance approach will continue to apply.

This guidance was adopted under the modified retrospective method which resulted in a net decrease to the allowance for credit losses of $587 million and an increase to retained earnings of $446 million, after-tax predominantly driven by residential real estate and credit card.

Refer to Note 13 of JPMorgan Chase's 2022 Form 10-K for a detailed discussion of the allowance for credit losses and the related accounting policies.

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Allowance for credit losses and related information

The table below summarizes information about the allowances for credit losses and includes a breakdown of loans and lending-related commitments by impairment methodology. Refer to Note 10 of JPMorgan Chase’s 2022 Form 10-K and Note 10 of this Form 10-Q for further information on the allowance for credit losses on investment securities.


	2023								2022
Nine months ended September 30, (in millions)	Consumer, excluding credit card		Credit card		Wholesale		Total			Consumer, excluding credit card		Credit card		Wholesale		Total
Allowance for loan losses
Beginning balance at January 1,	$	2,040	$	11,200	$	6,486	$	19,726		$	1,765	$	10,250	$	4,371	$	16,386
Cumulative effect of a change in accounting principle(a)	(489)		(100)		2		(587)			NA		NA		NA		NA
Gross charge-offs	809		3,852		435		5,096			590		2,294		232		3,116
Gross recoveries collected	(388)		(579)		(84)		(1,051)			(441)		(616)		(93)		(1,150)
Net charge-offs/(recoveries)	421		3,273		351		4,045			149		1,678		139		1,966
Provision for loan losses	723		4,073		2,047		6,843			202		1,828		1,733		3,763
Other	1		—		8		9			1		—		1		2
Ending balance at September 30,	$	1,854	$	11,900	$	8,192	$	21,946		$	1,819	$	10,400	$	5,966	$	18,185
Allowance for lending-related commitments
Beginning balance at January 1,	$	76	$	—	$	2,306	$	2,382		$	113	$	—	$	2,148	$	2,261
Provision for lending-related commitments	5		—		(313)		(308)			(36)		—		325		289
Other	—		—		1		1			—		—		1		1
Ending balance at September 30,	$	81	$	—	$	1,994	$	2,075		$	77	$	—	$	2,474	$	2,551
Total allowance for investment securities							117			NA		NA		NA		61
Total allowance for credit losses(b)(c)	$	1,935	$	11,900	$	10,186	$	24,138		$	1,896	$	10,400	$	8,440	$	20,797
Allowance for loan losses by impairment methodology
Asset-specific(d)	$	(942)	$	—	$	732	$	(210)		$	(702)	$	218	$	450	$	(34)
Portfolio-based	2,796		11,900		7,460		22,156			2,521		10,182		5,516		18,219
Total allowance for loan losses	$	1,854	$	11,900	$	8,192	$	21,946		$	1,819	$	10,400	$	5,966	$	18,185

Loans by impairment methodology
Asset-specific(d)	$	3,321	$	—	$	2,402	$	5,723		$	12,218	$	794	$	2,282	$	15,294
Portfolio-based	393,733		196,935		669,550		1,260,218			289,185		169,668		593,926		1,052,779
Total retained loans	$	397,054	$	196,935	$	671,952	$	1,265,941		$	301,403	$	170,462	$	596,208	$	1,068,073
Collateral-dependent loans
Net charge-offs	$	4	$	—	$	127	$	131		$	(29)	$	—	$	13	$	(16)
Loans measured at fair value of collateral less cost to sell	3,384		—		1,074		4,458			3,718		—		537		4,255
Allowance for lending-related commitments by impairment methodology
Asset-specific	$	—	$	—	$	61	$	61		$	—	$	—	$	84	$	84
Portfolio-based	81		—		1,933		2,014			77		—		2,390		2,467
Total allowance for lending-related commitments(e)	$	81	$	—	$	1,994	$	2,075		$	77	$	—	$	2,474	$	2,551
Lending-related commitments by impairment methodology
Asset-specific	$	—	$	—	$	387	$	387		$	—	$	—	$	470	$	470
Portfolio-based(f)	30,245		—		514,937		545,182			22,259		—		452,530		474,789
Total lending-related commitments	$	30,245	$	—	$	515,324	$	545,569		$	22,259	$	—	$	453,000	$	475,259

(a)Represents the impact to the allowance for loan losses upon the adoption of the Financial Instruments - Credit Losses: Troubled Debt Restructurings accounting guidance.

(b)At September 30, 2023 and 2022, in addition to the allowance for credit losses in the table above, the Firm also had an allowance for credit losses of $17 million and $30 million, respectively, associated with certain accounts receivable in CIB.

(c)As of September 30, 2023 included $1.2 billion allowance for credit losses associated with First Republic.

(d)Includes collateral-dependent loans, including those for which foreclosure is deemed probable, and nonaccrual risk-rated loans for all periods presented. Prior periods also include non collateral-dependent TDRs or reasonably expected TDRs and modified PCD loans.

(e)The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets.

(f)At September 30, 2023 and 2022, lending-related commitments excluded $18.1 billion and $12.6 billion, respectively, for the consumer, excluding credit card portfolio segment; $898.9 billion and $798.9 billion, respectively, for the credit card portfolio segment; and $16.2 billion and $20.0 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments. Prior period amount for wholesale lending-related commitments, including the amount not subject to allowance, has been revised to conform with the current presentation.

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Discussion of changes in the allowance

The allowance for credit losses as of September 30, 2023 was $24.2 billion, reflecting a net addition of $2.5 billion from December 31, 2022.

The net addition to the allowance for credit losses included $1.4 billion, consisting of:

The net addition also included $1.2 billion to establish the allowance for the First Republic loans and lending-related commitments in the second quarter of 2023.

The Firm’s central case assumptions reflected U.S. unemployment rates and U.S. real GDP as follows:


	Assumptions at September 30, 2023
	4Q23		2Q24		4Q24
U.S. unemployment rate(a)	3.9	%	4.2	%	4.6	%
YoY growth in U.S. real GDP(b)	2.1	%	1.2	%	0.7	%

	Assumptions at December 31, 2022
	2Q23		4Q23		2Q24
U.S. unemployment rate(a)	3.8	%	4.3	%	5.0	%
YoY growth in U.S. real GDP(b)	1.5	%	0.4	%	—	%

(a)Reflects quarterly average of forecasted U.S. unemployment rate.

(b)The year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percentage change in U.S. real GDP levels from the prior year.

Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.

Refer to Note 13 and Note 10 of JPMorgan Chase’s 2022 Form 10-K for a description of the policies, methodologies and judgments used to determine the Firm’s allowance for credit losses on loans, lending-related commitments, and investment securities.

Refer to Consumer Credit Portfolio on pages 65-69, Wholesale Credit Portfolio on pages 70-79 and Note 12 for additional information on the consumer and wholesale credit portfolios.

Refer to Critical Accounting Estimates Used by the Firm on pages 91-93 for further information on the allowance for credit losses and related management judgments.

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Note 14 – Variable interest entities

Refer to Note 1 and Note 14 of JPMorgan Chase’s 2022 Form 10-K for a further description of the Firm's accounting policies and involvement with VIEs.

The following table summarizes the most significant types of Firm-sponsored VIEs by business segment. The Firm considers a “Firm-sponsored” VIE to include any entity where: (1) JPMorgan Chase is the primary beneficiary of the structure; (2) the VIE is used by JPMorgan Chase to securitize Firm assets; (3) the VIE issues financial instruments with the JPMorgan Chase name; or (4) the entity is a JPMorgan Chase–administered asset-backed commercial paper conduit.


Line of Business	Transaction Type	Activity	Form 10-Q page references
CCB	Credit card securitization trusts	Securitization of originated credit card receivables	165
	Mortgage securitization trusts	Servicing and securitization of both originated and purchased residential mortgages	165–167
CIB	Mortgage and other securitization trusts	Securitization of both originated and purchased residential and commercial mortgages, and other consumer loans	165–167
	Multi-seller conduits	Assisting clients in accessing the financial markets in a cost-efficient manner and structuring transactions to meet investor needs	167
	Municipal bond vehicles	Financing of municipal bond investments	167

The Firm also invests in and provides financing and other services to VIEs sponsored by third parties. Refer to pages 168–169 of this Note for more information on consolidated VIE assets and liabilities as well as the VIEs sponsored by third parties.

Significant Firm-sponsored VIEs

Credit card securitizations

As a result of the Firm’s continuing involvement, the Firm is considered to be the primary beneficiary of its Firm-sponsored credit card securitization trust, the Chase Issuance Trust.

Firm-sponsored mortgage and other securitization trusts

The Firm securitizes (or has securitized) originated and purchased residential mortgages, commercial mortgages and other consumer loans primarily in its CCB and CIB businesses. Depending on the particular transaction, as well as the respective business involved, the Firm may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts.

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The following tables present the total unpaid principal amount of assets held in Firm-sponsored private-label securitization entities, including those in which the Firm has continuing involvement, and those that are consolidated by the Firm. Continuing involvement includes servicing the loans, holding senior interests or subordinated interests (including amounts required to be held pursuant to credit

risk retention rules), recourse or guarantee arrangements, and derivative contracts. In certain instances, the Firm’s only continuing involvement is servicing the loans. The Firm’s maximum loss exposure from retained and purchased interests is the carrying value of these interests.


	Principal amount outstanding						JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
September 30, 2023 (in millions)	Total assets held by securitization VIEs		Assets held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets		Investment securities		Other financial assets		Total interests held by JPMorgan Chase
Securitization-related(a)
Residential mortgage:
Prime/Alt-A and option ARMs	$	58,068	$	694	$	38,600	$	579	$	2,002	$	41	$	2,622
Subprime	9,089		—		1,290		3		—		—		3
Commercial and other(b)	167,402		80		129,838		899		5,634		1,368		7,901
Total	$	234,559	$	774	$	169,728	$	1,481	$	7,636	$	1,409	$	10,526


	Principal amount outstanding						JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
December 31, 2022 (in millions)	Total assets held by securitization VIEs		Assets held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement		Trading assets		Investment securities		Other financial assets		Total interests held by JPMorgan Chase
Securitization-related(a)
Residential mortgage:
Prime/Alt-A and option ARMs	$	55,362	$	754	$	37,058	$	744	$	1,918	$	—	$	2,662
Subprime	9,709		—		1,743		10		—		—		10
Commercial and other(b)	164,915		—		127,037		888		5,373		670		6,931
Total	$	229,986	$	754	$	165,838	$	1,642	$	7,291	$	670	$	9,603

(a)Excludes U.S. GSEs and government agency securitizations and re-securitizations, which are not Firm-sponsored.

(b)Consists of securities backed by commercial real estate loans and non-mortgage-related consumer receivables.

(c)Excludes the following: retained servicing; securities retained from loan sales and securitization activity related to U.S. GSEs and government agencies; interest rate and foreign exchange derivatives primarily used to manage interest rate and foreign exchange risks of securitization entities; senior securities of $140 million and $134 million at September 30, 2023 and December 31, 2022, respectively, and subordinated securities which were $115 million and $34 million at September 30, 2023 and December 31, 2022, respectively, which the Firm purchased in connection with CIB’s secondary market-making activities.

(d)Includes interests held in re-securitization transactions.

(e)As of September 30, 2023 and December 31, 2022, 78% and 84%, respectively, of the Firm’s retained securitization interests, which are predominantly carried at fair value and include amounts required to be held pursuant to credit risk retention rules, were risk-rated “A” or better, on an S&P-equivalent basis. The retained interests in prime residential mortgages consisted of $2.6 billion of investment-grade retained interests at both September 30, 2023 and December 31, 2022, and $66 million and $27 million of noninvestment-grade retained interests at September 30, 2023 and December 31, 2022, respectively. The retained interests in commercial and other securitization trusts consisted of $6.2 billion and $5.8 billion of investment-grade retained interests at September 30, 2023 and December 31, 2022, respectively, and $1.7 billion and $1.1 billion of noninvestment-grade retained interests at September 30, 2023 and December 31, 2022, respectively.

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Residential mortgage

The Firm securitizes residential mortgage loans originated by CCB, as well as residential mortgage loans purchased from third parties by either CCB or CIB.

Commercial mortgages and other consumer securitizations

CIB originates and securitizes commercial mortgage loans, and engages in underwriting and trading activities involving the securities issued by securitization trusts.

Re-securitizations

The following table presents the principal amount of securities transferred to re-securitization VIEs.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Transfers of securities to VIEs
U.S. GSEs and government agencies	$	4,521	$	1,417	$	14,188	$	14,866

The Firm did not transfer any private label securities to re-securitization VIEs during the three and nine months ended September 30, 2023 and 2022, respectively and retained interests in any such Firm-sponsored VIEs as of September 30, 2023 and December 31, 2022 were not material.

The following table presents information on the Firm's interests in nonconsolidated re-securitization VIEs.


	Nonconsolidated re-securitization VIEs
(in millions)	September 30, 2023		December 31, 2022
U.S. GSEs and government agencies
Interest in VIEs	$	3,287	$	2,580

As of September 30, 2023 and December 31, 2022, the Firm did not consolidate any U.S. GSE and government agency re-securitization VIEs or any Firm-sponsored private-label re-securitization VIEs.

Multi-seller conduits

In the normal course of business, JPMorgan Chase makes markets in and invests in commercial paper issued by the Firm-administered multi-seller conduits. The Firm held $8.7 billion and $13.8 billion of the commercial paper issued by the Firm-administered multi-seller conduits at September 30, 2023 and December 31, 2022, respectively, which have been eliminated in consolidation. The Firm’s investments reflect the Firm’s funding needs and capacity and were not driven by market illiquidity. Other than the amounts required to be held pursuant to credit risk retention rules, the Firm is not obligated under any agreement to purchase the commercial paper issued by the Firm-administered multi-seller conduits.

Deal-specific liquidity facilities, program-wide liquidity and credit enhancement provided by the Firm have been eliminated in consolidation. The Firm or the Firm-administered multi-seller conduits provide lending-related commitments to certain clients of the Firm-administered multi-seller conduits. The unfunded commitments were $9.9 billion and $10.6 billion at September 30, 2023 and December 31, 2022, respectively, and are reported as off-balance sheet lending-related commitments in other unfunded commitments to extend credit. Refer to Note 24 for more information on off-balance sheet lending-related commitments.

Municipal bond vehicles

Municipal bond vehicles or tender option bond (“TOB”) trusts allow institutions to finance their municipal bond investments at short-term rates. TOB transactions are known as customer TOB trusts and non-customer TOB trusts. Customer TOB trusts are sponsored by a third party.

The Firm serves as sponsor for all non-customer TOB transactions.

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Consolidated VIE assets and liabilities

The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of September 30, 2023 and December 31, 2022.


	Assets									Liabilities
September 30, 2023 (in millions)	Trading assets		Loans			Other(b)		Total assets(c)		Beneficial interests in VIE assets(d)		Other(e)		Total liabilities
VIE program type
Firm-sponsored credit card trusts	$	—	$	9,003		$	112	$	9,115	$	2,997	$	6	$	3,003
Firm-administered multi-seller conduits	1		28,276			196		28,473		19,817		29		19,846
Municipal bond vehicles	1,725		—			26		1,751		1,888		11		1,899
Mortgage securitization entities(a)	—		712			8		720		128		58		186
Other	54		185			251		490		66		140		206
Total	$	1,780	$	38,176		$	593	$	40,549	$	24,896	$	244	$	25,140

	Assets									Liabilities
December 31, 2022 (in millions)	Trading assets		Loans			Other(b)		Total assets(c)		Beneficial interests in VIE assets(d)		Other(e)		Total liabilities
VIE program type
Firm-sponsored credit card trusts	$	—	$	9,699		$	100	$	9,799	$	1,999	$	2	$	2,001
Firm-administered multi-seller conduits	—		22,819			170		22,989		9,236		39		9,275
Municipal bond vehicles	2,089		—			7		2,096		1,232		10		1,242
Mortgage securitization entities(a)	—		781			10		791		143		67		210
Other	62		1,112		(f)	263		1,437		—		161		161
Total	$	2,151	$	34,411		$	550	$	37,112	$	12,610	$	279	$	12,889

(a)Includes residential mortgage securitizations.

(b)Includes assets classified as cash and other assets on the Consolidated balance sheets.

(c)The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The assets and liabilities include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation.

(d)The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified on the Consolidated balance sheets as “Beneficial interests issued by consolidated VIEs”. The holders of these beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. Included in beneficial interests in VIE assets are long-term beneficial interests of $3.2 billion and $2.1 billion at September 30, 2023 and December 31, 2022, respectively.

(e)Includes liabilities classified as accounts payable and other liabilities on the Consolidated balance sheets.

(f)Primarily includes purchased supply chain finance receivables and purchased auto loan securitizations in CIB.

VIEs sponsored by third parties

The Firm enters into transactions with VIEs structured by other parties. These include, for example, acting as a derivative counterparty, liquidity provider, investor, underwriter, placement agent, remarketing agent, trustee or custodian. These transactions are conducted at arm’s-length, and individual credit decisions are based on the analysis of the specific VIE, taking into consideration the quality of the underlying assets. Where the Firm does not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, or a variable interest that could potentially be significant, the Firm generally does not consolidate the VIE, but it records and reports these positions on its Consolidated balance sheets in the same manner it would record and report positions in respect of any other third-party transaction.

Tax credit vehicles

The Firm holds investments in unconsolidated tax credit vehicles, which are limited partnerships and similar entities that own and operate affordable housing, energy, and other projects. These entities are primarily considered VIEs. A third party is typically the general partner or managing

member and has control over the significant activities of the tax credit vehicles, and accordingly the Firm does not consolidate tax credit vehicles. The Firm generally invests in these partnerships as a limited partner and earns a return primarily through the receipt of tax credits allocated to the projects. The maximum loss exposure, represented by equity investments and funding commitments, was $32.5 billion and $30.2 billion at September 30, 2023 and December 31, 2022, of which $12.7 billion and $10.6 billion was unfunded at September 30, 2023 and December 31, 2022, respectively. The Firm assesses each project and to reduce the risk of loss, may withhold varying amounts of its capital investment until the project qualifies for tax credits. Refer to Note 25 of JPMorgan Chase’s 2022 Form 10-K for further information on affordable housing tax credits and Note 24 of this Form 10-Q for more information on off-balance sheet lending-related commitments.

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Customer municipal bond vehicles (TOB trusts)

The Firm may provide various services to customer TOB trusts, including remarketing agent, liquidity or tender option provider. In certain customer TOB transactions, the Firm, as liquidity provider, has entered into a reimbursement agreement with the Residual holder.

In those transactions, upon the termination of the vehicle, the Firm has recourse to the third-party Residual holders for any shortfall. The Firm does not have any intent to protect Residual holders from potential losses on any of the underlying municipal bonds. The Firm does not consolidate customer TOB trusts, since the Firm does not have the power to make decisions that significantly impact the economic performance of the municipal bond vehicle.

The Firm’s maximum exposure as a liquidity provider to customer TOB trusts at September 30, 2023 and December 31, 2022 was $5.5 billion and $5.8 billion, respectively. The fair value of assets held by such VIEs at September 30, 2023 and December 31, 2022 was $7.2 billion and $8.2 billion, respectively.

Loan securitizations

The Firm has securitized and sold a variety of loans, including residential mortgages, credit card receivables, commercial mortgages and other consumer loans.

Securitization activity

The following table provides information related to the Firm’s securitization activities for the three and nine months ended September 30, 2023 and 2022, related to assets held in Firm-sponsored securitization entities that were not consolidated by the Firm, and where sale accounting was achieved at the time of the securitization.


	Three months ended September 30,								Nine months ended September 30,
	2023				2022				2023				2022
(in millions)	Residential mortgage(d)		Commercial and other(e)		Residential mortgage(d)		Commercial and other(e)		Residential mortgage(d)		Commercial and other(e)		Residential mortgage(d)		Commercial and other(e)
Principal securitized	$	2,721	$	2,737	$	386	$	1,297	$	6,010	$	3,113	$	9,909	$	8,355
All cash flows during the period:(a)
Proceeds received from loan sales as financial instruments(b)(c)	$	2,585	$	2,726	$	375	$	1,278	$	5,738	$	3,106	$	9,504	$	8,253
Servicing fees collected	6		2		12		—		18		3		56		—
Cash flows received on interests	89		126		131		71		249		304		413		196

(a)Excludes re-securitization transactions.

(b)Predominantly includes Level 2 assets.

(c)The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.

(d)Represents prime mortgages. Excludes loan securitization activity related to U.S. GSEs and government agencies.

(e)Includes commercial mortgage and other consumer loans.

Loans and excess MSRs sold to U.S. government-sponsored

enterprises and loans in securitization transactions pursuant to

Ginnie Mae guidelines

In addition to the amounts reported in the securitization activity tables above, the Firm, in the normal course of business, sells originated and purchased mortgage loans and certain originated excess MSRs on a nonrecourse basis, predominantly to U.S. GSEs. These loans and excess MSRs are sold primarily for the purpose of securitization by the U.S. GSEs, who provide certain guarantee provisions (e.g., credit enhancement of the loans). The Firm also sells loans into securitization transactions pursuant to Ginnie Mae guidelines; these loans are typically insured or guaranteed by another U.S. government agency. The Firm does not consolidate the securitization vehicles underlying these transactions as it is not the primary beneficiary. For a limited number of loan sales, the Firm is obligated to share

a portion of the credit risk associated with the sold loans with the purchaser. Refer to Note 24 of this Form 10-Q for additional information about the Firm’s loan sales- and securitization-related indemnifications and Note 15 for additional information about the impact of the Firm’s sale of certain excess MSRs.

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The following table summarizes the activities related to loans sold to the U.S. GSEs, and loans in securitization transactions pursuant to Ginnie Mae guidelines.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Carrying value of loans sold	$	5,582	$	9,501	$	14,603	$	43,890
Proceeds received from loan sales as cash	119		2		159		15
Proceeds from loan sales as securities(a)(b)	5,397		9,352		14,279		43,161
Total proceeds received from loan sales(c)	$	5,516	$	9,354	$	14,438	$	43,176
Gains/(losses) on loan sales(d)(e)	$	—	$	(25)	$	—	$	(25)

(a)Includes securities from U.S. GSEs and Ginnie Mae that are generally sold shortly after receipt or retained as part of the Firm’s investment securities portfolio.

(b)Included in level 2 assets.

(c)Excludes the value of MSRs retained upon the sale of loans.

(d)Gains/(losses) on loan sales include the value of MSRs.

(e)The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.

Options to repurchase delinquent loans

In addition to the Firm’s obligation to repurchase certain loans due to material breaches of representations and warranties as discussed in Note 24, the Firm also has the option to repurchase delinquent loans that it services for Ginnie Mae loan pools, as well as for other U.S. government

agencies under certain arrangements. The Firm typically elects to repurchase delinquent loans from Ginnie Mae loan pools as it continues to service them and/or manage the foreclosure process in accordance with the applicable requirements, and such loans continue to be insured or guaranteed. When the Firm’s repurchase option becomes exercisable, such loans must be reported on the Consolidated balance sheets as a loan with a corresponding liability. Refer to Note 12 for additional information.

The following table presents loans the Firm repurchased or had an option to repurchase, real estate owned, and foreclosed government-guaranteed residential mortgage loans recognized on the Firm’s Consolidated balance sheets as of September 30, 2023 and December 31, 2022. Substantially all of these loans and real estate are insured or guaranteed by U.S. government agencies.


(in millions)	September 30, 2023		December 31, 2022
Loans repurchased or option to repurchase(a)	$	769	$	839
Real estate owned	8		10
Foreclosed government-guaranteed residential mortgage loans(b)	24		27

(a)Predominantly all of these amounts relate to loans that have been repurchased from Ginnie Mae loan pools.

(b)Relates to voluntary repurchases of loans, which are included in accrued interest and accounts receivable.

Loan delinquencies and liquidation losses

The table below includes information about components of and delinquencies related to nonconsolidated securitized financial assets held in Firm-sponsored private-label securitization entities, in which the Firm has continuing involvement as of September 30, 2023 and December 31, 2022.


									Net liquidation losses/(recoveries)
	Securitized assets				90 days past due				Three months ended September 30,				Nine months ended September 30,
(in millions)	September 30, 2023		December 31, 2022		September 30, 2023		December 31, 2022		2023		2022		2023		2022
Securitized loans
Residential mortgage:
Prime / Alt-A & option ARMs	$	38,600	$	37,058	$	471	$	511	$	2	$	(5)	$	12	$	(32)
Subprime	1,290		1,743		131		212		1		(1)		5		(4)
Commercial and other	129,838		127,037		2,342		948		40		11		59		22
Total loans securitized	$	169,728	$	165,838	$	2,944	$	1,671	$	43	$	5	$	76	$	(14)

170

Note 15 – Goodwill and Mortgage servicing rights

Refer to Note 15 of JPMorgan Chase’s 2022 Form 10-K for a discussion of the accounting policies related to goodwill and mortgage servicing rights.

Goodwill

Goodwill is recorded upon completion of a business combination as the difference between the purchase price and the fair value of the net assets acquired, and can be adjusted up to one year from the acquisition date as more information pertaining to facts and circumstances that existed as of the acquisition date is obtained about the fair value of assets acquired and liabilities assumed.

The following table presents goodwill attributed to the reportable business segments and Corporate.


(in millions)	September 30, 2023		December 31, 2022
Consumer & Community Banking	$	32,116	$	32,121
Corporate & Investment Bank	8,244		8,008
Commercial Banking	2,985		2,985
Asset & Wealth Management	8,492		7,902
Corporate	655		646
Total goodwill	$	52,492	$	51,662

The following table presents changes in the carrying amount of goodwill.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Balance at beginning of period	$	52,380	$	50,697	$	51,662	$	50,315
Changes during the period from:
Business combinations(a)	166		882		853		1,352
Other(b)	(54)		(118)		(23)		(206)
Balance at September 30,	$	52,492	$	51,461	$	52,492	$	51,461

(a)For the three months ended September 30, 2023, represents an adjustment to goodwill related to the acquisition of CIFM in AWM. For the nine months ended September 30, 2023, represents estimated goodwill associated with the acquisition of Aumni Inc. in CIB in the second quarter, and the acquisition of the remaining 51% interest in CIFM in AWM in the first quarter. For the three and nine months ended September 30, 2022, represents estimated goodwill associated with the acquisitions of Global Shares PLC in AWM and Figg, Inc. in CCB in the third quarter, and Frosch Travel Group, LLC in CCB and Volkswagen Payments S.A. in CIB in the second quarter.

(b)Predominantly foreign currency adjustments.

Goodwill impairment testing

Goodwill is tested for impairment during the fourth quarter of each fiscal year, or more often if events or circumstances, such as adverse changes in the business climate, indicate that there may be an impairment. Refer to Note 15 of JPMorgan Chase’s 2022 Form 10-K for a further discussion of the Firm’s goodwill impairment testing.

Unanticipated declines in business performance, increases in credit losses, increases in capital requirements, as well as deterioration in economic or market conditions, adverse regulatory or legislative changes or increases in the estimated market cost of equity, could cause the estimated fair values of the Firm’s reporting units to decline in the future, which could result in a material impairment charge to earnings in a future period related to some portion of the associated goodwill.

As of September 30, 2023, the Firm reviewed current economic conditions, estimated market cost of equity, as well as actual business results and projections of business performance. Based on such reviews, the Firm has concluded that goodwill was not impaired as of September 30, 2023, or December 31, 2022, nor was goodwill written off due to impairment during the nine months ended September 30, 2023 or 2022.

171

Mortgage servicing rights

MSRs represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the MSR asset against contractual servicing and ancillary fee income. MSRs are either purchased from third parties or recognized upon sale or securitization of mortgage loans if servicing is retained. Refer to Notes 2 and 15 of JPMorgan Chase’s 2022 Form 10-K for a further description of the MSR asset, interest rate risk management, and the valuation of MSRs.

The following table summarizes MSR activity for the three and nine months ended September 30, 2023 and 2022.


	As of or for the three months ended September 30,				As of or for the nine months ended September 30,
(in millions, except where otherwise noted)	2023		2022		2023		2022
Fair value at beginning of period	$	8,229	$	7,439	$	7,973	$	5,494
MSR activity:
Originations of MSRs	81		140		191		736
Purchase of MSRs(a)	569		370		1,036		1,245
Disposition of MSRs(b)	(101)		(79)		(191)		(750)
Net additions/(dispositions)	549		431		1,036		1,231
Changes due to collection/realization of expected cash flows	(265)		(234)		(760)		(702)
Changes in valuation due to inputs and assumptions:
Changes due to market interest rates and other(c)	555		465		816		2,012
Changes in valuation due to other inputs and assumptions:
Projected cash flows (e.g., cost to service)	(26)		36		(24)		36
Discount rates	14		—		14		—
Prepayment model changes and other(d)	53		3		54		69
Total changes in valuation due to other inputs and assumptions	41		39		44		105
Total changes in valuation due to inputs and assumptions	596		504		860		2,117
Fair value at September 30,	$	9,109	$	8,140	$	9,109	$	8,140
Changes in unrealized gains/(losses) included in income related to MSRs held at September 30,	$	596	$	504	$	860	$	2,117
Contractual service fees, late fees and other ancillary fees included in income	409		391		1,185		1,156
Third-party mortgage loans serviced at September 30, (in billions)	639		587		639		587
Servicer advances, net of an allowance for uncollectible amounts, at September 30(e)	557		786		557		786

(a)Includes purchase price adjustments associated with MSRs purchased in the prior quarter, primarily as a result of loans that prepaid within 90 days of settlement, allowing the Firm to recover the purchase price.

(b)Includes excess MSRs transferred to agency-sponsored trusts in exchange for stripped mortgage-backed securities (“SMBS”). In each transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired the remaining balance of those SMBS as trading securities.

(c)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.

(d)Represents changes in prepayments other than those attributable to changes in market interest rates.

(e)Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk associated with these servicer advances is minimal because reimbursement of the advances is typically senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment to investors if the collateral is insufficient to cover the advance. However, certain of these servicer advances may not be recoverable if they were not made in accordance with applicable rules and agreements.

172

The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the three and nine months ended September 30, 2023 and 2022.


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
CCB mortgage fees and related income
Production revenue	$	162	$	93	$	339	$	454

Net mortgage servicing revenue:
Operating revenue:
Loan servicing revenue	409		400		1,211		1,203
Changes in MSR asset fair value due to collection/realization of expected cash flows	(265)		(234)		(760)		(702)
Total operating revenue	144		166		451		501
Risk management:
Changes in MSR asset fair value due to market interest rates and other(a)	555		465		816		2,012
Other changes in MSR asset fair value due to other inputs and assumptions in model(b)	41		39		44		105
Changes in derivative fair value and other	(485)		(450)		(736)		(1,926)
Total risk management	111		54		124		191
Total net mortgage servicing revenue	255		220		575		692
Total CCB mortgage fees and related income	417		313		914		1,146
All other	(3)		1		(1)		6
Mortgage fees and related income	$	414	$	314	$	913	$	1,152

(a)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.

(b)Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices).

Changes in fair value based on variations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In the following table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change.

The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at September 30, 2023 and December 31, 2022, and outlines hypothetical sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.


(in millions, except rates)	Sep 30, 2023			Dec 31, 2022
Weighted-average prepayment speed assumption (constant prepayment rate)	5.80		%	6.12		%
Impact on fair value of 10% adverse change	$	(198)		$	(183)
Impact on fair value of 20% adverse change	(387)			(356)
Weighted-average option adjusted spread(a)	5.85		%	5.77		%
Impact on fair value of a 100 basis point adverse change	$	(394)		$	(341)
Impact on fair value of a 200 basis point adverse change	(758)			(655)

(a)Includes the impact of operational risk and regulatory capital.

173

Note 16 – Deposits

Refer to Note 17 of JPMorgan Chase’s 2022 Form 10-K for further information on deposits.

As of September 30, 2023 and December 31, 2022, noninterest-bearing and interest-bearing deposits were as follows.


(in millions)	September 30, 2023		December 31, 2022
U.S. offices
Noninterest-bearing (included $61,684 and $26,363 at fair value)(a)	$	651,240	$	644,902
Interest-bearing (included $560 and $586 at fair value)(a)	1,295,609		1,276,346
Total deposits in U.S. offices	1,946,849		1,921,248
Non-U.S. offices
Noninterest-bearing (included $1,409 and $1,398 at fair value)(a)	22,410		27,005
Interest-bearing (included $1,353 and $273 at fair value)(a)	410,267		391,926
Total deposits in non-U.S. offices	432,677		418,931
Total deposits	$	2,379,526	$	2,340,179

(a)Includes structured notes classified as deposits for which the fair value option has been elected. Refer to Note 3 for further discussion.

As of September 30, 2023 and December 31, 2022, time deposits in denominations that met or exceeded the insured limit were as follows.


(in millions)	September 30, 2023		December 31, 2022
U.S. offices	$	120,115	$	64,622
Non-U.S. offices(a)	94,253		77,907
Total	$	214,368	$	142,529

(a)Represents all time deposits in non-U.S. offices as these deposits typically exceed the insured limit.

As of September 30, 2023, the remaining maturities of interest-bearing time deposits in each of the 12-month periods ending September 30 were as follows.


September 30, (in millions)
	U.S.		Non-U.S.		Total
2024	$	174,134	$	91,403	$	265,537
2025	990		299		1,289
2026	278		21		299
2027	138		31		169
2028	97		885		982
After 5 years	509		205		714
Total	$	176,146	$	92,844	$	268,990

Note 17 – Leases

Refer to Note 18 of JPMorgan Chase’s 2022 Form 10-K for a further discussion on leases.

Firm as lessee

At September 30, 2023, JPMorgan Chase and its subsidiaries were obligated under a number of noncancellable leases, predominantly operating leases for premises and equipment used primarily for business purposes.

Operating lease liabilities and right-of-use (“ROU”) assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term.

The carrying values of the Firm’s operating leases were as follows:


(in millions)	September 30, 2023			December 31, 2022
Right-of-use assets	$	8,300	(a)	$	7,782
Lease liabilities	8,697		(b)	8,183

(a)Includes $666 million of right-of-use assets associated with First Republic.

(b)Includes $732 million of lease liabilities associated with First Republic.

The Firm’s net rental expense was $538 million and $496 million for the three months ended September 30, 2023 and 2022, respectively, and $1.5 billion for both the nine months ended September 30, 2023 and 2022.

Firm as lessor

The Firm’s lease financings are predominantly auto operating leases, and are included in other assets on the Firm’s Consolidated balance sheets.

The following table presents the Firm’s operating lease income, included within other income, and the related depreciation expense, included within technology, communications and equipment expense, on the Consolidated statements of income:


	Three months ended September 30,				Nine months ended September 30,
(in millions)	2023		2022		2023		2022
Operating lease income	$	695	$	870	$	2,166	$	2,863
Depreciation expense	468		620		1,344		1,998

174

Note 18 – Long-term debt

JPMorgan Chase issues long-term debt denominated in various currencies, predominantly U.S. dollars, with both fixed and variable interest rates. Included in senior and subordinated debt below are various equity-linked or other indexed instruments, which the Firm has elected to measure at fair value; changes in fair value are recorded in principal transactions revenue in the Consolidated statements of income, except for unrealized gains/(losses) due to DVA which are recorded in OCI. The following table is a summary of long-term debt carrying values (including unamortized premiums and discounts, issuance costs, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of September 30, 2023.


By remaining maturity (in millions, except rates)		September 30, 2023													December 31, 2022
		Under 1 year			1-5 years			After 5 years			Total				Total
Parent company
Senior debt:	Fixed rate	$	6,646		$	84,124		$	94,485		$	185,255			$	194,515
	Variable rate	170			6,143			1,960			8,273				11,565
	Interest rates(f)	2.31		%	2.88		%	3.58		%	3.20		%		3.06		%
Subordinated debt:	Fixed rate	$	2,967		$	5,843		$	8,634		$	17,444			$	19,693
	Variable rate	—			—			—			—				—
	Interest rates(f)	3.88		%	4.88		%	4.69		%	4.62		%		4.50		%
	Subtotal	$	9,783		$	96,110		$	105,079		$	210,972			$	225,773
Subsidiaries
Federal Home Loan Banks advances:	Fixed rate	$	9,903		$	14,040		$	39		$	23,982		(g)	$	93
	Variable rate	3,900			10,000			—			13,900				11,000
	Interest rates(f)	4.75		%	4.69		%	6.06		%	4.72		%		4.32		%
Purchase Money Note(a):	Fixed rate	$	—		$	48,936		$	—		$	48,936			NA
	Interest rates(f)	—		%	3.40		%	—		%	3.40		%		NA
Senior debt:	Fixed rate	$	3,287		$	7,800		$	5,996		$	17,083			$	15,383
	Variable rate	18,410			22,230			5,270			45,910				41,506
	Interest rates(f)	4.36		%	4.99%			1.50		%	1.86		%		2.02		%
Subordinated debt:	Fixed rate	$	—		$	257		$	—		$	257			$	262
	Variable rate	—			—			—			—				—
	Interest rates(f)	—		%	8.25		%	—		%	8.25		%		8.25		%
	Subtotal	$	35,500		$	103,263		$	11,305		$	150,068			$	68,244
Junior subordinated debt:	Fixed rate	$	—		$	—		$	520		$	520			$	550
	Variable rate	—			420			813			1,233				1,298
	Interest rates(f)	—		%	6.17		%	7.43		%	7.13		%		6.33		%
	Subtotal	$	—		$	420		$	1,333		$	1,753			$	1,848
Total long-term debt(b)(c)(d)		$	45,283		$	199,793		$	117,717		$	362,793		(h)(i)	$	295,865
Long-term beneficial interests:
	Fixed rate	$	—		$	2,997		$	—		$	2,997			$	1,999
	Variable rate	—			—			193			193				143
	Interest rates(f)	—		%	4.74		%	4.51		%	4.73		%		2.81		%
Total long-term beneficial interests(e)		$	—		$	2,997		$	193		$	3,190			$	2,142

(a)Reflects the Purchase Money Note associated with the First Republic acquisition. Refer to Note 28 for additional information.

(b)Included long-term debt of $89.6 billion and $13.8 billion secured by assets totaling $231.4 billion and $208.3 billion at September 30, 2023 and December 31, 2022, respectively. The amount of long-term debt secured by assets does not include amounts related to hybrid instruments.

(c)Included $78.4 billion and $72.3 billion of long-term debt accounted for at fair value at September 30, 2023 and December 31, 2022, respectively.

(d)Included $10.1 billion and $10.3 billion of outstanding zero-coupon notes at September 30, 2023 and December 31, 2022, respectively. The aggregate principal amount of these notes at their respective maturities is $46.1 billion and $45.3 billion, respectively. The aggregate principal amount reflects the contractual principal payment at maturity, which may exceed the contractual principal payment at the Firm’s next call date, if applicable.

(e)Included on the Consolidated balance sheets in beneficial interests issued by consolidated VIEs. Also included $66 million and $5 million accounted for at fair value at September 30, 2023 and December 31, 2022, respectively. Excluded short-term commercial paper and other short-term beneficial interests of $21.7 billion and $10.5 billion at September 30, 2023 and December 31, 2022, respectively.

(f)The interest rates shown are the weighted average of contractual rates in effect at September 30, 2023 and December 31, 2022, respectively, including non-U.S. dollar fixed- and variable-rate issuances, which excludes the effects of the associated derivative instruments used in hedge accounting relationships, if applicable. The interest rates shown exclude structured notes accounted for at fair value.

(g)As of September 30, 2023, included $23.9 billion of FHLB advances associated with First Republic. Refer to Note 28 for additional information.

(h)As of September 30, 2023, long-term debt in the aggregate of $189.0 billion was redeemable at the option of JPMorgan Chase, in whole or in part, prior to maturity, based on the terms specified in the respective instruments.

(i)The aggregate carrying values of debt that matures in each of the 12-month periods ending September 30, 2024, 2025, 2026, 2027 and 2028 is $45.3 billion, $52.0 billion, $40.8 billion, $31.6 billion and $75.4 billion, respectively.

175

The weighted-average contractual interest rates for total long-term debt excluding structured notes accounted for at fair value were 3.53% and 3.26% as of September 30, 2023 and December 31, 2022, respectively. In order to modify exposure to interest rate and currency exchange rate movements, JPMorgan Chase utilizes derivative instruments, primarily interest rate and cross-currency interest rate swaps, in conjunction with some of its debt issuances. The use of these instruments modifies the Firm’s interest expense on the associated debt. The modified weighted-average interest rates for total long-term debt, including the effects of related derivative instruments, were 5.15% and 4.89% as of September 30, 2023 and December 31, 2022, respectively.

JPMorgan Chase & Co. has guaranteed certain long-term debt of its subsidiaries, including structured notes. These guarantees rank pari passu with the Firm’s other unsecured and unsubordinated indebtedness. The amount of such guaranteed long-term debt and structured notes was $36.9 billion and $28.2 billion at September 30, 2023 and December 31, 2022, respectively.

The Firm’s unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm’s credit ratings, financial ratios, earnings or stock price.

176

Note 19 - Preferred stock

Refer to Note 21 of JPMorgan Chase’s 2022 Form 10-K for a further discussion on preferred stock.

The following is a summary of JPMorgan Chase’s non-cumulative preferred stock outstanding as of September 30, 2023 and December 31, 2022, and the quarterly dividend declarations for the three and nine months ended September 30, 2023 and 2022.


	Shares(a)		Carrying value (in millions)					Contractual rate in effect at September 30, 2023		Earliest redemption date(b)	Floating annualized rate(c)		Dividend declared per share
	September 30, 2023	December 31, 2022	September 30, 2023		December 31, 2022		Issue date						Three months ended September 30,				Nine months ended September 30,
													2023		2022		2023	2022
Fixed-rate:



Series DD	169,625	169,625	$	1,696	$	1,696	9/21/2018	5.750	%	12/1/2023	NA		$	143.75	$	143.75	$431.25	$431.25
Series EE	185,000	185,000	1,850		1,850		1/24/2019	6.000		3/1/2024	NA		150.00		150.00		450.00	450.00
Series GG	90,000	90,000	900		900		11/7/2019	4.750		12/1/2024	NA		118.75		118.75		356.25	356.25
Series JJ	150,000	150,000	1,500		1,500		3/17/2021	4.550		6/1/2026	NA		113.75		113.75		341.25	341.25
Series LL	185,000	185,000	1,850		1,850		5/20/2021	4.625		6/1/2026	NA		115.63		115.63		346.89	346.89
Series MM	200,000	200,000	2,000		2,000		7/29/2021	4.200		9/1/2026	NA		105.00		105.00		315.00	315.00
Fixed-to-floating-rate:
Series I	—	—	$	—	$	—	4/23/2008	—	%	4/30/2018	—	%	$	—	$	163.87	$—	$375.03
Series Q	150,000	150,000	1,500		1,500		4/23/2013	SOFR + 3.25		5/1/2023	SOFR + 3.25		227.02		128.75		574.25	386.25	(d)
Series R	150,000	150,000	1,500		1,500		7/29/2013	SOFR + 3.30		8/1/2023	SOFR + 3.30		228.30		150.00		528.30	450.00	(e)
Series S	200,000	200,000	2,000		2,000		1/22/2014	6.750		2/1/2024	SOFR + 3.78		168.75		168.75		506.25	506.25
Series U	100,000	100,000	1,000		1,000		3/10/2014	6.125		4/30/2024	SOFR + 3.33		153.13		153.13		459.38	459.38
Series V	—	—	—		—		6/9/2014	—		7/1/2019	—		—		146.15		—	340.91
Series X	160,000	160,000	1,600		1,600		9/23/2014	6.100		10/1/2024	SOFR + 3.33		152.50		152.50		457.50	457.50
Series Z	—	—	—		—		4/21/2015	—		5/1/2020	—		—		—		—	—
Series CC	125,750	125,750	1,258		1,258		10/20/2017	SOFR + 2.58		11/1/2022	SOFR + 2.58		209.90		115.63		594.05	346.88	(f)
Series FF	225,000	225,000	2,250		2,250		7/31/2019	5.000		8/1/2024	SOFR + 3.38		125.00		125.00		375.00	375.00
Series HH	300,000	300,000	3,000		3,000		1/23/2020	4.600		2/1/2025	SOFR + 3.125		115.00		115.00		345.00	345.00
Series II	150,000	150,000	1,500		1,500		2/24/2020	4.000		4/1/2025	SOFR + 2.745		100.00		100.00		300.00	300.00
Series KK	200,000	200,000	2,000		2,000		5/12/2021	3.650		6/1/2026	CMT + 2.85		91.25		91.25		273.75	273.75
Total preferred stock	2,740,375	2,740,375	$	27,404	$	27,404

(a)Represented by depositary shares.

(b)Each series of fixed-to-floating rate preferred stock converts to a floating rate at the earliest redemption date.

(c)Effective June 30, 2023, CME Term SOFR is the replacement reference rate for certain outstanding securities issued by the Firm that used U.S. dollar LIBOR as the reference rate, including fixed-to-floating rate preferred stock. References in the table to “SOFR” mean a floating annualized rate equal to three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spreads noted. The reference to “CMT” means a floating annualized rate equal to the five-year Constant Maturity Treasury (“CMT”) rate plus the spread noted.

(d)The dividend rate for Series Q preferred stock became floating and payable quarterly starting on May 1, 2023; prior to which the dividend rate was fixed at 5.15% or $257.50 per share payable semiannually. The dividend rate for each quarterly dividend period commencing on August 1, 2023 is three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 3.25%.

(e)The dividend rate for Series R preferred stock became floating and payable quarterly starting on August 1, 2023; prior to which the dividend rate was fixed at 6.00% or $300.00 per share payable semiannually. The dividend rate for each quarterly dividend period commencing on August 1, 2023 is three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 3.30%.

(f)The dividend rate for Series CC preferred stock became floating and payable quarterly starting on November 1, 2022; prior to which the dividend rate was fixed at 4.625% or $231.25 per share payable semiannually. The dividend rate for each quarterly dividend period commencing on August 1, 2023 is three-month term SOFR (plus a spread adjustment of 0.26% per annum) plus the spread of 2.58%.

Each series of preferred stock has a liquidation value and redemption price per share of $10,000, plus accrued but unpaid dividends. The aggregate liquidation value was $27.7 billion at September 30, 2023.

Redemptions

On October 31, 2022, the Firm redeemed all $2.9 billion of its fixed to floating rate non-cumulative perpetual preferred stock, Series I.

On October 3, 2022, the Firm redeemed all $2.5 billion of its fixed-to-floating rate non-cumulative preferred stock, Series V.

On February 1, 2022, the Firm redeemed all $2.0 billion of its fixed-to-floating rate non-cumulative preferred stock, Series Z.

177

Note 20 – Earnings per share

Refer to Note 23 of JPMorgan Chase’s 2022 Form 10-K for a discussion of the computation of basic and diluted earnings per share (“EPS”). The following table presents the calculation of basic and diluted EPS for the three and nine months ended September 30, 2023 and 2022.


(in millions, except per share amounts)	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Basic earnings per share
Net income	$	13,151	$	9,737	$	40,245	$	26,668
Less: Preferred stock dividends	386		432		1,115		1,239
Net income applicable to common equity	12,765		9,305		39,130		25,429
Less: Dividends and undistributed earnings allocated to participating securities	80		50		241		134
Net income applicable to common stockholders	$	12,685	$	9,255	$	38,889	$	25,295

Total weighted-average basic shares outstanding	2,927.5		2,961.2		2,946.6		2,966.8
Net income per share	$	4.33	$	3.13	$	13.20	$	8.53

Diluted earnings per share
Net income applicable to common stockholders	$	12,685	$	9,255	$	38,889	$	25,295
Total weighted-average basic shares outstanding	2,927.5		2,961.2		2,946.6		2,966.8
Add: Dilutive impact of unvested PSUs, nondividend-earning RSUs and SARs	4.6		4.2		4.4		4.1
Total weighted-average diluted shares outstanding	2,932.1		2,965.4		2,951.0		2,970.9
Net income per share	$	4.33	$	3.12	$	13.18	$	8.51

178

Note 21 – Accumulated other comprehensive income/(loss)

AOCI includes the after-tax change in unrealized gains and losses on investment securities, foreign currency translation adjustments (including the impact of related derivatives), fair value changes of excluded components on fair value hedges, cash flow hedging activities, net gain/(loss) related to the Firm’s defined benefit pension and OPEB plans, and fair value option-elected liabilities arising from changes in the Firm’s own credit risk (DVA).


As of or for the three months ended September 30, 2023 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)

Balance at July 1, 2023		$	(6,155)			$	(1,278)	$	(43)		$	(5,355)		$	(1,512)		$	53		$	(14,290)
Net change		(1,950)				(340)		(5)			(583)			(21)			85			(2,814)
Balance at September 30, 2023		$	(8,105)	(a)		$	(1,618)	$	(48)		$	(5,938)		$	(1,533)		$	138		$	(17,104)

As of or for the three months ended September 30, 2022 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)

Balance at July 1, 2022		$	(8,844)			$	(1,675)	$	30		$	(4,435)		$	(123)		$	678		$	(14,369)
Net change		(2,145)				(581)		38			(1,698)			(1,004)			625			(4,765)
Balance at September 30, 2022		$	(10,989)	(a)		$	(2,256)	$	68		$	(6,133)		$	(1,127)		$	1,303		$	(19,134)

As of or for the nine months ended September 30, 2023 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)

Balance at January 1, 2023		$	(9,124)			$	(1,545)	$	(33)		$	(5,656)		$	(1,451)		$	468		$	(17,341)




Net change		1,019				(73)		(15)			(282)			(82)			(330)			237
Balance at September 30, 2023		$	(8,105)	(a)		$	(1,618)	$	(48)		$	(5,938)		$	(1,533)		$	138		$	(17,104)

As of or for the nine months ended September 30, 2022 (in millions)	Unrealized gains/(losses) on investment securities				Translation adjustments, net of hedges			Fair value hedges		Cash flow hedges			Defined benefit pension and OPEB plans			DVA on fair value option elected liabilities			Accumulated other comprehensive income/(loss)

Balance at January 1, 2022		$	2,640			$	(934)	$	(131)		$	(296)		$	(210)		$	(1,153)		$	(84)




Net change		(13,629)				(1,322)		199			(5,837)			(917)			2,456			(19,050)
Balance at September 30, 2022		$	(10,989)	(a)		$	(2,256)	$	68		$	(6,133)		$	(1,127)		$	1,303		$	(19,134)

(a)As of September 30, 2023 includes after-tax net unamortized unrealized gains/(losses) of $(29) million related to HTM securities that have been transferred to AFS as permitted by the new hedge accounting guidance adopted on January 1, 2023. As of September 30, 2023 and 2022 includes after-tax net unamortized unrealized gains/(losses) of $(1.0) billion and $(1.3) billion, related to AFS securities that have been transferred to HTM, respectively. Refer to Note 10 of this Form 10-Q, and Note 10 of JPMorgan Chase's 2022 Form 10-K for further information.

179

The following table presents the pre-tax and after-tax changes in the components of OCI.


	2023						2022
Three months ended September 30, (in millions)	Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	$	(3,234)	$	775	$	(2,459)	$	(3,785)	$	912	$	(2,873)
Reclassification adjustment for realized (gains)/losses included in net income(a)	669		(160)		509		959		(231)		728
Net change	(2,565)		615		(1,950)		(2,826)		681		(2,145)
Translation adjustments(b):
Translation	(1,608)		18		(1,590)		(3,017)		164		(2,853)
Hedges	1,647		(397)		1,250		2,992		(720)		2,272
Net change	39		(379)		(340)		(25)		(556)		(581)
Fair value hedges, net change(c):	(7)		2		(5)		50		(12)		38
Cash flow hedges:
Net unrealized gains/(losses) arising during the period	(1,209)		290		(919)		(2,511)		602		(1,909)
Reclassification adjustment for realized (gains)/losses included in net income(d)	443		(107)		336		278		(67)		211
Net change	(766)		183		(583)		(2,233)		535		(1,698)
Defined benefit pension and OPEB plans, net change(e):	(26)		5		(21)		(1,320)		316		(1,004)
DVA on fair value option elected liabilities, net change:	111		(26)		85		823		(198)		625
Total other comprehensive income/(loss)	$	(3,214)	$	400	$	(2,814)	$	(5,531)	$	766	$	(4,765)

	2023						2022
Nine months ended September 30, (in millions)	Pre-tax		Tax effect		After-tax		Pre-tax		Tax effect		After-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period	$	(1,097)	$	264	$	(833)	$	(19,443)	$	4,670	$	(14,773)
Reclassification adjustment for realized (gains)/losses included in net income(a)	2,437		(585)		1,852		1,506		(362)		1,144
Net change	1,340		(321)		1,019		(17,937)		4,308		(13,629)
Translation adjustments(b):
Translation	(509)		(13)		(522)		(6,908)		381		(6,527)
Hedges	596		(147)		449		6,854		(1,649)		5,205
Net change	87		(160)		(73)		(54)		(1,268)		(1,322)
Fair value hedges, net change(c):	(20)		5		(15)		262		(63)		199
Cash flow hedges:
Net unrealized gains/(losses) arising during the period	(1,761)		422		(1,339)		(7,697)		1,847		(5,850)
Reclassification adjustment for realized (gains)/losses included in net income(d)	1,391		(334)		1,057		17		(4)		13
Net change	(370)		88		(282)		(7,680)		1,843		(5,837)
Defined benefit pension and OPEB plans, net change(e):	(105)		23		(82)		(1,197)		280		(917)
DVA on fair value option elected liabilities, net change:	(436)		106		(330)		3,240		(784)		2,456
Total other comprehensive loss	$	496	$	(259)	$	237	$	(23,366)	$	4,316	$	(19,050)

(a)The pre-tax amount is reported in Investment securities gains/(losses) in the Consolidated statements of income.

(b)Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. During the nine months ended September 30, 2023, the Firm reclassified a net pre-tax loss of $(4) million to other revenue predominantly related to the acquisition of CIFM of which $(38) million related to the net investment hedge loss. The amounts reclassified for the three months ended September 30, 2023 and nine months ended September 30, 2022 were not material.

(c)Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross currency swaps.

(d)The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income.

(e)During the period ended September 30, 2022, a remeasurement of the Firm’s U.S. principal defined benefit plan was required as a result of a pension settlement. The remeasurement resulted in a net decrease of $1.4 billion in pre-tax AOCI. Refer to Note 8 for further information.

180

Note 22 – Restricted cash and other restricted

assets

Refer to Note 26 of JPMorgan Chase’s 2022 Form 10-K for a detailed discussion of the Firm’s restricted cash and other restricted assets.

Certain of the Firm’s cash and other assets are restricted as to withdrawal or usage. These restrictions are imposed by various regulatory authorities based on the particular activities of the Firm’s subsidiaries.

The Firm is also subject to rules and regulations established by other U.S. and non-U.S. regulators. As part of its compliance with the respective regulatory requirements, the Firm’s broker-dealer activities are subject to certain restrictions on cash and other assets.

The following table presents the components of the Firm’s restricted cash:


(in billions)	September 30, 2023		December 31, 2022
Segregated for the benefit of securities and cleared derivative customers	$	14.6	$	18.7
Cash reserves at non-U.S. central banks and held for other general purposes	8.6		8.1
Total restricted cash(a)	$	23.2	$	26.8

(a)Comprises $21.8 billion and $25.4 billion in deposits with banks, and $1.4 billion and $1.4 billion in cash and due from banks on the Consolidated balance sheet as of September 30, 2023 and December 31, 2022, respectively.

Also, as of September 30, 2023 and December 31, 2022, the Firm had the following other restricted assets:

•Cash and securities pledged with clearing organizations for the benefit of customers of $35.5 billion and $42.4 billion, respectively.

•Securities with a fair value of $29.9 billion and $31.7 billion, respectively, were also restricted in relation to customer activity.

181

Note 23 – Regulatory capital

Refer to Note 27 of JPMorgan Chase’s 2022 Form 10-K for a detailed discussion on regulatory capital.

The Federal Reserve establishes capital requirements, including well-capitalized requirements, for the consolidated financial holding company. The Office of the Comptroller of the Currency ("OCC") establishes similar minimum capital requirements and standards for the Firm’s principal IDI subsidiary, JPMorgan Chase Bank, N.A.

Under the risk-based capital and leverage-based guidelines of the Federal Reserve, JPMorgan Chase is required to maintain minimum ratios for CET1 capital, Tier 1 capital, Total capital, Tier 1 leverage and the SLR. Failure to meet these minimum requirements could cause the Federal Reserve to take action. IDI subsidiaries are also subject to these capital requirements established by their respective primary regulators.

The following table presents the risk-based regulatory capital ratio requirements and well-capitalized ratios to which the Firm and its IDI subsidiaries were subject as of September 30, 2023 and December 31, 2022.


	Standardized capital ratio requirements				Advanced capital ratio requirements				Well-capitalized ratios
	BHC(a)(b)		IDI(c)		BHC(a)(b)		IDI(c)		BHC(d)		IDI(e)
Risk-based capital ratios
CET1 capital	12.5	%	7.0	%	11.0	%	7.0	%	NA		6.5	%
Tier 1 capital	14.0		8.5		12.5		8.5		6.0	%	8.0
Total capital	16.0		10.5		14.5		10.5		10.0		10.0

Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and its IDI subsidiaries are subject.

(a)Represents the regulatory capital ratio requirements applicable to the Firm. The CET1, Tier 1 and Total capital ratio requirements each include a respective minimum requirement plus a GSIB surcharge of 4.0% as calculated under Method 2; plus a 4.0% SCB for Basel III Standardized ratios and a fixed 2.5% capital conservation buffer for Basel III Advanced ratios. The countercyclical buffer is currently set to 0% by the federal banking agencies.

(b)For the period ended December 31, 2022, the CET1, Tier 1, and Total capital ratio requirements under Basel III Standardized applicable to the Firm were 12.0%, 13.5% and 15.5%, respectively; the Basel III Advanced CET1, Tier 1, and Total capital ratio requirements applicable to the Firm were 10.5%, 12.0%, and 14.0%, respectively.

(c)Represents requirements for JPMorgan Chase’s IDI subsidiaries. The CET1, Tier 1 and Total capital ratio requirements include a fixed capital conservation buffer requirement of 2.5% that is applicable to the IDI subsidiaries. The IDI subsidiaries are not subject to the GSIB surcharge.

(d)Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve.

(e)Represents requirements for IDI subsidiaries pursuant to regulations issued under the FDIC Improvement Act.

The following table presents the leverage-based regulatory capital ratio requirements and well-capitalized ratios to which the Firm and its IDI subsidiaries were subject as of September 30, 2023 and December 31, 2022.


	Capital ratio requirements(a)				Well-capitalized ratios
	BHC		IDI		BHC(b)	IDI
Leverage-based capital ratios
Tier 1 leverage	4.0	%	4.0	%	NA	5.0	%
SLR	5.0		6.0		NA	6.0

Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and its IDI subsidiaries are subject.

(a)Represents minimum SLR requirement of 3.0%, as well as supplementary leverage buffer requirements of 2.0% and 3.0% for BHC and IDI subsidiaries, respectively.

(b)The Federal Reserve's regulations do not establish well-capitalized thresholds for these measures for BHCs.

CECL Regulatory Capital Transition

Refer to Note 27 of JPMorgan Chase’s 2022 Form 10-K for further information on CECL capital transition provisions.

182

The following tables present risk-based capital metrics under both the Basel III Standardized and Basel III Advanced approaches and leverage-based capital metrics for JPMorgan Chase and JPMorgan Chase Bank, N.A. As of September 30, 2023 and December 31, 2022, JPMorgan Chase and JPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject.


September 30, 2023 (in millions, except ratios)	Basel III Standardized						Basel III Advanced
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.				JPMorgan Chase Bank, N.A.
Risk-based capital metrics:(a)
CET1 capital	$	241,825		$	282,480		$	241,825			$	282,480
Tier 1 capital	268,579			282,482			268,579				282,482
Total capital	300,859			302,050			287,560			(b)	288,983


Risk-weighted assets	1,692,219			1,636,819			1,671,593			(b)	1,527,444



CET1 capital ratio	14.3		%	17.3		%	14.5		%		18.5		%
Tier 1 capital ratio	15.9			17.3			16.1				18.5
Total capital ratio	17.8			18.5			17.2				18.9


December 31, 2022 (in millions, except ratios)	Basel III Standardized						Basel III Advanced
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
Risk-based capital metrics:(a)
CET1 capital	$	218,934		$	269,668		$	218,934		$	269,668
Tier 1 capital	245,631			269,672			245,631			269,672
Total capital	277,769			288,433			264,583			275,255


Risk-weighted assets	1,653,538			1,597,072			1,609,773			1,475,602



CET1 capital ratio	13.2		%	16.9		%	13.6		%	18.3		%
Tier 1 capital ratio	14.9			16.9			15.3			18.3
Total capital ratio	16.8			18.1			16.4			18.7

(a)The capital metrics reflect the CECL capital transition provisions.

(b)Includes the impacts of certain assets associated with First Republic to which the Standardized approach has been applied as permitted by the transition provisions in the U.S. capital rules.


Three months ended (in millions, except ratios)	September 30, 2023						December 31, 2022
	JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.			JPMorgan Chase & Co.			JPMorgan Chase Bank, N.A.
Leverage-based capital metrics:(a)
Adjusted average assets(b)	$	3,785,641		$	3,309,068		$	3,703,873		$	3,249,912
Tier 1 leverage ratio	7.1		%	8.5		%	6.6		%	8.3		%
Total leverage exposure	$	4,500,253		$	4,013,044		$	4,367,092		$	3,925,502
SLR	6.0		%	7.0		%	5.6		%	6.9		%

(a)The capital metrics reflect the CECL capital transition provisions.

183

Note 24 – Off–balance sheet lending-related

financial instruments, guarantees, and other

commitments

JPMorgan Chase provides lending-related financial instruments (e.g., commitments and guarantees) to address the financing needs of its customers and clients. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the customer or client draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the customer or client subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm’s view, representative of its expected future credit exposure or funding requirements. Refer to Note 28 of JPMorgan Chase’s 2022 Form 10-K for a further discussion of lending-related commitments and guarantees, and the Firm’s related accounting policies.

To provide for expected credit losses in wholesale and certain consumer lending-related commitments, an allowance for credit losses on lending-related commitments is maintained. Refer to Note 13 for further information regarding the allowance for credit losses on lending-related commitments.

The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at September 30, 2023 and December 31, 2022. The amounts in the table below for credit card, home equity and certain scored business banking lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time. The Firm can reduce or cancel credit card and certain scored business banking lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. In addition, the Firm typically closes credit card lines when the borrower is 60 days or more past due. The Firm may reduce or close HELOCs when there are significant decreases in the value of the underlying property, or when there has been a demonstrable decline in the creditworthiness of the borrower.

184


Off–balance sheet lending-related financial instruments, guarantees and other commitments
	Contractual amount												Carrying value(i)
	September 30, 2023										Dec 31, 2022			Sep 30, 2023			Dec 31, 2022
By remaining maturity (in millions)	Expires in 1 year or less		Expires after 1 year through 3 years		Expires after 3 years through 5 years		Expires after 5 years		Total		Total
Lending-related
Consumer, excluding credit card:
Residential real estate(a)	$	8,355	$	6,091	$	5,940	$	12,224	$	32,610	$	21,287		$	785	(j)	$	75
Auto and other	12,829		257		—		2,617		15,703		12,231			189		(j)	—
Total consumer, excluding credit card	21,184		6,348		5,940		14,841		48,313		33,518			974			75
Credit card(b)	898,903		—		—		—		898,903		821,284			—			—
Total consumer(c)	920,087		6,348		5,940		14,841		947,216		854,802			974			75
Wholesale:
Other unfunded commitments to extend credit(d)	123,603		163,104		191,974		20,968		499,649		440,407			3,169		(h)(j)	2,328		(h)
Standby letters of credit and other financial guarantees(d)	14,411		9,058		3,743		1,071		28,283		27,439			438			408
Other letters of credit(d)	3,407		187		42		—		3,636		4,134			21			6
Total wholesale(c)	141,421		172,349		195,759		22,039		531,568		471,980			3,628			2,742
Total lending-related	$	1,061,508	$	178,697	$	201,699	$	36,880	$	1,478,784	$	1,326,782		$	4,602		$	2,817
Other guarantees and commitments
Securities lending indemnification agreements and guarantees(e)	$	293,539	$	—	$	—	$	—	$	293,539	$	283,386		$	—		$	—
Derivatives qualifying as guarantees	2,344		325		11,622		40,841		55,132		59,180			294			649
Unsettled resale and securities borrowed agreements	129,321		907		—		—		130,228		116,975			1			(2)
Unsettled repurchase and securities loaned agreements	80,018		530		—		—		80,548		66,407			—			(7)
Loan sale and securitization-related indemnifications:
Mortgage repurchase liability	NA		NA		NA		NA		NA		NA			76			76
Loans sold with recourse	NA		NA		NA		NA		803		820			28			28
Exchange & clearing house guarantees and commitments(f)	118,140		—		—		—		118,140		191,068			—			—
Other guarantees and commitments(g)	11,482		523		146		3,468		15,619		8,634			36			53

(a)Includes certain commitments to purchase loans from correspondents.

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

(c)Predominantly all consumer and wholesale lending-related commitments are in the U.S.

(d)As of September 30, 2023 and December 31, 2022, reflected the contractual amount net of risk participations totaling $82 million and $71 million, respectively, for other unfunded commitments to extend credit; $8.2 billion at both periods for standby letters of credit and other financial guarantees; $513 million and $512 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.

(e)As of September 30, 2023 and December 31, 2022, collateral held by the Firm in support of securities lending indemnification agreements was $310.3 billion and $298.5 billion, respectively. Securities lending collateral primarily consists of cash, G7 government securities, and securities issued by U.S. GSEs and government agencies.

(f)As of September 30, 2023 and December 31, 2022, includes guarantees to the Fixed Income Clearing Corporation under the sponsored member repo program and commitments and guarantees associated with the Firm’s membership in certain clearing houses.

(g)As of September 30, 2023 and December 31, 2022, primarily includes unfunded commitments related to certain tax-oriented equity investments, unfunded commitments to purchase secondary market loans, and other equity investment commitments.

(h)As of September 30, 2023 and December 31, 2022 includes net markdowns on held-for-sale positions related to unfunded commitments in the bridge financing portfolio.

(i)For lending-related products, the carrying value includes the allowance for lending-related commitments and the guarantee liability; for derivative-related products, and lending-related commitments for which the fair value option was elected, the carrying value represents the fair value.

(j)As of September 30, 2023, includes fair value adjustments associated with First Republic for residential real estate lending-related commitments totaling $660 million, for auto and other lending-related commitments totaling $189 million and for other unfunded commitments to extend credit totaling $1.3 billion. Refer to Note 28 for additional information.

185

Other unfunded commitments to extend credit

Other unfunded commitments to extend credit generally consist of commitments for working capital and general corporate purposes, extensions of credit to support commercial paper facilities and bond financings in the event that those obligations cannot be remarketed to new investors, as well as committed liquidity facilities to clearing organizations. The Firm also issues commitments under multipurpose facilities which could be drawn upon in several forms, including the issuance of a standby letter of credit.

Standby letters of credit and other financial guarantees

Standby letters of credit and other financial guarantees are conditional lending commitments issued by the Firm to guarantee the performance of a client or customer to a third party under certain arrangements, such as commercial paper facilities, bond financings, acquisition financings, trade financings and similar transactions.

The following table summarizes the contractual amount and carrying value of standby letters of credit and other financial guarantees and other letters of credit arrangements as of September 30, 2023 and December 31, 2022.

Standby letters of credit, other financial guarantees and other letters of credit


	September 30, 2023				December 31, 2022
(in millions)	Standby letters of credit and other financial guarantees		Other letters of credit		Standby letters of credit and other financial guarantees		Other letters of credit
Investment-grade(a)	$	19,276	$	2,712	$	19,205	$	3,040
Noninvestment-grade(a)	9,007		924		8,234		1,094
Total contractual amount	$	28,283	$	3,636	$	27,439	$	4,134

Allowance for lending-related commitments	$	94	$	21	$	82	$	6
Guarantee liability	344		—		326		—
Total carrying value	$	438	$	21	$	408	$	6
Commitments with collateral	$	16,216	$	563	$	15,296	$	795

(a)The ratings scale is based on the Firm’s internal risk ratings. Refer to Note 12 for further information on internal risk ratings.

Derivatives qualifying as guarantees

The Firm transacts in certain derivative contracts that have the characteristics of a guarantee under U.S. GAAP. Refer to Note 28 of JPMorgan Chase’s 2022 Form 10-K for further information on these derivatives.

The following table summarizes the derivatives qualifying as guarantees as of September 30, 2023 and December 31, 2022.


(in millions)	September 30, 2023		December 31, 2022

Notional amounts
Derivative guarantees	$	55,132	$	59,180
Stable value contracts with contractually limited exposure	31,869		31,820
Maximum exposure of stable value contracts with contractually limited exposure	1,472		2,063

Fair value
Derivative payables	294		649

In addition to derivative contracts that meet the characteristics of a guarantee, the Firm is both a purchaser and seller of credit protection in the credit derivatives market. Refer to Note 5 for a further discussion of credit derivatives.

Merchant charge-backs

Under the rules of payment networks, in its role as a merchant acquirer, the Firm's Merchant Services business in CIB Payments, retains a contingent liability for disputed processed credit and debit card transactions that result in a charge-back to the merchant. If a dispute is resolved in the cardholder’s favor, the Firm will (through the cardholder’s issuing bank) credit or refund the amount to the cardholder and will charge back the transaction to the merchant. If the Firm is unable to collect the amount from the merchant, the Firm will bear the loss for the amount credited or refunded to the cardholder. The Firm mitigates this risk by withholding future settlements, retaining cash reserve accounts or obtaining other collateral. In addition, the Firm recognizes a valuation allowance that covers the payment or performance risk related to charge-backs.

186

Loan sales and securitization-related indemnifications

In connection with the Firm’s mortgage loan sale and securitization activities with GSEs the Firm has made representations and warranties that the loans sold meet certain requirements, and that may require the Firm to repurchase mortgage loans and/or indemnify the loan purchaser if such representations and warranties are breached by the Firm.

The liability related to repurchase demands associated with private label securitizations is separately evaluated by the Firm in establishing its litigation reserves. Refer to Note 26 of this Form 10-Q and Note 30 of JPMorgan Chase’s 2022 Form 10-K for additional information regarding litigation.

Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability	8th grade Avg

JPMorgan Chase & Co. (JPM) 10-Q2023 Q3 Quarterly report

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