JP Morgan

JP Morgan Chase Bank
1111 Polaris Parkway
Columbus, OH 43240

Concentration: International Specialization
Established: 1824-01-01
FDIC Insurance: 1934-01-01
FDIC Cert: #628
Holden By: JP Morgan Chase & Co.
# of Branches: 5053
Website: www.jpmorganchase.com
Total Assets: $2,354,812,000,000
Total Deposits: $1,606,043,000,000
Total Equity Capital: $256,755,000,000
Total Domestic Deposits: $1,311,219,000,000
Net Income: $16,103,000,000
Quarterly Net Income: $7,980,338,000
Return on Assets: 1%
Quarterly Return on Assets: 1%
Return on Equity: 13%
Charter Class: Commercial bank national (federal) charter and Fed member oversee by the Office of the Comptroller of the Currency (OCC)

In 2019

3ed Quarter of 2019

JPMORGAN CHASE bank Net revenue on a reported basis was $29.3 billion, $28.8 billion in 3rd quarter of 2019.

Noninterest revenue was $15.7 billion, up $1.9 billion or 14%, and included approximately $350 million of gains related to loan sales in Home Lending8.

Excluding these gains, the increase in noninterest revenue was largely driven by results in Fixed Income Markets in the Corporate & Investment Bank as well as Home Lending and Auto in Consumer & Community Banking.

The provision for credit losses was $1.5 billion, up $566 million, largely as a result of reserve releases and net recoveries in the prior year.

Home Lending net revenue was $1.5 billion, up 12%, predominantly driven by higher net production revenue, largely offset by lower net interest income on lower loan balances.

Noninterest expense was $7.3 billion, up 4%, predominantly driven by investments in the business including marketing and technology, as well as higher auto lease depreciation, partially offset by expense efficiencies and lower FDIC charges.

The provision for credit losses was $1.3 billion, up $331 million, and included a $50 million net reserve build.

In Card net charge offs were higher, in line with expectations, and the current period included a reserve build of $200 million as newer vintages season and become a larger part of the portfolio, compared to a reserve build of $150 million in the prior year.

In-Home Lending the current period included a reserve release of $100 million compared to a reserve release of $250 million in the prior year, as well as lower net recoveries.

In Business Banking the current period included a $50 million reserve release.

Treasury Services revenue was $1.1 billion, down 7%, with deposit margin compression partially offset by fee growth and higher balances.

Lending revenue was $329 million, down 1%. Markets & Securities Services revenue was $6.0 billion, up 9%. Markets revenue was $5.1 billion, up 14%. Fixed Income Markets was $3.6 billion, up 25% compared to the prior year which reflected less favorable market conditions.

Equity Markets revenue was $1.5 billion, down 5% compared to a strong prior year, reflecting lower revenues in derivatives which were partially offset by Cash Equities.

Securities Services revenue was $1.0 billion, down 2%, with deposit margin compression largely offset by organic growth.

The provision for credit losses was $92 million, largely driven by reserve builds on select emerging market client downgrades, compared with a benefit of $42 million in the prior year.

Noninterest expense was $881 million, up 3%, predominantly driven by investments in the business, largely offset by lower FDIC charges.

The provision for credit losses was $67 million, compared with a benefit of $15 million in the prior year.

The provision for credit losses was $44 million, driven by net charge-offs, as well as reserve builds predominantly due to loan growth.

Net revenue was $692 million, compared with a net loss of $103 million in the prior year, driven by higher net interest income and noninterest revenue.

Higher net interest income was driven by higher balances and mix as well as income-related to loan sales in Home Lending8, partially offset by lower rates.

Higher noninterest revenue reflected small net gains on certain legacy private equity investments compared to net losses in the prior year.

Noninterest expense of $281 million was up $253 million due to higher investments in technology and a higher net legal benefit in the prior year.

TCE represents the Firm’s common stockholders’ equity less goodwill and identifiable intangible assets, net of related deferred tax liabilities.

Noninterest revenue in CCB in the third quarter of 2019 included approximately $350 million of gains on loan sales in Home Lending.

These gains were predominantly offset by a change in net interest income in CCB for the unwind of the related internal funding from Treasury and CIO associated with these loans.

This net interest income charge was offset by corresponding income recognized in Treasury and CIO. 7 JPMorgan Chase & Co.

Second Quarter 2019

JPMORGAN CHASE Net revenue on a reported basis was $28.8 billion, $29.1 billion, and $27.8 billion for the second quarter of 2019, first quarter of 2019, and second quarter of 2018, respectively.

Net revenue was $29.6 billion, up 4%. Net interest income was $14.5 billion, up 7%, driven by balance sheet growth and mix, as well as the impact of higher rates.

Noninterest revenue was $15.0 billion, up approximately $300 million, or 2%, driven by several notable items.

Excluding these items, noninterest revenue was relatively flat, with strength in Consumer and Community Banking, offset by lower investment banking fees in the Corporate & Investment Bank and Commercial Banking, as well as lower market noninterest revenue.

Noninterest expense was $16.3 billion, up 2%, driven by continued investments in the business and higher auto lease depreciation, partially offset by lower FDIC charges.

The provision for firm-wide credit losses was $1.1 billion, down 5% as the consumer provision of $1.1 billion was relatively flat to the prior year and the wholesale provision of $27 million decreased by $75 million.

Home Lending net revenue was $1.1 billion, down 17%, driven by mortgage servicing rights adjustments, reflecting updates to model inputs.

Excluding this adjustment, revenue would have been up 4%, driven by higher net production revenue, largely offset by lower net interest income due to the impact of spread compression and lower balances.

Card, Merchant Services & Auto net revenue was $5.9 billion, up 18%, including the impact of a rewards liability adjustment of approximately $330 million in the prior year.

Excluding this adjustment, revenue would have been up 11%, driven by higher Card net interest income on loan growth and margin expansion, and higher auto lease volumes.

Noninterest expense was $7.2 billion, up 4%, largely driven by technology, marketing and other investments in the business, as well as higher auto lease depreciation, partially offset by expense efficiencies and lower FDIC charges.

The provision for credit losses was $1.1 billion, relatively flat compared with the prior year, as higher net charge-offs were offset by a net reserve release.

The increase in net charge-offs was driven by Home Lending, which included a recovery from a loan sale in the prior year, as well as by higher net charge-offs in Card on loan growth.

The current quarter included a reserve release of $400 million in the Home Lending purchased credit-impaired portfolio, reflecting continued improvement in home prices and delinquencies, partially offset by a reserve build of $200 million in Card driven by loan growth and mix.

Treasury Services revenue was $1.1 billion, down 4%, predominantly driven by deposit margin compression, largely offset by growth in balances and fees.

Lending revenue was $337 million, up 5%, predominantly driven by higher net interest income reflecting growth in loan balances.

Markets & Securities Services9 revenue was $6.4 billion, down 1%. Markets revenue of $5.4 billion was flat to the prior year and included a gain from the initial public offering of a strategic investment in the Trade web.

Excluding this gain, the total Market revenue was down 6%, and Fixed Income Markets revenue was down 3%. Fixed Income Markets revenue reflected relative weakness in EMEA across products, largely offset by increased client activity in North America Rates and agency mortgage trading due to the changing rate environment.

Equity Markets revenue was $1.7 billion, down 12%, predominantly driven by lower client activity in derivatives as well as a strong prior-year comparison.

Securities Services revenue was $1.0 billion, down 5%, driven by deposit margin compression and the impact of a business exit, partially offset by increased client activity.

Noninterest expense was $5.5 billion, up 2% reflecting higher legal expense, largely offset by lower performance-based compensation.

The provision for credit losses was $29 million, compared with $43 million in the prior year.

Noninterest expense was $2.6 billion, an increase of 1%, driven by continued investments in advisors and technology, partially offset by lower distribution fees.

Net revenue of $322 million compared with revenue of $80 million in the prior year.

This increase was driven by higher net interest income on higher rates and balance sheet mix.

The current quarter also included net valuation losses of approximately $100 million on certain legacy private equity investments.

Noninterest expense of $232 million was down $47 million.

TCE represents the Firm’s common stockholders’ equity less goodwill and identifiable intangible assets, net of related deferred tax liabilities.

Adjusted Markets revenue excludes a gain from the IPO of a strategic investment in the Trade web.

First Quarter 2019

JPMORGAN CHASE Net revenue on a reported basis was $29.1 billion, $26.1 billion, and $27.9 billion for the first quarter of 2019, fourth quarter of 2018, and the first quarter of 2018, respectively.

Noninterest revenue was $15.3 billion, up 1%. The prior year included $505 million of fair value gains related to the adoption of the recognition and measurement accounting guidance.

Excluding these gains, noninterest revenue was up 5%, driven by higher auto lease income and investment banking fees, as well as the absence of net losses on investment securities and certain legacy private equity investments in the prior year, with lower Markets revenue more than offset by lower funding spreads on derivatives.

Noninterest expense was $16.4 billion, up 2%, driven by investments in the business, including technology, marketing, real estate, and front-office hires, as well as higher auto lease depreciation, partially offset by the absence of the prior-year FDIC surcharge and lower performance-based compensation.

The increase was driven by the Wholesale portfolio, reflecting a net reserve build of $135 million on select Commercial & Industrial10 client downgrades.

Home Lending net revenue was $1.3 billion, down 11%, driven by lower net servicing revenue.

Noninterest expense was $7.2 billion, up 4%, driven by technology, marketing and other investments in the business, as well as higher auto lease depreciation, partially offset by expense efficiencies and the absence of the prior-year FDIC surcharge.

Treasury Services revenue was $1.1 billion, up 3%, driven by balance and fee growth, partially offset by deposit margin compression.

Lending revenue was $340 million, up 13%, driven by higher net interest income.

Excluding these gains, total Market revenue was down 10%, Fixed Income Markets revenue was down 8%, and Equity Markets revenue was down 13%. Fixed Income Markets revenue of $3.7 billion reflected lower revenue in Currencies & Emerging Markets and Rates, driven by lower client activity compared to the prior year, which benefited from strong performance.

Compared to a strong prior year, Equity Markets revenue of $1.7 billion, reflected lower client activity, predominantly in derivatives.

Securities Services revenue was $1.0 billion, down 4%, predominantly driven by fee and deposit margin compression, lower market levels and the impact of a business exit, largely offset by increased client activity.

Noninterest expense was $5.5 billion, down 4% driven by lower performance-based compensation and the absence of the prior year FDIC surcharge, partially offset by higher investments in technology.

The provision for credit losses was $90 million, predominantly driven by reserve builds related to select C&I10 client downgrades.

Noninterest expense was $2.6 billion, an increase of 3%, predominantly driven by continued investments in the business, and other headcount related costs, partially offset by lower external fees.

Assets under management were $2.1 trillion, up 4%, predominantly driven by net inflows into liquidity and long-term products.

Net revenue was $425 million, compared with a net loss of $232 million in the prior year.

TCE represents the Firm’s common stockholders’ equity less goodwill and identifiable intangible assets, net of related deferred tax liabilities.

The capital adequacy of the Firm is evaluated against the FPI measures under Basel III and represents the lower of the Standardized or Advanced approaches.

Effective January 1, 2018, the Firm adopted several new accounting standards, including the recognition and measurement of financial assets.

In 2018

Financial Highlights of JP Morgan Chase Bank

Adjusting for the enactment of the Tax Cuts and Jobs Act, we now have delivered record results in eight of the last nine years, and we have confidence that we will continue to deliver in the future.

In last year’s letter, we emphasized how important a competitive global tax system is for America.

The cumulative effect of capital retained and reinvested over many years in the United States will help cultivate strong businesses and ultimately create jobs and increase wages.

In the last five years, we have bought back almost $55 billion in stock or approximately 660 million shares, which is nearly 20% of the company’s common shares outstanding.

If we buy back a big block of stock this year, we would expect earnings per share in five years to be 2%-3% higher and tangible book value to be virtually unchanged.

Most fundamental of all is doing the right thing for our customers – in all cases.

The onboarding experience for new customers is being simplified.

Corporate & Investment Bank We have been #1 in investment banking for the past decade and finished 2018 with 8.7% of global wallet share, the industry’s best.

We see opportunities in every customer segment from the middle market and small businesses to large corporate clients and their businesses outside of the United States.

The investments we are making in China and in other emerging markets today will result in our international growth for years to come.

Since launching our Middle-Market expansion efforts, we are now local in 39 new markets and have added 2,800 clients, resulting in 22% compounded revenue growth over the last three years.

Commercial Banking’s partnership with the Corporate & Investment Bank continues to be highly successful and is a key growth driver for both businesses.

Being able to deliver the #1 investment bank locally enhances our strategic dialogue with our clients and separates us from our competitors.

In 2018, 39% of the firm’s North America investment banking fees came from Commercial Banking clients, totaling $2.5 billion in revenue, up from $1 billion 10 years ago.

We have continued to innovate our product lineup by adding 47 index funds and exchange-traded funds over the last three years.

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