JPMORGAN CHASE & CO - FORM 8-K - EX-99.2 - EARNINGS RELEASE FINANCIAL SUPPLEMENT - 1Q18

Attached files

file	filename
EX-99.1 - EARNINGS RELEASE - 1Q18 - JPMORGAN CHASE & CO	a1q18erfexhibit991narrative.htm
EX-12.2 - RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS - 1Q18 - JPMORGAN CHASE & CO	a1q18erfexhibit122.htm
EX-12.1 - RATIO OF EARNINGS TO FIXED CHARGES - 1Q18 - JPMORGAN CHASE & CO	a1q18erfexhibit121.htm
8-K - 8-K - JPMORGAN CHASE & CO	a1q18erf8kcover.htm

EARNINGS RELEASE FINANCIAL SUPPLEMENT

FIRST QUARTER 2018



JPMORGAN CHASE & CO.
TABLE OF CONTENTS

							Page(s)
Consolidated Results
Consolidated Financial Highlights							2–3
Consolidated Statements of Income							4
Consolidated Balance Sheets							5
Condensed Average Balance Sheets and Annualized Yields							6
Reconciliation from Reported to Managed Basis							7
Segment Results - Managed Basis							8
Capital and Other Selected Balance Sheet Items							9
Earnings Per Share and Related Information							10

Business Segment Results
Consumer & Community Banking							11–14
Corporate & Investment Bank							15–17
Commercial Banking							18–19
Asset & Wealth Management							20–22
Corporate							23

Credit-Related Information							24–27

Non-GAAP Financial Measures and Key Performance Measures							28
Financial Accounting Standards Board Standards Adopted January 1, 2018							29–30

Glossary of Terms and Acronyms (a)


(a)	Refer to the Glossary of Terms and Acronyms on pages 283–289 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”).



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

	QUARTERLY TRENDS
																				1Q18 Change
SELECTED INCOME STATEMENT DATA	1Q18				4Q17			3Q17				2Q17				1Q17				4Q17		1Q17
Reported Basis
Total net revenue	$	27,907			$	24,457		$	25,578			$	25,731			$	24,939			14	%	12	%
Total noninterest expense	16,080				14,895			14,570				14,767				15,283				8		5
Pre-provision profit	11,827				9,562			11,008				10,964				9,656				24		22
Provision for credit losses	1,165				1,308			1,452				1,215				1,315				(11	)	(11	)
NET INCOME	8,712				4,232			6,732				7,029				6,448				106		35

Managed Basis (a)
Total net revenue	28,520				25,754			26,452				26,666				25,850				11		10
Total noninterest expense	16,080				14,895			14,570				14,767				15,283				8		5
Pre-provision profit	12,440				10,859			11,882				11,899				10,567				15		18
Provision for credit losses	1,165				1,308			1,452				1,215				1,315				(11	)	(11	)
NET INCOME	8,712				4,232			6,732				7,029				6,448				106		35

EARNINGS PER SHARE DATA
Net income: Basic	$	2.38			$	1.08		$	1.77			$	1.83			$	1.66			120		43
Diluted	2.37				1.07			1.76				1.82				1.65				121		44
Average shares: Basic	3,458.3				3,489.7			3,534.7				3,574.1				3,601.7				(1	)	(4	)
Diluted	3,479.5				3,512.2			3,559.6				3,599.0				3,630.4				(1	)	(4	)

MARKET AND PER COMMON SHARE DATA
Market capitalization	$	374,423			$	366,301		$	331,393			$	321,633			$	312,078			2		20
Common shares at period-end	3,404.8				3,425.3			3,469.7				3,519.0				3,552.8				(1	)	(4	)
Closing share price (b)	$	109.97			$	106.94		$	95.51			$	91.40			$	87.84			3		25
Book value per share	67.59				67.04			66.95				66.05				64.68				1		4
Tangible book value per share (“TBVPS”) (c)	54.05				53.56			54.03				53.29				52.04				1		4
Cash dividends declared per share	0.56				0.56			0.56				0.50				0.50				—		12

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)	15		%		7		%	11		%		12		%		11		%
Return on tangible common equity (“ROTCE”) (c)	19				8			13				14				13
Return on assets	1.37				0.66			1.04				1.10				1.03

CAPITAL RATIOS
Common equity Tier 1 (“CET1”) capital ratio (e)	11.8		%	(g)	12.2		%	12.5		%	(h)	12.5		%	(h)	12.4		%	(h)
Tier 1 capital ratio (e)	13.5			(g)	13.9			14.1			(h)	14.2			(h)	14.1			(h)
Total capital ratio (e)	15.3			(g)	15.9			16.1				16.0				15.6
Tier 1 leverage ratio (e)	8.2			(g)	8.3			8.4				8.5				8.4
Supplementary leverage ratio ("SLR") (f)	6.5		%	(g)	6.5			6.6				6.7				6.6

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


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


(b)	Based on the closing price reported by the New York Stock Exchange.


(c)	TBVPS and ROTCE are non-GAAP financial measures. TBVPS represents tangible common equity (“TCE”) divided by common shares at period-end. ROTCE measures the Firm’s annualized earnings as a percentage of average TCE. TCE is also a non-GAAP financial measure; for a reconciliation of common stockholders’ equity to TCE, see page 9. For further discussion of these measures, see page 28.


(d)	Quarterly ratios are based upon annualized amounts.


(e)	Ratios presented are calculated under the Basel III Transitional capital rules and for the capital ratios represent the Collins Floor. See footnote (a) on page 9 for additional information on Basel III and the Collins Floor.


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


(g)	Estimated.


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

Page 2



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

	QUARTERLY TRENDS
																1Q18 Change
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,609,785		$	2,533,600		$	2,563,074		$	2,563,174		$	2,546,290		3	%	2	%
Loans:
Consumer, excluding credit card loans	373,395			372,681			369,601			365,371			367,055			—		2
Credit card loans	140,414			149,511			141,313			140,141			135,016			(6	)	4
Wholesale loans	420,615			408,505			402,847			403,255			393,903			3		7
Total Loans	934,424			930,697			913,761			908,767			895,974			—		4
Core loans (a)	870,536			863,683			843,432			834,935			812,119			1		7
Core loans (average) (a)	861,089			850,166			837,522			824,583			805,382			1		7

Deposits:
U.S. offices:
Noninterest-bearing	397,856			393,645			390,863			394,921			400,439			1		(1	)
Interest-bearing	825,223			793,618			783,233			781,709			775,258			4		6
Non-U.S. offices:
Noninterest-bearing	17,019			15,576			17,907			17,152			16,456			9		3
Interest-bearing	246,863			241,143			247,024			245,691			230,846			2		7
Total deposits	1,486,961			1,443,982			1,439,027			1,439,473			1,422,999			3		4

Long-term debt	274,449			284,080			288,582			292,973			289,492			(3	)	(5	)
Common stockholders’ equity	230,133			229,625			232,314			232,415			229,795			—		—
Total stockholders’ equity	256,201			255,693			258,382			258,483			255,863			—		—

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

Headcount	253,707			252,539			251,503			249,257			246,345			—		3

95% CONFIDENCE LEVEL - TOTAL VaR
Average VaR	$	43		$	34		$	30		$	27		$	25		26		72

LINE OF BUSINESS NET REVENUE (b)
Consumer & Community Banking	$	12,597		$	12,070		$	12,033		$	11,412		$	10,970		4		15
Corporate & Investment Bank	10,483			7,518			8,615			8,925			9,599			39		9
Commercial Banking	2,166			2,353			2,146			2,088			2,018			(8	)	7
Asset & Wealth Management	3,506			3,638			3,472			3,437			3,288			(4	)	7
Corporate	(232		)	175			186			804			(25		)	NM		NM
TOTAL NET REVENUE	$	28,520		$	25,754		$	26,452		$	26,666		$	25,850		11		10

LINE OF BUSINESS NET INCOME
Consumer & Community Banking	$	3,326		$	2,631		$	2,553		$	2,223		$	1,988		26		67
Corporate & Investment Bank	3,974			2,316			2,546			2,710			3,241			72		23
Commercial Banking	1,025			957			881			902			799			7		28
Asset & Wealth Management	770			654			674			624			385			18		100
Corporate	(383		)	(2,326		)	78			570			35			84		NM
NET INCOME	$	8,712		$	4,232		$	6,732		$	7,029		$	6,448		106		35


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


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

Page 3



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

	QUARTERLY TRENDS
																1Q18 Change
REVENUE	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
Investment banking fees	$	1,736		$	1,818		$	1,868		$	1,846		$	1,880		(5	)%	(8	)%
Principal transactions	3,952			1,907			2,721			3,137			3,582			107		10
Lending- and deposit-related fees	1,477			1,506			1,497			1,482			1,448			(2	)	2
Asset management, administration and commissions	4,309			4,291			4,072			4,047			3,877			—		11
Securities gains/(losses)	(245		)	(28		)	(1		)	(34		)	(3		)	NM		NM
Mortgage fees and related income	465			377			429			404			406			23		15
Card income	1,275			1,110			1,242			1,167			914			15		39
Other income	1,626			449			952			1,474			771			262		111
Noninterest revenue	14,595			11,430			12,780			13,523			12,875			28		13
Interest income	17,695			16,993			16,687			15,650			15,042			4		18
Interest expense	4,383			3,966			3,889			3,442			2,978			11		47
Net interest income	13,312			13,027			12,798			12,208			12,064			2		10
TOTAL NET REVENUE	27,907			24,457			25,578			25,731			24,939			14		12

Provision for credit losses	1,165			1,308			1,452			1,215			1,315			(11	)	(11	)

NONINTEREST EXPENSE
Compensation expense	8,862			7,498			7,697			7,757			8,256			18		7
Occupancy expense	888			920			930			912			961			(3	)	(8	)
Technology, communications and equipment expense	2,054			2,038			1,972			1,871			1,834			1		12
Professional and outside services	2,121			2,244			1,955			1,899			1,792			(5	)	18
Marketing	800			721			710			756			713			11		12
Other expense (a)	1,355			1,474			1,306			1,572			1,727			(8	)	(22	)
TOTAL NONINTEREST EXPENSE	16,080			14,895			14,570			14,767			15,283			8		5
Income before income tax expense	10,662			8,254			9,556			9,749			8,341			29		28
Income tax expense (b)	1,950			4,022			2,824			2,720			1,893			(52	)	3
NET INCOME	$	8,712		$	4,232		$	6,732		$	7,029		$	6,448		106		35

NET INCOME PER COMMON SHARE DATA
Basic earnings per share	$	2.38		$	1.08		$	1.77		$	1.83		$	1.66		120		43
Diluted earnings per share	2.37			1.07			1.76			1.82			1.65			121		44

FINANCIAL RATIOS
Return on common equity (c)	15		%	7		%	11		%	12		%	11		%
Return on tangible common equity (c)(d)	19			8			13			14			13
Return on assets (c)	1.37			0.66			1.04			1.10			1.03
Effective income tax rate (b)	18.3			48.7			29.6			27.9			22.7
Overhead ratio	58			61			57			57			61


(a)	Included Firmwide legal expense/(benefit) of $70 million, $(207) million, $(107) million, $61 million and $218 million for the three months ended March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively.


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


(c)	Quarterly ratios are based upon annualized amounts.


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

Page 4



JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
																Mar 31, 2018
																Change
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,		Mar 31,
	2018			2017			2017			2017			2017			2017		2017
ASSETS
Cash and due from banks	$	24,834		$	25,898		$	22,064		$	21,820		$	20,524		(4	)%	21	%
Deposits with banks	389,978			405,406			437,092			428,706			441,362			(4	)	(12	)
Federal funds sold and securities purchased under
resale agreements	247,608			198,422			185,454			218,570			190,566			25		30
Securities borrowed	116,132			105,112			101,680			90,654			92,309			10		26
Trading assets:
Debt and equity instruments	355,368			325,321			362,158			350,558			346,450			9		3
Derivative receivables	56,914			56,523			58,260			56,506			56,063			1		2
Investment securities	238,188			249,958			263,288			263,458			281,850			(5	)	(15	)
Loans	934,424			930,697			913,761			908,767			895,974			—		4
Less: Allowance for loan losses	13,375			13,604			13,539			13,363			13,413			(2	)	—
Loans, net of allowance for loan losses	921,049			917,093			900,222			895,404			882,561			—		4
Accrued interest and accounts receivable	72,659			67,729			61,757			64,038			60,038			7		21
Premises and equipment	14,382			14,159			14,218			14,206			14,227			2		1
Goodwill, MSRs and other intangible assets	54,533			54,392			53,855			53,880			54,218			—		1
Other assets	118,140			113,587			103,026			105,374			106,122			4		11
TOTAL ASSETS	$	2,609,785		$	2,533,600		$	2,563,074		$	2,563,174		$	2,546,290		3		2

LIABILITIES
Deposits	$	1,486,961		$	1,443,982		$	1,439,027		$	1,439,473		$	1,422,999		3		4
Federal funds purchased and securities loaned or sold
under repurchase agreements	179,091			158,916			169,393			165,621			183,316			13		(2	)
Short-term borrowings	62,667			51,802			53,967			53,143			39,250			21		60
Trading liabilities:
Debt and equity instruments	99,588			85,886			89,089			91,628			90,913			16		10
Derivative payables	36,949			37,777			39,446			41,795			44,575			(2	)	(17	)
Accounts payable and other liabilities	192,295			189,383			196,764			189,160			183,200			2		5
Beneficial interests issued by consolidated VIEs	21,584			26,081			28,424			30,898			36,682			(17	)	(41	)
Long-term debt	274,449			284,080			288,582			292,973			289,492			(3	)	(5	)
TOTAL LIABILITIES	2,353,584			2,277,907			2,304,692			2,304,691			2,290,427			3		3

STOCKHOLDERS’ EQUITY
Preferred stock	26,068			26,068			26,068			26,068			26,068			—		—
Common stock	4,105			4,105			4,105			4,105			4,105			—		—
Additional paid-in capital	89,211			90,579			90,697			90,604			90,395			(2	)	(1	)
Retained earnings	183,855			177,676			175,827			171,488			166,663			3		10
Accumulated other comprehensive income/(loss)	(1,063		)	(119		)	(309		)	(392		)	(923		)	NM		(15	)
Shares held in RSU Trust, at cost	(21		)	(21		)	(21		)	(21		)	(21		)	—		—
Treasury stock, at cost	(45,954		)	(42,595		)	(37,985		)	(33,369		)	(30,424		)	(8	)	(51	)
TOTAL STOCKHOLDERS’ EQUITY	256,201			255,693			258,382			258,483			255,863			—		—
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,609,785		$	2,533,600		$	2,563,074		$	2,563,174		$	2,546,290		3		2

Page 5



JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
	QUARTERLY TRENDS
																		1Q18 Change
AVERAGE BALANCES	1Q18			4Q17			3Q17			2Q17				1Q17				4Q17		1Q17
ASSETS
Deposits with banks	$	423,807		$	438,740		$	456,673		$	439,142			$	423,746			(3	)%	—	%
Federal funds sold and securities purchased under
resale agreements	198,362			188,545			188,594			193,302				196,965				5		1
Securities borrowed	109,733			100,120			95,597			90,151				95,372				10		15
Trading assets - debt instruments	256,040			247,063			240,876			234,809				225,801				4		13
Investment securities	239,754			253,767			261,117			274,695				285,565				(6	)	(16	)
Loans	926,548			918,806			909,580			904,969				891,904				1		4
All other interest-earning assets (a)	49,169			42,666			41,737			40,041				41,559				15		18
Total interest-earning assets	2,203,413			2,189,707			2,194,174			2,177,109				2,160,912				1		2
Trading assets - equity instruments	107,688			102,874			119,463			126,127				115,284				5		(7	)
Trading assets - derivative receivables	60,492			58,890			59,839			58,250				61,400				3		(1	)
All other noninterest-earning assets	214,450			210,684			195,755			197,750				195,566				2		10
TOTAL ASSETS	$	2,586,043		$	2,562,155		$	2,569,231		$	2,559,236			$	2,533,162			1		2
LIABILITIES
Interest-bearing deposits	$	1,046,521		$	1,030,660		$	1,029,534		$	1,006,008			$	986,015			2		6
Federal funds purchased and securities loaned or
sold under repurchase agreements	196,112			181,898			181,851			196,331				189,611				8		3
Short-term borrowings (b)	57,603			53,236			52,958			43,159				36,521				8		58
Trading liabilities - debt and other interest-bearing liabilities (c)	171,488			168,440			168,738			173,373				176,824				2		(3	)
Beneficial interests issued by consolidated VIEs	23,561			27,295			29,832			34,083				38,775				(14	)	(39	)
Long-term debt	279,005			283,301			294,626			295,868				292,224				(2	)	(5	)
Total interest-bearing liabilities	1,774,290			1,744,830			1,757,539			1,748,822				1,719,970				2		3
Noninterest-bearing deposits	399,487			405,531			401,489			404,121				405,548				(1	)	(1	)
Trading liabilities - equity instruments	28,631			22,747			20,905			19,346				21,072				26		36
Trading liabilities - derivative payables	41,745			38,845			44,627			44,740				48,373				7		(14	)
All other noninterest-bearing liabilities	88,207			91,987			86,742			85,939				84,428				(4	)	4
TOTAL LIABILITIES	2,332,360			2,303,940			2,311,302			2,302,968				2,279,391				1		2
Preferred stock	26,068			26,642			26,068			26,068				26,068				(2	)	—
Common stockholders’ equity	227,615			231,573			231,861			230,200				227,703				(2	)	—
TOTAL STOCKHOLDERS’ EQUITY	253,683			258,215			257,929			256,268				253,771				(2	)	—
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,586,043		$	2,562,155		$	2,569,231		$	2,559,236			$	2,533,162			1		2

AVERAGE RATES (d)
INTEREST-EARNING ASSETS
Deposits with banks	1.26		%	1.12		%	1.09		%	0.93			%	0.69			%
Federal funds sold and securities purchased under
resale agreements	1.49			1.37			1.31			1.10				1.08
Securities borrowed (e)	0.23			0.11			—			(0.09		)		(0.19		)
Trading assets - debt instruments	3.35			3.25			3.25			3.13				3.38
Investment securities	3.08			3.15			3.10			3.11				3.01
Loans	4.87			4.67			4.62			4.46				4.47
All other interest-earning assets (a)	5.61			5.11			4.96			4.35				3.30
Total interest-earning assets	3.29			3.14			3.07			2.95				2.88

INTEREST-BEARING LIABILITIES
Interest-bearing deposits	0.41			0.35			0.32			0.25				0.20
Federal funds purchased and securities loaned or
sold under repurchase agreements	1.20			1.05			0.98			0.79				0.63
Short-term borrowings (b)	1.47			1.21			1.12			0.89				0.79
Trading liabilities - debt and other interest-bearing liabilities (c)	1.56			1.37			1.34			1.19				0.93
Beneficial interests issued by consolidated VIEs	2.11			1.71			1.62			1.51				1.41
Long-term debt	2.55			2.41			2.37			2.29				2.21
Total interest-bearing liabilities	1.00			0.90			0.88			0.79				0.70

INTEREST RATE SPREAD	2.29		%	2.24		%	2.19		%	2.16			%	2.18			%
NET YIELD ON INTEREST-EARNING ASSETS	2.48		%	2.42		%	2.37		%	2.31			%	2.33			%


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


(b)	Includes commercial paper.


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


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


(e)	Negative yield is related to client-driven demand for certain securities combined with the impact of low interest rates; this is matched book activity and the negative interest expense on the corresponding securities loaned is recognized in interest expense and reported within trading liabilities – debt and other interest-bearing liabilities.

Page 6

JPMORGAN CHASE & CO.

RECONCILIATION FROM REPORTED TO MANAGED BASIS

(in millions, except ratios)

The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the U.S. (“U.S. GAAP”). That presentation, which is referred to as “reported” basis, provides the reader with an understanding of the Firm’s results that can be tracked consistently from year-to-year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are considered non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. For additional information on managed basis, refer to the notes on Non-GAAP Financial Measures on page 28.

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



	QUARTERLY TRENDS
																1Q18 Change
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
OTHER INCOME
Other income - reported	$	1,626		$	449		$	952		$	1,474		$	771		262	%	111	%
Fully taxable-equivalent adjustments (a)	455			971			555			596			582			(53	)	(22	)
Other income - managed	$	2,081		$	1,420		$	1,507		$	2,070		$	1,353		47		54

TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported	$	14,595		$	11,430		$	12,780		$	13,523		$	12,875		28		13
Fully taxable-equivalent adjustments (a)	455			971			555			596			582			(53	)	(22	)
Total noninterest revenue - managed	$	15,050		$	12,401		$	13,335		$	14,119		$	13,457		21		12

NET INTEREST INCOME
Net interest income - reported	$	13,312		$	13,027		$	12,798		$	12,208		$	12,064		2		10
Fully taxable-equivalent adjustments (a)	158			326			319			339			329			(52	)	(52	)
Net interest income - managed	$	13,470		$	13,353		$	13,117		$	12,547		$	12,393		1		9

TOTAL NET REVENUE
Total net revenue - reported	$	27,907		$	24,457		$	25,578		$	25,731		$	24,939		14		12
Fully taxable-equivalent adjustments (a)	613			1,297			874			935			911			(53	)	(33	)
Total net revenue - managed	$	28,520		$	25,754		$	26,452		$	26,666		$	25,850		11		10

PRE-PROVISION PROFIT
Pre-provision profit - reported	$	11,827		$	9,562		$	11,008		$	10,964		$	9,656		24		22
Fully taxable-equivalent adjustments (a)	613			1,297			874			935			911			(53	)	(33	)
Pre-provision profit - managed	$	12,440		$	10,859		$	11,882		$	11,899		$	10,567		15		18

INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported	$	10,662		$	8,254		$	9,556		$	9,749		$	8,341		29		28
Fully taxable-equivalent adjustments (a)	613			1,297			874			935			911			(53	)	(33	)
Income before income tax expense - managed	$	11,275		$	9,551		$	10,430		$	10,684		$	9,252		18		22

INCOME TAX EXPENSE
Income tax expense - reported	$	1,950		$	4,022		$	2,824		$	2,720		$	1,893		(52	)	3
Fully taxable-equivalent adjustments (a)	613			1,297			874			935			911			(53	)	(33	)
Income tax expense - managed	$	2,563		$	5,319		$	3,698		$	3,655		$	2,804		(52	)	(9	)

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

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

Page 7



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


	QUARTERLY TRENDS
																1Q18 Change
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking	$	12,597		$	12,070		$	12,033		$	11,412		$	10,970		4	%	15	%
Corporate & Investment Bank	10,483			7,518			8,615			8,925			9,599			39		9
Commercial Banking	2,166			2,353			2,146			2,088			2,018			(8	)	7
Asset & Wealth Management	3,506			3,638			3,472			3,437			3,288			(4	)	7
Corporate	(232		)	175			186			804			(25		)	NM		NM
TOTAL NET REVENUE	$	28,520		$	25,754		$	26,452		$	26,666		$	25,850		11		10

TOTAL NONINTEREST EXPENSE
Consumer & Community Banking	$	6,909		$	6,672		$	6,495		$	6,500		$	6,395		4		8
Corporate & Investment Bank	5,659			4,553			4,793			4,877			5,184			24		9
Commercial Banking	844			912			800			790			825			(7	)	2
Asset & Wealth Management	2,581			2,612			2,408			2,417			2,781			(1	)	(7	)
Corporate	87			146			74			183			98			(40	)	(11	)
TOTAL NONINTEREST EXPENSE	$	16,080		$	14,895		$	14,570		$	14,767		$	15,283		8		5

PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking	$	5,688		$	5,398		$	5,538		$	4,912		$	4,575		5		24
Corporate & Investment Bank	4,824			2,965			3,822			4,048			4,415			63		9
Commercial Banking	1,322			1,441			1,346			1,298			1,193			(8	)	11
Asset & Wealth Management	925			1,026			1,064			1,020			507			(10	)	82
Corporate	(319		)	29			112			621			(123		)	NM		(159	)
PRE-PROVISION PROFIT	$	12,440		$	10,859		$	11,882		$	11,899		$	10,567		15		18

PROVISION FOR CREDIT LOSSES
Consumer & Community Banking	$	1,317		$	1,231		$	1,517		$	1,394		$	1,430		7		(8	)
Corporate & Investment Bank	(158		)	130			(26		)	(53		)	(96		)	NM		(65	)
Commercial Banking	(5		)	(62		)	(47		)	(130		)	(37		)	92		86
Asset & Wealth Management	15			9			8			4			18			67		(17	)
Corporate	(4		)	—			—			—			—			NM		NM
PROVISION FOR CREDIT LOSSES	$	1,165		$	1,308		$	1,452		$	1,215		$	1,315		(11	)	(11	)

NET INCOME/(LOSS)
Consumer & Community Banking	$	3,326		$	2,631		$	2,553		$	2,223		$	1,988		26		67
Corporate & Investment Bank	3,974			2,316			2,546			2,710			3,241			72		23
Commercial Banking	1,025			957			881			902			799			7		28
Asset & Wealth Management	770			654			674			624			385			18		100
Corporate	(383		)	(2,326		)	78			570			35			84		NM
TOTAL NET INCOME	$	8,712		$	4,232		$	6,732		$	7,029		$	6,448		106		35

Page 8



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

																				Mar 31, 2018
																				Change
	Mar 31,				Dec 31,			Sep 30,				Jun 30,				Mar 31,				Dec 31,		Mar 31,
	2018				2017			2017				2017				2017				2017		2017
CAPITAL (a)
Risk-based capital metrics
Standardized Transitional
CET1 capital	$	183,669		(f)	$	183,300		$	187,061			$	186,942			$	184,337			—	%	—	%
Tier 1 capital	209,312			(f)	208,644			212,297				212,353				209,653				—		—
Total capital	238,332			(f)	238,395			242,949				243,061				240,222				—		(1	)
Risk-weighted assets	1,553,727			(f)	1,499,506			1,500,658			(g)	1,496,904			(g)	1,488,827			(g)	4		4
CET1 capital ratio	11.8		%	(f)	12.2		%	12.5		%	(g)	12.5		%	(g)	12.4		%	(g)
Tier 1 capital ratio	13.5			(f)	13.9			14.1			(g)	14.2			(g)	14.1			(g)
Total capital ratio	15.3			(f)	15.9			16.2			(g)	16.2			(g)	16.1			(g)

Advanced Transitional
CET1 capital	$	183,669		(f)	$	183,300		$	187,061			$	186,942			$	184,337			—		—
Tier 1 capital	209,312			(f)	208,644			212,297				212,353				209,653				—		—
Total capital	228,374			(f)	227,933			232,794				233,345				229,436				—		—
Risk-weighted assets	1,467,318			(f)	1,435,825			1,443,019				1,459,196				1,467,992				2		—
CET1 capital ratio	12.5		%	(f)	12.8		%	13.0		%		12.8		%		12.6		%
Tier 1 capital ratio	14.3			(f)	14.5			14.7				14.6				14.3
Total capital ratio	15.6			(f)	15.9			16.1				16.0				15.6

Leverage-based capital metrics
Adjusted average assets (c)	$	2,539,198		(f)	$	2,514,270		$	2,521,889			$	2,512,120			$	2,486,114			1		2
Tier 1 leverage ratio	8.2		%	(f)	8.3		%	8.4		%		8.5		%		8.4		%

Total leverage exposure (b)	3,234,175			(f)	3,204,463			3,211,053				3,193,072				3,171,822				1		2
SLR (b)	6.5		%	(f)	6.5		%	6.6		%		6.7		%		6.6		%

TANGIBLE COMMON EQUITY (period-end) (d)
Common stockholders’ equity	$	230,133			$	229,625		$	232,314			$	232,415			$	229,795			—		—
Less: Goodwill	47,499				47,507			47,309				47,300				47,292				—		—
Less: Other intangible assets	832				855			808				827				847				(3	)	(2	)
Add: Deferred tax liabilities (e)	2,216				2,204			3,271				3,252				3,225				1		(31	)
Total tangible common equity	$	184,018			$	183,467		$	187,468			$	187,540			$	184,881			—		—

TANGIBLE COMMON EQUITY (average) (d)
Common stockholders’ equity	$	227,615			$	231,573		$	231,861			$	230,200			$	227,703			(2	)	—
Less: Goodwill	47,504				47,376			47,309				47,290				47,293				—		—
Less: Other intangible assets	845				820			818				838				853				3		(1	)
Add: Deferred tax liabilities (e)	2,210				2,738			3,262				3,239				3,228				(19	)	(32	)
Total tangible common equity	$	181,476			$	186,115		$	186,996			$	185,311			$	182,785			(2	)	(1	)

INTANGIBLE ASSETS (period-end)
Goodwill	$	47,499			$	47,507		$	47,309			$	47,300			$	47,292			—		—
Mortgage servicing rights	6,202				6,030			5,738				5,753				6,079				3		2
Other intangible assets	832				855			808				827				847				(3	)	(2	)
Total intangible assets	$	54,533			$	54,392		$	53,855			$	53,880			$	54,218			—		1

(a)

Basel III sets forth two comprehensive approaches for calculating risk-weighted assets: a Standardized approach and an Advanced approach. As required by the Collins Amendment of the Dodd-Frank Act, the capital adequacy of the Firm is evaluated against the Basel III approach (Standardized or Advanced) that results, for each quarter, in the lower ratio (the “Collins Floor”). For further discussion of the implementation of Basel III, see Capital Risk Management on pages 82-91 of the 2017 Annual Report.


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


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


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


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


(f)	Estimated.


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

Page 9



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

	QUARTERLY TRENDS
																1Q18 Change
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
EARNINGS PER SHARE
Basic earnings per share
Net income	$	8,712		$	4,232		$	6,732		$	7,029		$	6,448		106	%	35	%
Less: Preferred stock dividends	409			428			412			411			412			(4	)	(1	)
Net income applicable to common equity	8,303			3,804			6,320			6,618			6,036			118		38
Less: Dividends and undistributed earnings allocated to
participating securities	65			30			58			63			61			117		7
Net income applicable to common stockholders	$	8,238		$	3,774		$	6,262		$	6,555		$	5,975		118		38

Total weighted-average basic shares outstanding	3,458.3			3,489.7			3,534.7			3,574.1			3,601.7			(1	)	(4	)
Net income per share	$	2.38		$	1.08		$	1.77		$	1.83		$	1.66		120		43

Diluted earnings per share
Net income applicable to common stockholders	$	8,238		$	3,774		$	6,262		$	6,555		$	5,975		118		38
Total weighted-average basic shares outstanding	3,458.3			3,489.7			3,534.7			3,574.1			3,601.7			(1	)	(4	)
Add: Employee stock options, stock appreciation rights (“SARs”), warrants and performance share units (“PSUs”)	21.2			22.5			24.9			24.9			28.7			(6	)	(26	)
Total weighted-average diluted shares outstanding	3,479.5			3,512.2			3,559.6			3,599.0			3,630.4			(1	)	(4	)
Net income per share	$	2.37		$	1.07		$	1.76		$	1.82		$	1.65		121		44

COMMON DIVIDENDS
Cash dividends declared per share	$	0.56		$	0.56		$	0.56		$	0.50		$	0.50		—		12
Dividend payout ratio	23		%	51		%	31		%	27		%	30		%

COMMON EQUITY REPURCHASE PROGRAM (a)
Total shares of common stock repurchased	41.4			47.8			51.7			35.0			32.1			(13	)	29
Average price paid per share of common stock	$	112.78		$	100.74		$	92.02		$	86.05		$	88.14		12		28
Aggregate repurchases of common equity	4,671			4,808			4,763			3,007			2,832			(3	)	65

EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans	19.8			2.5			0.9			0.9			21.0			NM		(6	)
Net impact of employee issuances on stockholders’ equity (b)	$	(69	)	$	92		$	238		$	270		$	29		NM		NM


(a)	On June 28, 2017, the Firm announced, that it is authorized to repurchase up to $19.4 billion of common equity between July 1, 2017 and June 30, 2018, under a new equity repurchase program authorized by the Board of Directors.


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

Page 10



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


	QUARTERLY TRENDS
																1Q18 Change
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	857		$	884		$	885		$	850		$	812		(3	)%	6	%
Asset management, administration and commissions	575			568			543			562			539			1		7
Mortgage fees and related income	465			378			428			401			406			23		15
Card income	1,170			1,005			1,141			1,061			817			16		43
All other income	1,072			976			901			810			743			10		44
Noninterest revenue	4,139			3,811			3,898			3,684			3,317			9		25
Net interest income	8,458			8,259			8,135			7,728			7,653			2		11
TOTAL NET REVENUE	12,597			12,070			12,033			11,412			10,970			4		15

Provision for credit losses	1,317			1,231			1,517			1,394			1,430			7		(8	)

NONINTEREST EXPENSE
Compensation expense (a)	2,660			2,555			2,548			2,504			2,526			4		5
Noncompensation expense (a)(b)	4,249			4,117			3,947			3,996			3,869			3		10
TOTAL NONINTEREST EXPENSE	6,909			6,672			6,495			6,500			6,395			4		8

Income before income tax expense	4,371			4,167			4,021			3,518			3,145			5		39
Income tax expense	1,045			1,536			1,468			1,295			1,157			(32	)	(10	)
NET INCOME	$	3,326		$	2,631		$	2,553		$	2,223		$	1,988		26		67

REVENUE BY LINE OF BUSINESS
Consumer & Business Banking	$	5,722		$	5,557		$	5,408		$	5,233		$	4,906		3		17
Home Lending	1,509			1,442			1,558			1,426			1,529			5		(1	)
Card, Merchant Services & Auto	5,366			5,071			5,067			4,753			4,535			6		18

MORTGAGE FEES AND RELATED INCOME DETAILS:
Net production revenue	95			185			158			152			141			(49	)	(33	)
Net mortgage servicing revenue (c)	370			193			270			249			265			92		40
Mortgage fees and related income	$	465		$	378		$	428		$	401		$	406		23		15

FINANCIAL RATIOS
ROE	25		%	19		%	19		%	17		%	15		%
Overhead ratio	55			55			54			57			58


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


(b)	Included operating lease depreciation expense of $777 million, $726 million, $688 million, $638 million and $599 million for the three months ended March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively.


(c)	Included MSR risk management results of $17 million, $(110) million, $(23) million, $(57) million and $(52) million for the three months ended March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively.

Page 11



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

	QUARTERLY TRENDS
											1Q18 Change
	1Q18		4Q17		3Q17		2Q17		1Q17		4Q17		1Q17
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	540,659	$	552,601	$	537,459	$	529,859	$	524,770	(2	)%	3	%

Loans:
Consumer & Business Banking	25,856		25,789		25,275		25,044		24,386		—		6
Home equity	40,777		42,751		44,542		46,330		48,234		(5	)	(15	)
Residential mortgage	199,548		197,339		195,134		189,661		185,114		1		8
Home Lending	240,325		240,090		239,676		235,991		233,348		—		3
Credit Card	140,414		149,511		141,313		140,141		135,016		(6	)	4
Auto	66,042		66,242		65,102		65,627		65,568		—		1
Student	—		—		47		75		6,253		NM		NM
Total loans	472,637		481,632		471,413		466,878		464,571		(2	)	2
Core loans	409,296		415,167		401,648		393,639		381,393		(1	)	7

Deposits	685,170		659,885		653,460		648,369		646,962		4		6
Equity	51,000		51,000		51,000		51,000		51,000		—		—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	538,938	$	538,311	$	531,959	$	528,598	$	532,098	—		1

Loans:
Consumer & Business Banking	25,845		25,234		25,166		24,725		24,359		2		6
Home equity	41,786		43,624		45,424		47,339		49,278		(4	)	(15	)
Residential mortgage	198,653		197,032		192,805		187,201		183,756		1		8
Home Lending	240,439		240,656		238,229		234,540		233,034		—		3
Credit Card	142,927		143,500		141,172		138,132		137,211		—		4
Auto	65,863		65,616		65,175		65,474		65,315		—		1
Student	—		12		58		4,642		6,916		NM		NM
Total loans	475,074		475,018		469,800		467,513		466,835		—		2
Core loans	410,147		406,935		398,319		387,783		381,016		1		8

Deposits	659,599		651,976		645,732		639,873		622,915		1		6
Equity	51,000		51,000		51,000		51,000		51,000		—		—

Headcount (a)	133,408		133,721		134,151		135,040		133,176		—		—

Note: In the first quarter of 2017, the Firm transferred the student loan portfolio to held-for-sale. Net charge-offs related to the portfolio predominantly reflected a write-down of the portfolio to the estimated fair value at the time of the transfer. This transfer impacted certain loan and credit-related metrics disclosed on pages 12-13 and 24-27.


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

Page 12



JPMORGAN CHASE & CO.
CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)	QUARTERLY TRENDS
																			1Q18 Change
	1Q18			4Q17				3Q17				2Q17				1Q17			4Q17		1Q17
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)	$	4,104		$	4,084			$	4,068			$	4,124			$	4,442		—	%	(8	)%
Net charge-offs/(recoveries) (c)
Consumer & Business Banking	53			73				71				56				57			(27	)	(7	)
Home equity	16			(4		)		13				7				47			NM		(66	)
Residential mortgage	2			(13		)		(2		)		(4		)		3			NM		(33	)
Home Lending	18			(17		)		11				3				50			NM		(64	)
Credit Card	1,170			1,074				1,019				1,037				993			9		18
Auto	76			86				116				48				81			(12	)	(6	)
Student	—			—				—				—				498		(h)	NM		NM
Total net charge-offs/(recoveries)	$	1,317		$	1,216			$	1,217		(g)	$	1,144			$	1,679	(h)	8		(22	)
Net charge-off/(recovery) rate (c)
Consumer & Business Banking	0.83		%	1.15			%	1.12			%	0.91			%	0.95		%
Home equity (d)	0.21			(0.05		)		0.15				0.08				0.52
Residential mortgage (d)	—			(0.03		)		—				(0.01		)		0.01
Home Lending (d)	0.03			(0.03		)		0.02				0.01				0.10
Credit Card	3.32			2.97				2.87				3.01				2.94
Auto	0.47			0.52				0.71				0.29				0.50
Student	—			—				—				—				NM
Total net charge-off/(recovery) rate (d)	1.20			1.09				1.10			(g)	1.07				1.58		(h)

30+ day delinquency rate
Home Lending (e)(f)	0.98		%	1.19			%	1.03			%	1.02			%	1.08		%
Credit Card	1.82			1.80				1.76				1.59				1.66
Auto	0.71			0.89				0.93				0.88				0.93
Student	—			—				—				—				—
90+ day delinquency rate - Credit Card	0.95			0.92				0.86				0.80				0.87

Allowance for loan losses
Consumer & Business Banking	$	796		$	796			$	796			$	796			$	753		—		6
Home Lending, excluding PCI loans	1,003			1,003				1,153				1,153				1,328			—		(24	)
Home Lending - PCI loans (c)	2,205			2,225				2,245				2,265				2,287			(1	)	(4	)
Credit Card	4,884			4,884				4,684				4,384				4,034			—		21
Auto	464			464				499				499				474			—		(2	)
Student	—			—				—				—				—			NM		NM
Total allowance for loan losses (c)	$	9,352		$	9,372			$	9,377			$	9,097			$	8,876		—		5

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


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

(b)

At March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $4.0 billion, $4.3 billion, $4.0 billion, $4.1 billion and $4.5 billion, respectively. Student loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) and 90 or more days past due were also excluded from nonaccrual loans prior to sale of the student loan portfolio in the second quarter of 2017. These amounts have been excluded based upon the government guarantee.

(c)

Net charge-offs/(recoveries) and the net charge-off/(recovery) rates for the three months ended March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, excluded write-offs in the PCI portfolio of $20 million, $20 million, $20 million, $22 million and $24 million, respectively. These write-offs decreased the allowance for loan losses for PCI loans. For further information on PCI write-offs, see Summary of Changes in the Allowances on page 26.

(d)

Excludes the impact of PCI loans. For the three months ended March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of 0.16%, (0.04)%, 0.11%, 0.06% and 0.39%, respectively; (2) residential mortgage of -%, (0.03)%, -%, (0.01)% and 0.01%, respectively; (3) Home Lending of 0.03%, (0.03)%, 0.02%, 0.01% and 0.09%, respectively; and (4) total CCB of 1.12%, 1.02%, 1.03%, 0.99% and 1.46%, respectively.


(e)	At March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, excluded mortgage loans insured by U.S. government agencies of $5.7 billion, $6.2 billion, $5.9 billion, $6.0 billion and $6.3 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.


(f)	Excludes PCI loans. The 30+ day delinquency rate for PCI loans was 9.49%, 10.13%, 9.30%, 9.06% and 9.11% at March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, respectively.


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


(h)	Excluding net charge-offs of $467 million related to the student loan portfolio sale, the total net charge-off rate for the three months ended March 31, 2017 would have been 1.14%.

Page 13



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

	QUARTERLY TRENDS
																					1Q18 Change
	1Q18				4Q17				3Q17				2Q17				1Q17				4Q17		1Q17
BUSINESS METRICS
Number of:
Branches	5,106				5,130				5,174				5,217				5,246				—	%	(3	)%
Active digital customers (in thousands) (a)	47,911				46,694				46,349				45,876				45,463				3		5
Active mobile customers (in thousands) (b)	30,924				30,056				29,273				28,386				27,256				3		13

Debit and credit card sales volume (in billions)	$	232.4			$	245.1			$	231.1			$	231.3		(e)	$	209.4		(e)	(5	)	11

Consumer & Business Banking
Average deposits	$	646,400			$	637,160			$	630,351			$	625,381			$	609,035			1		6
Deposit margin	2.20			%	2.06			%	2.02			%	1.96			%	1.88			%
Business banking origination volume	$	1,656			$	1,798			$	1,654			$	2,193			$	1,703			(8	)	(3	)
Client investment assets	276,183				273,325				262,513				252,993				245,050				1		13

Home Lending (in billions)
Mortgage origination volume by channel
Retail	$	8.3			$	11.0			$	10.6			$	9.7			$	9.0			(25	)	(8	)
Correspondent	9.9				13.4				16.3				14.2				13.4				(26	)	(26	)
Total mortgage origination volume (c)	$	18.2			$	24.4			$	26.9			$	23.9			$	22.4			(25	)	(19	)
Total loans serviced (period-end)	$	804.9			$	816.1			$	821.6			$	827.8			$	836.3			(1	)	(4	)
Third-party mortgage loans serviced (period-end)	539.0				553.5				556.9				568.0				582.6				(3	)	(7	)
MSR carrying value (period-end)	6.2				6.0				5.7				5.8				6.1				3		2
Ratio of MSR carrying value (period-end) to third-party mortgage
loans serviced (period-end)	1.15			%	1.08			%	1.02			%	1.02			%	1.05			%
MSR revenue multiple (d)	3.19		x		3.09		x		2.91		x		2.91		x		3.00		x

Credit Card, excluding Commercial Card
Credit card sales volume (in billions)	$	157.1			$	168.0			$	157.7			$	156.8			$	139.7			(6	)	12
New accounts opened	2.0				1.9				1.9				2.1				2.5				5		(20	)

Card Services
Net revenue rate	11.61			%	10.64			%	10.95			%	10.53			%	10.15			%

Merchant Services
Merchant processing volume (in billions)	$	316.3			$	321.4			$	301.6			$	294.4			$	274.3			(2	)	15

Auto
Loan and lease origination volume (in billions)	$	8.4			$	8.2			$	8.8			$	8.3			$	8.0			2		5
Average Auto operating lease assets	17,582				16,630				15,641				14,728				13,757				6		28


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


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


(c)	Firmwide mortgage origination volume was $20.0 billion, $26.6 billion, $29.2 billion, $26.2 billion and $25.6 billion for the three months ended March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, respectively.


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


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

Page 14



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
	QUARTERLY TRENDS
																1Q18 Change
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
INCOME STATEMENT
REVENUE
Investment banking fees	$	1,696		$	1,798		$	1,844		$	1,839		$	1,875		(6	)%	(10	)%
Principal transactions	4,029			1,765			2,673			2,928			3,507			128		15
Lending- and deposit-related fees	381			382			374			387			388			—		(2	)
Asset management, administration and commissions	1,131			1,046			1,041			1,068			1,052			8		8
All other income	680			(50		)	187			258			177			NM		284
Noninterest revenue	7,917			4,941			6,119			6,480			6,999			60		13
Net interest income	2,566			2,577			2,496			2,445			2,600			—		(1	)
TOTAL NET REVENUE (a)(b)	10,483			7,518			8,615			8,925			9,599			39		9

Provision for credit losses	(158		)	130			(26		)	(53		)	(96		)	NM		(65	)

NONINTEREST EXPENSE
Compensation expense	3,036			1,997			2,284			2,451			2,799			52		8
Noncompensation expense	2,623			2,556			2,509			2,426			2,385			3		10
TOTAL NONINTEREST EXPENSE	5,659			4,553			4,793			4,877			5,184			24		9

Income before income tax expense	4,982			2,835			3,848			4,101			4,511			76		10
Income tax expense	1,008			519			1,302			1,391			1,270			94		(21	)
NET INCOME (a)	$	3,974		$	2,316		$	2,546		$	2,710		$	3,241		72		23

FINANCIAL RATIOS
ROE	22		%	12		%	13		%	15		%	18		%
Overhead ratio	54			61			56			55			54
Compensation expense as a percent of total net revenue	29			27			27			27			29

REVENUE BY BUSINESS
Investment Banking	$	1,587		$	1,677		$	1,730		$	1,731		$	1,714		(5	)	(7	)
Treasury Services	1,116			1,078			1,058			1,055			981			4		14
Lending	302			336			331			373			389			(10	)	(22	)
Total Banking	3,005			3,091			3,119			3,159			3,084			(3	)	(3	)
Fixed Income Markets	4,553			2,217			3,164			3,216			4,215			105		8
Equity Markets	2,017			1,148			1,363			1,586			1,606			76		26
Securities Services	1,059			1,012			1,007			982			916			5		16
Credit Adjustments & Other (c)	(151		)	50			(38		)	(18		)	(222		)	NM		32
Total Markets & Investor Services	7,478			4,427			5,496			5,766			6,515			69		15
TOTAL NET REVENUE (a)	$	10,483		$	7,518		$	8,615		$	8,925		$	9,599		39		9


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

(b)

Included tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; as well as tax-exempt income from municipal bonds of $405 million, $756 million, $505 million, $554 million and $551 million for the three months ended March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively.


(c)	Consists primarily of credit valuation adjustments (“CVA”) managed centrally within CIB, funding valuation adjustments (“FVA”) and debit valuation adjustments (“DVA”) on derivatives. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.

Page 15



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
	QUARTERLY TRENDS
																1Q18 Change
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
SELECTED BALANCE SHEET DATA (period-end)
Assets	$	909,845		$	826,384		$	851,808		$	847,377		$	840,304		10	%	8	%
Loans:
Loans retained (a)	112,626			108,765			106,955			108,935			107,902			4		4
Loans held-for-sale and loans at fair value	6,122			4,321			3,514			7,168			6,477			42		(5	)
Total loans	118,748			113,086			110,469			116,103			114,379			5		4
Core loans	118,434			112,754			110,133			115,764			114,003			5		4

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

SELECTED BALANCE SHEET DATA (average)
Assets	$	910,146		$	866,293		$	858,912		$	864,686		$	838,017		5		9
Trading assets - debt and equity instruments	354,869			338,836			349,448			351,678			328,339			5		8
Trading assets - derivative receivables	60,161			56,140			55,875			54,937			58,948			7		2
Loans:
Loans retained (a)	109,355			107,263			107,829			110,011			108,389			2		1
Loans held-for-sale and loans at fair value	5,480			4,224			4,674			5,789			5,308			30		3
Total loans	114,835			111,487			112,503			115,800			113,697			3		1
Core loans	114,514			111,152			112,168			115,434			113,309			3		1

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

Headcount	51,291			51,181			50,641			49,228			48,700			—		5

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	20		$	22		$	20		$	47		$	(18	)	(9	)	NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (b)	668			812			437			462			308			(18	)	117
Nonaccrual loans held-for-sale and loans at fair value	29			—			2			31			109			NM		(73	)
Total nonaccrual loans	697			812			439			493			417			(14	)	67

Derivative receivables	132			130			164			170			179			2		(26	)
Assets acquired in loan satisfactions	91			85			92			71			87			7		5
Total nonperforming assets	920			1,027			695			734			683			(10	)	35
Allowance for credit losses:
Allowance for loan losses	1,128			1,379			1,253			1,298			1,346			(18	)	(16	)
Allowance for lending-related commitments	800			727			745			745			797			10		—
Total allowance for credit losses	1,928			2,106			1,998			2,043			2,143			(8	)	(10	)

Net charge-off/(recovery) rate (a)(d)	0.07		%	0.08		%	0.07		%	0.17		%	(0.07		)%
Allowance for loan losses to period-end loans retained (a)	1.00			1.27			1.17			1.19			1.25
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (c)	1.46			1.92			1.79			1.83			1.91
Allowance for loan losses to nonaccrual loans retained (a)(b)	169			170			287			281			437
Nonaccrual loans to total period-end loans	0.59			0.72			0.40			0.42			0.36


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


(b)	Allowance for loan losses of $298 million, $316 million, $177 million, $164 million and $61 million were held against nonaccrual loans at March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively.


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


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

Page 16



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
	QUARTERLY TRENDS
																1Q18 Change
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
BUSINESS METRICS
Advisory	$	575		$	526		$	620		$	503		$	501		9	%	15	%
Equity underwriting	346			361			300			382			425			(4	)	(19	)
Debt underwriting	775			911			924			954			949			(15	)	(18	)
Total investment banking fees	$	1,696		$	1,798		$	1,844		$	1,839		$	1,875		(6	)	(10	)

Assets under custody (“AUC”) (period-end) (in billions)	$	24,026		$	23,469		$	22,738		$	22,134		$	21,383		2		12

Client deposits and other third-party liabilities (average) (a)	423,301			417,003			421,588			404,920			391,716			2		8

95% Confidence Level - Total CIB VaR (average)
CIB trading VaR by risk type: (b)
Fixed income	$	34		$	28		$	28		$	28		$	28		21		21
Foreign exchange	9			7			13			8			10			29		(10	)
Equities	17			14			12			12			11			21		55
Commodities and other	5			6			6			8			8			(17	)	(38	)
Diversification benefit to CIB trading VaR (c)	(25		)	(24		)	(31		)	(30		)	(34		)	(4	)	26
CIB trading VaR (b)	40			31			28			26			23			29		74
Credit portfolio VaR (d)	3			4			5			9			10			(25	)	(70	)
Diversification benefit to CIB VaR (c)	(3		)	(3		)	(3		)	(8		)	(8		)	—		63
CIB VaR	$	40		$	32		$	30		$	27		$	25		25		60


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


(b)	CIB trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in CIB, including credit spread sensitivity to CVA. For further information, see VaR measurement on pages 123–125 of the 2017 Annual Report.


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


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

Page 17



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


	QUARTERLY TRENDS
																					1Q18 Change
	1Q18				4Q17				3Q17				2Q17				1Q17				4Q17		1Q17
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	226			$	229			$	223			$	232			$	235			(1	)%	(4	)%
Asset management, administration and commissions	18				18				16				16				18				—		—
All other income (a)	305				501				353				335				346				(39	)	(12	)
Noninterest revenue	549				748				592				583				599				(27	)	(8	)
Net interest income	1,617				1,605				1,554				1,505				1,419				1		14
TOTAL NET REVENUE (b)	2,166				2,353				2,146				2,088				2,018				(8	)	7

Provision for credit losses	(5		)		(62		)		(47		)		(130		)		(37		)		92		86

NONINTEREST EXPENSE
Compensation expense (c)	421				378				386				382				388				11		9
Noncompensation expense (c)	423				534				414				408				437				(21	)	(3	)
TOTAL NONINTEREST EXPENSE	844				912				800				790				825				(7	)	2

Income before income tax expense	1,327				1,503				1,393				1,428				1,230				(12	)	8
Income tax expense	302				546				512				526				431				(45	)	(30	)
NET INCOME	$	1,025			$	957			$	881			$	902			$	799			7		28

Revenue by product
Lending	$	999			$	1,049			$	1,030			$	1,023			$	992			(5	)	1
Treasury services	972				921				873				854				796				6		22
Investment banking (d)	184				204				196				189				216				(10	)	(15	)
Other	11				179				47				22				14				(94	)	(21	)
Total Commercial Banking net revenue (b)	$	2,166			$	2,353			$	2,146			$	2,088			$	2,018			(8	)	7

Investment banking revenue, gross (e)	$	569			$	608			$	578			$	533			$	666			(6	)	(15	)

Revenue by client segment
Middle Market Banking	$	895			$	870			$	848			$	839			$	784			3		14
Corporate Client Banking	687				711				688				662				666				(3	)	3
Commercial Term Lending	352				356				367				364				367				(1	)	(4	)
Real Estate Banking	164				166				157				147				134				(1	)	22
Other	68				250				86				76				67				(73	)	1
Total Commercial Banking net revenue (b)	$	2,166			$	2,353			$	2,146			$	2,088			$	2,018			(8	)	7

FINANCIAL RATIOS
ROE	20			%	18			%	17			%	17			%	15			%
Overhead ratio	39				39				37				38				41


(a)	Includes revenue from investment banking products and commercial card transactions.

(b)

Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities, as well as tax-exempt income related to municipal financing activities of $103 million, $304 million, $143 million, $131 million and $121 million for the three months ended March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively. The three months ended December 31, 2017 results reflect the estimated impact of the enactment of the TCJA including a benefit to other revenue of $115 million on certain investments in the Community Development Banking business.

(c)

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


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


(e)	Represents total Firm revenue from investment banking products sold to CB clients. As a result of the adoption of the revenue recognition guidance prior period amounts have been revised to conform with the current period presentation. Refer to page 29 for additional information.

Page 18



JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)	QUARTERLY TRENDS
																	1Q18 Change
	1Q18			4Q17			3Q17			2Q17			1Q17				4Q17		1Q17
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	220,880		$	221,228		$	220,064		$	220,676		$	217,348			—	%	2	%
Loans:
Loans retained	202,812			202,400			201,463			197,912			194,538				—		4
Loans held-for-sale and loans at fair value	2,473			1,286			764			1,661			1,056				92		134
Total loans	$	205,285		$	203,686		$	202,227		$	199,573		$	195,594			1		5
Core loans	205,087			203,469			201,999			199,319			195,296				1		5
Equity	20,000			20,000			20,000			20,000			20,000				—		—

Period-end loans by client segment
Middle Market Banking	$	57,835		$	56,965		$	56,192		$	56,377		$	55,113			2		5
Corporate Client Banking	47,562			46,963			47,682			45,918			45,798				1		4
Commercial Term Lending	75,052			74,901			74,349			73,760			72,496				—		4
Real Estate Banking	17,709			17,796			17,127			16,726			15,846				—		12
Other	7,127			7,061			6,877			6,792			6,341				1		12
Total Commercial Banking loans	$	205,285		$	203,686		$	202,227		$	199,573		$	195,594			1		5

SELECTED BALANCE SHEET DATA (average)
Total assets	$	217,159		$	218,452		$	218,196		$	217,694		$	213,784			(1	)	2
Loans:
Loans retained	201,966			201,948			199,487			196,454			190,774				—		6
Loans held-for-sale and loans at fair value	406			844			675			1,402			717				(52	)	(43	)
Total loans	$	202,372		$	202,792		$	200,162		$	197,856		$	191,491			—		6
Core loans	202,161			202,569			199,920			197,567			191,180				—		6
Client deposits and other third-party liabilities	175,618			181,815			176,218			173,214			176,780				(3	)	(1	)
Equity	20,000			20,000			20,000			20,000			20,000				—		—

Average loans by client segment
Middle Market Banking	$	56,754		$	56,170		$	55,782		$	55,651		$	54,267			1		5
Corporate Client Banking	45,760			47,585			46,451			46,483			43,582				(4	)	5
Commercial Term Lending	74,942			74,577			74,136			73,081			71,880				—		4
Real Estate Banking	17,845			17,474			16,936			16,139			15,525				2		15
Other	7,071			6,986			6,857			6,502			6,237				1		13
Total Commercial Banking loans	$	202,372		$	202,792		$	200,162		$	197,856		$	191,491			—		6

Headcount (a)	10,372			10,061			10,014			9,857			9,593				3		8

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	—		$	22		$	19		$	8		$	(10	)		(100	)	100
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (b)	666			617			744			819			929				8		(28	)
Nonaccrual loans held-for-sale and loans
at fair value	—			—			—			—			—				—		—
Total nonaccrual loans	666			617			744			819			929				8		(28	)

Assets acquired in loan satisfactions	1			3			3			4			11				(67	)	(91	)
Total nonperforming assets	667			620			747			823			940				8		(29	)
Allowance for credit losses:
Allowance for loan losses	2,591			2,558			2,620			2,678			2,896				1		(11	)
Allowance for lending-related commitments	263			300			323			331			251				(12	)	5
Total allowance for credit losses	2,854			2,858			2,943			3,009			3,147				—		(9	)

Net charge-off/(recovery) rate (c)	—		%	0.04		%	0.04		%	0.02		%	(0.02		)	%
Allowance for loan losses to period-end loans retained	1.28			1.26			1.30			1.35			1.49
Allowance for loan losses to nonaccrual loans retained (b)	389			415			352			327			312
Nonaccrual loans to period-end total loans	0.32			0.30			0.37			0.41			0.47


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


(b)	Allowance for loan losses of $116 million, $92 million, $128 million, $112 million and $115 million was held against nonaccrual loans retained at March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively.


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

Page 19



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


	QUARTERLY TRENDS
																1Q18 Change
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	2,528		$	2,651		$	2,466		$	2,435		$	2,304		(5	)%	10	%
All other income	102			128			151			156			165			(20	)	(38	)
Noninterest revenue	2,630			2,779			2,617			2,591			2,469			(5	)	7
Net interest income	876			859			855			846			819			2		7
TOTAL NET REVENUE	3,506			3,638			3,472			3,437			3,288			(4	)	7

Provision for credit losses	15			9			8			4			18			67		(17	)

NONINTEREST EXPENSE
Compensation expense	1,392			1,389			1,319			1,277			1,332			—		5
Noncompensation expense	1,189			1,223			1,089			1,140			1,449			(3	)	(18	)
TOTAL NONINTEREST EXPENSE	2,581			2,612			2,408			2,417			2,781			(1	)	(7	)

Income before income tax expense	910			1,017			1,056			1,016			489			(11	)	86
Income tax expense	140			363			382			392			104			(61	)	35
NET INCOME	$	770		$	654		$	674		$	624		$	385		18		100

REVENUE BY LINE OF BUSINESS
Asset Management	$	1,787		$	1,969		$	1,814		$	1,786		$	1,688		(9	)	6
Wealth Management	1,719			1,669			1,658			1,651			1,600			3		7
TOTAL NET REVENUE	$	3,506		$	3,638		$	3,472		$	3,437		$	3,288		(4	)	7

FINANCIAL RATIOS
ROE	34		%	28		%	29		%	27		%	16		%
Overhead ratio	74			72			69			70			85
Pretax margin ratio:
Asset Management	26			29			29			27			1
Wealth Management	26			27			32			33			30
Asset & Wealth Management	26			28			30			30			15

Headcount	23,268			22,975			22,685			22,289			22,196			1		5

Number of Wealth Management client advisors	2,640			2,605			2,581			2,452			2,480			1		6

Page 20



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

	QUARTERLY TRENDS
																1Q18 Change
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	158,439		$	151,909		$	149,170		$	147,508		$	141,049		4	%	12	%
Loans	136,030			130,640			128,038			124,517			119,947			4		13
Core loans	136,030			130,640			128,038			124,517			119,947			4		13
Deposits	147,238			146,407			141,409			146,758			157,295			1		(6	)
Equity	9,000			9,000			9,000			9,000			9,000			—		—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	154,345		$	149,147		$	146,388		$	142,966		$	138,178		3		12
Loans	132,634			127,802			125,445			122,173			118,310			4		12
Core loans	132,634			127,802			125,445			122,173			118,310			4		12
Deposits	144,199			142,069			144,496			150,786			158,810			1		(9	)
Equity	9,000			9,000			9,000			9,000			9,000			—		—

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	1		$	4		$	5		$	2		$	3		(75	)	(67	)
Nonaccrual loans	359			375			337			400			379			(4	)	(5	)
Allowance for credit losses:
Allowance for loan losses	301			290			285			285			289			4		4
Allowance for lending-related commitments	13			10			10			10			4			30		225
Total allowance for credit losses	314			300			295			295			293			5		7
Net charge-off/(recovery) rate	—		%	0.01		%	0.02		%	0.01		%	0.01		%
Allowance for loan losses to period-end loans	0.22			0.22			0.22			0.23			0.24
Allowance for loan losses to nonaccrual loans	84			77			85			71			76
Nonaccrual loans to period-end loans	0.26			0.29			0.26			0.32			0.32

Page 21



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


															Mar 31, 2018
															Change
	Mar 31,			Dec 31,		Sep 30,			Jun 30,			Mar 31,			Dec 31,		Mar 31,
CLIENT ASSETS	2018			2017		2017			2017			2017			2017		2017
Assets by asset class
Liquidity	$	432		$	459	$	441		$	434		$	444		(6	)%	(3	)%
Fixed income	467			474		461			440			432			(1	)	8
Equity	432			428		405			390			378			1		14
Multi-asset and alternatives	685			673		638			612			587			2		17
TOTAL ASSETS UNDER MANAGEMENT	2,016			2,034		1,945			1,876			1,841			(1	)	10
Custody/brokerage/administration/deposits	772			755		733			722			707			2		9
TOTAL CLIENT ASSETS	$	2,788		$	2,789	$	2,678		$	2,598		$	2,548		—		9

Memo:
Alternatives client assets (a)	$	169		$	166	$	161		$	159		$	157		2		8

Assets by client segment
Private Banking	$	537		$	526	$	507		$	488		$	468		2		15
Institutional	937			968		921			889			889			(3	)	5
Retail	542			540		517			499			484			—		12
TOTAL ASSETS UNDER MANAGEMENT	$	2,016		$	2,034	$	1,945		$	1,876		$	1,841		(1	)	10

Private Banking	$	1,285		$	1,256	$	1,217		$	1,188		$	1,154		2		11
Institutional	958			990		941			909			908			(3	)	6
Retail	545			543		520			501			486			—		12
TOTAL CLIENT ASSETS	$	2,788		$	2,789	$	2,678		$	2,598		$	2,548		—		9

Assets under management rollforward
Beginning balance	$	2,034		$	1,945	$	1,876		$	1,841		$	1,771
Net asset flows:
Liquidity	(21		)	10		5			(7		)	1
Fixed income	(5		)	12		17			2			5
Equity	5			1		(5		)	(3		)	(4		)
Multi-asset and alternatives	16			17		9			10			7
Market/performance/other impacts	(13		)	49		43			33			61
Ending balance	$	2,016		$	2,034	$	1,945		$	1,876		$	1,841

Client assets rollforward
Beginning balance	$	2,789		$	2,678	$	2,598		$	2,548		$	2,453
Net asset flows	14			56		25			2			10
Market/performance/other impacts	(15		)	55		55			48			85
Ending balance	$	2,788		$	2,789	$	2,678		$	2,598		$	2,548


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

Page 22



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

	QUARTERLY TRENDS
																1Q18 Change
	1Q18			4Q17			3Q17			2Q17			1Q17			4Q17		1Q17
INCOME STATEMENT
REVENUE
Principal transactions	$	(144	)	$	123		$	(2	)	$	148		$	15		NM		NM
Securities gains/(losses)	(245		)	(29		)	—			(34		)	(3		)	NM		NM
All other income (a)	204			28			111			667			61			NM		234
Noninterest revenue	(185		)	122			109			781			73			NM		NM
Net interest income	(47		)	53			77			23			(98		)	NM		52
TOTAL NET REVENUE (b)	(232		)	175			186			804			(25		)	NM		NM

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

NONINTEREST EXPENSE (c)	87			146			74			183			98			(40	)	(11	)
Income/(loss) before income tax expense/(benefit)	(315		)	29			112			621			(123		)	NM		(156	)
Income tax expense/(benefit) (d)	68			2,355			34			51			(158		)	(97	)	NM
NET INCOME/(LOSS)	$	(383	)	$	(2,326	)	$	78		$	570		$	35		84		NM

MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”)	(38		)	222			265			86			(7		)	NM		(443	)
Other Corporate	(194		)	(47		)	(79		)	718			(18		)	(313	)	NM
TOTAL NET REVENUE	$	(232	)	$	175		$	186		$	804		$	(25	)	NM		NM

NET INCOME/(LOSS)
Treasury and CIO	(187		)	66			75			(14		)	(67		)	NM		(179	)
Other Corporate	(196		)	(2,392		)	3			584			102			92		NM
TOTAL NET INCOME/(LOSS)	$	(383	)	$	(2,326	)	$	78		$	570		$	35		84		NM

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	779,962		$	781,478		$	804,573		$	817,754		$	822,819		—		(5	)
Loans	1,724			1,653			1,614			1,696			1,483			4		16
Core loans (e)	1,689			1,653			1,614			1,696			1,480			2		14

Headcount (f)	35,368			34,601			34,012			32,843			32,680			2		8

SUPPLEMENTAL INFORMATION
TREASURY and CIO
Securities gains	$	(245	)	$	(29	)	$	—		$	(34	)	$	(15	)	NM		NM
Available-for-sale ("AFS") investment securities (average) (g)	204,323			205,252			212,633			225,053			234,841			—		(13	)
Held-to-maturity ("HTM") investment securities (average) (g)	34,020			47,115			47,034			48,232			49,362			(28	)	(31	)
Investment securities portfolio (average)	$	238,343		$	252,367		$	259,667		$	273,285		$	284,203		(6	)	(16	)
AFS investment securities (period-end) (g)	207,703			200,247			214,257			213,291			230,617			4		(10	)
HTM investment securities (period-end) (g)	29,042			47,733			47,079			47,761			48,913			(39	)	(41	)
Investment securities portfolio (period-end)	$	236,745		$	247,980		$	261,336		$	261,052		$	279,530		(5	)	(15	)


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


(b)	Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investments of $98 million, $224 million, $216 million, $237 million, and $228 million for the three months ended March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, respectively.


(c)	Included legal expense/(benefit) of $(42) million, $(233) million, $(148) million, $16 million and $(228) million for the three months ended March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, respectively.


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


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


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


(g)	In accordance with the hedge accounting guidance adopted, the Firm elected to transfer certain securities from HTM to AFS. Refer to page 29 for additional information.

Page 23



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
											Mar 31, 2018
											Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Dec 31,		Mar 31,
	2018		2017		2017		2017		2017		2017		2017
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained, excluding PCI loans	$	343,738	$	341,977	$	337,592	$	332,051	$	326,198	1	%	5	%
Loans - PCI	29,505		30,576		31,821		33,064		34,385		(4	)	(14	)
Total loans retained	373,243		372,553		369,413		365,115		360,583		—		4
Loans held-for-sale	152		128		188		256		6,472		19		(98	)
Total consumer, excluding credit card loans	373,395		372,681		369,601		365,371		367,055		—		2

Credit card loans
Loans retained	140,348		149,387		141,200		140,035		134,917		(6	)	4
Loans held-for-sale	66		124		113		106		99		(47	)	(33	)
Total credit card loans	140,414		149,511		141,313		140,141		135,016		(6	)	4
Total consumer loans	513,809		522,192		510,914		505,512		502,071		(2	)	2

Wholesale loans (b)
Loans retained	412,020		402,898		398,569		394,426		386,370		2		7
Loans held-for-sale and loans at fair value	8,595		5,607		4,278		8,829		7,533		53		14
Total wholesale loans	420,615		408,505		402,847		403,255		393,903		3		7

Total loans	934,424		930,697		913,761		908,767		895,974		—		4
Derivative receivables	56,914		56,523		58,260		56,506		56,063		1		2
Receivables from customers and other (c)	27,996		26,272		19,350		19,531		21,473		7		30
Total credit-related assets	1,019,334		1,013,492		991,371		984,804		973,510		1		5

Lending-related commitments
Consumer, excluding credit card (d)	49,516		48,553		52,796		53,872		51,806		2		(4	)
Credit card	588,232		572,831		574,641		576,264		577,096		3		2
Wholesale	384,275		370,098		372,380		366,498		364,520		4		5
Total lending-related commitments	1,022,023		991,482		999,817		996,634		993,422		3		3

Total credit exposure	$	2,041,357	$	2,004,974	$	1,991,188	$	1,981,438	$	1,966,932	2		4

Memo: Total by category
Consumer exposure (e)	$	1,151,698	$	1,143,709	$	1,138,483	$	1,135,784	$	1,131,101	1		2
Wholesale exposures (f)	889,659		861,265		852,705		845,654		835,831		3		6
Total credit exposure	$	2,041,357	$	2,004,974	$	1,991,188	$	1,981,438	$	1,966,932	2		4

Note 1: In the first quarter of 2017, the Firm transferred the student loan portfolio to held-for-sale. Net charge-offs related to the portfolio predominantly reflected a write-down to the estimated fair value of the portfolio at the time of the transfer. This transfer impacted certain loan and credit-related metrics disclosed on pages 12-13 and 24-27.

Note 2: The Firm provides several non-GAAP financial measures which exclude the impact of PCI loans. For further discussion of these measures, see page 28.


(a)	Includes loans reported in CCB, prime mortgage and home equity loans reported in AWM, and prime mortgage loans reported in Corporate.


(b)	Includes loans reported in CIB, CB and AWM business segments and Corporate.


(c)	Predominantly includes receivables from customers, which represent held-for-investment margin loans to prime and retail brokerage customers; these are classified in accrued interest and accounts receivable on the Consolidated balance sheets.


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


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


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

Page 24



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

																Mar 31, 2018
																Change
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,		Mar 31,
	2018			2017			2017			2017			2017			2017		2017
NONPERFORMING ASSETS (a)
Consumer nonaccrual loans (b)(c)	$	4,260		$	4,209		$	4,161		$	4,226		$	4,549		1		(6	)

Wholesale nonaccrual loans
Loans retained	1,594			1,734			1,470			1,634			1,571			(8	)	1
Loans held-for-sale and loans at fair value	29			—			2			31			109			NM		(73	)
Total wholesale nonaccrual loans	1,623			1,734			1,472			1,665			1,680			(6	)	(3	)

Total nonaccrual loans	5,883			5,943			5,633			5,891			6,229			(1	)	(6	)

Derivative receivables	132			130			164			170			179			2		(26	)
Assets acquired in loan satisfactions	349			353			357			371			418			(1	)	(17	)
Total nonperforming assets	6,364			6,426			6,154			6,432			6,826			(1	)	(7	)
Wholesale lending-related commitments (d)	746			731			764			750			882			2		(15	)
Total nonperforming exposure	$	7,110		$	7,157		$	6,918		$	7,182		$	7,708		(1	)	(8	)

NONACCRUAL LOAN-RELATED RATIOS
Total nonaccrual loans to total loans	0.63		%	0.64		%	0.62		%	0.65		%	0.70		%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans	1.14			1.13			1.13			1.16			1.24
Total wholesale nonaccrual loans to total
wholesale loans	0.39			0.42			0.37			0.41			0.43

(a)

At March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017, and March 31, 2017, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $4.0 billion, $4.3 billion, $4.0 billion, $4.1 billion and $4.5 billion, respectively, that are 90 or more days past due; and (2) real estate owned (“REO”) insured by U.S. government agencies of $94 million, $95 million, $99 million, $105 million and $121 million, respectively. Student loans insured by U.S. government agencies under FFELP and 90 or more days past due were also excluded from nonperforming assets prior to the sale of the student loan portfolio in the second quarter of 2017. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”). Under this guidance, non-modified credit card loans are charged off by the end of the month in which the account becomes 180 days past due, while modified credit card loans are charged off when the account becomes 120 days past due. Moreover, all credit card loans must be charged off within 60 days of receiving notification about certain specified events (e.g., bankruptcy of the borrower).


(b)	Included nonaccrual loans held-for-sale of $34 million, $-, $3 million, $33 million and $156 million at March 31, 2018, December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, respectively.


(c)	Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as they are all performing.


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

Page 25



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

	QUARTERLY TRENDS
																		1Q18 Change
	1Q18			4Q17			3Q17				2Q17			1Q17				4Q17		1Q17
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	13,604		$	13,539		$	13,363			$	13,413		$	13,776			—	%	(1	)%
Net charge-offs:
Gross charge-offs	1,640			1,535			1,550				1,468			1,959				7		(16	)
Gross recoveries	(305		)	(271		)	(285		)		(264		)	(305		)		(13	)	—
Net charge-offs	1,335			1,264			1,265			(c)	1,204			1,654				6		(19	)
Write-offs of PCI loans (a)	20			20			20				22			24				—		(17	)
Provision for loan losses	1,127			1,349			1,460				1,175			1,316				(16	)	(14	)
Other	(1		)	—			1				1			(1		)		NM		—
Ending balance	$	13,375		$	13,604		$	13,539			$	13,363		$	13,413			(2	)	—

ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	1,068		$	1,109		$	1,117			$	1,077		$	1,078			(4	)	(1	)
Provision for lending-related commitments	38			(41		)	(8		)		40			(1		)		NM		NM
Other	1			—			—				—			—				NM		NM
Ending balance	$	1,107		$	1,068		$	1,109			$	1,117		$	1,077			4		3

Total allowance for credit losses	$	14,482		$	14,672		$	14,648			$	14,480		$	14,490			(1	)	—

NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans (b)	0.16		%	0.15		%	0.22		%		0.12		%	0.76		%	(d)
Credit card retained loans	3.32			2.97			2.87				3.01			2.94
Total consumer retained loans	1.04			0.94			0.95				0.92			1.35			(d)
Wholesale retained loans	0.02			0.05			0.04				0.06			(0.03		)
Total retained loans	0.59			0.55			0.56			(c)	0.54			0.76			(d)
Consumer retained loans, excluding credit card and
PCI loans	0.17			0.17			0.24				0.13			0.84			(d)
Consumer retained loans, excluding PCI loans	1.10			1.00			1.02				0.99			1.46			(d)
Total retained, excluding PCI loans	0.61			0.57			0.58			(c)	0.56			0.79			(d)

Memo: Average retained loans
Consumer retained, excluding credit card loans	$	372,739		$	371,068		$	367,411			$	362,551		$	366,098			—		2
Credit card retained loans	142,830			143,388			141,061				138,032			137,112				—		4
Total average retained consumer loans	515,569			514,456			508,472				500,583			503,210				—		2
Wholesale retained loans	404,859			398,795			395,420				392,257			382,367				2		6
Total average retained loans	$	920,428		$	913,251		$	903,892			$	892,840		$	885,577			1		4

Consumer retained, excluding credit card and
PCI loans	$	342,690		$	339,860		$	334,987			$	328,816		$	331,057			1		4
Consumer retained, excluding PCI loans	485,520			483,248			476,048				466,848			468,169				—		4
Total retained, excluding PCI loans	890,376			882,040			871,465				859,102			850,533				1		5

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


(a)	Write-offs of PCI loans are recorded against the allowance for loan losses when actual losses for a pool exceed estimated losses that were recorded as purchase accounting adjustments at the time of acquisition. A write-off of a PCI loan is recognized when the underlying loan is removed from a pool (e.g., upon liquidation).


(b)	The net charge-off rates exclude the write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans.


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

(d)

During the first quarter of 2017, the Firm transferred the student loan portfolio to held-for-sale, resulting in a write-down of the portfolio to the estimated fair value at the time of the transfer. For the three months ended March 31, 2017, excluding net charge-offs of $467 million related to the transfer, the net charge-off rate for Consumer retained, excluding credit card loans, would have been 0.24%; Total consumer retained loans would have been 0.98%; Total retained loans would have been 0.54%; Consumer retained, excluding credit card loans and PCI loans would have been 0.27%; Total consumer retained loans excluding PCI loans would have been 1.05%; and Total retained, excluding PCI loans would have been 0.57%.

Page 26



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

																Mar 31, 2018
																Change
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Dec 31,		Mar 31,
	2018			2017			2017			2017			2017			2017		2017
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)	$	266		$	246		$	271		$	296		$	300		8	%	(11	)%
Formula-based	2,089			2,108			2,266			2,239			2,339			(1	)	(11	)
PCI	2,205			2,225			2,245			2,265			2,287			(1	)	(4	)
Total consumer, excluding credit card	4,560			4,579			4,782			4,800			4,926			—		(7	)
Credit card
Asset-specific (b)	393			383			376			370			373			3		5
Formula-based	4,491			4,501			4,308			4,014			3,661			—		23
Total credit card	4,884			4,884			4,684			4,384			4,034			—		21
Total consumer	9,444			9,463			9,466			9,184			8,960			—		5
Wholesale
Asset-specific (a)	474			461			363			345			249			3		90
Formula-based	3,457			3,680			3,710			3,834			4,204			(6	)	(18	)
Total wholesale	3,931			4,141			4,073			4,179			4,453			(5	)	(12	)
Total allowance for loan losses	13,375			13,604			13,539			13,363			13,413			(2	)	—
Allowance for lending-related commitments	1,107			1,068			1,109			1,117			1,077			4		3
Total allowance for credit losses	$	14,482		$	14,672		$	14,648		$	14,480		$	14,490		(1	)	—

CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	1.22		%	1.23		%	1.29		%	1.31		%	1.37		%
Credit card allowance to total credit card retained loans	3.48			3.27			3.32			3.13			2.99
Wholesale allowance to total wholesale retained loans	0.95			1.03			1.02			1.06			1.15
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (c)	1.04			1.12			1.12			1.17			1.27
Total allowance to total retained loans	1.44			1.47			1.49			1.49			1.52
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	108			109			115			114			112
Total allowance, excluding credit card allowance, to retained
nonaccrual loans, excluding credit card nonaccrual loans (d)	146			147			157			154			157
Wholesale allowance to wholesale retained nonaccrual loans	247			239			277			256			283
Total allowance to total retained nonaccrual loans	230			229			241			229			225

CREDIT RATIOS, excluding PCI loans
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	0.69			0.69			0.75			0.76			0.81
Total allowance to total retained loans	1.25			1.27			1.29			1.28			1.31
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	56			56			61			60			60
Allowance, excluding credit card allowance, to retained non-
accrual loans, excluding credit card nonaccrual loans (d)	108			109			117			115			119
Total allowance to total retained nonaccrual loans	192			191			201			190			187


(a)	Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a troubled debt restructuring (“TDR”).


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


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


(d)	For information on the Firm’s nonaccrual policy for credit card loans, see footnote (a) on page 25.

Page 27

JPMORGAN CHASE & CO.

NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES

Non-GAAP Financial Measures

(a)

In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. The Firm’s definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm and each of the reportable business segments on a FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These financial measures allow management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business.

(b)

Tangible common equity (“TCE”), Return on tangible common equity (“ROTCE”), and Tangible book value per share (“TBVPS”) are each non-GAAP financial measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. TCE, ROTCE, and TBVPS are meaningful to the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.

(c)

The ratios of the allowance for loan losses to period-end loans retained, the allowance for loan losses to nonaccrual loans retained, and nonaccrual loans to total period-end loans excluding credit card and PCI loans, exclude the following: loans accounted for at fair value and loans held-for-sale; PCI loans; and the allowance for loan losses related to PCI loans. Additionally, net charge-offs and net charge-off rates exclude the impact of PCI loans. The ratio of the wholesale allowance for loan losses to period-end loans retained, excluding trade finance and conduits, is calculated excluding loans accounted for at fair value, loans held-for-sale, CIB’s trade finance loans and consolidated Firm-administered multi-seller conduits, as well as their related allowances, to provide a more meaningful assessment of the wholesale allowance coverage ratio.


(d)	CIB calculates the ratio of the allowance for loan losses to end-of-period loans excluding the impact of consolidated Firm-administered multi-seller conduits and trade finance loans, to provide a more meaningful assessment of CIB’s allowance coverage ratio.

Key Performance Measures


(a)	Core loans represent loans considered central to the Firm’s ongoing businesses; core loans exclude loans classified as trading assets, runoff portfolios, discontinued portfolios and portfolios the Firm has an intent to exit.

Page 28

JPMORGAN CHASE & CO.

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

Revenue recognition - revenue from contracts with customers

The adoption of the revenue recognition guidance requires gross presentation of certain costs that were previously offset against revenue. Adoption of the guidance did not result in any material changes in the timing of revenue recognition. This guidance was adopted retrospectively, and accordingly, prior period amounts were revised, which resulted in an increase in both noninterest revenue and noninterest expense for the Firm of $304 million, $252 million, $261 million and $264 million for the three months ended December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, respectively.

Recognition and measurement of financial assets and financial liabilities

The adoption of the recognition and measurement guidance requires that certain equity instruments be measured at fair value, with changes in fair value recognized in earnings. The guidance also provides an alternative to measure 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 (the “measurement alternative”). The Firm elected the measurement alternative for its qualifying equity securities and the adoption of the guidance resulted in a $505 million gain in CIB all other income in the first quarter of 2018.

Premium amortization on purchased callable debt securities

The adoption of the guidance requires that premiums be amortized to the earliest call date on certain debt securities. The adoption of this guidance resulted in a cumulative-effect adjustment to retained earnings and AOCI.

Hedge accounting

The adoption of the hedge accounting guidance is expected to reduce earnings volatility by better aligning the accounting with the economics of the associated risk management activities. In accordance with the guidance, the Firm also elected to transfer certain U.S. government agency mortgage-backed securities (“MBS”), commercial MBS, and obligations of U.S. states and municipalities from HTM to AFS. The adoption of this guidance resulted in a cumulative-effect adjustment to retained earnings and AOCI.

Treatment of restricted cash on the statement of cash flows

As a result of the adoption of the restricted cash guidance, the Firm elected to reclassify restricted cash from other assets to cash and due from banks or deposits with banks on the Consolidated balance sheets. This guidance was applied retrospectively, and accordingly prior period amounts have been revised.

Presentation of net periodic pension cost and net periodic postretirement benefit cost

The adoption of the pension cost guidance requires the service cost component of net periodic pension cost to be reported separately in the Consolidated statements of income from the other components of pension cost. This change was adopted retrospectively, and accordingly, prior period amounts were revised, which resulted in an increase in compensation expense and a reduction in other expense of $42 million, $51 million, $51 million and $55 million for the three months ended December 31, 2017, September 30, 2017, June 30, 2017 and March 31, 2017, respectively.

Reclassification of Certain Tax Effects from AOCI

The adoption of the guidance permitted the Firm to reclassify the income tax effects of the TCJA on items within AOCI to retained earnings so that the tax effects of items within AOCI

reflect the appropriate tax rate. The adoption of this guidance resulted in a cumulative-effect adjustment to retained earnings and AOCI.

For additional information refer to page 30.

Page 29

JPMORGAN CHASE & CO.

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

The following tables present the prior period impact on the Consolidated statements of income and the Consolidated balance sheets from the retrospective adoption of the new accounting standards in the first quarter of 2018:



Selected Consolidated statements of income data
	Reported		Revisions by business segment							Total			Revised
Year ended December 31, (in millions)	2017		CIB^(a)		AWM^(a)		Corp^(b)			Revisions^(a)(b)			2017
Revenue
Investment banking fees	$	7,248	$	164	$	—	$	—		$	164		$	7,412
Asset management, administration and commissions	15,377		—		910		—			910			16,287
Other income	3,639		—		7		—			7			3,646
Total net revenue	99,624		164		917		—			1,081			100,705

Noninterest expense
Compensation expense	31,009		—		—		199			199			31,208
Technology, communication and equipment expense	7,706		9		—		—			9			7,715
Professional and outside services	6,840		133		917		—			1,050			7,890
Other expense	6,256		22		—		(199		)	(177		)	6,079
Total noninterest expense	$	58,434	$	164	$	917	$	—		$	1,081		$	59,515


(a)	Revenue recognition - revenue from contracts with customers.


(b)	Presentation of net periodic pension cost and net periodic postretirement benefit cost.



Selected Consolidated balance sheets data
	Reported		Revisions^(a)			Revised
December 31, (in millions)	2017					2017
Assets
Cash and due from banks	$	25,827	$	71		$	25,898
Deposits with banks	404,294		1,112			405,406
Other assets	114,770		(1,183		)	113,587
Total assets	$	2,533,600	$	—		$	2,533,600


(a)	Treatment of restricted cash on the Consolidated statements of cash flows.

The following table presents the adjustment to retained earnings and AOCI as a result of the new accounting standards in the first quarter of 2018:



Increase/(decrease) (in millions)	Retained earnings			AOCI
Premium amortization on purchased callable debt securities	$	(505	)	$	261
Hedge accounting	34			115
Reclassification of certain tax effects from AOCI	288			(288		)
Total	$	(183	)	$	88

Page 30

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