JPMORGAN CHASE & CO - FORM 8-K - EX-99.2 - EARNINGS RELEASE FINANCIAL SUPPLEMENT - 2Q18

Attached files

file	filename
EX-12.2 - RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS - 2Q18 - JPMORGAN CHASE & CO	a2q18erfexhibit122.htm
8-K - 8-K - JPMORGAN CHASE & CO	a2q18erf8kcover.htm
EX-99.1 - EARNINGS RELEASE - 2Q18 - JPMORGAN CHASE & CO	a2q18erfexhibit991narrative.htm
EX-12.1 - RATIO OF EARNINGS TO FIXED CHARGES - 2Q18 - JPMORGAN CHASE & CO	a2q18erfexhibit121.htm

EARNINGS RELEASE FINANCIAL SUPPLEMENT

SECOND QUARTER 2018



JPMORGAN CHASE & CO.
TABLE OF CONTENTS

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

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

Credit-Related Information							24–27

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


Glossary of Terms and Acronyms (a)

(a)

Refer to the Glossary of Terms and Acronyms on pages 283–289 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2017 (the “2017 Annual Report”) and the Glossary of Terms and Acronyms and Line of Business Metrics on Pages 156–160 and pages 161–163, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018.



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

	QUARTERLY TRENDS																						SIX MONTHS ENDED JUNE 30,
																			2Q18 Change												2018 Change
SELECTED INCOME STATEMENT DATA	2Q18				1Q18			4Q17			3Q17				2Q17				1Q18		2Q17		2018				2017				2017
Reported Basis
Total net revenue	$	27,753			$	27,907		$	24,457		$	25,578			$	25,731			(1	)%	8	%	$	55,660			$	50,670			10	%
Total noninterest expense	15,971				16,080			14,895			14,570				14,767				(1	)	8		32,051				30,050				7
Pre-provision profit	11,782				11,827			9,562			11,008				10,964				—		7		23,609				20,620				14
Provision for credit losses	1,210				1,165			1,308			1,452				1,215				4		—		2,375				2,530				(6	)
NET INCOME	8,316				8,712			4,232			6,732				7,029				(5	)	18		17,028				13,477				26

Managed Basis (a)
Total net revenue	28,388				28,520			25,754			26,452				26,666				—		6		56,908				52,516				8
Total noninterest expense	15,971				16,080			14,895			14,570				14,767				(1	)	8		32,051				30,050				7
Pre-provision profit	12,417				12,440			10,859			11,882				11,899				—		4		24,857				22,466				11
Provision for credit losses	1,210				1,165			1,308			1,452				1,215				4		—		2,375				2,530				(6	)
NET INCOME	8,316				8,712			4,232			6,732				7,029				(5	)	18		17,028				13,477				26

EARNINGS PER SHARE DATA
Net income: Basic	$	2.31			$	2.38		$	1.08		$	1.77			$	1.83			(3	)	26		$	4.69			$	3.49			34
Diluted	2.29				2.37			1.07			1.76				1.82				(3	)	26		4.66				3.47				34
Average shares: Basic	3,415.2				3,458.3			3,489.7			3,534.7				3,574.1				(1	)	(4	)	3,436.7				3,587.9				(4	)
Diluted	3,434.7				3,479.5			3,512.2			3,559.6				3,599.0				(1	)	(5	)	3,457.1				3,614.7				(4	)

MARKET AND PER COMMON SHARE DATA
Market capitalization	$	350,204			$	374,423		$	366,301		$	331,393			$	321,633			(6	)	9		$	350,204			$	321,633			9
Common shares at period-end	3,360.9				3,404.8			3,425.3			3,469.7				3,519.0				(1	)	(4	)	3,360.9				3,519.0				(4	)
Closing share price (b)	$	104.20			$	109.97		$	106.94		$	95.51			$	91.40			(5	)	14		$	104.20			$	91.40			14
Book value per share	68.85				67.59			67.04			66.95				66.05				2		4		68.85				66.05				4
Tangible book value per share (“TBVPS”) (c)	55.14				54.05			53.56			54.03				53.29				2		3		55.14				53.29				3
Cash dividends declared per share	0.56				0.56			0.56			0.56				0.50				—		12		1.12				1.00				12

FINANCIAL RATIOS (d)
Return on common equity (“ROE”)	14		%		15		%	7		%	11		%		12		%						14		%		11		%
Return on tangible common equity (“ROTCE”) (c)	17				19			8			13				14								18				14
Return on assets	1.28				1.37			0.66			1.04				1.10								1.32				1.07

CAPITAL RATIOS
Common equity Tier 1 (“CET1”) capital ratio (e)	11.9		%	(g)	11.8		%	12.2		%	12.5		%	(h)	12.5		%	(h)					11.9		%	(g)	12.5		%	(h)
Tier 1 capital ratio (e)	13.6			(g)	13.5			13.9			14.1			(h)	14.2			(h)					13.6			(g)	14.2			(h)
Total capital ratio (e)	15.4			(g)	15.3			15.9			16.1				16.0								15.4			(g)	16.0
Tier 1 leverage ratio (e)	8.2			(g)	8.2			8.3			8.4				8.5								8.2			(g)	8.5
Supplementary leverage ratio (“SLR”) (f)	6.5		%	(g)	6.5			6.5			6.6				6.7								6.5			(g)	6.7

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 28 for further discussion.


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


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


(c)	TBVPS and ROTCE are non-GAAP financial measures. TBVPS represents tangible common equity (“TCE”) divided by common shares at period-end. ROTCE measures the Firm’s annualized earnings as a percentage of average TCE. TCE is also a non-GAAP financial measure; for a reconciliation of common stockholders’ equity to TCE, see page 9. For further discussion of these measures, see 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. Ratios prior to March 31, 2018 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																			SIX MONTHS ENDED JUNE 30,
																2Q18 Change										2018 Change
	2Q18			1Q18			4Q17			3Q17			2Q17			1Q18		2Q17		2018			2017			2017
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	2,590,050		$	2,609,785		$	2,533,600		$	2,563,074		$	2,563,174		(1	)%	1	%	$	2,590,050		$	2,563,174		1	%
Loans:
Consumer, excluding credit card loans	374,697			373,395			372,681			369,601			365,371			—		3		374,697			365,371			3
Credit card loans	145,255			140,414			149,511			141,313			140,141			3		4		145,255			140,141			4
Wholesale loans	428,462			420,615			408,505			402,847			403,255			2		6		428,462			403,255			6
Total Loans	948,414			934,424			930,697			913,761			908,767			1		4		948,414			908,767			4
Core loans (a)	889,433			870,536			863,683			843,432			834,935			2		7		889,433			834,935			7
Core loans (average) (a)	877,640			861,089			850,166			837,522			824,583			2		6		869,410			815,034			7

Deposits:
U.S. offices:
Noninterest-bearing	385,741			397,856			393,645			390,863			394,921			(3	)	(2	)	385,741			394,921			(2	)
Interest-bearing	819,454			825,223			793,618			783,233			781,709			(1	)	5		819,454			781,709			5
Non-U.S. offices:
Noninterest-bearing	16,602			17,019			15,576			17,907			17,152			(2	)	(3	)	16,602			17,152			(3	)
Interest-bearing	230,325			246,863			241,143			247,024			245,691			(7	)	(6	)	230,325			245,691			(6	)
Total deposits	1,452,122			1,486,961			1,443,982			1,439,027			1,439,473			(2	)	1		1,452,122			1,439,473			1

Long-term debt	273,114			274,449			284,080			288,582			292,973			—		(7	)	273,114			292,973			(7	)
Common stockholders’ equity	231,390			230,133			229,625			232,314			232,415			1		—		231,390			232,415			—
Total stockholders’ equity	257,458			256,201			255,693			258,382			258,483			—		—		257,458			258,483			—

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

Headcount	252,942			253,707			252,539			251,503			249,257			—		1		252,942			249,257			1

95% CONFIDENCE LEVEL - TOTAL VaR
Average VaR	$	35		$	43		$	34		$	30		$	27		(19	)	30

LINE OF BUSINESS NET REVENUE (b)
Consumer & Community Banking	$	12,497		$	12,597		$	12,070		$	12,033		$	11,412		(1	)	10		$	25,094		$	22,382		12
Corporate & Investment Bank	9,923			10,483			7,518			8,615			8,925			(5	)	11		20,406			18,524			10
Commercial Banking	2,316			2,166			2,353			2,146			2,088			7		11		4,482			4,106			9
Asset & Wealth Management	3,572			3,506			3,638			3,472			3,437			2		4		7,078			6,725			5
Corporate	80			(232		)	175			186			804			NM		(90	)	(152		)	779			NM
TOTAL NET REVENUE	$	28,388		$	28,520		$	25,754		$	26,452		$	26,666		—		6		$	56,908		$	52,516		8

LINE OF BUSINESS NET INCOME
Consumer & Community Banking	$	3,412		$	3,326		$	2,631		$	2,553		$	2,223		3		53		$	6,738		$	4,211		60
Corporate & Investment Bank	3,198			3,974			2,316			2,546			2,710			(20	)	18		7,172			5,951			21
Commercial Banking	1,087			1,025			957			881			902			6		21		2,112			1,701			24
Asset & Wealth Management	755			770			654			674			624			(2	)	21		1,525			1,009			51
Corporate	(136		)	(383		)	(2,326		)	78			570			64		NM		(519		)	605			NM
NET INCOME	$	8,316		$	8,712		$	4,232		$	6,732		$	7,029		(5	)	18		$	17,028		$	13,477		26


(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																			SIX MONTHS ENDED JUNE 30,
																2Q18 Change										2018 Change
REVENUE	2Q18			1Q18			4Q17			3Q17			2Q17			1Q18		2Q17		2018			2017			2017
Investment banking fees	$	2,168		$	1,736		$	1,818		$	1,868		$	1,846		25	%	17	%	$	3,904		$	3,726		5	%
Principal transactions	3,782			3,952			1,907			2,721			3,137			(4	)	21		7,734			6,719			15
Lending- and deposit-related fees	1,495			1,477			1,506			1,497			1,482			1		1		2,972			2,930			1
Asset management, administration and commissions	4,304			4,309			4,291			4,072			4,047			—		6		8,613			7,924			9
Securities gains/(losses)	(80		)	(245		)	(28		)	(1		)	(34		)	67		(135	)	(325		)	(37		)	NM
Mortgage fees and related income	324			465			377			429			404			(30	)	(20	)	789			810			(3	)
Card income	1,020			1,275			1,110			1,242			1,167			(20	)	(13	)	2,295			2,081			10
Other income	1,255			1,626			449			952			1,474			(23	)	(15	)	2,881			2,245			28
Noninterest revenue	14,268			14,595			11,430			12,780			13,523			(2	)	6		28,863			26,398			9
Interest income	18,869			17,695			16,993			16,687			15,650			7		21		36,564			30,692			19
Interest expense	5,384			4,383			3,966			3,889			3,442			23		56		9,767			6,420			52
Net interest income	13,485			13,312			13,027			12,798			12,208			1		10		26,797			24,272			10
TOTAL NET REVENUE	27,753			27,907			24,457			25,578			25,731			(1	)	8		55,660			50,670			10

Provision for credit losses	1,210			1,165			1,308			1,452			1,215			4		—		2,375			2,530			(6	)

NONINTEREST EXPENSE
Compensation expense	8,338			8,862			7,498			7,697			7,757			(6	)	7		17,200			16,013			7
Occupancy expense	981			888			920			930			912			10		8		1,869			1,873			—
Technology, communications and equipment expense	2,168			2,054			2,038			1,972			1,871			6		16		4,222			3,705			14
Professional and outside services	2,126			2,121			2,244			1,955			1,899			—		12		4,247			3,691			15
Marketing	798			800			721			710			756			—		6		1,598			1,469			9
Other expense (a)	1,560			1,355			1,474			1,306			1,572			15		(1	)	2,915			3,299			(12	)
TOTAL NONINTEREST EXPENSE	15,971			16,080			14,895			14,570			14,767			(1	)	8		32,051			30,050			7
Income before income tax expense	10,572			10,662			8,254			9,556			9,749			(1	)	8		21,234			18,090			17
Income tax expense (b)	2,256			1,950			4,022			2,824			2,720			16		(17	)	4,206			4,613			(9	)
NET INCOME	$	8,316		$	8,712		$	4,232		$	6,732		$	7,029		(5	)	18		$	17,028		$	13,477		26

NET INCOME PER COMMON SHARE DATA
Basic earnings per share	$	2.31		$	2.38		$	1.08		$	1.77		$	1.83		(3	)	26		$	4.69		$	3.49		34
Diluted earnings per share	2.29			2.37			1.07			1.76			1.82			(3	)	26		4.66			3.47			34

FINANCIAL RATIOS
Return on common equity (c)	14		%	15		%	7		%	11		%	12		%					14		%	11		%
Return on tangible common equity (c)(d)	17			19			8			13			14							18			14
Return on assets (c)	1.28			1.37			0.66			1.04			1.10							1.32			1.07
Effective income tax rate (b)	21.3			18.3			48.7			29.6			27.9							19.8			25.5
Overhead ratio	58			58			61			57			57							58			59


(a)	Included Firmwide legal expense/(benefit) of $0 million, $70 million, $(207) million, $(107) million and $61 million for the three months ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017, and June 30, 2017, respectively; and $70 million and $279 million for the six months ended June 30, 2018 and 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.

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JPMORGAN CHASE & CO.
CONSOLIDATED BALANCE SHEETS
(in millions)
																Jun 30, 2018
																Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,		Jun 30,
	2018			2018			2017			2017			2017			2018		2017
ASSETS
Cash and due from banks	$	23,680		$	24,834		$	25,898		$	22,064		$	21,820		(5	)%	9	%
Deposits with banks	381,500			389,978			405,406			437,092			428,706			(2	)	(11	)
Federal funds sold and securities purchased under
resale agreements	226,505			247,608			198,422			185,454			218,570			(9	)	4
Securities borrowed	108,246			116,132			105,112			101,680			90,654			(7	)	19
Trading assets:
Debt and equity instruments	360,289			355,368			325,321			362,158			350,558			1		3
Derivative receivables	58,510			56,914			56,523			58,260			56,506			3		4
Investment securities	233,015			238,188			249,958			263,288			263,458			(2	)	(12	)
Loans	948,414			934,424			930,697			913,761			908,767			1		4
Less: Allowance for loan losses	13,250			13,375			13,604			13,539			13,363			(1	)	(1	)
Loans, net of allowance for loan losses	935,164			921,049			917,093			900,222			895,404			2		4
Accrued interest and accounts receivable	75,669			72,659			67,729			61,757			64,038			4		18
Premises and equipment	14,132			14,382			14,159			14,218			14,206			(2	)	(1	)
Goodwill, MSRs and other intangible assets	54,535			54,533			54,392			53,855			53,880			—		1
Other assets	118,805			118,140			113,587			103,026			105,374			1		13
TOTAL ASSETS	$	2,590,050		$	2,609,785		$	2,533,600		$	2,563,074		$	2,563,174		(1	)	1

LIABILITIES
Deposits	$	1,452,122		$	1,486,961		$	1,443,982		$	1,439,027		$	1,439,473		(2	)	1
Federal funds purchased and securities loaned or sold
under repurchase agreements	175,293			179,091			158,916			169,393			165,621			(2	)	6
Short-term borrowings	63,918			62,667			51,802			53,967			53,143			2		20
Trading liabilities:
Debt and equity instruments	107,327			99,588			85,886			89,089			91,628			8		17
Derivative payables	42,511			36,949			37,777			39,446			41,795			15		2
Accounts payable and other liabilities	196,984			192,295			189,383			196,764			189,160			2		4
Beneficial interests issued by consolidated VIEs	21,323			21,584			26,081			28,424			30,898			(1	)	(31	)
Long-term debt	273,114			274,449			284,080			288,582			292,973			—		(7	)
TOTAL LIABILITIES	2,332,592			2,353,584			2,277,907			2,304,692			2,304,691			(1	)	1

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	89,392			89,211			90,579			90,697			90,604			—		(1	)
Retained earnings	189,881			183,855			177,676			175,827			171,488			3		11
Accumulated other comprehensive income/(loss)	(1,138		)	(1,063		)	(119		)	(309		)	(392		)	(7	)	(190	)
Shares held in RSU Trust, at cost	(21		)	(21		)	(21		)	(21		)	(21		)	—		—
Treasury stock, at cost	(50,829		)	(45,954		)	(42,595		)	(37,985		)	(33,369		)	(11	)	(52	)
TOTAL STOCKHOLDERS’ EQUITY	257,458			256,201			255,693			258,382			258,483			—		—
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,590,050		$	2,609,785		$	2,533,600		$	2,563,074		$	2,563,174		(1	)	1

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JPMORGAN CHASE & CO.
CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
	QUARTERLY TRENDS																				SIX MONTHS ENDED JUNE 30,
																	2Q18 Change											2018 Change
AVERAGE BALANCES	2Q18			1Q18			4Q17			3Q17			2Q17				1Q18		2Q17		2018			2017				2017
ASSETS
Deposits with banks	$	425,942		$	423,807		$	438,740		$	456,673		$	439,142			1	%	(3	)%	$	424,880		$	431,486			(2	)%
Federal funds sold and securities purchased under
resale agreements	205,001			198,362			188,545			188,594			193,302				3		6		201,700			195,123				3
Securities borrowed	112,464			109,733			100,120			95,597			90,151				2		25		111,106			92,747				20
Trading assets - debt instruments	256,526			256,040			247,063			240,876			234,809				—		9		256,284			230,330				11
Investment securities	232,007			239,754			253,767			261,117			274,695				(3	)	(16	)	235,859			280,100				(16	)
Loans	939,675			926,548			918,806			909,580			904,969				1		4		933,148			898,473				4
All other interest-earning assets (a)	50,662			49,169			42,666			41,737			40,041				3		27		49,920			40,796				22
Total interest-earning assets	2,222,277			2,203,413			2,189,707			2,194,174			2,177,109				1		2		2,212,897			2,169,055				2
Trading assets - equity instruments	112,142			107,688			102,874			119,463			126,127				4		(11	)	109,927			120,735				(9	)
Trading assets - derivative receivables	60,978			60,492			58,890			59,839			58,250				1		5		60,737			59,816				2
All other noninterest-earning assets	217,572			214,450			210,684			195,755			197,750				1		10		216,020			196,665				10
TOTAL ASSETS	$	2,612,969		$	2,586,043		$	2,562,155		$	2,569,231		$	2,559,236			1		2		$	2,599,581		$	2,546,271			2
LIABILITIES
Interest-bearing deposits	$	1,059,357		$	1,046,521		$	1,030,660		$	1,029,534		$	1,006,008			1		5		$	1,052,975		$	996,067			6
Federal funds purchased and securities loaned or
sold under repurchase agreements	192,136			196,112			181,898			181,851			196,331				(2	)	(2	)	194,113			192,990				1
Short-term borrowings (b)	62,339			57,603			53,236			52,958			43,159				8		44		59,984			39,859				50
Trading liabilities - debt and other interest-bearing liabilities (c)	180,879			171,488			168,440			168,738			173,373				5		4		176,210			175,088				1
Beneficial interests issued by consolidated VIEs	20,906			23,561			27,295			29,832			34,083				(11	)	(39	)	22,226			36,416				(39	)
Long-term debt	275,645			279,005			283,301			294,626			295,868				(1	)	(7	)	277,315			294,056				(6	)
Total interest-bearing liabilities	1,791,262			1,774,290			1,744,830			1,757,539			1,748,822				1		2		1,782,823			1,734,476				3
Noninterest-bearing deposits	401,138			399,487			405,531			401,489			404,121				—		(1	)	400,317			404,831				(1	)
Trading liabilities - equity instruments	34,593			28,631			22,747			20,905			19,346				21		79		31,628			20,204				57
Trading liabilities - derivative payables	42,168			41,745			38,845			44,627			44,740				1		(6	)	41,958			46,547				(10	)
All other noninterest-bearing liabilities	88,839			88,207			91,987			86,742			85,939				1		3		88,526			85,186				4
TOTAL LIABILITIES	2,358,000			2,332,360			2,303,940			2,311,302			2,302,968				1		2		2,345,252			2,291,244				2
Preferred stock	26,068			26,068			26,642			26,068			26,068				—		—		26,068			26,068				—
Common stockholders’ equity	228,901			227,615			231,573			231,861			230,200				1		(1	)	228,261			228,959				—
TOTAL STOCKHOLDERS’ EQUITY	254,969			253,683			258,215			257,929			256,268				1		(1	)	254,329			255,027				—
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,612,969		$	2,586,043		$	2,562,155		$	2,569,231		$	2,559,236			1		2		$	2,599,581		$	2,546,271			2

AVERAGE RATES (d)
INTEREST-EARNING ASSETS
Deposits with banks	1.45		%	1.26		%	1.12		%	1.09		%	0.93			%					1.36		%	0.81			%
Federal funds sold and securities purchased under
resale agreements	1.58			1.49			1.37			1.31			1.10								1.54			1.09
Securities borrowed (e)	0.53			0.23			0.11			—			(0.09		)						0.38			(0.14		)
Trading assets - debt instruments	3.33			3.35			3.25			3.25			3.13								3.34			3.25
Investment securities	3.24			3.08			3.15			3.10			3.11								3.16			3.06
Loans	4.99			4.87			4.67			4.62			4.46								4.93			4.46
All other interest-earning assets (a)	6.72			5.61			5.11			4.96			4.35								6.18			3.82
Total interest-earning assets	3.43			3.29			3.14			3.07			2.95								3.36			2.92

INTEREST-BEARING LIABILITIES
Interest-bearing deposits	0.51			0.41			0.35			0.32			0.25								0.46			0.23
Federal funds purchased and securities loaned or
sold under repurchase agreements	1.58			1.20			1.05			0.98			0.79								1.39			0.71
Short-term borrowings (b)	1.67			1.47			1.21			1.12			0.89								1.58			0.85
Trading liabilities - debt and other interest-bearing liabilities (c)	2.00			1.56			1.37			1.34			1.19								1.79			1.06
Beneficial interests issued by consolidated VIEs	2.33			2.11			1.71			1.62			1.51								2.22			1.46
Long-term debt	2.91			2.55			2.41			2.37			2.29								2.73			2.25
Total interest-bearing liabilities	1.21			1.00			0.90			0.88			0.79								1.10			0.75

INTEREST RATE SPREAD	2.22		%	2.29		%	2.24		%	2.19		%	2.16			%					2.26		%	2.17			%
NET YIELD ON INTEREST-EARNING ASSETS	2.46		%	2.48		%	2.42		%	2.37		%	2.31			%					2.47		%	2.32			%


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


(b)	Includes commercial paper.


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


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


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

Page 6

JPMORGAN CHASE & CO.

RECONCILIATION FROM REPORTED TO MANAGED BASIS

(in millions, except ratios)

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

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



	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q18 Change										2018 Change
	2Q18			1Q18			4Q17			3Q17			2Q17			1Q18		2Q17		2018			2017			2017
OTHER INCOME
Other income - reported	$	1,255		$	1,626		$	449		$	952		$	1,474		(23	)%	(15	)%	$	2,881		$	2,245		28	%
Fully taxable-equivalent adjustments (a)	474			455			971			555			596			4		(20	)	929			1,178			(21	)
Other income - managed	$	1,729		$	2,081		$	1,420		$	1,507		$	2,070		(17	)	(16	)	$	3,810		$	3,423		11

TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported	$	14,268		$	14,595		$	11,430		$	12,780		$	13,523		(2	)	6		$	28,863		$	26,398		9
Fully taxable-equivalent adjustments (a)	474			455			971			555			596			4		(20	)	929			1,178			(21	)
Total noninterest revenue - managed	$	14,742		$	15,050		$	12,401		$	13,335		$	14,119		(2	)	4		$	29,792		$	27,576		8

NET INTEREST INCOME
Net interest income - reported	$	13,485		$	13,312		$	13,027		$	12,798		$	12,208		1		10		$	26,797		$	24,272		10
Fully taxable-equivalent adjustments (a)	161			158			326			319			339			2		(53	)	319			668			(52	)
Net interest income - managed	$	13,646		$	13,470		$	13,353		$	13,117		$	12,547		1		9		$	27,116		$	24,940		9

TOTAL NET REVENUE
Total net revenue - reported	$	27,753		$	27,907		$	24,457		$	25,578		$	25,731		(1	)	8		$	55,660		$	50,670		10
Fully taxable-equivalent adjustments (a)	635			613			1,297			874			935			4		(32	)	1,248			1,846			(32	)
Total net revenue - managed	$	28,388		$	28,520		$	25,754		$	26,452		$	26,666		—		6		$	56,908		$	52,516		8

PRE-PROVISION PROFIT
Pre-provision profit - reported	$	11,782		$	11,827		$	9,562		$	11,008		$	10,964		—		7		$	23,609		$	20,620		14
Fully taxable-equivalent adjustments (a)	635			613			1,297			874			935			4		(32	)	1,248			1,846			(32	)
Pre-provision profit - managed	$	12,417		$	12,440		$	10,859		$	11,882		$	11,899		—		4		$	24,857		$	22,466		11

INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported	$	10,572		$	10,662		$	8,254		$	9,556		$	9,749		(1	)	8		$	21,234		$	18,090		17
Fully taxable-equivalent adjustments (a)	635			613			1,297			874			935			4		(32	)	1,248			1,846			(32	)
Income before income tax expense - managed	$	11,207		$	11,275		$	9,551		$	10,430		$	10,684		(1	)	5		$	22,482		$	19,936		13

INCOME TAX EXPENSE
Income tax expense - reported	$	2,256		$	1,950		$	4,022		$	2,824		$	2,720		16		(17	)	$	4,206		$	4,613		(9	)
Fully taxable-equivalent adjustments (a)	635			613			1,297			874			935			4		(32	)	1,248			1,846			(32	)
Income tax expense - managed	$	2,891		$	2,563		$	5,319		$	3,698		$	3,655		13		(21	)	$	5,454		$	6,459		(16	)

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

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

Page 7



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


	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q18 Change										2018 Change
	2Q18			1Q18			4Q17			3Q17			2Q17			1Q18		2Q17		2018			2017			2017
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking	$	12,497		$	12,597		$	12,070		$	12,033		$	11,412		(1	)%	10	%	$	25,094		$	22,382		12	%
Corporate & Investment Bank	9,923			10,483			7,518			8,615			8,925			(5	)	11		20,406			18,524			10
Commercial Banking	2,316			2,166			2,353			2,146			2,088			7		11		4,482			4,106			9
Asset & Wealth Management	3,572			3,506			3,638			3,472			3,437			2		4		7,078			6,725			5
Corporate	80			(232		)	175			186			804			NM		(90	)	(152		)	779			NM
TOTAL NET REVENUE	$	28,388		$	28,520		$	25,754		$	26,452		$	26,666		—		6		$	56,908		$	52,516		8

TOTAL NONINTEREST EXPENSE
Consumer & Community Banking	$	6,879		$	6,909		$	6,672		$	6,495		$	6,500		—		6		$	13,788		$	12,895		7
Corporate & Investment Bank	5,403			5,659			4,553			4,793			4,877			(5	)	11		11,062			10,061			10
Commercial Banking	844			844			912			800			790			—		7		1,688			1,615			5
Asset & Wealth Management	2,566			2,581			2,612			2,408			2,417			(1	)	6		5,147			5,198			(1	)
Corporate	279			87			146			74			183			221		52		366			281			30
TOTAL NONINTEREST EXPENSE	$	15,971		$	16,080		$	14,895		$	14,570		$	14,767		(1	)	8		$	32,051		$	30,050		7

PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking	$	5,618		$	5,688		$	5,398		$	5,538		$	4,912		(1	)	14		$	11,306		$	9,487		19
Corporate & Investment Bank	4,520			4,824			2,965			3,822			4,048			(6	)	12		9,344			8,463			10
Commercial Banking	1,472			1,322			1,441			1,346			1,298			11		13		2,794			2,491			12
Asset & Wealth Management	1,006			925			1,026			1,064			1,020			9		(1	)	1,931			1,527			26
Corporate	(199		)	(319		)	29			112			621			38		NM		(518		)	498			NM
PRE-PROVISION PROFIT	$	12,417		$	12,440		$	10,859		$	11,882		$	11,899		—		4		$	24,857		$	22,466		11

PROVISION FOR CREDIT LOSSES
Consumer & Community Banking	$	1,108		$	1,317		$	1,231		$	1,517		$	1,394		(16	)	(21	)	$	2,425		$	2,824		(14	)
Corporate & Investment Bank	58			(158		)	130			(26		)	(53		)	NM		NM		(100		)	(149		)	33
Commercial Banking	43			(5		)	(62		)	(47		)	(130		)	NM		NM		38			(167		)	NM
Asset & Wealth Management	2			15			9			8			4			(87	)	(50	)	17			22			(23	)
Corporate	(1		)	(4		)	—			—			—			75		NM		(5		)	—			NM
PROVISION FOR CREDIT LOSSES	$	1,210		$	1,165		$	1,308		$	1,452		$	1,215		4		—		$	2,375		$	2,530		(6	)

NET INCOME/(LOSS)
Consumer & Community Banking	$	3,412		$	3,326		$	2,631		$	2,553		$	2,223		3		53		$	6,738		$	4,211		60
Corporate & Investment Bank	3,198			3,974			2,316			2,546			2,710			(20	)	18		7,172			5,951			21
Commercial Banking	1,087			1,025			957			881			902			6		21		2,112			1,701			24
Asset & Wealth Management	755			770			654			674			624			(2	)	21		1,525			1,009			51
Corporate	(136		)	(383		)	(2,326		)	78			570			64		NM		(519		)	605			NM
TOTAL NET INCOME	$	8,316		$	8,712		$	4,232		$	6,732		$	7,029		(5	)	18		$	17,028		$	13,477		26

Page 8



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

																			Jun 30, 2018
																			Change				SIX MONTHS ENDED JUNE 30,
	Jun 30,				Mar 31,			Dec 31,			Sep 30,				Jun 30,				Mar 31,		Jun 30,						2018 Change
	2018				2018			2017			2017				2017				2018		2017		2018		2017		2017
CAPITAL (a)
Risk-based capital metrics
Standardized Transitional
CET1 capital	$	184,704		(f)	$	183,655		$	183,300		$	187,061			$	186,942			1	%	(1	)%
Tier 1 capital	210,316			(f)	209,296			208,644			212,297				212,353				—		(1	)
Total capital	238,631			(f)	238,326			238,395			242,949				243,061				—		(2	)
Risk-weighted assets	1,549,063			(f)	1,552,952			1,499,506			1,500,658			(g)	1,496,904			(g)	—		3
CET1 capital ratio	11.9		%	(f)	11.8		%	12.2		%	12.5		%	(g)	12.5		%	(g)
Tier 1 capital ratio	13.6			(f)	13.5			13.9			14.1			(g)	14.2			(g)
Total capital ratio	15.4			(f)	15.3			15.9			16.2			(g)	16.2			(g)

Advanced Transitional
CET1 capital	$	184,704		(f)	$	183,655		$	183,300		$	187,061			$	186,942			1		(1	)
Tier 1 capital	210,316			(f)	209,296			208,644			212,297				212,353				—		(1	)
Total capital	229,170			(f)	228,320			227,933			232,794				233,345				—		(2	)
Risk-weighted assets	1,443,537			(f)	1,466,095			1,435,825			1,443,019				1,459,196				(2	)	(1	)
CET1 capital ratio	12.8		%	(f)	12.5		%	12.8		%	13.0		%		12.8		%
Tier 1 capital ratio	14.6			(f)	14.3			14.5			14.7				14.6
Total capital ratio	15.9			(f)	15.6			15.9			16.1				16.0

Leverage-based capital metrics
Adjusted average assets (b)	$	2,566,009		(f)	$	2,539,183		$	2,514,270		$	2,521,889			$	2,512,120			1		2
Tier 1 leverage ratio	8.2		%	(f)	8.2		%	8.3		%	8.4		%		8.5		%

Total leverage exposure (c)	3,255,746			(f)	3,234,103			3,204,463			3,211,053				3,193,072				1		2
SLR (c)	6.5		%	(f)	6.5		%	6.5		%	6.6		%		6.7		%

TANGIBLE COMMON EQUITY (period-end) (d)
Common stockholders’ equity	$	231,390			$	230,133		$	229,625		$	232,314			$	232,415			1		—
Less: Goodwill	47,488				47,499			47,507			47,309				47,300				—		—
Less: Other intangible assets	806				832			855			808				827				(3	)	(3	)
Add: Deferred tax liabilities (e)	2,227				2,216			2,204			3,271				3,252				—		(32	)
Total tangible common equity	$	185,323			$	184,018		$	183,467		$	187,468			$	187,540			1		(1	)

TANGIBLE COMMON EQUITY (average) (d)
Common stockholders’ equity	$	228,901			$	227,615		$	231,573		$	231,861			$	230,200			1		(1	)	$	228,261	$	228,959	—	%
Less: Goodwill	47,494				47,504			47,376			47,309				47,290				—		—		47,499		47,292		—
Less: Other intangible assets	822				845			820			818				838				(3	)	(2	)	833		845		(1	)
Add: Deferred tax liabilities (e)	2,221				2,210			2,738			3,262				3,239				—		(31	)	2,216		3,234		(31	)
Total tangible common equity	$	182,806			$	181,476		$	186,115		$	186,996			$	185,311			1		(1	)	$	182,145	$	184,056	(1	)

INTANGIBLE ASSETS (period-end)
Goodwill	$	47,488			$	47,499		$	47,507		$	47,309			$	47,300			—		—
Mortgage servicing rights	6,241				6,202			6,030			5,738				5,753				1		8
Other intangible assets	806				832			855			808				827				(3	)	(3	)
Total intangible assets	$	54,535			$	54,533		$	54,392		$	53,855			$	53,880			—		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, and on pages 32–37 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018.


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


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


(d)	For further discussion of TCE, see 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																			SIX MONTHS ENDED JUNE 30,
																2Q18 Change										2018 Change
	2Q18			1Q18			4Q17			3Q17			2Q17			1Q18		2Q17		2018			2017			2017
EARNINGS PER SHARE
Basic earnings per share
Net income	$	8,316		$	8,712		$	4,232		$	6,732		$	7,029		(5	)%	18	%	$	17,028		$	13,477		26	%
Less: Preferred stock dividends	379			409			428			412			411			(7	)	(8	)	788			823			(4	)
Net income applicable to common equity	7,937			8,303			3,804			6,320			6,618			(4	)	20		16,240			12,654			28
Less: Dividends and undistributed earnings allocated to
participating securities	57			65			30			58			63			(12	)	(10	)	121			123			(2	)
Net income applicable to common stockholders	$	7,880		$	8,238		$	3,774		$	6,262		$	6,555		(4	)	20		$	16,119		$	12,531		29

Total weighted-average basic shares outstanding	3,415.2			3,458.3			3,489.7			3,534.7			3,574.1			(1	)	(4	)	3,436.7			3,587.9			(4	)
Net income per share	$	2.31		$	2.38		$	1.08		$	1.77		$	1.83		(3	)	26		$	4.69		$	3.49		34

Diluted earnings per share
Net income applicable to common stockholders	$	7,880		$	8,238		$	3,774		$	6,262		$	6,555		(4	)	20		$	16,119		$	12,531		29
Total weighted-average basic shares outstanding	3,415.2			3,458.3			3,489.7			3,534.7			3,574.1			(1	)	(4	)	3,436.7			3,587.9			(4	)
Add: Employee stock options, stock appreciation rights (“SARs”), warrants and unvested performance share units (“PSUs”)	19.5			21.2			22.5			24.9			24.9			(8	)	(22	)	20.4			26.8			(24	)
Total weighted-average diluted shares outstanding	3,434.7			3,479.5			3,512.2			3,559.6			3,599.0			(1	)	(5	)	3,457.1			3,614.7			(4	)
Net income per share	$	2.29		$	2.37		$	1.07		$	1.76		$	1.82		(3	)	26		$	4.66		$	3.47		34

COMMON DIVIDENDS
Cash dividends declared per share	$	0.56		$	0.56		$	0.56		$	0.56		$	0.50		—		12		$	1.12		$	1.00		12
Dividend payout ratio	24		%	23		%	51		%	31		%	27		%					24		%	28		%

COMMON EQUITY REPURCHASE PROGRAM (a)
Total shares of common stock repurchased	45.3			41.4			47.8			51.7			35.0			9		29		86.7			67.1			29
Average price paid per share of common stock	$	109.67		$	112.78		$	100.74		$	92.02		$	86.05		(3	)	27		$	111.15		$	87.05		28
Aggregate repurchases of common equity	4,968			4,671			4,808			4,763			3,007			6		65		9,639			5,839			65

EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans	0.6			19.8			2.5			0.9			0.9			(97	)	(33	)	20.4			21.9			(7	)
Net impact of employee issuances on stockholders’ equity (b)	$	272		$	(69	)	$	92		$	238		$	270		NM		1		$	203		$	299		(32	)


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


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

Page 10



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


	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q18 Change										2018 Change
	2Q18			1Q18			4Q17			3Q17			2Q17			1Q18		2Q17		2018			2017			2017
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	875		$	857		$	884		$	885		$	850		2	%	3	%	$	1,732		$	1,662		4	%
Asset management, administration and commissions	591			575			568			543			562			3		5		1,166			1,101			6
Mortgage fees and related income	324			465			378			428			401			(30	)	(19	)	789			807			(2	)
Card income	910			1,170			1,005			1,141			1,061			(22	)	(14	)	2,080			1,878			11
All other income	1,048			1,072			976			901			810			(2	)	29		2,120			1,553			37
Noninterest revenue	3,748			4,139			3,811			3,898			3,684			(9	)	2		7,887			7,001			13
Net interest income	8,749			8,458			8,259			8,135			7,728			3		13		17,207			15,381			12
TOTAL NET REVENUE	12,497			12,597			12,070			12,033			11,412			(1	)	10		25,094			22,382			12

Provision for credit losses	1,108			1,317			1,231			1,517			1,394			(16	)	(21	)	2,425			2,824			(14	)

NONINTEREST EXPENSE
Compensation expense (a)	2,621			2,660			2,555			2,548			2,504			(1	)	5		5,281			5,030			5
Noncompensation expense (a)(b)	4,258			4,249			4,117			3,947			3,996			—		7		8,507			7,865			8
TOTAL NONINTEREST EXPENSE	6,879			6,909			6,672			6,495			6,500			—		6		13,788			12,895			7

Income before income tax expense	4,510			4,371			4,167			4,021			3,518			3		28		8,881			6,663			33
Income tax expense	1,098			1,045			1,536			1,468			1,295			5		(15	)	2,143			2,452			(13	)
NET INCOME	$	3,412		$	3,326		$	2,631		$	2,553		$	2,223		3		53		$	6,738		$	4,211		60

REVENUE BY LINE OF BUSINESS
Consumer & Business Banking	$	6,131		$	5,722		$	5,557		$	5,408		$	5,233		7		17		$	11,853		$	10,139		17
Home Lending	1,347			1,509			1,442			1,558			1,426			(11	)	(6	)	2,856			2,955			(3	)
Card, Merchant Services & Auto	5,019			5,366			5,071			5,067			4,753			(6	)	6		10,385			9,288			12

MORTGAGE FEES AND RELATED INCOME DETAILS:
Net production revenue	93			95			185			158			152			(2	)	(39	)	188			293			(36	)
Net mortgage servicing revenue (c)	231			370			193			270			249			(38	)	(7	)	601			514			17
Mortgage fees and related income	$	324		$	465		$	378		$	428		$	401		(30	)	(19	)	$	789		$	807		(2	)

FINANCIAL RATIOS
ROE	26		%	25		%	19		%	19		%	17		%					26		%	16		%
Overhead ratio	55			55			55			54			57							55			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 $827 million, $777 million, $726 million, $688 million and $638 million for the three months ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017, and June 30, 2017, respectively, and $1.6 billion and $1.2 billion for the six months ended June 30, 2018, and 2017, respectively.

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

$(6) million and $(109) million for the six months ended June 30, 2018, and 2017, respectively.

Page 11



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

	QUARTERLY TRENDS														SIX MONTHS ENDED JUNE 30,
											2Q18 Change								2018 Change
	2Q18		1Q18		4Q17		3Q17		2Q17		1Q18		2Q17		2018		2017		2017
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	552,674	$	540,659	$	552,601	$	537,459	$	529,859	2	%	4	%	$	552,674	$	529,859	4	%

Loans:
Consumer & Business Banking	26,272		25,856		25,789		25,275		25,044		2		5		26,272		25,044		5
Home equity	39,033		40,777		42,751		44,542		46,330		(4	)	(16	)	39,033		46,330		(16	)
Residential mortgage	202,205		199,548		197,339		195,134		189,661		1		7		202,205		189,661		7
Home Lending	241,238		240,325		240,090		239,676		235,991		—		2		241,238		235,991		2
Card	145,255		140,414		149,511		141,313		140,141		3		4		145,255		140,141		4
Auto	65,014		66,042		66,242		65,102		65,627		(2	)	(1	)	65,014		65,627		(1	)
Student	—		—		—		47		75		NM		NM		—		75		NM
Total loans	477,779		472,637		481,632		471,413		466,878		1		2		477,779		466,878		2
Core loans	419,295		409,296		415,167		401,648		393,639		2		7		419,295		393,639		7

Deposits	679,154		685,170		659,885		653,460		648,369		(1	)	5		679,154		648,369		5
Equity	51,000		51,000		51,000		51,000		51,000		—		—		51,000		51,000		—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	544,642	$	538,938	$	538,311	$	531,959	$	528,598	1		3		$	541,806	$	530,338	2

Loans:
Consumer & Business Banking	26,110		25,845		25,234		25,166		24,725		1		6		25,978		24,543		6
Home equity	39,898		41,786		43,624		45,424		47,339		(5	)	(16	)	40,836		48,303		(15	)
Residential mortgage	201,587		198,653		197,032		192,805		187,201		1		8		200,129		185,489		8
Home Lending	241,485		240,439		240,656		238,229		234,540		—		3		240,965		233,792		3
Card	142,724		142,927		143,500		141,172		138,132		—		3		142,825		137,674		4
Auto	65,383		65,863		65,616		65,175		65,474		(1	)	—		65,622		65,395		—
Student	—		—		12		58		4,642		NM		NM		—		5,772		NM
Total loans	475,702		475,074		475,018		469,800		467,513		—		2		475,390		467,176		2
Core loans	414,120		410,147		406,935		398,319		387,783		1		7		412,145		384,419		7

Deposits	673,761		659,599		651,976		645,732		639,873		2		5		666,719		631,441		6
Equity	51,000		51,000		51,000		51,000		51,000		—		—		51,000		51,000		—

Headcount (a)	131,945		133,408		133,721		134,151		135,040		(1	)	(2	)	131,945		135,040		(2	)


(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																							SIX MONTHS ENDED JUNE 30,
																				2Q18 Change												2018 Change
	2Q18				1Q18			4Q17				3Q17				2Q17				1Q18		2Q17		2018				2017				2017
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)	$	3,854			$	4,104		$	4,084			$	4,068			$	4,124			(6	)%	(7	)%	$	3,854			$	4,124			(7	)%
Net charge-offs/(recoveries) (c)
Consumer & Business Banking	50				53			73				71				56				(6	)	(11	)	103				113				(9	)
Home equity	(7		)		16			(4		)		13				7				NM		NM		9				54				(83	)
Residential mortgage	(149		)		2			(13		)		(2		)		(4		)		NM		NM		(147		)		(1		)		NM
Home Lending	(156		)		18			(17		)		11				3				NM		NM		(138		)		53				NM
Card	1,164				1,170			1,074				1,019				1,037				(1	)	12		2,334				2,030				15
Auto	50				76			86				116				48				(34	)	4		126				129				(2	)
Student	—				—			—				—				—				NM		NM		—				498			(h)	(100	)
Total net charge-offs/(recoveries)	$	1,108			$	1,317		$	1,216			$	1,217		(g)	$	1,144			(16	)	(3	)	$	2,425			$	2,823		(h)	(14	)
Net charge-off/(recovery) rate (c)
Consumer & Business Banking	0.77			%	0.83		%	1.15			%	1.12			%	0.91			%					0.80			%	0.93			%
Home equity (d)	(0.09		)		0.21			(0.05		)		0.15				0.08								0.06				0.30
Residential mortgage (d)	(0.33		)		—			(0.03		)		—				(0.01		)						(0.16		)		—
Home Lending (d)	(0.29		)		0.03			(0.03		)		0.02				0.01								(0.13		)		0.05
Card	3.27				3.32			2.97				2.87				3.01								3.30				2.98
Auto	0.31				0.47			0.52				0.71				0.29								0.39				0.40
Student	—				—			—				—				—								—				NM
Total net charge-off/(recovery) rate (d)	1.00				1.20			1.09				1.10			(g)	1.07								1.10				1.32			(h)

30+ day delinquency rate
Home Lending (e)(f)	0.86			%	0.98		%	1.19			%	1.03			%	1.02			%					0.86			%	1.02			%
Card	1.65				1.82			1.80				1.76				1.59								1.65				1.59
Auto	0.77				0.71			0.89				0.93				0.88								0.77				0.88
90+ day delinquency rate - Card	0.85				0.95			0.92				0.86				0.80								0.85				0.80

Allowance for loan losses
Consumer & Business Banking	$	796			$	796		$	796			$	796			$	796			—		—		$	796			$	796			—
Home Lending, excluding PCI loans	1,003				1,003			1,003				1,153				1,153				—		(13	)	1,003				1,153				(13	)
Home Lending - PCI loans (c)	2,132				2,205			2,225				2,245				2,265				(3	)	(6	)	2,132				2,265				(6	)
Card	4,884				4,884			4,884				4,684				4,384				—		11		4,884				4,384				11
Auto	464				464			464				499				499				—		(7	)	464				499				(7	)
Total allowance for loan losses (c)	$	9,279			$	9,352		$	9,372			$	9,377			$	9,097			(1	)	2		$	9,279			$	9,097			2

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 June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $3.3 billion, $4.0 billion, $4.3 billion, $4.0 billion, and $4.1 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 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 June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, excluded write-offs in the PCI portfolio of $73 million, $20 million, $20 million, $20 million and $22 million, respectively, and for the six months ended June 30, 2018 and 2017 excluded $93 million and $46 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 June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of (0.07)%, 0.16%, (0.04)%, 0.11% and 0.06%, respectively; (2) residential mortgage of (0.30)%, -%, (0.03)%, -%, and (0.01)%, respectively; (3) Home Lending of (0.26)%, 0.03%, (0.03)%, 0.02% and 0.01%, respectively; and (4) total CCB of 0.93%, 1.12%, 1.02%, 1.03% and 0.99%, respectively. For the six months ended June 30, 2018 and 2017, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of 0.04% and 0.23%, respectively; (2) residential mortgage of (0.15)% and

–%, respectively; (3) Home Lending of (0.12)% and 0.05%, respectively; and (4) total CCB of 1.03% and 1.23%, respectively.


(e)	At June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, excluded mortgage loans insured by U.S. government agencies of $5.0 billion, $5.7 billion, $6.2 billion, $5.9 billion and $6.0 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 9.40%, 9.49%, 10.13%, 9.30% and 9.06% at June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, respectively.


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


(h)	Excluding net charge-offs of $467 million related to the student loan portfolio sale, the total net charge-off rate for the six months ended June 30, 2017 would have been 1.10%.

Page 13



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

	QUARTERLY TRENDS																								SIX MONTHS ENDED JUNE 30,
																					2Q18 Change												2018 Change
	2Q18				1Q18				4Q17				3Q17				2Q17				1Q18		2Q17		2018				2017				2017
BUSINESS METRICS
Number of:
Branches	5,091				5,106				5,130				5,174				5,217				—	%	(2	)%	5,091				5,217				(2	)%
Active digital customers (in thousands) (a)	47,952				47,911				46,694				46,349				45,876				—		5		47,952				45,876				5
Active mobile customers (in thousands) (b)	31,651				30,924				30,056				29,273				28,386				2		12		31,651				28,386				12

Debit and credit card sales volume (in billions)	$	255.0			$	232.4			$	245.1			$	231.1			$	231.3		(e)	10		10		$	487.4			$	440.7		(e)	11

Consumer & Business Banking
Average deposits	$	659,772			$	646,400			$	637,160			$	630,351			$	625,381			2		5		$	653,123			$	617,253			6
Deposit margin	2.36			%	2.20			%	2.06			%	2.02			%	1.96			%					2.28			%	1.92			%
Business banking origination volume	$	1,921			$	1,656			$	1,798			$	1,654			$	2,193			16		(12	)	$	3,577			$	3,896			(8	)
Client investment assets	283,731				276,183				273,325				262,513				252,993				3		12		283,731				252,993				12

Home Lending (in billions)
Mortgage origination volume by channel
Retail	$	10.4			$	8.3			$	11.0			$	10.6			$	9.7			25		7		$	18.7			$	18.7			—
Correspondent	11.1				9.9				13.4				16.3				14.2				12		(22	)	21.0				27.6				(24	)
Total mortgage origination volume (c)	$	21.5			$	18.2			$	24.4			$	26.9			$	23.9			18		(10	)	$	39.7			$	46.3			(14	)
Total loans serviced (period-end)	$	802.6			$	804.9			$	816.1			$	821.6			$	827.8			—		(3	)	$	802.6			$	827.8			(3	)
Third-party mortgage loans serviced (period-end)	533.0				539.0				553.5				556.9				568.0				(1	)	(6	)	533.0				568.0				(6	)
MSR carrying value (period-end)	6.2				6.2				6.0				5.7				5.8				—		7		6.2				5.8				7
Ratio of MSR carrying value (period-end) to third-party
mortgage loans serviced (period-end)	1.16			%	1.15			%	1.08			%	1.02			%	1.02			%					1.16			%	1.02			%
MSR revenue multiple (d)	3.31		x		3.19		x		3.09		x		2.91		x		2.91		x						3.22		x		2.91		x

Card, excluding Commercial Card
Credit card sales volume (in billions)	$	174.0			$	157.1			$	168.0			$	157.7			$	156.8			11		11		$	331.1			$	296.5			12
New accounts opened	1.9				2.0				1.9				1.9				2.1				(5	)	(10	)	3.9				4.6				(15	)

Card Services
Net revenue rate	10.38			%	11.61			%	10.64			%	10.95			%	10.53			%					11.00			%	10.34			%

Merchant Services
Merchant processing volume (in billions)	$	330.8			$	316.3			$	321.4			$	301.6			$	294.4			5		12		$	647.1			$	568.7			14

Auto
Loan and lease origination volume (in billions)	$	8.3			$	8.4			$	8.2			$	8.8			$	8.3			(1	)	—		$	16.7			$	16.3			2
Average Auto operating lease assets	18,407				17,582				16,630				15,641				14,728				5		25		17,996				14,245				26


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


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


(c)	Firmwide mortgage origination volume was $23.7 billion, $20.0 billion, $26.6 billion, $29.2 billion and $26.2 billion for the three months ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, respectively, and $43.7 billion and $51.8 billion for the six months ended June 30, 2018, and 2017, respectively.


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


(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																			SIX MONTHS ENDED JUNE 30,
																2Q18 Change										2018 Change
	2Q18			1Q18			4Q17			3Q17			2Q17			1Q18		2Q17		2018			2017			2017
INCOME STATEMENT
REVENUE
Investment banking fees	$	2,139		$	1,696		$	1,798		$	1,844		$	1,839		26	%	16	%	$	3,835		$	3,714		3	%
Principal transactions	3,666			4,029			1,765			2,673			2,928			(9	)	25		7,695			6,435			20
Lending- and deposit-related fees	382			381			382			374			387			—		(1	)	763			775			(2	)
Asset management, administration and commissions	1,155			1,131			1,046			1,041			1,068			2		8		2,286			2,120			8
All other income (a)	190			680			(50		)	187			258			(72	)	(26	)	870			435			100
Noninterest revenue	7,532			7,917			4,941			6,119			6,480			(5	)	16		15,449			13,479			15
Net interest income	2,391			2,566			2,577			2,496			2,445			(7	)	(2	)	4,957			5,045			(2	)
TOTAL NET REVENUE (b)(c)	9,923			10,483			7,518			8,615			8,925			(5	)	11		20,406			18,524			10

Provision for credit losses	58			(158		)	130			(26		)	(53		)	NM		NM		(100		)	(149		)	33

NONINTEREST EXPENSE
Compensation expense	2,720			3,036			1,997			2,284			2,451			(10	)	11		5,756			5,250			10
Noncompensation expense	2,683			2,623			2,556			2,509			2,426			2		11		5,306			4,811			10
TOTAL NONINTEREST EXPENSE	5,403			5,659			4,553			4,793			4,877			(5	)	11		11,062			10,061			10

Income before income tax expense	4,462			4,982			2,835			3,848			4,101			(10	)	9		9,444			8,612			10
Income tax expense	1,264			1,008			519			1,302			1,391			25		(9	)	2,272			2,661			(15	)
NET INCOME (b)	$	3,198		$	3,974		$	2,316		$	2,546		$	2,710		(20	)	18		$	7,172		$	5,951		21

FINANCIAL RATIOS
ROE	17		%	22		%	12		%	13		%	15		%					20		%	16		%
Overhead ratio	54			54			61			56			55							54			54
Compensation expense as percentage of total net revenue	27			29			27			27			27							28			28

REVENUE BY BUSINESS
Investment Banking	$	1,949		$	1,587		$	1,677		$	1,730		$	1,731		23		13		$	3,536		$	3,445		3
Treasury Services	1,181			1,116			1,078			1,058			1,055			6		12		2,297			2,036			13
Lending	321			302			336			331			373			6		(14	)	623			762			(18	)
Total Banking	3,451			3,005			3,091			3,119			3,159			15		9		6,456			6,243			3
Fixed Income Markets	3,453			4,553			2,217			3,164			3,216			(24	)	7		8,006			7,431			8
Equity Markets	1,959			2,017			1,148			1,363			1,586			(3	)	24		3,976			3,192			25
Securities Services	1,103			1,059			1,012			1,007			982			4		12		2,162			1,898			14
Credit Adjustments & Other (d)	(43		)	(151		)	50			(38		)	(18		)	72		(139	)	(194		)	(240		)	19
Total Markets & Investor Services (a)	6,472			7,478			4,427			5,496			5,766			(13	)	12		13,950			12,281			14
TOTAL NET REVENUE (b)	$	9,923		$	10,483		$	7,518		$	8,615		$	8,925		(5	)	11		$	20,406		$	18,524		10


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


(b)	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.

(c)

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 $428 million, $405 million, $756 million, $505 million and $554 million for the three months ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017, and June 30, 2017, respectively and $833 million and $1.1 billion for the six months ended June 30, 2018 and 2017, respectively.


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

Page 15



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q18 Change										2018 Change
	2Q18			1Q18			4Q17			3Q17			2Q17			1Q18		2Q17		2018			2017			2017
SELECTED BALANCE SHEET DATA (period-end)
Assets	$	908,954		$	909,845		$	826,384		$	851,808		$	847,377		—	%	7	%	$	908,954		$	847,377		7	%
Loans:
Loans retained (a)	116,645			112,626			108,765			106,955			108,935			4		7		116,645			108,935			7
Loans held-for-sale and loans at fair value	6,254			6,122			4,321			3,514			7,168			2		(13	)	6,254			7,168			(13	)
Total loans	122,899			118,748			113,086			110,469			116,103			3		6		122,899			116,103			6
Core loans	122,574			118,434			112,754			110,133			115,764			3		6		122,574			115,764			6

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

SELECTED BALANCE SHEET DATA (average)
Assets	$	937,217		$	910,146		$	866,293		$	858,912		$	864,686		3		8		923,756			$	851,425		8
Trading assets - debt and equity instruments	358,611			354,869			338,836			349,448			351,678			1		2		356,750			340,073			5
Trading assets - derivative receivables	60,623			60,161			56,140			55,875			54,937			1		10		60,393			56,931			6
Loans:
Loans retained (a)	113,950			109,355			107,263			107,829			110,011			4		4		111,665			109,204			2
Loans held-for-sale and loans at fair value	5,961			5,480			4,224			4,674			5,789			9		3		5,722			5,550			3
Total loans	119,911			114,835			111,487			112,503			115,800			4		4		117,387			114,754			2
Core loans	119,637			114,514			111,152			112,168			115,434			4		4		117,090			114,375			2

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

Headcount	51,400			51,291			51,181			50,641			49,228			—		4		51,400			49,228			4

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	114		$	20		$	22		$	20		$	47		470		143		$	134		$	29		362
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (b)	352			668			812			437			462			(47	)	(24	)	352			462			(24	)
Nonaccrual loans held-for-sale and loans at fair value	175			29			—			2			31			NM		465		175			31			465
Total nonaccrual loans	527			697			812			439			493			(24	)	7		527			493			7

Derivative receivables	112			132			130			164			170			(15	)	(34	)	112			170			(34	)
Assets acquired in loan satisfactions	104			91			85			92			71			14		46		104			71			46
Total nonperforming assets	743			920			1,027			695			734			(19	)	1		743			734			1
Allowance for credit losses:
Allowance for loan losses	1,043			1,128			1,379			1,253			1,298			(8	)	(20	)	1,043			1,298			(20	)
Allowance for lending-related commitments	828			800			727			745			745			4		11		828			745			11
Total allowance for credit losses	1,871			1,928			2,106			1,998			2,043			(3	)	(8	)	1,871			2,043			(8	)

Net charge-off/(recovery) rate (a)(c)	0.40		%	0.07		%	0.08		%	0.07		%	0.17		%					0.24		%	0.05		%
Allowance for loan losses to period-end loans retained (a)	0.89			1.00			1.27			1.17			1.19							0.89			1.19
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (d)	1.27			1.46			1.92			1.79			1.83							1.27			1.83
Allowance for loan losses to nonaccrual loans retained (a)(b)	296			169			170			287			281							296			281
Nonaccrual loans to total period-end loans	0.43			0.59			0.72			0.40			0.42							0.43			0.42


(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 $141 million, $298 million, $316 million, $177 million and $164 million were held against nonaccrual loans at June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017, and June 30, 2017, respectively.


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


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

Page 16



JPMORGAN CHASE & CO.
CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q18 Change								2018 Change
	2Q18			1Q18			4Q17			3Q17			2Q17			1Q18		2Q17		2018		2017		2017
BUSINESS METRICS
Advisory	$	626		$	575		$	526		$	620		$	503		9	%	24	%	$	1,201	$	1,004	20	%
Equity underwriting	570			346			361			300			382			65		49		916		807		14
Debt underwriting	943			775			911			924			954			22		(1	)	1,718		1,903		(10	)
Total investment banking fees	$	2,139		$	1,696		$	1,798		$	1,844		$	1,839		26		16		$	3,835	$	3,714	3

Assets under custody (“AUC”) (period-end) (in billions)	$	24,184		$	24,026		$	23,469		$	22,738		$	22,134		1		9		$	24,184	$	22,134	9

Client deposits and other third-party liabilities (average) (a)	433,646			423,301			417,003			421,588			404,920			2		7		428,502		398,354		8

95% Confidence Level - Total CIB VaR (average)
CIB trading VaR by risk type: (b)
Fixed income	$	31		$	34		$	28		$	28		$	28		(9	)	11
Foreign exchange	6			9			7			13			8			(33	)	(25	)
Equities	15			17			14			12			12			(12	)	25
Commodities and other	7			5			6			6			8			40		(13	)
Diversification benefit to CIB trading VaR (c)	(27		)	(25		)	(24		)	(31		)	(30		)	(8	)	10
CIB trading VaR (b)	32			40			31			28			26			(20	)	23
Credit portfolio VaR (d)	4			3			4			5			9			33		(56	)
Diversification benefit to CIB VaR (c)	(3		)	(3		)	(3		)	(3		)	(8		)	—		63
CIB VaR	$	33		$	40		$	32		$	30		$	27		(18	)	22


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


(b)	CIB trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in CIB, including credit spread sensitivity to CVA. For further information, see VaR measurement on pages 123–125 of the 2017 Annual Report, and pages 61-63 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018.


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


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

Page 17



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


	QUARTERLY TRENDS																							SIX MONTHS ENDED JUNE 30,
																				2Q18 Change											2018 Change
	2Q18			1Q18				4Q17				3Q17				2Q17				1Q18		2Q17		2018			2017				2017
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees	$	224		$	226			$	229			$	223			$	232			(1	)%	(3	)%	$	450		$	467			(4	)%
Asset management, administration and commissions	16			18				18				16				16				(11	)	—		34			34				—
All other income (a)	393			305				501				353				335				29		17		698			681				2
Noninterest revenue	633			549				748				592				583				15		9		1,182			1,182				—
Net interest income	1,683			1,617				1,605				1,554				1,505				4		12		3,300			2,924				13
TOTAL NET REVENUE (b)	2,316			2,166				2,353				2,146				2,088				7		11		4,482			4,106				9

Provision for credit losses	43			(5		)		(62		)		(47		)		(130		)		NM		NM		38			(167		)		NM

NONINTEREST EXPENSE
Compensation expense (c)	415			421				378				386				382				(1	)	9		836			770				9
Noncompensation expense (c)	429			423				534				414				408				1		5		852			845				1
TOTAL NONINTEREST EXPENSE	844			844				912				800				790				—		7		1,688			1,615				5

Income before income tax expense	1,429			1,327				1,503				1,393				1,428				8		—		2,756			2,658				4
Income tax expense	342			302				546				512				526				13		(35	)	644			957				(33	)
NET INCOME	$	1,087		$	1,025			$	957			$	881			$	902			6		21		$	2,112		$	1,701			24

Revenue by product
Lending	$	1,026		$	999			$	1,049			$	1,030			$	1,023			3		—		$	2,025		$	2,015			—
Treasury services	1,026			972				921				873				854				6		20		1,998			1,650				21
Investment banking (d)	254			184				204				196				189				38		34		438			405				8
Other	10			11				179				47				22				(9	)	(55	)	21			36				(42	)
Total Commercial Banking net revenue (b)	$	2,316		$	2,166			$	2,353			$	2,146			$	2,088			7		11		$	4,482		$	4,106			9

Investment banking revenue, gross (e)	$	739		$	569			$	608			$	578			$	533			30		39		$	1,308		$	1,199			9

Revenue by client segment
Middle Market Banking	$	919		$	895			$	870			$	848			$	839			3		10		$	1,814		$	1,623			12
Corporate Client Banking	807			687				711				688				662				17		22		1,494			1,328				13
Commercial Term Lending	344			352				356				367				364				(2	)	(5	)	696			731				(5	)
Real Estate Banking	170			164				166				157				147				4		16		334			281				19
Other	76			68				250				86				76				12		—		144			143				1
Total Commercial Banking net revenue (b)	$	2,316		$	2,166			$	2,353			$	2,146			$	2,088			7		11		$	4,482		$	4,106			9

FINANCIAL RATIOS
ROE	21		%	20			%	18			%	17			%	17			%					20		%	16			%
Overhead ratio	36			39				39				37				38								38			39


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

(b)

Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities that provide loans to qualified businesses in low-income communities, as well as tax-exempt income related to municipal financing activities of $106 million, $103 million, $304 million, $143 million and $131 million for the three months ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017, and June 30, 2017, respectively and $209 million and $252 million for the six months ended June 30, 2018 and 2017, respectively. The three months ended December 31, 2017 results reflect the estimated impact of the enactment of the TCJA including a benefit to other revenue of $115 million on certain investments in the Community Development Banking business.

(c)

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


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


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

Page 18



JPMORGAN CHASE & CO.
COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q18 Change											2018 Change
	2Q18			1Q18			4Q17			3Q17			2Q17			1Q18		2Q17		2018			2017				2017
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	220,232		$	220,880		$	221,228		$	220,064		$	220,676		—	%	—	%	$	220,232		$	220,676			—	%
Loans:
Loans retained	205,834			202,812			202,400			201,463			197,912			1		4		205,834			197,912				4
Loans held-for-sale and loans at fair value	1,576			2,473			1,286			764			1,661			(36	)	(5	)	1,576			1,661				(5	)
Total loans	$	207,410		$	205,285		$	203,686		$	202,227		$	199,573		1		4		$	207,410		$	199,573			4
Core loans	207,238			205,087			203,469			201,999			199,319			1		4		207,238			199,319				4
Equity	20,000			20,000			20,000			20,000			20,000			—		—		20,000			20,000				—

Period-end loans by client segment
Middle Market Banking	$	58,301		$	57,835		$	56,965		$	56,192		$	56,377		1		3		$	58,301		$	56,377			3
Corporate Client Banking	48,885			47,562			46,963			47,682			45,918			3		6		48,885			45,918				6
Commercial Term Lending	75,621			75,052			74,901			74,349			73,760			1		3		75,621			73,760				3
Real Estate Banking	17,458			17,709			17,796			17,127			16,726			(1	)	4		17,458			16,726				4
Other	7,145			7,127			7,061			6,877			6,792			—		5		7,145			6,792				5
Total Commercial Banking loans	$	207,410		$	205,285		$	203,686		$	202,227		$	199,573		1		4		$	207,410		$	199,573			4

SELECTED BALANCE SHEET DATA (average)
Total assets	$	218,396		$	217,159		$	218,452		$	218,196		$	217,694		1		—		$	217,781		$	215,750			1
Loans:
Loans retained	204,239			201,966			201,948			199,487			196,454			1		4		203,109			193,630				5
Loans held-for-sale and loans at fair value	1,381			406			844			675			1,402			240		(1	)	896			1,061				(16	)
Total loans	$	205,620		$	202,372		$	202,792		$	200,162		$	197,856		2		4		$	204,005		$	194,691			5
Core loans	205,440			202,161			202,569			199,920			197,567			2		4		203,809			194,391				5
Client deposits and other third-party liabilities	170,745			175,618			181,815			176,218			173,214			(3	)	(1	)	173,168			174,987				(1	)
Equity	20,000			20,000			20,000			20,000			20,000			—		—		20,000			20,000				—

Average loans by client segment
Middle Market Banking	$	57,346		$	56,754		$	56,170		$	55,782		$	55,651		1		3		$	57,052		$	54,963			4
Corporate Client Banking	48,150			45,760			47,585			46,451			46,483			5		4		46,962			45,041				4
Commercial Term Lending	75,307			74,942			74,577			74,136			73,081			—		3		75,126			72,484				4
Real Estate Banking	17,614			17,845			17,474			16,936			16,139			(1	)	9		17,729			15,834				12
Other	7,203			7,071			6,986			6,857			6,502			2		11		7,136			6,369				12
Total Commercial Banking loans	$	205,620		$	202,372		$	202,792		$	200,162		$	197,856		2		4		$	204,005		$	194,691			5

Headcount (a)	10,579			10,372			10,061			10,014			9,857			2		7		10,579			9,857				7

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)	$	34		$	—		$	22		$	19		$	8		NM		325		$	34		$	(2	)		NM
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (b)	546			666			617			744			819			(18	)	(33	)	546			819				(33	)
Nonaccrual loans held-for-sale and loans
at fair value	—			—			—			—			—			—		—		—			—				—
Total nonaccrual loans	546			666			617			744			819			(18	)	(33	)	546			819				(33	)

Assets acquired in loan satisfactions	2			1			3			3			4			100		(50	)	2			4				(50	)
Total nonperforming assets	548			667			620			747			823			(18	)	(33	)	548			823				(33	)
Allowance for credit losses:
Allowance for loan losses	2,622			2,591			2,558			2,620			2,678			1		(2	)	2,622			2,678				(2	)
Allowance for lending-related commitments	243			263			300			323			331			(8	)	(27	)	243			331				(27	)
Total allowance for credit losses	2,865			2,854			2,858			2,943			3,009			—		(5	)	2,865			3,009				(5	)

Net charge-off/(recovery) rate (c)	0.07		%	—		%	0.04		%	0.04		%	0.02		%					0.03		%	—			%
Allowance for loan losses to period-end loans retained	1.27			1.28			1.26			1.30			1.35							1.27			1.35
Allowance for loan losses to nonaccrual loans retained (b)	480			389			415			352			327							480			327
Nonaccrual loans to period-end total loans	0.26			0.32			0.30			0.37			0.41							0.26			0.41


(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 $126 million, $116 million, $92 million, $128 million and $112 million was held against nonaccrual loans retained at June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017, and June 30, 2017, respectively.


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

Page 19



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


	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q18 Change										2018 Change
	2Q18			1Q18			4Q17			3Q17			2Q17			1Q18		2Q17		2018			2017			2017
INCOME STATEMENT
REVENUE
Asset management, administration and commissions	$	2,532		$	2,528		$	2,651		$	2,466		$	2,435		—	%	4	%	$	5,060		$	4,739		7	%
All other income	155			102			128			151			156			52		(1	)	257			321			(20	)
Noninterest revenue	2,687			2,630			2,779			2,617			2,591			2		4		5,317			5,060			5
Net interest income	885			876			859			855			846			1		5		1,761			1,665			6
TOTAL NET REVENUE	3,572			3,506			3,638			3,472			3,437			2		4		7,078			6,725			5

Provision for credit losses	2			15			9			8			4			(87	)	(50	)	17			22			(23	)

NONINTEREST EXPENSE
Compensation expense	1,329			1,392			1,389			1,319			1,277			(5	)	4		2,721			2,609			4
Noncompensation expense	1,237			1,189			1,223			1,089			1,140			4		9		2,426			2,589			(6	)
TOTAL NONINTEREST EXPENSE	2,566			2,581			2,612			2,408			2,417			(1	)	6		5,147			5,198			(1	)

Income before income tax expense	1,004			910			1,017			1,056			1,016			10		(1	)	1,914			1,505			27
Income tax expense	249			140			363			382			392			78		(36	)	389			496			(22	)
NET INCOME	$	755		$	770		$	654		$	674		$	624		(2	)	21		$	1,525		$	1,009		51

REVENUE BY LINE OF BUSINESS
Asset Management	$	1,826		$	1,787		$	1,969		$	1,814		$	1,786		2		2		$	3,613		$	3,474		4
Wealth Management	1,746			1,719			1,669			1,658			1,651			2		6		3,465			3,251			7
TOTAL NET REVENUE	$	3,572		$	3,506		$	3,638		$	3,472		$	3,437		2		4		$	7,078		$	6,725		5

FINANCIAL RATIOS
ROE	33		%	34		%	28		%	29		%	27		%					33		%	22		%
Overhead ratio	72			74			72			69			70							73			77
Pretax margin ratio:
Asset Management	28			26			29			29			27							27			14
Wealth Management	28			26			27			32			33							27			31
Asset & Wealth Management	28			26			28			30			30							27			22

Headcount	23,141			23,268			22,975			22,685			22,289			(1	)	4		23,141			22,289			4

Number of Wealth Management client advisors	2,644			2,640			2,605			2,581			2,452			—		8		2,644			2,452			8

Page 20



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

	QUARTERLY TRENDS																				SIX MONTHS ENDED JUNE 30,
																	2Q18 Change											2018 Change
	2Q18				1Q18			4Q17			3Q17			2Q17			1Q18		2Q17		2018				2017			2017
SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	161,474			$	158,439		$	151,909		$	149,170		$	147,508		2	%	9	%	$	161,474			$	147,508		9	%
Loans	138,606				136,030			130,640			128,038			124,517			2		11		138,606				124,517			11
Core loans	138,606				136,030			130,640			128,038			124,517			2		11		138,606				124,517			11
Deposits	131,511				147,238			146,407			141,409			146,758			(11	)	(10	)	131,511				146,758			(10	)
Equity	9,000				9,000			9,000			9,000			9,000			—		—		9,000				9,000			—

SELECTED BALANCE SHEET DATA (average)
Total assets	$	158,244			$	154,345		$	149,147		$	146,388		$	142,966		3		11		$	156,305			$	140,585		11
Loans	136,710				132,634			127,802			125,445			122,173			3		12		134,683				120,252			12
Core loans	136,710				132,634			127,802			125,445			122,173			3		12		134,683				120,252			12
Deposits	139,557				144,199			142,069			144,496			150,786			(3	)	(7	)	141,865				154,776			(8	)
Equity	9,000				9,000			9,000			9,000			9,000			—		—		9,000				9,000			—

CREDIT DATA AND QUALITY STATISTICS
Net charge-offs	$	(5	)		$	1		$	4		$	5		$	2		NM		NM		$	(4	)		$	5		NM
Nonaccrual loans	323				359			375			337			400			(10	)	(19	)	323				400			(19	)
Allowance for credit losses:
Allowance for loan losses	304				301			290			285			285			1		7		304				285			7
Allowance for lending-related commitments	15				13			10			10			10			15		50		15				10			50
Total allowance for credit losses	319				314			300			295			295			2		8		319				295			8
Net charge-off/(recovery) rate	(0.01		)	%	—		%	0.01		%	0.02		%	0.01		%					(0.01		)	%	0.01		%
Allowance for loan losses to period-end loans	0.22				0.22			0.22			0.22			0.23							0.22				0.23
Allowance for loan losses to nonaccrual loans	94				84			77			85			71							94				71
Nonaccrual loans to period-end loans	0.23				0.26			0.29			0.26			0.32							0.23				0.32

Page 21



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


															Jun 30, 2018
															Change				SIX MONTHS ENDED JUNE 30,
	Jun 30,			Mar 31,			Dec 31,		Sep 30,			Jun 30,			Mar 31,		Jun 30,								2018 Change
CLIENT ASSETS	2018			2018			2017		2017			2017			2018		2017		2018			2017			2017
Assets by asset class
Liquidity	$	448		$	432		$	459	$	441		$	434		4	%	3	%	$	448		$	434		3	%
Fixed income	452			467			474		461			440			(3	)	3		452			440			3
Equity	435			432			428		405			390			1		12		435			390			12
Multi-asset and alternatives	693			685			673		638			612			1		13		693			612			13
TOTAL ASSETS UNDER MANAGEMENT	2,028			2,016			2,034		1,945			1,876			1		8		2,028			1,876			8
Custody/brokerage/administration/deposits	771			772			755		733			722			—		7		771			722			7
TOTAL CLIENT ASSETS	$	2,799		$	2,788		$	2,789	$	2,678		$	2,598		—		8		$	2,799		$	2,598		8

Memo:
Alternatives client assets (a)	$	172		$	169		$	166	$	161		$	159		2		8		$	172		$	159		8

Assets by client segment
Private Banking	$	551		$	537		$	526	$	507		$	488		3		13		$	551		$	488		13
Institutional	934			937			968		921			889			—		5		934			889			5
Retail	543			542			540		517			499			—		9		543			499			9
TOTAL ASSETS UNDER MANAGEMENT	$	2,028		$	2,016		$	2,034	$	1,945		$	1,876		1		8		$	2,028		$	1,876		8

Private Banking	$	1,298		$	1,285		$	1,256	$	1,217		$	1,188		1		9		$	1,298		$	1,188		9
Institutional	956			958			990		941			909			—		5		956			909			5
Retail	545			545			543		520			501			—		9		545			501			9
TOTAL CLIENT ASSETS	$	2,799		$	2,788		$	2,789	$	2,678		$	2,598		—		8		$	2,799		$	2,598		8

Assets under management rollforward
Beginning balance	$	2,016		$	2,034		$	1,945	$	1,876		$	1,841						$	2,034		$	1,771
Net asset flows:
Liquidity	17			(21		)	10		5			(7		)					(4		)	(6		)
Fixed income	(7		)	(5		)	12		17			2							(12		)	7
Equity	2			5			1		(5		)	(3		)					7			(7		)
Multi-asset and alternatives	9			16			17		9			10							25			17
Market/performance/other impacts	(9		)	(13		)	49		43			33							(22		)	94
Ending balance	$	2,028		$	2,016		$	2,034	$	1,945		$	1,876						$	2,028		$	1,876

Client assets rollforward
Beginning balance	$	2,788		$	2,789		$	2,678	$	2,598		$	2,548						$	2,789		$	2,453
Net asset flows	11			14			56		25			2							25			12
Market/performance/other impacts	—			(15		)	55		55			48							(15		)	133
Ending balance	$	2,799		$	2,788		$	2,789	$	2,678		$	2,598						$	2,799		$	2,598


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

Page 22



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

	QUARTERLY TRENDS																			SIX MONTHS ENDED JUNE 30,
																2Q18 Change										2018 Change
	2Q18			1Q18			4Q17			3Q17			2Q17			1Q18		2Q17		2018			2017			2017
INCOME STATEMENT
REVENUE
Principal transactions	$	83		$	(144	)	$	123		$	(2	)	$	148		NM		(44	)%	$	(61	)	$	163		NM
Securities gains/(losses)	(80		)	(245		)	(29		)	—			(34		)	67		(135	)	(325		)	(37		)	NM
All other income (a)	139			204			28			111			667			(32	)	(79	)	343			728			(53	)
Noninterest revenue	142			(185		)	122			109			781			NM		(82	)	(43		)	854			NM
Net interest income	(62		)	(47		)	53			77			23			(32	)	NM		(109		)	(75		)	(45	)
TOTAL NET REVENUE (b)	80			(232		)	175			186			804			NM		(90	)	(152		)	779			NM

Provision for credit losses	(1		)	(4		)	—			—			—			75		NM		(5		)	—			NM

NONINTEREST EXPENSE (c)	279			87			146			74			183			221		52		366			281			30
Income/(loss) before income tax expense/(benefit)	(198		)	(315		)	29			112			621			37		NM		(513		)	498			NM
Income tax expense/(benefit) (d)	(62		)	68			2,355			34			51			NM		NM		6			(107		)	NM
NET INCOME/(LOSS)	$	(136	)	$	(383	)	$	(2,326	)	$	78		$	570		64		NM		$	(519	)	$	605		NM

MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”)	87			(38		)	222			265			86			NM		1		49			79			(38	)
Other Corporate	(7		)	(194		)	(47		)	(79		)	718			96		NM		(201		)	700			NM
TOTAL NET REVENUE	$	80		$	(232	)	$	175		$	186		$	804		NM		(90	)	$	(152	)	$	779		NM

NET INCOME/(LOSS)
Treasury and CIO	(153		)	(187		)	66			75			(14		)	18		NM		(340		)	(81		)	(320	)
Other Corporate	17			(196		)	(2,392		)	3			584			NM		(97	)	(179		)	686			NM
TOTAL NET INCOME/(LOSS)	$	(136	)	$	(383	)	$	(2,326	)	$	78		$	570		64		NM		$	(519	)	$	605		NM

SELECTED BALANCE SHEET DATA (period-end)
Total assets	$	746,716		$	779,962		$	781,478		$	804,573		$	817,754		(4	)	(9	)	$	746,716		$	817,754		(9	)
Loans	1,720			1,724			1,653			1,614			1,696			—		1		1,720			1,696			1
Core loans (e)	1,720			1,689			1,653			1,614			1,696			2		1		1,720			1,696			1

Headcount (f)	35,877			35,368			34,601			34,012			32,843			1		9		35,877			32,843			9

SUPPLEMENTAL INFORMATION
TREASURY and CIO
Securities gains	$	(80	)	$	(245	)	$	(29	)	$	—		$	(34	)	67	%	(135	)%	$	(325	)	$	(49	)	NM
Available-for-sale (“AFS”) investment securities (average) (g)	200,232			204,323			205,252			212,633			225,053			(2	)	(11	)	202,266			229,920			(12	)
Held-to-maturity (“HTM”) investment securities (average) (g)	30,304			34,020			47,115			47,034			48,232			(11	)	(37	)	32,152			48,794			(34	)
Investment securities portfolio (average)	$	230,536		$	238,343		$	252,367		$	259,667		$	273,285		(3	)	(16	)	$	234,418		$	278,714		(16	)
AFS investment securities (period-end) (g)	200,434			207,703			200,247			214,257			213,291			(3	)	(6	)	200,434			213,291			(6	)
HTM investment securities (period-end) (g)	31,006			29,042			47,733			47,079			47,761			7		(35	)	31,006			47,761			(35	)
Investment securities portfolio (period-end)	$	231,440		$	236,745		$	247,980		$	261,336		$	261,052		(2	)	(11	)	$	231,440		$	261,052		(11	)


(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 $95 million, $98 million, $224 million, $216 million, and $237 million for the three months ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, respectively and $193 million and $465 million for the six months ended June 30, 2018, and 2017, respectively.


(c)	Included legal expense/(benefit) of $(8) million, $(42) million, $(233) million, $(148) million and $16 million for the three months ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017, and June 30, 2017, respectively and $(50) million and $(212) million for the six months ended June 30, 2018, and 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 $1.7 billion, $1.6 billion, $1.7 billion, $1.7 billion, and $1.6 billion for the three months ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017, and June 30, 2017, respectively and $1.7 billion and $1.6 billion for the six months ended June 30, 2018, and 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 during the first quarter of 2018. Refer to note on page 28 for additional information.

Page 23



JPMORGAN CHASE & CO.
CREDIT-RELATED INFORMATION
(in millions)
														Jun 30, 2018
														Change
	Jun 30,		Mar 31,		Dec 31,			Sep 30,			Jun 30,			Mar 31,		Jun 30,
	2018		2018		2017			2017			2017			2018		2017
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained, excluding PCI loans	$	347,610	$	343,738	$	341,977		$	337,592		$	332,051		1	%	5	%
Loans - PCI	26,977		29,505		30,576			31,821			33,064			(9	)	(18	)
Total loans retained	374,587		373,243		372,553			369,413			365,115			—		3
Loans held-for-sale	110		152		128			188			256			(28	)	(57	)
Total consumer, excluding credit card loans	374,697		373,395		372,681			369,601			365,371			—		3

Credit card loans
Loans retained	145,221		140,348		149,387			141,200			140,035			3		4
Loans held-for-sale	34		66		124			113			106			(48	)	(68	)
Total credit card loans	145,255		140,414		149,511			141,313			140,141			3		4
Total consumer loans	519,952		513,809		522,192			510,914			505,512			1		3

Wholesale loans (b)
Loans retained	420,632		412,020		402,898			398,569			394,426			2		7
Loans held-for-sale and loans at fair value	7,830		8,595		5,607			4,278			8,829			(9	)	(11	)
Total wholesale loans	428,462		420,615		408,505			402,847			403,255			2		6

Total loans	948,414		934,424		930,697			913,761			908,767			1		4
Derivative receivables	58,510		56,914		56,523			58,260			56,506			3		4
Receivables from customers and other (c)	27,607		27,996		26,272			19,350			19,531			(1	)	41
Total credit-related assets	1,034,531		1,019,334		1,013,492			991,371			984,804			1		5

Lending-related commitments
Consumer, excluding credit card	51,784		49,516		48,553		(f)	52,796		(f)	53,872		(f)	5		(4	)
Credit card	592,452		588,232		572,831			574,641			576,264			1		3
Wholesale	401,757		384,275		370,098			372,380			366,498			5		10
Total lending-related commitments	1,045,993		1,022,023		991,482			999,817			996,634			2		5

Total credit exposure	$	2,080,524	$	2,041,357	$	2,004,974		$	1,991,188		$	1,981,438		2		5

Memo: Total by category
Consumer exposure (d)	$	1,164,341	$	1,151,698	$	1,143,709		$	1,138,483		$	1,135,784		1		3
Wholesale exposures (e)	916,183		889,659		861,265			852,705			845,654			3		8
Total credit exposure	$	2,080,524	$	2,041,357	$	2,004,974		$	1,991,188		$	1,981,438		2		5

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


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


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

Page 24



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

																Jun 30, 2018
																Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,		Jun 30,
	2018			2018			2017			2017			2017			2018		2017
NONPERFORMING ASSETS (a)
Consumer nonaccrual loans (b)(c)	$	3,979		$	4,260		$	4,209		$	4,161		$	4,226		(7	)	(6	)

Wholesale nonaccrual loans
Loans retained	1,156			1,594			1,734			1,470			1,634			(27	)	(29	)
Loans held-for-sale and loans at fair value	175			29			—			2			31			NM		465
Total wholesale nonaccrual loans	1,331			1,623			1,734			1,472			1,665			(18	)	(20	)

Total nonaccrual loans	5,310			5,883			5,943			5,633			5,891			(10	)	(10	)

Derivative receivables	112			132			130			164			170			(15	)	(34	)
Assets acquired in loan satisfactions	345			349			353			357			371			(1	)	(7	)
Total nonperforming assets	5,767			6,364			6,426			6,154			6,432			(9	)	(10	)
Wholesale lending-related commitments (d)	712			746			731			764			750			(5	)	(5	)
Total nonperforming exposure	$	6,479		$	7,110		$	7,157		$	6,918		$	7,182		(9	)	(10	)

NONACCRUAL LOAN-RELATED RATIOS
Total nonaccrual loans to total loans	0.56		%	0.63		%	0.64		%	0.62		%	0.65		%
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans	1.06			1.14			1.13			1.13			1.16
Total wholesale nonaccrual loans to total
wholesale loans	0.31			0.39			0.42			0.37			0.41

(a)

At June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017, and June 30, 2017, nonperforming assets excluded: (1) mortgage loans insured by U.S. government agencies of $3.3 billion, $4.0 billion, $4.3 billion, $4.0 billion and $4.1 billion, respectively, that are 90 or more days past due; and (2) real estate owned (“REO”) insured by U.S. government agencies of $84 million, $94 million, $95 million, $99 million and $105 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 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 and $33 million at June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, respectively.


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


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

Page 25



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

	QUARTERLY TRENDS																				SIX MONTHS ENDED JUNE 30,
																	2Q18 Change											2018 Change
	2Q18			1Q18			4Q17			3Q17				2Q17			1Q18		2Q17		2018			2017				2017
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	13,375		$	13,604		$	13,539		$	13,363			$	13,413		(2	)%	—	%	$	13,604		$	13,776			(1	)%
Net charge-offs:
Gross charge-offs	1,718			1,640			1,535			1,550				1,468			5		17		3,358			3,427				(2	)
Gross recoveries	(466		)	(305		)	(271		)	(285		)		(264		)	(53	)	(77	)	(771		)	(569		)		(36	)
Net charge-offs	1,252			1,335			1,264			1,265			(c)	1,204			(6	)	4		2,587			2,858				(9	)
Write-offs of PCI loans (a)	73			20			20			20				22			265		232		93			46				102
Provision for loan losses	1,199			1,127			1,349			1,460				1,175			6		2		2,326			2,491				(7	)
Other	1			(1		)	—			1				1			NM		—		—			—				—
Ending balance	$	13,250		$	13,375		$	13,604		$	13,539			$	13,363		(1	)	(1	)	$	13,250		$	13,363			(1	)

ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance	$	1,107		$	1,068		$	1,109		$	1,117			$	1,077		4		3		$	1,068		$	1,078			(1	)
Provision for lending-related commitments	11			38			(41		)	(8		)		40			(71	)	(73	)	49			39				26
Other	(1		)	1			—			—				—			NM		NM		—			—				—
Ending balance	$	1,117		$	1,107		$	1,068		$	1,109			$	1,117		1		—		$	1,117		$	1,117			—

Total allowance for credit losses	$	14,367		$	14,482		$	14,672		$	14,648			$	14,480		(1	)	(1	)	$	14,367		$	14,480			(1	)

NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans (b)	(0.06		)%	0.16		%	0.15		%	0.22		%		0.12		%					0.05		%	0.44		%	(d)
Credit card retained loans	3.27			3.32			2.97			2.87				3.01							3.30			2.98
Total consumer retained loans	0.86			1.04			0.94			0.95				0.92							0.95			1.14			(d)
Wholesale retained loans	0.14			0.02			0.05			0.04				0.06							0.08			0.02
Total retained loans	0.54			0.59			0.55			0.56			(c)	0.54							0.56			0.65			(d)
Consumer retained loans, excluding credit card and
PCI loans	(0.07		)	0.17			0.17			0.24				0.13							0.05			0.49			(d)
Consumer retained loans, excluding PCI loans	0.91			1.10			1.00			1.02				0.99							1.00			1.22			(d)
Total retained, excluding PCI loans	0.56			0.61			0.57			0.58			(c)	0.56							0.58			0.67			(d)

Memo: Average retained loans
Consumer retained, excluding credit card loans	$	374,377		$	372,739		$	371,068		$	367,411			$	362,551		—		3		$	373,562		$	364,316			3
Credit card retained loans	142,685			142,830			143,388			141,061				138,032			—		3		142,757			137,574				4
Total average retained consumer loans	517,062			515,569			514,456			508,472				500,583			—		3		516,319			501,890				3
Wholesale retained loans	414,980			404,859			398,795			395,420				392,257			2		6		409,949			387,339				6
Total average retained loans	$	932,042		$	920,428		$	913,251		$	903,892			$	892,840		1		4		$	926,268		$	889,229			4

Consumer retained, excluding credit card and
PCI loans	$	345,601		$	342,690		$	339,860		$	334,987			$	328,816		1		5		$	344,153		$	329,932			4
Consumer retained, excluding PCI loans	488,286			485,520			483,248			476,048				466,848			1		5		486,910			467,506				4
Total retained, excluding PCI loans	903,263			890,376			882,040			871,465				859,102			1		5		896,856			854,842				5


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


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


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

(d)

During the first quarter of 2017, the Firm transferred the student loan portfolio to held-for-sale, resulting in a write-down of the portfolio to the estimated fair value at the time of the transfer. For the six months ended June 30, 2017, excluding net charge-offs of $467 million related to the transfer, the net charge-off rate for Consumer retained, excluding credit card loans, would have been 0.18%; Total consumer retained loans would have been 0.95%; Total retained loans would have been 0.54%; Consumer retained, excluding credit card loans and PCI loans would have been 0.20%; Total consumer retained loans excluding PCI loans would have been 1.02%; and Total retained, excluding PCI loans would have been 0.56%.

Page 26



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

																Jun 30, 2018
																Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,		Jun 30,
	2018			2018			2017			2017			2017			2018		2017
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)	$	226		$	266		$	246		$	271		$	296		(15	)%	(24	)%
Formula-based	2,130			2,089			2,108			2,266			2,239			2		(5	)
PCI	2,132			2,205			2,225			2,245			2,265			(3	)	(6	)
Total consumer, excluding credit card	4,488			4,560			4,579			4,782			4,800			(2	)	(7	)
Credit card
Asset-specific (b)	402			393			383			376			370			2		9
Formula-based	4,482			4,491			4,501			4,308			4,014			—		12
Total credit card	4,884			4,884			4,884			4,684			4,384			—		11
Total consumer	9,372			9,444			9,463			9,466			9,184			(1	)	2
Wholesale
Asset-specific (a)	318			474			461			363			345			(33	)	(8	)
Formula-based	3,560			3,457			3,680			3,710			3,834			3		(7	)
Total wholesale	3,878			3,931			4,141			4,073			4,179			(1	)	(7	)
Total allowance for loan losses	13,250			13,375			13,604			13,539			13,363			(1	)	(1	)
Allowance for lending-related commitments	1,117			1,107			1,068			1,109			1,117			1		—
Total allowance for credit losses	$	14,367		$	14,482		$	14,672		$	14,648		$	14,480		(1	)	(1	)

CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	1.20		%	1.22		%	1.23		%	1.29		%	1.31		%
Credit card allowance to total credit card retained loans	3.36			3.48			3.27			3.32			3.13
Wholesale allowance to total wholesale retained loans	0.92			0.95			1.03			1.02			1.06
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (c)	1.00			1.04			1.12			1.12			1.17
Total allowance to total retained loans	1.41			1.44			1.47			1.49			1.49
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	113			108			109			115			114
Total allowance, excluding credit card allowance, to retained
nonaccrual loans, excluding credit card nonaccrual loans (d)	163			146			147			157			154
Wholesale allowance to wholesale retained nonaccrual loans	335			247			239			277			256
Total allowance to total retained nonaccrual loans	258			230			229			241			229

CREDIT RATIOS, excluding PCI loans
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans	0.68			0.69			0.69			0.75			0.76
Total allowance to total retained loans	1.22			1.25			1.27			1.29			1.28
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (d)	59			56			56			61			60
Allowance, excluding credit card allowance, to retained non-
accrual loans, excluding credit card nonaccrual loans (d)	121			108			109			117			115
Total allowance to total retained nonaccrual loans	217			192			191			201			190


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


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


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


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

Page 27

JPMORGAN CHASE & CO.

NOTES INCLUDING NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES

Non-GAAP Financial Measures

(a)

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

(b)

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

(c)

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


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

Key Performance Measures


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

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

(a)

Effective January 1, 2018, the Firm adopted several new accounting standards. Certain of the new accounting standards were applied retrospectively and prior period amounts were revised accordingly; the most significant of which was revenue recognition. The revenue recognition guidance requires gross presentation of certain costs that were previously offset against revenue. This change resulted in both noninterest revenue and noninterest expense increasing by $304 million, $252 million and $261 million for the three months ended December 31, 2017, September 30, 2017 and June 30, 2017, respectively, and $525 million for the six months ended June 30, 2017, with no impact to net income. For additional information, including the impacts of each of the new accounting standards, see pages 29-30 of the Firm’s Earnings Release Financial Supplement for the quarterly period ended March 31, 2018.

Page 28

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