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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly report pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarterly period endedCommission file
June 30, 2018number 1-5805

June 30, 2019 number 1-5805
JPMorgan Chase & Co.Co.
(Exact name of registrant as specified in its charter)
Delaware13-2624428
(State or other jurisdiction of
incorporation or organization)
(I.R.S. employer
identification no.)
  
270 Park Avenue, New York, New York10017
(Address of principal executive offices)(Zip Code)
  
383 Madison Avenue, New York, New York10179
(Address of principal executive offices) (Zip Code)

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

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stockJPMThe New York Stock Exchange
Depositary Shares representing interests in shares of 5.45% Non-Cumulative Preferred Stock Series PJPM PR AThe New York Stock Exchange
Depositary Shares representing interests in shares of 6.30% Non-Cumulative Preferred Stock Series WJPM PR EThe New York Stock Exchange
Depositary Shares representing interests in shares of 6.125% Non-Cumulative Preferred Stock Series YJPM PR FThe New York Stock Exchange
Depositary Shares representing interests in shares of 6.10% Non-Cumulative Preferred Stock Series AAJPM PR GThe New York Stock Exchange
Depositary Shares representing interests in shares of 6.15% Non-Cumulative Preferred Stock Series BBJPM PR HThe New York Stock Exchange
Depositary Shares representing interests in shares of 5.75% Non-Cumulative Preferred Stock Series DDJPM PR DThe New York Stock Exchange
Depositary Shares representing interests in shares of 6.00% Non-Cumulative Preferred Stock Series EEJPM PR CThe New York Stock Exchange
Alerian MLP Index ETNs due May 24, 2024AMJNYSE Arca, Inc.
Guarantee of Callable Step-Up FRNs due April 26, 2028 of JPMorgan Chase Financial Company LLCJPM/28The New York Stock Exchange
Guarantee of Cushing 30 MLP Index ETNs due June 15, 2037 of JPMorgan Chase Financial Company LLCPPLNNYSE Arca, Inc.
Indicate by check mark whether the registrant (1) has filed all reportsrequired to be filed by Section 13 or 15(d) of the Securities Exchange Act of1934 during the preceding 12 months (or for such shorter period that theregistrant was required to file such reports), and (2) has been subject to suchfiling requirements for the past 90 days.☒Yes☐No
xYes
oNo

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
xYes
oNo
☒Yes☐No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerx
☒

Accelerated filero☐
   
Non-accelerated filer(Do not check if a smaller reporting company)o
☐Smaller reporting companyo☐
   
 Emerging growth companyo☐
   
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o☐
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).☐Yes☒No
oYes
xNo

 
Number of shares of common stock outstanding as of June 30, 2018: 3,360,884,1072019: 3,197,484,989
 



FORM 10-Q
TABLE OF CONTENTS
Part I – Financial information
Page
Item 1.
Financial Statements.
 
 
Consolidated Financial Statements – JPMorgan Chase & Co.:
 
 
Consolidated statements of income (unaudited) for the three and six months ended June 30, 20182019 and 20172018
8480
 
Consolidated statements of comprehensive income (unaudited) for the three and six months ended June 30, 20182019 and 20172018
8581
 
Consolidated balance sheets (unaudited) at June 30, 2018,2019 and December 31, 20172018
8682
 
Consolidated statements of changes in stockholders’ equity (unaudited) for the three and six months ended June 30, 20182019 and 20172018
8783
 
Consolidated statements of cash flows (unaudited) for the six months ended June 30, 20182019 and 20172018
8884
 
Notes to Consolidated Financial Statements (unaudited)
8985
 
Report of Independent Registered Public Accounting Firm
169165
 
Consolidated Average Balance Sheets, Interest and Rates (unaudited) for the three and six months ended June 30, 20182019 and 20172018
170166
 
Glossary of Terms and Acronyms and Line of Business Metrics
172168
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
 
 
Consolidated Financial Highlights
3
 
Introduction
4
 
Executive Overview
5
 
Consolidated Results of Operations
710
 
Consolidated Balance Sheets and Cash Flows Analysis
1115
 
Off-Balance Sheet Arrangements
1418
 
Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures and Key Performance Measures
1519
 
Business Segment Results
1821
 
Enterprise-Wide Risk Management
41
Capital Risk Management
43
 
LiquidityCapital Risk Management
4844
 
Liquidity Risk Management
49
Consumer Credit Portfolio
55
 
Wholesale Credit Portfolio
60
 
Investment Portfolio Risk Management
69
Market Risk Management
70
 
MarketCountry Risk Management
7175
 
Country Risk ManagementCritical Accounting Estimates Used by the Firm
76
 
Critical Accounting Estimates Used by the Firmand Reporting Developments
7778
 
Accounting and Reporting DevelopmentsForward-Looking Statements
80
Forward-Looking Statements
8379
Item 3.
Quantitative and Qualitative Disclosures About Market Risk.
180176
Item 4.
Controls and Procedures.
180176
Part II – Other information
 
Item 1.
Legal Proceedings.
180176
Item 1A.
Risk Factors.
180176
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds.
180176
Item 3.
Defaults Upon Senior Securities.
181177
Item 4.
Mine Safety Disclosures.
181177
Item 5.
Other Information.
181177
Item 6.
Exhibits.
181177




JPMorgan Chase & Co.
Consolidated financial highlights (unaudited)
(unaudited)
As of or for the period ended, (in millions, except per share, ratio, headcount data and where otherwise noted)

       Six months ended June 30, 
2Q18
1Q18
4Q17
3Q17
 2Q17
 2018
2017
 
Selected income statement data          
Total net revenue$27,753
$27,907
$24,457
$25,578
 $25,731
 $55,660
$50,670
 
Total noninterest expense15,971
16,080
14,895
14,570
 14,767
 32,051
30,050
 
Pre-provision profit11,782
11,827
9,562
11,008
 10,964
 23,609
20,620
 
Provision for credit losses1,210
1,165
1,308
1,452
 1,215
 2,375
2,530
 
Income before income tax expense10,572
10,662
8,254
9,556
 9,749
 21,234
18,090
 
Income tax expense2,256
1,950
4,022
2,824
 2,720
 4,206
4,613
 
Net income$8,316
$8,712
$4,232
$6,732
 $7,029
 $17,028
$13,477
 
Earnings per share data          
Net income:    Basic$2.31
$2.38
$1.08
$1.77
 $1.83
 $4.69
$3.49
 
 Diluted2.29
2.37
1.07
1.76
 1.82
 4.66
3.47
 
Average shares: Basic3,415.2
3,458.3
3,489.7
3,534.7
 3,574.1
 3,436.7
3,587.9
 
 Diluted3,434.7
3,479.5
3,512.2
3,559.6
 3,599.0
 3,457.1
3,614.7
 
Market and per common share data          
Market capitalization350,204
374,423
366,301
331,393
 321,633
 350,204
321,633
 
Common shares at period-end3,360.9
3,404.8
3,425.3
3,469.7
 3,519.0
 3,360.9
3,519.0
 
Share price:(a)
          
High$115.15
$119.33
$108.46
$95.88
 $92.65
 $119.33
$93.98
 
Low103.11
103.98
94.96
88.08
 81.64
 103.11
81.64
 
Close104.20
109.97
106.94
95.51
 91.40
 104.20
91.40
 
Book value per share68.85
67.59
67.04
66.95
 66.05
 68.85
66.05
 
Tangible book value per share (“TBVPS”)(b)
55.14
54.05
53.56
54.03
 53.29
 55.14
53.29
 
Cash dividends declared per share0.56
0.56
0.56
0.56
 0.50
 1.12
1.00
 
Selected ratios and metrics          
Return on common equity (“ROE”) (c)
14%15%7%11% 12% 14%11% 
Return on tangible common equity (“ROTCE”)(b)(c)
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
 
Overhead ratio58
58
61
57
 57
 58
59
 
Loans-to-deposits ratio65
63
64
63
 63
 65
63
 
Liquidity coverage ratio (“LCR”) (average)(d)
115
115
119
120
 115
 115
115
 
Common equity Tier 1 (“CET1”) capital ratio(e)
12.0
11.8
12.2
12.5
(h)12.5
(h)12.0
12.5
(h)
Tier 1 capital ratio(e)
13.6
13.5
13.9
14.1
(h)14.2
(h)13.6
14.2
(h)
Total capital ratio(e)
15.5
15.3
15.9
16.1
 16.0
 15.5
16.0
 
Tier 1 leverage ratio(e)
8.2
8.2
8.3
8.4
 8.5
 8.2
8.5
 
Supplementary leverage ratio (“SLR”)(f)
6.5
6.5
6.5
6.6
 6.7
 6.5
6.7
 
Selected balance sheet data (period-end)          
Trading assets$418,799
$412,282
$381,844
$420,418
 $407,064
 $418,799
$407,064
 
Investment securities233,015
238,188
249,958
263,288
 263,458
 233,015
263,458
 
Loans948,414
934,424
930,697
913,761
 908,767
 948,414
908,767
 
Core loans889,433
870,536
863,683
843,432
 834,935
 889,433
834,935
 
Average core loans877,640
861,089
850,166
837,522
 824,583
 869,410
815,034
 
Total assets2,590,050
2,609,785
2,533,600
2,563,074
 2,563,174
 2,590,050
2,563,174
 
Deposits1,452,122
1,486,961
1,443,982
1,439,027
 1,439,473
 1,452,122
1,439,473
 
Long-term debt273,114
274,449
284,080
288,582
 292,973
 273,114
292,973
 
Common stockholders’ equity231,390
230,133
229,625
232,314
 232,415
 231,390
232,415
 
Total stockholders’ equity257,458
256,201
255,693
258,382
 258,483
 257,458
258,483
 
Headcount252,942
253,707
252,539
251,503
 249,257
 252,942
249,257
 
Credit quality metrics          
Allowance for credit losses$14,367
$14,482
$14,672
$14,648
 $14,480
 $14,367
$14,480
 
Allowance for loan losses to total retained loans1.41%1.44%1.47%1.49% 1.49% 1.41%1.49% 
Allowance for loan losses to retained loans excluding purchased credit-impaired loans(g)
1.22
1.25
1.27
1.29
 1.28
 1.22
1.28
 
Nonperforming assets$5,767
$6,364
$6,426
$6,154
 $6,432
 $5,767
$6,432
 
Net charge-offs1,252
1,335
1,264
1,265
 1,204
 2,587
2,858
(i)
Net charge-off rate0.54%0.59%0.55%0.56% 0.54% 0.56%0.65%(i)
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. For additional information, refer to Note 1.
As of or for the period ended, (in millions, except per share,
ratio, headcount data and where otherwise noted)

      Six months ended June 30, 
2Q19
1Q19
4Q18
3Q18
2Q18
 2019
2018
 
Selected income statement data         
Total net revenue$28,832
$29,123
$26,109
$27,260
$27,753
 $57,955
$55,660
 
Total noninterest expense16,341
16,395
15,720
15,623
15,971
 32,736
32,051
 
Pre-provision profit12,491
12,728
10,389
11,637
11,782
 25,219
23,609
 
Provision for credit losses1,149
1,495
1,548
948
1,210
 2,644
2,375
 
Income before income tax expense11,342
11,233
8,841
10,689
10,572
 22,575
21,234
 
Income tax expense1,690
2,054
1,775
2,309
2,256
 3,744
4,206
 
Net income$9,652
$9,179
$7,066
$8,380
$8,316
 $18,831
$17,028
 
Earnings per share data         
Net income:    Basic$2.83
$2.65
$1.99
$2.35
$2.31
 $5.48
$4.69
 
 Diluted2.82
2.65
1.98
2.34
2.29
 5.46
4.66
 
Average shares: Basic3,250.6
3,298.0
3,335.8
3,376.1
3,415.2
 3,274.3
3,436.7
 
 Diluted3,259.7
3,308.2
3,347.3
3,394.3
3,434.7
 3,283.9
3,457.1
 
Market and per common share data         
Market capitalization357,479
328,387
319,780
375,239
350,204
 357,479
350,204
 
Common shares at period-end3,197.5
3,244.0
3,275.8
3,325.4
3,360.9
 3,197.5
3,360.9
 
Book value per share73.88
71.78
70.35
69.52
68.85
 73.88
68.85
 
Tangible book value per share (“TBVPS”)(a)
59.52
57.62
56.33
55.68
55.14
 59.52
55.14
 
Cash dividends declared per share0.80
0.80
0.80
0.80
0.56
 1.60
1.12
 
Selected ratios and metrics         
Return on common equity (“ROE”)(b)
16%16%12%14%14% 16%14% 
Return on tangible common equity (“ROTCE”)(a)(b)
20
19
14
17
17
 20
18
 
Return on assets(b)
1.41
1.39
1.06
1.28
1.28
 1.40
1.32
 
Overhead ratio57
56
60
57
58
 56
58
 
Loans-to-deposits ratio63
64
67
65
65
 63
65
 
Liquidity coverage ratio (“LCR”) (average)113
111
113
115
115
 113
115
 
Common equity Tier 1 (“CET1”) capital ratio(c)
12.2
12.1
12.0
12.0
12.0
 12.2
12.0
 
Tier 1 capital ratio(c)
14.0
13.8
13.7
13.6
13.6
 14.0
13.6
 
Total capital ratio(c)
15.8
15.7
15.5
15.4
15.5
 15.8
15.5
 
Tier 1 leverage ratio(c)
8.0
8.1
8.1
8.2
8.2
 8.0
8.2
 
Supplementary leverage ratio (“SLR”)6.4
6.4
6.4
6.5
6.5
 6.4
6.5
 
Selected balance sheet data (period-end)         
Trading assets$523,373
$533,402
$413,714
$419,827
$418,799
 $523,373
$418,799
 
Investment securities307,264
267,365
261,828
231,398
233,015
 307,264
233,015
 
Loans956,889
956,245
984,554
954,318
948,414
 956,889
948,414
 
Core loans908,971
905,943
931,856
899,006
889,433
 908,971
889,433
 
Average core loans905,786
916,567
907,271
894,279
877,640
 911,146
869,410
 
Total assets2,727,379
2,737,188
2,622,532
2,615,183
2,590,050
 2,727,379
2,590,050
 
Deposits1,524,361
1,493,441
1,470,666
1,458,762
1,452,122
 1,524,361
1,452,122
 
Long-term debt288,869
290,893
282,031
270,124
273,114
 288,869
273,114
 
Common stockholders’ equity236,222
232,844
230,447
231,192
231,390
 236,222
231,390
 
Total stockholders’ equity263,215
259,837
256,515
258,956
257,458
 263,215
257,458
 
Headcount254,983
255,998
256,105
255,313
252,942
 254,983
252,942
 
Credit quality metrics         
Allowance for credit losses$14,295
$14,591
$14,500
$14,225
$14,367
 $14,295
$14,367
 
Allowance for loan losses to total retained loans1.39%1.43%1.39%1.39%1.41% 1.39%1.41% 
Allowance for loan losses to retained loans excluding purchased credit-impaired loans(d)
1.28
1.28
1.23
1.23
1.22
 1.28
1.22
 
Nonperforming assets$5,260
$5,616
$5,190
$5,034
$5,767
 $5,260
$5,767
 
Net charge-offs1,403
1,361
1,236
1,033
1,252
 2,764
2,587
 
Net charge-off rate0.60%0.58%0.52%0.43%0.54% 0.59%0.56% 
(a)Based on daily prices reported by the New York Stock Exchange.
(b)TBVPS and ROTCE are non-GAAP financial measures. For a further discussion of these measures, refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures and Key Performance Measures on pages 15–17.19–20.
(c)(b)Quarterly ratios are based upon annualized amounts.
(d)(c)The Basel III capital rules became fully phased-in effective January 1, 2019. During 2018, the required capital measures were subject to the transitional rules and as of December 31, 2018 and September 30, 2018, were the same on a fully phased-in and on a transitional basis. For the six months ended June 30, 2017, the balance represents the Firm’s reported average LCR per the U.S. LCR public disclosure requirements effective April 1, 2017.  additional information on these measures, refer to Capital Risk Management on pages 85-94 of JPMorgan Chase’s 2018 Form 10-K and pages 44–48 of this Form 10-Q.
(e)(d)Ratios presented are calculated under the Basel III Transitional capital rules and for the capital ratios represent the lower of the Standardized or Advanced approach as required by the Collins Amendment of the Dodd-Frank Act (the “Collins Floor”). Refer to Capital Risk Management on pages 43–47 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)ExcludedExcludes the impact of residential real estate purchased credit-impaired (“PCI”) loans, a non-GAAP financial measure. For a further discussion of these measures, refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures and Key Performance Measures on pages 15–17. For a further discussion, refer to19–20, and the Allowance for credit losses on pages 67–69.68.
(h)The prior period ratios have been revised to conform with the current period presentation.
(i)Excluding net charge-offs of $467 million related to the student loan portfolio sale, the net charge-off rates for the six months ended June 30, 2017 would have been 0.54%.


INTRODUCTION
The following is management’sManagement’s discussion and analysis (“MD&A”) of the financial condition and results of operations (“MD&A”) of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) for the second quarter of 2018.2019.
This Quarterly Report on Form 10-Q for the second quarter of 2019 (“Form 10-Q”) should be read together with JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 20172018 (“2017 Annual Report” or “20172018 Form 10-K”), to which reference is hereby made, and which is referred to throughout this document.Form 10-Q. Refer to the Glossary of terms and acronyms and line of business metrics on pages 172–179168–175 for definitions of terms and acronyms used throughout this Form 10-Q.
The MD&A included in this Form 10-QThis document contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. For a further discussion of certain of those risks and uncertainties and the factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties, refer to Forward-looking Statements on page 8379 of this Form 10-Q and Part I, Item 1A, Risk Factors,factors, on pages 8–267–28 of JPMorgan Chase’s 2017 Annual Report.the 2018 Form 10-K.
JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading global financial services firm and one of the largest banking institutions in the United States of America (“U.S.”), with operations worldwide; the FirmJPMorgan Chase had $2.6$2.7 trillion in assets and $257.5$263.2 billion in stockholders’ equity as of June 30, 2018.2019. The Firm is a leader in investment banking, financial services for consumers and
 
services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S. and many of the world’s most prominent corporate, institutional and government clients.
JPMorgan Chase’s principal bank subsidiaries aresubsidiary is JPMorgan Chase Bank, National Association (“(“JPMorgan Chase Bank, N.A.”), a national banking association with U.S. branches in 2328 states and Chase Bank USA, National Association (“Chase Bank USA, N.A.”), a national banking association that is the Firm’s principal credit card-issuing bank.Washington, D.C. as of June 30, 2019. JPMorgan Chase’s principal nonbank subsidiary is J.P. Morgan Securities LLC (“(“J.P. Morgan Securities”Securities”), a U.S. broker-dealer. The bank and non-bank subsidiaries of JPMorgan Chase operate nationally as well as through overseas branches and subsidiaries, representative offices and representative offices.subsidiary foreign banks. The Firm’s principal operating subsidiary in the United Kingdom (“U.K.”) is J.P. Morgan Securities plc, a subsidiary of JPMorgan Chase Bank, N.A.

For management reporting purposes, the Firm’s activities are organized into four major reportable business segments, as well as a Corporate segment. The Firm’s consumer business segment is the Consumer & Community Banking (“CCB”). The Firm’s wholesale business segments are Corporate & Investment Bank (“CIB”), Commercial Banking (“CB”), and Asset & Wealth Management (“AWM”). For a description of the Firm’s business segments and the products and services they provide to their respective
client bases, refer to Note 31 of JPMorgan Chase’s 20172018 Form 10-K.








EXECUTIVE OVERVIEW
This executive overview of the MD&A highlights selected information and maydoes not contain all of the information that is important to readers of this Form 10-Q. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm and its various lines of business, this Form 10-Q and and the 20172018 Form 10-K should be read together and in their entirety.
Effective January 1, 2018, the Firm adopted several new accounting standards, of which the most significant to the Firm are the guidance related to revenue recognition, and recognition and measurement of financial assets. The revenue recognition guidance required gross presentation of certain costs that were previously offset against revenue. This change was adopted retrospectively and, accordingly, prior period amounts were revised, resulting in both total net revenue and total noninterest expense increasing with no impact to net income. The adoption of the recognition and measurement guidance resulted in $505 million of fair value gains, which were recorded in total net revenue in the first quarter of 2018, on certain equity investments that were previously held at cost. For additional information, refer to Note 1.
Financial performance of JPMorgan ChaseFinancial performance of JPMorgan Chase        Financial performance of JPMorgan Chase        
(unaudited)
As of or for the period ended,
(in millions, except per share data and ratios)
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
2018
 2017
 Change
 2018
 2017
 Change
2019
 2018
 Change
 2019
 2018
 Change
Selected income statement data                      
Total net revenue$27,753
 $25,731
 8 % $55,660
 $50,670
 10 %$28,832
 $27,753
 4 % $57,955
 $55,660
 4%
Total noninterest expense15,971
 14,767
 8
 32,051
 30,050
 7
16,341
 15,971
 2
 32,736
 32,051
 2
Pre-provision profit11,782
 10,964
 7
 23,609
 20,620
 14
12,491
 11,782
 6
 25,219
 23,609
 7
Provision for credit losses1,210
 1,215
 —
 2,375
 2,530
 (6)1,149
 1,210
 (5) 2,644
 2,375
 11
Net income8,316
 7,029
 18
 17,028
 13,477
 26
9,652
 8,316
 16
 18,831
 17,028
 11
Diluted earnings per share$2.29
 $1.82
 26
 $4.66
 $3.47
 34
$2.82
 $2.29
 23
 $5.46
 $4.66
 17
Selected ratios and metrics                      
Return on common equity14% 12%   14% 11%  16% 14%   16% 14%  
Return on tangible common equity17
 14
   18
 14
  20
 17
   20
 18
  
Book value per share$68.85
 $66.05
 4
 $68.85
 $66.05
 4
$73.88
 $68.85
 7
 $73.88
 $68.85
 7
Tangible book value per share55.14
 53.29
 3
 55.14
 53.29
 3
59.52
 55.14
 8
 59.52
 55.14
 8
Capital ratios(a)
                      
CET1(b)
12.0% 12.5%   12.0% 12.5%  12.2% 12.0%   12.2% 12.0%  
Tier 1 capital(b)
13.6
 14.2
   13.6
 14.2
  14.0
 13.6
   14.0
 13.6
  
Total capital15.5
 16.0
   15.5
 16.0
  15.8
 15.5
   15.8
 15.5
  
(a)Ratios presented are calculated under theThe Basel III Transitional capital rules and representbecame fully phased-in effective January 1, 2019. During 2018, the Collins Floor. Referrequired capital measures were subject to the transitional rules. For additional information on these measures, refer to Capital Risk Management on pages 43–47 for additional information on Basel III.
(b)The prior period ratios have been revised to conform with the current period presentation.85-94 of JPMorgan Chase’s 2018 Form 10-K and pages 44–48 of this Form 10-Q.









Comparisons noted in the sections below are calculated for the second quarter of 20182019 versus the second quarter of 2017,2018, unless otherwise specified.
Firmwide overview
JPMorgan Chase reported strong results in the second quarter of 20182019, with record net income of $8.3$9.7 billion, or $2.29$2.82 per share, on net revenue of $27.8$28.8 billion. The Firm reported ROE of 14%16% and ROTCE of 17%20%.
NetThe Firm had record net income increased 18%of $9.7 billion, up 16%, reflectingwhich reflects income tax benefits of $768 million related to the resolution of certain tax audits, higher net revenue and the impact of the lower U.S. federal statutory income tax rate as a result of the Tax Cuts & Jobs Acts (“TCJA”),credit costs, partially offset by an increase in noninterest expense.
•
Total net revenue increased 4%. Net interest income was $14.4 billion, up 7%, driven by balance sheet growth and mix, as well as the impact of higher rates. Noninterest revenue was $14.4 billion, up 1%, driven by several notable items, including:
–a gain from the IPO of a strategic investment in Tradeweb, and
–the impact of the prior-year adjustment of approximately $330 million to the credit card rewards liability
predominantly offset by
–MSR adjustments reflecting updates to model inputs, and
–net valuation losses on certain legacy private equity investments compared with net gains in the prior year.
Excluding these items, noninterest revenue increased 8%. Net interest income was $13.5relatively flat, with strength in CCB, offset by lower investment banking fees in the CIB and CB, as well as lower Markets noninterest revenue.
Noninterest expense was $16.3 billion, up 10%2%, predominantly driven by continued investments in the impact ofbusiness and higher rates and loan growth,auto lease depreciation, partially offset by lower Markets net interest income. Noninterest revenue was $14.3 billion, up 6%, driven by higher Markets revenue, investment banking fees and auto lease income, partially offset by lower Card net interchange income. Card net interchange income includes a rewards liability adjustment of approximately $330 million, driven by an increase in redemption rate assumptions, partially offset by higher card sales volumes.
Noninterest expense was $16.0 billion, up 8%, driven by higher performance-related compensation expense, investments in technology, auto lease depreciation, volume-related transaction costs, and a loss of $174 million on the liquidation of a legal entity.FDIC charges.
The provision for credit losses was $1.2$1.1 billion, flat compared with the prior year.down 5%.
The total allowance for credit losses was $14.4$14.3 billion at June 30, 2018,2019, and the Firm had a loan loss coverage ratio of 1.39%, compared with 1.41% in the prior year; excluding the PCI portfolio, of 1.22%the equivalent ratio was 1.28%, compared with 1.28%1.22% in the prior year. The Firm’s nonperforming assets totaled $5.8$5.3 billion at June 30, 2018,2019, a decrease from $6.4$5.8 billion in the prior year.year, reflecting improved credit performance in the consumer portfolio.
Firmwide average coretotal loans increased 6%, and excluding CIB, core loans increased 7%were $954.9 billion, up 2%.
Selected capital-related metrics
The Firm’s Basel III Fully Phased-In CET1 capital was $185$189 billion, and the Standardized and Advanced CET1 ratios were 12.0%12.2% and 12.8%13.1%, respectively.
The Firm’s fully phased-in SLRsupplementary leverage ratio (“SLR”) was 6.5%6.4% at June 30, 2018.2019.
The Firm continued to grow tangible book value per share (“TBVPS”), ending the second quarter of 20182019 at $55.14,$59.52, up 3%8%.
ROTCE and TBVPS are each non-GAAP financial measures. Core loans and each of the Fully Phased-In capital and certain leverage measures are all considered key performance measures. For a further discussion of each of these measures, refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures and Key PerformancePerformance Measures on pages 15–17, and Capital Risk Management on pages 43–47.19–20.


Lines of business
Business segment highlights
Selected business metrics for each of the Firm’s four lines of business are presented below for the second quarter of 2018.2019.
CCB
ROE 26%31%
 
•
Average coreloans down 2%; Home Lending loans down 7% impacted by loan sales; credit card loans up 7%; average deposits
up 5%8%
•
Client investment assets of $284 billion, up 12%16%; average deposits up 3%
•
Credit card sales volume up 11% and merchant processing volume up 12%
CIB
ROE 14%
•
Maintained #1 ranking for Global Investment Banking fees with 9.2% wallet share YTD
•
Total Markets revenue of $5.4 billion was flat, or down 6% adjusted(a)
CB
ROE 17%
 
•
#1 GlobalGross Investment Banking fees with 8.6% wallet share year-to-daterevenue of $592 million
•
Markets revenue up 13%, with Equity Markets revenue of $2.0 billion, up 24%
•
Treasury Services and Securities Services revenue each up 12%
CB
ROE 21%
•
Average loan balances up 4%
•
Strong credit qualityperformance with 7net charge-offs of 3 bps net charge-off rate
AWM
ROE 33%27%
 
•
Average loan balances up 12%7%
•
Assets under management (“AUM”)(AUM) of $2.0$2.2 trillion, up 8%7%
(a) Adjusted Markets revenue excludes a gain from the IPO of a strategic investment in Tradeweb.
For a detailed discussion of results by line of business segment, refer to the Business Segment Results on pages 18–40.21–42.
Credit provided and capital raised
JPMorgan Chase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital of $1.4 trillion for wholesale and consumer clients during the first six months of 2018:2019, consisting of:
$114 billion of credit for consumers
$11 billion of
$1.1 trillionTotal credit provided and capital raised
$119
billion
Credit for consumers
$14
billion
Credit for U.S. small businesses
$435 billionCredit for corporations
$547 billionCapital raised for corporate clients and non-U.S. government entities
$34 billion
Credit and capital raised for nonprofit and U.S. government entities(a)
(a)Includes states, municipalities, hospitals and universities.
$470 billion of credit for corporations
$743 billion of capital raised for corporate clients and non-U.S. government entities
$26 billion of credit and capital raised for U.S. government and nonprofit entities, including states, municipalities, hospitals and universities.
Recent events
On July 24, 2019, JPMorgan Chase acquired InstaMed, a leading U.S. healthcare technology company that specializes in healthcare payments.
On July 10, 2019, JPMorgan Chase announced the launch of You Invest Portfolios, a new digital investing solution.
On June 28, 2018,27, 2019, the Federal Reserve informed the Firm that it did not object on either a quantitative or qualitative basis, to the Firm’s 20182019 capital plan, submitted under the Comprehensive Capital Analysis and Review (“CCAR”). As a result, the Firm announced that the Board of Directors intends to increase the quarterly common stock dividend to $0.80$0.90 per share (up from the current $0.56$0.80 per share), effective the third quarter of 20182019 and has authorized gross common equity repurchases of up to $20.7$29.4 billion between July 1, 20182019 and June 30, 20192020 under a new common equity repurchase program.
2018On June 26, 2019, JPMorgan Chase announced that it will expand the Firm’s investment in Detroit’s economic recovery, committing to reach $200 million by the end of 2022. The announcement comes as the Firm exceeded its initial five year $150 million commitment.
On May 18, 2019, Chase Bank USA, National Association (“Chase Bank USA, N.A.”), a national bank which was the Firm’s principal credit card-issuing bank, merged with and into JPMorgan Chase Bank, N.A., with JPMorgan Chase Bank, N.A. as the surviving bank.

2019 outlook
AtThese current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management and are subject to significant risks and uncertainties. For a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties, refer to Forward-Looking Statements on page 79 of this timeForm 10-Q and Risk Factors on pages 7–28 of JPMorgan Chase’s 2018 Annual Report. There is no assurance that actual results in the full year of 2019 will be in line with the outlook set forth below, and the Firm does not undertake to update any forward-looking statements.
JPMorgan Chase’s current outlook for the remainder of 2019 should be viewed against the backdrop of the global and U.S. economies, financial markets activity, the geopolitical environment, the competitive environment, client and customer activity levels, and regulatory and legislative developments in the U.S. and other countries where the Firm does business. Each of these factors will affect the performance of the Firm and its lines of business. The Firm expects that it will continue to make appropriate adjustments to its businesses and operations in response to ongoing developments in the legal, regulatory, business and economic environments in which it operates.
Firmwide
Management expects full-year 2019 net interest income, on a managed basis, to be $57.5 billion +/-, market dependent. This range reflects lower long-end rates and up to three federal funds rate cuts of 25bps each in July, September, and December 2019 by the Federal Reserve.
The Firm takes a disciplined approach to managing its expenses, while investing for growth and innovation. As a result, management expects Firmwide adjusted expense for the full-year 2019 to be less than $66 billion.
The Firm continues to experience charge-off rates at very low levels as credit trends across the consumer and wholesale portfolios remain favorable. Management expects full-year 2019 net charge-offs to be approximately $5.5 billion.


Business Developments
Expected departure of the U.K. from the EU
The U.K.’s expected departure from the EU, which is commonly referred to as “Brexit,” is scheduled to occur not later than October 31, 2019.
The Firm continues to execute the relevant elements of its Firmwide Brexit Implementation program with the objective of delivering the Firm’s capabilities to its EU clients on “day one” of any departure by the U.K. from the EU, whether or not an agreement has been reached to allow an orderly withdrawal.
The principal operational risks associated with Brexit continue to be the potential for disruption caused by insufficient preparations by individual market participants or in the overall market ecosystem, and risks related to potential disruptions of connectivity among market participants. Although legislative and regulatory actions taken by the EU and the U.K. have mitigated some of the significant market-wide risks, there continues to be regulatory and legal uncertainty with respect to various matters including contract continuity and access by market participants to liquidity in certain products, such as products subject to potentially conflicting U.K. and EU regulatory requirements in relation to eligible trading venues, including certain cross-border derivative contracts and equities that are listed on both U.K. and EU exchanges.
As discussed in Business Developments on page 46 of the 2018 Form 10-K, the Firm is focused on the following key areas to ensure continuation of service to its EU clients: regulatory and legal entity readiness; client readiness; and business and operational readiness. Following are the significant updates from the matters discussed in the 2018 Form 10-K.
Regulatory and legal entity readiness
The Firm’s legal entities in Germany, Luxembourg and Ireland are now prepared and licensed to provide services to the Firm’s EU clients, including after any departure by the U.K. from the EU.
Client readiness
The agreements covering a significant proportion of the Firm’s EU client activity have been re-documented to other EU legal entities to help facilitate continuation of service. The Firm continues to actively engage with clients that have not updatingcompleted re-documentation to ensure preparedness both in terms of documentation and any operational changes that may be required. The Firm may be negatively impacted by any operational disruption stemming from delays of or lapses in the outlook provided inreadiness of other market participants or market infrastructures.
Business and operational readiness
The Firm relocated certain employees during the first quarter of 2019. During the second quarter of 2019, the Firm has added specific employees to certain EU legal entities, where appropriate, to support the level of client activity that has been migrated. However, the Firm’s final staffing plan will depend upon the timing and terms of any withdrawal by the U.K. from the EU.
If Brexit is further delayed due to a transition deal or another mechanism, the Firm will continue to review the timing and extent of any further expansion of activities in its EU legal entities, as appropriate. The Firm continues to closely monitor legislative developments, and its implementation plan allows for flexibility given the continued uncertainties.
LIBOR transition
The Firm continues to develop and implement plans to appropriately mitigate the risks associated with the expected discontinuation of certain unsecured benchmark interest rates, including the London Interbank Offered Rate (“LIBOR”) and other Interbank Offered Rates (“IBORs”). In particular, the Firm:
has implemented or is in the process of implementing fallback language for LIBOR-linked syndicated loans, securitizations, floating rate notes and bi-lateral business loans based on the recommendations of the Alternative Reference Rates Committee, and has started to introduce the Secured Overnight Financing Rate as a replacement benchmark rate for certain of these products;
continues to monitor the transition relief being considered by the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) concerning the accounting for contract modifications and hedge accounting; and
continues to engage with regulators and clients as the transition from IBORs progresses.
Refer to Business Developments on page 47 of the 2018 Form 10-Q.10-K for a discussion of the Firm’s initiatives to address the expected discontinuation of LIBOR and other IBORs.


CONSOLIDATED RESULTS OF OPERATIONS
This section provides a comparative discussion of JPMorgan Chase’s Consolidated Results of Operations on a reported basis for the three and six months ended June 30, 20182019 and 2017,2018, unless otherwise specified. Factors that relate primarily to a single business segment are discussed in more detail within that business segment. For a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations, refer to pages 77–7976–77 of this Form 10-Q and pages 138–140141-143 of JPMorgan Chase’s 2017 Annual Report.
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. For additional information, refer to Note 1.Form 10-K.
Revenue                      
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions)2018
 2017
 Change
 2018
 2017
 Change
2019
 2018
 Change
 2019
 2018
 Change
Investment banking fees$2,168
 $1,846
 17 % $3,904
 $3,726
 5 %$1,851
 $2,168
 (15)% $3,691
 $3,904
 (5)%
Principal transactions3,782
 3,137
 21
 7,734
 6,719
 15
3,714
 3,782
 (2) 7,790
 7,734
 1
Lending- and deposit-related fees1,495
 1,482
 1
 2,972
 2,930
 1
1,535
 1,495
 3
 3,017
 2,972
 2
Asset management, administration and commissions4,304
 4,047
 6
 8,613
 7,924
 9
4,353
 4,304
 1
 8,467
 8,613
 (2)
Investment securities losses(80) (34) (135) (325) (37) NM
Investment securities gains/(losses)44
 (80) NM
 57
 (325) NM
Mortgage fees and related income324
 404
 (20) 789
 810
 (3)279
 324
 (14) 675
 789
 (14)
Card income1,020
 1,167
 (13) 2,295
 2,081
 10
1,366
 1,020
 34
 2,640
 2,295
 15
Other income(a)
1,255
 1,474
 (15) 2,881
 2,245
 28
1,292
 1,255
 3
 2,767
 2,881
 (4)
Noninterest revenue14,268
 13,523
 6
 28,863
 26,398
 9
14,434
 14,268
 1
 29,104
 28,863
 1
Net interest income13,485
 12,208
 10
 26,797
 24,272
 10
14,398
 13,485
 7
 28,851
 26,797
 8
Total net revenue$27,753
 $25,731
 8 % $55,660
 $50,670
 10 %$28,832
 $27,753
 4 % $57,955
 $55,660
 4 %
(a)Included operating lease income of $1.1$1.3 billion and $873 million$1.1 billion for the three months ended June 30, 20182019 and 2017,2018, respectively and $2.2$2.6 billion and $1.7$2.2 billion for the six months ended June 30, 20182019 and 2017,2018, respectively.
Quarterly results
Investment banking fees increased decreased reflecting higher equity underwriting and advisory fees. The increase in equity underwritinglower fees wasacross products driven by declines in industry-wide fee levels, and when compared with a higher share of fees, primarily due to strong performance in the IPO and convertible markets. The increase in advisory fees was driven by a higher number of large completed transactions.prior year. For additional information, refer to CIB segment results on pages 25–3027–32 and Note 5.
Principal transactions revenue increased reflecting higher client-driven market-making includes a gain in CIB from the IPO of a strategic investment in Tradeweb. Excluding this gain, principal transactions revenue decreased, reflecting:
lower revenue in CIB as a result of strength across productsprimarily driven by derivatives in Equity Markets, predominantlylargely offset by higher client activity in derivatives and prime brokerage.agency mortgage trading in Fixed Income Markets also recorded solid performance
net valuation losses on certain legacy private equity investments in Corporate compared with good client activity. net gains in the prior year
losses on cash deployment transactions in Treasury and Chief Investment Office (“CIO”), which were more than offset by the related net interest income earned on those transactions
lower revenue related to hedges on certain investments in AWM, which was more than offset by higher valuation gains on the related investments reflected in other income.
For additional information, refer to CIB, AWM and Corporate segment results on pages 25–30 ,27–32, pages 37–40 and pages 41–42, and Note 5.
For information on lending- and deposit-related fees, refer to the segment results for CCB on pages 20–24, CIB on pages 25–30, CB on pages 31–34 and Note 5.
Asset management, administration and commissions revenue increased reflecting:
primarily reflecting higher asset management fees in AWM and CCB driven by net long-term product inflows and higher market levels, partially offset by fee compressionCBB from growth in AWM
higher brokerage commissions driven by higher volumes and higher asset-based fees in CIB driven by net client inflows and higher market levels.
investment assets. For additional information, refer to CCB, AWM CCB and CIB segment results on pages 35–38,22–26 , pages 20–2437–40 and pages 25–30,27–32, respectively, and Note 5.
Lending- and deposit-related fees increased primarily reflecting higher deposit-related fees in CCB. For additional information, refer to CCB segment results on pages 22–26, CIB on pages 27–32 and CB on pages 33–36, respectively, and Note 5.
Investment securities losses increased gains/(losses) primarily due to sales related toreflect the impact of repositioning of the investment securities portfolio. For furtheradditional information, on the investment securities portfolio, refer to the Corporate segment discussionresults on pages 39–4041–42 and Note 9.

Mortgage fees and related income decreased driven by by:
lower net mortgage servicing revenue on lower MSR risk management results reflecting updates to model inputs, and lower operating revenue reflecting faster prepayment speeds on lower rates
predominantly offset by
higher net mortgage production revenue reflecting lowerhigher mortgage production margins and lower servicing revenue, partially offset by higher MSR risk management results.volumes, as well as the impact of loan sales in Home Lending.
For further information, refer to CCB segment results on pages 20–2422–26, Note 5 and Note 14.
Card income decreased driven by:
lower net interchange income increased reflecting higher rewards costs and partner payments, partially offset by higher card sales volumes. The rewards costs included anthe impact of the prior-year adjustment of approximately $330 million to the credit card rewards liability of approximately $330 million driven by an increase in redemption rate assumptions
the lower net interchange income was largely offset by
lower new account origination costs
higher merchant processing fees reflecting higher merchant processing volumes.
liability. For further information, refer to CCB segment results on pages 20–2422–26 and Note 5.

Other income reflects: increased reflecting:
higher operating lease income from growth in auto operating lease volume in CCB, and
higher investment valuation gains in AWM, which waswere largely offset by the impact of the related hedges reflected in principal transactions revenue
partially offset by
lower other income in CIB associated with the increased amortization on a higher level of alternative energy investments. The lower income tax expense from the associated tax credits more than offset by
the absenceimpact of a $645 million legal benefit in Corporate related to a settlement with the FDIC receivership for Washington Mutual and with Deutsche Bank as trustee to certain Washington Mutual trusts.higher amortization.
For further information, refer to Note 5.
Net interest income increased primarily driven by the net impact of balance sheet growth and change in mix, as well as higher rates, and loan growth across the businesses, partially offset by declines inlower CIB Markets net interest income in CIB.income. The Firm’s average interest-earning assets were $2.2$2.3 trillion, up $45$133 billion, from the prior year, and the net interest yield on these assets, on a fully taxable equivalenttaxable-equivalent (“FTE”) basis, was 2.46%2.49%, an increase of 151 basis points frompoint. The net interest yield excluding CIB Markets was 3.35%, an increase of 14 basis points. Net interest yield excluding CIB markets is a non-GAAP financial measure. For a further discussion of this measure, refer to Explanation and Reconciliation of the prior year.Firm’s Use of Non-GAAP Financial Measures and Key Performance Measures on pages 19–20.
Year-to-date results
Investment banking fees increased reflecting:
higher advisory and decreased reflecting lower equity underwriting fees in CIB. The increase inand advisory fees was driven by a higher number of large completed transactions. The increase in equity underwriting fees was driven by a higher share of fees, primarily due to strong performance in the IPO market
partially offset by
lower debt underwriting fees primarily driven by declines in industry-wide fee levels and a lower share in leveraged finance.levels.
Principal transactions revenue increased primarily includes a gain in CIB from the IPO of a strategic investment in Tradeweb. Excluding this gain, CIB’s revenue was relatively flat, reflecting:
favorable changes in funding spreads on derivatives in Credit Adjustments & Other, and higher client-driven market-making revenue in CIB driven by strength across productsagency mortgage trading in Equity Markets, predominantly derivatives and prime brokerage. Fixed Income Markets also recorded strong performance in Commodities and Currencies & Emerging Markets, largely
offset by lower revenue in Credit
–lower client activity in derivatives in Equity Markets, and lower revenue in Currencies & Emerging Markets within Fixed Income Markets
the net increase in client-driven market-making revenue in CIB was partially offset by
private equity losses of $45 million compared with gains of $153 millionon cash deployment transactions in Treasury and CIO, which were more than offset by the prior yearrelated net interest income earned on legacythose transactions
lower revenue related to hedges on certain investments in Corporate.
AWM, which was more than offset by higher valuation gains on the related investments reflected in other income.
Asset management, administration and commissions revenue increased decreased reflecting:
lower asset management fees in AWM driven by a shift in the mix toward lower fee products and lower average market levels, and
lower brokerage commissions in CIB on lower activity
partially offset by
higher asset management fees in AWMCBB from growth in client investment assets.
For information on lending- and deposit-related fees, refer to CCB driven by net long-term product inflowson pages 22–26, CIB on pages 27–32 and higher market levels, partially offset by fee compression in AWMCB on pages 33–36, respectively, and Note 5.
higher brokerage commissions driven by higher volumes in CIB and AWM, and higher asset-based fees in CIB driven by net client inflows and higher market levels.
Investment securities losses increased gains/(losses) primarily due to sales related toreflect the impact of repositioning of the investment securities portfolio.

Mortgage fees and related income decreased driven by by:
lower net mortgage servicing revenue on lower MSR risk management results reflecting updates to model inputs, and lower operating revenue reflecting lower servicing revenue on a lower level of third-party loans serviced and faster prepayment speeds on lower rates
predominantly offset by
higher net mortgage production revenue reflecting lowerhigher mortgage production margins and lower servicing revenue, predominantly offset by higher MSR risk management results.volumes, as well as the impact of loan sales in Home Lending.
Card income increased driven by:
lower new account origination costs
higher merchant processing fees reflecting higher merchant processing volumes
largely offset by
lower net interchange income reflecting higher rewards costs and partner payments, largely offset by higher card sales volumes. The rewards costs included anthe impact of the prior-year adjustment of approximately $330 million to the credit card rewards liabilityliability.
Other income decreased reflecting:
lower other income in CIB associated with the increased amortization on a higher level of approximately $330alternative energy investments. The lower income tax expense from the associated tax credits more than offset the impact of the higher amortization
partially offset by
higher operating lease income from growth in auto operating lease volume in CCB, and
higher investment valuation gains in AWM, which were largely offset by the impact of the related hedges reflected in principal transactions revenue.
The prior year included $505 million driven by an increase in redemption rate assumptions.
Other income increased reflecting:
of fair value gains of $505 million recognized in the first quarter of 2018 related to the adoption of the new recognition and measurement accounting guidance for certain equity investments previously held at cost in the first quarter of 2018.
higher operating lease income from growth in auto operating lease volume in CCB
partially offset by
the absence of a legal benefit of $645 million in Corporate related to a settlement with the FDIC receivership for Washington Mutual and with Deutsche Bank as trustee to certain Washington Mutual trusts.
Net interest income increased primarily driven by the net impact of balance sheet growth and change in mix, as well as higher rates, and loan growth across the businesses, partially offset by declines inlower CIB Markets net interest income in CIB.income. The Firm’s average interest-earning assets were $2.2$2.3 trillion, up $44$122 billion, from the prior year, and the net interest yield on these assets, on aan FTE basis, was 2.47%2.53%, an increase of 154 basis points from the prior year.points. The net interest yield excluding CIB Markets was 3.39%, an increase of 22 basis points. Net interest yield excluding CIB markets is a non-GAAP financial measure.


Provision for credit lossesProvision for credit losses          Provision for credit losses          
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions)

2018
 2017
 Change
 2018
 2017
 Change
2019
 2018
 Change
 2019
 2018
 Change
Consumer, excluding credit card$(56) $12
 NM
 $90
 $454
 (80)%$(318) $(56) (468)% $(204) $90
 NM
Credit card1,164
 1,387
 (16)% 2,334
 2,380
 (2)1,440
 1,164
 24
 2,642
 2,334
 13
Total consumer1,108
 1,399
 (21) 2,424
 2,834
 (14)1,122
 1,108
 1
 2,438
 2,424
 1
Wholesale102
 (184) NM
 (49) (304) 84
27
 102
 (74) 206
 (49) NM
Total provision for credit losses$1,210
 $1,215
 — % $2,375
 $2,530
 (6)%$1,149
 $1,210
 (5)% $2,644
 $2,375
 11%
Quarterly results
The provision for credit losses decreased driven by wholesale, with the prior year reflecting a higher provision from net portfolio activity, including new exposures and loan sales.
The total consumer provision was relatively flat as a result of:reflecting:
a decreasean increase in the consumer provision predominantly reflecting
credit card due to
–
noa $200 million addition to the allowance for creditloan losses in CCB in the current quarter, compared with a net addition in the prior year primarily in the credit card portfolio
reflecting loan growth and higher loss rates, as anticipated, and
–
lowerhigher net charge-offs primarilyon loan growth
offset by

a decrease in consumer, excluding credit card due to
–a $400 million reduction in the allowance for loan losses in the PCI residential real estate portfolio, reflecting continued improvement in home prices and delinquencies
partially offset by
–higher net charge-offs in the residential real estate portfolio which includes a recovery from a loan sale, and reflects the continued improvement in home prices and delinquencies, predominantly offset by an increase in net charge-offs in the credit card portfolio due to seasoning of newer vintages, in line with expectations
the decrease in the consumer provision was offset by
an increase in the wholesale provision reflecting
–
a net expense in the current period as a result of net portfolio activity, including new exposures and loan sales, compared with a net benefit in the prior year driven bybenefited from a reduction in the allowance for credit losses in the Oil & Gas, Natural Gas Pipelines, and Metals and Mining portfolios.
recovery on a loan sale.
For a more detailed discussion ofadditional information on the credit portfolio and the allowance for credit losses, refer to the segmentsegments discussions of CCB on pages 20–24,22–26, CIB on pages 25–30,27–32, CB on pages 31–34,33–36, the Allowance for Credit Losses on pages 67–6968, and Note 12.

Year-to-date results
The provisionprovision for credit losses increased predominantly driven by wholesale, reflecting a net addition to the allowance for credit losses decreased ason select Commercial and Industrial (“C&I”) client downgrades. The prior period was a result of: benefit, reflecting a reduction in the allowance for credit losses primarily driven by a single name in the Oil & Gas portfolio, partially offset by other net portfolio activity.
a lowerThe total consumer provision predominantly reflecting was relatively flat reflecting:
an increase in credit card due to
–
noa $200 million addition to the allowance for creditloan losses in CCB in the current year, compared with areflecting loan growth and higher loss rates, as anticipated, and
–higher net addition in the prior year primarily in the credit card portfolio charge-offs on loan growth
partially
offset by
a decrease in consumer, excluding credit card due to
–
higher net charge-offsa $400 million reduction in the credit cardallowance for loan losses in the PCI residential real estate portfolio, due to seasoning of newer vintages,reflecting continued improvement in line with expectations. These were largely offset by lowerhome prices and delinquencies
partially offset by
–higher net charge-offs in the residential real estate portfolio which includesas the prior year benefited from a recovery from a loan sale and reflects the continued improvement in home prices and delinquencies
–
the prior year included a $218 million write-down recorded in connection with the sale of the student loan portfolio
sale.
the decrease in the consumer provision was partially offset by

a lower net benefit in the wholesale provision reflecting
–
a net benefit in the current period, primarily driven by a single name in the Oil & Gas portfolio, partially offset by other net portfolio activity, compared with a net benefit in the prior year, driven by a reduction in the allowance for credit losses in the Oil & Gas, Natural Gas Pipelines, and Metals and Mining portfolios.
Noninterest expense           
 Three months ended June 30, Six months ended June 30,
(in millions)

2019
 2018
 Change
 2019
 2018
 Change
Compensation expense$8,547
 $8,338
 3 % $17,484
 $17,200
 2 %
Noncompensation expense:           
Occupancy1,060
 981
 8
 2,128
 1,869
 14
Technology, communications and equipment2,378
 2,168
 10
 4,742
 4,222
 12
Professional and outside services2,212
 2,126
 4
 4,251
 4,247
 —
Marketing862
 798
 8
 1,741
 1,598
 9
Other expense(a)(b)
1,282
 1,560
 (18) 2,390
 2,915
 (18)
Total noncompensation expense7,794
 7,633
 2
 15,252
 14,851
 3
Total noninterest expense$16,341
 $15,971
 2 % $32,736
 $32,051
 2 %
Noninterest expense          
 Three months ended June 30, Six months ended June 30,
(in millions)

2018
 2017
 Change
 2018
 2017
 Change
Compensation expense$8,338
 $7,757
 7 % $17,200
 $16,013
 7 %
Noncompensation expense:           
Occupancy981
 912
 8
 1,869
 1,873
 —
Technology, communications and equipment2,168
 1,871
 16
 4,222
 3,705
 14
Professional and outside services2,126
 1,899
 12
 4,247
 3,691
 15
Marketing798
 756
 6
 1,598
 1,469
 9
Other expense(a)(b)
1,560
 1,572
 (1) 2,915
 3,299
 (12)
Total noncompensation expense7,633
 7,010
 9
 14,851
 14,037
 6
Total noninterest expense$15,971
 $14,767
 8 % $32,051
 $30,050
 7 %
(a)Included Firmwide legal expenseexpense/(benefit) of $61$69 million and $0 million for the three months ended June 30, 2017,2019 and $702018, respectively and $(12) million and $279$70 million for the six months ended June 30, 2019 and 2018, and 2017, respectively; there was no legal expense for the three months ended June 30, 2018.respectively.
(b)Included FDIC-related expense of $368$121 million and $376$368 million for the three months ended June 30, 20182019 and 2017,2018, respectively and $751$264 million and $757$751 million for the six months ended June 30, 20182019 and 2017,2018, respectively.


Quarterly results
Compensation expense increased driven by investments in headcount across the businesses, including bankers, advisors and business-related support staff; and higherfront office hires, as well as technology staff, largely offset by lower performance-related compensation expense predominantly in CIB.
Noncompensation expense increased as a result of:
higher investments in the businesses, including, technology, real estate and marketing
higher depreciation expense from growth in auto operating lease volume in CCB
higher outside services expense primarily due to higher volume-related transaction costsbrokerage expense in CIB and higher external fees on revenue growthcertain businesses in AWMCIB
higher depreciationlegal expense, due to growth in auto operating lease volume in CCBand
a contribution to the Firm’s Foundation, whereas all prior-year contributions were made in the fourth quarter
largely offset by
lower FDIC charges as a result of the elimination of the surcharge at the end of the third quarter of 2018, and
the absence of a loss of $174 million recorded in other expense in Corporatethe prior year on the liquidation of a legal entity of $174 million
higher investments in technology
For additional information on the liquidation of a legal entity, refer to Note 17.19.

Year-to-date results
Compensation expense increased driven by investments in headcount across the businesses, including bankers, advisors and business-related supportfront office hires, as well as technology staff, and higherlargely offset by lower performance-related compensation expense predominantly in CIB.
Noncompensation expense increased as a result of:
higher outside services expense primarily due to higher volume-related transaction costsinvestments in CIBthe businesses, including, technology, real estate and higher external fees on revenue growth in AWMmarketing
higher depreciation expense due tofrom growth in auto operating lease volume in CCB, and
contributions to the Firm’s Foundation, whereas all prior-year contributions were made in the fourth quarter
largely offset by
lower FDIC charges as a result of the elimination of the surcharge at the end of the third quarter of 2018, and
the absence of a loss of $174 million recordedin the prior year in other expense in Corporate on the liquidation of a legal entity in Corporate.
higher investments in technology
partially offset by
lower legal expense
For a discussion of legal expense, refer to Note 22.

Income tax expenseIncome tax expense       Income tax expense       
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions)

2018
 2017
 Change
 2018
 2017
 Change2019
 2018
 Change
 2019
 2018
 Change
Income before income tax expense$10,572
 $9,749
 8 % $21,234
 $18,090
 17 %$11,342
 $10,572
 7 % $22,575
 $21,234
 6 %
Income tax expense2,256
 2,720
 (17) 4,206
 4,613
 (9)1,690
 2,256
 (25) 3,744
 4,206
 (11)
Effective tax rate21.3% 27.9%   19.8% 25.5% 

14.9% 21.3%   16.6% 19.8%  
Quarterly results
The effective tax rate decreased due to the TCJA, includingrecognition of $768 million of tax benefits related to the reductionresolution of certain tax audits and the change in the mix of income and expenses subject to U.S. federal, statutory income tax rate as well asstate and local taxes. The decrease was partially offset by a $189 million tax benefit recorded in the second quarter of 2018 resulting from a change in the estimate for the deemed repatriation tax on non-U.S. earnings. For additional information on the 2019 tax benefits, refer to Note 1.

Year-to-date results
The decrease was partially offset byeffective tax rate decreased due to the recognition of $874 million of tax benefits related to the resolution of certain tax audits and the change in the mix of income and expenseexpenses subject to U.S. federal, state and local taxes.

Year-to-date results
The effectivedecrease was partially offset by a decrease in tax rate decreased duebenefits related to the TCJA, including the reduction in the U.S. federal statutory income tax ratevesting of employee stock-based awards, as well as a $189 million tax benefit recorded in the second quarter of 2018 resulting from a change in the estimate for the deemed repatriation tax on non-U.S. earnings. The decrease was partially offset by higher pre-tax income, and the change in mix of income and expense subject to U.S. federal, state and local taxes.





CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS

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. For additional information, refer to Note 1.
Consolidated balance sheets analysis
The following is a discussion of the significant changes between June 30, 2018,2019, and December 31, 2017.2018.
Selected Consolidated balance sheets data
(in millions)Jun 30,
2018
 Dec 31,
2017
Change
June 30,
2019
 December 31,
2018
Change
Assets        
Cash and due from banks$23,680
 $25,898
(9)%$23,164
 $22,324
4 %
Deposits with banks381,500
 405,406
(6)244,874
 256,469
(5)
Federal funds sold and securities purchased under resale agreements226,505
 198,422
14
267,864
 321,588
(17)
Securities borrowed108,246
 105,112
3
130,661
 111,995
17
Trading assets:    
Debt and equity instruments360,289
 325,321
11
Derivative receivables58,510
 56,523
4
Trading assets523,373
 413,714
27
Investment securities233,015
 249,958
(7)307,264
 261,828
17
Loans948,414
 930,697
2
956,889
 984,554
(3)
Allowance for loan losses(13,250) (13,604)(3)(13,166) (13,445)(2)
Loans, net of allowance for loan losses935,164
 917,093
2
943,723
 971,109
(3)
Accrued interest and accounts receivable75,669
 67,729
12
88,399
 73,200
21
Premises and equipment14,132
 14,159
—
24,665
 14,934
65
Goodwill, MSRs and other intangible assets54,535
 54,392
—
53,302
 54,349
(2)
Other assets118,805
 113,587
5
120,090
 121,022
(1)
Total assets$2,590,050
 $2,533,600
2 %$2,727,379
 $2,622,532
4 %
Cash and due from banks and deposits with banks decreased primarily as a result of net long-term debt maturities and a shift in the deployment of excess cash from depositsin Treasury and CIO into short-term instruments in trading assets. Deposits with banks into securities purchased under resale agreements. Thereflect the Firm’s placements of its excess cash is largely placed with various central banks, predominantlyincluding the Federal Reserve Banks.
Federal funds sold and securities purchased under resale agreements increased primarily due to reflected higher client activity in CIB, which was more than offset by the impact of netting, and the shiftreduction in the deployment of excess cash from deposits with banks into securities purchased under resale agreements.in Treasury and CIO. For additional information, on the Firm’srefer to Liquidity Risk Management referon pages 49–53 and Note 10.
Securities borrowed increased driven by higher demand for securities largely related to pages 48–52.
Trading assets-debt and equity instruments increased predominantly as a result of client-driven market-making activities in CIB, primarilyCIB. For additional information, refer to Liquidity Risk Management on pages 49–53 and Note 10.
Trading assets increased compared with lower levels at year-end predominantly due to client-driven market-making activities in debt instruments in Fixed Income Markets, and equity instruments in CIB Markets, including prime brokerage, driven by higher client demand.brokerage. In addition, but to a lesser extent, trading assets increased in Treasury and CIO associated with the deployment of cash into short-term instruments. For additional information, refer to Notes 2 and 4.
Investment securities decreased increased primarily reflecting net sales, paydowns and maturitiespurchases of U.S. government agency mortgage-backed securities (“MBS”), commercial MBS, and obligations of U.S. statesTreasuries in Treasury and municipalities.CIO. For additional information on Investment securities, refer to Corporate segment results on pages 39–40,41–42, Investment Portfolio Risk Management on page 70,69, and Notes 2 and 9.
 
Loans increaseddecreased reflecting:
higher wholesale loans across all lines of business, predominantly driven by CIB, including loans to financial institution and commercial and industrial clients, and in AWM due to higher loans to international and domestic Private Banking clients
partially offset by
lower consumer loans in the residential real estate portfolio, predominantly driven by the seasonal declineloan sales in credit card balances, paydown of home equityHome Lending, and
lower loans run-off of PCI loans,in CIB, primarily driven by a loan syndication and a mortgage loan sale, predominantlynet paydowns, partially offset by higher retention of high-quality prime mortgagesincreases in CCBCB and AWM.
The allowance for loan losses decreased reflecting:
largely driven by Consumer due to a net$400 million reduction in the wholesale allowance primarilyfor loan losses in the Oil & GasPCI residential real estate portfolio, drivenreflecting continued improvement in home prices and delinquencies, partially offset by a single name
$200 million addition to the consumer allowance was relatively flat.in the credit card portfolio, due to loan growth and higher loss rates, as anticipated.
For a more detailed discussion of loans and the allowance for loan losses, refer to Credit and Investment Risk Management on pages 53–70,54–69, and Notes 2, 3, 11 and 12.
Accrued interest and accounts receivableincreased primarily reflecting higher client receivables related to client-driven market-making activities in CIB.CIB Fixed Income Markets, as well as higher receivables in CCB related to the timing of payment activities in Card Services, due to the end of the quarter falling on a weekend.
Other assetsPremises and equipment increased largely reflecting higher auto operatingdue to the adoption of the new lease assets from growth in business volume in CCB.accounting guidance effective January 1, 2019. For additional information, refer to Note 16.
For information on Goodwill and MSRs, refer to Note 14.


Selected Consolidated balance sheets data (continued)Selected Consolidated balance sheets data (continued) Selected Consolidated balance sheets data (continued) 
(in millions)Jun 30,
2018
 Dec 31,
2017
Change
June 30,
2019
 December 31,
2018
Change
Liabilities        
Deposits$1,452,122
 $1,443,982
1 %$1,524,361
 $1,470,666
4 %
Federal funds purchased and securities loaned or sold under repurchase agreements175,293
 158,916
10
201,683
 182,320
11
Short-term borrowings63,918
 51,802
23
59,890
 69,276
(14)
Trading liabilities:    
Debt and equity instruments107,327
 85,886
25
Derivative payables42,511
 37,777
13
Trading liabilities147,639
 144,773
2
Accounts payable and other liabilities196,984
 189,383
4
216,137
 196,710
10
Beneficial interests issued by consolidated variable interest entities (“VIEs”)21,323
 26,081
(18)25,585
 20,241
26
Long-term debt273,114
 284,080
(4)288,869
 282,031
2
Total liabilities2,332,592
 2,277,907
2
2,464,164
 2,366,017
4
Stockholders’ equity257,458
 255,693
1
263,215
 256,515
3
Total liabilities and stockholders’ equity$2,590,050
 $2,533,600
2 %$2,727,379
 $2,622,532
4 %
Deposits increased due to:
higher depositsto growth in the consumer business reflecting the continuation of growthCIB from newclient activity in Securities Services and existing customers and low attrition rates in CCB, partially offset by balance migration as customers shift from deposits largely into the Firm’s investment-related products; and in the wholesale business reflecting an increase in CIB’s Treasury Services, business driven byand net issuances of structured notes in Markets, as well as continued growth in client activity
partially offset by
lower depositsnew accounts in the other wholesale businesses primarily driven by the impact of seasonalityCCB. Deposits in CB and AWM and balance migration in AWM predominantly into the Firm’s investment-related products.
were relatively stable. For moreadditional information, refer to the Liquidity Risk Management discussion on pages 48–52;49–53 and Notes 2
and 15.
Federal funds purchased and securities loaned or sold under repurchase agreements increased reflectingprimarily due to higher secured financing of trading assets-debt and equity instruments partially offset by a changeand client-driven market-making activities in the mix of funding to short-term borrowings in CIB.
Short-term borrowings increased driven by a change in
the mix of funding for CIB activities from securities sold under repurchase agreements to short-term borrowings, and the net issuance of commercial paper. For additional information, refer to Liquidity Risk Management on pages 48–52.
49–53 and Note 10.
Short-term borrowings decreased reflecting lower short-term advances from Federal Home Loan Banks (“FHLB”) and commercial paper in Treasury and CIO primarily due to short-term liquidity management. For additional information, refer to Liquidity Risk Management on pages 49–53.
Trading liabilities–debt and equity instruments liabilities increased predominantlymodestly as a result of client-driven market-making activities in CIB, primarilywhich resulted in higher levels of short positions in debt instruments in Fixed Income Markets, andlargely offset by a decline in short positions in equity instruments, primarily in prime brokerage. For additional information, refer to Note 2 .
Trading liabilities–derivative payables increased predominantly as a result of client-driven market-making activities in CIB Markets, which increased equity and interest rate derivative payables. For additional information, refer to Derivative contracts on pages 65–66, and Notes 2 and 4.
Accounts payable and other liabilities increased reflecting:
the impact of the adoption of the new lease accounting guidance effective January 1, 2019
higher payables in CCB related to the timing of payment activities in Card Services, due to the end of the quarter falling on a weekend.
For additional information on Leases, refer to Note 16.
Beneficial interests issued by consolidated VIEsdecreased increased due to:
higher levels of Firm-administered multi-seller conduit commercial paper issued to net third parties
partially offset by
maturities of credit card securitizations.
For further information on Firm-sponsored VIEs and loan securitization trusts, refer to Off-Balance Sheet Arrangements on page 1418 and Notes 13 and 20.22.
Long-term debt decreased increased primarily drivendue to client-driven net issuances of structured notes in CIB Markets, and in Treasury and CIO, from the net issuances of senior debt, partially offset by lower Federal Home Loan Bank (“FHLB”) advances and net maturities of senior debt.FHLB advances. For additional information on the Firm’s long-term debt activities, refer to Liquidity Risk Management on pages 48–52.49–53.
For information on changes in stockholders’ equity, refer to page 87,83, and on the Firm’s capital actions, refer to Capital actions on pages 46–47.





Consolidated cash flows analysis
The following is a discussion of cash flow activities during the six months ended June 30, 20182019 and 2017.2018.
(in millions) Six months ended June 30, Six months ended June 30,
2018
 2017
 2019
 2018
Net cash provided by/(used in)        
Operating activities $576
 $(18,486) $(94,734) $576
Investing activities (38,974) 24,539
 27,424
 (38,974)
Financing activities 13,766
 47,911
 56,469
 13,766
Effect of exchange rate changes on cash (1,492) 5,408
 86
 (1,492)
Net increase/(decrease) in cash and due from banks and deposits with banks $(26,124) $59,372
Net decrease in cash and due from banks and deposits with banks $(10,755) $(26,124)
Operating activities
In 2019, cash used primarily resulted from higher trading assets-debt and equity instruments, securities borrowed, accrued interest and accounts receivable and other assets, partially offset by higher trading liabilities, and net proceeds from loans originated for sale.
In 2018, cash provided primarily reflected increasedresulted from higher trading liabilities-debt and equity instruments and accounts payable and other liabilities, offset by increases inhigher trading assets-debt and equity instruments.
In 2017, cash used primarily reflected increases in trading assets-debt and equity instruments and accrued interest and accounts receivable, and decreases in trading liabilities-derivative payables, and accounts payable and other liabilities, partially offset by a decrease in other assets.
 
Investing activities
In 2018,2019, cash used reflected an increase inprovided resulted from lower securities purchased under resale agreements, and net proceeds from the sale of loans held-for-investment, partially offset by net purchases of investment securities.
In 2018, cash used resulted from higher securities purchased under resale agreements and net loans originated, partially offset by lowernet proceeds from investment securities.
Financing activities
In 2017,2019, cash provided reflected a decrease inresulted from higher deposits and securities purchasedloaned or sold under resalerepurchase agreements, and lower investment securities, partially offset by a net increase in loan originations.
Financing activitiespayments on long-term borrowings.
In 2018, cash provided reflectedresulted from higher securities loaned or sold under repurchase agreements, short-term borrowings and deposits, partially offset by a decrease innet payments on long-term borrowings.
In 2017, cash provided reflected higher deposits, and short-term borrowings, partially offset by a decrease in long-term borrowings.
Additionally, forFor both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock.
* * *
For a further discussion of the activities affecting the Firm’s cash flows, refer to Consolidated Balance Sheets Analysis on pages 11–13,15–17, Capital Risk Management on pages 43–47,44–48, and Liquidity Risk Management on pages 48–5249–53 of this Form 10-Q, and pages 92–9795–100 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.




OFF-BALANCE SHEET ARRANGEMENTS
In the normal course of business, the Firm enters into various off-balance sheet arrangements and contractual obligations that may require future cash payments. Certain obligations are recognized on-balance sheet, while others are disclosed off-balance sheet under accounting principles generally accepted in the U.S. (“U.S. GAAP”).
Special-purpose entities
The Firm is involved withhas several types of off–balance sheet arrangements, including through nonconsolidated special-purpose entities (“SPEs”), which are a type of VIE, and through lending-related financial instruments (e.g., commitments and guarantees).
The Firm holds capital, as deemed appropriate, against all SPE-related transactions and related exposures, such as derivative transactionscontracts and lending-related commitments and guarantees.
The Firm has no commitments to issue its own stock to support any SPE transaction, and its policies require that transactions with SPEs be conducted at arm’s length and reflect market pricing. Consistent with this policy, no JPMorgan Chase employee is permitted to invest in SPEs with which the Firm is involved where such investment would violate the Firm’s Code of Conduct.
The table below provides an index of where in this Form 10-Q a discussion of the Firm’s various off-balance sheet arrangements can be found. In addition, refer to Note 1 for information about the Firm’s consolidation policies.
Type of off-balance sheet arrangementLocation of disclosurePage references
Special-purpose entities: variable interests and other obligations, including contingent obligations, arising from variable interests in nonconsolidated VIEsRefer to Note 13145-150138-143
Off-balance sheet lending-related financial instruments, guarantees, and other commitmentsRefer to Note 2022159-162155-158






EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE MEASURES
Non-GAAP financial measures
The Firm prepares its Consolidated Financial Statements usingin accordance with U.S. GAAP;GAAP and this presentation is referred to as “reported” basis; these financial statements appear on pages 84–88. 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.80–84.
In addition to analyzing the Firm’s results on a reported basis, managementthe Firm also reviews and uses certain non-GAAP financial measures at the Firmwide and segment level. These non-GAAP measures include:
Firmwide “managed” basis results, including the overhead ratio, 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 includeswhich include certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on an 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 from year-to-year arising fromsecurities (“FTE” basis)
 
both taxableNet interest income 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.yield excluding CIB’s Markets businesses
Management also uses certain non-GAAP financial measures at the Firm and business-segment level, because these other non-GAAP financial measures provide information to investors about the underlying operational performance and trends of the Firm or of the particular business segment, as the case may be, and, therefore, facilitate a comparison of the Firm or the business segment with the performance of its relevant competitors. For additional information on these non-GAAP measures, refer to Business Segment Results on pages 18–40.
Additionally, certainCertain credit metrics and ratios, disclosedwhich exclude PCI loans
Tangible common equity (“TCE”), ROTCE, and TBVPS.
In addition, core loans is a key performance measure utilized by the Firm exclude PCI loans, and are thereforeits investors and analysts in assessing actual growth in the loan portfolio.
For a further discussion of management’s use of non-GAAP measures. For additional information on these non-GAAPfinancial measures and key performance measures, refer to CreditExplanation and Investment Risk ManagementReconciliation Of the Firm’s Use Of Non-GAAP Financial Measures and Key Performance Measures on pages 53–70.
Non-GAAP financial measures used by the Firm may not be comparable to similarly named non-GAAP financial measures used by other companies.57-59 of JPMorgan Chase’s 2018 Form 10-K.
The following summary tables providetable provides a reconciliation from the Firm’s reported U.S. GAAP results to managed basis.
 Three months ended June 30,
 2018 2017
(in millions, except ratios)Reported
results		 
Fully taxable-equivalent adjustments(a)(b)
 Managed
basis		 Reported
results		 
Fully taxable-equivalent adjustments(a)
 Managed
basis
Other income$1,255
 $474
  $1,729
 $1,474
 $596
  $2,070
Total noninterest revenue14,268
 474
  14,742
 13,523
 596
  14,119
Net interest income13,485
 161
  13,646
 12,208
 339
  12,547
Total net revenue27,753
 635
  28,388
 25,731
 935
  26,666
Pre-provision profit11,782
 635
  12,417
 10,964
 935
  11,899
Income before income tax expense10,572
 635
  11,207
 9,749
 935
  10,684
Income tax expense$2,256
 $635
  $2,891
 $2,720
 $935
  $3,655
Overhead ratio58% NM
  56% 57% NM
  55%
              
 Six months ended June 30,
 2018 2017
(in millions, except ratios)Reported
results		 
Fully taxable-equivalent adjustments(a)(b)
 Managed
basis		 Reported
results		 
Fully taxable-equivalent adjustments(a)
 Managed
basis
Other income$2,881
 $929
  $3,810
 $2,245
 $1,178
  $3,423
Total noninterest revenue28,863
 929
  29,792
 26,398
 1,178
  27,576
Net interest income26,797
 319
  27,116
 24,272
 668
  24,940
Total net revenue55,660
 1,248
  56,908
 50,670
 1,846
  52,516
Pre-provision profit23,609
 1,248
  24,857
 20,620
 1,846
  22,466
Income before income tax expense21,234
 1,248
  22,482
 18,090
 1,846
  19,936
Income tax expense$4,206
 $1,248
  $5,454
 $4,613
 $1,846
  $6,459
Overhead ratio58% NM
  56% 59% NM
  57%
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. For additional information, refer to Note 1.
 Three months ended June 30,
 2019 2018
(in millions, except ratios)Reported
results		 
Fully taxable-equivalent adjustments(a)
 Managed
basis		 Reported
results		 
Fully taxable-equivalent adjustments(a)
 Managed
basis
Other income$1,292
 $596
  $1,888
 $1,255
 $474
  $1,729
Total noninterest revenue14,434
 596
  15,030
 14,268
 474
  14,742
Net interest income14,398
 138
  14,536
 13,485
 161
  13,646
Total net revenue28,832
 734
  29,566
 27,753
 635
  28,388
Pre-provision profit12,491
 734
  13,225
 11,782
 635
  12,417
Income before income tax expense11,342
 734
  12,076
 10,572
 635
  11,207
Income tax expense$1,690
 $734
  $2,424
 $2,256
 $635
  $2,891
Overhead ratio57% NM
  55% 58% NM
  56%
              
 Six months ended June 30,
 2019 2018
(in millions, except ratios)Reported
results		 
Fully taxable-equivalent adjustments(a)
 Managed
basis		 Reported
results		 
Fully taxable-equivalent adjustments(a)
 Managed
basis
Other income$2,767
 $1,181
  $3,948
 $2,881
 $929
  $3,810
Total noninterest revenue29,104
 1,181
  30,285
 28,863
 929
  29,792
Net interest income28,851
 281
  29,132
 26,797
 319
  27,116
Total net revenue57,955
 1,462
  59,417
 55,660
 1,248
  56,908
Pre-provision profit25,219
 1,462
  26,681
 23,609
 1,248
  24,857
Income before income tax expense22,575
 1,462
  24,037
 21,234
 1,248
  22,482
Income tax expense$3,744
 $1,462
  $5,206
 $4,206
 $1,248
  $5,454
Overhead ratio56% NM
  55% 58% NM
  56%
(a)Predominantly recognized in CIB, and CB business segments and Corporate.
(b)The decrease in fully taxable-equivalent adjustments in the three and six months ended June 30, 2018, reflects the impact of the TCJA.


Net










The following table provides information on net interest income and net yield excluding CIB’s Markets businessesbusinesses.
In addition to reviewing net interest income on a managed basis, management also reviews net interest income excluding net interest income arising from CIB’s Markets businesses to assess the performance of the Firm’s lending, investing (including asset-liability management) and deposit-raising activities. This net interest income is referred to as non-markets related net interest income. CIB’s Markets businesses are Fixed Income Markets and
Equity Markets. Management believes that disclosure of non-markets related net interest income provides investors and analysts with another measure by which to analyze the non-markets-related business trends of the Firm and provides a comparable measure to other financial institutions that are primarily focused on lending, investing and deposit-raising activities.

The data presented below are non-GAAP financial measures due to the exclusion of markets-related net interest income arising from CIB.

(in millions, except rates)
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
2018
2017
 Change
 20182017 Change2019
2018
 Change
 20192018 Change
Net interest income – managed basis(a)(b)
$13,646
$12,547
 9 % $27,116
$24,940
 9 %$14,536
$13,646
 7 % $29,132
$27,116
 7 %
Less: CIB Markets net interest income(c)
754
1,075
 (30) 1,784
2,439
 (27)624
754
 (17) 1,248
1,784
 (30)
Net interest income excluding CIB Markets(a)
$12,892
$11,472
 12
 $25,332
$22,501
 13
$13,912
$12,892
 8
 $27,884
$25,332
 10
              
Average interest-earning assets(d)$2,222,277
$2,177,109
 2
 $2,212,897
$2,169,055
 2
$2,339,094
$2,206,005
 6
 $2,319,105
$2,196,675
 6
Less: Average CIB Markets interest-earning assets(c)(d)
611,432
537,263
 14
 601,544
530,051
 13
673,480
595,160
 13
 661,397
585,322
 13
Average interest-earning assets excluding CIB Markets$1,610,845
$1,639,846
 (2)% $1,611,353
$1,639,004
 (2)%$1,665,614
$1,610,845
 3 % $1,657,708
$1,611,353
 3 %
Net interest yield on average interest-earning assets – managed basis(d)2.46%2.31%   2.47%2.32%  2.49%2.48%   2.53%2.49%  
Net interest yield on average CIB Markets interest-earning assets(c)(d)
0.49
0.80
   0.60
0.93
  0.37
0.51
   0.38
0.61
  
Net interest yield on average interest-earning assets excluding CIB Markets3.21%2.81%   3.17%2.77%  3.35%3.21%   3.39%3.17%  
(a)Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
(b)For a reconciliation of net interest income on a reported and managed basis, refer to the table above relating to the reconciliation from the Firm’s reported U.S. GAAP results to managed basis on page 15.basis.
(c)For further information on CIB’s Markets businesses, refer to page 29.31.

Tangible common equity, ROTCE and TBVPS
Tangible common equity (“TCE”), ROTCE and TBVPS are each non-GAAP financial measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s net income
applicable to common equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. TCE, ROTCE, and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.
(d)In the second quarter of 2019, the Firm reclassified balances related to certain instruments from interest-earning to noninterest-earning assets, as the associated returns are recorded in principal transactions revenue and not in net interest income. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.
The following summary table provides a reconciliation from the Firm’s common stockholders’ equity to TCE.
Period-end AveragePeriod-end Average
(in millions, except per share and ratio data)Jun 30,
2018
Dec 31,
2017
 Three months ended June 30, Six months ended June 30,Jun 30,
2019
Dec 31,
2018
 Three months ended June 30, Six months ended June 30,
2018
2017
 2018
2017
 2019
2018
 2019
2018
Common stockholders’ equity$231,390
$229,625
 $228,901
$230,200
 $228,261
$228,959
$236,222
$230,447
 $233,026
$228,901
 $231,547
$228,261
Less: Goodwill47,488
47,507
 47,494
47,290
 47,499
47,292
47,477
47,471
 47,472
47,494
 47,474
47,499
Less: Other intangible assets806
855
 822
838
 833
845
732
748
 741
822
 741
833
Add: Certain Deferred tax liabilities(b)(a)
2,227
2,204
 2,221
3,239
 2,216
3,234
2,316
2,280
 2,304
2,221
 2,296
2,216
Tangible common equity$185,323
$183,467
 $182,806
$185,311
 $182,145
$184,056
$190,329
$184,508
 $187,117
$182,806
 $185,628
$182,145
          
Return on tangible common equityNA
NA
 17%14% 18%14%NA
NA
 20%17% 20%18%
Tangible book value per share$55.14
$53.56
 NA
NA
 NA
NA
$59.52
$56.33
 NA
NA
 NA
NA
(a)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating TCE.
(b)Includes the effect from the revaluation of the Firm’s net deferred tax liability as a result of the TCJA.
Key performance measures
The Firm considers the following to be key regulatory capital measures:
Capital, risk-weighted assets (“RWA”), and capital and leverage ratios presented under Basel III Standardized and Advanced Fully Phased-In rules, and
SLR calculated under Basel III Advanced Fully Phased-In rules.
The Firm, as well as banking regulators, investors and analysts use these measures to assess the Firm’s regulatory capital position and to compare the Firm’s regulatory capital to that of other financial services companies.
For additional information on these measures, refer to Capital Risk Management on pages 43–47.
Core loans are also considered a key performance measure. Core loans represent loans considered central to the Firm’s ongoing businesses; and exclude loans classified as trading assets, runoff portfolios, discontinued portfolios and portfolios the Firm has an intent to exit. Core loans is a measure utilized by the Firm and its investors and analysts in assessing actual growth in the loan portfolio.


BUSINESS SEGMENT RESULTS
The Firm is managed on a line of business basis. There are four major reportable business segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. In addition, there is a Corporate segment.
The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by management. Results of these lines of businessthe Firm’s Operating Committee. Segment results are presented on a managed basis. For a definition of managed basis, refer to Explanation and Reconciliation of the Firm’s use of Non-GAAP Financial Measures and Key Performance Measures on pages 15–17.19–20.
Description of business segment reporting methodology
Results of the business segments are intended to present each segment as if it were essentially a stand-alone business. The management reporting process that derives business segment results includes the allocation of certain
income and expense items. For further information about line of business capital, refer to Line of business equity on page 46. The Firm periodically assesses the assumptions, methodologies and reporting classifications used for segment reporting, and further refinements may be implemented in future periods.
Business segment capital allocation
The amount of capital assigned to each business is referred to as equity. On at least an annual basis, the Firm assesses the level of capital required for each line of business as well as the assumptions and methodologies used in capital allocation are assessed and as a result, the capital allocated to allocate capital.lines of business may change. For additional information on business segment capital allocation, refer to Line of business equity on pages 88-89page 91 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
For a further discussion of those methodologies, refer to Business Segment Results – Description of business segment reporting methodology on pages 55–5660–61 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.

Segment results – managed basis
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. For additional information, refer to Note 1.
Net income in 2018 for the business segments reflects the favorable impact of the reduction in the U.S. federal statutory income tax rate as a result of the TCJA.
The following tables summarize the businessFirm’s results by segment results for the periods indicated.
Three months ended June 30,Total net revenue Total noninterest expense Pre-provision profit/(loss)
(in millions)2018
2017
Change
 2018
2017
Change 2018
2017
Change
Consumer & Community Banking$12,497
$11,412
10 % $6,879
$6,500
6 $5,618
$4,912
14 %
Corporate & Investment Bank9,923
8,925
11
 5,403
4,877
11 4,520
4,048
12
Commercial Banking2,316
2,088
11
 844
790
7 1,472
1,298
13
Asset & Wealth Management3,572
3,437
4
 2,566
2,417
6 1,006
1,020
(1)
Corporate80
804
(90) 279
183
52 (199)621
NM
Total$28,388
$26,666
6 % $15,971
$14,767
8 $12,417
$11,899
4 %
Three months ended June 30,Consumer & Community Banking Corporate & Investment Bank Commercial Banking
(in millions, except ratios)2019
2018
Change 2019
2018
Change
 2019
2018
Change
Total net revenue$13,833
$12,497
11 $9,641
$9,923
(3)% $2,211
$2,316
(5)%
Total noninterest expense7,162
6,879
4 5,487
5,403
2
 864
844
2
Pre-provision profit/(loss)6,671
5,618
19 4,154
4,520
(8) 1,347
1,472
(8)
Provision for credit losses1,120
1,108
1 —
58
NM
 29
43
(33)
Net income/(loss)4,174
3,412
22 2,935
3,198
(8) 996
1,087
(8)
Return on equity (“ROE”)31%26%  14%17%  17%21% 
Three months ended June 30,Provision for credit losses Net income/(loss) Return on equity
(in millions, except ratios)2018
2017
Change
 2018
2017
Change 2018
2017
Consumer & Community Banking$1,108
$1,394
(21)% $3,412
$2,223
53 26%17%
Corporate & Investment Bank58
(53)NM
 3,198
2,710
18 17
15
Commercial Banking43
(130)NM
 1,087
902
21 21
17
Asset & Wealth Management2
4
(50) 755
624
21 33
27
Corporate(1)—
NM
 (136)570
NM NM
NM
Total$1,210
$1,215
—
 $8,316
$7,029
18 14%12%
Three months ended June 30,Asset & Wealth Management Corporate Total
(in millions, except ratios)2019
2018
Change
 2019
2018
Change
 2019
2018
Change
Total net revenue$3,559
$3,572
—
 $322
$80
303 % $29,566
$28,388
4 %
Total noninterest expense2,596
2,566
1
 232
279
(17) 16,341
15,971
2
Pre-provision profit/(loss)963
1,006
(4) 90
(199)NM
 13,225
12,417
7
Provision for credit losses2
2
—
 (2)(1)(100) 1,149
1,210
(5)
Net income/(loss)719
755
(5) 828
(136)NM
 9,652
8,316
16
ROE27%33%  NM
NM
  16%14% 
Six months ended June 30,Total net revenue Total noninterest expense Pre-provision profit/(loss)
(in millions)2018
2017
Change 2018
2017
Change
 2018
2017
Change
Consumer & Community Banking$25,094
$22,382
12 $13,788
$12,895
7 % $11,306
$9,487
19
Corporate & Investment Bank20,406
18,524
10 11,062
10,061
10
 9,344
8,463
10
Commercial Banking4,482
4,106
9 1,688
1,615
5
 2,794
2,491
12
Asset & Wealth Management7,078
6,725
5 5,147
5,198
(1) 1,931
1,527
26
Corporate(152)779
NM 366
281
30
 (518)498
NM
Total$56,908
$52,516
8 $32,051
$30,050
7 % $24,857
$22,466
11
Six months ended June 30,Consumer & Community Banking Corporate & Investment Bank Commercial Banking
(in millions, except ratios)2019
2018
Change 2019
2018
Change
 2019
2018
Change
Total net revenue$27,584
$25,094
10 $19,489
$20,406
(4)% $4,549
$4,482
1 %
Total noninterest expense14,373
13,788
4 10,940
11,062
(1) 1,737
1,688
3
Pre-provision profit/(loss)13,211
11,306
17 8,549
9,344
(9) 2,812
2,794
1
Provision for credit losses2,434
2,425
— 87
(100)NM
 119
38
213
Net income/(loss)8,137
6,738
21 6,186
7,172
(14) 2,049
2,112
(3)
ROE31%26%  15%20%  18%20% 
Six months ended June 30,Provision for credit losses Net income/(loss) Return on equity
(in millions, except ratios)2018
2017
Change
 2018
2017
Change 2018
2017
Consumer & Community Banking$2,425
$2,824
(14)% $6,738
$4,211
60 26%16%
Corporate & Investment Bank(100)(149)33
 7,172
5,951
21 20
16
Commercial Banking38
(167)NM
 2,112
1,701
24 20
16
Asset & Wealth Management17
22
(23) 1,525
1,009
51 33
22
Corporate(5)—
NM
 (519)605
NM NM
NM
Total$2,375
$2,530
(6)% $17,028
$13,477
26 14%11%
Six months ended June 30,Asset & Wealth Management Corporate Total
(in millions, except ratios)2019
2018
Change
 2019
2018
Change 2019
2018
Change
Total net revenue$7,048
$7,078
—
 $747
$(152)NM $59,417
$56,908
4%
Total noninterest expense5,243
5,147
2
 443
366
21 32,736
32,051
2
Pre-provision profit/(loss)1,805
1,931
(7) 304
(518)NM 26,681
24,857
7
Provision for credit losses4
17
(76) —
(5)NM 2,644
2,375
11
Net income/(loss)1,380
1,525
(10) 1,079
(519)NM 18,831
17,028
11
ROE26%33%  NM
NM
  16%14% 
The following sections provide a comparative discussion of businessthe Firm’s results by segment results as of or for the three and six months ended June 30, 20182019 versus the corresponding periodperiods in the prior year, unless otherwise specified.





CONSUMER & COMMUNITY BANKING
For a discussion of the business profile of CCB, refer to pages 57-6162–65 of JPMorgan Chase’s 2017 Annual Report2018 Form 10-K and Line of Business Metrics on page 177.173.
Selected income statement dataSelected income statement data          Selected income statement data          
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions, except ratios)2018
 2017
 Change
 2018
 2017
 Change2019
 2018
 Change
 2019
 2018
 Change
Revenue                      
Lending- and deposit-related fees$875
 $850
 3 % $1,732
 $1,662
 4 %$928
 $875
 6 % $1,801
 $1,732
 4 %
Asset management, administration and commissions591
 562
 5
 1,166
 1,101
 6
664
 591
 12
 1,282
 1,166
 10
Mortgage fees and related income324
 401
 (19) 789
 807
 (2)279
 324
 (14) 675
 789
 (14)
Card income910
 1,061
 (14) 2,080
 1,878
 11
1,257
 910
 38
 2,425
 2,080
 17
All other income1,048
 810
 29
 2,120
 1,553
 37
1,312
 1,048
 25
 2,590
 2,120
 22
Noninterest revenue3,748
 3,684
 2
 7,887
 7,001
 13
4,440
 3,748
 18
 8,773
 7,887
 11
Net interest income8,749
 7,728
 13
 17,207
 15,381
 12
9,393
 8,749
 7
 18,811
 17,207
 9
Total net revenue12,497
 11,412
 10
 25,094
 22,382
 12
13,833
 12,497
 11
 27,584
 25,094
 10
                      
Provision for credit losses1,108
 1,394
 (21) 2,425
 2,824
 (14)1,120
 1,108
 1
 2,434
 2,425
 —
                      
Noninterest expense                      
Compensation expense(a)
2,621
 2,504
 5
 5,281
 5,030
 5
2,672
 2,621
 2
 5,380
 5,281
 2
Noncompensation expense(b)(a)
4,258
 3,996
 7
 8,507
 7,865
 8
4,490
 4,258
 5
 8,993
 8,507
 6
Total noninterest expense6,879
 6,500
 6
 13,788
 12,895
 7
7,162
 6,879
 4
 14,373
 13,788
 4
Income before income tax expense4,510
 3,518
 28
 8,881
 6,663
 33
5,551
 4,510
 23
 10,777
 8,881
 21
Income tax expense1,098
 1,295
 (15) 2,143
 2,452
 (13)1,377
 1,098
 25
 2,640
 2,143
 23
Net income$3,412
 $2,223
 53
 $6,738
 $4,211
 60
$4,174
 $3,412
 22
 $8,137
 $6,738
 21
                      
Revenue by line of business                      
Consumer & Business Banking$6,131
 $5,233
 17
 $11,853
 $10,139
 17
$6,797
 $6,131
 11
 $13,365
 $11,853
 13
Home Lending1,347
 1,426
 (6) 2,856
 2,955
 (3)1,118
 1,347
 (17) 2,464
 2,856
 (14)
Card, Merchant Services & Auto5,019
 4,753
 6
 10,385
 9,288
 12
5,918
 5,019
 18
 11,755
 10,385
 13
                      
Mortgage fees and related income details:                      
Net production revenue93
 152
 (39) 188
 293
 (36)353
 93
 280
 553
 188
 194
Net mortgage servicing revenue(c)(b)
231
 249
 (7) 601
 514
 17
(74) 231
 NM
 122
 601
 (80)
Mortgage fees and related income$324
 $401
 (19)% $789
 $807
 (2)%$279
 $324
 (14)% $675
 $789
 (14)%
                      
Financial ratios                      
Return on equity26% 17%   26% 16%  31% 26%   31% 26%  
Overhead ratio55
 57
   55
 58
  52
 55
   52
 55
  
Note: In the discussion and the tables which follow, CCB presents certain financial measures which exclude the impact of PCI loans; these are non-GAAP financial measures.
(a)Effective inIncluded operating lease depreciation expense of $959 million and $827 million for the first quarter ofthree months ended June 30, 2019 and 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 a further discussion of this transfer, refer to CB segment results on page 31.respectively, and $1.9 billion and $1.6 billion for six months ended June 30, 2019 and 2018, respectively.
(b)Included operating lease depreciation expenseMSR risk management results of $827$(244) million and $638$(23) million for the three months ended June 30, 20182019 and 2017,2018, respectively and $1.6 billion and $1.2 billion for six months ended June 30, 2018 and 2017, respectively.
(c)Included MSR risk management results of $(23)$(253) million and $(57) million for the three months ended June 30, 2018 and 2017, respectively and $(6) million and $(109) million for six months ended June 30, 20182019 and 2017,2018, respectively.



















Quarterly results
Net income was $3.4$4.2 billion, an increase of 53%22%.
Net revenue was $12.5$13.8 billion, an increase of 10%11%.
Net interest income was $8.7$9.4 billion, up 13%7%, driven by:
higher deposit margins and balance growth in deposit balances, and
margin expansion andCBB, as well as higher loan balances and margin expansion in Card,
partially offset by
loan spread compression from higher ratesand lower loan balances in Home Lending and Auto, andLending.
Noninterest revenue was $4.4 billion, up 18%, including the impact of the saleprior-year adjustment of the student loan portfolio in the prior year.
Noninterest revenue was $3.7 billion, up 2%, driven by:
lower new account origination costs in Card,
higher auto lease volume, and
higher MSR risk management results,
predominantly offset by
lower net interchange reflecting higher rewards costs and partner payments, partially offset by higher card sales volumes. The rewards costs included an adjustmentapproximately $330 million to the credit card rewards liability, of approximately $330 millionpredominantly offset by lower MSR risk management results reflecting updates to model inputs. Excluding these notable items, noninterest revenue was up 16%, largely driven by an increase in redemption rate assumptions, andby:
lowerhigher net mortgage production revenue reflecting lowerhigher mortgage production margins.margins and volumes, as well as the impact of loan sales in Home Lending, and
higher auto lease volume,
partially offset by
lower operating revenue reflecting faster prepayment speeds on lower rates.
Refer to Note 14 for further information regarding changes in value of the MSR asset and related hedges, and mortgage fees and related income.
Noninterest expense was $6.9$7.2 billion, up 6%4%, largely driven by:
technology, marketing and other investments in the business, as well as higher auto lease depreciation,
partially offset by
expense efficiencies and
investments in technology. lower FDIC charges.
The provision for credit losses was $1.1 billion, a decrease of 21% fromrelatively flat compared with the prior year, reflecting:
no addition to the allowance for credit losses in the current quarter, compared with a net addition of $250 million in the prior year primarily in the credit card portfolio, and
lower net charge-offs, primarily in the residential real estate portfolio, which includes a recovery of approximately $130 million from a loan sale, and reflects continued improvement in home prices and delinquencies, predominantly offset by an increase in net charge-offs in the credit card portfolio due to seasoning of newer vintages,
–a $200 million addition to the allowance for loan losses reflecting loan growth and higher loss rates, as anticipated, and
–higher net charge-offs, on loan growth
offset by
a decrease in line with expectations.consumer, excluding credit card due to
–a $400 million reduction in the allowance for loan losses in the PCI residential real estate portfolio, reflecting continued improvement in home prices and delinquencies
partially offset by
–higher net charge-offs in the residential real estate portfolio as the prior year benefited from a recovery on a loan sale.
 
Year-to-date results
Net income was $6.7$8.1 billion, an increase of 60%21%.
Net revenue was $25.1$27.6 billion, an increase of 12%10%.
Net interest income was $17.2$18.8 billion, up 12%9%, driven by:
higher deposit margins and balance growth in deposit balances, and
margin expansion andCBB, as well as higher loan balances and margin expansion in Card,
partially offset by
loan spread compression from higher ratesand lower loan balances in Home Lending and Auto, andLending.
Noninterest revenue was $8.8 billion, up 11%, including the impact of the saleprior-year adjustment of approximately $330 million to the student loan portfolio in the prior year.
Noninterestcredit card rewards liability, predominantly offset by lower MSR risk management results reflecting updates to model inputs. Excluding these notable items, noninterest revenue was $7.9 billion, up 13%10%, largely driven by:
lower new account origination costs in Card,
higher auto lease volume, and
higher MSR risk management results,net mortgage production revenue reflecting higher mortgage production margins and volumes, as well as the impact of loan sales in Home Lending,
partially offset by
lower net interchange reflecting higher rewards costs and partner payments, largely offset by higher card sales volumes. The rewards costs included an adjustment to the credit card rewards liability of approximately $330 million driven by an increase in redemption rate assumptions, and
lower net productionoperating revenue reflecting lower mortgage production margins.servicing revenue on a lower level of third-party loans serviced and faster prepayment speeds on lower rates.
Noninterest expense was $13.8$14.4 billion, up 7%4%, driven by:
technology, marketing and other investments in technology and marketing,
the business, as well as higher auto lease depreciation,
partially offset by
expense efficiencies and
continued business growth. lower FDIC charges.
The provision for credit losses was $2.4 billion, a decrease of 14% fromflat compared with the prior year, reflecting:
no addition to the allowance for credit lossesan increase in the current year, compared with a net addition of $250 million in the prior year primarily in the credit card portfoliodue to
–a $200 million addition to the allowance for loan losses reflecting loan growth and higher loss rates, as anticipated, and
–higher net charge-offs, on loan growth
offset by
a decrease in consumer, excluding credit card due to
–a $400 million reduction in the allowance for loan losses in the PCI residential real estate portfolio, reflecting continued improvement in home prices and delinquencies
partially offset by
–higher net charge-offs in the residential real estate portfolio as the prior year benefited from a recovery on a loan sale.
higher net charge-offs in the credit card portfolio due to seasoning of newer vintages, in line with expectations. These were largely offset by lower net charge-offs in the residential real estate portfolio, which includes a recovery of approximately $130 million from a loan sale, and reflects the continued improvement in home prices and delinquencies
the prior year included a $218 million write-down recorded in connection with the sale of the student loan portfolio.




Selected metrics                      
As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,		As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions, except headcount)2018
 2017
 Change
 2018 2017 Change
2019
 2018
 Change
 2019 2018 Change
Selected balance sheet data (period-end)                      
Total assets$552,674
 $529,859
 4 % $552,674
 $529,859
 4 %$550,690
 $552,674
 — % $550,690
 $552,674
 — %
Loans:                      
Consumer & Business Banking26,272
 25,044
 5
 26,272
 25,044
 5
26,616
 26,272
 1
 26,616
 26,272
 1
Home equity39,033
 46,330
 (16) 39,033
 46,330
 (16)32,958
 39,033
 (16) 32,958
 39,033
 (16)
Residential mortgage202,205
 189,661
 7
 202,205
 189,661
 7
186,575
 202,205
 (8) 186,575
 202,205
 (8)
Home Lending241,238
 235,991
 2
 241,238
 235,991
 2
219,533
 241,238
 (9) 219,533
 241,238
 (9)
Card145,255
 140,141
 4
 145,255
 140,141
 4
157,576
 145,255
 8
 157,576
 145,255
 8
Auto65,014
 65,627
 (1) 65,014
 65,627
 (1)62,073
 65,014
 (5) 62,073
 65,014
 (5)
Student—
 75
 NM —
 75
 NM
Total loans477,779
 466,878
 2
 477,779
 466,878
 2
465,798
 477,779
 (3) 465,798
 477,779
 (3)
Core loans419,295
 393,639
 7
 419,295
 393,639
 7
418,177
 419,295
 —
 418,177
 419,295
 —
Deposits679,154
 648,369
 5
 679,154
 648,369
 5
695,100
 679,154
 2
 695,100
 679,154
 2
Equity51,000
 51,000
 —
 51,000
 51,000
 —
52,000
 51,000
 2
 52,000
 51,000
 2
Selected balance sheet data (average)                      
Total assets$544,642
 $528,598
 3
 $541,806
 $530,338
 2
$542,337
 $544,642
 —
 $548,053
 $541,806
 1
Loans:                      
Consumer & Business Banking26,110
 24,725
 6
 25,978
 24,543
 6
26,570
 26,110
 2
 26,529
 25,978
 2
Home equity39,898
 47,339
 (16) 40,836
 48,303
 (15)33,676
 39,898
 (16) 34,446
 40,836
 (16)
Residential mortgage201,587
 187,201
 8
 200,129
 185,489
 8
191,009
 201,587
 (5) 197,332
 200,129
 (1)
Home Lending241,485
 234,540
 3
 240,965
 233,792
 3
224,685
 241,485
 (7) 231,778
 240,965
 (4)
Card142,724
 138,132
 3
 142,825
 137,674
 4
153,746
 142,724
 8
 152,447
 142,825
 7
Auto65,383
 65,474
 —
 65,622
 65,395
 —
62,236
 65,383
 (5) 62,498
 65,622
 (5)
Student—
 4,642
 NM —
 5,772
 NM
Total loans475,702
 467,513
 2
 475,390
 467,176
 2
467,237
 475,702
 (2) 473,252
 475,390
 —
Core loans414,120
 387,783
 7
 412,145
 384,419
 7
418,470
 414,120
 1
 423,315
 412,145
 3
Deposits673,761
 639,873
 5
 666,719
 631,441
 6
690,892
 673,761
 3
 685,980
 666,719
 3
Equity51,000
 51,000
 —
 51,000
 51,000
 —
52,000
 51,000
 2
 52,000
 51,000
 2
                      
Headcount(a)
131,945
 135,040
 (2)% 131,945
 135,040
 (2)%127,732
 131,945
 (3)% 127,732
 131,945
 (3)%
(a)Effective inDuring the firstthird quarter of 2018, certain operations staff wereapproximately 1,200 employees transferred from CCB to CB. The prior period amount has been revised to conform withCIB as part of the current period presentation. For further discussionreorganization of this transfer, refer to CB segment results on page 31.the Commercial Card business.





Selected metricsSelected metrics          Selected metrics          
As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,		As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions, except ratio data)2018

2017
 Change
 2018 2017 Change
2019

2018
 Change
 2019 2018 Change
Credit data and quality statistics                      
Nonaccrual loans(a)(b)
$3,854

$4,124

(7)%
$3,854

$4,124

(7)%$3,142

$3,854

(18)%
$3,142

$3,854

(18)%
                      
Net charge-offs/(recoveries)(c)
                      
Consumer & Business Banking50
 56
 (11) 103
 113
 (9)66
 50
 32
 125
 103
 21
Home equity(7) 7
 NM
 9
 54
 (83)(16) (7) (129) (16) 9
 NM
Residential mortgage(149) (4) NM
 (147) (1) NM
(12) (149) 92
 (17) (147) 88
Home Lending(156) 3
 NM
 (138) 53
 NM
(28) (156) 82
 (33) (138) 76
Card1,164
 1,037
 12
 2,334
 2,030
 15
1,240
 1,164
 7
 2,442
 2,334
 5
Auto50
 48
 4
 126
 129
 (2)42
 50
 (16) 100
 126
 (21)
Student—
 —
 NM
 —
 498
(g) 
(100)
Total net charge-offs/(recoveries)$1,108
 $1,144
 (3) $2,425
 $2,823
(g) 
(14)$1,320
 $1,108
 19
 $2,634
 $2,425
 9
                      
Net charge-off/(recovery) rate(c)
                      
Consumer & Business Banking0.77 % 0.91%   0.80% 0.93%  1.00 % 0.77%   0.95 % 0.80%  
Home equity(d)
(0.09) 0.08
   0.06
 0.30
  (0.25) (0.09)   (0.12) 0.06
  
Residential mortgage(d)
(0.33) (0.01)   (0.16) —
  (0.03) (0.33)   (0.02) (0.16)  
Home Lending(d)
(0.29) 0.01
   (0.13) 0.05
  (0.06) (0.29)   (0.03) (0.13)  
Card3.27
 3.01
   3.30
 2.98
  3.24
 3.27
   3.23
 3.30
  
Auto0.31
 0.29
   0.39
 0.40
  0.27
 0.31
   0.32
 0.39
  
Student—
 —
   —
 NM
  
Total net charge-off/(recovery) rate(d)
1.00
 1.07
   1.10
 1.32
(g) 
 1.19
 1.00
   1.18
 1.10
  
                      
30+ day delinquency rate                      
Home Lending(e)(f)
0.86% 1.02%   0.86% 1.02%  0.71 % 0.86%   0.71 % 0.86%  
Card1.65
 1.59
   1.65
 1.59
  1.71
 1.65
   1.71
 1.65
  
Auto0.77
 0.88
   0.77
 0.88
  0.82
 0.77
   0.82
 0.77
  
                      
90+ day delinquency rate — Card0.85
 0.80
   0.85
 0.80
  0.87
 0.85
   0.87
 0.85
  
                      
Allowance for loan losses                      
Consumer & Business Banking$796
 $796
 —
 $796
 $796
 —
$796
 $796
 —
 $796
 $796
 —
Home Lending, excluding PCI loans1,003
 1,153
 (13) 1,003
 1,153
 (13)1,003
 1,003
 —
 1,003
 1,003
 —
Home Lending — PCI loans(c)
2,132
 2,265
 (6) 2,132
 2,265
 (6)1,299
 2,132
 (39) 1,299
 2,132
 (39)
Card4,884
 4,384
 11
 4,884
 4,384
 11
5,383
 4,884
 10
 5,383
 4,884
 10
Auto464
 499
 (7) 464
 499
 (7)465
 464
 —
 465
 464
 —
Total allowance for loan losses(c)
$9,279
 $9,097
 2 % $9,279
 $9,097
 2 %$8,946
 $9,279
 (4)% $8,946
 $9,279
 (4)%
(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, 20182019 and 2017,2018, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $1.8 billion and $3.3 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-offscharge-offs/(recoveries) and the net charge-offcharge-off/(recovery) rates for the three months ended June 30, 2019 and 2018, and 2017, excluded $73$39 million and $22$73 million, respectively, and for six months ended June 30, 2019 and 2018, and 2017, excluded $93$89 million and $46$93 million, respectively, of write-offs in the PCI portfolio. These write-offs decreased the allowance for loan losses for PCI loans. For further information on PCI write-offs, refer to Summary of changes in the allowance for credit losses on page 68.
(d)Excludes the impact of PCI loans. For the three months ended June 30, 20182019 and 2017,2018, the net charge-off/(recovery) rates including the impact of PCI loans were as follows: (1) home equity of (0.07)(0.19)% and 0.06%(0.07)%, respectively; (2) residential mortgage of (0.30)(0.03)% and (0.01)(0.30)%, respectively; (3) Home Lending of (0.26)(0.05)% and 0.01%(0.26)%, respectively; and (4) total CCB of 0.93%1.14% and 0.99%0.93%, respectively. For the six months ended June 30, 20182019 and 2017,2018, the net charge-off/(recovery) rates included impact of PCI loans were as follows: (1) home equity of 0.04%(0.09)% and 0.23%0.04%, respectively; (2) residential mortgage of (0.15)(0.02)% and -%(0.15)%, respectively; (3) Home Lending of (0.12)(0.03)% and 0.05%(0.12)%, respectively; and (4) total CCB of 1.03%1.13% and 1.23%1.03%, respectively.
(e)At June 30, 20182019 and 2017,2018, excluded mortgage loans insured by U.S. government agencies of $5.0$2.9 billion and $6.0$5.0 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%8.71% and 9.06%9.40% at June 30, 20182019 and 2017,2018, respectively.
(g)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%.




Selected metricsSelected metrics          Selected metrics          
As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,		As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in billions, except ratios and where otherwise noted)2018
 2017
 Change
 2018
 2017
 Change
2019
 2018
 Change
 2019
 2018
 Change
Business Metrics                      
Number of branches5,091
 5,217
 (2)% 5,091
 5,217
 (2)%4,970
 5,091
 (2)% 4,970
 5,091
 (2)%
Active digital customers
(in thousands)(a)
47,952
 45,876
 5
 47,952
 45,876
 5
51,032
 47,952
 6
 51,032
 47,952
 6
Active mobile customers
(in thousands)(b)
31,651
 28,386
 12
 31,651
 28,386
 12
35,392
 31,651
 12
 35,392
 31,651
 12
Debit and credit card sales volume(c)
$255.0

$231.3

10
 $487.4

$440.7
 11
$281.5

$255.0

10
 $536.6

$487.4
 10
                      
Consumer & Business Banking                      
Average deposits$659.8
 $625.4
 5
 $653.1
 $617.3
 6
$676.7
 $659.8
 3
 $672.6
 $653.1
 3
Deposit margin2.36% 1.96%   2.28% 1.92%  2.60% 2.36%   2.61% 2.28%  
Business banking origination volume$1.9
 $2.2
 (12) $3.6
 $3.9
 (8)$1.7
 $1.9
 (9) $3.2
 $3.6
 (10)
Client investment assets283.7
 253.0
 12
 283.7
 253.0
 12
328.1
 283.7
 16
 328.1
 283.7
 16
                      
Home Lending                      
Mortgage origination volume by channel                      
Retail$10.4
 $9.7
 7
 $18.7
 $18.7
 —
$12.5
 $10.4
 20
 $20.4
 $18.7
 9
Correspondent11.1
 14.2
 (22) 21.0
 27.6
 (24)12.0
 11.1
 8
 19.1
 21.0
 (9)
Total mortgage origination volume(d)(c)
$21.5
 $23.9
 (10) $39.7
 $46.3
 (14)$24.5
 $21.5
 14
 $39.5
 $39.7
 (1)
                      
Total loans serviced (period-end)$802.6
 $827.8
 (3) $802.6
 $827.8
 (3)$780.1
 $802.6
 (3) $780.1
 $802.6
 (3)
Third-party mortgage loans serviced (period-end)533.0
 568.0
 (6) 533.0
 568.0
 (6)526.6
 533.0
 (1) 526.6
 533.0
 (1)
MSR carrying value (period-end)6.2
 5.8
 7
 6.2
 5.8
 7
5.1
 6.2
 (18) 5.1
 6.2
 (18)
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)1.16% 1.02%   1.16% 1.02%  0.97% 1.16%   0.97% 1.16%  
                      
MSR revenue multiple(e)(d)
3.31x 2.91x   3.22x 2.91x  2.69x 3.31x   2.77x 3.22x  
                      
Card, excluding Commercial Card                      
Credit card sales volume$174.0
 $156.8
 11
 $331.1
 $296.5
 12
$192.5
 $174.0
 11
 $365.0
 $331.1
 10
New accounts opened (in millions)1.9
 2.1
 (10) 3.9
 4.6
 (15)
                      
Card Services                      
Net revenue rate10.38% 10.53%   11.00% 10.34%  11.48% 10.38%   11.55% 11.00%  
                      
Merchant Services                      
Merchant processing volume$330.8
 $294.4
 12
 $647.1
 $568.7
 14
$371.6
 $330.8
 12
 $728.1
 $647.1
 13
                      
Auto                      
Loan and lease origination volume$8.3
 $8.3
 —
 $16.7
 $16.3
 2
$8.5
 $8.3
 2
 $16.4
 $16.7
 (2)
Average Auto operating lease assets18.4
 14.7
 25 % 18.0
 14.2
 26 %
Average auto operating lease assets21.3
 18.4
 16 % 21.1
 18.0
 17 %
(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)The prior period amounts have been revised to conform with the current period presentation.
(d)Firmwide mortgage origination volume was $23.7$26.3 billion and $26.2$23.7 billion for the three months ended June 30, 2019 and 2018, respectively, and 2017, respectively,$42.7 billion and $43.7 billion and $51.8 billion for the six months ended June 30, 20182019 and 2017,2018, respectively.
(e)(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).




CORPORATE & INVESTMENT BANK
For a discussion of the business profile of CIB, refer to pages 62–6666–70 of JPMorgan Chase’s 2017 Annual Report2018 Form 10-K and Line of Business Metrics on page 177.
Effective January 1, 2018, the Firm adopted several new accounting standards; the guidance which had the most significant impact on the CIB segment results was revenue recognition, and recognition and measurement of financial assets. The revenue recognition guidance was applied retrospectively and, accordingly, prior period amounts were revised. For additional information, refer to Note 1.
173.
Selected income statement dataSelected income statement data        Selected income statement data        
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions, except ratios)2018 2017 Change 2018 2017 Change2019 2018 Change 2019 2018 Change
Revenue                      
Investment banking fees$2,139
 $1,839
 16 % $3,835
 $3,714
 3 %$1,846
 $2,139
 (14)% $3,690
 $3,835
 (4)%
Principal transactions3,666
 2,928
 25
 7,695
 6,435
 20
3,885
 3,666
 6
 8,048
 7,695
 5
Lending- and deposit-related fees382
 387
 (1) 763
 775
 (2)374
 382
 (2) 735
 763
 (4)
Asset management, administration and commissions1,155
 1,068
 8
 2,286
 2,120
 8
1,149
 1,155
 (1) 2,250
 2,286
 (2)
All other income190
 258
 (26) 870
 435
 100
229
 190
 21
 423
 870
 (51)
Noninterest revenue7,532
 6,480
 16
 15,449
 13,479
 15
7,483
 7,532
 (1) 15,146
 15,449
 (2)
Net interest income2,391
 2,445
 (2) 4,957
 5,045
 (2)2,158
 2,391
 (10) 4,343
 4,957
 (12)
Total net revenue(a)
9,923
 8,925
 11
 20,406
 18,524
 10
9,641
 9,923
 (3) 19,489
 20,406
 (4)
                      
Provision for credit losses58
 (53) NM
 (100) (149) 33
—
 58
 NM
 87
 (100) NM
                      
Noninterest expense                      
Compensation expense2,720
 2,451
 11
 5,756
 5,250
 10
2,698
 2,720
 (1) 5,647
 5,756
 (2)
Noncompensation expense2,683
 2,426
 11
 5,306
 4,811
 10
2,789
 2,683
 4
 5,293
 5,306
 —
Total noninterest expense5,403
 4,877
 11
 11,062
 10,061
 10
5,487
 5,403
 2
 10,940
 11,062
 (1)
Income before income tax expense4,462
 4,101
 9
 9,444
 8,612
 10
4,154
 4,462
 (7) 8,462
 9,444
 (10)
Income tax expense1,264
 1,391
 (9) 2,272
 2,661
 (15)1,219
 1,264
 (4) 2,276
 2,272
 —
Net income$3,198
 $2,710
 18 % $7,172
 $5,951
 21 %$2,935
 $3,198
 (8)% $6,186
 $7,172
 (14)%
Financial ratios                      
Return on equity17% 15%   20% 16%  14% 17%   15% 20%  
Overhead ratio54
 55
   54
 54
  57
 54
   56
 54
  
Compensation expense as percentage of total net revenue27
 27
   28
 28
  28
 27
   29
 28
  
(a)IncludedIncludes 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; and tax-exempt income from municipal bonds of $428$547 million and $554$428 million for the three months ended June 30, 20182019 and 2017,2018, respectively, and $1.1 billion and $833 million and $1.1 billion for the six months ended June 30, 20182019 and 2017,2018, respectively.
Selected income statement dataSelected income statement data        Selected income statement data        
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions)2018 2017 Change 2018 2017 Change2019 2018 Change 2019 2018 Change
Revenue by business                      
Investment Banking$1,949
 $1,731
 13 % $3,536
 $3,445
 3 %$1,776
 $1,949
 (9)% $3,521
 $3,536
 — %
Treasury Services1,181
 1,055
 12
 2,297
 2,036
 13
1,135
 1,181
 (4) 2,282
 2,297
 (1)
Lending321
 373
 (14) 623
 762
 (18)337
 321
 5
 677
 623
 9
Total Banking3,451
 3,159
 9
 6,456
 6,243
 3
3,248
 3,451
 (6) 6,480
 6,456
 —
Fixed Income Markets3,453
 3,216
 7
 8,006
 7,431
 8
3,690
 3,453
 7
 7,415
 8,006
 (7)
Equity Markets1,959
 1,586
 24
 3,976
 3,192
 25
1,728
 1,959
 (12) 3,469
 3,976
 (13)
Securities Services1,103
 982
 12
 2,162
 1,898
 14
1,045
 1,103
 (5) 2,059
 2,162
 (5)
Credit Adjustments & Other(a)
(43) (18) (139) (194) (240) 19
(70) (43) (63) 66
 (194) NM
Total Markets & Investor Services6,472
 5,766
 12
 13,950
 12,281
 14
Total Markets & Securities Services(b)
6,393
 6,472
 (1) 13,009
 13,950
 (7)
Total net revenue$9,923
 $8,925
 11 % $20,406
 $18,524
 10 %$9,641
 $9,923
 (3)% $19,489
 $20,406
 (4)%
(a)Consists primarily of credit valuation adjustments (“CVA”) managed centrally within CIB and funding valuation adjustments (“FVA”) on derivatives. Results are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.
(b)Formerly Markets & Investor Services.








Quarterly results
Net income was $3.2$2.9 billion, up 18%down 8%.
Net revenue was $9.9$9.6 billion, up 11%down 3%.
Banking revenue was $3.5$3.2 billion, up 9%down 6%.
Investment bankingBanking revenue was $1.9$1.8 billion, up 13%down 9%, driven by higher equity underwriting and advisory fees.reflecting lower fees across products. The Firm maintained its #1 ranking for Global Investment Banking fees, according to Dealogic.
–Debt underwriting fees were $816 million, down 13%, driven by declines in industry-wide fee levels.
–Advisory fees were $525 million, down 16% and Equity underwriting fees were $505 million, down 11%, driven by declines in industry-wide fee levels and when compared to a strong prior year.
Treasury Services revenue was $1.1 billion, down 4%, predominantly driven by deposit margin compression, largely offset by growth in operating deposits and higher fees were $570on increased payments volume.
Lending revenue was $337 million, up 49%5%, predominantly driven by a higher share of fees, primarily due to strong performancenet interest income reflecting growth in the IPO and convertible markets.Advisory fees were $626 million, up 24%, driven by a higher number of large completed transactions. Debt underwriting fees were $943 million,loan balances.
Markets & Securities Services revenue was $6.4 billion, down 1%. Markets revenue was $5.4 billion, flat compared to the prior year.Treasury Servicesyear, and included a gain from the IPO of a strategic investment in Tradeweb. Excluding this gain, total Markets revenue was $1.2 billion, up 12%, driven by the impact of higher interest rates and growth in deposits. LendingFixed Income Markets revenue was $321 million,were down 14%, predominantly driven by lower net interest income primarily reflecting a change in the portfolio composition6% and overall spread tightening as well as higher gains in the prior year on securities received from restructurings.3% respectively.
Markets & Investor Services revenue was $6.5 billion, up 12%. Fixed Income Markets revenue was $3.5$3.7 billion up 7%. Excluding the reduction of approximately $160 millionreflecting relative weakness in tax-equivalent adjustments as a result of the TCJA, Fixed Income Markets revenue was up 12%. Fixed Income Markets reflected solid performanceEMEA across products, with goodlargely offset by increased client activity in North America Rates and improved Commodities revenue comparedagency mortgage trading due to a challenging prior year. the changing rate environment.
Equity Markets revenue was $2.0$1.7 billion, up 24%,down 12% compared to a strong prior year, predominantly driven by strength across products, predominantlylower client activity in derivatives and prime brokerage. derivatives.
Securities Services revenue was $1.1$1.0 billion, up 12%down 5%, predominantly driven by higher interest ratesdeposit margin compression and deposit growth, as well as higher asset-based fees driventhe impact of a business exit, partially offset by netincreased client inflows and higher market levels.activity.
The provision for credit losses was an expense ofzero, compared with $58 million reflecting net portfolio activity, including new exposures and loan sales. The prior year was a benefit of $53 million primarily driven by a reduction in the allowance for credit losses in the Oil & Gas portfolio.prior year.
Noninterest expense was $5.4$5.5 billion, up 11%2%, predominantly drivenreflecting higher legal expense, largely offset by higherlower performance-related compensation volume-related transaction costs and investments in technology.

expense.
 
Year-to-date results
Net income was $7.2$6.2 billion, up 21%down 14%.
Net revenue was $20.4$19.5 billion, up 10%down 4%.
Banking revenue was $6.5 billion, up 3%. flat compared to the prior year.
Investment bankingBanking revenue was $3.5 billion, up 3%,flat compared to the prior year, driven by higher advisory andlower equity underwriting and advisory fees, largelypartially offset by lowerhigher debt underwriting fees. The Firm maintained its #1 ranking for Global Investment Banking fees with overall share gains, according to Dealogic. Advisory fees were $1.2 billion, up 20%, driven by a higher number of large completed transactions. Equity underwriting fees were $916 million, up 14%, driven by a higher share of fees, primarily due to strong performance in the IPO market. Debt underwriting fees were $1.7 billion, down 10%, primarily driven by declines in industry-wide fee levels and a lower share in leveraged finance.
–Equity underwriting fees were $770 million, down 16% and Advisory fees were $1.2 billion, down 3%, driven by declines in industry-wide fee levels.
–Although industry-wide fee levels declined, Debt underwriting fees of $1.8 billion were up 2%, driven by large acquisition financing deals.
Treasury Services revenue was $2.3 billion, down 1%, reflecting deposit margin compression offset by growth in operating deposits and higher fees on increased payments volume.
Lending revenue was $677 million, up 13%9%, predominantly driven by the impact of higher interest rates and growth in deposits. Lending revenue was $623 million, down 18%, driven by lower net interest income primarily reflecting a changegrowth in the portfolio composition and overall spread tightening as well as higher gains in the prior year on securities received from restructurings.loan balances.
Markets & InvestorSecurities Services revenue was $14.0$13.0 billion, up 14%down 7%. TheMarkets revenue was $10.9 billion, which included a gain from the IPO of a strategic investment in Tradeweb. In addition, prior year results included approximately $500 million of fair value gains related to the adoption in the first quarter of 2018 of the new recognition and measurement accounting guidance for certain equity investments previously held at cost,cost. Excluding these gains, total Markets revenue and a reduction of approximately $310 million in tax-equivalent adjustments as a result of the TCJA. Fixed Income Markets revenue were down 8% and 6% respectively.
Fixed Income Markets revenue was $8.0$7.4 billion up 8%. Excluding the impact of these fair value gains and tax-equivalent adjustments, Fixed Income Marketsreflecting lower revenue was up 5%, with strong performance in Currencies & Emerging Markets and Commodities, largelyRates. This decline was partially offset by lowerhigher revenue in Credit. agency mortgage trading due to the changing rate environment.
Equity Markets revenue was $4.0$3.5 billion, up 25%,down 13% compared to a strong prior year, predominantly driven by strength across derivatives, prime brokerage and Cash Equities. lower client activity in derivatives.
Securities Services revenue was $2.2$2.1 billion, up 14%down 5%, predominantly driven by deposit margin compression and the impact of higher interest rates and deposit growth as well as higher asset-based fees drivena business exit, partially offset by netincreased client inflows and higher market levels.activity.
Credit Adjustments & Other was a gain of $66 million, compared with a loss of $194 million in the prior year.
The provision for credit losses was $87 million reflecting select C&I client downgrades. The prior year was a benefit of $100 million, primarily driven byreflecting a reduction in the allowance for credit losses primarily driven by a single name in the Oil & Gas portfolio, related to a single name, partially offset by net portfolio activity. The prior year was a benefit of $149 million primarily driven by a reduction in the allowance for credit losses in the Oil & Gas portfolio.
Noninterest expense was $11.1$10.9 billion, up 10%down 1%, largely driven by higherreflecting lower performance-related compensation expense volume-related transaction costs and lower FDIC charges partially offset by higher investments in technology.technology and higher legal expense.


Selected metricsSelected metrics          Selected metrics          
As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,		As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions, except headcount)2018 2017 Change 2018 2017 Change2019 2018 Change 2019 2018 Change
Selected balance sheet data (period-end)                      
Assets$908,954
 $847,377
 7 % $908,954
 $847,377
 7 %$962,498
 $908,954
 6 % $962,498
 $908,954
 6 %
Loans:                      
Loans retained(a)
116,645
 108,935
 7
 116,645
 108,935
 7
123,074
 116,645
 6
 123,074
 116,645
 6
Loans held-for-sale and loans at fair value6,254
 7,168
 (13) 6,254
 7,168
 (13)6,838
 6,254
 9
 6,838
 6,254
 9
Total loans122,899
 116,103
 6
 122,899
 116,103
 6
129,912
 122,899
 6
 129,912
 122,899
 6
Core loans122,574
 115,764
 6
 122,574
 115,764
 6
129,747
 122,574
 6
 129,747
 122,574
 6
Equity70,000
 70,000
 —
 70,000
 70,000
 —
80,000
 70,000
 14
 80,000
 70,000
 14
Selected balance sheet data (average)                      
Assets$937,217
 $864,686
 8
 $923,756
 $851,425
 8
$992,792
 $937,217
 6
 $976,408
 $923,756
 6
Trading assets-debt and equity instruments358,611
 351,678
 2
 356,750
 340,073
 5
421,775
 358,611
 18
 401,656
 356,750
 13
Trading assets-derivative receivables60,623
 54,937
 10
 60,393
 56,931
 6
48,815
 60,623
 (19) 49,707
 60,393
 (18)
Loans:                      
Loans retained(a)
$113,950
 $110,011
 4
 $111,665
 $109,204
 2
$124,194
 $113,950
 9
 $125,585
 $111,665
 12
Loans held-for-sale and loans at fair value5,961
 5,789
 3
 5,722
 5,550
 3
7,763
 5,961
 30
 8,186
 5,722
 43
Total loans$119,911
 $115,800
 4
 $117,387
 $114,754
 2
$131,957
 $119,911
 10
 $133,771
 $117,387
 14
Core loans119,637
 115,434
 4
 117,090
 114,375
 2
131,792
 119,637
 10
 133,596
 117,090
 14
Equity70,000
 70,000
 —
 70,000
 70,000
 —
80,000
 70,000
 14
 80,000
 70,000
 14
Headcount(b)51,400
 49,228
 4 % 51,400
 49,228
 4 %54,959
 51,400
 7 % 54,959
 51,400
 7 %
(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)During the third quarter of 2018 approximately 1,200 employees transferred from CCB to CIB as part of the reorganization of the Commercial Card business.
Selected metrics                      
As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,		As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions, except ratios)2018 2017 Change 2018 2017 Change2019 2018 Change 2019 2018 Change
Credit data and quality statistics                      
Net charge-offs/(recoveries)$114
 $47
 143 % $134
 $29
 362 %$72
 $114
 (37)% $102
 $134
 (24)%
Nonperforming assets:                      
Nonaccrual loans:                      
Nonaccrual loans retained(a)
$352
 $462
 (24) $352
 $462
 (24)$569
 $352
 62 % $569
 $352
 62
Nonaccrual loans held-for-sale and loans at fair value
175
 31
 465
 175
 31
 465
370
 175
 111
 370
 175
 111
Total nonaccrual loans527
 493
 7
 527
 493
 7
939
 527
 78
 939
 527
 78
Derivative receivables112
 170
 (34) 112
 170
 (34)39
 112
 (65) 39
 112
 (65)
Assets acquired in loan satisfactions104
 71
 46
 104
 71
 46
58
 104
 (44) 58
 104
 (44)
Total nonperforming assets$743
 $734
 1
 $743
 $734
 1
$1,036
 $743
 39
 $1,036
 $743
 39
Allowance for credit losses:                      
Allowance for loan losses$1,043
 $1,298
 (20) $1,043
 $1,298
 (20)$1,131
 $1,043
 8
 $1,131
 $1,043
 8
Allowance for lending-related commitments828
 745
 11
 828
 745
 11
807
 828
 (3) 807
 828
 (3)
Total allowance for credit losses$1,871
 $2,043
 (8)% $1,871
 $2,043
 (8)%$1,938
 $1,871
 4 % $1,938
 $1,871
 4 %
Net charge-off/(recovery) rate(b)
0.40% 0.17%   0.24% 0.05%  0.23% 0.40%   0.16% 0.24%  
Allowance for loan losses to period-end loans retained0.89
 1.19
   0.89
 1.19
  0.92
 0.89
   0.92
 0.89
  
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits(c)
1.27
 1.83
   1.27
 1.83
  1.27
 1.27
   1.27
 1.27
  
Allowance for loan losses to nonaccrual loans retained(a)
296
 281
   296
 281
  199
 296
   199
 296
  
Nonaccrual loans to total period-end loans0.43% 0.42%   0.43% 0.42%  0.72% 0.43%   0.72% 0.43%  
(a)Allowance for loan losses of $141$147 million and $164$141 million were held against these nonaccrual loans at June 30, 20182019 and 2017,2018, respectively.
(b)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
(c)Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB’s allowance coverage ratio.


Investment banking feesInvestment banking fees          Investment banking fees          
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions)2018 2017 Change 2018 2017 Change2019 2018 Change 2019 2018 Change
Advisory$626
 $503
 24 % $1,201
 $1,004
 20 %$525
 $626
 (16)% $1,169
 $1,201
 (3)%
Equity underwriting570
 382
 49
 916
 807
 14
505
 570
 (11) 770
 916
 (16)
Debt underwriting(a)
943
 954
 (1) 1,718
 1,903
 (10)816
 943
 (13) 1,751
 1,718
 2
Total investment banking fees$2,139
 $1,839
 16 % $3,835
 $3,714
 3 %$1,846
 $2,139
 (14)% $3,690
 $3,835
 (4)%
(a)Includes loan syndications.
League table results – wallet shareLeague table results – wallet share   League table results – wallet share    
Three months ended June 30, 2018 Full-year 2017Three months ended June 30, 2019 Full-year 2018
RankShare RankShareRankShare RankShare
Based on fees(a)
         
Long-term debt(b)
         
Global#1
 7.4 #1
 7.6#1
 7.3 #1
 7.2%
U.S.2
 11.4 2
 10.91
 10.7 1
 11.2
Equity and equity-related(c)
         
Global1
 10.2 2
 7.11
 9.7 1
 9.0
U.S.1
 13.3 1
 11.62
 11.6 1
 12.3
M&A(d)
         
Global2
 9.0 2
 8.52
 9.3 2
 8.7
U.S.2
 10.0 2
 9.22
 9.7 2
 8.9
Loan syndications         
Global1
 9.7 1
 9.42
 8.9 1
 9.5
U.S.1
 11.3 1
 11.02
 10.3 1
 12.0
Global investment banking fees(e)
#1
 9.0 #1
 8.1#1
 8.7 #1
 8.6%
(a)Source: Dealogic as of July 1, 2018.2019. Reflects the ranking of revenue wallet and market share.
(b)Long-term debt rankings include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, asset-backed securities (“ABS”) and mortgage-backed securities (“MBS”); and exclude money market, short-term debt, and U.S. municipal securities.
(c)Global equity and equity-related ranking includes rights offerings and Chinese A-Shares.
(d)Global M&A reflect the removal ofexcludes any withdrawn transactions. U.S. M&A revenue wallet represents wallet from client parents based in the U.S.
(e)Global investment banking fees exclude money market, short-term debt and shelf deals.



Markets revenue
The following table summarizes select income statement data for the Markets businesses. Markets includes both Fixed Income Markets and Equity Markets. Markets revenue comprises principal transactions, fees, commissions and other income, as well as net interest income. The Firm assesses its Markets business performance on a total revenue basis, as offsets may occur across revenue line items. For example, securities that generate net interest income may be risk-managed by derivatives that are
 
recorded in principal transactions.transactions revenue. For a description of the composition of these income statement line items, refer to Notes 5 and 6. For further information, refer to Markets revenue on page 6569 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
For the periods presented below, the predominant source of principal transactions revenue was the amount recognized upon executing new transactions.
 Three months ended June 30, Three months ended June 30,
 2019 2018

(in millions)		Fixed Income MarketsEquity MarketsTotal Markets Fixed Income MarketsEquity MarketsTotal Markets
Principal transactions$2,431
$1,608
$4,039
 $2,214
$1,664
$3,878
Lending- and deposit-related fees49
2
51
 49
2
51
Asset management, administration and commissions97
453
550
 104
460
564
All other income173
(19)154
 171
(6)165
Noninterest revenue2,750
2,044
4,794
 2,538
2,120
4,658
Net interest income(a)
940
(316)624
 915
(161)754
Total net revenue$3,690
$1,728
$5,418
 $3,453
$1,959
$5,412
 Three months ended June 30, Three months ended June 30,
 2018 2017

(in millions)
Fixed Income MarketsEquity MarketsTotal Markets Fixed Income MarketsEquity MarketsTotal Markets
Principal transactions$2,214
$1,664
$3,878
 $1,851
$1,109
$2,960
Lending- and deposit-related fees49
2
51
 48
1
49
Asset management, administration and commissions104
460
564
 103
410
513
All other income171
(6)165
 207
(2)205
Noninterest revenue2,538
2,120
4,658
 2,209
1,518
3,727
Net interest income(a)
915
(161)754
 1,007
68
1,075
Total net revenue$3,453
$1,959
$5,412
 $3,216
$1,586
$4,802
Six months ended June 30, Six months ended June 30,Six months ended June 30, Six months ended June 30,
2018 20172019 2018

(in millions)
Fixed Income MarketsEquity MarketsTotal Markets Fixed Income MarketsEquity MarketsTotal MarketsFixed Income MarketsEquity MarketsTotal Markets Fixed Income MarketsEquity MarketsTotal Markets
Principal transactions$4,946
$3,276
$8,222
 $4,552
$2,118
$6,670
$4,913
$3,165
$8,078
 $4,946
$3,276
$8,222
Lending- and deposit-related fees96
3
99
 97
2
99
98
4
102
 96
3
99
Asset management, administration and commissions217
918
1,135
 207
833
1,040
200
887
1,087
 217
918
1,135
All other income731
11
742
 384
(9)375
392
(23)369
 731
11
742
Noninterest revenue5,990
4,208
10,198
 5,240
2,944
8,184
5,603
4,033
9,636
 5,990
4,208
10,198
Net interest income(a)
2,016
(232)1,784
 2,191
248
2,439
1,812
(564)1,248
 2,016
(232)1,784
Total net revenue$8,006
$3,976
$11,982
 $7,431
$3,192
$10,623
$7,415
$3,469
$10,884
 $8,006
$3,976
$11,982
(a)Declines in Markets net interest income were driven by higher funding costs.


Selected metrics                      
As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,		As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions, except where otherwise noted)2018 2017 Change 2018 2017 Change2019 2018 Change 2019 2018 Change
Assets under custody (“AUC”) by asset class (period-end)
(in billions):
                      
Fixed Income$12,611

$12,662
 —
 $12,611
 $12,662
 —
$13,056
 $12,611
 4% $13,056
 $12,611
 4%
Equity8,791

7,214
 22
 8,791
 7,214
 22
9,352
 8,791
 6
 9,352
 8,791
 6
Other(a)
2,782

2,258
 23
 2,782
 2,258
 23
3,042
 2,782
 9
 3,042
 2,782
 9
Total AUC$24,184

$22,134
 9
 $24,184
 $22,134
 9
$25,450

$24,184
 5
 $25,450
 $24,184
 5
Client deposits and other third party liabilities (average)(b)
$433,646

$404,920
 7
 $428,502
 $398,354
 8
Client deposits and other third-party liabilities (average)(b)
$458,237

$433,646
 6% $451,185
 $428,502
 5%
(a)Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts.
(b)Client deposits and other third partythird-party liabilities pertain to the Treasury Services and Securities Services businesses.
International metrics                      
As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,		As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions, except where
otherwise noted)
2018 2017 Change 2018 2017 Change2019 
2018(c)
 Change 2019 
2018(c)
 Change
Total net revenue(a)
                      
Europe/Middle East/Africa$3,420
 $3,034
 13 % $7,076
 $6,223
 14 %$2,910
 $3,470
 (16)% $6,063
 $7,163
 (15)%
Asia/Pacific1,410
 1,034
 36
 2,881
 2,273
 27
1,296
 1,341
 (3) 2,715
 2,763
 (2)
Latin America/Caribbean329
 244
 35
 743
 585
 27
398
 369
 8
 801
 805
 —
Total international net revenue5,159
 4,312
 20
 10,700
 9,081
 18
4,604
 5,180
 (11) 9,579
 10,731
 (11)
North America4,764
 4,613
 3
 9,706
 9,443
 3
5,037
 4,743
 6
 9,910
 9,675
 2
Total net revenue$9,923
 $8,925
 11
 $20,406
 $18,524
 10
$9,641
 $9,923
 (3) $19,489
 $20,406
 (4)
                      
Loans retained (period-end)(a)
Loans retained (period-end)(a)
          
Loans retained (period-end)(a)
          
Europe/Middle East/Africa$26,971
 $26,690
 1
 $26,971
 $26,690
 1
$24,665
 $26,342
 (6) $24,665
 $26,342
 (6)
Asia/Pacific17,255
 14,709
 17
 17,255
 14,709
 17
15,302
 16,983
 (10) 15,302
 16,983
 (10)
Latin America/Caribbean4,046
 6,196
 (35) 4,046
 6,196
 (35)7,090
 5,621
 26
 7,090
 5,621
 26
Total international loans48,272
 47,595
 1
 48,272
 47,595
 1
47,057
 48,946
 (4) 47,057
 48,946
 (4)
North America68,373
 61,340
 11
 68,373
 61,340
 11
76,017
 67,699
 12
 76,017
 67,699
 12
Total loans retained(a)
$116,645
 $108,935
 7
 $116,645
 $108,935
 7
$123,074
 $116,645
 6
 $123,074
 $116,645
 6
                      
Client deposits and other third-party liabilities (average)(a)(b)
           
Client deposits and other third-party liabilities (average)(b)
           
Europe/Middle East/Africa$164,650
 $156,575
 5
 $162,046
 $150,436
 8
$175,189
 $164,735
 6
 $169,694
 $162,124
 5
Asia/Pacific81,549
 73,327
 11
 82,603
 73,544
 12
86,889
 81,465
 7
 85,990
 82,526
 4
Latin America/Caribbean27,747
 25,806
 8
 26,620
 24,934
 7
28,869
 27,747
 4
 28,180
 26,620
 6
Total international$273,946
 $255,708
 7
 $271,269
 $248,914
 9
$290,947
 $273,947
 6
 $283,864
 $271,270
 5
North America159,700
 149,212
 7
 157,233
 149,440
 5
167,290
 159,699
 5
 167,321
 157,232
 6
Total client deposits and other third-party liabilities$433,646
 $404,920
 7
 $428,502
 $398,354
 8
$458,237
 $433,646
 6
 $451,185
 $428,502
 5
                      
AUC (period-end)(a)
(in billions)
           
AUC (period-end)(b)
(in billions)
           
North America$14,942
 $13,207
 13
 $14,942
 $13,207
 13
$15,875
 $14,942
 6
 $15,875
 $14,942
 6
All other regions9,242
 8,927
 4
 9,242
 8,927
 4
9,575
 9,242
 4
 9,575
 9,242
 4
Total AUC$24,184
 $22,134
 9 % $24,184
 $22,134
 9 %$25,450
 $24,184
 5 % $25,450
 $24,184
 5 %
(a)Total net revenue is based predominantly on the domicile of the client or location of the trading desk, as applicable. Loans outstandingand loans retained (excluding loans held-for-sale and loans at fair value), are based on the location of the trading desk, booking location, or domicile of the client, as applicable.
(b)Client deposits and other third-party liabilities pertaining to the Treasury Services and Securities Services businesses, and AUC, are based predominantly on the domicile of the client.
(b)(c)Client deposits and other third party liabilities pertainThe prior period amounts have been revised to conform with the Treasury Services and Securities Services businesses.current period presentation.


COMMERCIAL BANKING
For a discussion of the business profile of CB, refer to pages 67–6971-73 of JPMorgan Chase’s 2017 Annual Report2018 Form 10-K and Line of Business Metrics on page 178.174.
Selected income statement dataSelected income statement data      Selected income statement data      
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions)2018
 2017
 Change
 2018
 2017
 Change2019
 2018
 Change
 2019
 2018
 Change
Revenue                      
Lending- and deposit-related fees$224
 $232
 (3)% $450
 $467
 (4)%$216
 $224
 (4)% $443
 $450
 (2)%
Asset management, administration and commissions16
 16
 —
 34
 34
 —
All other income(a)
393
 335
 17
 698
 681
 2
333
 409
 (19) 764
 732
 4
Noninterest revenue633
 583
 9
 1,182
 1,182
 —
549
 633
 (13) 1,207
 1,182
 2
Net interest income1,683
 1,505
 12
 3,300
 2,924
 13
1,662
 1,683
 (1) 3,342
 3,300
 1
Total net revenue(b)
2,316
 2,088
 11
 4,482
 4,106
 9
2,211
 2,316
 (5) 4,549
 4,482
 1
                      
Provision for credit losses43
 (130) NM
 38
 (167) NM
29
 43
 (33) 119
 38
 213
                      
Noninterest expense                      
Compensation expense(c)
415
 382
 9
 836
 770
 9
Noncompensation expense(c)
429
 408
 5
 852
 845
 1
Compensation expense438
 415
 6
 887
 836
 6
Noncompensation expense426
 429
 (1) 850
 852
 —
Total noninterest expense844
 790
 7
 1,688
 1,615
 5
864
 844
 2
 1,737
 1,688
 3
                      
Income before income tax expense1,429
 1,428
 —
 2,756
 2,658
 4
1,318
 1,429
 (8) 2,693
 2,756
 (2)
Income tax expense342
 526
 (35) 644
 957
 (33)322
 342
 (6) 644
 644
 —
Net income$1,087
 $902
 21 % $2,112
 $1,701
 24 %$996
 $1,087
 (8)% $2,049
 $2,112
 (3)%
(a)IncludesEffective in the first quarter of 2019, includes revenue from investment banking products, and commercial card transactions.transactions and asset management fees. The prior period amounts have been revised to conform with the current period presentation.
(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 and $131 million for the three months ended June 30, 2018 and 2017 respectively, and $209 million and $252 million for the six months ended June 30, 2018 and June 30, 2017, respectively. The decrease in taxable-equivalent adjustments reflects the impact of TCJA.
(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.
development entities that provide loans to qualified businesses in low-income communities, as well as tax-exempt income related to municipal financing activities of $100 million and $106 million for the three months ended June 30, 2019 and 2018, respectively and $194 million and $209 million for the six months ended June 30, 2019 and 2018, respectively.
Quarterly results
Net income was $1.1$1.0 billion, an increasea decrease of 21%8%.
Net revenue was $2.3$2.2 billion, an increase of 11%down 5%. Net interest income was $1.7 billion, an increase of 12%down 1%, predominantly driven by higherlower deposit margins.balances. Noninterest revenue was $633$549 million, an increasea decrease of 9%13%, largely driven by higherlower investment banking revenue from an increased numberdue to the timing of large fee transactions.
Noninterest expense was $844$864 million, an increase of 7%, predominantly driven by continued investments in banker coverage and technology.
The provision for credit losses was an expense of $43 million. The prior year was a benefit of $130 million driven by net reductions in the allowance for credit losses, including in the Oil & Gas, Natural Gas Pipelines and Metals & Mining portfolios.
Year-to-date results
Net income was $2.1 billion, an increase of 24%.
Net revenue was $4.5 billion, an increase of 9%. Net interest income was $3.3 billion, an increase of 13%, driven by higher deposit margins. Noninterest revenue was $1.2 billion, flat compared with the prior year.
Noninterest expense was $1.7 billion, an increase of 5%up 2%, driven by continued investments in banker coverage and technology.
The provision for credit losses was $29 million, compared with $43 million in the prior year.
Year-to-date results
Net income was $2.0 billion, a decrease of 3%.
Net revenue was $4.5 billion, an expenseincrease of $38 million. The prior year1%. Net interest income was a benefit$3.3 billion, an increase of $167 million,1%, driven by higher deposit margins partially offset by lower deposit balances. Noninterest revenue was $1.2 billion, up 2% driven by higher investment banking revenue, partially offset by lower deposit fees.
Noninterest expense was $1.7 billion, an increase of 3%, driven by continued investments in banker coverage and technology.
The provision for credit losses was $119 million, predominantly driven by a net reductions inaddition to the allowance for credit losses including in the Oil & Gas, Natural Gas Pipelines and Metals & Mining portfolios.

on select C&I client downgrades. The prior year was an expense of $38 million.


Selected income statement data (continued)Selected income statement data (continued)      Selected income statement data (continued)      
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions, except ratios)2018
 2017
 Change
 2018
 2017
 Change2019
 2018
 Change
 2019
 2018
 Change
Revenue by product                      
Lending$1,026
 $1,023
 — % $2,025
 $2,015
 —
$1,012
 $1,026
 (1)% $2,024
 $2,025
 — %
Treasury services1,026
 854
 20
 1,998
 1,650
 21
989
 1,026
 (4) 2,018
 1,998
 1
Investment banking(a)
254
 189
 34
 438
 405
 8
193
 254
 (24) 482
 438
 10
Other10
 22
 (55) 21
 36
 (42)17
 10
 70
 25
 21
 19
Total Commercial Banking net revenue$2,316
 $2,088
 11
 $4,482
 $4,106
 9
$2,211
 $2,316
 (5) $4,549
 $4,482
 1
                      
Investment banking revenue, gross(b)
$739
 $533
 39
 $1,308
 $1,199
 9
$592
 $739
 (20) $1,410
 $1,308
 8
                      
Revenue by client segment           
Revenue by client segments           
Middle Market Banking$919
 $839
 10
 $1,814
 $1,623
 12
$939
 $919
 2
 $1,890
 $1,814
 4
Corporate Client Banking807
 662
 22
 1,494
 1,328
 13
709
 807
 (12) 1,525
 1,494
 2
Commercial Term Lending344
 364
 (5) 696
 731
 (5)
Real Estate Banking170
 147
 16
 334
 281
 19
Other76
 76
 —
 144
 143
 1
Commercial Real Estate Banking(c)
538
 559
 (4) 1,085
 1,119
 (3)
Other(c)
25
 31
 (19) 49
 55
 (11)
Total Commercial Banking net revenue$2,316
 $2,088
 11 % $4,482
 $4,106
 9 %$2,211
 $2,316
 (5)% $4,549
 $4,482
 1 %
                      
Financial ratios                      
Return on equity21% 17%   20% 16%  17% 21%   18% 20%  
Overhead ratio36
 38
   38
 39
  39
 36
   38
 38
  
(a)Includes total FirmCB’s share of revenue from investment banking products sold to CB clients net of revenue sharing withthrough the CIB.
(b)Represents total FirmFor discussion of revenue from investment banking products soldsharing, refer to CB clients. As a resultpage 60 of the adoption of the revenue recognition guidance, prior period amounts have been revised to conform with the current period presentation. For additional information, refer to Note 1.2018 Form 10-K.



Selected metrics      
 As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions, except headcount)2018
2017
Change
 20182017Change
Selected balance sheet data (period-end)       
Total assets$220,232
$220,676
— % $220,232
$220,676
— %
Loans:       
Loans retained205,834
197,912
4
 205,834
197,912
4
Loans held-for-sale and loans at fair value1,576
1,661
(5) 1,576
1,661
(5)
Total loans$207,410
$199,573
4
 $207,410
$199,573
4
Core loans207,238
199,319
4
 207,238
199,319
4
Equity20,000
20,000
—
 20,000
20,000
—
        
Period-end loans by client segment       
Middle Market Banking$58,301
$56,377
3
 $58,301
$56,377
3
Corporate Client Banking48,885
45,918
6
 48,885
45,918
6
Commercial Term Lending75,621
73,760
3
 75,621
73,760
3
Real Estate Banking17,458
16,726
4
 17,458
16,726
4
Other7,145
6,792
5
 7,145
6,792
5
Total Commercial Banking loans$207,410
$199,573
4
 $207,410
$199,573
4
        
Selected balance sheet data (average)       
Total assets$218,396
$217,694
—
 $217,781
$215,750
1
Loans:       
Loans retained204,239
196,454
4
 203,109
193,630
5
Loans held-for-sale and loans at fair value1,381
1,402
(1) 896
1,061
(16)
Total loans$205,620
$197,856
4
 $204,005
$194,691
5
Core loans205,440
197,567
4
 203,809
194,391
5
        
Average loans by client segment       
Middle Market Banking$57,346
$55,651
3
 $57,052
$54,963
4
Corporate Client Banking48,150
46,483
4
 46,962
45,041
4
Commercial Term Lending75,307
73,081
3
 75,126
72,484
4
Real Estate Banking17,614
16,139
9
 17,729
15,834
12
Other7,203
6,502
11
 7,136
6,369
12
Total Commercial Banking loans$205,620
$197,856
4
 $204,005
$194,691
5
        
Client deposits and other third-party liabilities$170,745
$173,214
(1) $173,168
$174,987
(1)
Equity20,000
20,000
—
 20,000
20,000
—
        
Headcount(a)
10,579
9,857
7 % 10,579
9,857
7 %
(a)(c)Effective in the first quarter of 2018, certain Operations2019, client segment data includes Commercial Real Estate Banking which comprises the former Commercial Term Lending and Compliance staff were transferred from CCBReal Estate Banking client segments, and Corporate, respectively, to CB.Community Development Banking (previously part of Other). The prior period amounts have been revised to conform with the current period presentation. For a further discussion of this transfer, refer to page 31, Selected income statement data, footnote (c).




Selected metrics      
 As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions, except headcount)2019
2018
Change
 20192018Change
Selected balance sheet data (period-end)       
Total assets$220,712
$220,232
— % $220,712
$220,232
— %
Loans:       
Loans retained208,323
205,834
1
 208,323
205,834
1
Loans held-for-sale and loans at fair value1,284
1,576
(19) 1,284
1,576
(19)
Total loans$209,607
$207,410
1
 $209,607
$207,410
1
Core loans209,475
207,238
1
 209,475
207,238
1
Equity22,000
20,000
10
 22,000
20,000
10
        
Period-end loans by client segment       
Middle Market Banking$56,346
$58,301
(3) $56,346
$58,301
(3)
Corporate Client Banking51,500
48,885
5
 51,500
48,885
5
Commercial Real Estate Banking(a)
100,751
98,808
2
 100,751
98,808
2
Other(a)
1,010
1,416
(29) 1,010
1,416
(29)
Total Commercial Banking loans$209,607
$207,410
1
 $209,607
$207,410
1
        
Selected balance sheet data (average)       
Total assets$218,760
$218,396
—
 $218,530
$217,781
—
Loans:       
Loans retained206,771
204,239
1
 205,623
203,109
1
Loans held-for-sale and loans at fair value701
1,381
(49) 1,165
896
30
Total loans$207,472
$205,620
1
 $206,788
$204,005
1
Core loans207,336
205,440
1
 206,646
203,809
1
        
Average loans by client segment       
Middle Market Banking$57,155
$57,346
—
 $56,940
$57,052
—
Corporate Client Banking48,656
48,150
1
 48,400
46,962
3
Commercial Real Estate Banking(a)
100,671
98,601
2
 100,469
98,500
2
Other(a)
990
1,523
(35) 979
1,491
(34)
Total Commercial Banking loans$207,472
$205,620
1
 $206,788
$204,005
1
        
Client deposits and other third-party liabilities$168,247
$170,745
(1) $167,756
$173,168
(3)
Equity22,000
20,000
10
 22,000
20,000
10
        
Headcount11,248
10,579
6 % 11,248
10,579
6 %
(a)Effective in the first quarter of 2019, client segment data includes Commercial Real Estate Banking which comprises the former Commercial Term Lending and Real Estate Banking client segments, and Community Development Banking (previously part of Other). The prior period amounts have been revised to conform with the current period presentation.

Selected metrics (continued)Selected metrics (continued)        Selected metrics (continued)        
As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,		As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions, except ratios)2018
2017
Change
 2018
 2017
 Change2019
2018
Change
 2019
 2018
 Change
Credit data and quality statistics                
Net charge-offs/(recoveries)$34
$8
325 % $34
 $(2) NM
$15
$34
(56)% $26
 $34
 (24)%
Nonperforming assets                
Nonaccrual loans:                
Nonaccrual loans retained(a)
$546
$819
(33) $546
 $819
 (33)%$614
$546
12 % $614
 $546
 12 %
Nonaccrual loans held-for-sale and loans at fair value—
—
—
 —
 —
 —
—
—
—
 —
 —
 —
Total nonaccrual loans$546
$819
(33) $546
 $819
 (33)$614
$546
12
 $614
 $546
 12
Assets acquired in loan satisfactions2
4
(50) 2
 4
 (50)20
2
NM
 20
 2
 NM
Total nonperforming assets$548
$823
(33) $548
 $823
 (33)$634
$548
16
 $634
 $548
 16
Allowance for credit losses:                
Allowance for loan losses$2,622
$2,678
(2) $2,622
 $2,678
 (2)$2,756
$2,622
5
 $2,756
 $2,622
 5
Allowance for lending-related commitments243
331
(27) 243
 331
 (27)274
243
13
 274
 243
 13
Total allowance for credit losses$2,865
$3,009
(5)% $2,865
 $3,009
 (5)%$3,030
$2,865
6 % $3,030
 $2,865
 6 %
Net charge-off/(recovery) rate(b)
0.07%0.02%  0.03% —
  0.03%0.07%  0.03% 0.03%  
Allowance for loan losses to period-end loans retained
1.27
1.35
  1.27
 1.35
  1.32
1.27
  1.32
 1.27
  
Allowance for loan losses to nonaccrual loans retained(a)
480
327
  480
 327
  449
480
  449
 480
  
Nonaccrual loans to period-end total loans0.26
0.41
  0.26
 0.41
  0.29
0.26
  0.29
 0.26
  
(a)Allowance for loan losses of $126$125 million and $112$126 million was held against nonaccrual loans retained at June 30, 20182019 and 2017,2018, respectively.
(b)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.




ASSET & WEALTH MANAGEMENT
For a discussion of the business profile of AWM, refer to pages 70–7274–76 of JPMorgan Chase’s 2017 Annual Report2018 Form 10-K and Line of Business Metrics on pages 178–179.
Effective January 1, 2018, the Firm adopted several new accounting standards; the guidance which had the most significant impact on the AWM segment results was revenue recognition. The revenue recognition guidance was applied retrospectively and, accordingly, prior period amounts were revised. For additional information, refer to Note 1.
174–175.
Selected income statement dataSelected income statement data   Selected income statement data   
(in millions, except ratios)Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
2018
2017
Change
 2018
2017
Change
2019
2018
Change
 2019
2018
Change
Revenue          
Asset management, administration and commissions$2,532
$2,435
4 % $5,060
$4,739
7 %$2,568
$2,532
1 % $4,984
$5,060
(2)%
All other income155
156
(1) 257
321
(20)115
155
(26) 292
257
14
Noninterest revenue2,687
2,591
4
 5,317
5,060
5
2,683
2,687
—
 5,276
5,317
(1)
Net interest income885
846
5
 1,761
1,665
6
876
885
(1) 1,772
1,761
1
Total net revenue3,572
3,437
4
 7,078
6,725
5
3,559
3,572
—
 7,048
7,078
—
          
Provision for credit losses2
4
(50) 17
22
(23)2
2
—
 4
17
(76)
          
Noninterest expense          
Compensation expense1,329
1,277
4
 2,721
2,609
4
1,406
1,329
6
 2,868
2,721
5
Noncompensation expense1,237
1,140
9
 2,426
2,589
(6)1,190
1,237
(4) 2,375
2,426
(2)
Total noninterest expense2,566
2,417
6
 5,147
5,198
(1)2,596
2,566
1
 5,243
5,147
2
          
Income before income tax expense1,004
1,016
(1) 1,914
1,505
27
961
1,004
(4) 1,801
1,914
(6)
Income tax expense249
392
(36) 389
496
(22)242
249
(3) 421
389
8
Net income$755
$624
21
 $1,525
$1,009
51
$719
$755
(5) $1,380
$1,525
(10)
          
Revenue by line of business          
Asset Management$1,826
$1,786
2
 $3,613
$3,474
4
$1,785
$1,826
(2) $3,546
$3,613
(2)
Wealth Management1,746
1,651
6
 3,465
3,251
7
1,774
1,746
2
 3,502
3,465
1
Total net revenue$3,572
$3,437
4 % $7,078
$6,725
5 %$3,559
$3,572
— % $7,048
$7,078
— %
          
Financial ratios          
Return on equity33%27%  33%22% 27%33%  26%33% 
Overhead ratio72
70
  73
77
 73
72
  74
73
 
Pre-tax margin ratio:          
Asset Management28
27
  27
14
 25
28
  24
27
 
Wealth Management28
33
  27
31
 29
28
  27
27
 
Asset & Wealth Management28
30
  27
22
 27
28
  26
27
 
Quarterly results
Net income was $755$719 million, an increasea decrease of 21%5%.
Net revenue wasof $3.6 billion an increase of 4%.was flat. Net interest income was $885$876 million, up 5%down 1%, driven by lower deposit margin expansion andrevenue, largely offset by loan growth. Noninterest revenue wasof $2.7 billion up 4%, driven by higher management fees from net long-term product inflows and higher market levels, partially offset by fee compression andwas flat, as the impact of higher average market levels was predominantly offset by lower market valuations of seed capital investments.net investment valuation gains.
Noninterest expense was $2.6 billion, an increase of 1%, driven by continued investments in advisors and technology, partially offset by lower distribution fees.
Year-to-date results
Net income was $1.4 billion, a decrease of 10%.
Net revenue of $7 billion was flat. Net interest income was $1.8 billion, up 6%1%, predominantly driven by loan growth, offset by lower deposit revenue. Noninterest revenue was $5.3 billion, down 1%, driven by a shift in the mix toward lower fee products and lower average market levels, predominantly offset by higher net investment valuation gains.
Noninterest expense was $5.2 billion, an increase of 2%, largely driven by continued investments in technology and advisors, as well as higher external fees on revenue growth.
Year-to-date results
Net income was $1.5 billion, an increase of 51%.
Net revenue was $7.1 billion, an increase of 5%. Net interest income was $1.8 billion, up 6%, driven by deposit margin expansion and loan growth. Noninterest revenue was $5.3 billion, up 5%, driven by higher management fees from net long-term product inflows and higher market levels, partially offset by fee compression and the impact of lower market valuations of seed capital investments.distribution fees.
Noninterest expense was $5.1 billion, a decrease of 1%, driven by higher legal expense in 1Q17, largely offset by investments in technology and advisors, as well as higher external fees on revenue growth.


Selected metrics          
As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,		As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions, except ranking data, headcount and ratios)2018
2017
Change
 2018
2017
Change
2019
2018
Change
 2019
2018
Change
% of JPM mutual fund assets rated as 4- or 5-star(a)
59%65%  59%65% 63%59%  63%59% 
% of JPM mutual fund assets ranked in 1st or 2nd quartile:(b)
          
1 year65
60
  65
60
 78
65
  78
65
 
3 years71
83
  71
83
 75
71
  75
71
 
5 years85
77
  85
77
 82
85
  82
85
 
          
Selected balance sheet data (period-end)          
Total assets$161,474
$147,508
9 % $161,474
$147,508
9 %$172,149
$161,474
7 % $172,149
$161,474
7 %
Loans138,606
124,517
11
 138,606
124,517
11
149,877
138,606
8
 149,877
138,606
8
Core loans138,606
124,517
11
 138,606
124,517
11
149,877
138,606
8
 149,877
138,606
8
Deposits131,511
146,758
(10) 131,511
146,758
(10)136,225
131,511
4
 136,225
131,511
4
Equity9,000
9,000
—
 9,000
9,000
—
10,500
9,000
17
 10,500
9,000
17
          
Selected balance sheet data (average)          
Total assets$158,244
$142,966
11
 $156,305
$140,585
11
$167,544
$158,244
6
 $167,452
$156,305
7
Loans136,710
122,173
12
 134,683
120,252
12
146,494
136,710
7
 145,953
134,683
8
Core loans136,710
122,173
12
 134,683
120,252
12
146,494
136,710
7
 145,953
134,683
8
Deposits139,557
150,786
(7) 141,865
154,776
(8)140,317
139,557
1
 139,282
141,865
(2)
Equity9,000
9,000
—
 9,000
9,000
—
10,500
9,000
17
 10,500
9,000
17
          
Headcount23,141
22,289
4
 23,141
22,289
4
23,683
23,141
2
 23,683
23,141
2
          
Number of Wealth Management client advisors2,644
2,452
8
 2,644
2,452
8
2,735
2,644
3
 2,735
2,644
3
          
Credit data and quality statistics          
Net charge-offs$(5)$2
NM $(4)$5
NM$(3)$(5)40
 $1
$(4)NM
Nonaccrual loans323
400
(19) 323
400
(19)127
323
(61) 127
323
(61)
Allowance for credit losses:          
Allowance for loan losses$304
$285
7
 $304
$285
7
$331
$304
9
 $331
$304
9
Allowance for lending-related commitments15
10
50
 15
10
50
17
15
13
 17
15
13
Total allowance for credit losses$319
$295
8 % $319
$295
8 %$348
$319
9 % $348
$319
9 %
Net charge-off rate(0.01)%0.01%  (0.01)%0.01% (0.01)%(0.01)%  —
(0.01)% 
Allowance for loan losses to period-end loans0.22
0.23
  0.22
0.23
 0.22
0.22
  0.22
0.22
 
Allowance for loan losses to nonaccrual loans94
71
  94
71
 261
94
  261
94
 
Nonaccrual loans to period-end loans0.23
0.32
  0.23
0.32
 0.08
0.23
  0.08
0.23
 
(a)Represents the “overall star rating” derived from Morningstar for the U.S., the U.K., Luxembourg, Hong Kong and Taiwan domiciled funds; and Nomura “star rating” for Japan domiciled funds. Includes only Asset Management retail open-ended mutual funds that have a rating. Excludes money market funds, Undiscovered Managers Fund, and Brazil and India domiciled funds.
(b)Quartile ranking sourced from: Lipper for the U.S. and Taiwan domiciled funds; Morningstar for the U.K., Luxembourg and Hong Kong domiciled funds; Nomura for Japan domiciled funds and Fund Doctor for South Korea domiciled funds. Includes only Asset Management retail open-ended mutual funds that are ranked by the aforementioned sources. Excludes money market funds, Undiscovered Managers Fund, and Brazil and India domiciled funds.


Client assets
Client assets of $2.8$3.0 trillion and assets under management of $2.0$2.2 trillion were both up 8%7%, reflecting higherpredominantly driven by net inflows into long-term and liquidity products as well as higher market levels.levels globally.
Client assets    
June 30,June 30,
(in billions)2018
2017
Change
2019
2018
Change
Assets by asset class    
Liquidity$448
$434
3%$481
$448
7%
Fixed income452
440
3
543
452
20
Equity435
390
12
441
435
1
Multi-asset and alternatives693
612
13
713
693
3
Total assets under management2,028
1,876
8
2,178
2,028
7
Custody/brokerage/administration/deposits771
722
7
820
771
6
Total client assets$2,799
$2,598
8
$2,998
$2,799
7
    
Memo:    
Alternatives client assets (a)
$172
$159
8
$177
$172
3
    
Assets by client segment    
Private Banking$551
$488
13
$617
$551
12
Institutional934
889
5
991
934
6
Retail543
499
9
570
543
5
Total assets under management$2,028
$1,876
8
$2,178
$2,028
7
    
Private Banking$1,298
$1,188
9
$1,410
$1,298
9
Institutional956
909
5
1,013
956
6
Retail545
501
9
575
545
6
Total client assets$2,799
$2,598
8%$2,998
$2,799
7%
(a)Represents assets under management, as well as client balances in brokerage accountaccounts
Client assets (continued)      


Three months ended
June 30,
Six months ended
June 30,		Three months ended
June 30,		Six months ended
June 30,
(in billions)2018
2017
 2018
2017
2019
2018
 2019
2018
Assets under management rollforward      
Beginning balance$2,016
$1,841
 $2,034
$1,771
$2,096
$2,016
 $1,987
$2,034
Net asset flows:      
Liquidity17
(7) (4)(6)4
17
 (1)(4)
Fixed income(7)2
 (12)7
37
(7) 56
(12)
Equity2
(3) 7
(7)(1)2
 (7)7
Multi-asset and alternatives9
10
 25
17
—
9
 (3)25
Market/performance/other impacts(9)33
 (22)94
42
(9) 146
(22)
Ending balance, June 30$2,028
$1,876
 $2,028
$1,876
$2,178
$2,028
 $2,178
$2,028
      
Client assets rollforward      
Beginning balance$2,788
$2,548
 $2,789
$2,453
$2,897
$2,788
 $2,733
$2,789
Net asset flows11
2
 25
12
52
11
 61
25
Market/performance/other impacts—
48
 (15)133
49
—
 204
(15)
Ending balance, June 30$2,799
$2,598
 $2,799
$2,598
$2,998
$2,799
 $2,998
$2,799







International metrics          
As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,		As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions)2018
2017
Change
 2018
2017
Change
2019
2018
Change
 2019
2018
Change
Total net revenue (a)
          
Europe/Middle East/Africa$692
$663
4% $1,418
$1,278
11%$680
$692
(2)% $1,342
$1,418
(5)%
Asia/Pacific391
342
14
 784
660
19
370
391
(5) 728
784
(7)
Latin America/Caribbean234
222
5
 461
401
15
219
234
(6) 440
461
(5)
Total international net revenue1,317
1,227
7
 2,663
2,339
14
1,269
1,317
(4) 2,510
2,663
(6)
North America2,255
2,210
2
 4,415
4,386
1
2,290
2,255
2
 4,538
4,415
3
Total net revenue(a)
$3,572
$3,437
4% $7,078
$6,725
5%$3,559
$3,572
—
 $7,048
$7,078
— %
(a)Regional revenue is based on the domicile of the client.
As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,		As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in billions)2018
2017
Change
 2018
2017
Change
2019
2018
Change
 2019
2018
Change
Assets under management          
Europe/Middle East/Africa$371
$335
11% $371
$335
11%$381
$371
3% $381
$371
3%
Asia/Pacific164
136
21
 164
136
21
182
164
11
 182
164
11
Latin America/Caribbean65
57
14
 65
57
14
68
65
5
 68
65
5
Total international assets under management600
528
14
 600
528
14
631
600
5
 631
600
5
North America1,428
1,348
6
 1,428
1,348
6
1,547
1,428
8
 1,547
1,428
8
Total assets under management$2,028
$1,876
8
 $2,028
$1,876
8
$2,178
$2,028
7
 $2,178
$2,028
7
          
Client assets          
Europe/Middle East/Africa$431
$387
11
 $431
$387
11
$448
$431
4
 $448
$431
4
Asia/Pacific229
196
17
 229
196
17
252
229
10
 252
229
10
Latin America/Caribbean160
152
5
 160
152
5
171
160
7
 171
160
7
Total international client assets820
735
12
 820
735
12
871
820
6
 871
820
6
North America1,979
1,863
6
 1,979
1,863
6
2,127
1,979
7
 2,127
1,979
7
Total client assets$2,799
$2,598
8% $2,799
$2,598
8%$2,998
$2,799
7% $2,998
$2,799
7%


CORPORATE
For a discussion of Corporate, refer to pages 73–7477–78 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Selected income statement and balance sheet dataSelected income statement and balance sheet data      Selected income statement and balance sheet data      
As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,		As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions, except headcount)2018
2017
 Change
 2018
 2017
 Change
2019
2018
 Change
 2019
 2018
 Change
Revenue                  
Principal transactions$83
$148
 (44)% $(61) $163
 NM
$(175)$83
 NM
 $(237) $(61) (289)%
Investment securities losses(80)(34) (135)% (325) (37) NM
All other income/(loss)(a)
139
667
 (79)% 343
 728
 (53)
Investment securities gains/(losses)44
(80) NM
 57
 (325) NM
All other income6
139
 (96)% 63
 343
 (82)%
Noninterest revenue142
781
 (82)% (43) 854
 NM
(125)142
 NM
 (117) (43) (172)
Net interest income(62)23
 NM
 (109) (75) (45)%447
(62) NM
 864
 (109) NM
Total net revenue(b)(a)
80
804
 (90)% (152) 779
 NM
322
80
 303 % 747
 (152) NM
                  
Provision for credit losses(1)—
 NM
 (5) —
 NM
(2)(1) (100)% —
 (5) NM
                  
Noninterest expense(c)(b)
279
183
 52
 366
 281
 30 %232
279
 (17)% 443
 366
 21 %
Income/(loss) before income tax expense/(benefit)(198)621
 NM
 (513) 498
 NM
92
(198) NM
 304
 (513) NM
Income tax expense/(benefit)(62)51
 NM
 6
 (107) NM
(736)(62) NM
 (775) 6
 NM
Net income/(loss)$(136)$570
 NM
 $(519) $605
 NM
$828
$(136) NM
 $1,079
 $(519) NM
Total net revenue                  
Treasury and CIO$87
$86
 1
 $49
 $79
 (38)%$618
$87
 NM
 $1,129
 $49
 NM
Other Corporate(7)718
 NM
 (201) 700
 NM
(296)(7) NM
 (382) (201) (90)%
Total net revenue$80
$804
 (90)% $(152) $779
 NM
$322
$80
 303 % $747
 $(152) NM
Net income/(loss)                  
Treasury and CIO$(153)$(14) NM
 $(340) $(81) (320)$462
$(153) NM
 $796
 $(340) NM
Other Corporate17
584
 (97)% (179) 686
 NM
366
17
 NM
 283
 (179) NM
Total net income/(loss)$(136)$570
 NM
 $(519) $605
 NM
$828
$(136) NM
 $1,079
 $(519) NM
Total assets (period-end)$746,716
$817,754
 (9) $746,716
 $817,754
 (9)$821,330
$746,716
 10 % $821,330
 $746,716
 10 %
Loans (period-end)1,720
1,696
 1
 1,720
 1,696
 1
1,695
1,720
 (1)% 1,695
 1,720
 (1)%
Core loans(d)(c)
1,720
1,696
 1
 1,720
 1,696
 1
1,695
1,720
 (1)% 1,695
 1,720
 (1)%
Headcount(e)
35,877
32,843
 9 % 35,877
 32,843
 9 %37,361
35,877
 4 % 37,361
 35,877
 4 %
(a)Included revenue related to a legal settlementtax-equivalent adjustments, driven by tax-exempt income from municipal bond investments, of $645$81 million and $95 million for both the three months ended June 30, 2019 and 2018, respectively, and $167 million and $193 million for the six months ended June 30, 2017.2019 and 2018, respectively.
(b)Included tax-equivalent adjustments, predominantly due to tax-exempt income from municipal bond investmentsa net legal benefit of $95$(67) million and $237$(8) million for the three months ended June 30, 20182019 and 2017,2018, respectively, and $193$(157) million and $465$(50) million for the six months ended June 30, 2019 and 2018, and 2017, respectively. The decrease in taxable-equivalent adjustments reflects the impact of the TCJA.
(c)Included legal expense/(benefit) of $(8) million and $16 millionAverage core loans were $1.7 billion for both the three months ended June 30, 20182019 and 2017, respectively, and $(50) million and $(212) million for six months ended June 30, 2018, and 2017, respectively.
(d)Average core loans were $1.7 billion and $1.6 billion for the three months ended June 30, 2018 and 2017, respectively, and $1.7 billion and $1.6 billion for the six months ended June 30, 2019 and 2018, and 2017, respectively.
(e)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 a further discussion of this transfer, refer to CB segment results on page 31.
Quarterly results
Net lossincome was $136$828 million, compared with a net incomeloss of $570$136 million in the prior year.
Net revenue was $80$322 million, compared with $804$80 million in the prior year. This increase was driven by higher net interest income on higher rates and change in balance sheet mix, as well as an increase in investment securities gains due to the repositioning of the investment securities portfolio, partially offset by approximately $100 million of net valuation losses on certain legacy private equity investments compared to net gains in the prior year.
Noninterest expense was $232 million, compared with $279 million in the prior year. The current period includes investment securities losses relatedincluded investments in technology as well as a contribution to the repositioning ofFirm’s Foundation, whereas all prior-year contributions were made in the investment securities portfolio.fourth quarter. The prior year included a $645$174 million benefit from a legal settlement.
Noninterest expense of $279 million increased from the prior year, primarily driven by a pretax loss of $174 million on the liquidation of a legal entity.
CurrentThe current period incomeincluded tax reflectsbenefits of $742 million related to the resolution of certain tax audits. The prior period reflected a benefit of $189 million resulting from a change in the estimate for the deemed repatriation tax on non-U.S. earnings, as well as other net tax adjustments that were predominantly offset by changes to certain tax reserves.
 
Year-to-date results
Net lossincome was $519$1,079 million, compared with a net incomeloss of $605$519 million in the prior year.
Net revenue was $747 million, compared with a net loss of $152 million compared with a gain of $779 million in the prior-year. The current period includesprior year. This increase was driven by higher net interest income on higher rates and change in balance sheet mix, as well as an increase in investment securities losses relatedgains due to the repositioning of the investment securities portfolio.
Noninterest expense was $443 million, compared with $366 million in the prior year. The current period included investments in technology and real estate as well as contributions to the Firm’s Foundation, whereas all prior-year contributions were made in the fourth quarter. The prior year included a $645$174 million benefit from a legal settlement.
Noninterest expense of $366 million, up $85 million from prior year, includes a pretax loss in the current period of $174 million on the liquidation of a legal entity.
CurrentThe current period incomeincluded tax expense reflectsbenefits of $825 million related to the resolution of certain tax audits. The prior period reflected changes to certain tax reserves, largely offset by changes in the estimate for the deemed repatriation tax on non-U.S. earnings and other tax adjustments.


Treasury and CIO overview
At June 30, 2018,2019, the average credit rating of the Treasury and CIO investment securities comprising the portfolio in the table below was AA+ (based upon external ratings where available and, where not available, based primarily upon internal ratings that correspond to ratings as defined by S&P and Moody’s). Refer to Note 9 for further information on the Firm’s investment securities portfolio.
 
For further information on liquidity and funding risk, refer to Liquidity Risk Management on pages 48–52.49–53. For information on interest rate, foreign exchange and other risks, refer to Market Risk Management on pages 71–75.70–74.
Selected income statement and balance sheet data      
 As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions)2018
 2017
 Change
 2018
 2017
 Change
Investment securities losses$(80) $(34) (135)% $(325) $(49) NM
Available-for-sale (“AFS”) investment securities (average)$200,232
 $225,053
 (11)% $202,266
 $229,920
 (12)%
Held-to-maturity (“HTM”) investment securities (average)30,304
 48,232
 (37) 32,152
 48,794
 (34)
Investment securities portfolio (average)$230,536
 $273,285
 (16) $234,418
 $278,714
 (16)
AFS investment securities (period-end)$200,434
 $213,291
 (6) $200,434
 $213,291
 (6)
HTM investment securities (period-end)31,006
 47,761
 (35) 31,006
 47,761
 (35)
Investment securities portfolio (period-end)$231,440
 $261,052
 (11)% $231,440
 $261,052
 (11)%
As permitted by the new hedge accounting guidance, the Firm elected to transfer certain investment securities from HTM to AFS in the first quarter of 2018. For additional information, refer to Notes 1 and 9.
Selected income statement and balance sheet data      
 As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions)2019
 2018
 Change
 2019
 2018
 Change
Investment securities gains/(losses)$44
 $(80) NM
 $57
 $(325) NM
Available-for-sale (“AFS”) investment securities (average)$248,612
 $200,232
 24 % $237,669
 $202,266
 18 %
Held-to-maturity (“HTM”) investment securities (average)30,929
 30,304
 2
 31,005
 32,152
 (4)
Investment securities portfolio (average)$279,541
 $230,536
 21
 $268,674
 $234,418
 15
AFS investment securities (period-end)$274,533
 $200,434
 37
 $274,533
 $200,434
 37
HTM investment securities (period-end)30,907
 31,006
 —
 30,907
 31,006
 —
Investment securities portfolio (period-end)$305,440
 $231,440
 32 % $305,440
 $231,440
 32 %




ENTERPRISE-WIDE RISK MANAGEMENT
Risk is an inherent part of JPMorgan Chase’s business activities. When the Firm extends a consumer or wholesale loan, advises customers on their investment decisions, makes markets in securities, or offers other products or services, the Firm takes on some degree of risk. The Firm’s overall objective is to manage its businesses and the associated risks in a manner that balances serving the interests of its clients, customers and investors and protects the safety and soundness of the Firm.
The Firm believes that effective risk management requires:
Acceptance of responsibility, including identification and escalation of risk issues, by all individuals within the Firm;
Ownership of risk identification, assessment, data and management bywithin each of the lines of business and corporate functions;Corporate; and
Firmwide structures for risk governance.
The Firm strives for continual improvement through efforts to enhance controls, ongoing employee training and development, talent retention, and other measures. The Firm follows a disciplined and balanced compensation framework with strong internal governance and independent Board oversight. The impact of risk and control issues are carefully considered in the Firm’s performance evaluation and incentive compensation processes.
Firmwide Risk Management is overseen and managed on an enterprise-wide basis. The Firm’s approach to risk management governance and oversight framework involves understanding drivers of risks, risk types of risks, and impacts of risks.jpmcgovernancea01.jpg
DriversFor a further discussion of risk include, but are not limited to, the economic environment, regulatory or government policy, competitor or market evolution, business decisions, process or judgment error, deliberate wrongdoing, dysfunctional markets, and natural disasters.
The Firm’s risks are generally categorized in the following four risk types:
Strategic risk is the risk associated with the Firm’s current and future business plans and objectives, including capital risk, liquidity risk, and the impact to the Firm’s reputation.
Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk, wholesale credit risk, and investment portfolio risk.
Market risk is the risk associated with the effect of changes in market factors, such as interest and foreign exchange rates, equity and commodity prices, credit spreads or implied volatilities, on the value of assets and liabilities held for both the short and long term.
Operational risk is the risk associated with inadequate or failed internal processes, people and systems, or from external events and includes compliance risk, conduct risk, legal risk, and estimations and model risk.
There may be many consequences of risks manifesting, including quantitative impacts such as reduction in earnings and capital, liquidity outflows, and fines or penalties, or qualitative impacts, such as reputation damage, loss of clients, and regulatory and enforcement actions.


The Firm has established FirmwideEnterprise-wide risk management functionsgovernance and oversight, refer to manage different risk types.pages 79-83 of JPMorgan Chase’s 2018 Form 10-K.












Effective July 2019, the Board of Directors’ Risk Policy Committee (“DRPC”) was renamed the Risk Committee. The scopecommittee’s responsibilities were not changed. For a further discussion of a particular risk management function may include multiple risk types. For example, the Firm’s Country Risk Management function oversees country risk which may be a drivercommittee, refer to page 81 of risk or an aggregation of exposures that could give rise to multiple risk types such as credit or market risk. JPMorgan Chase’s 2018 Form 10-K.

Governance and Oversight Functions
The following provides an indexsections of where in this Form 10-Q and the 2018 Form 10-K discuss the risk governance and oversight functions in JPMorgan Chase’s 2017 Annual Report information aboutplace to manage the risks inherent in the Firm’s management of its key risks can be found.business activities.
Risk governance and oversight functionsForm 10-Q page referenceForm 10-K page reference
Strategic risk 84
Capital risk44–4885–94
Liquidity risk49–5395–100
Reputation risk 101
Consumer credit risk55–59106-111
Wholesale credit risk60–66112-119
Investment portfolio risk69123
Market risk70–74124-131
Country risk75132–133
Operational risk 134-136
Compliance risk 137
Conduct risk 138
Legal risk 139
Estimations and Model risk 140
Risk disclosuresForm 10-Q page referenceAnnual Report page reference
Enterprise-wide risk management41–4275–80
Strategic risk management 81
Capital risk management43–4782–91
Liquidity risk management48–5292–97
Reputation risk management 98
Consumer credit portfolio

55-59102–107
Wholesale credit portfolio60–66108–116
Investment portfolio risk management70120
Market risk management71–75121–128
Country risk management76129–130
Operational risk management 131–133
Compliance risk management

 134
Conduct risk management 135
Legal risk management 136
Estimations and Model risk management 137


CAPITAL RISK MANAGEMENT
Capital risk is the risk the Firm has an insufficient level and composition of capital to support the Firm’s business activities and associated risks during normal economic environments and under stressed conditions.
The Firm’s capital risk management strategy focuses on maintaining long-term stability to enable it to build and invest in market-leading businesses, even in a highly stressed environment. Senior management considers the implications on the Firm’s capital prior to making decisions that could impact future business activities. In addition to considering the Firm’s earnings outlook, senior management evaluates all sources and uses of capital with a view to ensuring the Firm’s capital strength.
The Firm’s capital risk management objectives are achieved through the establishment of minimum capital targets and a strong capital governance framework. Capital risk management is intended to be flexible in order to react to a range of potential events. The Firm’s minimum capital targets are based on the most binding of three pillars: an internal assessment of the Firm’s capital needs; an estimate of required capital under the CCAR and Dodd-Frank Act stress testing requirements; and Basel III Fully Phased-In regulatory minimums. Where necessary, each pillar may include a management-established buffer.
For a further discussion of the Firm’s Capital Risk Management, including capital planning and stress testing, refer to pages 82–9185-94 of JPMorgan Chase’s
2017 Annual Report,2018 Form 10-K, Note 1921 of this Form 10-Q, and the Firm’s Pillar 3 Regulatory Capital Disclosures reports,
which are available on the Firm’s website (http:(https://investor.shareholder.com/jpmorganchase/basel.cfm)jpmorganchaseco.gcs-web.com/financial-information/basel-pillar-3-us-lcr-disclosures).
The capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. bank holding companies (“BHC”) and banks, including the Firm and its insured depository institution (“IDI”) subsidiaries, including JPMorgan Chase Bank, N.A. Two comprehensive approaches are subject to prescribed for calculating RWA: a standardized approach (“Basel III capital rules which include minimum capital ratio requirements that are subject to phase-in periodsStandardized”), and an advanced approach (“transitional period”Basel III Advanced”) through. Effective January 1, 2019, the endcapital
adequacy of 2018. While thisthe Firm is evaluated against the fully phased-in measures under Basel III and represents the lower of the Standardized or Advanced approaches. During 2018, the required capital remainsmeasures were subject to the transitional rules during 2018,and as of January 1,December 31, 2018 were the Firm’s capital in the form of CET1 and Tier 1, and the Firm’s risk-weighted assets were equivalent whether calculated on a transitional basis orsame on a fully phased-in and on a transitional basis.
The capital adequacy of the Firm and its IDI subsidiaries, both during the transitional period and upon full phase-in, is evaluated againstFirm’s Basel III Standardized risk-based ratios are currently more binding than the Basel III approach (Standardized or Advanced) which, for each quarter, results in the lower ratio as required by the Collins Amendment of the Dodd-Frank Act (the “Collins Floor”). The Basel III Standardized Fully Phased-In CET1 ratio is the Firm’s current binding constraint,Advanced risk-based ratios, and the Firm expects that this will remain its binding constraintthe case for the foreseeable future.
TheBasel III also includes a requirement for Advanced Approach banking organizations, including the Firm, is subject to calculate the SLR. For additional information on SLR, refer to page 91 of JPMorgan Chase’s 2018 Form 10-K.
In addition to meeting the capital ratio requirements of Basel III, the Firm and its IDI subsidiaries also must maintain minimum capital and leverage ratios under Basel III rules and well-capitalized ratiosin order to be “well-capitalized” under the regulations issued by the Federal Reserve and the Prompt Corrective Action (“PCA”) requirements of the FDIC Improvement Act (“FDICIA”), respectively. For additional information, refer to Note 19.


The following tables present the Firm’s Transitional and Fully Phased-In risk-based and leverage-based capital metrics under both the Basel III Standardized and Advanced Approaches. The Firm’s Basel III ratios exceeded both the Transitional and Fully Phased-In regulatory minimums as of June 30, 20182019 and December 31, 2017.2018. For a further discussion of these capital metrics, including regulatory minimums, and the Standardized and Advanced Approaches, refer to Strategy and GovernanceCapital Risk Management on pages 84–8885-94 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
 Transitional Fully Phased-In 
June 30, 2018
(in millions, except ratios)
Standardized Advanced Minimum capital ratios Standardized Advanced Minimum capital ratios 
Risk-based capital metrics:            
CET1 capital$184,708
 $184,708
   $184,708
 $184,708
   
Tier 1 capital210,321
 210,321
   210,321
 210,321
   
Total capital238,630
 229,027
   238,357
 228,754
   
Risk-weighted assets1,543,370
 1,438,747
   1,543,370
 1,438,747
   
CET1 capital ratio12.0% 12.8% 9.0% 12.0% 12.8% 10.5% 
Tier 1 capital ratio13.6
 14.6
 10.5
 13.6
 14.6
 12.0
 
Total capital ratio15.5
 15.9
 12.5
 15.4
 15.9
 14.0
 
Leverage-based capital metrics:            
Adjusted average assets(a)
$2,566,013
 $2,566,013
   $2,566,013
 $2,566,013
   
Tier 1 leverage ratio8.2% 8.2% 4.0% 8.2% 8.2% 4.0% 
Total leverage exposureNA
 NA
   NA
 $3,255,296
   
SLR(b)
NA
 NA
 NA
 NA
 6.5% 5.0%
(b) 
 Transitional Fully Phased-In 
December 31, 2017
(in millions, except ratios)		Standardized Advanced Minimum capital ratios Standardized Advanced Minimum capital ratios 
Risk-based capital metrics:            
CET1 capital$183,300
 $183,300
   $183,244
 $183,244
   
Tier 1 capital208,644
 208,644
   208,564
 208,564
   
Total capital238,395
 227,933
   237,960
 227,498
   
Risk-weighted assets1,499,506
 1,435,825
   1,509,762
 1,446,696
   
CET1 capital ratio12.2% 12.8% 7.5% 12.1% 12.7% 10.5% 
Tier 1 capital ratio13.9
 14.5
 9.0
 13.8
 14.4
 12.0
 
Total capital ratio15.9
 15.9
 11.0
 15.8
 15.7
 14.0
 
Leverage-based capital metrics:            
Adjusted average assets(a)
$2,514,270
 $2,514,270
   $2,514,822
 $2,514,822
   
Tier 1 leverage ratio8.3% 8.3% 4.0% 8.3% 8.3% 4.0% 
Total leverage exposureNA
 $3,204,463
   NA
 $3,205,015
   
SLR(b)
NA
 6.5% NA
 NA
 6.5% 5.0%
(b) 
Note: As of June 30, 2018, and December 31, 2017, the lower of the Standardized or Advanced capital ratios under each of the Transitional and Fully Phased-In approaches in the table above represents the Firm’s Collins Floor.
 June 30, 2019 December 31, 2018
(in millions)Standardized Advanced Minimum capital ratios 
Standardized(b)
 
Advanced(b)
 Minimum capital ratios
Risk-based capital metrics:           
CET1 capital$189,169
 $189,169
   $183,474
 $183,474
  
Tier 1 capital215,808
 215,808
   209,093
 209,093
  
Total capital244,490
 234,507
   237,511
 227,435
  
Risk-weighted assets1,545,101
 1,449,211
   1,528,916
 1,421,205
  
CET1 capital ratio12.2% 13.1% 10.5% 12.0% 12.9% 9.0%
Tier 1 capital ratio14.0
 14.9
 12.0
 13.7
 14.7
 10.5
Total capital ratio15.8
 16.2
 14.0
 15.5
 16.0
 12.5
Leverage-based capital metrics:           
Adjusted average assets(a)
$2,692,225
 $2,692,225
   $2,589,887
 $2,589,887
  
Tier 1 leverage ratio8.0% 8.0% 4.0% 8.1% 8.1% 4.0%
Total leverage exposureNA
 $3,367,154
   NA
 $3,269,988
  
SLRNA
 6.4% 5.0% NA
 6.4% 5.0%
(a)
Adjusted average assets, for purposes of calculating the Tier 1 leverage ratio, 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.
(b)Effective January 1,The Firm’s capital ratios as of December 31, 2018 the SLR waswere equivalent whether calculated on a transitional or fully phased-in under Basel III. The December 31, 2017, amounts were calculated under the Basel III Transitional rules.basis.

Recent regulatory developments
In April 2018, the Board of Governors of the Federal Reserve System (“FRB”) proposed the introduction of a stress buffer framework that would create a single, integrated set of capital requirements by combining the supervisory stress test results of the CCAR assessment and those under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act Stress Test) with current point-in-time capital requirements. If the proposal is finalized in its current form, the new minimum capital requirements will become effective on October 1, 2019. In addition, in April 2018, the FRB and Office of the
Comptroller of the Currency released a proposal to revise the enhanced supplementary leverage ratio (“eSLR”) requirements applicable to the U.S. global systemically important bank (“GSIBs”) and their subsidiary insured depository institutions (“IDIs”) and to make conforming changes to the Total Loss-Absorbing Capacity (“TLAC”) and external long-term debt that satisfies certain eligibility criteria (“eligible LTD”) requirements applicable to U.S. GSIBs. The Firm continues to evaluate the impact of these proposals.




Capital components
The following table presents reconciliations of total stockholders’ equity to Basel III Fully Phased-In CET1 capital, Tier 1 capital and Total capital as of June 30, 20182019 and December 31, 2017.2018.
(in millions)
June 30,
2018

December 31, 2017
June 30, 2019
December 31, 2018
Total stockholders’ equity$257,458
$255,693
$263,215
$256,515
Less: Preferred stock26,068
26,068
26,993
26,068
Common stockholders’ equity231,390
229,625
236,222
230,447
Less:  
Goodwill47,488
47,507
47,477
47,471
Other intangible assets806
855
732
748
Other CET1 capital adjustments1,160
1,034
Add:  
Deferred tax liabilities(a)
2,227
2,204
2,316
2,280
Less: Other CET1 capital adjustments615
223
Standardized/Advanced Fully
Phased-In CET1 capital
184,708
183,244
Standardized/Advanced CET1 capital189,169
183,474
Preferred stock26,068
26,068
26,993
26,068
Less: Other Tier 1 adjustments455
748
354
449
Standardized/Advanced Fully
Phased-In Tier 1 capital
$210,321
$208,564
Standardized/Advanced Tier 1 capital$215,808
$209,093
Long-term debt and other instruments qualifying as Tier 2 capital$13,537
$14,827
$14,263
$13,772
Qualifying allowance for credit losses14,367
14,672
14,295
14,500
Other132
(103)124
146
Standardized Fully Phased-In Tier 2 capital$28,036
$29,396
Standardized Fully Phased-In Total capital$238,357
$237,960
Standardized Tier 2 capital$28,682
$28,418
Standardized Total capital$244,490
$237,511
Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(9,603)(10,462)(9,983)(10,076)
Advanced Fully Phased-In Tier 2 capital$18,433
$18,934
Advanced Fully Phased-In Total capital$228,754
$227,498
 
Advanced Tier 2 capital$18,699
$18,342
Advanced Total capital$234,507
$227,435
(a)Represents certain deferred tax liabilities related to tax-deductible goodwill and identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating TCE.CET1 capital.
 
Capital rollforward
The following table presents the changes in Basel III Fully Phased-In CET1 capital, Tier 1 capital and Tier 2 capital for the six months ended June 30, 2018.2019.
Six months ended June 30,
(in millions)		2018
2019
Standardized/Advanced CET1 capital at December 31, 2017$183,244
Standardized/Advanced CET1 capital at December 31, 2018$183,474
Net income applicable to common equity16,240
18,053
Dividends declared on common stock(3,852)(5,224)
Net purchase of treasury stock(8,234)(8,934)
Changes in additional paid-in capital(1,187)(803)
Changes related to AOCI(796)2,386
Adjustment related to DVA(a)
(586)458
Changes related to other CET1 capital adjustments(121)(241)
Change in Standardized/Advanced CET1 capital1,464
5,695
Standardized/Advanced CET1 capital at June 30, 2018$184,708
Standardized/Advanced CET1 capital at June 30, 2019$189,169
  
Standardized/Advanced Tier 1 capital at December 31, 2017$208,564
Standardized/Advanced Tier 1 capital at December 31, 2018$209,093
Change in CET1 capital1,464
5,695
Net issuance of noncumulative perpetual preferred stock—
925
Other293
95
Change in Standardized/Advanced Tier 1 capital1,757
6,715
Standardized/Advanced Tier 1 capital at June 30, 2018$210,321
Standardized/Advanced Tier 1 capital at June 30, 2019$215,808
  
Standardized Tier 2 capital at December 31, 2017$29,396
Standardized Tier 2 capital at December 31, 2018$28,418
Change in long-term debt and other instruments qualifying as Tier 2(1,290)491
Change in qualifying allowance for credit losses(305)(204)
Other235
(23)
Change in Standardized Tier 2 capital(1,360)264
Standardized Tier 2 capital at June 30, 2018$28,036
Standardized Total capital at June 30, 2018$238,357
Standardized Tier 2 capital at June 30, 2019$28,682
Standardized Total capital at June 30, 2019$244,490
  
Advanced Tier 2 capital at December 31, 2017$18,934
Advanced Tier 2 capital at December 31, 2018$18,342
Change in long-term debt and other instruments qualifying as Tier 2(1,290)491
Change in qualifying allowance for credit losses554
(111)
Other235
(23)
Change in Advanced Tier 2 capital(501)357
Advanced Tier 2 capital at June 30, 2018$18,433
Advanced Total capital at June 30, 2018$228,754
Advanced Tier 2 capital at June 30, 2019$18,699
Advanced Total capital at June 30, 2019$234,507
(a)Includes DVA related to structured notes recorded in AOCI.



RWA rollforward
The following table presents changes in the components of RWA under Basel III Standardized and Advanced Fully Phased-In for the six months ended June 30, 2018.2019. The amounts in the rollforward categories are estimates, based on the predominant driver of the change.
Standardized Advanced Standardized Advanced 
Six months ended
June 30, 2018
(in millions)		Credit risk RWAMarket risk RWATotal RWA Credit risk RWAMarket risk RWA
Operational risk
RWA
Total RWA
At December 31, 2017$1,386,060
$123,702
$1,509,762
 $922,905
$123,791
$400,000
$1,446,696
Six months ended June 30, 2019
(in millions)		Credit risk RWAMarket risk RWATotal RWA Credit risk RWAMarket risk RWA
Operational risk
RWA
Total RWA
December 31, 2018$1,423,053
$105,863
$1,528,916
 $926,647
$105,976
$388,582
$1,421,205
Model & data changes(a)
(652)(1,100)(1,752) 1,481
(1,100)—
381
(2,906)(8,941)(11,847) 4,858
(8,941)—
(4,083)
Portfolio runoff(b)
(5,416)—
(5,416) (6,484)—
—
(6,484)(2,900)—
(2,900) (3,000)—
—
(3,000)
Movement in portfolio levels(c)
44,960
(4,184)40,776
 14,727
(4,073)(12,500)(1,846)27,668
3,264
30,932
 35,857
2,992
(3,760)35,089
Changes in RWA38,892
(5,284)33,608
 9,724
(5,173)(12,500)(7,949)21,862
(5,677)16,185
 37,715
(5,949)(3,760)28,006
June 30, 2018$1,424,952
$118,418
$1,543,370
 $932,629
$118,618
$387,500
$1,438,747
June 30, 2019$1,444,915
$100,186
$1,545,101
 $964,362
$100,027
$384,822
$1,449,211
(a)
Model & data changes refer to movements in levels of RWA as a result of revised methodologies and/or treatment per regulatory guidance (exclusive of rule changes).
(b)Portfolio runoff for credit risk RWA primarily reflects reduced risk from position rolloffs in legacy portfolios in Home Lending.
(c)Movement in portfolio levels (inclusive of rule changes) refers to: changes in book size, composition, credit quality, and market movements for credit risk RWA; changes in position and market movements for market risk RWA; and an updateupdates to cumulative losses for operational risk RWA.

Supplementary leverage ratio
The SLR is defined as Tier 1 capital under Basel III divided by the Firm’s total leverage exposure. For additional information, refer to Capital Risk Management on page 88 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The following table presents the components of the Firm’s Fully Phased-In SLR as of June 30, 20182019 and December 31, 2017.2018.
(in millions, except ratio)June 30,
2018
December 31, 2017
June 30,
2019
December 31,
2018
Tier 1 capital$210,321
$208,564
$215,808
$209,093
Total average assets2,612,969
2,562,155
2,739,055
2,636,505
Less: Adjustments for deductions from Tier 1 capital46,956
47,333
46,830
46,618
Total adjusted average assets(a)
2,566,013
2,514,822
2,692,225
2,589,887
Off-balance sheet exposures(b)
689,283
690,193
674,929
680,101
Total leverage exposure$3,255,296
$3,205,015
$3,367,154
$3,269,988
SLR6.5%6.5%6.4%6.4%
(a)
Adjusted average assets, for purposes of calculating the SLR, 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.
(b)Off-balance sheet exposures are calculated as the average of the three month-end spot balances during the quarter.
As of June 30, 2018,For JPMorgan Chase Bank, N.A.’s and Chase Bank USA, N.A.’s Fully Phased-In SLRs were approximately 6.7% and 13.1%, respectively.SLR ratios, refer to Note 21.
Line of business equity
Each business segment is allocated capital by taking into consideration stand-alone peer comparisonsa variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. Effective January 1, 2019, line of business capital allocations have increased due to a combination of changes in the relative weights, with greater emphasis on Standardized RWA and stress, a higher capitalization rate, updated stress simulations, and general business growth. For additional information, refer to page 8891 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
 
The following table represents the capital allocated to each business segment:

(in billions)
June 30,
2018
 December 31,
2017
June 30,
2019
 December 31,
2018
Consumer & Community Banking$51.0
 $51.0
$52.0
 $51.0
Corporate & Investment Bank70.0
 70.0
80.0
 70.0
Commercial Banking20.0
 20.0
22.0
 20.0
Asset & Wealth Management9.0
 9.0
10.5
 9.0
Corporate81.4
 79.6
71.7
 80.4
Total common stockholders’ equity$231.4
 $229.6
$236.2
 $230.4
Planning and stress testing
Comprehensive Capital Analysis and Review (“CCAR”)
The Federal Reserve requires large bank holding companies, including the Firm, to submit on an annual basis a capital plan on an annual basis.that has been reviewed and approved by the Board of Directors. Through the CCAR, process, the Federal Reserve evaluates each bank holding company’s (“BHC”) capital adequacy and internal capital adequacy assessment processes (“ICAAP”), as well as its plans to make capital distributions, such as dividend payments or stock repurchases.
On June 28, 2018,27, 2019, the Federal Reserve informed the Firm that it did not object on either a quantitative or qualitative basis, to the Firm’s 20182019 capital plan.
Capital actions
Preferred stock
Preferred stock dividends declared were $788$404 million and $778 million for the three and six months ended June 30, 2018.2019.
On July 31, 2019, the Firm issued $2.25 billion of fixed-to-floating rate non-cumulative preferred stock, Series FF, and on August 2, 2019, the Firm announced that it will redeem all $880 million of its 6.30% non-cumulative preferred stock, Series W on September 1, 2019.
For additional information on the Firm’s preferred stock, refer to Note 17 of this Form 10-Q and Note 20 of JPMorgan Chase’s 2018 Form 10-K.

Common stock dividends
The currentFirm’s second quarter common stock dividend was $0.56$0.80 per share. On June 28, 2018,27, 2019, the Firm announced that its Board of Directors intends to increase the quarterly common stock dividend to $0.80$0.90 per share, effective the third quarter of 2018.2019. The Firm’s dividends are subject to the Board of Directors’ approval on a quarterly basis.

Common equity
Effective as of June 28, 2018,27, 2019, the Firm’s Board of Directors authorized the repurchase of up to $20.7$29.4 billion of gross common equity (common stock and warrants) between July 1, 20182019 and June 30, 2019,2020, as part of itsthe Firm’s annual capital plan.
The following table sets forth the Firm’s repurchases of common equity, on a settlement-date basis, for the three and six months ended June 30, 20182019 and 2017. There were no repurchases of warrants during the three and six months ended June 30, 2018 and 2017.2018.

Three months ended
June 30,
Six months ended June 30,Three months ended
June 30,
Six months ended
June 30,
(in millions)2018
2017

2018
2017
2019
2018

2019
2018
Total shares of common stock repurchased45.3
35.0

86.7
67.1
47.5
45.3

97.0
86.7
Aggregate common stock repurchases$4,968
$3,007

$9,639
$5,839
$5,210
$4,968

$10,301
$9,639
For additional information regarding repurchases of the Firm’s equity securities, refer to Part II, Item 2: Unregistered Sales of Equity Securities and Use of Proceeds and Part II, Item 5: Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on page 180176 of this Form 10-Q and page 2830 of JPMorgan Chase’s 20172018 Form 10-K, respectively.
There were 12.1 million and 15.0 million warrants outstanding at June 30, 2018 and December 31, 2017, respectively.

Other capital requirements
TLAC
The Federal Reserve’s TLAC rule requires the top-tier U.S. GSIB holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible LTD effective January 1, 2019.
As of June 30, 2018, the Firm was compliant with the requirements of the rule to which it will be subject on January 1, 2019. For additional information, refer to page 9093 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The following table presents the eligible external TLAC and LTD amounts, as well as a representation of the amounts as a percentage of the Firm’s total RWA and total leverage exposure.
June 30, 2019 
(in billions, except ratio)Eligible External TLACEligible LTD
Total eligible TLAC & LTD$388.6
$160.8
% of RWA25.1%10.4%
Minimum requirement23.0
9.5
Surplus/(shortfall)$33.2
$14.1
   
% of total leverage exposure11.5%4.8%
Minimum requirement9.5
4.5
Surplus/(shortfall)$68.7
$9.3
For information on the financial consequences to holders of
the Firm’s debt and equity securities in a resolution
scenario, refer to Part I, Item 1A: Risk Factors on pages
7-28 of JPMorgan Chase’s 2018 Form 10-K.



Broker-dealer regulatory capital
J.P. Morgan Securities
JPMorgan Chase’s principal U.S. broker-dealer subsidiary is J.P. Morgan Securities. J.P. Morgan Securities is subject to Rule 15c3-1 under the Securities Exchange Act of 1934 (the “Net Capital Rule”). J.P. Morgan Securities is also registered as a futures commission merchant and subject to Rule 1.17 of the Commodity Futures Trading Commission (“CFTC”).
For a discussion on J.P. Morgan Securities has elected to compute its minimum netSecurities’ capital requirements, under the “Alternative Netrefer to Capital Requirements”risk management on pages 85-94 of the Net Capital Rule.
Under the market and credit risk standards of Appendix E of the Net Capital Rule, J.P. Morgan Securities is eligible to use the alternative method of computing net capital if, in addition to meeting its minimum net capital requirement, it maintains tentative net capital of at least $1.0 billion. J.P. Morgan Securities is required to notify the Securities and Exchange Commission (“SEC”) in the event that tentative net capital is less than $5.0 billion. As of June 30,JPMorgan Chase’s 2018 J.P. Morgan Securities maintained tentative net capital in excess of the minimum and notification requirements.Form 10-K.
The following table presents J.P. Morgan Securities’ net capital information:capital:
June 30, 2018Net Capital
(in millions)Actual
Minimum
J.P. Morgan Securities$16,649
$2,888
June 30, 2019 
(in millions)Actual
Minimum
Net Capital$20,858
$3,446


J.P. Morgan Securities plc
J.P. Morgan Securities plc is a wholly-owned subsidiary of JPMorgan Chase Bank, N.A. and is the Firm’s principal operating subsidiary in the U.K. It has authority to engage in banking, investment banking and broker-dealer activities. J.P. Morgan Securities plc is jointly regulated by the U.K. Prudential RegulatoryRegulation Authority (“PRA”) and the Financial Conduct Authority (“FCA”).
For a further discussion on J.P. Morgan Securities plc, is subjectrefer to Capital risk management on pages 85-94 of JPMorgan Chase’s 2018 Form 10-K.
Effective January 1, 2019, the European Union Capital Requirements RegulationBank of England requires, on a transitional basis, that U.K. banks, including U.K. regulated subsidiaries of overseas groups, maintain a minimum requirement for own funds and the U.K. PRA capital rules, eacheligible liabilities (“MREL”). As of which implemented Basel III and thereby subjectJune 30, 2019, J.P. Morgan Securities plc was compliant with the requirements of the MREL rule. For additional information on MREL, refer to its requirements.
Supervision and Regulation on pages 1-6 of JPMorgan Chase’s 2018 Form 10-K.
The following table presents J.P. Morgan Securities plc’s capital information:
metrics:
June 30, 2018Total capital CET1 ratio Total capital ratio
(in millions, except ratios)Estimated EstimatedMinimum EstimatedMinimum
J.P. Morgan Securities plc$40,269
 15.94.5 15.98.0
June 30, 2019  
(in millions, except ratios)Estimated
Minimum ratios
Total capital$55,598
 
CET1 ratio17.9%4.5%
Total capital ratio22.9%8.0%





LIQUIDITY RISK MANAGEMENT
Liquidity risk is the risk that the Firm will be unable to meet its contractual and contingent financial obligations as they arise or that it does not have the appropriate amount, composition and tenor of funding and liquidity to support its assets and liabilities. For a further discussion of the Firm’s Liquidity Risk Management, refer to pages 92–9795–100 of JPMorgan Chase’s 2017 Annual Report2018 Form 10-K and the Firm’s US LCR Disclosure reports, which are available on the Firm’s website at: (https://investor.shareholder.com/jpmorganchase/basel.cfm)jpmorganchaseco.gcs-web.com/financial-information/basel-pillar-3-us-lcr-disclosures).
LCR and HQLA
The LCR rule requires the Firm to maintain an amount of unencumbered HQLA that is sufficient to meet its estimated total net cash outflows over a prospective 30 calendar-day period of significant stress. HQLA is the amount of liquid assets that qualify for inclusion in the LCR. HQLA primarily consist of unencumbered cash and certain high qualityhigh-quality liquid securities as defined in the LCR rule. The LCR is required to be a minimum of 100%.
Under the LCR rule, the amount of HQLA held by JPMorgan Chase Bank N.A. and Chase Bank USA, N.A that areis in excess of each entity’sits standalone 100% minimum LCR requirement, and that areis not transferable to non-bank affiliates, must be excluded from the Firm’s reported HQLA. The LCR is required to be a minimum of 100%.
The following table summarizes the Firm’s average LCR for the three months ended June 30, 2018,2019, March 31, 20182019 and June 30, 20172018 based on the Firm’s current interpretation of the finalized LCR framework.
Three months endedThree months ended
Average amount
(in billions)
June 30, 2018March 31, 2018June 30, 2017
Average amount
(in millions)
June 30,
2019		March 31, 2019June 30,
2018
HQLA   
Eligible cash(a)
$363
$358
378
$219,838
$216,787
$362,608
Eligible securities(b)(c)
166
181
163
317,439
303,249
166,427
Total HQLA(d)
$529
$539
541
$537,277
$520,036
$529,035
Net cash outflows$458
468
469
$477,442
$467,329
$458,432
LCR115%115%115%113%111%115%
Net excess HQLA (d)
$71
71
72
$59,835
$52,707
$70,603
(a)
Represents cash on deposit at central banks, primarily the Federal Reserve Banks.
(b)Predominantly U.S. Treasuries, U.S. Agency MBS, and sovereign bonds net of applicable haircuts under the LCR rules.
(c)HQLA eligible securities may be reported in securities borrowed or purchased under resale agreements, trading assets, or investment securities on the Firm’s Consolidated balance sheets.
(d)Excludes average excess HQLA at JPMorgan Chase Bank, N.A. and Chase Bank USA, N.A. that are not transferable to non-bank affiliates.
The Firm’s average LCR increased during the three months ended June 30, 2019, compared with the three-month period ended March 31, 2019, primarily from an increase in cash from unsecured long-term debt issuances.  Additionally, liquidity in JPMorgan Chase Bank, N.A. increased during the quarter due to growth in stable deposits and a reduction in loans, however this increase in excess liquidity is excluded from the Firm’s reported LCR under the LCR rule.
The Firm’s average LCR decreased during the three months ended June 30, 2019, compared with the prior year period.  The decrease in the LCR was driven by a decrease in the amount of HQLA in JPMorgan Chase Bank, N.A. that was determined to be transferable to non-bank affiliates based on a change in the Firm’s interpretation of amounts available for transfer during the three months ended December 31, 2018. This change in interpretation had no impact on the HQLA in JPMorgan Chase Bank, N.A. which had increased over the period.
The Firm’s average LCR may fluctuate from period to period, due to changes in its HQLA and estimated net cash outflows under the LCR as a result of ongoing business activity. The Firm’s HQLA are expected to be available to meet its liquidity needs in a time of stress.
Other liquidity sources
As of June 30, 2018,2019, in addition to assets reported in the Firm’s HQLA under the LCR rule, the Firm had approximately $215$277 billion of unencumbered marketable securities, such as equity securities and fixed income debt securities, available to raise liquidity, if required. This includes HQLA-eligible securities included as part of the excess liquidity at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates.
As of June 30, 2018,2019, the Firm also had approximately $292$314 billion of available borrowing capacity at various Federal Home Loan Banks (“FHLBs”),FHLBs, the discount windowswindow at the Federal Reserve BanksBank, and various other central banks as a result of collateral pledged by the Firm to such banks. This borrowing capacity excludes the benefit of securities reported in the Firm’s HQLA or other unencumbered securities that are currently pledged at the Federal Reserve Bank discount windows.window. Although available, the Firm does not view the borrowing capacity at the Federal Reserve Bank discount windowswindow and the various other central banks as a primary source of liquidity.

Funding
Sources of funds
Management believes that the Firm’s unsecured and secured funding capacity is sufficient to meet its on- and off-balance sheet obligations.
The Firm funds its global balance sheet through diverse sources of funding including a stable deposit franchisedeposits as well as secured and unsecured funding in the capital markets. The Firm’s loan portfoliois funded with a portion of the Firm’s deposits, through securitizations and, with respect to a portion of the Firm’s real estate-related loans, with secured borrowings from the FHLBs. Deposits in excess of the amount utilized to fund loans are primarily invested by Treasury and CIO in the Firm’s investment securities portfolio or deployed in cash or other short-term liquid investments based on their interest rate and liquidity risk
characteristics. Securities borrowed or purchased under resale agreements and trading assets-debt and equity instruments are primarily funded by the Firm’s securities loaned or sold under agreements to repurchase, trading liabilities-debt and equity instruments, and a portion of the Firm’s long-term debt and stockholders’ equity. In addition to funding securities borrowed or purchased under resale agreements and trading assets-debt andequity instruments, proceeds from the Firm’s debt and equity issuances are used to fund certain loans and other financial and non-financial assets, or may be invested in the Firm’s investment securities portfolio. Refer to the discussion below for additional information relating to Deposits, Short-term funding, and Long-term funding and issuance.


Deposits
The table below summarizes, by line of business, the deposit balances as of June 30, 2018,2019, and December 31, 2017,2018, and the average deposit balances for the three and six months ended June 30, 20182019 and 2017,2018, respectively.
June 30, 2018
December 31, 2017
 Three months ended June 30, Six months ended June 30,June 30, 2019
December 31, 2018
 Three months ended June 30, Six months ended June 30,
Deposits Average Average Average Average
(in millions) 2018
2017
 2018
2017
 2019
2018
 2019
2018
Consumer & Community Banking$679,154
$659,885
 $673,761
$639,873
 $666,719
$631,441
$695,100
$678,854
 $690,892
$673,761
 $685,980
$666,719
Corporate & Investment Bank475,761
455,883
 475,697
442,387
 470,788
434,968
523,364
482,084
 512,098
475,697
 502,280
470,788
Commercial Banking165,170
181,512
 170,665
173,081
 173,081
174,843
169,100
170,859
 168,194
170,665
 167,688
173,081
Asset & Wealth Management131,511
146,407
 139,557
150,786
 141,865
154,776
136,225
138,546
 140,317
139,557
 139,282
141,865
Corporate526
295
 815
4,002
 839
4,870
572
323
 793
815
 878
839
Total Firm$1,452,122
$1,443,982
 $1,460,495
$1,410,129
 $1,453,292
$1,400,898
$1,524,361
$1,470,666
 $1,512,294
$1,460,495
 $1,496,108
$1,453,292
A key strength of the Firm is its diversified deposit franchise, through each of its lines of business, which providesDeposits provide a stable source of funding and limitsreduce the Firm’s reliance on the wholesale funding markets. A significant portion of the Firm’s deposits are consumer and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are considered to be stable sources of liquidity because they are generated from customers that maintain operating service relationships with the Firm.
The table below shows the loan and deposit balances, the loans-to-deposits ratios, and deposits as a percentage of total liabilities, as of June 30, 20182019 and December 31, 2017.2018.
(in billions except ratios)June 30, 2018
 December 31, 2017
Deposits$1,452.1
 $1,444.0
Deposits as a % of total liabilities62% 63%
Loans$948.4
 $930.7
Loans-to-deposits ratio65% 64%
(in billions except ratios)June 30, 2019
 December 31, 2018
Deposits$1,524.4
 $1,470.7
Deposits as a % of total liabilities62% 62%
Loans$956.9
 $984.6
Loans-to-deposits ratio63% 67%
Deposits increased from December 31, 2017, due to higher deposits in the consumer business reflecting the continuation of growth from new and existing customers and low attrition rates in CCB, partially offset by balance migration as customers shift from deposits largely into the Firm’s investment-related products; and in the wholesale business reflecting an increase in CIB’s Treasury Services business driven by growth in client activity. The increase was partially offset by declines in the other wholesale businesses primarily driven by the impact of seasonality in CB and AWM, and balance migration in AWM predominantly into the Firm’s investment-related products.
Average deposits increased for the three and six months ended June 30, 2018, due to higher deposits in the consumer business and in CIB, partially offset by declines in AWM and Corporate. Drivers of the changes in average balances for these businesses are generally consistent with the drivers of the changes in the period-end balances described above. The decline in average Corporate deposits was predominantly due to maturities of wholesale non-operating deposits, which are consistent with the Firm’s efforts to reduce such products. The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances.
Average deposits increased for the three months ended June 30, 2019 in CIB, CCB and AWM, partially offset by a decline in CB.
The increase in CIB reflects an increase in deposits in Treasury Services and Securities Services driven by growth in client activity, and an increase in the net issuances of structured notes in Markets. The increase in CCB was driven by growth in new accounts. The increase in AWM was driven by growth in time deposits, partially offset by migration predominantly into the Firm’s investment-related products.
The decrease in CB was primarily driven by lower non-operating deposits.
Average deposits increased for the six months ended June 30, 2019 in CIB and CCB, partially offset by declines in CB and AWM.
The increase in CIB reflects an increase in deposits in Treasury Services driven by growth in client activity, and an increase in the net issuances of structured notes in Markets. The increase in CCB was driven by growth in new accounts.
The decrease in CB was primarily driven by lower non-operating deposits. The decrease in AWM was largely driven by migration predominantly into the Firm’s investment-related products.
For further information on deposit and liability balance trends, refer to the discussion of the Firm’s Business Segment Results and the Consolidated Balance Sheets Analysis on pages 18–4021–42 and pages 11–13,15–17, respectively.


The following table summarizes short-term and long-term funding, excluding deposits, as of June 30, 2018,2019, and December 31, 2017,2018, and average balances for the three and six months endedJune 30, 20182019 and 2017,2018, respectively. For additional information, refer to the Consolidated Balance Sheets Analysis on pages 11–1315–17 and Note 10.
 June 30, 2018December 31, 2017 Three months ended June 30, Six months ended June 30,
Sources of funds (excluding deposits) Average Average
(in millions) 2018
2017
 2018
2017
Commercial paper$28,049
24,186
 $27,143
$19,466
 $26,571
$16,432
Other borrowed funds35,869
27,616
 35,196
23,693
 33,413
23,427
Total short-term borrowings$63,918
$51,802
 $62,339
$43,159
 $59,984
$39,859
Obligations of Firm-administered multi-seller conduits(a)
$2,969
$3,045
 $2,993
$2,750
 $3,054
$3,557
         
Securities loaned or sold under agreements to repurchase:        
Securities sold under agreements to repurchase(b)
$164,691
$147,713
 $178,064
$180,512
 $181,212
$177,389
Securities loaned(b)
9,809
9,211
 13,058
14,752
 11,799
14,602
Total securities loaned or sold under agreements to repurchase(b)(c)(d)
$174,500
$156,924
 $191,122
$195,264
 $193,011
$191,991
         
Senior notes$151,244
$155,852
 $151,047
$153,661
 $150,635
$151,557
Trust preferred securities(e)
682
690
 684
2,340
 686
2,342
Subordinated debt(e)
15,963
16,553
 16,010
20,546
 16,120
20,857
Structured notes48,036
45,727
 48,674
42,957
 47,842
40,941
Total long-term unsecured funding$215,925
$218,822
 $216,415
$219,504
 $215,283
$215,697
         
Credit card securitization(a)
$16,505
$21,278
 $16,181
$27,034
 $17,416
$28,226
Other securitizations(a)(f)
—
—
 —
1,003
 —
1,262
Federal Home Loan Bank (“FHLB”) advances52,162
60,617
 54,232
73,053
 57,291
75,155
Other long-term secured funding(g)
5,027
4,641
 4,998
3,311
 4,741
3,204
Total long-term secured funding$73,694
$86,536
 $75,411
$104,401
 $79,448
$107,847
         
Preferred stock(h)
$26,068
$26,068
 $26,068
$26,068
 $26,068
$26,068
Common stockholders’ equity(h)
$231,390
$229,625
 $228,901
$230,200
 $228,261
$228,959
 June 30, 2019December 31, 2018 Three months ended June 30, Six months ended June 30,
Sources of funds (excluding deposits)Average Average
(in millions)2019
2018
 2019
2018
Commercial paper$25,268
$30,059
 $26,030
$27,143
 $27,373
$26,571
Other borrowed funds(a)
9,762
8,789
 11,818
11,840
 11,037
11,993
Total short-term unsecured funding(a)
$35,030
$38,848
 $37,848
$38,983
 $38,410
$38,564
Securities sold under agreements to repurchase(b)
$192,837
$171,975
 $218,057
$178,064
 $207,812
$181,212
Securities loaned(b)
7,799
9,481
 8,090
13,058
 9,428
11,799
Other borrowed funds(a)(c)
24,860
30,428
 27,840
23,356
 31,690
21,420
Obligations of Firm-administered multi-seller conduits(d)
$14,734
$4,843
 $13,356
$2,993
 $10,387
$3,054
Total short-term secured funding(a)
$240,230
$216,727
 $267,343
$217,471
 $259,317
$217,485
         
Senior notes$170,626
$162,733
 $167,376
$151,047
 $165,176
$150,635
Trust preferred securities—
—
 —
684
 —
686
Subordinated debt17,540
16,743
 17,056
16,010
 16,890
16,120
Structured notes(e)
66,377
53,090
 62,284
48,674
 59,853
47,842
Total long-term unsecured funding$254,543
$232,566
 $246,716
$216,415
 $241,919
$215,283
         
Credit card securitization(d)
$9,302
$13,404
 $11,671
$16,181
 $12,535
$17,416
Federal Home Loan Bank (“FHLB”) advances29,649
44,455
 34,541
54,232
 39,227
57,291
Other long-term secured funding(f)
4,677
5,010
 4,680
4,998
 4,785
4,741
Total long-term secured funding$43,628
$62,869
 $50,892
$75,411
 $56,547
$79,448
         
Preferred stock(g)
$26,993
$26,068
 $26,993
$26,068
 $27,059
$26,068
Common stockholders’ equity(g)
$236,222
$230,447
 $233,026
$228,901
 $231,547
$228,261
(a)The prior period amounts have been revised to conform with the current period presentation.
(b)Primarily consists of short-term securities loaned or sold under agreements to repurchase.
(c)Includes FHLB advances with original maturities of less than one year of $5.6 billion and $11.4 billion as of June 30, 2019 and December 31, 2018, respectively.
(d)Included in beneficial interests issued by consolidated variable interest entities on the Firm’s Consolidated balance sheets.
(b)The prior period amounts have been revised to conform with the current period presentation.
(c)Primarily consists of short-term securities loaned or sold under agreements to repurchase.
(d)Excludes federal funds purchased.
(e)SubordinatedIncludes certain TLAC-eligible long-term unsecured debt includes $1.6 billion of junior subordinated debentures distributed pro rata toissued by the holders of trust preferred securities which were cancelled on December 18, 2017. For further information refer to Note 19 of JPMorgan Chase’s 2017 Annual Report.Parent Company.
(f)Other securitizations include securitizations of student loans. The Firm deconsolidated the student loan securitization entities in the second quarter of 2017 as it no longer had a controlling financial interest in these entities as a result of the sale of the student loan portfolio. The Firm’s wholesale businesses also securitize loans for client-driven transactions, which are not considered to be a source of funding for the Firm and are not included in the table.
(g)Includes long-term structured notes which are secured.
(h)(g)For additional information on preferred stock and common stockholders’ equity refer to Capital Risk Management on pages 43–47,44–48, Consolidated statements of changes in stockholders’ equity, and Note 20 and Note 21 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Short-term funding
The Firm’s sources of short-term secured funding primarily consist of securities loaned or sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and agency MBS, and constitute a significant portion of the federal funds purchased and securities loaned or sold under repurchase agreements on the Consolidated balance sheets. The increase at June 30, 2018,2019, from December 31, 2017,2018, reflected higher secured financing of trading assets-debt and equity instruments partially offset by a changeand client-driven market-making activities in the mix of funding to short-term borrowings in CIB.
 
The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to customers’ investment and financing activities;activities, the Firm’s demand for financing;financing, the ongoing management of the mix of the Firm’s liabilities, including its secured and unsecured financing (for both the investment securities and market-making portfolios);, and other market and portfolio factors.
The Firm’s sources of short-term unsecured funding primarily consist of issuance of wholesale commercial paper. The increasedecrease in commercial paper at June 30, 2019, from December 31, 2018, was due to higherlower net issuance.issuance primarily for short-term liquidity management.


Long-term funding and issuance
Long-term funding provides additional sources of stable funding and liquidity for the Firm. The Firm’s long-term funding plan is driven primarily by expected client activity, liquidity considerations, and regulatory requirements, including TLAC. Long-term funding objectives include maintaining diversification, maximizing market access and optimizing funding costs. The Firm evaluates various funding markets, tenors and currencies in creating its optimal long-term funding plan.
The significant majority of the Firm’s long-term unsecured funding is issued by the Parent Company to provide maximum flexibility in support of both bank and nonbank subsidiary funding needs. The Parent Company advances substantially all net funding proceeds to its subsidiary, the Intermediate Holding Company (“IHC”). The IHC does not issue debt to external counterparties. The following table summarizes long-term unsecured issuance and maturities or redemptions for the three and six months ended June 30, 20182019 and 2017.2018. For additional information on the IHC and long-term debt, refer to Liquidity Risk Management and Note 19 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Long-term unsecured fundingLong-term unsecured funding   Long-term unsecured funding       
Three months ended June 30, 
Six months ended
June 30,
Three months ended June 30, Six months ended June 30, Three months ended June 30, Six months ended June 30,
(in millions)2018
2017
 2018
2017
2019
2018
 2019
2018
 2019
2018
 2019
2018
(Notional in millions)
Parent Company(b)
 
Subsidiaries(b)
Issuance          
Senior notes issued in the U.S. market(a)
$10,470
$8,218
 $18,451
$14,681
Senior notes issued in the U.S. market$4,000
$7,000
 $8,250
$11,000
 $—
$3,500
 $1,750
$7,511
Senior notes issued in non-U.S. markets1,170
2,210
 1,170
2,210
—
1,175
 2,248
1,175
 —
—
 —
—
Total senior notes11,640
10,428
 19,621
16,891
4,000
8,175
 10,498
12,175
 —
3,500
 1,750
7,511
Subordinated debt—
—
 —
—
Structured notes8,095
8,160
 15,883
16,594
Structured notes(a)
631
829
 1,816
1,660
 9,016
7,267
 15,132
14,225
Total long-term unsecured funding – issuance$19,735
$18,588
 $35,504
$33,485
$4,631
$9,004
 $12,314
$13,835
 $9,016
$10,767
 $16,882
$21,736
          
Maturities/redemptions          
Senior notes$6,827
$3,615
 $20,951
$14,042
$4,157
$3,928
 $7,907
$17,987
 $1
$2,899
 $1,816
$2,964
Trust preferred securities—
—
 —
—
Subordinated debt—
2,011
 —
3,006
—
—
 146
—
 —
—
 —
—
Structured notes4,986
7,043
 10,513
12,373
331
1,068
 959
1,883
 4,327
3,918
 8,160
8,630
Total long-term unsecured funding – maturities/redemptions$11,813
$12,669
 $31,464
$29,421
$4,488
$4,996
 $9,012
$19,870
 $4,328
$6,817
 $9,976
$11,594
(a)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.
(b)The prior period amounts have been revised to conform with the current period presentation.
The Firm raises secured long-term funding through securitization of consumer credit card loans and advances from the FHLBs. The following table summarizes the securitization issuance and FHLB advances and their respective maturities or redemptions for the three and six months ended June 30, 2019 and 2018, and 2017, respectively.
Long-term secured fundingLong-term secured funding      Long-term secured funding      
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
Issuance Maturities/Redemptions Issuance Maturities/RedemptionsIssuance Maturities/Redemptions Issuance Maturities/Redemptions
(in millions)20182017 20182017 2018
2017
 2018
2017
20192018 20192018 2019
2018
 2019
2018
Credit card securitization$1,396
$—
 $1,725
$3,016
 $1,396
$1,545
 $6,125
$7,006
$—
$1,396
 $4,125
$1,725
 $—
$1,396
 $4,125
$6,125
Other securitizations(a)
—
—
 —
—
 —
—
 —
55
FHLB advances—
—
 4,702
5,852
 4,000
—
 12,453
11,054
—
—
 12,804
4,702
 —
4,000
 14,805
12,453
Other long-term secured funding(b)(c)
74
434
 6
80
 195
537
 22
124
Other long-term secured funding(a)
18
74
 207
6
 53
195
 453
22
Total long-term secured funding$1,470
$434
 $6,433
$8,948
 $5,591
$2,082
 $18,600
$18,239
$18
$1,470
 $17,136
$6,433
 $53
$5,591
 $19,383
$18,600
(a)Other securitizations includes securitizations of student loans. The Firm deconsolidated the student loan securitization entities in the second quarter of 2017 as it no longer had a controlling financial interest in these entities as a result of the sale of the student loan portfolio.
(b)Includes long-term structured notes which are secured.
(c)The prior period amounts have been revised to conform with the current period presentation.
The Firm’s wholesale businesses also securitize loans for client-driven transactions; those client-driven loan securitizations are not considered to be a source of funding for the Firm and are not included in the table above. For further description of the client-driven loan securitizations, refer to Note 14 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.


Credit ratings
The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm’s access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm.

The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors, which the Firm believes are incorporated in its liquidity risk and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.
 
Additionally, the Firm’s funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. For additional information on the impact of a credit ratings downgrade on the funding requirements for VIEs, and on derivatives and collateral agreements, refer to SPEs on page 14,18, and Liquidityliquidity risk and credit-related contingent features in Note 4.

The credit ratings of the Parent Company and the Firm’s principal bank and nonbanknon-bank subsidiaries as of June 30, 2018,2019, were as follows.
 JPMorgan Chase & Co. 
JPMorgan Chase Bank, N.A.
Chase Bank USA, N.A.(a)
 
J.P. Morgan Securities LLC
J.P. Morgan Securities plc
June 30, 20182019Long-term issuerShort-term issuerOutlook Long-term issuerShort-term issuerOutlook Long-term issuerShort-term issuerOutlook
Moody’s Investors ServiceA3P-2StableAa3A2P-1Stable A1Aa2P-1StableAa3P-1Stable
Standard & Poor’sA-A-2Stable A+A-1Stable A+A-1Stable
Fitch RatingsAA-F1+Stable AAF1+Stable AAF1+Stable
(a)On May 18, 2019, the Firm merged Chase Bank USA, N.A. with and into JPMorgan Chase Bank, N.A., with JPMorgan Chase Bank, N.A. as the surviving bank. The credit rating for JPMorgan Chase Bank, N.A. reflects the credit rating of the merged entity.
On June 21, 2018, Fitch upgradedFor a discussion of the factors that could affect credit ratings of the Parent Company’s long term issuer rating to AA- (previously A+)Company and short term issuer rating to F1+ (previously F1). The long term issuer ratings were also upgraded to AA for JPMorgan Chase Bank, N.A, Chase Bank USA, N.A., J.P. Morgan Securities LLC and J.P. Morgan Securities plc (all previously AA-).
Downgrades of the Firm’s long-term ratings by one or two notches could result in an increase in its costprincipal bank and non-bank subsidiaries, refer to page 100 of funds, and access to certain funding markets could be reduced. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors which the Firm believes are incorporated in its liquidity risk and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.
JPMorgan Chase’s unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firm’s credit ratings, financial ratios, earnings, or stock price.2018 Form 10-K.

Critical factors in maintaining high credit ratings include a stable and diverse earnings stream, strong capital ratios, strong credit quality and risk management controls, diverse funding sources, and disciplined liquidity monitoring procedures. Rating agencies continue to evaluate economic and geopolitical trends, regulatory developments, future profitability, risk management practices, and litigation matters, as well as their broader ratings methodologies. Changes in any of these factors could lead to changes in the Firm’s credit ratings.



CREDIT AND INVESTMENT RISK MANAGEMENT
Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments.investments, including consumer credit risk,
wholesale credit risk, and investment portfolio risk. For a further discussion of Credit Risk refer to pages 53–70. 54–69.
For a further discussion onof Investment Portfolio Risk, refer to page 70.69. For a further discussion of the Firm’s Credit and Investment Risk Management framework and organization, and the identification, monitoring and management, refer to Credit and Investment Risk Management on pages 99–120102-123 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.



CREDIT PORTFOLIO
Credit risk is the risk associated with the default or change in credit profile of a client, counterparty or customer.
In the following tables, reported loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets. For further information regarding these loans, refer to Notes 2 and 3. For additional information on the Firm’s loans, lending-related commitments and derivative receivables, including the Firm’s accounting policies, refer to Notes 11, 20,22, and 4, respectively.
For further information regarding the credit risk inherent in the Firm’s cash placed with banks, refer to Wholesale credit exposure – industry exposures on pages 62–64; for information regarding the credit risk inherent in the Firm’s investment securities portfolio, refer to Note 9 of this Form 10-Q, and Note 10 of JPMorgan Chase’s 2017 Annual Report;2018 Form 10-K; and for information regarding the credit risk inherent in the securities financing portfolio, refer to Note 10 of this Form 10-Q, and Note 11 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
For a further discussion of the consumer credit environment and consumer loans, refer to Consumer Credit Portfolio on pages 102–107106–111 of JPMorgan Chase’s 2017 Annual Report2018 Form 10-K and Note 11 of this Form 10-Q. For a further discussion of the wholesale credit environment and wholesale loans,
refer to Wholesale Credit Portfolio on pages 108–116112–119 of JPMorgan Chase’s 2017 Annual Report2018 Form 10-K and Note 11 of this Form 10-Q.
Total credit portfolio    
 Credit exposure 
Nonperforming(d)(e)
(in millions)Jun 30,
2019
Dec 31,
2018
 Jun 30,
2019
Dec 31,
2018
Loans retained$947,728
$969,415
 $4,469
$4,611
Loans held-for-sale4,852
11,988
 221
—
Loans at fair value4,309
3,151
 180
220
Total loans–reported956,889
984,554
 4,870
4,831
Derivative receivables52,878
54,213
 39
60
Receivables from customers and other(a)
27,414
30,217
 —
—
Total credit-related assets1,037,181
1,068,984
 4,909
4,891
Assets acquired in loan satisfactions     
Real estate ownedNA
NA
 325
269
OtherNA
NA
 26
30
Total assets acquired in loan satisfactions
NA
NA
 351
299
Lending-related commitments1,079,762
1,039,258
 465
469
Total credit portfolio$2,116,943
$2,108,242
 $5,725
$5,659
Credit derivatives used
in credit portfolio management activities(b)
$(15,292)$(12,682) $—
$—
Liquid securities and other cash collateral held against derivatives(c)
(14,676)(15,322) NA
NA
 
Total credit portfolio    
 Credit exposure 
Nonperforming(d)(e)
(in millions)Jun 30,
2018
Dec 31,
2017
 Jun 30,
2018
Dec 31,
2017
Loans retained$940,440
$924,838
 $5,135
$5,943
Loans held-for-sale4,898
3,351
 175
—
Loans at fair value3,076
2,508
 —
—
Total loans – reported948,414
930,697
 5,310
5,943
Derivative receivables58,510
56,523
 112
130
Receivables from customers and other(a)
27,607
26,272
 —
—
Total credit-related assets1,034,531
1,013,492
 5,422
6,073
Assets acquired in loan satisfactions     
Real estate ownedNA
NA
 312
311
OtherNA
NA
 33
42
Total assets acquired in loan satisfactions
NA
NA
 345
353
Lending-related commitments1,045,993
991,482
 712
731
Total credit portfolio$2,080,524
$2,004,974
 $6,479
$7,157
Credit derivatives used
in credit portfolio management activities(b)
$(15,229)$(17,609) $—
$—
Liquid securities and other cash collateral held against derivatives(c)
(16,103)(16,108) NA
NA
(in millions,
except ratios)
Three months ended
June 30,		 Six months ended
June 30,
2019
2018
 2019
2018
Net charge-offs$1,403
$1,252
 $2,764
$2,587
Average retained loans     
Loans945,209
932,042
 950,852
926,268
Loans – reported, excluding
residential real estate PCI loans		922,495
903,263
 927,681
896,856
Net charge-off rates     
Loans0.60%0.54% 0.59%0.56%
Loans – excluding PCI0.61
0.56
 0.60
0.58
(in millions,
except ratios)
Three months ended
June 30,		 Six months ended
June 30,
2018
2017
 2018
2017
Net charge-offs(f)
$1,252
$1,204
 $2,587
$2,858
Average retained loans     
Loans932,042
892,840
 926,268
889,229
Loans – excluding residential real estate PCI loans903,263
859,102
 896,856
854,842
Net charge-off rates(f)
     
Loans0.54%0.54% 0.56%0.65%
Loans – excluding PCI0.56
0.56
 0.58
0.67
(a)Receivables from customers and other primarily represents prime brokerage-related held-for-investment margin loans to brokerage customers.customer receivables.
(b)Represents the net notional amount of protection purchased and sold through credit derivatives used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. For additional information, refer to Credit derivatives on page 66 and Note 4.
(c)Includes collateral related to derivative instruments where an appropriate legal opinion has not been either sought or obtained.
(d)Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as each of the pools is performing.
(e)At June 30, 2018,2019, and December 31, 2017,2018, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $3.3$1.8 billion and $4.3$2.6 billion, respectively, and real estate owned (“REO”) insured by U.S. government agencies of $84$56 million and $95$75 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance issued by the Federal Financial Institutions Examination Council (“FFIEC”).
(f)For the six months ended June 30, 2017, excluding net charge-offs of $467 million related to the student loan portfolio transfer, the net charge-off rate for Loans would have been 0.54% and for Loans – excluding PCI would have been 0.56%.



CONSUMER CREDIT PORTFOLIO
The Firm’s retained consumer portfolio consists primarily of residential real estate loans, credit card loans, auto loans, and business banking loans, as well as associated lending-related commitments. The Firm’s focus is on serving primarily the prime segment of the consumer credit market. For further information on consumer loans, refer to Note 11 of this Form
10-Q and Consumer Credit Portfolio on pages 102-107106–111 and Note 12 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K. For further information on lending-related commitments, refer to Note 2022 of this Form 10-Q and Note 27 of JPMorgan Chase’s 2017 Annual Report.
2018 Form 10-K.
The following table presents consumer credit-related information with respect to the credit portfolio held by CCB, prime mortgage and home equity loans held by AWM, and prime mortgage loans held by Corporate. For further information about the Firm’s nonaccrual and charge-off accounting policies, refer to Note 12 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Consumer credit portfolioConsumer credit portfolio           Consumer credit portfolio           
    Three months ended June 30, Six months ended June 30,     Three months ended June 30, Six months ended June 30,

(in millions, except ratios)		Credit exposure 
Nonaccrual
loans(i)(j)
 
Net
charge-offs/(recoveries)(k)
 
Average annual
net charge-off/(recoveries) rate(k)(l)
 
Net
charge-offs/(recoveries)(d)(k)
 
Average annual
net charge-off/(recoveries) rate(d)(k)(l)
Credit exposure 
Nonaccrual loans(f)(g)
 
Net charge-offs/(recoveries)(h)
 
Net charge-off/(recoveries) rate(h)(i)
 
Net charge-offs/(recoveries)(h)
 
Net charge-off/(recoveries) rate(h)(i)
Jun 30,
2018
Dec 31,
2017
 Jun 30,
2018
Dec 31,
2017
 2018
2017
 2018
2017
 2018
2017
 2018
2017
Jun 30,
2019
Dec 31,
2018
 Jun 30,
2019
Dec 31,
2018
 2019
2018
 2019
2018
 2019
2018
 2019
2018
Consumer, excluding credit card                        
Loans, excluding PCI loans and loans held-for-sale                      
Residential mortgage$225,864
$216,496
 $2,101
$2,175
 $(151)$(3) (0.27)%(0.01)% $(151)$—
 (0.14)%—%$214,744
$231,078
 $1,691
$1,765
 $(13)$(151) (0.02)%(0.27)% $(16)$(151) (0.01)%(0.14)%
Home equity30,460
33,450
 1,481
1,610
 (7)9
 (0.09)0.10
 10
58
 0.06
0.31
26,017
28,340
 1,209
1,323
 (16)(7) (0.24)(0.09) (15)10
 (0.11)0.06
Auto(a)(b)
65,014
66,242
 124
141
 50
48
 0.31
0.29
 126
129
 0.39
0.40
62,073
63,573
 108
128
 42
50
 0.27
0.31
 100
126
 0.32
0.39
Consumer & Business Banking(b)(c)
26,272
25,789
 273
283
 50
56
 0.77
0.91
 103
113
 0.80
0.93
26,616
26,612
 223
245
 66
50
 1.00
0.77
 125
103
 0.95
0.80
Student(d)
—
—
 —
—
 —
—
 —
—
 —
498
 —
NM
Total loans, excluding PCI loans and loans held-for-sale347,610
341,977
 3,979
4,209
 (58)110
 (0.07)0.13
 88
798
 0.05
0.49
329,450
349,603
 3,231
3,461
 79
(58) 0.09
(0.07) 194
88
 0.11
0.05
Loans – PCI                        
Home equity9,849
10,799
 NA
NA
 NA
NA
 NA
NA
 NA
NA
 NA
NA
8,149
8,963
 NA
NA
 NA
NA
 NA
NA
 NA
NA
 NA
NA
Prime mortgage5,437
6,479
 NA
NA
 NA
NA
 NA
NA
 NA
NA
 NA
NA
4,343
4,690
 NA
NA
 NA
NA
 NA
NA
 NA
NA
 NA
NA
Subprime mortgage2,249
2,609
 NA
NA
 NA
NA
 NA
NA
 NA
NA
 NA
NA
1,857
1,945
 NA
NA
 NA
NA
 NA
NA
 NA
NA
 NA
NA
Option ARMs(e)
9,442
10,689
 NA
NA
 NA
NA
 NA
NA
 NA
NA
 NA
NA
Option ARMs7,893
8,436
 NA
NA
 NA
NA
 NA
NA
 NA
NA
 NA
NA
Total loans – PCI26,977
30,576
 NA
NA
 NA
NA
 NA
NA
 NA
NA
 NA
NA
22,242
24,034
 NA
NA
 NA
NA
 NA
NA
 NA
NA
 NA
NA
Total loans – retained374,587
372,553
 3,979
4,209
 (58)110
 (0.06)0.12
 88
798
 0.05
0.44
351,692
373,637
 3,231
3,461
 79
(58) 0.09
(0.06) 194
88
 0.11
0.05
Loans held-for-sale110
128
 —
—
 —
—
 —
—
 —
—
 —
—
1,030
95
 31
—
 NA
NA
 NA
NA
 NA
NA
 NA
NA
Total consumer, excluding credit card loans374,697
372,681
 3,979
4,209
 (58)110
 (0.06)0.12
 88
798
 0.05
0.44
352,722
373,732
 3,262
3,461
 79
(58) 0.09
(0.06) 194
88
 0.11
0.05
Lending-related commitments(f)
51,784
48,553
          
Receivables from customers(g)
153
133
          
Lending-related commitments(d)
51,491
46,066
          
Receivables from customers21
154
          
Total consumer exposure, excluding credit card426,634
421,367
          404,234
419,952
          
Credit card                      
Loans retained(h)
145,221
149,387
 —
—
 1,164
1,037
 3.27
3.01
 2,334
2,030
 3.30
2.98
Loans retained(e)
157,568
156,616
 —
—
 1,240
1,164
 3.24
3.27
 2,442
2,334
 3.23
3.30
Loans held-for-sale34
124
 —
—
 —
—
 —
—
 —
—
 —
—
8
16
 —
—
 NA
NA
 NA
NA
 NA
NA
 NA
NA
Total credit card loans145,255
149,511
 —
—
 1,164
1,037
 3.27
3.01
 2,334
2,030
 3.30
2.98
157,576
156,632
 —
—
 1,240
1,164
 3.24
3.27
 2,442
2,334
 3.23
3.30
Lending-related commitments(f)
592,452
572,831
          
Lending-related commitments(d)
633,970
605,379
          
Total credit card exposure737,707
722,342
          791,546
762,011
          
Total consumer credit portfolio$1,164,341
$1,143,709
 $3,979
$4,209
 $1,106
$1,147
 0.86 %0.92 % $2,422
$2,828
 0.95 %1.14%$1,195,780
$1,181,963
 $3,262
$3,461
 $1,319
$1,106
 1.04 %0.86 % $2,636
$2,422
 1.03 %0.95 %
Memo: Total consumer credit portfolio, excluding PCI$1,137,364
$1,113,133
 $3,979
$4,209
 $1,106
$1,147
 0.91 %0.99 % $2,422
$2,828
 1.00 %1.22%$1,173,538
$1,157,929
 $3,262
$3,461
 $1,319
$1,106
 1.09 %0.91 % $2,636
$2,422
 1.08 %1.00 %
(a)At June 30, 2018,2019, and December 31, 2017,2018, excluded operating lease assets of $18.8$21.5 billion and $17.1$20.5 billion, respectively. These operating lease assets are included in other assets on the Firm’s Consolidated balance sheets. The risk of loss on these assets relatesFor further information, refer to the residual value of the leased vehicles, which is managed through projection of the lease residual value at lease origination, periodic review of residual values, and through arrangements with certain auto manufacturers that mitigates this risk.Note 16.
(b)Includes certain business banking and auto dealer risk-rated loans that apply the wholesale methodology for determining the allowance for loan losses; these loans are managed by CCB, and therefore, for consistency in presentation, are included within the consumer portfolio.
(c)Predominantly includes Business Banking loans.
(d)For the six months ended June 30, 2017, excluding net charge-offs of $467 million related to the student loan portfolio sale, the net charge-off rate for Total consumer, excluding credit card and PCI loans and loans held-for-sale would have been 0.20%; Total consumer – retained excluding credit card loans would have been 0.18%; Total consumer credit portfolio would have been 0.95%; and Total consumer credit portfolio, excluding PCI loans would have been 1.02%.
(e)At both June 30, 2018, and December 31, 2017, approximately 68% of the PCI option adjustable rate mortgage (“ARM”) portfolio has been modified into fixed-rate, fully amortizing loans.

(f)Credit card and home equity lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. For credit card commitments, and if certain conditions are met, home equity commitments, the Firm can reduce or cancel these lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. For further information, refer to Note 20.22.
(g)Receivables from customers represent held-for-investment margin loans to brokerage customers that are collateralized through assets maintained in the clients’ brokerage accounts. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets.
(h)(e)Includes billed interest and fees net of an allowance for uncollectible interest and fees.
(i)(f)At June 30, 20182019 and December 31, 2017,2018, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $3.3$1.8 billion and $4.3$2.6 billion, respectively. These amounts have been excluded from nonaccrual loans based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status, as permitted by regulatory guidance issued by the FFIEC.
(j)(g)Excludes PCI loans. The Firm is recognizing interest income on each pool of PCI loans as each of the pools is performing.
(k)(h)Net charge-offscharge-offs/(recoveries) and the net charge-offcharge-off/(recovery) rates excluded write-offs in the PCI portfolio of $73$39 million and $22$73 million for the three months ended June 30, 20182019 and 2017,2018, respectively, and $93$89 million and $46$93 million for the six months ended June 30, 20182019 and 2017,2018, respectively. These write-offs decreased the allowance for loan losses for PCI loans. Refer to Allowance for Credit Losses on pages 67–6968 for further information.
(l)(i)Average consumer loans held-for-sale were $1.2 billion and $291 million and $4.9 billion for the three months ended June 30, 20182019 and 2017,2018, respectively, and $1.2 billion and $263 million and $2.6 billion for the six months ended June 30, 20182019 and 2017,2018, respectively. These amounts were excluded when calculating net charge-offcharge-off/(recovery) rates.


Consumer, excluding credit card
Portfolio analysis
Consumer loanLoan balances increaseddecreased from December 31, 2017 predominantly2018 due to originationslower consumer loans in the residential real estate portfolio, predominantly driven by loan sales in Home Lending. The credit performance of high-quality prime mortgage loans that have been retained on the balance sheet, largely offset by paydownsportfolio continues to benefit from a strong labor market and the charge-off or liquidation of delinquent loans.continued improvement in home prices.
PCI loans are excluded from theThe following discussions ofprovide information concerning individual loan products, andexcluding PCI loans which are addressed separately below.separately. For further information about the Firm’s consumerthis portfolio, including information about delinquencies, loan modifications and other credit quality indicators, refer to Note 11 of this Form 10-Q.
Residential mortgage:The residential mortgage portfolio predominantly consists of high-quality prime mortgage loans, with a small component consisting of subprime mortgage loans (approximately 1%). These subprime mortgage loans continue to run off and are performing in line with expectations. The residential mortgage portfolio, including loans held-for-sale, increased from December 31, 2017 as the amountpredominantly consists of retained originations of primarily high-quality prime mortgage loans exceeded paydowns. Residential mortgage 30+ day delinquenciesloans. The portfolio decreased from December 31, 2017. Nonaccrual2018 driven by loan sales in Home Lending as well as paydowns, partially offset by originations of prime mortgage loans decreased from December 31, 2017 due to lower delinquencies.that have been retained on the balance sheet. Net recoveries for the three and six months ended June 30, 20182019 were higherlower when compared with the same periodperiods in the prior year reflectingas the prior year benefited from a recovery on a loan sale as well as continued improvement in home prices and delinquencies.sale.
At June 30, 2018,2019, and December 31, 2017,2018, the Firm’s residential mortgage portfolio included $20.8$21.8 billion and $20.2$21.6 billion, respectively, of interest-only loans. These loans have an interest-only payment period generally followed by an adjustable-rate or fixed-rate fully amortizing payment period to maturity and are typically originated as higher-balance loans to higher-income borrowers. To date, losses onborrowers, predominantly in AWM. Performance of this portfolio generally have been consistentfor the three and six months ended June 30, 2019 was in line with the performance of the broader residential mortgage portfolio. The Firm continues to monitorportfolio for the risks associated with these loans.same period.
The following table provides a summary of the Firm’s residential mortgage portfolio insured and/or guaranteed by U.S. government agencies, including loans held-for-sale. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses.
(in millions)June 30, 2018
December 31, 2017
June 30,
2019
December 31,
2018
Current$3,194
$2,401
$2,319
$2,884
30-89 days past due1,741
1,958
1,080
1,528
90 or more days past due3,254
4,264
1,809
2,600
Total government guaranteed loans$8,189
$8,623
$5,208
$7,012
Home equity:The home equity portfolio declined from December 31, 20172018 primarily reflecting loan paydowns. The amount of 30+ day delinquencies decreased from December 31, 2017. Nonaccrual loans decreased from December 31, 2017 primarily as a result of loss mitigation activities. Net recoveries for the three months ended June 30, 2018 and net charge-offs for the six months ended June 30, 2018 improved when compared with the same period in the prior year, as a result of lower loan balances and continued improvement in home prices and delinquencies.
At June 30, 2018,2019, approximately 90% of the Firm’s home equity portfolio consisted of home equity lines of credit (“HELOCs”) and the remainder consisted of home equity loans (“HELOANs”). The carrying value of HELOCs outstanding was $27$24 billion at June 30, 2018.2019. This amount
included $13$10 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified and $5$4 billion of interest-only balloon HELOCs, which primarily mature after 2030. The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are exhibiting a material deterioration in their credit risk profile.

The Firm monitors risks associated with junior lien loans where the borrower has a senior lien loan that is either delinquent or has been modified. These loans are considered “high-risk seconds” and are classified as nonaccrual as they are considered to pose a higher risk of default than other junior lien loans. The carrying value of high-risk seconds declined from December 31, 2017.
For further information on the Firm’s home equity portfolio, refer to Note 11 of this Form 10-Q and Consumer Credit Portfolio on pages 102-107106–111 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Auto: The auto loan portfolio which predominantly consists of prime-quality loans,loans. The portfolio declined when compared with December 31, 2017,2018, as paydowns and the charge-offcharge-offs or liquidation of delinquent loans were partiallypredominantly offset by new originations. Nonaccrual
Consumer & Business Banking: Consumer & Business Banking loans decreased fromwere flat when compared with December 31, 2017.2018 as loan originations were offset by paydowns and charge-offs of delinquent loans. Net charge-offs for the three and six months endedJune 30, 2018 were relatively flat2019 increased when compared with the same period in the prior year.year due primarily to higher deposit overdraft losses.
Consumer & Business Banking: Consumer & Business Banking loans increased when compared with December 31, 2017, as growth due to loan originations was predominantly offset by paydowns and the charge-off or liquidation of delinquent loans. Nonaccrual loans decreased from December 31, 2017. Net charge-offs for the three and six months endedJune 30, 2018 decreased when compared with the same period in the prior year.
Purchased credit-impaired loans:PCI loans represent certain loans that were acquired and deemed to be credit-impaired on the acquisition date. PCI loans decreased from December 31, 20172018 due to portfolio run off and a loan sale.off. As of June 30, 2018,2019, approximately 11%10% of the option ARM PCI loans were delinquent and approximately 68%70% of the portfolio had been modified into fixed-rate, fully amortizing loans. The borrowers for substantially all of the remaining option ARM loans are making amortizing payments, although such payments are not necessarily fully amortizing. This latter group of loans is subject to the risk of payment shock due to future payment recast. Default rates generally increase on option ARM loans when payment recast results in a payment increase. The expected increase in default rates is considered in the Firm’s quarterly impairment assessment.

The following table provides a summary of lifetime principal loss estimates included in either the nonaccretable difference or the allowance for loan losses.
Summary of PCI loans lifetime principal loss estimates
Lifetime loss
 estimates(a)
 
Life-to-date
liquidation losses(b)
Lifetime loss
 estimates(a)
 
Life-to-date
liquidation losses(b)
(in billions)Jun 30,
2018
 Dec 31,
2017
 Jun 30,
2018
 Dec 31,
2017
Jun 30,
2019
 Dec 31,
2018
 Jun 30,
2019
 Dec 31,
2018
Home equity$14.1
 $14.2
 $13.0
 $12.9
$13.9
 $14.1
 $13.0
 $13.0
Prime mortgage4.1
 4.0
 3.8
 3.8
4.1
 4.1
 3.9
 3.9
Subprime mortgage3.3
 3.3
 3.1
 3.1
3.3
 3.3
 3.2
 3.2
Option ARMs10.3
 10.0
 9.9
 9.7
10.2
 10.3
 9.9
 9.9
Total$31.8
 $31.5
 $29.8
 $29.5
$31.5
 $31.8
 $30.0
 $30.0
(a)Includes the original nonaccretable difference established in purchase accounting of $30.5 billion for principal losses plus additional principal losses recognized subsequent to acquisition through the provision and allowance for loan losses. The remaining nonaccretable difference for principal losses was $624$487 million and $842$512 million at June 30, 2018,2019, and December 31, 2017,2018, respectively.
(b)Represents both realization of loss upon loan resolution and any principal forgiven upon modification.
Geographic composition of residential real estate loans
For information on the geographic composition of the Firm’s residential real estate loans, refer to Note 11.
Current estimated loan-to-value ratio of residential real estate loans
Average current estimated loan-to-value (“LTV”) ratios
have declined consistent with recent improvements in home prices, customer pay downs,paydowns, and charge-offs or
liquidations of higher LTV loans. For further information on current estimated LTVs onof the Firm’s residential real estate loans, refer to Note 11.
Loan modification activities for residential real estate loans
The performance of modified loans generally differs by product type due to differences in both the credit quality and the types of modifications provided. The performance ofPerformance metrics for modifications to the residential real estate portfolios as measured through cumulative redefault rates, were not materially different from December 31, 2017.2018. For further information on the Firm’s cumulative redefault rates, refer to Consumer Credit Portfolio on pages 102-107106–111 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Certain loans that were modified under HAMP and the Firm’s proprietary modification programsloans have interest rate reset provisions (“step-rate modifications”). Interest where the interest rates on these loans generally began to increase commencing in 2014 by 1% per year, and will continue to do so, until the rate reaches a specified cap. The cap on these loans is typically at a prevailing market interest rate for a fixed-rate mortgage loan as of the modification date. At June 30, 2018,2019, the carrying value of non-PCI loans and the unpaid principal balance of PCI loans modified in step-rate modifications, which have not yet met their specified caps, were $2$1.4 billion and $5$2.6 billion, respectively. The Firm continues to monitor this risk exposure and the impact of these potential interest rate increases is considered in the Firm’s allowance for loan losses.

The following table presents information as of June 30, 2018,2019, and December 31, 2017,2018, relating to modified retained residential real estate loans for which concessions have been granted to borrowers experiencing financial difficulty. For further information on modifications for the three and six months ended June 30, 20182019 and 2017,2018, refer to Note 11.
Modified residential real estate loans
June 30, 2018 December 31, 2017June 30, 2019 December 31, 2018
(in millions)Retained loans
Non-accrual
retained loans(d)
 Retained loans
Non-accrual
retained loans(d)
Retained loans
Non-accrual
retained loans(d)
 Retained loans
Non-accrual
retained loans(d)
Modified residential real estate loans, excluding
PCI loans(a)(b)
      
Residential mortgage$5,024
$1,730
 $5,620
$1,743
$4,381
$1,436
 $4,565
$1,459
Home equity2,092
1,041
 2,118
1,032
1,954
946
 2,012
955
Total modified residential real estate loans, excluding PCI loans$7,116
$2,771
 $7,738
$2,775
$6,335
$2,382
 $6,577
$2,414
Modified PCI loans(c)
      
Home equity$2,180
NA
 $2,277
NA
$2,012
NA
 $2,086
NA
Prime mortgage3,684
NA
 4,490
NA
3,024
NA
 3,179
NA
Subprime mortgage2,322
NA
 2,678
NA
1,971
NA
 2,041
NA
Option ARMs7,196
NA
 8,276
NA
6,080
NA
 6,410
NA
Total modified PCI loans$15,382
NA
 $17,721
NA
$13,087
NA
 $13,716
NA
(a)Amounts represent the carrying value of modified residential real estate loans.
(b)At June 30, 2018,2019, and December 31, 2017, $4.32018, $2.6 billion and $3.8$4.1 billion, respectively, of loans modified subsequent to repurchase from Ginnie Mae in accordance with the standards of the appropriate government agency (i.e., Federal Housing Administration (“FHA”), U.S. Department of Veterans Affairs (“VA”), Rural Housing Service of the U.S. Department of Agriculture (“RHS”)) are not included in the table above. When such loans perform subsequent to modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform become subject to foreclosure. For additional information about sales of loans in securitization transactions with Ginnie Mae, refer to Note 13.
(c)Amounts represent the unpaid principal balance of modified PCI loans.
(d)At both June 30, 2018,2019, and December 31, 2017,2018, nonaccrual loans included $2.2$2.0 billion of troubled debt restructurings (“TDRs”) for which the borrowers were less than 90 days past due. For additional information about loans modified in a TDR that are on nonaccrual status, refer to Note 11.

Nonperforming assets
The following table presents information as of June 30, 2018,2019, and December 31, 2017,2018, about consumer, excluding credit card, nonperforming assets.
Nonperforming assets(a)
      
(in millions)June 30,
2018
 December 31,
2017
June 30,
2019
 December 31,
2018
Nonaccrual loans(b)
      
Residential real estate$3,582
 $3,785
$2,931
 $3,088
Other consumer397
 424
331
 373
Total nonaccrual loans3,979
 4,209
3,262
 3,461
Assets acquired in loan satisfactions      
Real estate owned206
 225
247
 210
Other33
 40
26
 30
Total assets acquired in loan satisfactions239
 265
273
 240
Total nonperforming assets$4,218
 $4,474
$3,535
 $3,701
(a)At June 30, 2018,2019, and December 31, 2017,2018, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $3.3$1.8 billion and $4.3$2.6 billion, respectively, and REO insured by U.S. government agencies of $84$56 million and $95$75 million, respectively. These amounts have been excluded based upon the government guarantee.
(b)Excludes PCI loans, which are accounted for on a pool basis. Since each pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows, the past-due status of the pools, or that of individual loans within the pools, is not meaningful. The Firm is recognizing interest income on each pool of loans as each of the pools is performing.
Nonaccrual loans in the residential real estate portfolio at June 30, 20182019 decreased to $3.6$2.9 billion from $3.8$3.1 billion at December 31, 2017,2018, of which 26%23% and 24% were greater than 150 days past due, for both time periods.respectively. In the aggregate, the unpaid principal balance of residential real estate loans greater than 150 days past due was charged down by approximately 34%31% and 40%32% to the estimated net realizable value of the collateral at June 30, 2018,2019, and December 31, 2017,2018, respectively.
Nonaccrual loans: The following table presents changes in consumer, excluding credit card, nonaccrual loans for the six months ended June 30, 20182019 and 2017.2018.
Nonaccrual loan activity    
Six months ended June 30, (in millions) 2018
2017
 2019
2018
Beginning balance $4,209
$4,820
 $3,461
$4,209
Additions 1,575
1,647
 1,082
1,575
Reductions:    
Principal payments and other(a)
 738
888
 508
738
Charge-offs 246
372
 209
246
Returned to performing status 666
750
 435
666
Foreclosures and other liquidations 155
231
 129
155
Total reductions 1,805
2,241
 1,281
1,805
Net changes (230)(594) (199)(230)
Ending balance $3,979
$4,226
 $3,262
$3,979
(a)Other reductions includes loan sales.
Active and suspended foreclosure: For information on loans that were in the process of active or suspended foreclosure, refer to Note 11.


Credit card
Total credit card loans decreasedwere relatively flat from December 31, 2017 due to2018 reflecting increased sales volumes from existing customers and new account growth, offset by the impact of seasonality. The June 30, 20182019 30+ day delinquency rate seasonally decreased to 1.65%1.71% from 1.80%1.83% at December 31, 2017,2018, and the June 30, 20182019 90+ day delinquency rate decreased to 0.85%0.87% from 0.92% at December 31, 2017,2018, in line with expectations. Net charge-offs increased for the three and six months endedJune 30, 20182019 when compared with the same period in the prior year primarily due to growth in newer vintages which, as anticipated, have higher loss rates than the more seasoned portion of the portfolio. For further information on the geographic and FICO composition of the Firm’s credit card loans, refer to Note 11.loan growth.
Consistent with the Firm’s policy, all credit card loans typically remain on accrual status until charged off. However, the Firm establishes an allowance, which is offset against loans and charged toreduces interest income, for the estimated uncollectible portion of accrued and billed interest and fee income.
Geographic and FICO composition of credit card loans
For information on the geographic and FICO composition of the Firm’s credit card loans, refer to Note 11.
Modifications of credit card loans
At June 30, 20182019 and December 31, 2017,2018, the Firm had $1.3$1.4 billion and $1.2$1.3 billion, respectively, of credit card loans outstanding that have been modified in TDRs. These balances included both credit card loans with modified payment terms and credit card loans that reverted back to their pre-modification payment terms because the cardholder did not comply with the modified payment terms.
For additional information about loan modification programs to borrowers, refer to Note 11.


WHOLESALE CREDIT PORTFOLIO
In its wholesale businesses, the Firm is exposed to credit risk primarily through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through various operating services (such as cash management and clearing activities), securities financing activities and cash placed with banks. A portion of the loans originated or acquired by the Firm’s wholesale businesses is generally retained on the balance sheet. The Firm distributes a significant percentage of the loans that it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk.
The credit qualityperformance of the wholesale portfolio was stableremained favorable for the six months ended June 30, 2018,2019, characterized by continued low levels of criticized exposure, nonaccrual loans and charge-offs. Refer to the industry discussion on pages 62–64 for further information. Retained loans increased across all wholesale lines of business, predominantlyLoans held-for-sale decreased, driven by CIB, including loans to financial institution and commercial and industrial clients, anda loan syndication in AWM due to higher loans to international and domestic Private Banking clients.CIB. The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure inclusive of collateral where applicable, and of industry, product and client concentrations.
 
In the following tables, the Firm’s wholesale credit portfolio includes exposure held in CIB, CB, AWM and Corporate, and excludes all exposure managed by CCB.
Wholesale credit portfolio
Credit exposure 
Nonperforming(c)
Credit exposure 
Nonperforming(c)
(in millions)Jun 30,
2018
Dec 31,
2017
 Jun 30,
2018
Dec 31,
2017
Jun 30,
2019
Dec 31,
2018
 Jun 30,
2019
Dec 31,
2018
Loans retained$420,632
$402,898
 $1,156
$1,734
$438,468
$439,162
 $1,238
$1,150
Loans held-for-sale4,754
3,099
 175
—
3,814
11,877
 190
—
Loans at fair value3,076
2,508
 —
—
4,309
3,151
 180
220
Loans428,462
408,505
 1,331
1,734
Loans – reported446,591
454,190
 1,608
1,370
Derivative receivables58,510
56,523
 112
130
52,878
54,213
 39
60
Receivables from customers and other(a)
27,454
26,139
 —
—
27,393
30,063
 —
—
Total wholesale credit-related assets514,426
491,167
 1,443
1,864
526,862
538,466
 1,647
1,430
Lending-related commitments401,757
370,098
 712
731
394,301
387,813
 465
469
Total wholesale credit exposure$916,183
$861,265
 $2,155
$2,595
$921,163
$926,279
 $2,112
$1,899
Credit derivatives used in credit portfolio management activities(b)
$(15,229)$(17,609) $—
$—
$(15,292)$(12,682) $—
$—
Liquid securities and other cash collateral held against derivatives(16,103)(16,108) NA
NA
(14,676)(15,322) NA
NA
(a)Receivables from customers and other include $27.4$27.3 billion and $26.0$30.1 billion of prime brokerage-related held-for-investment margin loanscustomer receivables at June 30, 2018,2019, and December 31, 2017,2018, respectively, to prime brokerage customers in CIB and in AWM; these are classified in accrued interest and accounts receivable on the Consolidated balance sheets.
(b)Represents the net notional amount of protection purchased and sold through credit derivatives used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. For additional information, refer to Credit derivatives on page 66, and Note 4.
(c)Excludes assets acquired in loan satisfactions.


The following tables present the maturity and ratings profiles of the wholesale credit portfolio as of June 30, 2018,2019, and December 31, 2017.2018. The ratings scale is based on the Firm’s internal risk ratings, which generally correspond to the ratings assigned by S&P and Moody’s. For additional information on wholesale loan portfolio risk ratings, refer to Note 12 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Wholesale credit exposure – maturity and ratings profileWholesale credit exposure – maturity and ratings profile     Wholesale credit exposure – maturity and ratings profile     
Maturity profile(d)
 Ratings profile
Maturity profile(d)
 Ratings profile
Due in 1 year or lessDue after 1 year through 5 yearsDue after 5 yearsTotal Investment-grade Noninvestment-gradeTotalTotal % of IGDue in 1 year or lessDue after 1 year through 5 yearsDue after 5 yearsTotal Investment-grade Noninvestment-gradeTotalTotal % of IG
June 30, 2018
(in millions, except ratios)
 AAA/Aaa to BBB-/Baa3 BB+/Ba1 & below
June 30, 2019
(in millions, except ratios)		Due in 1 year or lessDue after 1 year through 5 yearsDue after 5 yearsTotal AAA/Aaa to BBB-/Baa3 BB+/Ba1 & belowTotalTotal % of IG
Loans retained$135,312
$182,613
$102,707
$420,632
 $322,105
 $98,527
$420,632
77% $337,188
 $101,280
Derivative receivables 58,510
    58,510
  52,878
    52,878
 
Less: Liquid securities and other cash collateral held against derivatives (16,103)    (16,103)  (14,676)    (14,676) 
Total derivative receivables, net of all collateral13,066
10,092
19,249
42,407
 33,780
 8,627
42,407
80
8,089
8,444
21,669
38,202
 30,956
 7,246
38,202
81
Lending-related commitments103,600
287,054
11,103
401,757
 289,653
 112,104
401,757
72
79,456
304,412
10,433
394,301
 286,247
 108,054
394,301
73
Subtotal251,978
479,759
133,059
864,796
 645,538
 219,258
864,796
75
219,087
516,368
135,516
870,971
 654,391
 216,580
870,971
75
Loans held-for-sale and loans at fair value(a)
 7,830
    7,830
  8,123
    8,123
 
Receivables from customers and other 27,454
    27,454
  27,393
    27,393
 
Total exposure – net of liquid securities and other cash collateral held against derivatives $900,080
    $900,080
  $906,487
    $906,487
 
Credit derivatives used in credit portfolio management activities(b)(c)
$(1,281)$(11,177)$(2,771)$(15,229) $(13,093) $(2,136)$(15,229)86%$(1,741)$(10,747)$(2,804)$(15,292) $(14,271) $(1,021)$(15,292)93%
Maturity profile(d)
 Ratings profile
Maturity profile(d)
 Ratings profile
Due in 1 year or lessDue after 1 year through 5 yearsDue after 5 yearsTotal Investment-grade Noninvestment-gradeTotalTotal % of IGDue in 1 year or lessDue after 1 year through 5 yearsDue after 5 yearsTotal Investment-grade Noninvestment-gradeTotalTotal % of IG
December 31, 2017
(in millions, except ratios)		 AAA/Aaa to BBB-/Baa3 BB+/Ba1 & below
December 31, 2018
(in millions, except ratios)		Due in 1 year or lessDue after 1 year through 5 yearsDue after 5 yearsTotal AAA/Aaa to BBB-/Baa3 BB+/Ba1 & belowTotalTotal % of IG
Loans retained$121,643
$177,033
$104,222
$402,898
 $311,681
 $91,217
$402,898
77% $339,729
 $99,433
Derivative receivables 56,523
    56,523
  54,213
    54,213
 
Less: Liquid securities and other cash collateral held against derivatives (16,108)    (16,108)  (15,322)    (15,322) 
Total derivative receivables, net of all collateral9,882
10,463
20,070
40,415
 32,373
 8,042
40,415
80
11,038
9,169
18,684
38,891
 31,794
 7,097
38,891
82
Lending-related commitments80,273
275,317
14,508
370,098
 274,127
 95,971
370,098
74
79,400
294,855
13,558
387,813
 288,724
 99,089
387,813
74
Subtotal211,798
462,813
138,800
813,411
 618,181
 195,230
813,411
76
228,896
500,998
135,972
865,866
 660,247
 205,619
865,866
76
Loans held-for-sale and loans at fair value(a)
 5,607
    5,607
  15,028
    15,028
 
Receivables from customers and other 26,139
    26,139
  30,063
    30,063
 
Total exposure – net of liquid securities and other cash collateral held against derivatives $845,157
    $845,157
  $910,957
    $910,957
 
Credit derivatives used in credit portfolio management activities(b)(c)
$(1,807)$(11,011)$(4,791)$(17,609) $(14,984) $(2,625)$(17,609)85%$(447)$(9,318)$(2,917)$(12,682) $(11,213) $(1,469)$(12,682)88%
(a)Represents loans held-for-sale, primarily related to syndicated loans and loans transferred from the retained portfolio, and loans at fair value.
(b)These derivatives do not qualify for hedge accounting under U.S. GAAP.
(c)The notional amounts are presented on a net basis by underlying reference entity and the ratings profile shown is based on the ratings of the reference entity on which protection has been purchased. Predominantly all of the credit derivatives entered into by the Firm where it has purchased protection used in credit portfolio management activities are executed with investment-grade counterparties.
(d)The maturity profile of retained loans, lending-related commitments and derivative receivables is based on the remaining contractual maturity. Derivative contracts that are in a receivable position at June 30, 2018,2019, may become payable prior to maturity based on their cash flow profile or changes in market conditions.



Wholesale credit exposure – industry exposures
The Firm focuses on the management and diversification of its industry exposures, and pays particular attention to industries with actual or potential credit concerns. Exposures deemed criticized align with the U.S. banking regulators’ definition of criticized exposures, which consist
of the special mention, substandard and doubtful
categories. The total criticized component of the portfolio, excluding loans held-for-sale and loans at fair value, was $11.2approximately $12 billion at both June 30, 2018, compared with $15.6 billion at2019, and December 31, 2017. The decrease was largely driven by select names within Oil & Gas, including a loan sale.2018.
Below are summaries of the Firm’s exposures as of June 30, 2018,2019, and December 31, 2017.2018. The industry of risk category is generally based on the client or counterparty’s primary business activity. For additional information on industry concentrations, refer to Note 4 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.

Wholesale credit exposure – industries(a)
Wholesale credit exposure – industries(a)
    
Wholesale credit exposure – industries(a)
    
    Selected metrics     Selected metrics
     30 days or more past due and accruing
loans
Net
charge-offs/
(recoveries)
Credit derivative hedges(f)
Liquid securities
and other cash collateral held against derivative
receivables		     30 days or more past due and accruing
loans
Net
charge-offs/
(recoveries)
Credit derivative hedges(g)
Liquid securities
and other cash collateral held against derivative
receivables
  Noninvestment-grade  Noninvestment-grade
As of or for the six months ended
Credit exposure(e)
Investment- grade Noncriticized Criticized performingCriticized nonperforming
Credit exposure(f)
Investment- grade Noncriticized Criticized performingCriticized nonperforming
June 30, 2018
June 30, 2019
(in millions)
Credit exposure(e)
Investment- grade Noncriticized Criticized performingCriticized nonperforming30 days or more past due and accruing
loans
Net
charge-offs/
(recoveries)
Credit derivative hedges(f)
Liquid securities
and other cash collateral held against derivative
receivables
Credit exposure(f)
Investment- grade Noncriticized Criticized performingCriticized nonperforming30 days or more past due and accruing
loans
Net
charge-offs/
(recoveries)
Credit derivative hedges(g)
Liquid securities
and other cash collateral held against derivative
receivables
Real Estate
Individuals and Individual Entities(b)
Consumer & Retail86,867
55,172
 29,870
 1,671
154
97,121
54,267
 40,876
 1,874
104
Technology, Media &
Telecommunications		79,053
48,286
 29,222
 1,495
50
65,859
38,262
 25,062
 2,415
120
Industrials59,990
38,609
 19,982
 1,211
188
125
—
(146)(17)58,230
38,179
 18,654
 1,213
184
148
—
(507)(45)
Banks & Finance Cos50,598
35,203
 15,012
 378
5
26
—
(636)(2,175)
Healthcare57,089
39,589
 16,627
 844
29
6
(2)—
(180)46,669
34,880
 11,097
 605
87
74
12
(190)(156)
Banks & Finance Cos51,445
35,882
 15,242
 317
4
13
—
(649)(2,426)
Oil & Gas42,650
23,064
 17,452
 1,287
847
2
38
(492)(2)46,209
27,476
 17,149
 869
715
7
17
(499)(11)
Asset Managers40,040
33,963
 6,059
 4
14
5
—
—
(6,610)45,514
39,966
 5,523
 4
21
5
—
—
(4,985)
Utilities28,437
23,790
 4,353
 136
158
1
38
(189)(36)29,101
23,355
 5,486
 159
101
—
37
(361)(70)
State & Municipal Govt (b)
26,408
25,760
 648
 —
—
3
—
(60)(18)
State & Municipal Govt(c)
27,286
26,754
 529
 3
—
3
—
—
(24)
Metals & Mining17,706
8,480
 8,918
 282
26
5
(1)(207)(3)
Central Govt16,947
16,534
 413
 —
—
1
—
(8,993)(2,486)
Automotive16,856
10,820
 5,672
 364
—
8
—
(157)—
Chemicals & Plastics18,666
11,432
 7,205
 29
—
5
—
(25)—
16,386
11,329
 5,021
 36
—
28
—
(10)—
Central Govt18,503
18,307
 123
 73
—
3
—
(9,320)(1,965)
Transportation16,915
10,445
 5,938
 461
71
11
6
(32)(69)14,870
9,644
 4,827
 329
70
172
—
(37)(37)
Automotive15,849
9,586
 5,943
 295
25
2
—
(227)—
Metals & Mining14,225
7,457
 6,314
 398
56
17
—
(278)(25)
Insurance12,952
10,266
 2,645
 —
41
2
—
(37)(2,404)12,913
10,079
 2,800
 20
14
1
—
(36)(2,453)
Financial Markets Infrastructure6,231
6,109
 122
 —
—
—
—
—
—
6,009
5,917
 92
 —
—
—
—
—
(36)
Securities Firms3,998
2,567
 1,430
 1
—
—
—
(261)(454)4,662
2,965
 1,672
 25
—
—
—
(49)(662)
All other(c)
159,465
142,598
 16,424
 238
205
790
53
(2,344)(1,874)
All other(d)
70,375
67,444
 2,643
 288
—
2
(9)(2,589)(907)
Subtotal$880,899
$659,146
 $210,595
 $9,178
$1,980
$1,728
$165
$(15,229)$(16,103)$885,647
$667,474
 $206,124
 $10,307
$1,742
$1,508
$128
$(15,292)$(14,676)
Loans held-for-sale and loans at fair value7,830
      8,123
      
Receivables from customers and other27,454
     27,393
     
Total(d)
$916,183
     
Total(e)
$921,163
     













(continued from previous page)(continued from previous page)     (continued from previous page)     







Selected metrics





Selected metrics







30 days or more past due and accruing
loans		Net
charge-offs/
(recoveries)
Credit derivative hedges(f)
Liquid securities
and other cash collateral held against derivative
receivables





30 days or more past due and accruing
loans		Net
charge-offs/
(recoveries)
Credit derivative hedges(g)
Liquid securities
and other cash collateral held against derivative
receivables



Noninvestment-grade

Noninvestment-grade
As of or for the year ended
Credit exposure(e)
Investment- grade
Noncriticized
Criticized performingCriticized nonperforming
Credit exposure(f)
Investment- grade
Noncriticized
Criticized performingCriticized nonperforming
December 31, 2017
December 31, 2018
(in millions)
Credit exposure(e)
Investment- grade
Noncriticized
Criticized performingCriticized nonperforming30 days or more past due and accruing
loans		Net
charge-offs/
(recoveries)
Credit derivative hedges(f)
Liquid securities
and other cash collateral held against derivative
receivables
Credit exposure(f)
Investment- grade
Noncriticized
Criticized performingCriticized nonperforming30 days or more past due and accruing
loans		Net
charge-offs/
(recoveries)
Credit derivative hedges(g)
Liquid securities
and other cash collateral held against derivative
receivables
Real Estate
Individuals and Individual Entities(b)
Consumer & Retail87,679
55,737

29,619

1,791
532
94,815
60,678

31,901

2,033
203
Technology, Media & Telecommunications59,274
36,510
 20,453
 2,258
53
72,646
46,334
 24,081
 2,170
61
Industrials55,272
37,198

16,770

1,159
145
150
(1)(196)(21)58,528
38,487

18,594

1,311
136
171
20
(207)(29)
Banks & Finance Cos49,920
34,120
 15,496
 299
5
11
—
(575)(2,290)
Healthcare55,997
42,643
 12,731
 585
38
82
(1)—
(207)48,142
36,687

10,625

761
69
23
(5)(150)(133)
Banks & Finance Cos49,037
34,654

13,767

612
4
1
6
(1,216)(3,174)
Oil & Gas41,317
21,430

14,854

4,046
987
22
71
(747)(1)42,600
23,356

17,451

1,158
635
6
36
(248)—
Asset Managers32,531
28,029

4,484

4
14
27
—
—
(5,290)42,807
36,722

6,067

4
14
10
—
—
(5,829)
Utilities29,317
24,486

4,383

227
221
—
11
(160)(56)28,172
23,558

4,326

138
150
—
38
(142)(60)
State & Municipal Govt(b)
28,633
27,977

656

—
—
12
5
(130)(524)
State & Municipal Govt(c)
27,351
26,746

603

2
—
18
(1)—
(42)
Metals & Mining15,359
8,188

6,767

385
19
1
—
(174)(22)
Central Govt18,456
18,251
 124
 81
—
4
—
(7,994)(2,130)
Automotive17,339
9,637

7,310

392
—
1
—
(125)—
Chemicals & Plastics15,945
11,107

4,764

74
—
4
—
—
—
16,035
11,490

4,427

118
—
4
—
—
—
Central Govt19,182
18,741
 376
 65
—
4
—
(10,095)(2,520)
Transportation15,797
9,870

5,302

527
98
9
14
(32)(131)15,660
10,508

4,699

393
60
21
6
(31)(112)
Automotive14,820
9,321

5,278

221
—
10
1
(284)—
Metals & Mining14,171
6,989

6,822

321
39
3
(13)(316)(1)
Insurance14,089
11,028

2,981

—
80
1
—
(157)(2,195)12,639
9,777

2,830

—
32
—
—
(36)(2,080)
Financial Markets Infrastructure5,036
4,775

261

—
—
—
—
—
(23)7,484
6,746

738

—
—
—
—
—
(26)
Securities Firms4,113
2,559

1,553

1
—
—
—
(274)(335)4,558
3,099

1,459

—
—
—
—
(158)(823)
All other(c)
147,900
134,110

13,283

260
247
901
8
(2,817)(1,600)
All other(d)
68,284
64,664

3,606

12
2
2
2
(1,581)(804)
Subtotal$829,519
$632,565

$181,349

$13,010
$2,595
$1,524
$119
$(17,609)$(16,108)$881,188
$673,617

$195,442

$10,450
$1,679
$1,096
$155
$(12,682)$(15,322)
Loans held-for-sale and loans at fair value5,607

















15,028

















Receivables from customers and other26,139


















30,063


















Total(d)
$861,265
     
Total(e)
$926,279
     
(a)The industry rankings presented in the table as of December 31, 2017,2018, are based on the industry rankings of the corresponding exposures at June 30, 2018,2019, not actual rankings of such exposures at December 31, 2017.2018.
(b)
Individuals and Individual Entities predominantly consists of Wealth Management clients within AWM and includes exposure to personal investment companies and personal and testamentary trusts.
(c)In addition to the credit risk exposure to states and municipal governments (both U.S. and non-U.S.) at June 30, 2018,2019, and December 31, 2017,2018, noted above, the Firm held: $9.2$7.3 billion and $9.8$7.8 billion, respectively, of trading securities; $39.3$31.9 billion and $32.3$37.7 billion, respectively, of AFS securities; and $4.8 billion and $14.4 billion, respectively,at both periods of held-to-maturity (“HTM”) securities, issued by U.S. state and municipal governments. For further information, refer to Note 2 and Note 9.
(c)(d)All other includes: individuals (predominantly Wealth Management clients within AWM), SPEs and privatePrivate education and civic organizations, representing approximately 60%, 36%,91% and 4%9%, respectively, at June 30, 2018,2019, and 59%, 37%,92% and 4%8%, respectively, at December 31, 2017.2018.
(d)(e)
Excludes cash placed with banks of $396.1 billion$259.7 billion and $421.0$268.1 billion, at June 30, 2018,2019, and December 31, 2017,2018, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks.
(e)(f)Credit exposure is net of risk participations and excludes the benefit of credit derivatives used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables.
(f)(g)Represents the net notional amounts of protection purchased and sold through credit derivatives used to manage the credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. The All other category includes purchased credit protection on certain credit indices.



Real Estate
Presented below is additional information on the Real Estate industry, to which the Firm has significant exposure.
Real Estate exposure, increased $2.7 billion to $142.1 billion duringand the six months ended June 30, 2018, while the investment-gradeinvestment grade percentage of the portfolio remained relatively flat for the six months ended June 30, 2019 at 82%.$144.7 billion and 83% respectively. For further information on Real Estate loans, refer to Note 11.
June 30, 2018 June 30, 2019 
(in millions, except ratios)Loans and Lending-related Commitments Derivative Receivables Credit exposure % Investment-grade
% Drawn(c)
Loans and Lending-related Commitments Derivative Receivables Credit exposure % Investment-grade
% Drawn(c)
Multifamily(a)
$88,565
 $28
 $88,593
 86% 88% $85,195
 $66
 $85,261
 89% 92% 
Other53,417
 106
 53,523
 74
 66
 58,940
 498
 59,438
 73
 62
 
Total Real Estate Exposure(b)
141,982
 134
 142,116
 82
 80
 144,135
 564
 144,699
 83
 80
 
                    
December 31, 2017 December 31, 2018 
(in millions, except ratios)Loans and Lending-related Commitments 
Derivative
Receivables
 Credit exposure 
% Investment-
grade
% Drawn(c)
Loans and Lending-related Commitments 
Derivative
Receivables
 Credit exposure 
% Investment-
grade
% Drawn(c)
Multifamily(a)
$84,635
 $34
 $84,669
 89% 92% $85,683
 $33
 $85,716
 89% 92% 
Other54,620
 120
 54,740
 74
 66
 57,469
 131
 57,600
 72
 63
 
Total Real Estate Exposure(b)
139,255
 154
 139,409
 83
 82
 143,152
 164
 143,316
 82
 81
 
(a)Multifamily exposure is largely in California.
(b)Real Estate exposure is predominantly secured; unsecured exposure is largelypredominantly investment-grade.
(c)Represents drawn exposure as a percentage of credit exposure.
Loans
In the normal course of its wholesale business, the Firm provides loans to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals. For a further discussion on loans, including information on credit quality indicators and sales of loans, refer to Note 11.
The following table presents the change in the nonaccrual loan portfolio for the six months ended June 30, 20182019 and 2017.2018.
Wholesale nonaccrual loan activity
Six months ended June 30,
(in millions)		 2018
2017
 2019
2018
Beginning balance $1,734
$2,063
 $1,370
$1,734
Additions 505
747
 1,201
505
Reductions:    
Paydowns and other 394
666
 738
394
Gross charge-offs 231
93
 143
231
Returned to performing status 176
183
 25
176
Sales 107
203
 57
107
Total reductions 908
1,145
 963
908
Net changes (403)(398) 238
(403)
Ending balance $1,331
$1,665
 $1,608
$1,331
 
The following table presents net charge-offs/recoveries, which are defined as gross charge-offs less recoveries, for the three and six months ended June 30, 20182019 and 2017.2018. The amounts in the table below do not include gains or losses from sales of nonaccrual loans.
Wholesale net charge-offs/(recoveries)Wholesale net charge-offs/(recoveries)  Wholesale net charge-offs/(recoveries)  
(in millions, except ratios)Three months ended
June 30,		 Six months ended
June 30,		Three months ended
June 30,		 Six months ended
June 30,
2018
2017
 2018
2017
2019
2018
 2019
2018
Loans – reported      
Average loans retained$414,980
$392,257
 $409,949
$387,339
$434,905
$414,980
 $434,783
$409,949
Gross charge-offs176
73
 241
99
98
176
 150
241
Gross recoveries(30)(16) (76)(69)(14)(30) (22)(76)
Net charge-offs/(recoveries)146
57
 165
30
84
146
 128
165
Net charge-off/(recovery) rate0.14%0.06% 0.08%0.02%0.08%0.14% 0.06%0.08%


Lending-related commitments
The Firm uses lending-related financial instruments, such as commitments (including revolving credit facilities) and guarantees, to address the financing needs of its clients. The contractual amounts of these financial instruments represent the maximum possible credit risk should the clients draw down on these commitments or the Firm fulfillsfulfill its obligations under these guarantees, and the clients subsequently fail to perform according to the terms of these contracts. Most of these commitments and guarantees are refinanced, extended, cancelled, or expire without being drawn upon or a default occurring. In the Firm’s view, the total contractual amount of these wholesale lending-related commitments is not representative of the Firm’s expected future credit exposure or funding requirements. For further information on wholesale lending-related commitments, refer to Note 2022 .
Derivative contracts
Derivatives enable clients and counterparties to manage exposures torisks including credit risk and risks arising from fluctuations in interest rates, currenciesforeign exchange, equities, and other markets. Incommodities. The Firm makes markets in derivatives in order to meet these needs and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the normal course of business, the Firm usescounterparty credit risk arising from derivative instruments predominantly for market-making activities.receivables. The Firm also uses derivative instruments to manage its own credit and other market risk exposure. For a further discussion of derivative contracts, refer to Note 4.
The following table summarizes the net derivative receivables for the periods presented.
Derivative receivables  
(in millions)Derivative receivables
June 30,
2018
December 31,
2017
Interest rate$22,971
$24,673
Credit derivatives624
869
Foreign exchange16,763
16,151
Equity10,176
7,882
Commodity7,976
6,948
Total, net of cash collateral58,510
56,523
Liquid securities and other cash collateral held against derivative receivables(a)
(16,103)(16,108)
Total, net of collateral$42,407
$40,415
Derivative receivables  
(in millions)June 30,
2019
December 31,
2018
Total, net of cash collateral52,878
54,213
Liquid securities and other cash collateral held against derivative receivables(a)
(14,676)(15,322)
Total, net of collateral$38,202
$38,891
(a)Includes collateral related to derivative instruments where an appropriate legal opinion hasopinions have not been either sought or obtained.obtained with respect to master netting agreements.
 
The fair value of derivative receivables reported on the Consolidated balance sheets were $58.5$52.9 billion and $56.5$54.2 billion at June 30, 2018,2019, and December 31, 2017,2018, respectively. 
Derivative receivables represent the fair value of the derivative contracts after giving effect to legally enforceable master netting agreements and cash collateral held by the Firm. However, in management’s view, the appropriate measure of current credit risk should also take into consideration additional liquid securities (primarily U.S. government and agency securities and other group of seven nations (“G7”) government securities) and other cash collateral held by the Firm aggregating $16.1$14.7 billion and $15.3 billion at June 30, 2018,2019, and December 31, 2017,2018, respectively, that may be used as security when the fair value of the client’s exposure is in the Firm’s favor.
In addition to the collateral described in the preceding paragraph, the Firm also holds additional collateral (primarily cash, G7 government securities, other liquid government-agency and guaranteed securities, and corporate debt and equity securities) delivered by clients at the initiation of transactions, as well as collateral related to contracts that have a non-daily call frequency and collateral that the Firm has agreed to return but has not yet settled as of the reporting date. Although this collateral does not reduce the balances and is not included in the table above, it is available as security against potential exposure that could arise should the fair value of the client’s derivative transactionscontracts move in the Firm’s favor.
The derivative receivables fair value, net of all collateral, also does not include other credit enhancements, such as letters of credit. For additional information on the Firm’s use of collateral agreements, refer to Note 4.




































The following table summarizes the ratings profile of the Firm’s derivative receivables, including credit derivatives, net of all collateral, at the dates indicated. The ratings scale is based on the Firm’s internal ratings, which generally correspond to the ratings as assigned by S&P and Moody’s.
Ratings profile of derivative receivables          
June 30, 2018 December 31, 2017
Rating equivalent
(in millions, except ratios)
Exposure net of collateral% of exposure net of collateral Exposure net of collateral% of exposure net of collateral
Rating equivalent
June 30, 2019 December 31, 2018

(in millions, except ratios)
Exposure net of all collateral% of exposure net of all collateral Exposure net of all collateral% of exposure net of all collateral
AAA/Aaa to AA-/Aa3$11,133
26% $11,529
29%$10,435
27% $11,831
31%
A+/A1 to A-/A37,796
18
 6,919
17
5,154
13
 7,428
19
BBB+/Baa1 to BBB-/Baa314,851
35
 13,925
34
15,367
41
 12,536
32
BB+/Ba1 to B-/B37,997
19
 7,397
18
6,674
17
 6,373
16
CCC+/Caa1 and below630
2
 645
2
572
2
 723
2
Total$42,407
100% $40,415
100%$38,202
100% $38,891
100%


As previously noted, the Firm uses collateral agreements to mitigate counterparty credit risk. The percentage of the Firm’s over-the-counter derivatives transactionsderivative contracts subject to collateral agreements — excluding foreign exchange spot trades, which are not typically covered by collateral agreements due to their short maturity and centrally cleared trades that are settled daily — was approximately 90% at both June 30, 20182019, and December 31, 2017.2018.
Credit derivatives
The Firm uses credit derivatives for two primary purposes: first, in its capacity as a market-maker, and second, as an end-user, to manage the Firm’s own credit risk associated with various exposures.
 
Credit portfolio management activities
Included in the Firm’s end-user activities are credit derivatives used to mitigate the credit risk associated with traditional lending activities (loans and unfunded commitments) and derivatives counterparty exposure in the Firm’s wholesale businesses (collectively, “credit portfolio management” activities). Information on credit portfolio management activities is provided in the table below.
Credit derivatives used in credit portfolio management activities
Notional amount of protection
purchased and sold(a)
Notional amount of protection
purchased and sold(a)
(in millions)June 30,
2018
 December 31,
2017
June 30,
2019
 December 31,
2018
Credit derivatives used to manage:      
Loans and lending-related commitments$1,297
 $1,867
$1,819
 $1,272
Derivative receivables13,932
 15,742
13,473
 11,410
Credit derivatives used in credit portfolio management activities$15,229
 $17,609
$15,292
 $12,682
(a)Amounts are presented net, considering the Firm’s net protection purchased or sold with respect to each underlying reference entity or index.
For further information on credit derivatives and derivatives used in credit portfolio management activities, refer to Credit derivatives in Note 4 of this Form 10-Q, and Note 5 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.


ALLOWANCE FOR CREDIT LOSSES
The Firm’s allowance for credit losses covers the retained consumer and wholesale loan portfolios, as well as the Firm’s wholesale and certain consumer lending-related commitments.
For further information on the components of the allowance for credit losses and related management judgments, refer to Critical Accounting Estimates Used by the Firm on pages 77–7976–77 and Note 12 of this Form 10-Q, and Critical Accounting Estimates Used by the Firm on pages 138–140141-143 and Note 13 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
At least quarterly, the allowance for credit losses is reviewed by the CRO, the CFO and the Controller of the Firm. As of June 30, 2018,2019, JPMorgan Chase deemed the allowance for credit losses to be appropriate and sufficient to absorb probable credit losses inherent in the portfolio.
 
The wholesale allowance for credit losses decreased fromcompared with December 31, 2017, primarily as2018, largely driven by Consumer due to a result of a$400 million reduction in the allowance for loan losses in the Oil & GasPCI residential real estate portfolio, drivenreflecting continued improvement in home prices and delinquencies, partially offset by a single name.
The consumer$200 million addition to the allowance forin the credit losses was relatively flat compared with December 31, 2017.card portfolio, due to loan growth and higher loss rates, as anticipated.
For additional information on the wholesaleconsumer and consumerwholesale credit portfolios, refer to Consumer Credit Portfolio on pages 55–59, Wholesale Credit Portfolio on pages 60–66 and Consumer Credit Portfolio on pages 55–59 and Note 11.




Summary of changes in the allowance for credit lossesSummary of changes in the allowance for credit losses  Summary of changes in the allowance for credit losses  
2018 20172019 2018
Six months ended June 30,
Consumer, excluding
credit card
Credit cardWholesaleTotal 
Consumer, excluding
credit card
Credit cardWholesaleTotal
Consumer, excluding
credit card
Credit cardWholesaleTotal 
Consumer, excluding
credit card
Credit cardWholesaleTotal
(in millions, except ratios)  
Allowance for loan losses      
Beginning balance at January 1,$4,579
$4,884
$4,141
$13,604
 $5,198
$4,034
$4,544
$13,776
$4,146
$5,184
$4,115
$13,445
 $4,579
$4,884
$4,141
$13,604
Gross charge-offs539
2,578
241
3,358
 1,105
2,223
99
3,427
471
2,725
150
3,346
 539
2,578
241
3,358
Gross recoveries(451)(244)(76)(771) (307)(193)(69)(569)(277)(283)(22)(582) (451)(244)(76)(771)
Net charge-offs(a)
88
2,334
165
2,587
 798
2,030
30
2,858
194
2,442
128
2,764
 88
2,334
165
2,587
Write-offs of PCI loans(b)(a)
93
—
—
93
 46
—
—
46
89
—
—
89
 93
—
—
93
Provision for loan losses90
2,334
(98)2,326
 448
2,380
(337)2,491
(204)2,642
131
2,569
 90
2,334
(98)2,326
Other—
—
—
—
 (2)—
2
—
—
(1)6
5
 —
—
—
—
Ending balance at June 30,$4,488
$4,884
$3,878
$13,250
 $4,800
$4,384
$4,179
$13,363
$3,659
$5,383
$4,124
$13,166
 $4,488
$4,884
$3,878
$13,250
Impairment methodology      
Asset-specific(c)(b)
$226
$402
$318
$946
 $296
$370
$345
$1,011
$145
$472
$288
$905
 $226
$402
$318
$946
Formula-based2,130
4,482
3,560
10,172
 2,239
4,014
3,834
10,087
2,215
4,911
3,836
10,962
 2,130
4,482
3,560
10,172
PCI2,132
—
—
2,132
 2,265
—
—
2,265
1,299
—
—
1,299
 2,132
—
—
2,132
Total allowance for loan losses$4,488
$4,884
$3,878
$13,250
 $4,800
$4,384
$4,179
$13,363
$3,659
$5,383
$4,124
$13,166
 $4,488
$4,884
$3,878
$13,250
Allowance for lending-related commitments      
Beginning balance at January 1,$33
$—
$1,035
$1,068
 $26
$—
$1,052
$1,078
$33
$—
$1,022
$1,055
 $33
$—
$1,035
$1,068
Provision for lending-related commitments—
—
49
49
 6
—
33
39
—
—
75
75
 —
—
49
49
Other—
—
—
—
 —
—
—
—
—
—
(1)(1) —
—
—
—
Ending balance at June 30,$33
$—
$1,084
$1,117
 $32
$—
$1,085
$1,117
$33
$—
$1,096
$1,129
 $33
$—
$1,084
$1,117
Impairment methodology      
Asset-specific$—
$—
$139
$139
 $—
$—
$211
$211
$—
$—
$136
$136
 $—
$—
$139
$139
Formula-based33
—
945
978
 32
—
874
906
33
—
960
993
 33
—
945
978
Total allowance for lending-related commitments(d)(c)
$33
$—
$1,084
$1,117
 $32
$—
$1,085
$1,117
$33
$—
$1,096
$1,129
 $33
$—
$1,084
$1,117
Total allowance for credit losses$4,521
$4,884
$4,962
$14,367
 $4,832
$4,384
$5,264
$14,480
$3,692
$5,383
$5,220
$14,295
 $4,521
$4,884
$4,962
$14,367
Memo:      
Retained loans, end of period$374,587
$145,221
$420,632
$940,440
 $365,115
$140,035
$394,426
$899,576
$351,692
$157,568
$438,468
$947,728
 $374,587
$145,221
$420,632
$940,440
Retained loans, average373,562
142,757
409,949
926,268
 364,316
137,574
387,339
889,229
363,634
152,435
434,783
950,852
 373,562
142,757
409,949
926,268
PCI loans, end of period26,977
—
3
26,980
 33,064
—
3
33,067
22,242
—
—
22,242
 26,977
—
3
26,980
Credit ratios      
Allowance for loan losses to retained loans1.20%3.36%0.92%1.41% 1.31%3.13%1.06%1.49%1.04%3.42%0.94%1.39% 1.20%3.36%0.92%1.41%
Allowance for loan losses to retained nonaccrual loans(e)
113
NM
335
258
 114
NM
256
229
Allowance for loan losses to retained nonaccrual loans(d)
113
NM
333
295
 113
NM
335
258
Allowance for loan losses to retained nonaccrual loans excluding credit card113
NM
335
163
 114
NM
256
154
113
NM
333
174
 113
NM
335
163
Net charge-off rates(a)
0.05
3.30
0.08
0.56
 0.44
2.98
0.02
0.65
0.11
3.23
0.06
0.59
 0.05
3.30
0.08
0.56
Credit ratios, excluding residential real estate PCI loans      
Allowance for loan losses to retained loans0.68
3.36
0.92
1.22
 0.76
3.13
1.06
1.28
0.72
3.42
0.94
1.28
 0.68
3.36
0.92
1.22
Allowance for loan losses to retained nonaccrual loans(e)
59
NM
335
217
 60
NM
256
190
Allowance for loan losses to retained nonaccrual loans(d)
73
NM
333
266
 59
NM
335
217
Allowance for loan losses to retained nonaccrual loans excluding credit card59
NM
335
121
 60
NM
256
115
73
NM
333
145
 59
NM
335
121
Net charge-off rates(a)
0.05%3.30%0.08%0.58% 0.49%2.98%0.02%0.67%0.11%3.23%0.06%0.60% 0.05%3.30%0.08%0.58%
Note: In the table above, the financial measures which exclude the impact of PCI loans are non-GAAP financial measures.
(a)For the six months ended June 30, 2017, excluding net charge-offs of $467 million related to the student loan portfolio transfer, the net charge-off rate for Consumer, excluding credit card would have been 0.18%; total Firm would have been 0.54%; Consumer, excluding credit card and PCI loans would have been 0.20%; and total Firm, excluding PCI would have been 0.56%.
(b)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.
(c)(b)Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a TDR. The asset-specific credit card allowance for loan losses modified in a TDR is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
(d)(c)The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets.
(e)(d)The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.




Provision for credit losses
The following table presents the components of the Firm’s provision for credit losses:
 Three months ended June 30, Six months ended June 30,
 Provision for loan losses Provision for lending-related commitments 
Total provision for
credit losses
 Provision for loan losses Provision for lending-related commitments Total provision for credit losses
(in millions)2018
2017
 2018
2017
 2018
2017
 2018
2017
 2018
2017
 2018
2017
Consumer, excluding credit card$(56)$6
 $—
$6
 $(56)$12
 $90
$448
 $—
$6
 $90
$454
Credit card1,164
1,387
 —
—
 1,164
1,387
 2,334
2,380
 —
—
 2,334
2,380
Total consumer1,108
1,393
 —
6
 1,108
1,399
 2,424
2,828
 —
6
 2,424
2,834
Wholesale91
(218) 11
34
 102
(184) (98)(337) 49
33
 (49)(304)
Total$1,199
$1,175
 $11
$40
 $1,210
$1,215
 $2,326
$2,491
 $49
$39
 $2,375
$2,530
Quarterly discussion
The provision for credit losses was flat as a result of:
a decrease in the consumer provision predominantly reflecting
–
no addition to the allowance for credit losses in CCB in the current quarter, compared with a net addition in the prior year primarily in the credit card portfolio
–
lower net charge-offs, primarily in the residential real estate portfolio, which includes a recovery from a loan sale, and reflects the continued improvement in home prices and delinquencies, predominantly offset by an increase in net charge-offs in the credit card portfolio due to seasoning of newer vintages, in line with expectations
the decrease in the consumer provision was offset by
an increase in the wholesale provision reflecting
–
a net expense in the current period as a result of net portfolio activity, including new exposures and loan sales, compared with a net benefit in the prior year driven by a reduction in the allowance for credit losses in the Oil & Gas, Natural Gas Pipelines, and Metals and Mining portfolios.
 
Year-to-date discussion
The provision for credit losses decreased as a result of:
a lower consumer provision predominantly reflecting
–no addition to the allowance for credit losses in CCB in the current year, compared with a net addition in the prior year primarily in the credit card portfolio
partially offset by
–
higher net charge-offs in the credit card portfolio due to seasoning of newer vintages, in line with expectations. These were largely offset by lower net charge-offs in the residential real estate portfolio, which includes a recovery from a loan sale and reflects the continued improvement in home prices and delinquencies
–the prior year included a $218 million write-down recorded in connection with the sale of the student loan portfolio
the decrease in the consumer provision was partially offset by
a lower net benefit in the wholesale provision reflecting
–a net benefit in the current period, primarily driven by a single name in the Oil & Gas portfolio, partially offset by other net portfolio activity, compared with a net benefit in the prior year, driven by a reduction in the allowance for credit losses in the Oil & Gas, Natural Gas Pipelines, and Metals and Mining portfolios.





INVESTMENT PORTFOLIO RISK MANAGEMENT
Investment portfolio risk is the risk associated with the loss of principal or a reduction in expected returns on investments arising from the investment securities portfolio held predominantly by Treasury and CIO in connection with the Firm’s balance sheet or asset-liability management objectives or from principal investments managed in variousthe LOBs and Corporate in predominantly privately-held financial assets and instruments. Investments are typically intended to be held over extended periods and, accordingly, the Firm has no expectation for short-term realized gains with respect to these investments.
Investment securities risk
Investment securities risk includes the exposure associated with a default in the payment of principal and interest. This risk is minimizedmitigated given that Treasury and CIO generallysubstantially invest in high-quality securities. At June 30, 2018,2019, the investment securities portfolio was $231.4$305.4 billion, and the average credit rating of the securities comprising the portfolio was AA+ (based upon external ratings where available and where not available, based primarily upon internal ratings that correspond to ratings as defined by S&P and Moody’s). For further information on the investment securities portfolio, refer to Corporate segment results on pages 39–4041–42 and Note 9. For further information on the market risk inherent in the portfolio, refer to Market Risk Management on pages 71–75.70–74. For further information on related liquidity risk, refer to Liquidity Risk on pages 48–52.49–53.


 
Principal investment risk
Principal investments are typically private non-traded financial instruments representing ownership or other forms of junior capital. Principal investments cover multiple asset classes and are made either in stand-alone investing businesses or as part of a broader business platform. Increasingly, In general, new principal investments areinclude tax-oriented investments, as well as investments made to enhance or accelerate LOB and Corporate strategic business initiatives. The Firm’s principal investments are managed by the various LOBs and Corporate and are reflected within thetheir respective LOB financial results. Effective January 1, 2018, the Firm adopted new accounting guidance related to the recognition and measurement of financial assets, which requires fair value adjustments upon observable price changes to certain equity investments previously held at cost in the principal investment portfolios. For additional information, refer to Note 2.
As of June 30, 20182019 and December 31, 2017,2018, the aggregate carrying values of the principal investment portfolios were $19.9$22.0 billion and $19.5$22.2 billion, respectively, which included tax-oriented investments (e.g., affordable housing and alternative energy investments) of $13.6$16.0 billion and $14.0$16.6 billion, respectively, and private equity, various debt and equity instruments, and real assets of $6.3$6.0 billion and $5.5$5.6 billion, respectively.
For a discussion of the Firm’s Investment Portfolio Risk Management governance and oversight, refer to page 120123 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.




MARKET RISK MANAGEMENT
Market risk is the risk associated with the effect of changes in market factors such as interest and foreign exchange rates, equity and commodity prices, credit spreads or implied volatilities, on the value of assets and liabilities held for both the short and long term. For a discussion of the Firm’s Market Risk Management organization, tools used to measuremarket risk measurement, risk monitoring and control, and predominant business activities that give rise to market risk, identification and classification, refer to Market Risk Management on pages 121-128124–131 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Value-at-risk
JPMorgan Chase utilizes value-at-risk (“VaR”), a statistical risk measure, to estimate the potential loss from adverse market moves in a normalthe current market environment. The Firm has a single VaR framework used as a basis for calculating Risk Management VaR and Regulatory VaR.
AsThe Firm’s Risk Management VaR is based on historical data, it iscalculated assuming a one-day holding period and an imperfectexpected tail-loss methodology which approximates a 95% confidence level. For risk management purposes, the Firm believes this methodology provides a daily measure of risk that is closely aligned to risk management decisions made by the lines of business and Corporate and, along with other market risk exposure and potential future losses. In addition, based on their reliance on available historical data, limited time horizons, and other factors, VaR measures, are inherently limited in their abilityprovides the appropriate information needed to measure certain risks andrespond to predict losses, particularly those associated with market illiquidity and sudden or severe shifts in market conditions.
For certain products, specific risk parameters are not captured in VaR due to the lack of inherent liquidity and availability of appropriate historical data.events. The Firm uses proxiescalculates separately a daily aggregated VaR in accordance with regulatory rules (“Regulatory VaR”), which is used to estimatederive the VaR for these and other products when daily time series are not available. It is likely that using an actual price-based time series for these products, if available, would affect the VaR results presented. The Firm therefore considers other measures such as stress testing and nonstatistical measures, in addition to VaR, to capture and manage its market risk positions. For further information, refer to Other risk measures on pages 126-128 of JPMorgan Chase’s 2017 Annual Report.Firm’s regulatory VaR-based capital requirements under Basel III.
 
The Firm’s VaR model calculations are periodically evaluated and enhanced in response to changes in the composition of the Firm’s portfolios, changes in market conditions, improvements in the Firm’s modeling techniques and measurements, and other factors. Such changes may affect historical comparisons of VaR results. For information regarding model reviews and approvals, refer to Estimations and Model Risk Management on page 137140 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The Firm’s Risk Management VaR is calculated assuming a one-day holding period and an expected tail-loss methodology which approximates a 95% confidence level. For risk management purposes, the Firm believes this methodology provides a stable measure of VaR that closely aligns to the day-to-day risk management decisions made by the lines of business, and provides the necessary and appropriate information to respond to risk events on a daily basis. The Firm calculates separately a daily aggregated VaR in accordance with regulatory rules (“Regulatory VaR”), which is used to derive the Firm’s regulatory VaR-based capital requirements under Basel III. For further information regarding VaR, including the inherent limitations, and the key differences between Risk Management VaR and Regulatory VaR, refer to page 123126 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K. For additional information on Regulatory VaR and the other components of market risk regulatory capital for the Firm (e.g., VaR-based measure, stressed VaR-based measure and the respective backtesting), refer to JPMorgan Chase’s Basel III Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website at:
(http://investor.shareholder.com/jpmorganchase/basel.cfm)basel.cfm). For further information regarding nonstatistical market risk measures used by the Firm, refer to Other risk measures on pages 129-131 of JPMorgan Chase’s 2018 Form 10-K.




The table below shows the results of the Firm’s Risk Management VaR measure using a 95% confidence level. VaR can vary significantly as positions change, market volatility fluctuates, and diversification benefits change.
Total VaR                  

















Three months ended Three months ended
June 30, 2018 March 31, 2018 June 30, 2017 June 30, 2019
March 31, 2019
June 30, 2018
(in millions) Avg.MinMax  Avg.MinMax  Avg.MinMax
  Avg.MinMax
 Avg.MinMax
 Avg.MinMax

CIB trading VaR by risk type                  

















Fixed income$31
 $26
 $36
 $34
 $30
 $39
 $28
 $25
 $31
 $39

$33

$45


$44

$38

$50


$31

$26

$36

Foreign exchange6
 4
 10
 9
 6
 15
 8
 5
 12
 7

5

12


9

4

15


6

4

10

Equities15
 13
 18
 17
 15
 22
 12
 9
 16
 25

14

31


16

13

22


15

13

18

Commodities and other7
 5
 9
 5
 4
 6
 8
 6
 10
 9

7

10


10

9

12


7

5

9

Diversification benefit to CIB trading VaR(27)
(a) 
 NM
(b) 
 NM
(b) 
 (25)
(a) 
 NM
(b) 
 NM
(b) 
 (30)
(a) 
 NM
(b) 
 NM
(b) 
(36)
(a) 
 NM
(b) 
 NM
(b) 

(32)
(a) 
 NM
(b) 
 NM
(b) 

(27)
(a) 
NM
(b) 
NM
(b) 
CIB trading VaR32
 26
(b) 
42
(b) 
 40
 35
(b) 
49
(b) 
 26
 20
(b) 
31
(b) 
44

34
(b) 
55
(b) 

47

36
(b) 
61
(b) 

32

26
(b) 
42
(b) 
Credit portfolio VaR4
 3
 4
 3
 3
 4
 9
 6
 10
 5

4

7


5

4

6


4

3

4

Diversification benefit to CIB VaR(3)
(a) 
 NM
(b) 
 NM
(b) 
 (3)
(a) 
 NM
(b) 
 NM
(b) 
 (8)
(a) 
NM
(b) 
NM
(b) 
(5)
(a) 
 NM
(b) 
 NM
(b) 

(4)
(a) 
NM
(b) 
NM
(b) 

(3)
(a) 
NM
(b) 
NM
(b) 
CIB VaR33
 26
(b) 
42
(b) 
 40
 35
(b) 
51
(b) 
 27
 22
(b) 
32
(b) 
44

35
(b) 
55
(b) 

48

37
(b) 
63
(b) 

33

26
(b) 
42
(b) 
                  




























CCB VaR1
 1
 3
 1
 1
 2
 2
 2
 3
 4

2

7


2

1

3


1

1

3

Corporate VaR12
 10
 13
 12
 10
 14
 3
 2
 3
 10

9

10


10

9

12


12

10

13

Diversification benefit to other VaR(1)
(a) 
 NM
(b) 
 NM
(b) 
 (1)
(a) 
 NM
(b) 
 NM
(b) 
 (2)
(a) 
NM
(b) 
NM
(b) 
(5)
(a) 
 NM
(b) 
 NM
(b) 

(2)
(a) 
NM
(b) 
NM
(b) 

(1)
(a) 
NM
(b) 
NM
(b) 
Other VaR12
 10
(b) 
14
(b) 
 12
 10
(b) 
14
(b) 
 3
 3
(b) 
4
(b) 
9

8
(b) 
11
(b) 

10

9
(b) 
11
(b) 

12

10
(b) 
14
(b) 
Diversification benefit to CIB and other VaR(10)
(a) 
 NM
(b) 
 NM
(b) 
 (9)
(a) 
 NM
(b) 
 NM
(b) 
 (3)
(a) 
NM
(b) 
NM
(b) 
(7)
(a) 
 NM
(b) 
 NM
(b) 

(6)
(a) 
NM
(b) 
NM
(b) 

(10)
(a) 
NM
(b) 
NM
(b) 
Total VaR$35
 $28
(b) 
$44
(b) 
 $43
 $37
(b) 
$53
(b) 
 $27
 $22
(b) 
$33
(b) 
$46

$36
(b) 
$57
(b) 

$52

$40
(b) 
$65
(b) 

$35

$28
(b) 
$44
(b) 
(a)Average portfolio VaR is less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects that the risks are not perfectly correlated.
(b)Diversification benefit represents the difference between the total VaR and each reported level and the sum of its individual components. Diversification benefit reflects the non-additive nature of VaR due to imperfect correlation across lines of business, Corporate, and risk types. The maximum and minimum VaR for each portfolio may have occurred on different trading days than the components and consequently diversification benefit is not meaningful.
Quarter over Quarterquarter results
Average total VaR decreased by $8$6 million for the threemonths ended June 30, 20182019 as compared with the prior quarter. The decreaseThis reflects changesa reduction in risk across Fixed Income and Foreign Exchange risk types, partially offset by Equities risk type, driven by the inclusion of a CIB strategic investment in Tradeweb following the IPO in the exposure profile for Equities and Fixed income risk types.second quarter of 2019.





 
Year over Yearyear results
Average total VaR increased by $8$11 million for the threemonths ended June 30, 2018,2019, compared with the same period in the prior year. The increase in average total VaR is primarily due to the Equities risk type, driven by the inclusion of a Corporate private equity position that became publicly tradedCIB strategic investment in Tradeweb following the IPO in the fourthsecond quarter of 20172019, changes in the risk profile for Fixed Income risk type and certain investments in CIB VaR.increased volatility.
VaR can vary significantly as positions change, market volatility fluctuates, and diversification benefits change.


VaR back-testing
The Firm evaluates the effectiveness of itsperforms daily VaR methodology bymodel back-testing, which compares the daily Risk Management VaR results with the daily gains and losses actually recognized on market-risk related revenue.
The Firm’s definition of market risk-related gains and losses is consistent with the definition used by the banking regulators under Basel III. Under this definition market risk-related gains and losses are defined as: gains and losses on the positions included in the Firm’s Risk Management VaR excluding fees, commissions, certain valuation adjustments, (e.g., liquidity and FVA), net interest income, and gains and losses arising from intraday trading.
The following chart compares actual daily market risk-related gains and losses with the Firm’s Risk Management VaR for the six months ended June 30, 2018.2019. As the chart presents market risk-related gains and losses related to those positions included in the Firm’s Risk Management VaR, the results in the table below differ from the results of back-testing disclosed in the Market Risk section of the Firm’s Basel III Pillar 3 Regulatory Capital Disclosures reports, which are based on Regulatory VaR applied to CIB’s covered positions. The chart shows that for the six months ended June 30, 2018,2019, the Firm observed fivetwo VaR back-testing exceptions and posted market risk-related gains on 7582 of the 129128 days. The Firm observed one VaR back-testing exception and posted market risk-related gains on 3537 of the 65 days for the three months ended June 30, 2018.2019.
Daily Market Risk-Related Gains and Losses
vs. Risk Management VaR (1-day, 95% Confidence level)
Six months ended June 30, 20182019
 
Market Risk-Related Gains and Losses
 
Risk Management VaR
chart-c589b14b729f5aaea49.jpgchart-03ae90a1830e5a3d86f.jpg
JanuaryFebruaryMarchAprilMayJune




Earnings-at-risk
The VaR and sensitivity measures illustrate the economic sensitivity of the Firm’s Consolidated balance sheets to changes in market variables.
The effect of interest rate exposure on the Firm’s reported net income is also important as interest rate risk represents one of the Firm’s significant market risks. Interest rate risk arises not only from trading activities but also from the Firm’s traditional banking activities, which include extension of loans and credit facilities, taking deposits and issuing debt. Thedebt as well as from the investment securities portfolio. One way the Firm evaluates its structural interest rate risk exposure is through earnings-at-risk, which measuresestimates the extent to which changes in interest rates will affectsensitivity of the Firm’s net interest income and interest rate-sensitive fees.fees to changes in rates. For a summary by line of business and Corporate, identifying positions included in earnings-at-risk, refer to the table on page 122125 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The Firm generates a baseline for net interest income and certain interest rate-sensitive fees, and then conducts simulations of changes for interest rate-sensitive assets and liabilities denominated in U.S. dollars and other currencies (“non-U.S. dollar” currencies). This simulation primarily includes retained loans, deposits, deposits with banks, investment securities, long term debt and any related interest rate hedges, and excludes other positions in risk management VaR and other sensitivity-based measures as described on page 122125 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Earnings-at-risk scenarios estimate the potential change in this baseline, over the following 12 months utilizing multiple assumptions. These scenarios include a parallel shift involving changes to both short-term and long-term rates by an equal amount; a steeper yield curve involving holding short-term rates constant and increasing long-term rates or decreasing short-term rates and holding long-term rates constant; and a flatter yield curve involving holding short-term rates constant and decreasing long-term rates or increasing short-term rates and holding long-term rates constant. These scenarios consider the impact on exposures as a result of changes in interest rates from baseline rates, as well as pricing sensitivities of deposits, optionality and changes in product mix. The scenarios include forecasted balance sheet changes, as well as modeled prepayment and reinvestment behavior, but do not include assumptions about actions that could be taken by the Firm in response to any such instantaneous rate changes. Mortgage prepayment assumptions are based on scenariothe interest rates used in the scenarios compared with underlying contractual rates, the time since origination, and other factors which are updated periodically based on historical experience. The pricing sensitivity of deposits in the baseline and scenarios use assumed rates paid which may differ from actual rates paid due to timing lags and other factors. The Firm’s earnings-at-risk scenarios are periodically evaluated and enhanced in response to changes in the composition of the Firm’s balance sheet, changes in market conditions, improvements in the Firm’s simulation and other factors.
 
The Firm’s U.S. dollar sensitivities are presented in the table below.
JPMorgan Chase’s 12-month earnings-at-risk sensitivity profiles
U.S. dollarInstantaneous change in rates 
(in billions)+200 bps+100 bps-100 bps-200 bps
June 30, 2018$1.9
 $1.0
 $(2.1) NM
(a) 
December 31, 2017$2.4
 $1.7
 $(3.6) NM
(a) 
(in billions)June 30, 2019
 December 31, 2018
Parallel shift:   
+100 bps shift in rates$1.1
 $0.9
-100 bps shift in rates(2.7) (2.1)
Steeper yield curve:   
+100 bps shift in long-term rates0.8
 0.5
-100 bps shift in short-term rates(1.2) (1.2)
Flatter yield curve:   
+100 bps shift in short-term rates0.3
 0.4
-100 bps shift in long-term rates(1.5) (0.9)
(a)Given the level of market interest rates, these downward parallel earnings-at-risk scenarios are not considered to be meaningful.
The Firm’s sensitivity to rates is largely a result of assets re-pricingrepricing at a faster pace than deposits.
The Firm’s net U.S. dollar parallel sensitivities to 200 and 100 basis points instantaneous rate increases each decreased by approximately $500 million and $700 million, respectively, while the Firm’s net U.S. dollar sensitivity to 100 basis points instantaneous decrease in rates decreased by $1.5 billion as of June 30, 2019 increasedwhen compared to December 31, 2017. The primary driver2018primarily as a result of these decreases was the updating of the Firm’s baseline to reflect higherlower interest rates. As higher interest rates are reflectedrates largely offset by impacts from a net change in the Firm’s baselines, sensitivities to changes in rates are expected to be less significant.spot and forecasted balance sheet.
The Firm’s non-U.S. dollar sensitivities for an instantaneous increaseare presented in rates by 200 and 100 basis pointsthe table below.
(in billions)June 30, 2019
 December 31, 2018
Parallel shift:   
+100 bps shift in rates$0.6
 $0.5
Flatter yield curve:   
+100 bps shift in short-term rates0.6
 0.5
The results in a 12-month benefit to net interest income of approximately $900 million and $500 million, respectively, at June 30, 2018 and $800 million and $500 million, respectively, at December 31, 2017. Thethe non-U.S. dollar sensitivities for an instantaneous decrease in rates by 200 and 100 basis points are not material to the Firm’s earnings-at-risk at June 30, 2018 and December 31, 2017.
Separately, another U.S. dollar interest rate scenario used by the Firm — involving a steeper yield curve with long-term rates rising by 100 basis points and short-term rates staying at current levels — results in a 12-month benefit to net interest income of approximately $500 million and $700 million at June 30, 2018 and December 31, 2017, respectively. The increase in net interest income under this scenario reflects the Firm reinvesting at the higher long-term rates, with funding costs remaining unchanged. The results of the comparable non-U.S. dollar scenarios arewere not material to the FirmFirm’s earnings-at-risk at June 30, 20182019 and December 31, 2017.2018.





Other sensitivity-based measures
The Firm quantifies the market risk of certain investment and funding activities by assessing the potential impact on net revenue and OCI due to changes in relevant market variables. For additional information on the positions
 
captured in other sensitivity-based measures, please refer to the Risk identification and classification table Predominant business activities that give rise to market risk on page 122125 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The table below represents the potential impact to net revenue or OCI for market risk-sensitive instruments that are not included in VaR or earnings-at-risk. Where appropriate, instruments used for hedging purposes are reported along with the positions being hedged. The sensitivities disclosed in the table below may not be representative of the actual gain or loss that would have been realized at June 30, 20182019 and December 31, 2017,2018, as the movement in market parameters across maturities may vary and are not intended to imply management’s expectation of future deterioration in these sensitivities.
Gain/(loss) (in millions)
 June 30, 2018
 December 31, 2017
 June 30, 2019
 December 31, 2018
Activity Description Sensitivity measure   Description Sensitivity measure  
        
Investment activities(a)        
Investment management activities Consists of seed capital and related hedges; and fund co-investments 10% decline in market value $(135) $(110) Consists of seed capital and related hedges; and fund co-investments 10% decline in market value $(89) $(102)
Other investments Consists of private equity and other investments held at fair value 10% decline in market value (266) (338) Consists of privately held equity and other investments held at fair value 10% decline in market value (208) (218)
        
Funding activities        
Non-USD LTD cross-currency basis 
Represents the basis risk on derivatives used to hedge the foreign exchange risk on the non-USD LTD(a)
 1 basis point parallel tightening of cross currency basis (9) (10) 
Represents the basis risk on derivatives used to hedge the foreign exchange risk on the non-USD LTD(b)
 1 basis point parallel tightening of cross currency basis (14) (13)
Non-USD LTD hedges foreign currency (“FX”) exposure 
Primarily represents the foreign exchange revaluation on the fair value of the derivative hedges(a)
 10% depreciation of currency 16
 (13) 
Primarily represents the foreign exchange revaluation on the fair value of the derivative hedges(b)
 10% depreciation of currency 7
 17
Derivatives – funding spread risk Impact of changes in the spread related to derivatives FVA 1 basis point parallel increase in spread (4) (6) Impact of changes in the spread related to derivatives FVA 1 basis point parallel increase in spread (5) (4)
Fair value option elected liabilities – funding spread risk 
Impact of changes in the spread related to fair value option elected liabilities DVA(a)
 1 basis point parallel increase in spread 29
 22
 
Impact of changes in the spread related to fair value option elected liabilities DVA(b)
 1 basis point parallel increase in spread 30
 30
Fair value option elected liabilities – interest rate sensitivity 
Interest rate sensitivity on fair value option liabilities resulting from a change in the Firm’s own credit spread(a)
 1 basis point parallel increase in spread 1
 (1) 
Interest rate sensitivity on fair value option liabilities resulting from a change in the Firm’s own credit spread(b)
 1 basis point parallel increase in spread 1
 1
(a)Excludes equity securities without readily determinable fair values that are measured under the measurement alternative. Refer to Note 2 for additional information.
(b)Impact recognized through OCI.




COUNTRY RISK MANAGEMENT
The Firm, has athrough its lines of business and Corporate, may be exposed to country risk management framework for monitoring and assessing howresulting from financial, economic, political or other significant developments which adversely affect the value of the Firm’s exposures related to a particular country or set of countries. The Country Risk Management group actively monitors the various portfolios giving risewhich may be impacted by these developments and measures the extent to country risk to ensurewhich the Firm’s country risk exposures are diversified and that exposure levels are appropriate given the Firm’s strategy and risk tolerance relative to a country.
Country Risk Management periodically designs and runs tailored stress scenarios to test vulnerabilities to individual countries or groups of countries in response to specific or potential market events, sector performance concerns and geopolitical risks. These tailored stress results are used to inform potential risk reduction across the firm, as necessary.
For a further discussion of the Firm’s Country Risk Management organization; identification and measurement; stress testing; monitoring and control; and reporting,country risk management, refer to pages 129–130132–133 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The following table presents the Firm’s top 20 exposures by country (excluding the U.S.) as of June 30, 2019 and their comparative exposures as of December 31, 2018. The selection of countries represents the Firm’s largest total exposures by country, based on the Firm’s internal country risk management approach, and does not represent the Firm’s view of any actual or potentially adverse credit conditions. Country exposures may fluctuate from period to period due to client activity and market flows.
The increase in exposure to Japan is predominantly due to increased cash balances placed with the central bank of Japan, driven by client activity.
Top 20 country exposures (excluding the U.S.)(a)

(in billions)		June 30, 2019 
December 31, 2018(e)
 
Lending and deposits(b)
Trading and investing(c)
Other(d)
Total exposure Total exposure
Germany$52.3
$7.3
$0.4
$60.0
 $62.1
Japan40.8
5.5
0.4
46.7
 29.1
United Kingdom31.8
10.5
1.1
43.4
 40.7
Switzerland11.9
0.8
5.0
17.7
 12.8
China9.5
5.9
1.9
17.3
 19.3
France11.2
4.1
1.1
16.4
 17.9
Canada11.9
1.2
0.1
13.2
 14.3
India5.4
4.5
2.5
12.4
 11.8
Luxembourg11.6
0.5
—
12.1
 11.0
Australia6.2
4.9
0.6
11.7
 13.0
Netherlands5.3
1.2
3.0
9.5
 5.8
Italy3.2
4.1
0.2
7.5
 6.4
Singapore4.1
1.6
1.8
7.5
 6.8
Brazil4.4
2.7
—
7.1
 7.3
Mexico4.6
1.7
—
6.3
 5.5
South Korea3.9
1.9
0.3
6.1
 7.6
Spain3.6
2.0
—
5.6
 5.1
Saudi Arabia4.8
0.7
—
5.5
 5.3
Hong Kong2.5
1.3
0.9
4.7
 5.4
Belgium4.4
(0.1)—
4.3
 2.3
Top 20 country exposures (excluding the U.S.)(a)
 
  June 30, 2018

(in billions)
 
Lending and deposits(b)
Trading and investing(c)(d)
Other(e)
Total exposure
Germany $50.7
$9.7
$0.2
$60.6
United Kingdom 25.2
8.5
17.4
51.1
Japan 27.6
8.9
0.4
36.9
China 9.4
7.4
1.9
18.7
France 11.6
5.0
0.5
17.1
Canada 13.4
3.0
0.1
16.5
Switzerland 11.1
0.6
3.4
15.1
India 5.9
5.1
1.4
12.4
Australia 6.0
5.7
—
11.7
Luxembourg 8.8
0.4
—
9.2
Brazil 5.2
3.9
—
9.1
Netherlands 6.3
1.5
1.2
9.0
Italy 2.6
4.1
0.2
6.9
South Korea 3.9
2.7
0.2
6.8
Hong Kong 3.1
1.2
1.7
6.0
Singapore 3.3
1.3
1.4
6.0
Spain 4.5
0.8
0.1
5.4
Mexico 3.8
1.1
—
4.9
Saudi Arabia 3.9
0.8
—
4.7
Ireland 2.3
0.4
1.1
3.8
(a)CountryTop 20 country exposures above reflect 87%approximately 88% and 86% of total firmwide non-U.S. exposure.exposure, where exposure is attributed to a specific country, at June 30, 2019, and December 31, 2018 respectively.
(b)Lending and deposits includes loans and accrued interest receivable (net of eligible collateral and the allowance for loan losses), deposits with banks (including central banks), acceptances, other monetary assets, issued letters of credit net of participations, and unused commitments to extend credit. Excludes intra-day and operating exposures, such as those from settlement and clearing activities.
(c)Includes market-making inventory, AFS securities, and counterparty exposure on derivative and securities financings net of eligible collateral and hedging.
(d)Includes exposure from single reference entity (“single-name”), index and other multiple reference entity transactions for which one or more of the underlying reference entities is in a country listed in the above table.
(e)(d)Includes capital invested in local entities andPredominantly includes physical commodity inventory.

(e)The country rankings presented in the table as of December 31, 2018, are based on the country rankings of the corresponding exposures at June 30, 2019, not actual rankings of such exposures at December 31, 2018.




CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM
JPMorgan Chase’s accounting policies and use of estimates are integral to understanding its reported results. The Firm’s most complex accounting estimates require management’s judgment to ascertain the appropriate carrying value of assets and liabilities. The Firm has established policies and control procedures intended to ensure that estimation methods, including any judgments made as part of such methods, are well-controlled, independently reviewed and applied consistently from period to period. The methods used and judgments made reflect, among other factors, the nature of the assets or liabilities and the related business and risk management strategies, which may vary across the Firm’s businesses and portfolios. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The Firm believes its estimates for determining the carrying value of its assets and liabilities are appropriate. The following is a brief description of the Firm’s critical accounting estimates involving significant judgments.
Allowance for credit losses
JPMorgan Chase’sThe Firm’s allowance for credit losses covers the retained consumer and wholesale loan portfolios, as well as the Firm’s wholesale and certain consumer lending-related commitments. The allowance for loan losses is intended to adjust the carrying value of the Firm’s loan assets to reflect probable credit losses inherent in the loan portfolio as of the balance sheet date. Similarly, the allowance for lending-related commitments is established to cover probable credit losses inherent in the lending-related commitments portfolio as of the balance sheet date.
The allowance for credit losses includes a formula-based component, an asset-specific component, and a component related to PCI loans. The determination of each of these components involves significant judgment on a number of matters. For further information on these components, areas of judgment and methodologies used in establishing the Firm’s allowance for credit losses, refer to pages 117–119,120–122, page 138141 and Note 13 of JPMorgan Chase’s 2017 Annual Report;2018 Form 10-K; and refer to Allowance for credit losses on pages 67–6968 and Note 12 of this Form 10-Q.
As noted in the discussion on page 138141 of JPMorgan Chase’s 2017 Annual Report,2018 Form 10-K, the Firm’s allowance for credit losses is sensitive to numerous factors, which may differ depending on the portfolio. Changes in economic conditions or in the Firm’s assumptions and estimates could affect its estimate of probable credit losses inherent in the portfolio at the balance sheet date. The Firm uses its best judgment to assess these economic conditions and loss data in estimating the allowance for credit losses and these estimates are subject to periodic refinement based on changes to underlying external or Firm-specific historical data. ReferFor further information, refer to Note 12 of this Form 10-Q for further discussion.12.
To illustrate the potential magnitude of certain alternate judgments, the Firm estimates that changes in the following inputs would have the following effects on the Firm’s
modeled credit loss estimates as of June 30, 2018,2019, without
consideration of any offsetting or correlated effects of other inputs in the Firm’s allowance for loan losses:
A combined 5% decline in housing prices and a 100 basis point increase in unemployment rates from current levelsexpectations could imply:
◦an increase to modeled credit loss estimates of approximately $525$250 million for PCI loans.
◦an increase to modeled annual credit loss estimates of approximately $75$50 million for residential real estate loans, excluding PCI loans.
For credit card loans, a 100 basis point increase in unemployment rates from current levelsexpectations could imply an increase to modeled annual credit loss estimates of approximately $775$800 million.
An increase in probability of default (“PD”) factors consistent with a one-notch downgrade in the Firm’s internal risk ratings for its entire wholesale loan portfolio could imply an increase in the Firm’s modeled credit loss estimates of approximately $1.5$1.7 billion.
A 100 basis point increase in estimated loss given default (“LGD”) for the Firm’s entire wholesale loan portfolio could imply an increase in the Firm’s modeled credit loss estimates of approximately $175 million.
The purpose of these sensitivity analyses is to provide an indication of the isolated impacts of hypothetical alternative assumptions on modeled loss estimates. The changes in the inputs presented above are not intended to imply management’s expectation of future deterioration of those risk factors. In addition, these analyses are not intended to estimate changes in the overall allowance for loan losses, which would also be influenced by the judgment management applies to the modeled loss estimates to reflect the uncertainty and imprecision of these modeled loss estimates based on then-current circumstances and conditions.
It is difficult to estimate how potential changes in specific factors might affect the overall allowance for credit losses because management considers a variety of factors and inputs in estimating the allowance for credit losses. Changes in these factors and inputs may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors may be directionally inconsistent, such that improvement in one factor may offset deterioration in other factors. In addition, it is difficult to predict how changes in specific economic conditions or assumptions could affect borrower behavior or other factors considered by management in estimating the allowance for credit losses. Given the process the Firm follows and the judgments made in evaluating the risk factors related to its loss estimates, management believes that its current estimate of the allowance for credit losses is appropriate.


Fair value of financial instruments, MSRs and commodities inventory
Assets measured at fair value
The following table includes the Firm’s assets measured at fair value and the portion of such assets that are classified within level 3 of the valuation hierarchy. For further information, refer to Note 2.
June 30, 2018
(in millions, except ratios)		Total assets at fair value Total level 3 assets
June 30, 2019
(in billions, except ratios)
Total assets at fair value Total level 3 assets
Trading–debt and equity instruments$360.2
  $4.5
$470.4
  $4.4
Derivative receivables(a)
58.5
 7.0
52.9
 6.2
Trading assets418.7
 11.5
523.3
 10.6
AFS securities202.0
 0.1
276.4
 —
Loans3.1
 0.2
4.3
 —
MSRs6.2
 6.2
5.1
 5.1
Other30.1
 1.3
28.5
 0.8
Total assets measured at fair value on a recurring basis
$660.1
 $19.3
$837.6
 $16.5
Total assets measured at fair value on a nonrecurring basis1.6
 1.0
1.6
 0.9
Total assets measured at fair value
$661.7
 $20.3
$839.2
 $17.4
Total Firm assets$2,590.1
  $2,727.4
  
Level 3 assets as a percentage of total Firm assets(a)
  0.8%  0.6%
Level 3 assets as a percentage of total Firm assets at fair value(a)
  3.1%  2.1%
(a)For purposes of the table above, the derivative receivables total reflects the impact of netting adjustments; however, the $7.0$6.2 billion of derivative receivables classified as level 3 does not reflect the netting adjustment as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral.
Valuation
Estimating fair value requires the application of judgment. The type and level of judgment required is largely dependent on the amount of observable market information available to the Firm. For instruments valued using internally developed valuation models and other valuation techniques that use significant unobservable inputs and are therefore classified within level 3 of the valuation hierarchy, judgments used to estimate fair value are more significant than those required when estimating the fair value of instruments classified within levels 1 and 2.
In arriving at an estimate of fair value for an instrument within level 3, management must first determine the appropriate valuation technique to use. Second, the lack of observability of certain significant inputs requires management to assess all relevant empirical data in deriving valuation inputs including, for example, transaction details, yield curves, interest rates, prepayment rates, default rates, volatilities, correlations, equity or debt prices, valuations of comparable instruments, foreign exchange rates and credit curves. For a further discussion of the valuation of level 3 instruments, including unobservable inputs used, refer to Note 2.
 
For instruments classified in levels 2 and 3, management judgment must be applied to assess the appropriate level of valuation adjustments to reflect counterparty credit quality, the Firm’s creditworthiness, market funding rates, liquidity considerations, unobservable parameters, and for portfolios that meet specified criteria, the size of the net open risk position. The judgments made are typically affected by the type of product and its specific contractual terms, and the level of liquidity for the product or within the market as a whole. For a further discussion of valuation adjustments applied by the Firm refer to Note 2.
Imprecision in estimating unobservable market inputs or other factors can affect the amount of gain or loss recorded for a particular position. Furthermore, while the Firm believes its valuation methods are appropriate and consistent with those of other market participants, the methods and assumptions used reflect management judgment and may vary across the Firm’s businesses and portfolios.
The Firm uses various methodologies and assumptions in the determination of fair value. The use of methodologies or assumptions different than those used by the Firm could result in a different estimate of fair value at the reporting date. For a detailed discussion of the Firm’s valuation process and hierarchy, and its determination of fair value for individual financial instruments, refer to Note 2.
Goodwill impairment
Management applies significant judgment when testing goodwill for impairment. The goodwill associated with each business combination is allocated to the related reporting units for goodwill impairment testing. For a description of the significant valuation judgments associated with goodwill impairment, refer to Goodwill impairment on pages 139–140page 142 of JPMorgan Chase’s 2017 Annual Report.
For the three months ended June 30, 2018 the Firm reviewed current economic conditions, business performance, the current estimated market cost of equity, and prior projections of business performance for all its businesses. Based upon such reviews, the Firm concluded that the goodwill allocated to its reporting units was not impaired as of June 30, 2018.
Declines in business performance, increases in credit losses, increases in equity capital requirements, as well as deterioration in economic or market conditions, adverse regulatory or legislative changes or increases in the estimated market cost of equity, could cause the estimated fair values of the Firm’s reporting units or their associated goodwill to decline in the future, which could result in a material impairment charge to earnings in a future period related to some portion of the associated goodwill.Form 10-K.
For additional information on goodwill, including the goodwill impairment assessment as of June 30, 2019, refer to Note 14.

Credit card rewards liability
JPMorgan Chase offersThe credit cards with various rewards programs which allow cardholders to earn rewards points based on their account activity and the terms and conditions of the rewards program. Generally, there are no limits on the points that an eligible cardholder can earn, nor do the points expire, and the points can be redeemed for a variety of rewards, including cash (predominantly in the form of account credits), gift cards and travel. The Firm maintains acard rewards liability which represents the estimated cost of rewards points earned and expected to be redeemed by cardholders. The rewards liability is sensitive to various assumptions, including cost per point and redemption rates for each of the various rewards programs, which are evaluated periodically. The liability is accrued as the cardholder earns the benefit and is reduced when the cardholder redeems points. This liability was $5.5$6.0 billion and $4.9$5.8 billion at June 30, 20182019 and December 31, 2017,2018, respectively, and is recorded in accounts payable and other liabilities on the Consolidated balance sheets. For a description of the significant assumptions and judgments associated with the Firm’s credit card rewards liability, refer to page 143 of JPMorgan Chase’s 2018 Form 10-K.
Income taxes
For a description of the significant assumptions, judgments and interpretations associated with the accounting for income taxes, refer to Note 1, and Income taxes on page 140143 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Litigation reserves
For a description of the significant estimates and judgments associated with establishing litigation reserves, refer to Note 2224 of this Form 10-Q, and Note 29 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.


ACCOUNTING AND REPORTING DEVELOPMENTS
Financial Accounting Standards Board (“FASB”) Standards Adopted since January 1, 2018
StandardSummary of guidanceEffects on financial statements
Revenue recognition – revenue from contracts with customers
Issued May 2014

 •  Requires that revenue from contracts with customers be recognized upon transfer of control of a good or service in the amount of consideration expected to be received.
 • Changes the accounting for certain contract costs, including whether they may be offset against revenue in the Consolidated statements of income, and requires additional disclosures about revenue and contract costs.

 • Adopted January 1, 2018.
 • For further information, refer to Note 1.
Recognition and
measurement of financial assets and financial liabilities
Issued January 2016
 • Requires that certain equity instruments be measured at fair value, with changes in fair value recognized in earnings.
 • Provides a measurement alternative for equity securities without readily determinable fair values to be measured at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer. Any such price changes are reflected in earnings beginning in the period of adoption.

 • Adopted January 1, 2018.
 • For further information, refer to Note 1.
Classification of certain cash receipts and cash payments in the statement of cash flows
Issued August 2016

 • Provides targeted amendments to the classification of certain cash flows, including the treatment of settlement payments for zero coupon debt instruments and distributions received from equity method investments.
 • Adopted January 1, 2018.
 • The adoption of the guidance had no material impact as the Firm was either in compliance with the amendments or the amounts to which it was applied were immaterial.
Treatment of restricted cash on the statement of cash flows
Issued November 2016
 • Requires restricted cash to be combined with unrestricted cash when reconciling the beginning and ending cash balances on the Consolidated statements of cash flows.
 • Requires additional disclosures to supplement the Consolidated statements of cash flows.

 • Adopted January 1, 2018
 • For further information, refer to Note 1.


FASB Standards Adopted since January 1, 2018 (continued)
StandardSummary of guidanceEffects on financial statements
Definition of a business
Issued January 2017
 • Narrows the definition of a business and clarifies that, to be considered a business, substantially all of the fair value of the gross assets acquired (or disposed of) may not be concentrated in a single identifiable asset or a group of similar assets.
 • In addition, the definition now requires that a set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs.
 • Adopted January 1, 2018.
 • The adoption of the guidance had no impact because it is being applied prospectively. Subsequent to adoption, fewer transactions will be treated as acquisitions or dispositions of a business.
Presentation of net periodic pension cost and net periodic postretirement benefit cost
Issued March 2017

 • Requires the service cost component of net periodic pension and postretirement benefit cost to be reported separately in the Consolidated statements of income from the other components (e.g., expected return on assets, interest costs, amortization of gains/losses and prior service costs).
 • Adopted January 1, 2018.
 • For further information, refer to Note 1.
Premium amortization on purchased callable debt securities
Issued March 2017

 • Requires amortization of premiums to the earliest call date on debt securities with call features that are explicit, noncontingent and callable at fixed prices and on preset dates.
 • Does not impact debt securities held at a discount; the discount continues to be amortized to the contractual maturity date.
 • Adopted January 1, 2018.
 • For further information, refer to Note 1.
Hedge accounting
Issued August 2017
 • Aligns the accounting with the economics of the risk management activities.
 • Expands the ability for certain hedges of interest rate risk to qualify for hedge accounting.
 • Allows recognition of ineffectiveness in cash flow hedges and net investment hedges in OCI.
 • Permits an election at adoption to transfer certain investment securities classified as held-to-maturity to available-for-sale.
 • Simplifies hedge documentation requirements.
 • Adopted January 1, 2018.
 • For further information, refer to Note 1.
Reclassification of certain tax effects from AOCI
Issued February 2018
 • Permits reclassification of the income tax effects of the TCJA on items within AOCI to retained earnings so that the tax effects of items within AOCI reflect the appropriate tax rate.
 • Adopted January 1, 2018.
 • For further information, refer to Note 1.


FASB Standards Issued but not yet Adopted2019
     
Standard Summary of guidance Effects on financial statements
     
Leases
Issued February 2016
 
 • Requires lessees to recognize all leases longer than twelve months on the Consolidated balance sheets as a lease liability with a corresponding right-of-use asset.
 • Requires lessees and lessors to classify most leases using principles similar to existing lease accounting, but eliminates the “bright line” classification tests.
 • Permits the Firm to generally account for its existing leases consistent with current guidance, except for the incremental balance sheet recognition.
 • Expands qualitative and quantitative leasing disclosures.
 • May be adopted using a modified cumulative effect approach wherein the guidance is applied only to existing contracts as of the date of initial application, and to new contracts transacted after that date, or a cumulative-effect adjustment to retained earnings at the effective date.
 
• Required effective date:Adopted January 1, 2019.(a)
•
The Firm is in the process of its implementation which includes evaluating its leasing activities and certain contracts for embedded leases, implementing a new lease accounting software solution for its real estate leases, and updating processes and internal controls for its leasing activities. As a lessee, the Firm is developing its estimate of the right-of-use asset and lease liability, which is based on the present value of lease payments. The Firm expects to recognize a lease liability and a corresponding right-of-use asset (at their present value) related to predominantly all of the $10 billion of future minimum payments required under operating leases as disclosed in Note 28 of JPMorgan Chase’s 2017 Annual Report. However, the population of contracts subject to balance sheet recognition and their initial measurement remains under evaluation; final financial statement impacts will depend on the lease portfolio at the time of adoption. The Firm does not expect material changes to the recognition of operating lease expense in its Consolidated statements of income.
 • The Firm plans to adopt the new lease guidance on January 1, 2019 and electelected the available practical expedients, which willexpedient to not require it to reassess whether an existing contract containscontracts contain a lease or whether classification or unamortized initial lease costs would be different under the new lease guidance. The Firm elected the modified retrospective transition method, through a cumulative-effect adjustment to retained earnings without revising prior periods.

 • For further information, refer to Note 16.







FASB Standards Issued but not yet Adopted
StandardSummary of guidanceEffects on financial statements
Financial instruments – credit losses

Issued June 2016
 
 • Replaces existing incurred loss impairment guidance and establishes a single allowance framework for financial assets carried at amortized cost, which will reflect management’s estimate of credit losses over the full remaining expected life of the financial assets.assets and will consider expected future changes in macroeconomic conditions.
 • Eliminates existing guidance for PCI loans, and requires recognition of the nonaccretable difference as an increase to the allowance for expected credit losses on financial assets purchased with more than insignificant credit deterioration since origination.origination, which will be offset by an increase in the recorded investment of the related loans.
 • Requires inclusion of expected recoveries, limited to the cumulative amount of prior write-offs, when estimating the allowance for credit losses for in scope financial assets (including collateral dependent assets).
 • Amends existing impairment guidance for AFS securities to incorporate an allowance, which will allow for reversals of credit impairments in the event that the credit of an issuer improves.
 • Requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption.

 
 • Required effective date: January 1, 2020.(a)
 • The Firm has established a Firmwide, cross-discipline governance structure, which provides implementation oversight. The Firm continues to identify key interpretive issues,test and is in the process of developing and implementingrefine its current expected credit loss models that satisfy the requirements of the new standard. Oversight and testing, as well as efforts to meet expanded disclosure requirements, will extend through the remainder of 2019.  
•
The Firm expects that the new guidance will result in an increase in its allowance for credit losses due to several factors, including:
1. The allowance related to the Firm’s loans and commitments will increase toas it will cover credit losses over the full remaining expected life of the portfolio,portfolios. The Firm currently intends to estimate losses over a two-year forecast period using the weighted-average of a range of macroeconomic scenarios (established on a Firmwide basis), and will consider expected future changes in macroeconomic conditionsthen revert to longer term historical loss experience to estimate losses over more extended periods.
2.
•
The nonaccretable difference on PCI loans will be recognized as an allowance, which will be offset by an increase in the carrying value of the related loans
3. An allowance will be established for estimated credit losses on non-agency HTM securities
 • The extent ofFirm currently expects the increase in the allowance to be in the range of $4-6 billion, primarily driven by Card. This estimate is under evaluation, butsubject to further refinement based on continuing reviews and approvals of models, methodologies and judgments. The ultimate impact will depend upon the nature and characteristics of the Firm’s portfolio at the adoption date, and the macroeconomic conditions and forecasts at that date.date, and other management judgments.
•
The Firm plans to adopt the new guidance on January 1, 2020.
Goodwill
Issued January 2017
 
 • Requires an impairment loss to be recognized when the estimated fair value of a reporting unit falls below its carrying value.
 • Eliminates the second condition in the current guidance that requires an impairment loss to be recognized only if the estimated implied fair value of the goodwill is below its carrying value.
 
 • Required effective date: January 1, 2020.(a)
 • Based on current impairment test results, the Firm does not expect a material effect on the Consolidated Financial Statements. However, the impact of the new accounting guidance will depend on the performance of the reporting units and the market conditions at the time of adoption.
 • After adoption, the guidance may result in more frequent goodwill impairment losses due to the removal of the second condition.
 • The Firm plans to adopt the new guidance on January 1, 2020.
(a)Early adoption is permitted.



FORWARD-LOOKING STATEMENTS
From time to time, the Firm has made and will make forward-looking statements. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as “anticipate,” “target,” “expect,” “estimate,” “intend,” “plan,” “goal,” “believe,” or other words of similar meaning. Forward-looking statements provide JPMorgan Chase’s current expectations or forecasts of future events, circumstances, results or aspirations. JPMorgan Chase’s disclosures in this Form 10-Q contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Firm also may make forward-looking statements in its other documents filed or furnished with the SEC. In addition, the Firm’s senior management may make forward-looking statements orally to investors, analysts, representatives of the media and others.
All forward-looking statements are, by their nature, subject to risks and uncertainties, many of which are beyond the Firm’s control. JPMorgan Chase’s actual future results may differ materially from those set forth in its forward-looking statements. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ from those in the forward-looking statements:
Local, regional and global business, economic and political conditions and geopolitical events;
Changes in laws and regulatory requirements, including capital and liquidity requirements affecting the Firm’s businesses, and the ability of the Firm to address those requirements;
Heightened regulatory and governmental oversight and scrutiny of JPMorgan Chase’s business practices, including dealings with retail customers;
Changes in trade, monetary and fiscal policies and laws;
Changes in income tax laws and regulations;
Securities and capital markets behavior, including changes in market liquidity and volatility;
Changes in investor sentiment or consumer spending or savings behavior;
Ability of the Firm to manage effectively its capital and liquidity, including approval of its capital plans by banking regulators;
Changes in credit ratings assigned to the Firm or its subsidiaries;
Damage to the Firm’s reputation;
Ability of the Firm to appropriately address social and environmental concerns that may arise from its business activities;
Ability of the Firm to deal effectively with an economic slowdown or other economic or market disruption;
Technology changes instituted by the Firm, its counterparties or competitors;
The successeffectiveness of the Firm’s business simplification initiatives and the effectiveness of its control agenda;
Ability of the Firm to develop newor discontinue products and services, and the extent to which products or services previously sold by the Firm (including but not limited to mortgages and asset-backed securities) require the Firm to incur liabilities or absorb losses not contemplated at their initiation or origination;
Acceptance of the Firm’s new and existing products and services by the marketplace and the ability of the Firm to innovate and to increase market share;
Ability of the Firm to attract and retain qualified employees;
Ability of the Firm to control expenses;
Competitive pressures;
Changes in the credit quality of the Firm’s customers and counterparties;
Adequacy of the Firm’s risk management framework, disclosure controls and procedures and internal control over financial reporting;
Adverse judicial or regulatory proceedings;
Changes in applicable accounting policies, including the introduction of new accounting standards;
Ability of the Firm to determine accurate values of certain assets and liabilities;
Occurrence of natural or man-made disasters or calamities or conflicts and the Firm’s ability to deal effectively with disruptions caused by the foregoing;
Ability of the Firm to maintain the security of its financial, accounting, technology, data processing and other operational systems and facilities;
Ability of the Firm to withstand disruptions that may be caused by any failure of its operational systems or those of third parties;
Ability of the Firm to effectively defend itself against cyberattacks and other attempts by unauthorized parties to access information of the Firm or its customers or to disrupt the Firm’s systems; and
The other risks and uncertainties detailed in Part I,
Item 1A: Risk Factors in JPMorgan Chase’s 2017 Annual Report on2018 Form 10-K for the year ended December 31, 2017.10-K.
Any forward-looking statements made by or on behalf of the Firm speak only as of the date they are made, and JPMorgan Chase does not undertake to update any forward-looking statements. The reader should, however, consult any further disclosures of a forward-looking nature the Firm may make in any subsequent Annual Reports on Form 10-K, Quarterly Reports on10-Ks, Form 10-Q,10-Qs, or Current Reports on Form 8-K.




JPMorgan Chase & Co.
Consolidated statements of income (unaudited)
  Three months ended
June 30,		 Six months ended
June 30,
(in millions, except per share data) 2019
 2018
 2019
 2018
Revenue        
Investment banking fees $1,851
 $2,168
 $3,691
 $3,904
Principal transactions 3,714
 3,782
 7,790
 7,734
Lending- and deposit-related fees 1,535
 1,495
 3,017
 2,972
Asset management, administration and commissions 4,353
 4,304
 8,467
 8,613
Investment securities gains/(losses) 44
 (80) 57
 (325)
Mortgage fees and related income 279
 324
 675
 789
Card income 1,366
 1,020
 2,640
 2,295
Other income 1,292
 1,255
 2,767
 2,881
Noninterest revenue 14,434
 14,268
 29,104
 28,863
Interest income (a)
 21,603
 18,566
 42,992
 36,060
Interest expense (a)
 7,205
 5,081
 14,141
 9,263
Net interest income 14,398
 13,485
 28,851
 26,797
Total net revenue 28,832
 27,753
 57,955
 55,660
         
Provision for credit losses 1,149
 1,210
 2,644
 2,375
         
Noninterest expense        
Compensation expense 8,547
 8,338
 17,484
 17,200
Occupancy expense 1,060
 981
 2,128
 1,869
Technology, communications and equipment expense 2,378
 2,168
 4,742
 4,222
Professional and outside services 2,212
 2,126
 4,251
 4,247
Marketing 862
 798
 1,741
 1,598
Other expense 1,282
 1,560
 2,390
 2,915
Total noninterest expense 16,341
 15,971
 32,736
 32,051
Income before income tax expense 11,342
 10,572
 22,575
 21,234
Income tax expense 1,690
 2,256
 3,744
 4,206
Net income $9,652
 $8,316
 $18,831
 $17,028
Net income applicable to common stockholders $9,192
 $7,880
 $17,945
 $16,119
Net income per common share data        
Basic earnings per share $2.83
 $2.31
 $5.48
 $4.69
Diluted earnings per share 2.82
 2.29
 5.46
 4.66
         
Weighted-average basic shares 3,250.6
 3,415.2
 3,274.3
 3,436.7
Weighted-average diluted shares 3,259.7
 3,434.7
 3,283.9
 3,457.1


(a)In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect on net interest income. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation. For additional information, refer to Note 6.
  Three months ended
June 30,		 Six months ended
June 30,
(in millions, except per share data) 2018
 2017
 2018
 2017
Revenue        
Investment banking fees $2,168
 $1,846
 $3,904
 $3,726
Principal transactions 3,782
 3,137
 7,734
 6,719
Lending- and deposit-related fees 1,495
 1,482
 2,972
 2,930
Asset management, administration and commissions 4,304
 4,047
 8,613
 7,924
Investment securities losses (80) (34) (325) (37)
Mortgage fees and related income 324
 404
 789
 810
Card income 1,020
 1,167
 2,295
 2,081
Other income 1,255
 1,474
 2,881
 2,245
Noninterest revenue 14,268
 13,523
 28,863
 26,398
Interest income 18,869
 15,650
 36,564
 30,692
Interest expense 5,384
 3,442
 9,767
 6,420
Net interest income 13,485
 12,208
 26,797
 24,272
Total net revenue 27,753
 25,731
 55,660
 50,670
         
Provision for credit losses 1,210
 1,215
 2,375
 2,530
         
Noninterest expense        
Compensation expense 8,338
 7,757
 17,200
 16,013
Occupancy expense 981
 912
 1,869
 1,873
Technology, communications and equipment expense 2,168
 1,871
 4,222
 3,705
Professional and outside services 2,126
 1,899
 4,247
 3,691
Marketing 798
 756
 1,598
 1,469
Other expense 1,560
 1,572
 2,915
 3,299
Total noninterest expense 15,971
 14,767
 32,051
 30,050
Income before income tax expense 10,572
 9,749
 21,234
 18,090
Income tax expense 2,256
 2,720
 4,206
 4,613
Net income $8,316
 $7,029
 $17,028
 $13,477
Net income applicable to common stockholders $7,880
 $6,555
 $16,119
 $12,531
Net income per common share data        
Basic earnings per share $2.31
 $1.83
 $4.69
 $3.49
Diluted earnings per share 2.29
 1.82
 4.66
 3.47
         
Weighted-average basic shares 3,415.2
 3,574.1
 3,436.7
 3,587.9
Weighted-average diluted shares 3,434.7
 3,599.0
 3,457.1
 3,614.7
Cash dividends declared per common share $0.56
 $0.50
 $1.12
 $1.00
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. For additional information, refer to Note 1.
The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.








JPMorgan Chase & Co.
Consolidated statements of comprehensive income (unaudited)
  Three months ended
June 30,		 Six months ended
June 30,
(in millions) 2019
 2018
 2019
 2018
Net income $9,652
 $8,316
 $18,831
 $17,028
Other comprehensive income/(loss), after–tax        
Unrealized gains/(losses) on investment securities 1,093
 (227) 2,507
 (1,461)
Translation adjustments, net of hedges 99
 88
 75
 115
Fair value hedges 86
 (68) 88
 (108)
Cash flow hedges 97
 (166) 235
 (239)
Defined benefit pension and OPEB plans 41
 38
 77
 59
DVA on fair value option elected liabilities 256
 260
 (361) 527
Total other comprehensive income/(loss), after–tax 1,672
 (75) 2,621
 (1,107)
Comprehensive income $11,324
 $8,241
 $21,452
 $15,921
  Three months ended
June 30,		 Six months ended
June 30,
(in millions) 2018
 2017
 2018
 2017
Net income $8,316
 $7,029
 $17,028
 $13,477
Other comprehensive income/(loss), after–tax        
Unrealized gains/(losses) on investment securities (227) 457
 (1,461) 695
Translation adjustments, net of hedges 88
 —
 115
 7
Fair value hedges (68) NA
 (108) NA
Cash flow hedges (166) 53
 (239) 144
Defined benefit pension and OPEB plans 38
 19
 59
 4
DVA on fair value option elected liabilities 260
 2
 527
 (67)
Total other comprehensive income/(loss), after–tax (75) 531
 (1,107) 783
Comprehensive income $8,241
 $7,560
 $15,921
 $14,260
Effective January 1, 2018, the Firm adopted several new accounting standards. For additional information, refer to Note 1.
The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.




JPMorgan Chase & Co.
Consolidated balance sheets (unaudited)
(in millions, except share data)June 30, 2019 December 31, 2018
Assets   
Cash and due from banks$23,164
 $22,324
Deposits with banks244,874
 256,469
Federal funds sold and securities purchased under resale agreements (included $13,982 and $13,235 at fair value)
267,864
 321,588
Securities borrowed (included $5,685 and $5,105 at fair value)
130,661
 111,995
Trading assets (included assets pledged of $141,563 and $89,073)
523,373
 413,714
Investment securities (included $276,357 and $230,394 at fair value and assets pledged of $10,654 and $11,432)
307,264
 261,828
Loans (included $4,309 and $3,151 at fair value)
956,889
 984,554
Allowance for loan losses(13,166) (13,445)
Loans, net of allowance for loan losses943,723
 971,109
Accrued interest and accounts receivable88,399
 73,200
Premises and equipment24,665
 14,934
Goodwill, MSRs and other intangible assets53,302
 54,349
Other assets (included $9,544 and $9,630 at fair value and assets pledged of $2,753 and $3,457)
120,090
 121,022
Total assets(a)
$2,727,379
 $2,622,532
Liabilities   
Deposits (included $32,924 and $23,217 at fair value)
$1,524,361
 $1,470,666
Federal funds purchased and securities loaned or sold under repurchase agreements (included $981 and $935 at fair value)
201,683
 182,320
Short-term borrowings (included $7,736 and $7,130 at fair value)
59,890
 69,276
Trading liabilities147,639
 144,773
Accounts payable and other liabilities (included $2,873 and $3,269 at fair value)
216,137
 196,710
Beneficial interests issued by consolidated VIEs (included $0 and $28 at fair value)
25,585
 20,241
Long-term debt (included $67,828 and $54,886 at fair value)
288,869
 282,031
Total liabilities(a)
2,464,164
 2,366,017
Commitments and contingencies (refer to Notes 22, 23 and 24)


 


Stockholders’ equity   
Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,699,250 and 2,606,750 shares)
26,993
 26,068
Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)
4,105
 4,105
Additional paid-in capital88,359
 89,162
Retained earnings212,093
 199,202
Accumulated other comprehensive income/(loss)1,114
 (1,507)
Shares held in restricted stock units (“RSU”) Trust, at cost (472,953 shares)(21) (21)
Treasury stock, at cost (907,448,906 and 829,167,674 shares)
(69,428) (60,494)
Total stockholders’ equity263,215
 256,515
Total liabilities and stockholders’ equity$2,727,379
 $2,622,532
(in millions, except share data)Jun 30, 2018 Dec 31, 2017
Assets   
Cash and due from banks$23,680
 $25,898
Deposits with banks381,500
 405,406
Federal funds sold and securities purchased under resale agreements (included $12,793 and $14,732 at fair value)
226,505
 198,422
Securities borrowed (included $4,052 and $3,049 at fair value)
108,246
 105,112
Trading assets (included assets pledged of $121,495 and $109,887)
418,799
 381,844
Investment securities (included $202,009 and $202,225 at fair value and assets pledged of $13,307 and $17,969)
233,015
 249,958
Loans (included $3,076 and $2,508 at fair value)
948,414
 930,697
Allowance for loan losses(13,250) (13,604)
Loans, net of allowance for loan losses935,164
 917,093
Accrued interest and accounts receivable75,669
 67,729
Premises and equipment14,132
 14,159
Goodwill, MSRs and other intangible assets54,535
 54,392
Other assets (included $13,869 and $16,128 at fair value and assets pledged of $5,559 and $7,980)
118,805
 113,587
Total assets(a)
$2,590,050
 $2,533,600
Liabilities   
Deposits (included $19,696 and $21,321 at fair value)
$1,452,122
 $1,443,982
Federal funds purchased and securities loaned or sold under repurchase agreements (included $866 and $697 at fair value)
175,293
 158,916
Short-term borrowings (included $8,730 and $9,191 at fair value)
63,918
 51,802
Trading liabilities149,838
 123,663
Accounts payable and other liabilities (included $6,633 and $9,208 at fair value)
196,984
 189,383
Beneficial interests issued by consolidated VIEs (included $1 and $45 at fair value)
21,323
 26,081
Long-term debt (included $50,096 and $47,519 at fair value)
273,114
 284,080
Total liabilities(a)
2,332,592
 2,277,907
Commitments and contingencies (refer to Notes 20, 21 and 22)

 

Stockholders’ equity   
Preferred stock ($1 par value; authorized 200,000,000 shares; issued 2,606,750 shares)
26,068
 26,068
Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)
4,105
 4,105
Additional paid-in capital89,392
 90,579
Retained earnings189,881
 177,676
Accumulated other comprehensive loss(1,138) (119)
Shares held in restricted stock units (“RSU”) Trust, at cost (472,953 shares)
(21) (21)
Treasury stock, at cost (744,049,788 and 679,635,064 shares)
(50,829) (42,595)
Total stockholders’ equity257,458
 255,693
Total liabilities and stockholders’ equity$2,590,050
 $2,533,600
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. For additional information, refer to Note 1.
(a)The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at June 30, 2018,2019, and December 31, 2017.2018. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. For a further discussion, refer to Note 13.
(in millions)June 30, 2019 December 31, 2018
Assets   
Trading assets$1,422
 $1,966
Loans53,883
 59,456
All other assets987
 1,013
Total assets$56,292
 $62,435
Liabilities   
Beneficial interests issued by consolidated VIEs$25,585
 $20,241
All other liabilities291
 312
Total liabilities$25,876
 $20,553
(in millions)Jun 30, 2018 Dec 31, 2017
Assets   
Trading assets$1,514
 $1,449
Loans58,404
 68,995
All other assets2,412
 2,674
Total assets$62,330
 $73,118
Liabilities   
Beneficial interests issued by consolidated VIEs$21,323
 $26,081
All other liabilities333
 349
Total liabilities$21,656
 $26,430
The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.


JPMorgan Chase & Co.
Consolidated statements of changes in stockholders’ equity (unaudited)
  Three months ended June 30,  Six months ended June 30, 
(in millions, except per share data) 2019
 2018
 2019
 2018
Preferred stock        
Balance at the beginning of the period $26,993
 $26,068
 $26,068
 $26,068
Issuance —
 —
 1,850
 —
Redemption —
 —
 (925) —
Balance at June 30 26,993
 26,068
 26,993
 26,068
         
Common stock        
Balance at the beginning and end of the period 4,105
 4,105
 4,105
 4,105
         
Additional paid-in capital        
Balance at the beginning of the period 88,170
 89,211
 89,162
 90,579
Shares issued and commitments to issue common stock for employee shared-based compensation awards, and related tax effects 189
 231
 (760) (1,076)
Other —
 (50) (43) (111)
Balance at June 30 88,359
 89,392
 88,359
 89,392
         
Retained earnings        
Balance at the beginning of the period 205,437
 183,855
 199,202
 177,676
Cumulative effect of changes in accounting principles —
 —
 62
 (183)
Net income 9,652
 8,316
 18,831
 17,028
Dividends declared:        
Preferred stock (404) (379) (778) (788)
Common stock ($0.80 and $0.56 per share and $1.60 and $1.12 per share, respectively)
 (2,592) (1,911) (5,224) (3,852)
Balance at June 30 212,093
 189,881
 212,093
 189,881
         
Accumulated other comprehensive income/(loss)        
Balance at the beginning of the period (558) (1,063) (1,507) (119)
Cumulative effect of changes in accounting principles —
 —
 —
 88
Other comprehensive income/(loss), after-tax 1,672
 (75) 2,621
 (1,107)
Balance at June 30 1,114
 (1,138) 1,114
 (1,138)
         
Shares held in RSU Trust, at cost        
Balance at the beginning and end of the period (21) (21) (21) (21)
         
Treasury stock, at cost        
Balance at the beginning of the period (64,289) (45,954) (60,494) (42,595)
Repurchase (5,210) (4,968) (10,301) (9,639)
Reissuance 71
 93
 1,367
 1,405
Balance at June 30 (69,428) (50,829) (69,428) (50,829)
         
Total stockholders’ equity $263,215
 $257,458
 $263,215
 $257,458

  Six months ended June 30,
(in millions, except per share data) 2018
 2017
Preferred stock    
Balance at January 1 and June 30 $26,068
 $26,068
Common stock    
Balance at January 1 and June 30 4,105
 4,105
Additional paid-in capital    
Balance at January 1 90,579
 91,627
Shares issued and commitments to issue common stock for employee shared-based compensation awards, and related tax effects (1,076) (865)
Other (111) (158)
Balance at June 30 89,392
 90,604
Retained earnings    
Balance at January 1 177,676
 162,440
Cumulative effect of changes in accounting principles (183) —
Net income 17,028
 13,477
Dividends declared:    
Preferred stock (788) (823)
Common stock ($1.12 and $1.00 per share)
 (3,852) (3,606)
Balance at June 30 189,881
 171,488
Accumulated other comprehensive income/(loss)    
Balance at January 1 (119) (1,175)
Cumulative effect of changes in accounting principles 88
 —
Other comprehensive income/(loss) (1,107) 783
Balance at June 30 (1,138) (392)
Shares held in RSU Trust, at cost    
Balance at January 1 and June 30 (21) (21)
Treasury stock, at cost    
Balance at January 1 (42,595) (28,854)
Repurchase (9,639) (5,839)
Reissuance 1,405
 1,324
Balance at June 30 (50,829) (33,369)
Total stockholders’ equity $257,458
 $258,483
Effective January 1, 2018, the Firm adopted several new accounting standards. For additional information, refer to Note 1.
The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.




JPMorgan Chase & Co.
Consolidated statements of cash flows (unaudited)
 Six months ended June 30,
(in millions)2019
 2018
Operating activities   
Net income$18,831
 $17,028
Adjustments to reconcile net income to net cash used in operating activities:   
Provision for credit losses2,644
 2,375
Depreciation and amortization4,084
 3,724
Deferred tax (benefit)/expense(42) (216)
Other1,164
 1,611
Originations and purchases of loans held-for-sale(35,908) (43,141)
Proceeds from sales, securitizations and paydowns of loans held-for-sale44,995
 41,657
Net change in:   
Trading assets(111,562) (42,859)
Securities borrowed(18,586) (3,132)
Accrued interest and accounts receivable(15,416) (8,083)
Other assets(10,146) (716)
Trading liabilities12,765
 21,997
Accounts payable and other liabilities8,790
 12,574
Other operating adjustments3,653
 (2,243)
Net cash provided by/(used in) operating activities(94,734) 576
Investing activities   
Net change in:   
Federal funds sold and securities purchased under resale agreements53,757
 (28,109)
Held-to-maturity securities:   
Proceeds from paydowns and maturities1,315
 1,458
Purchases(818) (7,426)
Available-for-sale securities:   
Proceeds from paydowns and maturities30,547
 19,718
Proceeds from sales35,983
 25,228
Purchases(106,085) (27,453)
Proceeds from sales and securitizations of loans held-for-investment31,291
 12,963
Other changes in loans, net(16,903) (33,441)
All other investing activities, net(1,663) (1,912)
Net cash provided by/(used in) investing activities27,424
 (38,974)
Financing activities   
Net change in:   
Deposits62,795
 10,100
Federal funds purchased and securities loaned or sold under repurchase agreements19,343
 16,396
Short-term borrowings(9,907) 12,151
Beneficial interests issued by consolidated VIEs9,346
 (165)
Proceeds from long-term borrowings29,159
 41,166
Payments of long-term borrowings(38,384) (50,171)
Proceeds from issuance of preferred stock1,850
 —
Redemption of preferred stock(925) —
Treasury stock repurchased(10,301) (9,639)
Dividends paid(6,081) (4,716)
All other financing activities, net(426) (1,356)
Net cash provided by financing activities56,469
 13,766
Effect of exchange rate changes on cash and due from banks and deposits with banks86
 (1,492)
Net decrease in cash and due from banks and deposits with banks(10,755) (26,124)
Cash and due from banks and deposits with banks at the beginning of the period278,793
 431,304
Cash and due from banks and deposits with banks at the end of the period$268,038
 $405,180
Cash interest paid$13,794
 $9,151
Cash income taxes paid, net2,892
 3,906

 Six months ended June 30,
(in millions)2018
 2017
Operating activities   
Net income$17,028
 $13,477
Adjustments to reconcile net income to net cash used in operating activities:   
Provision for credit losses2,375
 2,530
Depreciation and amortization3,724
 2,968
Deferred tax (benefit)/expense(216) (161)
Other1,611
 1,163
Originations and purchases of loans held-for-sale(43,141) (58,119)
Proceeds from sales, securitizations and paydowns of loans held-for-sale41,657
 53,053
Net change in:   
Trading assets(42,859) (22,914)
Securities borrowed(3,132) 5,845
Accrued interest and accounts receivable(8,083) (11,940)
Other assets(716) 11,212
Trading liabilities21,997
 (12,827)
Accounts payable and other liabilities12,574
 (10,497)
Other operating adjustments(2,243) 7,724
Net cash provided by/(used in) operating activities576
 (18,486)
Investing activities   
Net change in:   
Federal funds sold and securities purchased under resale agreements(28,109) 11,364
Held-to-maturity securities:   
Proceeds from paydowns and maturities1,458
 2,289
Purchases(7,426) —
Available-for-sale securities:   
Proceeds from paydowns and maturities19,718
 29,481
Proceeds from sales25,228
 42,972
Purchases(27,453) (45,613)
Proceeds from sales and securitizations of loans held-for-investment12,963
 7,762
Other changes in loans, net(33,441) (24,266)
All other investing activities, net(1,912) 550
Net cash provided by/(used in) investing activities(38,974) 24,539
Financing activities   
Net change in:   
Deposits10,100
 53,122
Federal funds purchased and securities loaned or sold under repurchase agreements16,396
 (43)
Short-term borrowings12,151
 18,222
Beneficial interests issued by consolidated VIEs(165) (1,067)
Proceeds from long-term borrowings41,166
 35,530
Payments of long-term borrowings(50,171) (47,743)
Treasury stock repurchased(9,639) (5,839)
Dividends paid(4,716) (4,386)
All other financing activities, net(1,356) 115
Net cash provided by financing activities13,766
 47,911
Effect of exchange rate changes on cash and due from banks and deposits with banks(1,492) 5,408
Net increase/(decrease) in cash and due from banks and deposits with banks(26,124) 59,372
Cash and due from banks and deposits with banks at the beginning of the period431,304
 391,154
Cash and due from banks and deposits with banks at the end of the period$405,180
 $450,526
Cash interest paid$9,151
 $6,322
Cash income taxes paid, net3,906
 1,736
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. For additional information, refer to Note 1.
The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.


Refer to the Glossary of Terms and Acronyms on pages 172–176168–172 for definitions of terms and acronyms used throughout the Notes to Consolidated Financial Statements.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
Note 1 – Basis of presentation
JPMorgan Chase & Co. (“JPMorgan Chase” or “the Firm”), a financial holding company incorporated under Delaware law in 1968, is a leading global financial services firm and one of the largest banking institutions in the U.S., with operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. For a further discussion of the Firm’s business segments, refer to Note 23.25.
The accounting and financial reporting policies of JPMorgan Chase and its subsidiaries conform to U.S. GAAP. Additionally, where applicable, the policies conform to the accounting and reporting guidelines prescribed by regulatory authorities.
The unaudited Consolidated Financial Statements prepared in conformity with U.S. GAAP require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expense, and the disclosures of contingent assets and liabilities. Actual results could be different from these estimates. In the opinion of management, all normal, recurring adjustments have been included such that this interim financial information is fairly presented.
These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, and related notes thereto, included in JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Certain amounts reported in prior periods have been reclassified to conform with the current presentation.
Consolidation
The Consolidated Financial Statements include the accounts of JPMorgan Chase and other entities in which the Firm has a controlling financial interest. All material intercompany balances and transactions have been eliminated.
Assets held for clients in an agency or fiduciary capacity by the Firm are not assets of JPMorgan Chase and are not included on the Consolidated balance sheets.
The Firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity.
For a further description of JPMorgan Chase’s accounting policies regarding consolidation, refer to Notes 1 and 14 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Offsetting assets and liabilities
U.S. GAAP permits entities to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net
basis on the Consolidated balance sheets when a legally enforceable master netting agreement exists. U.S. GAAP also permits securities financing activities to be presented on a net basis when specified conditions are met, including the existence of a legally enforceable master netting agreement. The Firm has elected to net such balances when the specified conditions are met. For further information on offsetting assets and liabilities, refer to Note 1 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Application of U.S. GAAP related to the Tax CutsIncome tax expense
The Firm’s effective tax rate was 14.9% and Jobs Act (“TCJA”) SEC Staff Accounting Bulletin No. 118
On December 22, 2017, the TCJA was signed into law and the Firm recorded the estimated impact of the deemed repatriation of the Firm’s unremitted non-U.S. earnings and the remeasurement of deferred taxes under the TCJA. These provisional amounts represent estimates under SEC guidance, which provides a one-year measurement period16.6% in which to refine the estimates based on new information or the issuance of interpretative guidance. Based on legislative clarifications published during the second quarter of 2018, which were specific to the deemed repatriation tax on non-U.S. earnings, the Firm recorded a tax benefit of $189 million. The Firm has made and continues to anticipate refinements to both calculations as a result of the issuance of additional legislative and accounting guidance as well as those in the normal course of business, including true-ups to the tax liability on the tax return as filed and the resolution of tax audits. The Firm considers any legislative or accounting guidance issued as of the balance sheet date when evaluating potential refinements to these estimates.









Accounting standards adopted January 1, 2018
The following table identifies the standards adopted, and the note where further information on the impact of the new guidance can be found:
Revenue recognition – revenue from contracts with customersNote 5
Recognition and measurement of financial assets and financial liabilitiesNotes 2 and 9
Treatment of restricted cash on the statement of cash flowsNote 18
Presentation of net periodic pension cost and net periodic postretirement benefit costNote 7
Premium amortization on purchased callable debt securitiesNotes 9 and 17
Hedge accountingNotes 4, 9 and 17
Reclassification of certain tax effects from AOCINote 17
Certain of the new accounting standards were applied retrospectively and prior period amounts were revised accordingly. The most significant of the new standards was revenue recognition, which requires gross presentation of certain costs that were previously offset against revenue. This change resulted in noninterest revenue and noninterest expense each increasing by $261 million and $525 million for the three and six months ended June 30, 2017,2019, respectively, with no impactand 21.3% and 19.8% in the respective 2018 periods. The effective tax rate reflects the recognition of tax benefits related to net income.
Upon adoptionthe resolution of the restricted cash guidance, to align the Consolidated balance sheets with the Consolidated statementscertain tax audits of cash flows, the Firm reclassified restricted cash into cash and due from banks or deposits with banks. In addition, for the Firm’sConsolidated statements of cash flows, cash is defined as those amounts included in cash and due from banks and deposits with banks. This guidance was applied retrospectively and, accordingly, prior period amounts have been revised, resulting in cash and due from banks and deposits with banks increasing by $71$768 million and $1.1 billion,$874 million, in the three and six months ended June 30, 2019, respectively, which reduced the Firm’s effective tax rate by 6.8% and other assets decreasing by $1.2 billion at December 31, 2017.3.9% respectively. For further information, refer to Note 24 of JPMorgan Chase’s 2018 Form 10-K.


Note 2 – Fair value measurement
For a discussion of the Firm’s valuation methodologies for assets, liabilities and lending-related commitments measured at fair value and the fair value hierarchy, refer to Note 2 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.




The following table presents the assets and liabilities reported at fair value as of June 30, 2018,2019, and December 31, 2017, 2018, by major product category and fair value hierarchy.hierarchy.
Assets and liabilities measured at fair value on a recurring basisAssets and liabilities measured at fair value on a recurring basis




Assets and liabilities measured at fair value on a recurring basis





Fair value hierarchy
Derivative
netting
adjustments
Fair value hierarchy
Derivative
netting
adjustments(f)

          
June 30, 2018 (in millions)Level 1Level 2
Level 3
Total fair value
June 30, 2019 (in millions)Level 1Level 2
Level 3
Derivative
netting
adjustments(f)
Total fair value
Federal funds sold and securities purchased under resale agreements$—
$12,793

$—

$—
$12,793
$—
$13,982

$—

$13,982
Securities borrowed—
4,052

—

—
4,052
—
5,685

—

5,685
Trading assets:























Debt instruments:























Mortgage-backed securities:























U.S. government agencies(a)
—
37,805

478

—
38,283
—
104,186

617

—
104,803
Residential – nonagency—
2,001

87

—
2,088
—
2,102

42

—
2,144
Commercial – nonagency—
1,299

18

—
1,317
—
1,708

9

—
1,717
Total mortgage-backed securities—
41,105

583

—
41,688
—
107,996

668

—
108,664
U.S. Treasury and government agencies(a)
38,363
9,192

—

—
47,555
88,502
9,712

—

—
98,214
Obligations of U.S. states and municipalities—
8,465

736

—
9,201
—
6,628

680

—
7,308
Certificates of deposit, bankers’ acceptances and commercial paper—
2,095
 —
 —
2,095
—
1,492
 —
 —
1,492
Non-U.S. government debt securities34,787
31,647
 183
 —
66,617
34,840
31,353
 190
 —
66,383
Corporate debt securities—
24,571
 274
 —
24,845
—
22,140
 562
 —
22,702
Loans(b)
—
43,891
 1,986
 —
45,877
—
42,180
 1,778
 —
43,958
Asset-backed securities—
3,002
 87
 —
3,089
—
2,643
 33
 —
2,676
Total debt instruments73,150
163,968
 3,849
 —
240,967
123,342
224,144
 3,911
 —
351,397
Equity securities98,142
485
 288
 —
98,915
98,234
456
 147
 —
98,837
Physical commodities(c)
5,136
1,542
 —
 —
6,678
3,692
3,339
 —
 —
7,031
Other—
13,273
 406
 —
13,679
—
12,874
 311
 —
13,185
Total debt and equity instruments(d)
176,428
179,268
 4,543
 —
360,239
225,268
240,813
 4,369
 —
470,450
Derivative receivables:          
Interest rate528
278,652
 1,831
 (258,040)22,971
1,529
331,329
 1,698
 (308,068)26,488
Credit—
19,917
 1,017
 (20,310)624
—
14,971
 694
 (15,032)633
Foreign exchange1,497
194,169
 806
 (179,709)16,763
2,170
141,248
 682
 (133,437)10,663
Equity—
41,798
 3,167
 (34,789)10,176
—
41,997
 2,933
 (35,725)9,205
Commodity—
21,702
 166
 (13,892)7,976
—
16,663
 208
 (10,982)5,889
Total derivative receivables(e)
2,025
556,238
 6,987
 (506,740)58,510
3,699
546,208
 6,215
 (503,244)52,878
Total trading assets(f)(e)
178,453
735,506
 11,530
 (506,740)418,749
228,967
787,021
 10,584
 (503,244)523,328
Available-for-sale securities:          
Mortgage-backed securities:          
U.S. government agencies(a)
—
61,922
 —
 —
61,922
—
96,616
 —
 —
96,616
Residential – nonagency—
9,679
 1
 —
9,680
—
12,740
 —
 —
12,740
Commercial – nonagency—
7,827
 —
 —
7,827
—
5,989
 —
 —
5,989
Total mortgage-backed securities—
79,428
 1
 —
79,429
—
115,345
 —
 —
115,345
U.S. Treasury and government agencies25,344
—
 —
 —
25,344
73,990
—
 —
 —
73,990
Obligations of U.S. states and municipalities—
39,330
 —
 —
39,330
—
31,901
 —
 —
31,901
Certificates of deposit—
75
 —
 —
75
—
74
 —
 —
74
Non-U.S. government debt securities17,359
8,327
 —
 —
25,686
14,869
7,623
 —
 —
22,492
Corporate debt securities—
2,133
 —
 —
2,133
—
1,778
 —
 —
1,778
Asset-backed securities:          
Collateralized loan obligations—
20,999
 147
 —
21,146
—
24,781
 —
 —
24,781
Other—
8,866
 —
 —
8,866
—
5,996
 —
 —
5,996
Total available-for-sale securities42,703
159,158
 148
 —
202,009
88,859
187,498
 —
 —
276,357
Loans—
2,917
 159
 —
3,076
—
4,304
 5
 —
4,309
Mortgage servicing rights—
—
 6,241
 —
6,241
—
—
 5,093
 —
5,093
Other assets(g)(e)
11,873
57
 1,225
 —
13,155
7,784
198
 861
 —
8,843
Total assets measured at fair value on a recurring basis$233,029
$914,483
 $19,303
 $(506,740)$660,075
$325,610
$998,688
 $16,543
 $(503,244)$837,597
Deposits$—
$15,391
 $4,305
 $—
$19,696
$—
$28,858
 $4,066
 $—
$32,924
Federal funds purchased and securities loaned or sold under repurchase agreements—
866
 —
 —
866
—
981
 —
 —
981
Short-term borrowings—
6,521
 2,209
 —
8,730
—
5,684
 2,052
 —
7,736
Trading liabilities:     

     

Debt and equity instruments(d)
82,507
24,777
 43
 —
107,327
84,236
21,879
 45
 —
106,160
Derivative payables:     

     

Interest rate561
252,080
 1,342
 (245,368)8,615
2,090
296,717
 2,242
 (292,166)8,883
Credit—
19,737
 1,041
 (19,276)1,502
—
16,305
 926
 (14,975)2,256
Foreign exchange1,539
184,977
 1,051
 (175,046)12,521
2,438
144,304
 875
 (136,491)11,126
Equity—
42,639
 5,745
 (36,902)11,482
—
42,205
 5,493
 (36,521)11,177
Commodity—
22,232
 918
 (14,759)8,391
—
18,238
 1,116
 (11,317)8,037
Total derivative payables(e)
2,100
521,665
 10,097
 (491,351)42,511
4,528
517,769
 10,652
 (491,470)41,479
Total trading liabilities84,607
546,442
 10,140
 (491,351)149,838
88,764
539,648
 10,697
 (491,470)147,639
Accounts payable and other liabilities6,568
57
 8
 —
6,633
2,583
198
 92
 —
2,873
Beneficial interests issued by consolidated VIEs—
—
 1
 —
1
—
—
 —
 —
—
Long-term debt—
31,834
 18,262
 —
50,096
—
45,965
 21,863
 —
67,828
Total liabilities measured at fair value on a recurring basis$91,175
$601,111
 $34,925
 $(491,351)$235,860
$91,347
$621,334
 $38,770
 $(491,470)$259,981





Fair value hierarchy
Derivative
netting
adjustments		 
Fair value hierarchy
Derivative
netting
adjustments(f)
 
          
December 31, 2017 (in millions)Level 1
Level 2

Level 3

 Total fair value
December 31, 2018 (in millions)Level 1Level 2
Level 3
Derivative
netting
adjustments(f)
 Total fair value
Federal funds sold and securities purchased under resale agreements$—
$14,732

$—

$—
 $14,732
$—
$13,235

$—

 $13,235
Securities borrowed—
3,049

—

—
 3,049
—
5,105

—

 5,105
Trading assets: 
 
    
 
   
Debt instruments: 
 
    
 
   
Mortgage-backed securities: 
 
    
 
   
U.S. government agencies(a)
—
41,515

307

—
 41,822
—
76,249

549

—
 76,798
Residential – nonagency—
1,835

60

—
 1,895
—
1,798

64

—
 1,862
Commercial – nonagency—
1,645

11

—
 1,656
—
1,501

11

—
 1,512
Total mortgage-backed securities—
44,995

378

—
 45,373
—
79,548

624

—
 80,172
U.S. Treasury and government agencies(a)
30,758
6,475

1

—
 37,234
51,477
7,702

—

—
 59,179
Obligations of U.S. states and municipalities—
9,067

744

—
 9,811
—
7,121

689

—
 7,810
Certificates of deposit, bankers’ acceptances and commercial paper—
226

—

—
 226
—
1,214

—

—
 1,214
Non-U.S. government debt securities28,887
28,831

78

—
 57,796
27,878
27,056

155

—
 55,089
Corporate debt securities—
24,146

312

—
 24,458
—
18,655

334

—
 18,989
Loans(b)
—
35,242

2,719

—
 37,961
—
40,047

1,706

—
 41,753
Asset-backed securities—
3,284

153

—
 3,437
—
2,756

127

—
 2,883
Total debt instruments59,645
152,266

4,385

—
 216,296
79,355
184,099

3,635

—
 267,089
Equity securities87,346
197

295

—
 87,838
71,119
482

232

—
 71,833
Physical commodities(c)
4,924
1,322

—

—
 6,246
5,182
1,855

—

—
 7,037
Other—
14,197

690

—
 14,887
—
13,192

301

—
 13,493
Total debt and equity instruments(d)
151,915
167,982

5,370

—
 325,267
155,656
199,628

4,168

—
 359,452
Derivative receivables: 







 

 







 

Interest rate181
314,107

1,704

(291,319) 24,673
682
266,380

1,642

(245,490) 23,214
Credit—
21,995

1,209

(22,335) 869
—
19,235

860

(19,483) 612
Foreign exchange841
158,834

557

(144,081) 16,151
771
166,238

676

(154,235) 13,450
Equity—
37,722

2,318

(32,158) 7,882
—
46,777

2,508

(39,339) 9,946
Commodity—
19,875

210

(13,137) 6,948
—
20,339

131

(13,479) 6,991
Total derivative receivables(e)
1,022
552,533

5,998

(503,030) 56,523
1,453
518,969

5,817

(472,026) 54,213
Total trading assets(f)(e)
152,937
720,515

11,368

(503,030) 381,790
157,109
718,597

9,985

(472,026) 413,665
Available-for-sale securities: 







 

 







 

Mortgage-backed securities: 







 

 







 

U.S. government agencies(a)
—
70,280

—

—
 70,280
—
68,646

—

—
 68,646
Residential – nonagency—
11,366

1

—
 11,367
—
8,519

1

—
 8,520
Commercial – nonagency—
5,025

—

—
 5,025
—
6,654

—

—
 6,654
Total mortgage-backed securities—
86,671

1

—
 86,672
—
83,819

1

—
 83,820
U.S. Treasury and government agencies22,745
—

—

—
 22,745
56,059
—

—

—
 56,059
Obligations of U.S. states and municipalities—
32,338

—

—
 32,338
—
37,723

—

—
 37,723
Certificates of deposit—
59

—

—
 59
—
75

—

—
 75
Non-U.S. government debt securities18,140
9,154

—

—
 27,294
15,313
8,789

—

—
 24,102
Corporate debt securities—
2,757

—

—
 2,757
—
1,918

—

—
 1,918
Asset-backed securities: 







 

 







 

Collateralized loan obligations—
20,720

276

—
 20,996
—
19,437

—

—
 19,437
Other—
8,817

—

—
 8,817
—
7,260

—

—
 7,260
Equity securities(g)
547
—

—

—
 547
Total available-for-sale securities41,432
160,516

277

—
 202,225
71,372
159,021

1

—
 230,394
Loans—
2,232

276

—
 2,508
—
3,029

122

—
 3,151
Mortgage servicing rights—
—

6,030

—
 6,030
—
—

6,130

—
 6,130
Other assets(f)(g)
13,795
343

1,265

—
 15,403
Other assets(e)
7,810
195

927

—
 8,932
Total assets measured at fair value on a recurring basis$208,164
$901,387

$19,216

$(503,030) $625,737
$236,291
$899,182

$17,165

$(472,026) $680,612
Deposits$—
$17,179

$4,142

$—
 $21,321
$—
$19,048

$4,169

$—
 $23,217
Federal funds purchased and securities loaned or sold under repurchase agreements—
697

—

—
 697
—
935

—

—
 935
Short-term borrowings—
7,526

1,665

—
 9,191
—
5,607

1,523

—
 7,130
Trading liabilities: 
 


 

 
 


 

Debt and equity instruments(d)
64,664
21,183

39

—
 85,886
80,199
22,755

50

—
 103,004
Derivative payables: 



    



   
Interest rate170
282,825

1,440

(277,306) 7,129
1,526
239,576

1,680

(234,998) 7,784
Credit—
22,009

1,244

(21,954) 1,299
—
19,309

967

(18,609) 1,667
Foreign exchange794
154,075

953

(143,349) 12,473
695
163,549

973

(152,432) 12,785
Equity—
39,668

5,727

(36,203) 9,192
—
46,462

4,733

(41,034) 10,161
Commodity—
21,017

884

(14,217) 7,684
—
21,158

1,260

(13,046) 9,372
Total derivative payables(e)
964
519,594

10,248

(493,029) 37,777
Total derivative payables2,221
490,054

9,613

(460,119) 41,769
Total trading liabilities65,628
540,777

10,287

(493,029) 123,663
82,420
512,809

9,663

(460,119) 144,773
Accounts payable and other liabilities9,074
121

13

—
 9,208
3,063
196

10

—
 3,269
Beneficial interests issued by consolidated VIEs—
6

39

—
 45
—
27

1

—
 28
Long-term debt—
31,394

16,125

—
 47,519
—
35,468

19,418

—
 54,886
Total liabilities measured at fair value on a recurring basis$74,702
$597,700

$32,271

$(493,029) $211,644
$85,483
$574,090

$34,784

$(460,119) $234,238
(a)At June 30, 2018,2019, and December 31, 2017,2018, included total U.S. government-sponsored enterprise obligations of $65.6$153.6 billion and $78.0$92.3 billion, respectively, which were predominantly mortgage-related.
(b)At June 30, 2018,2019, and December 31, 2017,2018, included within trading loans were $14.8$16.6 billion and $11.4$13.2 billion, respectively, of residential first-lien mortgages, and $5.6$2.8 billion and $4.2$2.3 billion, respectively, of commercial first-lien mortgages. Residential mortgage loans include conforming mortgage loans originated with the intent to sell to U.S. government agencies of $9.7$9.9 billion and $5.7$7.6 billion, respectively, and reverse mortgages of zero and $836 million respectively.
(c)Physical commodities inventories are generally accounted for at the lower of cost or net realizable value. “Net realizable value” is a term defined in U.S. GAAP as not exceeding fair value less costs to sell (“transaction costs”). Transaction costs for the Firm’s physical commodities inventories are either not applicable or immaterial to the value of the inventory. Therefore, net realizable value approximates fair value for the Firm’s physical commodities inventories. When fair value hedging has been applied (or when net realizable value is below cost), the carrying


inventories. When fair value hedging has been applied (or when net realizable value is below cost), the carrying value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in fair value. For a further discussion of the Firm’s hedge accounting relationships, refer to Note 4. To provide consistent fair value disclosure information, all physical commodities inventories have been included in each period presented.
(d)Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions).
(e)As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. For purposes of the tables above, the Firm does not reduce derivative receivables and derivative payables balances for this netting adjustment, either within or across the levels of the fair value hierarchy, as such netting is not relevant to a presentation based on the transparency of inputs to the valuation of an asset or liability. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral.
(f)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not required to be classified in the fair value hierarchy. At June 30, 2018,2019, and December 31, 2017,2018, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were $764$746 million and $779$747 million, respectively. Included in these balances at June 30, 2018,2019, and December 31, 2017,2018, were trading assets of $50$45 million and $54$49 million, respectively, and other assets of $714$701 million and $725$698 million, respectively.
(g)(f)
Effective January 1, 2018,As permitted under U.S. GAAP, the Firm adoptedhas elected to net derivative receivables and derivative payables and the recognitionrelated cash collateral received and measurement guidance. Equity securities thatpaid when a legally enforceable master netting agreement exists. The level 3 balances would be reduced if netting were previously reported as AFS securities were reclassified to other assets upon adoption.
applied, including the netting benefit associated with cash collateral.

Transfers between levels for instruments carried at fair
value on a recurring basis
For the three and six months ended June 30, 2018 and 2017 there were no individually significant transfers.
All transfers are based on changes in the observability of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur.
Level 3 valuations
For further information on the Firm’s valuation process and a detailed discussion of the determination of fair value for individual financial instruments, refer to Note 2 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The following table presents the Firm’s primary level 3 financial instruments, the valuation techniques used to measure the fair value of those financial instruments, the significant unobservable inputs, the range of values for those inputs and, for certain instruments, the weighted averages of such inputs. While the determination to classify an instrument within level 3 is based on the significance of the unobservable inputs to the overall fair value measurement, level 3 financial instruments typically include observable components (that is, components that are actively quoted and can be validated to external sources) in addition to the unobservable components. The level 1 and/or level 2 inputs are not included in the table. In addition, the Firm manages the risk of the observable components of level 3 financial instruments using securities and derivative positions that are classified within levels 1 or 2 of the fair value hierarchy.
The range of values presented in the table is representative of the highest and lowest level input used to value the significant groups of instruments within a product/instrument classification. Where provided, the weighted averages of the input values presented in the table are calculated based on the fair value of the instruments that the input is being used to value.
In the Firm’s view, the input range and the weighted average value do not reflect the degree of input uncertainty or an assessment of the reasonableness of the Firm’s estimates and assumptions. Rather, they reflect the characteristics of the various instruments held by the Firm and the relative distribution of instruments within the range of characteristics. For example, two option contracts may have
similar levels of market risk exposure and valuation uncertainty, but may have significantly different implied volatility levels because the option contracts have different underlyings, tenors, or strike prices. The input range and weighted average values will therefore vary from period-to-period and parameter-to-parameter based on the characteristics of the instruments held by the Firm at each balance sheet date.
For the Firm’s derivatives and structured notes positions classified within level 3 at June 30, 2018,2019, interest rate correlation inputs used in estimating fair value were concentrated towards the upper end of the range; equity correlation, equity-FX, and equity-IR correlation inputs were concentrated in the middle of the range; commodity correlation inputs were concentrated in the middle of the range; credit correlation inputs were concentrated towards the lower end of the range; and the interest rate-foreign exchange (“IR-FX”) correlation inputs were distributed across the range. In addition, the interest rate spread volatility inputs used in estimating fair value were distributed across the range; equity volatilities and commodity volatilities were concentrated towards the lower end of the range; and forward commodity prices used in estimating the fair value of commodity derivatives were concentrated towardsin the lower endmiddle of the range. Prepayment speed inputs used in estimating the fair value of interest rate derivatives were concentrated towards the lower end of the range. Recovery rate yield and prepayment speed inputs used in estimating the fair value of credit derivatives were distributed across the range; credit spreads and conditional default rates were concentrated towards the lower end of the range; loss severity and price inputs were concentrated towards the upper end of the range and price inputs were concentrated towards the lower end of the range.



Level 3 inputs(a)
Level 3 inputs(a)
      
Level 3 inputs(a)
      
June 30, 2018      
June 30, 2019June 30, 2019      
Product/Instrument
Fair value
(in millions)
 Principal valuation technique
Unobservable inputs(g)
Range of input valuesWeighted average 
Fair value
(in millions)
 Principal valuation technique
Unobservable inputs(g)
Range of input valuesWeighted average 
Residential mortgage-backed securities and loans(b)
$798
 Discounted cash flowsYield0 %–23% 6%$942
 Discounted cash flowsYield0 %–15% 6%
 Prepayment speed0 %–50% 8%  Prepayment speed0 %–26% 13%
  Conditional default rate0 %–20% 1%  Conditional default rate0 %–5% 1%
  Loss severity0 %–100% 6%  Loss severity0 %–70% 1%
Commercial mortgage-backed securities and loans(c)
445
 Market comparablesPrice$6
–$101
 $91
218
 Market comparablesPrice$0
–$110
 $85
Obligations of U.S. states and municipalities736
 Market comparablesPrice$59
–$100
 $97
680
 Market comparablesPrice$66
–$100
 $97
Corporate debt securities274
 Market comparablesPrice$2
–$107
 $82
562
 Market comparablesPrice$0
–$109
 $83
Loans(d)
1,486
 Market comparablesPrice$4
–$104
 $87
212
 Discounted cash flowsYield5 %–18% 7%
1,079
 Market comparablesPrice$2
–$102
 $80
Asset-backed securities147
 Discounted cash flowsCredit spread216 bps 216 bps33
 Market comparablesPrice$1
–$100
 $38
  Prepayment speed20% 20%
  Conditional default rate2% 2%
  Loss severity30% 30%
87
 Market comparablesPrice$4
–$100
 $59
Net interest rate derivatives293
 Option pricingInterest rate spread volatility16 bps–38 bps (616) Option pricingInterest rate spread volatility20 bps–30 bps 
  Interest rate correlation(50)%–97%    Interest rate correlation(28)%–96%  
  IR-FX correlation55 %–60%    IR-FX correlation45 %–60%  
196
 Discounted cash flowsPrepayment speed0 %–30%  72
 Discounted cash flowsPrepayment speed4 %–30%  
Net credit derivatives(27) Discounted cash flowsCredit correlation35 %–65%  (265) Discounted cash flowsCredit correlation35 %–60%  
  Credit spread8 bps–1,497 bps  
  Recovery rate20 %–70%  
  Yield1 %–36%    Credit spread6 bps–1,402 bps  
  Prepayment speed0 %–18%    Recovery rate20 %–70%  
  Conditional default rate0 %–93%    Conditional default rate2 %–91%  
  Loss severity0 %–100%    Loss severity100%  
3
 Market comparablesPrice$10
–$98
  33
 Market comparablesPrice$1
–$115
  
Net foreign exchange derivatives(62) Option pricingIR-FX correlation(50)%–60%  (23) Option pricingIR-FX correlation(45)%–60%  
(183) Discounted cash flowsPrepayment speed8 %–9%  (170) Discounted cash flowsPrepayment speed9%  
Net equity derivatives(2,578) Option pricingEquity volatility10 %–60%  (2,560) Option pricingEquity volatility14 %–60%  
  Equity correlation10 %–95%    Equity correlation25 %–98%  
  Equity-FX correlation(70)%–60%    Equity-FX correlation(75)%–59%  
  Equity-IR correlation20 %–40%    Equity-IR correlation20 %–60%  
Net commodity derivatives(752) Option pricingForward commodity price$52
–$ 80 per barrel(908) Option pricingForward commodity price$49
–$ 70 per barrel
  Commodity volatility5 %–53%    Commodity volatility5 %–65%  
  Commodity correlation(52)%–95%    Commodity correlation(48)%–95%  
MSRs6,241
 Discounted cash flowsRefer to Note 14  5,093
 Discounted cash flowsRefer to Note 14  
Other assets289
 Discounted cash flowsCredit spread70 bps 70 bps358
 Discounted cash flowsCredit spread45 bps  45 bps
  Yield8 %–10% 8%  Yield8 %–12% 12%
1,342
 Market comparablesPrice$35
–$104
 $46
814
 Market comparablesPrice$19
–$113
 $34
  
EBITDA multiple

3.0x
–8.4x
 8.0x
Long-term debt, short-term borrowings, and deposits(e)
24,776
 Option pricingInterest rate spread volatility16 bps–38 bps 27,981
 Option pricingInterest rate spread volatility20 bps–30 bps 
 Interest rate correlation(50)%–97%    Interest rate correlation(28)%–96%  
 IR-FX correlation(50)%–60%    IR-FX correlation(45)%–60%  
 Equity correlation10 %–95%    Equity correlation25 %–98%  
 Equity-FX correlation(70)%–60%    Equity-FX correlation(75)%–59%  
 Equity-IR correlation20 %–40%    Equity-IR correlation20 %–60%  
Other level 3 assets and liabilities, net(f)
419
      200
      
(a)The categories presented in the table have been aggregated based upon the product type, which may differ from their classification on the Consolidated balance sheets. Furthermore, the inputs presented for each valuation technique in the table are, in some cases, not applicable to every instrument valued using the technique as the characteristics of the instruments can differ.
(b)IncludesComprises U.S. government agency securities of $471$617 million, nonagency securities of $88$42 million and trading loans of $239$283 million.
(c)Includes U.S. government agency securities of $7 million,Comprises nonagency securities of $18$9 million, trading loans of $261$204 million and non-trading loans of $159$5 million.
(d)Comprises trading loans.
(e)Long-term debt, short-term borrowings and deposits include structured notes issued by the Firm that are predominantly financial instruments containingthat typically contain embedded derivatives. The estimation of the fair value of structured notes includes the derivative features embedded within the instrument. The significant unobservable inputs are broadly consistent with those presented for derivative receivables.
(f)Includes level 3 assets and liabilities that are insignificant both individually and in aggregate.
(g)Price is a significant unobservable input for certain instruments. When quoted market prices are not readily available, reliance is generally placed on price-based internal valuation techniques. The price input is expressed assuming a par value of $100.


Changes in and ranges of unobservable inputs
For a discussion of the impact on fair value of changes in unobservable inputs and the relationships between unobservable inputs as well as a description of attributes of the underlying instruments and external market factors that affect the range of inputs used in the valuation of the Firm’s positions refer to Note 2 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Changes in level 3 recurring fair value measurements
The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the three and six months ended June 30, 20182019 and 2017.2018. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable parametersinputs to the overall fair
 
fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. Also, the Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm’s risk management activities related to such level 3 instruments.





Fair value measurements using significant unobservable inputs  Fair value measurements using significant unobservable inputs  
Three months ended
June 30, 2018
(in millions)		Fair
value at
April 1, 2018		Total realized/unrealized gains/(losses) 
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2018		Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2018
Purchases(f)
Sales 
Settlements(g)
Three months ended
June 30, 2019
(in millions)		Fair value at
April 1,
2019		Total realized/unrealized gains/(losses) 
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2019		Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2019
Purchases(f)
Sales 
Settlements(g)
Assets:(a)                    
Trading assets:                    
Debt instruments:                    
Mortgage-backed securities:                    
U.S. government agencies$508
 $—
 $5
$(11) $(19)$5
$(10) $478
 $—
 $412
 $(25) $318
$(68) $(20)$—
$—
 $617
 $(24) 
Residential – nonagency55
 2
 45
(11) (1)11
(14) 87
 1
 85
 1
 11
(14) (19)—
(22) 42
 —
 
Commercial – nonagency14
 2
 1
(1) (12)17
(3) 18
 1
 17
 —
 4
—
 (12)—
—
 9
 (1) 
Total mortgage-backed securities577
 4
 51
(23) (32)33
(27) 583
 2
 514
 (24) 333
(82) (51)—
(22) 668
 (25) 
U.S. Treasury and government agencies
—
 —
 —
—
 —
—
—
 —
 —
 —
 —
 —
—
 —
—
—
 —
 —
 
Obligations of U.S. states and municipalities704
 (9) 42
—
 (1)—
—
 736
 (9) 623
 1
 57
(1) —
—
—
 680
 —
 
Non-U.S. government debt securities197
 (12) 126
(92) —
—
(36) 183
 (12) 170
 —
 117
(103) —
9
(3) 190
 —
 
Corporate debt securities306
 (3) 60
(40) (10)36
(75) 274
 4
 568
 7
 61
(62) (53)51
(10) 562
 22
 
Loans2,368
 (21) 565
(806) (192)251
(179) 1,986
 (30) 1,741
 56
 385
(216) (156)139
(171) 1,778
 68
 
Asset-backed securities63
 4
 45
(9) (6)2
(12) 87
 4
 119
 2
 2
(58) (30)—
(2) 33
 2
 
Total debt instruments4,215
 (37) 889
(970) (241)322
(329) 3,849
 (41) 3,735
 42
 955
(522) (290)199
(208) 3,911
 67
 
Equity securities300
 (13) 65
(50) (1)—
(13) 288
 (8) 202
 (12) 8
(3) —
21
(69) 147
 (12) 
Other698
 (254) 16
(34) (18)—
(2) 406
 (259) 304
 20
 3
—
 (15)—
(1) 311
 35
 
Total trading assets – debt and equity instruments5,213
 (304)
(c) 
970
(1,054) (260)322
(344) 4,543
 (308)
(c) 
4,241
 50
(c) 
966
(525) (305)220
(278) 4,369
 90
(c) 
Net derivative receivables:(a)(b)
                    
Interest rate472
 287
 38
(51) (179)(54)(24) 489
 254
 (147) (341) 28
(60) (57)(6)39
 (544) (459) 
Credit5
 21
 1
(5) (29)(4)(13) (24) 9
 (115) (127) 13
(1) 4
1
(7) (232) (139) 
Foreign exchange(288) 94
 13
(3) (8)(74)21
 (245) 95
 (356) 58
 10
(8) 114
(17)6
 (193) 82
 
Equity(2,512) 143
 606
(1,042) (13)38
202
 (2,578) (24) (2,066) (21) 34
(158) (284)(148)83
 (2,560) (91) 
Commodity(519) (35) —
—
 (186)(9)(3) (752) (65) (665) (171) 7
(83) 21
(17)—
 (908) (151) 
Total net derivative receivables(2,842) 510
(c) 
658
(1,101) (415)(103)183
 (3,110) 269
(c) 
(3,349) (602)
(c) 
92
(310) (202)(187)121
 (4,437) (758)
(c) 
Available-for-sale securities:                    
Mortgage-backed securities—
 —
 —
—
 —
—
—
 —
 —
 
Asset-backed securities204
 —
 —
—
 (57)—
—
 147
 —
 —
 —
 —
—
 —
—
—
 —
 —
 
Other1
 —
 —
—
 —
—
—
 1
 —
 
Total available-for-sale securities205
 —
(d) 
—
—
 (57)—
—
 148
 —
(d) 
—
 —

—
—
 —
—
—
 —
 —

Loans396
 (9)
(c) 
—
—
 (154)—
(74) 159
 (9)
(c) 
123
 1
(c) 
—
—
 (119)—
—
 5
 —
(c) 
Mortgage servicing rights6,202
 94
(e) 
236
(104) (187)—
—
 6,241
 94
(e) 
5,957
 (826)
(d) 
426
(217) (247)—
—
 5,093
 (826)
(d) 
Other assets1,220
 (13)
(c) 
24
(2) (5)1
—
 1,225
 (17)
(c) 
841
 (89)
(c) 
142
(8) (26)1
—
 861
 (92)
(c) 
                    
Fair value measurements using significant unobservable inputs  Fair value measurements using significant unobservable inputs  
Three months ended
June 30, 2018
(in millions)		Fair
value at
April 1, 2018		Total realized/unrealized (gains)/losses 
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2018		Change in unrealized (gains)/
losses related
to financial instruments held at June 30, 2018
PurchasesSalesIssuances
Settlements(g)
Three months ended
June 30, 2019
(in millions)		Fair value at
April 1, 2019		Total realized/unrealized (gains)/losses 
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2019		Change in unrealized (gains)/
losses related
to financial instruments held at June 30, 2019
PurchasesSalesIssuances
Settlements(g)
Liabilities:(b)(a)
                    
Deposits$4,017
 $49
(c)(i) 
$—
$—
$434
$(57)$1
$(139) $4,305
 $50
(c)(i) 
$4,528
 $89
(c)(e) 
$—
$—
$92
$(292)$—
$(351) $4,066
 $104
(c)(e) 
Short-term borrowings2,125
 (197)
(c)(i) 
—
—
862
(614)43
(10) 2,209
 (27)
(c)(i) 
1,502
 72
(c)(e) 
—
—
1,037
(624)67
(2) 2,052
 28
(c)(e) 
Trading liabilities – debt and equity instruments50
 (11)
(c) 
(25)33
—
—
—
(4) 43
 (4)
(c) 
52
 —

(5)5
—
—
4
(11) 45
 —

Accounts payable and other liabilities7
 (1) —
1
—
—
1
—
 8
 (1) 15
 (1)
(c) 
(3)80
—
—
1
—
 92
 (1)
(c) 
Beneficial interests issued by consolidated VIEs1
 —

—
—
—
—
—
—
 1
 —

—
 —

—
—
—
—
—
—
 —
 —

Long-term debt16,950
 (344)
(c)(i) 
—
—
3,740
(2,083)219
(220) 18,262
 (427)
(c)(i) 
21,655
 455
(c)(e) 
—
—
2,648
(2,729)200
(366) 21,863
 621
(c)(e) 



Fair value measurements using significant unobservable inputs

 
Three months ended
June 30, 2018
(in millions)		Fair value at
April 1,
2018		Total realized/unrealized gains/(losses)


 

Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2018		Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2018
Purchases(f)
Sales
 
Settlements(g)
 
Assets:(a)






 


 








Trading assets:





 


 








Debt instruments:





 


 








Mortgage-backed securities:





 


 








U.S. government agencies$508
$—

$5
$(11)
 $(19)
$5
$(10)
$478

$—

Residential – nonagency55
2

45
(11)
 (1)
11
(14)
87

1

Commercial – nonagency14
2

1
(1)
 (12)
17
(3)
18

1

Total mortgage-backed securities577
4

51
(23)
 (32)
33
(27)
583

2

U.S. Treasury and
government agencies		—
—
 —
—
  —
 —
—
 —
 —
 
Obligations of U.S. states and municipalities704
(9)
42
—

 (1)
—
—

736

(9)
Non-U.S. government debt securities197
(12)
126
(92)
 —

—
(36)
183

(12)
Corporate debt securities306
(3)
60
(40)
 (10)
36
(75)
274

4

Loans2,368
(21)
565
(806)
 (192)
251
(179)
1,986

(30)
Asset-backed securities63
4

45
(9)
 (6)
2
(12)
87

4

Total debt instruments4,215
(37)
889
(970)
 (241)
322
(329)
3,849

(41)
Equity securities300
(13)
65
(50)
 (1)
—
(13)
288

(8)
Other698
(254)
16
(34)
 (18)
—
(2)
406

(259)
Total trading assets – debt and equity instruments5,213
(304)
(c) 
970
(1,054)
 (260)
322
(344)
4,543

(308)
(c) 
Net derivative receivables:(b)










 


 








Interest rate472
287

38
(51)
 (179)
(54)(24)
489

254

Credit5
21

1
(5)
 (29)
(4)(13)
(24)
9

Foreign exchange(288)94

13
(3)
 (8)
(74)21

(245)
95

Equity(2,512)143

606
(1,042)
 (13)
38
202

(2,578)
(24)
Commodity(519)(35)
—
—

 (186)
(9)(3)
(752)
(65)
Total net derivative receivables(2,842)510
(c) 
658
(1,101)
 (415)
(103)183

(3,110)
269
(c) 
Available-for-sale securities:  
  
  
  
 
 
Mortgage-backed securities1
—

—
—

 —

—
—

1

—

Asset-backed securities204
—

—
—

 (57)
—
—

147

—

Total available-for-sale securities205
—

—
—

 (57)
—
—

148

—

Loans396
(9)
(c) 
—
—

 (154)
—
(74)
159

(9)
(c) 
Mortgage servicing rights6,202
94
(d) 
236
(104)
 (187)
—
—

6,241

94
(d) 
Other assets1,220
(13)
(c) 
24
(2)  (5) 1
—
 1,225
 (17)
(c) 
                 

Fair value measurements using significant unobservable inputs

Three months ended
June 30, 2018
(in millions)		Fair value at
April 1,
2018		Total realized/unrealized (gains)/losses


 
 
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2018		Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2018
PurchasesSalesIssuances
Settlements(g)

Liabilities:(a)






 

  







Deposits$4,017
$49
(c)(e) 
$—
$—
$434
 $(57)
$1
$(139)
$4,305

$50
(c)(e) 
Short-term borrowings2,125
(197)
(c)(e) 
—
—
862
 (614)
43
(10)
2,209

(27)
(c)(e) 
Trading liabilities – debt and equity instruments50
(11)
(c) 
(25)33
—
 —

—
(4)
43

(4)
(c) 
Accounts payable and other liabilities7
(1)
(c) 
—
1
—
 —

1
—

8

(1)
(c) 
Beneficial interests issued by consolidated VIEs1
—

—
—
—
 —

—
—

1

—

Long-term debt16,950
(344)
(c)(e) 
—
—
3,150
(i) 
(2,123)
(i) 
219
(220)
17,632
(i) 
(427)
(c)(e) 





Fair value measurements using significant unobservable inputs


 Fair value measurements using significant unobservable inputs  
Three months ended
June 30, 2017
(in millions)		Fair
value
at April 1, 2017		Total realized/unrealized gains/(losses)
 
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2017		Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2017
Purchases(f)
Sales
 
Settlements(g)
Six months ended
June 30, 2019
(in millions)		Fair value at
January 1,
2019		Total realized/unrealized gains/(losses) 
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2019		Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2019
Purchases(f)
Sales 
Settlements(g)
Assets:(a)


 

 








          
Trading assets:


 

 








          
Debt instruments:


 

 








          
Mortgage-backed securities:


 

 








          
U.S. government agencies$353
$(11)
$82
$(54)
 $(19)$20
$(6)
$365

$(14)
$549
 $(40) $323
$(168) $(38)$1
$(10) $617
 $(37) 
Residential – nonagency35
(1)
31
(3)
 (5)46
(5)
98

(4)
64
 25
 81
(83) (20)15
(40) 42
 —
 
Commercial – nonagency45
(1)
10
(6)
 (2)30
(11)
65

(1)
11
 2
 16
(19) (14)15
(2) 9
 —
 
Total mortgage-backed securities433
(13)
123
(63)
 (26)96
(22)
528

(19)
624
 (13) 420
(270) (72)31
(52) 668
 (37) 
U.S. Treasury and government agencies
—
 —
 —
—
 —
—
—
 —
 —
 
Obligations of U.S. states and municipalities668
4

9
—

 —
—
—

681

3

689
 14
 58
(75) (6)—
—
 680
 15
 
Non-U.S. government debt securities47
3

102
(95)
 —
1
(21)
37

2

155
 (1) 188
(157) —
11
(6) 190
 2
 
Corporate debt securities738
2

74
(38)
 (254)27
(88)
461

1

334
 29
 284
(69) (53)79
(42) 562
 35
 
Loans4,588
68

729
(323)
 (390)122
(306)
4,488

83

1,706
 139
 457
(334) (276)298
(212) 1,778
 128
 
Asset-backed securities245
8

11
(30)
 (25)6
(132)
83

6

127
 —
 19
(79) (37)20
(17) 33
 —
 
Total debt instruments6,719
72

1,048
(549)
 (695)252
(569)
6,278

76

3,635
 168
 1,426
(984) (444)439
(329) 3,911
 143
 
Equity securities271
21

57
(41)
 —
1
(25)
284

10

232
 (14) 23
(82) (22)96
(86) 147
 (11) 
Other763
43

3
(7)
 (65)2
(8)
731

31

301
 24
 15
(1) (26)1
(3) 311
 45
 
Total trading assets – debt and equity instruments7,753
136
(c) 
1,108
(597)
 (760)255
(602)
7,293

117
(c) 
4,168
 178
(c) 
1,464
(1,067) (492)536
(418) 4,369
 177
(c) 
Net derivative receivables:(a)










 

 








Net derivative receivables:(b)
          
Interest rate1,009
37

21
(30)
 (348)30
(7)
712

(90)
(38) (663) 47
(207) 241
12
64
 (544) (725) 
Credit17
(48)
1
(1)
 (20)6
—

(45)
(37)
(107) (144) 13
(2) 10
4
(6) (232) (155) 
Foreign exchange(1,490)95

3
(2)
 656
12
40

(686)
101

(297) (187) 11
(17) 295
(25)27
 (193) (144) 
Equity(1,896)(35)
149
(83)
 (504)(108)33

(2,444)
(38)
(2,225) 710
 161
(455) (685)(215)149
 (2,560) (134) 
Commodity(56)(22)
—
—

 23
(2)(1)
(58)
(32)
(1,129) 362
 10
(171) 45
(16)(9) (908) 485
 
Total net derivative receivables(2,416)27
(c) 
174
(116)
 (193)(62)65

(2,521)
(96)
(c) 
(3,796) 78
(c) 
242
(852) (94)(240)225
 (4,437) (673)
(c) 
Available-for-sale securities: 
 
  
 
 
          
Mortgage-backed securities1
 —
 —
—
 (1)—
—
 —
 —
 
Asset-backed securities622
2

—
—

 (77)—
—

547

2

—
 —
 —
—
 —
—
—
 —
 —
 
Other1
—

—
—

 —
—
—

1

—

Total available-for-sale securities623
2
(d) 
—
—

 (77)—
—

548

2
(d) 
1
 —
 —
—
 (1)—
—
 —
 —
 
Loans404
18
(c) 
—
—

 (117)—
—

305

13
(c) 
122
 4
(c) 
—
—
 (121)—
—
 5
 5
(c) 
Mortgage servicing rights6,079
(200)
(e) 
154
(67)
 (213)—
—

5,753

(200)
(e) 
6,130
 (1,125)
(d) 
862
(328) (446)—
—
 5,093
 (1,125)
(d) 
Other assets2,077
193
(c) 
28
(78)  (286)—
—
 1,934
 120
(c) 
927
 (96)
(c) 
151
(88) (27)1
(7) 861
 (98)
(c) 
                    

Fair value measurements using significant unobservable inputs

Fair value measurements using significant unobservable inputs  
Three months ended
June 30, 2017
(in millions)
Fair
value
at April 1, 2017
Total realized/unrealized (gains)/losses

 
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2017		Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2017
PurchasesSalesIssuances
Settlements(g)
Liabilities:(b)



 

 







Six months ended
June 30, 2019
(in millions)		Fair value at
January 1, 2019		Total realized/unrealized (gains)/losses 
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2019		Change in unrealized (gains)/
losses related
to financial instruments held at June 30, 2019
PurchasesSalesIssuances
Settlements(g)
Liabilities:(a)
          
Deposits$2,133
$30
(c) 
$—
$—
$292
 $(31)$—
$(293)
$2,131

$27
(c) 
$4,169
 $241
(c)(e) 
$—
$—
$427
$(316)$—
$(455) $4,066
 $246
(c)(e) 
Short-term borrowings1,261
46
(c) 
—
—
683
 (657)23
(42)
1,314

53
(c) 
1,523
 118
(c)(e) 
—
—
1,688
(1,225)68
(120) 2,052
 115
(c)(e) 
Trading liabilities – debt and equity instruments45
(1)
(7)2
—
 —
1
(4)
36

—

50
 —
 (7)16
—
—
7
(21) 45
 1
(c) 
Accounts payable and other liabilities11
—

(1)—
—
 —
—
—

10

—

10
 (1)
(c) 
(8)90
—
—
1
—
 92
 (1)
(c) 
Beneficial interests issued by consolidated VIEs51
—

(44)—
—
 (6)—
—

1

—

1
 (1)
(c) 
—
—
—
—
—
—
 —
 —
 
Long-term debt14,094
70
(c)(j) 
—
—
2,941
(j) 
(2,274)53
(152)
14,732
(j) 
15
(c)(j) 
19,418
 1,728
(c)(e) 
—
—
4,699
(3,917)473
(538) 21,863
 2,039
(c)(e) 



 Fair value measurements using significant unobservable inputs  
Six months ended
June 30, 2018
(in millions)		Fair
value at
January 1, 2018		Total realized/unrealized gains/(losses)    
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2018		Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2018
Purchases(f)
Sales 
Settlements(g)
Assets:               
Trading assets:               
Debt instruments:               
Mortgage-backed securities:               
U.S. government agencies$307
 $3
 $334
$(98) $(39)$9
$(38) $478
 $1
 
Residential – nonagency60
 —
 45
(13) (3)40
(42) 87
 1
 
Commercial – nonagency11
 3
 7
(8) (13)21
(3) 18
 (2) 
Total mortgage-backed securities378
 6
 386
(119) (55)70
(83) 583
 —
 
U.S. Treasury and government agencies
1
 —
 —
—
 —
—
(1) —
 —
 
Obligations of U.S. states and municipalities744
 (11) 81
—
 (78)—
—
 736
 (11) 
Non-U.S. government debt securities78
 (10) 351
(184) —
17
(69) 183
 (9) 
Corporate debt securities312
 (4) 141
(140) (11)167
(191) 274
 3
 
Loans2,719
 41
 1,035
(1,534) (329)374
(320) 1,986
 (24) 
Asset-backed securities153
 9
 59
(22) (40)13
(85) 87
 5
 
Total debt instruments4,385
 31
 2,053
(1,999) (513)641
(749) 3,849
 (36) 
Equity securities295
 (21) 93
(60) (1)4
(22) 288
 (8) 
Other690
 (239) 34
(40) (38)1
(2) 406
 (251) 
Total trading assets – debt and equity instruments5,370
 (229)
(c) 
2,180
(2,099) (552)646
(773) 4,543
 (295)
(c) 
Net derivative receivables:(a)
               
Interest rate264
 340
 55
(55) (133)(28)46
 489
 314
 
Credit(35) 38
 2
(7) (25)(1)4
 (24) 11
 
Foreign exchange(396) 240
 13
(8) 3
(112)15
 (245) 190
 
Equity(3,409) 782
 824
(1,284) 421
(73)161
 (2,578) 514
 
Commodity(674) 150
 —
—
 (174)(8)(46) (752) 154
 
Total net derivative receivables(4,250) 1,550
(c) 
894
(1,354) 92
(222)180
 (3,110) 1,183
(c) 
Available-for-sale securities:

              
Asset-backed securities276
 1
 —
—
 (130)—
—
 147
 1
 
Other1
 —
 —
—
 —
—
—
 1
 —
 
Total available-for-sale securities277
 1
(d) 
—
—
 (130)—
—
 148
 1
(d) 
Loans276
 (4)
(c) 
122
—
 (161)—
(74) 159
 (5)
(c) 
Mortgage servicing rights6,030
 478
(e) 
479
(399) (347)—
—
 6,241
 478
(e) 
Other assets1,265
 (50)
(c) 
47
(16) (21)1
(1) 1,225
 (52)
(c) 
                
 Fair value measurements using significant unobservable inputs  
Six months ended
June 30, 2018
(in millions)		Fair
value at
January 1, 2018		Total realized/unrealized (gains)/losses    
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2018		Change in unrealized (gains)/
losses related
to financial instruments held at June 30, 2018
PurchasesSalesIssuances
Settlements(g)
Liabilities:(b)
               
Deposits$4,142
 $(41)
(c)(i) 
$—
$—
$755
$(255)$1
$(297) $4,305
 $(86)
(c)(i) 
Short-term borrowings1,665
 (182)
(c)(i) 
—
—
2,070
(1,360)55
(39) 2,209
 (31)
(c)(i) 
Trading liabilities – debt and equity instruments39
 (8)
(c) 
(62)76
—
1
2
(5) 43
 (1)
(c) 
Accounts payable and other liabilities13
 (1) (6)1
—
—
1
—
 8
 (1) 
Beneficial interests issued by consolidated VIEs39
 —
 —
—
—
(38)—
—
 1
 —
 
Long-term debt16,125
 (590)
(c)(i) 
—
—
6,831
(4,346)594
(352) 18,262
 (706)
(c)(i) 

Fair value measurements using significant unobservable inputs  Fair value measurements using significant unobservable inputs
  
Six months ended
June 30, 2017
(in millions)		Fair
value at
January 1, 2017		Total realized/unrealized gains/(losses)   
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2017		Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2017
Purchases(f)
Sales  
Settlements(g)
Six months ended
June 30, 2018
(in millions)		Fair value at
January 1,
2018		Total realized/unrealized gains/(losses)    
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2018		Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2018
Purchases(f)
Sales  
Settlements(g)
 
Assets:(a)                        
Trading assets:                        
Debt instruments:                        
Mortgage-backed securities:                        
U.S. government agencies$392
 $(7) $161
$(151)  $(35)$27
$(22) $365
 $(16) $307
$3
 $334
$(98)  $(39) $9
$(38) $478
 $1
 
Residential – nonagency83
 8
 36
(20)  (9)61
(61) 98
 1
 60
—
 45
(13)  (3) 40
(42) 87
 1
 
Commercial – nonagency17
 2
 17
(14)  (5)60
(12) 65
 (1) 11
3
 7
(8)  (13) 21
(3) 18
 (2) 
Total mortgage-backed securities492
 3
 214
(185)  (49)148
(95) 528
 (16) 378
6
 386
(119)  (55) 70
(83) 583
 —
 
U.S. Treasury and
government agencies		1
—
 —
—
  —
 —
(1) —
 —
 
Obligations of U.S. states and municipalities649
 12
 95
(70)  (5) —
 681
 11
 744
(11) 81
—
  (78) —
—
 736
 (11) 
Non-U.S. government debt securities46
 3
 174
(178)  —
27
(35) 37
 3
 78
(10) 351
(184)  —
 17
(69) 183
 (9) 
Corporate debt securities576
 (7) 497
(146)  (376)60
(143) 461
 1
 312
(4) 141
(140)  (11) 167
(191) 274
 3
 
Loans4,837
 178
 1,491
(1,067)  (765)318
(504) 4,488
 98
 2,719
41
 1,035
(1,534)  (329) 374
(320) 1,986
 (24) 
Asset-backed securities302
 22
 109
(168)  (36)14
(160) 83
 7
 153
9
 59
(22)  (40) 13
(85) 87
 5
 
Total debt instruments6,902
 211
 2,580
(1,814)  (1,231)567
(937) 6,278
 104
 4,385
31
 2,053
(1,999)  (513) 641
(749) 3,849
 (36) 
Equity securities231
 34
 113
(47)  —
2
(49) 284
 20
 295
(21) 93
(60)  (1) 4
(22) 288
 (8) 
Other761
 65
 22
(7)  (112)10
(8) 731
 49
 690
(239) 34
(40)  (38) 1
(2) 406
 (251) 
Total trading assets – debt and equity instruments7,894
 310
(c) 
2,715
(1,868)  (1,343)579
(994) 7,293
 173
(c) 
5,370
(229)
(c) 
2,180
(2,099)  (552) 646
(773) 4,543
 (295)
(c) 
Net derivative receivables:(a)
            
Net derivative receivables:(b)
            
Interest rate1,263
 81
 37
(53)  (651)34
1
 712
 (151) 264
340
 55
(55)  (133) (28)46
 489
 314
 
Credit98
 (94) 1
(3)  (62)17
(2) (45) (50) (35)38
 2
(7)  (25) (1)4
 (24) 11
 
Foreign exchange(1,384) 70
 4
(4)  565
23
40
 (686) 60
 (396)240
 13
(8)  3
 (112)15
 (245) 190
 
Equity(2,252) 34
 485
(128)  (528)(181)126
 (2,444) (37) (3,409)782
 824
(1,284)  421
 (73)161
 (2,578) 514
 
Commodity(85) (4) —
—
  25
4
2
 (58) 30
 (674)150
 —
—
  (174) (8)(46) (752) 154
 
Total net derivative receivables(2,360) 87
(c) 
527
(188)  (651)(103)167
 (2,521) (148)
(c) 
(4,250)1,550
(c) 
894
(1,354)  92
 (222)180
 (3,110) 1,183
(c) 
Available-for-sale securities:                        
Mortgage-backed securities1
—
 —
—
  —
 —
—
 1
 —
 
Asset-backed securities663
 12
 —
(50)  (78)—
—
 547
 10
 276
1
 —
—
  (130) —
—
 147
 1
 
Other1
 —
 —
—
  —
—
—
 1
 —
 
Total available-for-sale securities664
 12
(d) 
—
(50)  (78)—
—
 548
 10
(d) 
277
1
(j) 
—
—
  (130) —
—
 148
 1
(d) 
Loans570
 24
(c) 
—
—
  (289)—
—
 305
 16
(c) 
276
(4)
(c) 
122
—
  (161) —
(74) 159
 (5)
(c) 
Mortgage servicing rights6,096
 (157)
(e) 
371
(138)  (419)—
—
 5,753
 (157)
(e) 
6,030
478
(d) 
479
(399)  (347) —
—
 6,241
 478
(d) 
Other assets2,223
 230
(c) 
32
(155)  (396)—
—
 1,934
 132
(c) 
1,265
(50)
(c) 
47
(16)  (21) 1
(1) 1,225
 (52)
(c) 
                        
Fair value measurements using significant unobservable inputs  Fair value measurements using significant unobservable inputs  
Six months ended
June 30, 2017
(in millions)		Fair
value at
January 1, 2017		Total realized/unrealized (gains)/losses   
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2017		Change in unrealized (gains)/
losses related
to financial instruments held at June 30, 2017
PurchasesSalesIssuances 
Settlements(g)
Liabilities:(b)
            
Six months ended
June 30, 2018
(in millions)		Fair value at
January 1,
2018		Total realized/unrealized (gains)/losses     
Transfers into
level 3(h)
Transfers (out of) level 3(h)
Fair value at
June 30, 2018		Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2018
PurchasesSalesIssuances
Settlements(g)
 
Liabilities:(a)
            
Deposits$2,117
 $6
(c)(i) 
$—
$—
$601
 $(111)$—
$(482) $2,131
 $45
(c)(i) 
$4,142
$(41)
(c)(e) 
$—
$—
$755
 $(255) $1
$(297) $4,305
 $(86)
(c)(e) 
Short-term borrowings1,134
 47
(c)(i) 
—
 1,390
 (1,242)40
(55) 1,314
 49
(c)(i) 
1,665
(182)
(c)(e) 
—
—
2,070
 (1,360) 55
(39) 2,209
 (31)
(c)(e) 
Trading liabilities – debt and equity instruments43
 (1)
(c) 
(8)4
—
 1
3
(6) 36
 —
 39
(8)
(c) 
(62)76
—
 1
 2
(5) 43
 (1)
(c) 
Accounts payable and other liabilities13
 —
 (1)—
—
 (2)—
—
 10
 —
 13
(1)
(c) 
(6)1
—
 —
 1
—
 8
 (1)
(c) 
Beneficial interests issued by consolidated VIEs48
 3
 (44)—
—
 (6)—
—
 1
 —
 39
—
 —
—
—
 (38) —
—
 1
 —
 
Long-term debt12,850
 599
(c)(j) 
—
—
6,733
(j) 
(5,085)88
(453) 14,732
(j) 
398
(c)(i) 
16,125
(590)
(c)(e) 
—
—
6,241
(i) 
(4,386)
(i) 
594
(352) 17,632
(i) 
(706)
(c)(e) 
(a)All levelLevel 3 derivatives are presentedassets as a percentage of total Firm assets accounted for at fair value (including assets measured at fair value on a net basis, irrespective of the underlying counterparty.
(b)nonrecurring basis) were 2% and 3% at June 30, 2019 and December 31, 2018, respectively. Level 3 liabilities as a percentage of total Firm liabilities accounted for at fair value (including liabilities measured at fair value on a nonrecurring basis) werewas 15% at both June 30, 20182019 and December 31, 2017, respectively.2018.

(b)All level 3 derivatives are presented on a net basis, irrespective of the underlying counterparty.
(c)Predominantly reported in principal transactions revenue, except for changes in fair value for CCB mortgage loans and lending-related commitments originated with the intent to sell, and mortgage loan purchase commitments, which are reported in mortgage fees and related income.
(d)Realized gains/(losses) on AFS securities, as well as other-than-temporary impairment (“OTTI”) losses that are recorded in earnings, are reported in investment securities losses. Unrealized gains/(losses) are reported in OCI. There were no realized gains/(losses) or foreign exchange hedge accounting adjustments recorded in income on AFS

securities for the three and six months ended June 30, 2018 and 2017, respectively. Unrealized gains/(losses) recorded on AFS securities in OCI were zero and $2 million for the three months ended June 30, 2018 and 2017, respectively and $1 million and $12 million for the six months ended June 30, 2018 and 2017, respectively.
(e)Changes in fair value for CCB MSRs are reported in mortgage fees and related income.
(e)
Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue, and they were not material for the three and six months ended June 30, 2019 and 2018, respectively. Unrealized (gains)/losses are reported in OCI, and they were $(5) million and $(71) million for the three months ended June 30, 2019 and 2018, respectively and $170 million and $(123) million for the six months ended June 30, 2019 and 2018, respectively.
(f)Loan originations are included in purchases.
(g)Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications, deconsolidationdeconsolidations associated with beneficial interests in VIEs and other items.
(h)All transfers into and/or out of level 3 are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur.
(i)Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue. Unrealized (gains)/losses are reported in OCI. Unrealized gains were $71 million and $123 million for the three and six months ended June 30, 2018, respectively. There were no realized gains for the three and six months ended June 30, 2018, respectively.
(j)The prior period amounts have been revised to conform with the current period presentation.
(j)Realized gains/(losses) on AFS securities, as well as other-than-temporary impairment (“OTTI”) losses that are recorded in earnings, are reported in investment securities gains/(losses). Unrealized gains/(losses) are reported in OCI. There were no realized gains/(losses) recorded in income on AFS securities for the three and six months ended June 30, 2019 and 2018, respectively. Unrealized gains/(losses) recorded on AFS securities in OCI were zero for both the three months ended June 30, 2019 and 2018, respectively and zero and $1 million for the six months ended June 30, 2019 and 2018, respectively.
Level 3 analysis
Consolidated balance sheets changes
Level 3 assets, (includingincluding assets measured at fair value on a nonrecurring basis)basis, were 0.8%0.6% of total Firm assets at June 30, 2018.2019. The following describes significant changes to level 3 assets since December 31, 2017,2018, for those items measured at fair value on a recurring basis. For further information on changes impacting items measured at fair value on a nonrecurring basis, refer to Assets and liabilities measured at fair value on a nonrecurring basis on page 102.96.
Three and six months ended June 30, 20182019
Level 3 assets were $19.3$16.5 billion at June 30, 2018,2019, reflecting a decrease of $180$553 million and $622 million from March 31, 2019 and December 31, 2018, with no movements that were individually significant.respectively.
SixThe decrease for both the three and six months ended June 30, 20182019 was driven by a reduction of approximately $1.0 billion in MSRs. For additional information, refer to the Gains and losses section below.
Level 3 assetsTransfers between levels for instruments carried at fair value on a recurring basis
For both the three and six months ended June 30, 2019 and 2018 increased by $87 million from December 31, 2017 withthere were no movements that were individually significant.significant transfers.
All transfers are based on changes in the observability and/or significance of the valuation inputs and are assumed to occur at the beginning of the quarterly reporting period in which they occur.
Gains and losses
The following describes significant components of total realized/unrealized gains/(losses) for instruments measured at fair value on a recurring basis for the periods indicated. These amounts exclude any effects of the Firm’s risk management activities where the financial instruments are classified as level 1 and 2 of the fair value hierarchy. For further information on these instruments, refer to Changes in level 3 recurring fair value measurements rollforward tables on pages 96–101.90–95.
Three months ended June 30, 2019
$1.5 billion of net losses on assets, driven by derivative receivables due to market movements and MSRs reflecting updates to model inputs and faster prepayment speeds on lower rates.
$615 million of net losses on liabilities, largely due to market movements in long-term debt.
Three months ended June 30, 2018
$278 million of net gains on assets and $504 million of net gains on liabilities, none of which were individually significant.
ThreeSix months ended June 30, 20172019
$176 million1.0 billion of net gainslosses on assets, predominantly driven by MSRs reflecting updates to model inputs and $145 millionfaster prepayment speeds on lower rates.
$2.1 billion of net losses on liabilities, none of which were individually significant.predominantly driven by market movements in long-term debt.
Six months ended June 30, 2018
$1.7 billion of net gains on assets predominantly driven by market movements in derivative receivables, in particular equity derivative receivables.
•
$822 million of net gains on liabilities, none of which were individually significant.
Six months ended June 30, 2017
$506 million of of net gains on assets and $654 million of net losses on liabilities, none of which were individually significant.

Credit and funding adjustments — derivatives
The following table provides the impact of credit and funding adjustments on principal transactions revenue in the respective periods, excluding the effect of any associated hedging activities. The FVA presented below includes the impact of the Firm’s own credit quality on the inception value of liabilities as well as the impact of changes in the Firm’s own credit quality over time.
 Three months ended June 30, Six months ended June 30,
(in millions)2019
 2018
 2019
 2018
Credit and funding adjustments:       
Derivatives CVA$(44) $73
 $16
 $157
Derivatives FVA(89) 97
 63
 14
 Three months ended June 30, Six months ended June 30,
(in millions)2018
 2017
 2018
 2017
Credit and funding adjustments:       
Derivatives CVA$73
 $249
 $157
 $470
Derivatives FVA97
 (60) 14
 (67)

For further information about both credit and funding adjustments, as well as information about valuation adjustments on fair value option elected liabilities, refer to Note 2 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.


Assets and liabilities measured at fair value on a nonrecurring basis
The following tables present the assets still held as of June 30, 20182019 and 2017,2018, respectively, for which a nonrecurring fair value adjustment was recorded during the six months ended June 30, 20182019 and 2017,2018, respectively, by major product category and fair value hierarchy.
Fair value hierarchy Total fair valueFair value hierarchy Total fair value
June 30, 2018 (in millions)Level 1
Level 2
 Level 3
 
June 30, 2019 (in millions)Level 1
Level 2
 Level 3
 Total fair value
Loans$—
$325

$210
(a) 
$535
$—
$733
 $141
(b) 
Other assets(b)(a)
—
217
 823
 1,040
—
13
 713
 726
Total assets measured at fair value on a nonrecurring basis$—
$542
 $1,033

$1,575
$—
$746
 $854
 $1,600
Fair value hierarchy Total fair valueFair value hierarchy Total fair value
June 30, 2017 (in millions)Level 1
Level 2
 Level 3
 
June 30, 2018 (in millions)Level 1
Level 2
 Level 3
 Total fair value
Loans$—
$292
 $430
 $722
$—
$325
 $210
 
Other assets—
10
 245
 255
—
217
 823
 1,040
Total assets measured at fair value on a nonrecurring basis$—
$302
 $675
 $977
$—
$542
 $1,033
 $1,575
(a)Primarily includes equity securities without readily determinable fair values that were adjusted based on observable price changes in orderly transactions from an identical or similar investment of the same issuer (measurement alternative). Of the $210$713 million in level 3 assets measured at fair value on a nonrecurring basis as of June 30, 2018, $1662019, $564 million related to such equity securities. These equity securities are classified as level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.
(b)Of the $141 million in level 3 assets measured at fair value on a nonrecurring basis as of June 30, 2019, $110 million related to residential real estate loans carried at the net realizable value of the underlying collateral (e.g., collateral-dependent loans and other loans charged off in accordance with regulatory guidance). These amounts are classified as level 3 as they are valued using ainformation from broker’s price opinionopinions, appraisals and automated valuation models and discounted based upon the Firm’s experience with actual liquidation values. These discounts to the broker price opinions ranged from 13%14% to 40%49% with a weighted average of 22%29%.
(b)Primarily includes equity securities without readily determinable fair values that were adjusted based on observable price changes in orderly transactions from an identical or similar investment of the same issuer (measurement alternative) as a result of the adoption of the recognition and measurement guidance. Of the $823 million in level 3 assets measured at fair value on a nonrecurring basis as of June 30, 2018, $641 million related to such equity securities. These equity securities are classified as level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.
There were no material liabilities measured at fair value on a nonrecurring basis at June 30, 20182019 and 2017.2018.
Nonrecurring fair value changes
The following table presents the total change in value of assets and liabilities for which a fair value adjustment has been recognized for the three and six months ended June 30, 20182019 and 2017,2018, related to financial instrumentsassets and liabilities held at those dates.
Three months ended
June 30,		 Six months ended June 30,Three months ended June 30, Six months ended June 30,
2018
 2017
 2018
 2017
(in millions)2019
 2018
 2019
 2018
Loans$(18) $(60) $(22)
$(109)$(33) $(18) $(54) $(22)
Other assets(a)37
(a) 
(17) 528
(a) 
(44)13
  
37
 90
 528
Accounts payable and other liabilities—
 (1) —
 (1)
Total nonrecurring fair value gains/(losses)$19
 $(78) $506
 $(154)$(20) $19
 $36
 $506
(a)Included $67$16 million and $562$41 million for the three months ended June 30, 2019 and 2018, respectively and $95 million and $534 million for the six months ended June 30, 2019 and 2018, respectively, of fair valuenet gains as a result of the measurement alternative.

 
For further information about the measurement of impaired collateral-dependent loans, and other loans where the carrying value is based on the fair value of the underlying collateral (e.g., residential mortgage loans charged off in accordance with regulatory guidance), refer to Note 12 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.




Equity securities without readily determinable fair values
The Firm measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer, with such changes recognized in earnings.
In its determination of the new carrying values upon observable price changes, the Firm may adjust the prices if deemed necessary to arrive at the Firm’s estimated fair values. Such adjustments may include adjustments to reflect the different rights and obligations of similar securities, and other adjustments that are consistent with the Firm’s valuation techniques for private equity direct investments.
The following table presents the carrying value of equity securities without readily determinable fair values still held as of June 30, 2019 and 2018, that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable.
 Three months ended Six months ended
 June 30, June 30,
As of or for the period ended,       
(in millions)2019 2018 2019 2018
Other assets       
Carrying value(a)
$1,704
 $1,471
 $1,704
 $1,471
Upward carrying value changes(b)
52
 67
 136
 562
Downward carrying value changes/impairment(c)
(36) (26) (42) (28)
(a)The carrying value as of December 31, 2018 was $1.5 billion.
(b)The cumulative upward carrying value changes between January 1, 2018 and June 30, 2019 were $446 million.
(c)The cumulative downward carrying value changes/impairment between January 1, 2018 and June 30, 2019 were $(202) million.
Included in other assets above is the Firm’s interest in approximately 40 million Visa Class B shares, recorded at a nominal carrying value. These shares are subject to certain transfer restrictions currently and will be convertible into Visa Class A shares upon final resolution of certain litigation matters involving Visa. The conversion rate of Visa Class B shares into Visa Class A shares is 1.6298 at June 30, 2019, and may be adjusted by Visa depending on developments related to the litigation matters.

Additional disclosures about the fair value of financial instruments that are not carried on the Consolidated balance sheets at fair value
The following table presents by fair value hierarchy classification the carrying values and estimated fair values at June 30, 2018,2019, and December 31, 2017, 2018, of financial assets and liabilities, excluding financial instruments that are carried at fair value on a recurring basis, and their classification within the fair value hierarchy. For additional information regarding the financial instruments within the scope of this disclosure, and the methods and significant assumptions used to estimate their fair value,refer to Note 2 of JPMorgan Chase’s 2017 Annual Report.
 June 30, 2018 December 31, 2017
  Estimated fair value hierarchy   Estimated fair value hierarchy 
(in billions)
Carrying
value
Level 1Level 2Level 3
Total estimated
fair value
 
Carrying
value
Level 1Level 2Level 3
Total estimated
fair value
Financial assets           
Cash and due from banks$23.7
$23.7
$—
$—
$23.7
 $25.9
$25.9
$—
$—
$25.9
Deposits with banks381.5
377.7
3.8
—
381.5
 405.4
401.8
3.6
—
405.4
Accrued interest and accounts receivable74.9
—
74.8
0.1
74.9
 67.0
—
67.0
—
67.0
Federal funds sold and securities purchased under resale agreements213.7
—
213.7
—
213.7
 183.7
—
183.7
—
183.7
Securities borrowed104.2
—
104.2
—
104.2
 102.1
—
102.1
—
102.1
Securities, held-to-maturity31.0
—
30.9
—
30.9
 47.7
—
48.7
—
48.7
Loans, net of allowance for loan losses(a)
932.1
—
221.9
709.2
931.1
 914.6
—
213.2
707.1
920.3
Other(b)
56.5
—
55.6
1.0
56.6
 53.9
—
52.1
9.2
61.3
Financial liabilities           
Deposits$1,432.4
$—
$1,432.4
$—
$1,432.4
 $1,422.7
$—
$1,422.7
$—
$1,422.7
Federal funds purchased and securities loaned or sold under repurchase agreements174.4
—
174.4
—
174.4
 158.2
—
158.2
—
158.2
Short-term borrowings55.1
—
54.9
0.2
55.1
 42.6
—
42.4
0.2
42.6
Accounts payable and other liabilities165.2
—
162.6
2.4
165.0
 152.0
—
148.9
2.9
151.8
Beneficial interests issued by consolidated VIEs21.3
—
21.3
—
21.3
 26.0
—
26.0
—
26.0
Long-term debt and junior subordinated deferrable interest debentures223.0
—
219.5
3.2
222.7
 236.6
—
240.3
3.2
243.5
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.
 June 30, 2019 December 31, 2018
  Estimated fair value hierarchy   Estimated fair value hierarchy 
(in billions)
Carrying
value
Level 1Level 2Level 3
Total estimated
fair value
 
Carrying
value
Level 1Level 2Level 3
Total estimated
fair value
Financial assets           
Cash and due from banks$23.2
$23.2
$—
$—
$23.2
 $22.3
$22.3
$—
$—
$22.3
Deposits with banks244.9
244.9
—
—
244.9
 256.5
256.5
—
—
256.5
Accrued interest and accounts receivable87.2
0.8
86.3
0.1
87.2
 72.0
—
71.9
0.1
72.0
Federal funds sold and securities purchased under resale agreements253.9
—
253.9
—
253.9
 308.4
—
308.4
—
308.4
Securities borrowed125.0
—
125.0
—
125.0
 106.9
—
106.9
—
106.9
Investment securities, held-to-maturity30.9
—
32.1
—
32.1
 31.4
—
31.5
—
31.5
Loans, net of allowance for loan losses(a)
939.4
—
224.1
727.8
951.9
 968.0
—
241.5
728.5
970.0
Other59.2
—
58.4
0.9
59.3
 60.5
—
59.6
1.0
60.6
Financial liabilities           
Deposits$1,491.4
$—
$1,491.8
$—
$1,491.8
 $1,447.4
$—
$1,447.5
$—
$1,447.5
Federal funds purchased and securities loaned or sold under repurchase agreements200.7
—
200.7
—
200.7
 181.4
—
181.4
—
181.4
Short-term borrowings52.2
—
52.2
—
52.2
 62.1
—
62.1
—
62.1
Accounts payable and other liabilities175.8
0.1
172.2
3.1
175.4
 160.6
0.2
157.0
3.0
160.2
Beneficial interests issued by consolidated VIEs25.6
—
25.6
—
25.6
 20.2
—
20.2
—
20.2
Long-term debt and junior subordinated deferrable interest debentures220.8
—
221.6
3.3
224.9
 227.1
—
224.6
3.3
227.9
(a)Fair value is typically estimated using a discounted cash flow model that incorporates the characteristics of the underlying loans (including principal, contractual interest rate and contractual fees) and other key inputs, including expected lifetime credit losses, interest rates, prepayment rates, and primary origination or secondary market spreads. For certain loans, the fair value is measured based on the value of the underlying collateral. The difference between the estimated fair value and carrying value of a financial asset or liability is the result of the different methodologies used to determine fair value as compared with carrying value. For example, credit losses are estimated for a financial asset’s remaining life in a fair value calculation but are estimated for a loss emergence period in the allowance for loan loss calculation; future loan income (interest and fees) is incorporated in a fair value calculation but is generally not considered in the allowance for loan losses. For a further discussion of the Firm’s methodologies for estimating the fair value of loans and lending-related commitments, refer to Valuation hierarchy on pages 156–159 of JPMorgan Chase’s 2017 Annual Report.
(b)The prior period amounts have been revised to conform with the current period presentation.
The majority of the Firm’s lending-related commitments are not carried at fair value on a recurring basis on the Consolidated balance sheets. The carrying value of the wholesale allowance for lending-related commitments and the estimated fair value of these wholesale lending-related commitments were as follows for the periods indicated.
June 30, 2018 December 31, 2017June 30, 2019 December 31, 2018
 Estimated fair value hierarchy   Estimated fair value hierarchy  Estimated fair value hierarchy   Estimated fair value hierarchy 
(in billions)
Carrying value(a)
Level 1Level 2Level 3Total estimated fair value 
Carrying value(a)
Level 1Level 2Level 3Total estimated fair value
Carrying value(a)
Level 1Level 2Level 3Total estimated fair value 
Carrying value(a)
Level 1Level 2Level 3
Total estimated fair value(b)
Wholesale lending-related commitments$1.1
$—
$—
$1.7
$1.7
 $1.1
$—
$—
$1.6
$1.6
$1.1
$—
$—
$1.8
$1.8
 $1.0
$—
$—
$1.9
$1.9
(a)Excludes the current carrying values of the guarantee liability and the offsetting asset, each of which is recognized at fair value at the inception of the guarantees.
(b)The prior period amounts have been revised to conform with the current period presentation.

The Firm does not estimate the fair value of consumer lending-related commitments. In many cases, the Firm can reduce or cancel these commitments by providing the borrower notice or, in some cases as permitted by law, without notice. For a further discussion of the valuation of lending-related commitments, refer to page 157161 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Equity securities without readily determinable fair values
As a result of the adoption of the recognition and measurement guidance and the election of the measurement alternative in the first quarter of 2018, the Firm measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer, with such changes recognized in earnings.
In its determination of the new carrying values upon observable price changes, the Firm may adjust the prices if deemed necessary to arrive at the Firm’s estimated fair values. Such adjustments may include adjustments to reflect the different rights and obligations of similar securities, and other adjustments that are consistent with the Firm’s valuation techniques for private equity direct investments.
The following table presents the carrying value of equity securities without readily determinable fair values still held as of June 30, 2018, that are measured under the measurement alternative and the related adjustments recorded during the periods presented for those securities with observable price changes. These securities are included in the nonrecurring fair value tables when applicable price changes are observable.
 As of or for the
(in millions)Three months ended June 30, 2018 Six months ended June 30, 2018
Other assets   
Carrying value$1,471
 $1,471
Upward carrying value changes67
 562
Downward carrying value changes/impairment(26) (28)

Included in other assets above is the Firm’s interest in approximately 40 millionVisa Class B shares, recorded at a nominal carrying value. These shares are subject to certain transfer restrictions currently and will be converted into Visa Class A shares upon final resolution of certain litigation matters involving Visa. The conversion rate of Visa Class B shares into Visa Class A shares is 1.6298 at June 30, 2018, and may be adjusted by Visa depending on developments related to the litigation matters.



Note 3 – Fair value option
For a discussion of the primary financial instruments for which the fair value option was elected, including the basis for those elections and the determination of instrument-specific credit risk, where relevant, refer to Note 3 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Changes in fair value under the fair value option election
The following table presents the changes in fair value included in the Consolidated statements of income for the three months ended June 30, 2019 and 2018, and 2017, for items for which the fair value option was elected. The profit and loss information presented below only includes the financial instruments that were elected to be measured at fair value; related risk management instruments, which are required to be measured at fair value, are not included in the table.
 Three months ended June 30,

2019 2018
(in millions)Principal transactions
All other income
Total changes in fair
value recorded (e)
 Principal transactions All other income
Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements$22

$—

$22

 $(33) $—
 $(33)
Securities borrowed43

—

43

 29
 —
 29
Trading assets: 
 
 
      
Debt and equity instruments, excluding loans204

—

204

 (259) 1
(c) 
(258)
Loans reported as trading assets: 
 
 
      
Changes in instrument-specific credit risk199

2
(c) 
201

 214
 (1)
(c) 
213
Other changes in fair value120

328
(c) 
448

 29
 65
(c) 
94
Loans: 
 
 
      
Changes in instrument-specific credit risk(13)
—

(13)
 (1) —
 (1)
Other changes in fair value1

—

1

 (1) —
 (1)
Other assets2

3
(d) 
5

 —
 (3)
(d) 
(3)
Deposits(a)
(696)
—

(696)
 129
 —
 129
Federal funds purchased and securities loaned or sold under repurchase agreements(15)
—

(15)
 9
 —
 9
Short-term borrowings(a)
(70)
—

(70)
 (162) —
 (162)
Trading liabilities2

—

2

 6
 —
 6
Other liabilities(4)
—

(4)
 —
 —
 —
Long-term debt(a)(b)
(1,770)
—

(1,770)
 196
 —
 196


























 Three months ended June 30,

2018 2017
(in millions)Principal transactions
All other income
Total changes in fair
value recorded (e)
 Principal transactions All other income
Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements$(33)
$—

$(33)
 $(12) $—
 $(12)
Securities borrowed29

—

29

 13
 —
 13
Trading assets: 
 



      
Debt and equity instruments, excluding loans(259)
1
(c) 
(258)
 334
 2
(c) 
336
Loans reported as trading assets: 
 



      
Changes in instrument-specific credit risk214

(1)
(c) 
213

 69
 9
(c) 
78
Other changes in fair value29

65
(c) 
94

 43
 229
(c) 
272
Loans: 
 



      
Changes in instrument-specific credit risk(1)
—

(1)
 —
 —
 —
Other changes in fair value(1)
—

(1)
 1
 3
(c) 
4
Other assets—

(3)
(d) 
(3)
 3
 (16)
(d) 
(13)
Deposits(a)
129

—

129

 (86) —
 (86)
Federal funds purchased and securities loaned or sold under repurchase agreements9

—

9

 (3) —
 (3)
Short-term borrowings(a)
(162)
—

(162)
 43
 —
 43
Trading liabilities6

—

6

 —
 —
 —
Beneficial interests issued by consolidated VIEs—

—

—

 —
 —
 —
Long-term debt(a)(b)
196

—

196

 (170) —
 (170)


Six months ended June 30,Six months ended June 30,
2018 20172019 2018
(in millions)Principal transactions All other income
Total changes in fair value recorded(e)
 Principal transactions All other income
Total changes in fair value recorded(e)
Principal transactions All other income
Total changes in fair
value recorded (e)
 Principal transactions All other income
Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements$(26) $—
 $(26)  $(33) $—
 $(33)$33
 $—
 $33
 $(26) $—
 $(26)
Securities borrowed2
 —
 2
 90
 —
 90
80
 —
 80
 2
 —
 2
Trading assets:  —
                   
Debt and equity instruments, excluding loans(445) 1
(c) 
(444) 695
 2
(c) 
697
1,558
 —
 1,558
 (445) 1
(c) 
(444)
Loans reported as trading assets:  —
                   
Changes in instrument-specific credit risk336
 4
(c) 
340
 243
 15
(c) 
258
447
 5
(c) 
452
 336
 4
(c) 
340
Other changes in fair value70
 (25)
(c) 
45
 77
 352
(c) 
429
200
 565
(c) 
765
 70
 (25)
(c) 
45
Loans:  —
                   
Changes in instrument-specific credit risk(1) —
 (1) (1) —
 (1)(8) —
 (8) (1) —
 (1)
Other changes in fair value(2) —
 (2) 1
 3
(c) 
4
1
 —
 1
 (2) —
 (2)
Other assets2
 (10)
(d) 
(8) 7
 (22)
(d) 
(15)3
 3
(d) 
6
 2
 (10)
(d) 
(8)
Deposits(a)
339
 —
 339
 (245) —
 (245)(1,192) —
 (1,192) 339
 —
 339
Federal funds purchased and securities loaned or sold under repurchase agreements19
 —
 19
 2
 —
 2
(20) —
 (20) 19
 —
 19
Other borrowed funds(a)
111
 —
 111
 (431) —
 (431)
Short-term borrowings(a)
(774) —
 (774) 111
 —
 111
Trading liabilities(1) —
 (1) (1) —
 (1)5
 —
 5
 (1) —
 (1)
Beneficial interests issued by consolidated VIEs—
 —
 —
 —
 —
 —
Other liabilities—
 —
 —
 —
 —
 —
(8) —
 (8) —
 —
 —
Long-term debt(a)(b)
1,227
 —
 1,227
 (923) —
 (923)(4,606) —
 (4,606) 1,227
 —
 1,227
(a)Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected is recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactiontransactions revenue were not material for the three and six months ended June 30, 20182019 and 2017,2018, respectively.
(b)Long-term debt measured at fair value predominantly relates to structured notes. Although the risk associated with the structured notes is actively managed, the gains/(losses) reported in this table do not include the income statement impact of the risk management instruments used to manage such risk.
(c)Reported in mortgage fees and related income.
(d)Reported in other income.
(e)Changes in fair value exclude contractual interest, which is included in interest income and interest expense for all instruments other than hybrid financial instruments. For further information regarding interest income and interest expense, refer to Note 6.





Difference between aggregate fair value and aggregate remaining contractual principal balance outstanding
The following table reflects the difference between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of June 30, 2018,2019, and December 31, 2017, 2018, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected.
June 30, 2018 December 31, 2017June 30, 2019 December 31, 2018
(in millions)Contractual principal outstanding
Fair valueFair value over/(under) contractual principal outstanding Contractual principal outstanding Fair valueFair value over/(under) contractual principal outstandingContractual principal outstanding
Fair valueFair value over/(under) contractual principal outstanding Contractual principal outstanding Fair valueFair value over/(under) contractual principal outstanding
Loans(a)







    






    
Nonaccrual loans






    






    
Loans reported as trading assets$4,078

$1,159
$(2,919) $4,219
 $1,371
$(2,848)$4,038

$1,231
$(2,807) $4,240
 $1,350
$(2,890)
Loans—

—
—
 39
 —
(39)124

72
(52) 39
 —
(39)
Subtotal4,078

1,159
(2,919) 4,258
 1,371
(2,887)4,162

1,303
(2,859) 4,279
 1,350
(2,929)
All other performing loans






    






    
Loans reported as trading assets46,105

44,718
(1,387) 38,157
 36,590
(1,567)43,722

42,727
(995) 42,215
 40,403
(1,812)
Loans3,167

3,076
(91) 2,539
 2,508
(31)4,284

4,237
(47) 3,186
 3,151
(35)
Total loans$53,350

$48,953
$(4,397) $44,954
 $40,469
$(4,485)$52,168

$48,267
$(3,901) $49,680
 $44,904
$(4,776)
Long-term debt






    






    
Principal-protected debt$29,380
(c) 
$25,563
$(3,817) $26,297
(c) 
$23,848
$(2,449)$39,559
(c) 
$36,681
$(2,878) $32,674
(c) 
$28,718
$(3,956)
Nonprincipal-protected debt(b)
NA

24,533
NA
 NA
 23,671
NA
NA

31,147
NA
 NA
 26,168
NA
Total long-term debtNA

$50,096
NA
 NA
 $47,519
NA
NA

$67,828
NA
 NA
 $54,886
NA
Long-term beneficial interests   

           
Nonprincipal-protected debtNA

$1
NA
 NA
 $45
NA
Nonprincipal-protected debt(b)
NA

$—
NA
 NA
 $28
NA
Total long-term beneficial interestsNA

$1
NA
 NA
 $45
NA
NA

$—
NA
 NA
 $28
NA
(a)There were no performing loans that were ninety days or more past due as of June 30, 2018,2019, and December 31, 2017,2018, respectively.
(b)Remaining contractual principal is not applicable to nonprincipal-protected notes.structured notes and long-term beneficial interests. Unlike principal-protected structured notes and long-term beneficial interests, for which the Firm is obligated to return a stated amount of principal at the maturity, of the note, nonprincipal-protected structured notes and long-term beneficial interests do not obligate the Firm to return a stated amount of principal at maturity, but for structured notes to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal protectedprincipal-protected notes.
(c)Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflects the contractual principal payment at maturity or, if applicable, the contractual principal payment at the Firm’s next call date.
At June 30, 2018,2019, and December 31, 2017, 2018, the contractual amount of lending-related commitments for which the fair value option was elected was $10.9 $9.7 billion and $7.4$6.9 billion, respectively,with a corresponding fair value of $(225) $(95) million and $(76)$(82) million, respectively. For further information regarding off-balance sheet lending-related financial instruments, refer to Note 27 of JPMorgan Chase’s 2017 Annual Report,2018 Form 10-K, and Note 2022 of this Form 10-Q.
Structured note products by balance sheet classification and risk component
The following table presents the fair value of the structured notes, issued by the Firm, by balance sheet classification and the primary risk type.

June 30, 2019
December 31, 2018
(in millions)Long-term debtShort-term borrowingsDepositsTotal
Long-term debtShort-term borrowingsDepositsTotal
Risk exposure
















Interest rate$31,670
$66
$21,048
$52,784

$24,137
$62
$12,372
$36,571
Credit4,848
639
—
5,487

4,009
995
—
5,004
Foreign exchange3,580
85
37
3,702

3,169
157
38
3,364
Equity25,338
6,536
8,278
40,152

21,382
5,422
7,368
34,172
Commodity467
6
1,320
1,793

372
34
1,207
1,613
Total structured notes$65,903
$7,332
$30,683
$103,918

$53,069
$6,670
$20,985
$80,724


June 30, 2018
December 31, 2017
(in millions)Long-term debtShort-term borrowingsDepositsTotal
Long-term debtShort-term borrowingsDepositsTotal
Risk exposure
















Interest rate$22,895
$120
$8,352
$31,367

$22,056
$69
$8,058
$30,183
Credit3,976
1,134
—
5,110

4,329
1,312
—
5,641
Foreign exchange2,801
91
39
2,931

2,841
147
38
3,026
Equity19,688
6,969
6,891
33,548

17,581
7,106
6,548
31,235
Commodity259
13
2,256
2,528

230
15
4,468
4,713
Total structured notes$49,619
$8,327
$17,538
$75,484

$47,037
$8,649
$19,112
$74,798






Note 4 – Derivative instruments
JPMorgan Chase makes markets in derivatives for clients and also uses derivatives to hedge or manage its own risk exposures. For a further discussion of the Firm’s use of and accounting policies regarding derivative instruments, refer to Note 5 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The Firm’s disclosures are based on the accounting treatment and purpose of these derivatives. A limited number of the Firm’s derivatives are designated in hedge
accounting relationships and are disclosed according to the type of hedge (fair value hedge, cash flow hedge, or net investment hedge). Derivatives not designated in hedge accounting relationships include certain derivatives that are used to manage certain risks associated with specified assets or liabilities (“specified risk management” positions) as well as derivatives used in the Firm’s market-making businesses or for other purposes.
Derivatives designated as hedges
The adoption of the new hedge accounting guidance in the first quarter of 2018 better aligns hedge accounting with the economics of the Firm’s risk management activities. For additional information, refer to Note 17.
To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. In addition, for a derivative to be designated as a hedge, the risk management objective and strategy must be documented. Hedge documentation must identify the derivative hedging instrument, the asset or liability or forecasted transaction and type of risk to be hedged, and how the effectiveness of the derivative is assessed prospectively and retrospectively. To assess effectiveness, the Firm uses statistical methods such as regression analysis, nonstatistical methods such as dollar-value comparisons of the change in the fair value of the derivative to the change in the fair value or cash flows of the hedged item, and qualitative comparisons of critical terms and the evaluation of any changes in those terms. The extent to which a derivative has been, and is expected to continue to be, highly effective at offsetting changes in the fair value or
cash flows of the hedged item must be assessed and documented at least quarterly. If it is determined that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued.
For qualifying fair value hedges, changes in the fair value of the derivative, and in the value of the hedged item for the risk being hedged, are recognized in earnings. Certain amounts excluded from the assessment of effectiveness are recorded in OCI and recognized in earnings through an amortization approach over the life of the derivative. If the hedge relationship is terminated, then the adjustment to the hedged item continues to be reported as part of the basis of the hedged item, and for benchmark interest rate hedges, is amortized to earnings as a yield adjustment. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item - primarily net interest income and principal transactions revenue.
For qualifying cash flow hedges, changes in the fair value of the derivative are recorded in OCI and recognized in earnings as the hedged item affects earnings. Derivative amounts affecting earnings are recognized consistent with the classification of the hedged item - primarily interest income, interest expense, noninterest revenue and compensation expense. If the hedge relationship is terminated, then the change in value of the derivative recorded in AOCI is recognized in earnings when the cash flows that were hedged affect earnings. For hedge relationships that are discontinued because a forecasted transaction is not expected to occur according to the original hedge forecast, any related derivative values recorded in AOCI are immediately recognized in earnings.
For qualifying net investment hedges, changes in the fair value of the derivatives due to changes in spot foreign exchange rates are recorded in OCI as translation adjustments. Amounts excluded from the assessment of effectiveness are recorded directly in earnings.



The following table outlines the Firm’s primary uses of derivatives and the related hedge accounting designation or disclosure category.
Type of DerivativeUse of DerivativeDesignation and disclosure
Affected
segment or unit
10-Q page reference
Manage specifically identified risk exposures in qualifying hedge accounting relationships:   
•
Interest rate
Hedge fixed rate assets and liabilitiesFair value hedgeCorporate115-116108-109
•
Interest rate
Hedge floating-rate assets and liabilitiesCash flow hedgeCorporate117110
•
Foreign exchange
Hedge foreign currency-denominated assets and liabilitiesFair value hedgeCorporate115-116108-109
•
Foreign exchange
Hedge foreign currency-denominated forecasted revenue and expenseCash flow hedgeCorporate117110
•
Foreign exchange
Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entitiesNet investment hedgeCorporate118111
•
Commodity
Hedge commodity inventoryFair value hedgeCIB115-116108-109
Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships:   
•
Interest rate
Manage the risk of the mortgage pipeline, warehouse loans and MSRsSpecified risk managementCCB118111
•
Credit
Manage the credit risk of wholesale lending exposuresSpecified risk managementCIB118111
•
Interest rate and
foreign exchange
Manage the risk of certain other specified assets and liabilitiesSpecified risk managementCorporate118111
Market-making derivatives and other activities:   
•
Various
Market-making and related risk managementMarket-making and otherCIB118111
•
Various
Other derivativesMarket-making and otherCIB, AWM, Corporate118111



Notional amount of derivative contracts
The following table summarizes the notional amount of derivative contracts outstanding as of June 30, 2018,2019, and December 31, 2017.2018.
Notional amounts(b)
Notional amounts(b)
(in billions)June 30, 2018
December 31, 2017
June 30, 2019
December 31, 2018
Interest rate contracts  
Swaps$25,329
$21,043
$25,583
$21,763
Futures and forwards6,335
4,904
4,600
3,562
Written options4,402
3,576
4,572
3,997
Purchased options4,691
3,987
5,054
4,322
Total interest rate contracts40,757
33,510
39,809
33,644
Credit derivatives(a)
1,528
1,522
1,294
1,501
Foreign exchange contracts  
Cross-currency swaps3,920
3,953
3,824
3,548
Spot, futures and forwards7,143
5,923
6,951
5,871
Written options910
786
922
835
Purchased options898
776
939
830
Total foreign exchange contracts12,871
11,438
12,636
11,084
Equity contracts  
Swaps377
367
365
346
Futures and forwards87
90
122
101
Written options579
531
640
528
Purchased options529
453
573
490
Total equity contracts1,572
1,441
1,700
1,465
Commodity contracts  
Swaps144
116
148
134
Spot, futures and forwards177
168
161
156
Written options142
98
143
135
Purchased options128
93
126
120
Total commodity contracts591
475
578
545
Total derivative notional amounts$57,319
$48,386
$56,017
$48,239
(a)For more information on volumes and types of credit derivative contracts, refer to the Credit derivatives discussion on page 119.112.
(b)Represents the sum of gross long and gross short third-party notional derivative contracts.
While the notional amounts disclosed above give an indication of the volume of the Firm’s derivatives activity, the notional amounts significantly exceed, in the Firm’s view, the possible losses that could arise from such transactions. For most derivative transactions,contracts, the notional amount is not exchanged; it is used simply as a reference to calculate payments.


Impact of derivatives on the Consolidated balance sheets
The following table summarizes information on derivative receivables and payables (before and after netting adjustments) that are reflected on the Firm’s Consolidated balance sheets as of June 30, 2018,2019, and December 31, 2017, 2018, by accounting designation (e.g., whether the derivatives were designated in qualifying hedge accounting relationships or not) and contract type.
Free-standing derivative receivables and payables(a)
          
 Gross derivative receivables   Gross derivative payables  
June 30, 2019
(in millions)		Not designated as hedges Designated as hedges Total derivative receivables 
Net derivative receivables(b)
 Not designated as hedges 
Designated
as hedges
 Total derivative payables 
Net derivative payables(b)
Trading assets and liabilities               
Interest rate$333,694
 $862
 $334,556
 $26,488
 $301,047
 $2
 $301,049
 $8,883
Credit15,665
 —
 15,665
 633
 17,231
 —
 17,231
 2,256
Foreign exchange143,659
 441
 144,100
 10,663
 146,920
 697
 147,617
 11,126
Equity44,930
 —
 44,930
 9,205
 47,698
 —
 47,698
 11,177
Commodity16,739
 132
 16,871
 5,889
 19,280
 74
 19,354
 8,037
Total fair value of trading assets and liabilities$554,687
 $1,435
 $556,122
 $52,878
 $532,176
 $773
 $532,949
 $41,479
                
 Gross derivative receivables   Gross derivative payables  
December 31, 2018
(in millions)		Not designated as hedges Designated as hedges Total derivative receivables 
Net derivative receivables(b)
 Not designated as hedges Designated
as hedges		 Total derivative payables 
Net derivative payables(b)
Trading assets and liabilities               
Interest rate$267,871
 $833
 $268,704
 $23,214
 $242,782
 $—
 $242,782
 $7,784
Credit20,095
 —
 20,095
 612
 20,276
 —
 20,276
 1,667
Foreign exchange167,057
 628
 167,685
 13,450
 164,392
 825
 165,217
 12,785
Equity49,285
 —
 49,285
 9,946
 51,195
 —
 51,195
 10,161
Commodity20,223
 247
 20,470
 6,991
 22,297
 121
 22,418
 9,372
Total fair value of trading assets and liabilities$524,531
 $1,708
 $526,239
 $54,213
 $500,942
 $946
 $501,888
 $41,769
Free-standing derivative receivables and payables(a)
          
 Gross derivative receivables   Gross derivative payables  
June 30, 2018
(in millions)		Not designated as hedges Designated as hedges Total derivative receivables 
Net derivative receivables(b)
 Not designated as hedges 
Designated
as hedges
 Total derivative payables 
Net derivative payables(b)
Trading assets and liabilities               
Interest rate$280,176
 $835
 $281,011
 $22,971
 $253,982
 $1
 $253,983
 $8,615
Credit20,934
 —
 20,934
 624
 20,778
 —
 20,778
 1,502
Foreign exchange195,436
 1,036
 196,472
 16,763
 186,487
 1,080
 187,567
 12,521
Equity44,965
 —
 44,965
 10,176
 48,384
 —
 48,384
 11,482
Commodity21,637
 231
 21,868
 7,976
 23,049
 101
 23,150
 8,391
Total fair value of trading assets and liabilities$563,148
 $2,102
 $565,250
 $58,510
 $532,680
 $1,182
 $533,862
 $42,511
                
 Gross derivative receivables   Gross derivative payables  
December 31, 2017
(in millions)		Not designated as hedges Designated as hedges Total derivative receivables 
Net derivative receivables(b)
 Not designated as hedges Designated
as hedges		 Total derivative payables 
Net derivative payables(b)
Trading assets and liabilities               
Interest rate$314,962
(c) 
$1,030
(c) 
$315,992
 $24,673
 $284,433
(c) 
$3
(c) 
$284,436
 $7,129
Credit23,205
 —
 23,205
 869
 23,252
 —
 23,252
 1,299
Foreign exchange159,740
 491
 160,231
 16,151
 154,601
 1,221
 155,822
 12,473
Equity40,040
 —
 40,040
 7,882
 45,395
 —
 45,395
 9,192
Commodity20,066
 19
 20,085
 6,948
 21,498
 403
 21,901
 7,684
Total fair value of trading assets and liabilities$558,013
(c) 
$1,540
(c) 
$559,553
 $56,523
 $529,179
(c) 
$1,627
(c) 
$530,806
 $37,777

(a)Balances exclude structured notes for which the fair value option has been elected. Refer to Note 3 for further information.
(b)As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral receivables and payables when a legally enforceable master netting agreement exists.
(c)The prior period amounts have been revised to conform with the current period presentation.




Derivatives netting
The following tables present, as of June 30, 2018,2019, and December 31, 2017, 2018, gross and net derivative receivables and payables by contract and settlement type. Derivative receivables and payables, as well as the related cash collateral from the same counterparty have been netted on the Consolidated balance sheets where the Firm has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the Consolidated balance sheets, and those derivative receivables and payables are shown separately in the tables below.
In addition to the cash collateral received and transferred that is presented on a net basis with derivative receivables and payables, the Firm receives and transfers additional collateral (financial instruments and cash). These amounts mitigate counterparty credit risk associated with the Firm’s derivative instruments, but are not eligible for net presentation:
•
collateral that consists of non-cash financial instruments (generally U.S. government and agency securities and other G7 government securities) and cash collateral held at third-party custodians, which are shown separately as “Collateral not nettable on the Consolidated balance sheets” in the tables below, up to the fair value exposure amount.
•
the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables below; and
•
collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables below.
 June 30, 2019 December 31, 2018
(in millions)Gross derivative receivablesAmounts netted on the Consolidated balance sheetsNet derivative receivables Gross derivative receivables Amounts netted on the Consolidated balance sheetsNet derivative receivables
U.S. GAAP nettable derivative receivables           
Interest rate contracts:           
Over-the-counter (“OTC”)$317,682
$(295,900) $21,782
 $258,227
 $(239,498) $18,729
 
OTC–cleared11,535
(11,488) 47
 6,404
 (5,856) 548
 
Exchange-traded(a)
747
(680) 67
 322
 (136) 186
 
Total interest rate contracts329,964
(308,068) 21,896
 264,953
 (245,490) 19,463
 
Credit contracts:           
OTC11,358
(10,938) 420
 12,648
 (12,261) 387
 
OTC–cleared4,142
(4,094) 48
 7,267
 (7,222) 45
 
Total credit contracts15,500
(15,032) 468
 19,915
 (19,483) 432
 
Foreign exchange contracts:           
OTC141,257
(133,171) 8,086
 163,862
 (153,988) 9,874
 
OTC–cleared276
(260) 16
 235
 (226) 9
 
Exchange-traded(a)
18
(6) 12
 32
 (21) 11
 
Total foreign exchange contracts141,551
(133,437) 8,114
 164,129
 (154,235) 9,894
 
Equity contracts:           
OTC22,627
(20,219) 2,408
 26,178
 (23,879) 2,299
 
Exchange-traded(a)
18,885
(15,506) 3,379
 18,876
 (15,460) 3,416
 
Total equity contracts41,512
(35,725) 5,787
 45,054
 (39,339) 5,715
 
Commodity contracts:           
OTC6,917
(5,082) 1,835
 7,448
 (5,261) 2,187
 
OTC–cleared13
(13) —
 —
 —
 —
 
Exchange-traded(a)
6,007
(5,887) 120
 8,815
 (8,218) 597
 
Total commodity contracts12,937
(10,982) 1,955
 16,263
 (13,479) 2,784
 
Derivative receivables with appropriate legal opinion541,464
(503,244) 38,220
(d) 
510,314
 (472,026) 38,288
(d) 
Derivative receivables where an appropriate legal opinion has not been either sought or obtained14,658
  14,658
 15,925
   15,925
 
Total derivative receivables recognized on the Consolidated balance sheets$556,122
  $52,878
 $526,239
   $54,213
 
Collateral not nettable on the Consolidated balance sheets(b)(c)
   (12,168)     (13,046) 
Net amounts   $40,710
     $41,167
 

collateral that consists of non-cash financial instruments (generally U.S. government and agency securities and other G7 government securities) and cash collateral held at third party custodians, which are shown separately as “Collateral not nettable on the Consolidated balance sheets” in the tables below, up to the fair value exposure amount.
the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables below; and
collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables below.

 June 30, 2018 December 31, 2017
(in millions)Gross derivative receivablesAmounts netted on the Consolidated balance sheetsNet derivative receivables Gross derivative receivables 
Amounts netted
on the Consolidated balance sheets
Net derivative receivables
U.S. GAAP nettable derivative receivables          
Interest rate contracts:          
Over-the-counter (“OTC”)$269,291
$(249,903) $19,388
 $305,569
 $(284,917) $20,652
OTC–cleared7,958
(7,936) 22
 6,531
 (6,318) 213
Exchange-traded(a)
310
(201) 109
 185
 (84) 101
Total interest rate contracts277,559
(258,040) 19,519
 312,285
 (291,319) 20,966
Credit contracts:          
OTC12,588
(12,244) 344
 15,390
 (15,165) 225
OTC–cleared8,137
(8,066) 71
 7,225
 (7,170) 55
Total credit contracts20,725
(20,310) 415
 22,615
 (22,335) 280
Foreign exchange contracts:          
OTC192,088
(179,280) 12,808
 155,289
 (142,420) 12,869
OTC–cleared417
(408) 9
 1,696
 (1,654) 42
Exchange-traded(a)
39
(21) 18
 141
 (7) 134
Total foreign exchange contracts192,544
(179,709) 12,835
 157,126
 (144,081) 13,045
Equity contracts:          
OTC24,300
(21,376) 2,924
 22,024
 (19,917) 2,107
Exchange-traded(a)
15,836
(13,413) 2,423
 14,188
 (12,241) 1,947
Total equity contracts40,136
(34,789) 5,347
 36,212
 (32,158) 4,054
Commodity contracts:          
OTC11,443
(4,553) 6,890
 10,903
 (4,436) 6,467
Exchange-traded(a)
9,806
(9,339) 467
 8,854
 (8,701) 153
Total commodity contracts21,249
(13,892) 7,357
 19,757
 (13,137) 6,620
Derivative receivables with appropriate legal opinion552,213
(506,740)
(b) 
45,473
 547,995
 (503,030)
(b) 
44,965
Derivative receivables where an appropriate legal opinion has not been either sought or obtained13,037
  13,037
 11,558
   11,558
Total derivative receivables recognized on the Consolidated balance sheets$565,250
  $58,510
 $559,553
   $56,523
Collateral not nettable on the Consolidated balance sheets(c)(d)
   (13,572)     (13,363)
Net amounts   $44,938
     $43,160

June 30, 2018 December 31, 2017 June 30, 2019 December 31, 2018
(in millions)(in millions)Gross derivative payablesAmounts netted on the Consolidated balance sheetsNet derivative payables Gross derivative payables 
Amounts netted
on the Consolidated balance sheets
Net derivative payables(in millions)Gross derivative payablesAmounts netted on the Consolidated balance sheetsNet derivative payables Gross derivative payables Amounts netted on the Consolidated balance sheetsNet derivative payables
U.S. GAAP nettable derivative payablesU.S. GAAP nettable derivative payables         U.S. GAAP nettable derivative payables          
Interest rate contracts:Interest rate contracts:         Interest rate contracts:          
OTCOTC$244,282
$(237,947) $6,335
 $276,960
 $(271,294) $5,666
OTC$286,199
$(279,425) $6,774
 $233,404
 $(228,369) $5,035
 
OTC–clearedOTC–cleared7,301
(7,220) 81
 6,004
 (5,928) 76
OTC–cleared12,460
(12,044) 416
 7,163
 (6,494) 669
 
Exchange-traded(a)
Exchange-traded(a)
210
(201) 9
 127
 (84) 43
Exchange-traded(a)
783
(697) 86
 210
 (135) 75
 
Total interest rate contractsTotal interest rate contracts251,793
(245,368) 6,425
 283,091
 (277,306) 5,785
Total interest rate contracts299,442
(292,166) 7,276
 240,777
 (234,998) 5,779
 
Credit contracts:Credit contracts:         Credit contracts:          
OTCOTC13,255
(11,898) 1,357
 16,194
 (15,170) 1,024
OTC13,371
(11,347) 2,024
 13,412
 (11,895) 1,517
 
OTC–clearedOTC–cleared7,420
(7,378) 42
 6,801
 (6,784) 17
OTC–cleared3,678
(3,628) 50
 6,716
 (6,714) 2
 
Total credit contractsTotal credit contracts20,675
(19,276) 1,399
 22,995
 (21,954) 1,041
Total credit contracts17,049
(14,975) 2,074
 20,128
 (18,609) 1,519
 
Foreign exchange contracts:Foreign exchange contracts:         Foreign exchange contracts:          
OTCOTC183,951
(174,600) 9,351
 150,966
 (141,789) 9,177
OTC144,667
(136,225) 8,442
 160,930
 (152,161) 8,769
 
OTC–clearedOTC–cleared450
(439) 11
 1,555
 (1,553) 2
OTC–cleared260
(260) —
 274
 (268) 6
 
Exchange-traded(a)
Exchange-traded(a)
23
(7) 16
 98
 (7) 91
Exchange-traded(a)
15
(6) 9
 16
 (3) 13
 
Total foreign exchange contractsTotal foreign exchange contracts184,424
(175,046) 9,378
 152,619
 (143,349) 9,270
Total foreign exchange contracts144,942
(136,491) 8,451
 161,220
 (152,432) 8,788
 
Equity contracts:Equity contracts:         Equity contracts:          
OTCOTC28,247
(23,402) 4,845
 28,193
 (23,969) 4,224
OTC26,349
(21,015) 5,334
 29,437
 (25,544) 3,893
 
Exchange-traded(a)
Exchange-traded(a)
14,243
(13,500) 743
 12,720
 (12,234) 486
Exchange-traded(a)
16,818
(15,506) 1,312
 16,285
 (15,490) 795
 
Total equity contractsTotal equity contracts42,490
(36,902) 5,588
 40,913
 (36,203) 4,710
Total equity contracts43,167
(36,521) 6,646
 45,722
 (41,034) 4,688
 
Commodity contracts:Commodity contracts:         Commodity contracts:          
OTCOTC13,215
(5,492) 7,723
 12,645
 (5,508) 7,137
OTC8,153
(5,434) 2,719
 8,930
 (4,838) 4,092
 
OTC–clearedOTC–cleared13
(13) —
 —
 —
 —
 
Exchange-traded(a)
Exchange-traded(a)
9,402
(9,267) 135
 8,870
 (8,709) 161
Exchange-traded(a)
6,193
(5,870) 323
 8,259
 (8,208) 51
 
Total commodity contractsTotal commodity contracts22,617
(14,759) 7,858
 21,515
 (14,217) 7,298
Total commodity contracts14,359
(11,317) 3,042
 17,189
 (13,046) 4,143
 
Derivative payables with appropriate legal opinionDerivative payables with appropriate legal opinion521,999
(491,351)
(b) 
30,648
 521,133
 (493,029)
(b) 
28,104
Derivative payables with appropriate legal opinion518,959
(491,470) 27,489
(d) 
485,036
 (460,119) 24,917
(d) 
Derivative payables where an appropriate legal opinion has not been either sought or obtainedDerivative payables where an appropriate legal opinion has not been either sought or obtained11,863
  11,863
 9,673
   9,673
Derivative payables where an appropriate legal opinion has not been either sought or obtained13,990
  13,990
 16,852
   16,852
 
Total derivative payables recognized on the Consolidated balance sheetsTotal derivative payables recognized on the Consolidated balance sheets$533,862
  $42,511
 $530,806
   $37,777
Total derivative payables recognized on the Consolidated balance sheets$532,949
  $41,479
 $501,888
   $41,769
 
Collateral not nettable on the Consolidated balance sheets(c)(d)
  (4,363)     (4,180)
Collateral not nettable on the Consolidated balance sheets(b)(c)
Collateral not nettable on the Consolidated balance sheets(b)(c)
  (6,959)     (4,449) 
Net amountsNet amounts  $38,148
     $33,597
Net amounts  $34,520
     $37,320
 
(a)Exchange-traded derivative balances that relate to futures contracts are settled daily.
(b)Net derivatives receivable included cash collateral netted of $57.3 billion and $55.5 billion at June 30, 2018, and December 31, 2017, respectively. Net derivatives payable included cash collateral netted of $41.9 billion and $45.5 billion related to OTC and OTC-cleared derivatives at June 30, 2018, and December 31, 2017, respectively.
(c)Represents liquid security collateral as well as cash collateral held at third partythird-party custodians related to derivative instruments where an appropriate legal opinion has been obtained. For some counterparties, the collateral amounts of financial instruments may exceed the derivative receivables and derivative payables balances. Where this is the case, the total amount reported is limited to the net derivative receivables and net derivative payables balances with that counterparty.
(d)(c)Derivative collateral relates only to OTC and OTC-cleared derivative instruments.
(d)Net derivatives receivable included cash collateral netted of $65.0 billion and $55.2 billion at June 30, 2019, and December 31, 2018, respectively. Net derivatives payable included cash collateral netted of $53.3 billion and $43.3 billion at June 30, 2019, and December 31, 2018, respectively. Derivative cash collateral relates to OTC and OTC-cleared derivative instruments.




Liquidity risk and credit-related contingent features
For a more detailed discussion of liquidity risk and credit-related contingent features related to the Firm’s derivative contracts, refer to Note 5 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The following table shows the aggregate fair value of net derivative payables related to OTC and OTC-cleared derivatives that contain contingent collateral or termination features that may be triggered upon a ratings downgrade, and the associated collateral the Firm has posted in the normal course of business, at June 30, 2018,2019, and
December 31, 2017.2018.
OTC and OTC-cleared derivative payables containing downgrade triggers
(in millions)June 30, 2019  December 31, 2018 
Aggregate fair value of net derivative payables $15,294
  $9,396
Collateral posted 14,023
  8,907

OTC and OTC-cleared derivative payables containing downgrade triggers
(in millions)June 30, 2018
December 31, 2017
Aggregate fair value of net derivative payables$10,796
$11,916
Collateral posted9,066
9,973



The following table shows the impact of a single-notch and two-notch downgrade of the long-term issuer ratings of JPMorgan Chase & Co. and its subsidiaries, predominantly JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank, N.A.”),
at June 30, 2018,2019, and December 31, 2017, 2018, related to OTC and OTC-cleared derivative contracts with contingent collateral or termination features that may be triggered upon a ratings downgrade. Derivatives contracts generally require additional collateral to be posted or terminations to be triggered when the predefined threshold rating is breached. A downgrade by a single rating agency that does not result in a rating lower than a preexisting corresponding rating provided by another major rating agency will generally not result in additional collateral, (except in certain instances in which additional initial margin may be required upon a ratings downgrade), nor in termination payments requirements. The liquidity impact in the table is calculated based upon a downgrade below the lowest current rating of the rating agencies referred to in the derivative contract.
Liquidity impact of downgrade triggers on OTC and OTC-cleared derivativesLiquidity impact of downgrade triggers on OTC and OTC-cleared derivatives   Liquidity impact of downgrade triggers on OTC and OTC-cleared derivatives   
June 30, 2018 December 31, 2017June 30, 2019 December 31, 2018
(in millions)Single-notch downgradeTwo-notch downgrade Single-notch downgradeTwo-notch downgradeSingle-notch downgradeTwo-notch downgrade Single-notch downgradeTwo-notch downgrade
Amount of additional collateral to be posted upon downgrade(a)
$118
$2,027
 $79
$1,989
$180
$1,228
 $76
$947
Amount required to settle contracts with termination triggers upon downgrade(b)
242
860
 320
650
302
1,613
 172
764
(a)Includes the additional collateral to be posted for initial margin.
(b)Amounts represent fair values of derivative payables, and do not reflect collateral posted.
Derivatives executed in contemplation of a sale of the underlying financial asset
In certain instances the Firm enters into transactions in which it transfers financial assets but maintains the economic exposure to the transferred assets by entering into a derivative with the same counterparty in contemplation of the initial transfer. The Firm generally accounts for such transfers as collateralized financing transactions as described in Note 10, but in limited circumstances they may qualify to be accounted for as a sale and a derivative under U.S. GAAP. The amount of such transfers accounted for as a sale where the associated derivative was outstanding at June 30, 2018 was not material at both June 30, 2019 and there were no such transfers at December 31, 2017.2018.



Impact of derivatives on the Consolidated statements of income
The following tables provide information related to gains and losses recorded on derivatives based on their hedge accounting designation or purpose.
Fair value hedge gains and losses
The following tables present derivative instruments, by contract type, used in fair value hedge accounting relationships, as well as pre-tax gains/(losses) recorded on such derivatives and the related hedged items for thethree and six months ended June 30, 2019 and 2018, and 2017, respectively. The Firm includes gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the related hedged item.
Gains/(losses) recorded in income 
Income statement impact of
excluded components(f)
 OCI impactGains/(losses) recorded in income 
Income statement impact of
excluded components(e)
 OCI impact
Three months ended June 30, 2018
(in millions)		DerivativesHedged itemsIncome statement impact Amortization approachChanges in fair value 
Derivatives - Gains/(losses) recorded in OCI(g)
Three months ended June 30, 2019
(in millions)		DerivativesHedged itemsIncome statement impact Amortization approachChanges in fair value 
Derivatives - Gains/(losses) recorded in OCI(f)
Contract type          
Interest rate(a)(b)
$(400)$553
$153
 $—
$152
 $—
$1,762
$(1,556)$206
 $—
$196
 $—
Foreign exchange(c)
376
(254)122
 (145)122
 (89)426
(301)125
 (229)125
 112
Commodity(d)
11
(18)(7) —
16
 —
(154)175
21
 —
17
 —
Total$(13)$281
$268
 $(145)$290
 $(89)$2,034
$(1,682)$352
 $(229)$338
 $112
Gains/(losses) recorded in income Income statement impact due to: Gains/(losses) recorded in income 
Income statement impact of
excluded components(e)

 OCI impact
Three months ended June 30, 2017
(in millions)		DerivativesHedged itemsIncome statement impact 
Hedge ineffectiveness(e)
Excluded components(f)
 
Three months ended June 30, 2018
(in millions)		DerivativesHedged itemsIncome statement impact Amortization approachChanges in fair value 
Derivatives - Gains/(losses) recorded in OCI(f)
Contract type         
Interest rate(a)(b)
$128
$46
$174
 $(13)$187
 $(400)$553
$153
 $—
$152
 $—
Foreign exchange(c)
(1,497)1,493
(4) —
(4) 376
(254)122
 (145)122
 (89)
Commodity(d)
97
(64)33
 3
30
 11
(18)(7) —
16
 —
Total$(1,272)$1,475
$203
 $(10)$213
 $(13)$281
$268
 $(145)$290
 $(89)
Gains/(losses) recorded in income 
Income statement impact of
excluded components(f)
 OCI impactGains/(losses) recorded in income 
Income statement impact of
excluded components(e)
 OCI impact
Six months ended June 30, 2018
(in millions)		DerivativesHedged itemsIncome statement impact Amortization approachChanges in fair value 
Derivatives - Gains/(losses) recorded in OCI(g)
Six months ended June 30, 2019
(in millions)		DerivativesHedged itemsIncome statement impact Amortization approachChanges in fair value 
Derivatives - Gains/(losses) recorded in OCI(f)
Contract type          
Interest rate(a)(b)
$(1,877)$2,182
$305
 $—
$299
 $—
$3,226
$(2,849)$377
 $—
$368
 $—
Foreign exchange(c)
520
(287)233
 (267)233
 (141)136
108
244
 (451)244
 115
Commodity(d)
195
(165)30
 —
34
 —
(442)469
27
 —
18
 —
Total$(1,162)$1,730
$568
 $(267)$566
 $(141)$2,920
$(2,272)$648
 $(451)$630
 $115
Gains/(losses) recorded in income Income statement impact due to: Gains/(losses) recorded in income 
Income statement impact of
excluded components(e)
 OCI impact
Six months ended June 30, 2017
(in millions)		DerivativesHedged itemsIncome statement impact 
Hedge ineffectiveness(e)
Excluded components(f)
 
Six months ended June 30, 2018
(in millions)		DerivativesHedged itemsIncome statement impact Amortization approachChanges in fair value 
Derivatives - Gains/(losses) recorded in OCI(f)
Contract type         
Interest rate(a)(b)
$(153)$577
$424
 $(14)$438
 $(1,877)$2,182
$305
 $—
$299
 $—
Foreign exchange(c)
(2,272)2,233
(39) —
(39) 520
(287)233
 (267)233
 (141)
Commodity(d)
(366)400
34
 19
15
 195
(165)30
 —
34
 —
Total$(2,791)$3,210
$419
 $5
$414
 $(1,162)$1,730
$568
 $(267)$566
 $(141)
(a)Primarily consists of hedges of the benchmark (e.g., London Interbank Offered Rate (“LIBOR”)) interest rate risk of fixed-rate long-term debt and AFS securities. Gains and losses were recorded in net interest income.
(b)Excludes the amortization expense associated with the inception hedge accounting adjustment applied to the hedged item. This expense is recorded in net interest income and substantially offsets the income statement impact of the excluded components. Also excludes the accrual of interest on interest rate swaps and the related hedged items.
(c)Primarily consists of hedges of the foreign currency risk of long-term debt and AFS securities for changes in spot foreign currency rates. Gains and losses related to the derivatives and the hedged items due to changes in foreign currency rates and the income statement impact of excluded components were recorded primarily in principal transactions revenue and net interest income.
(d)Consists of overall fair value hedges of physical commodities inventories that are generally carried at the lower of cost or net realizable value (net realizable value approximates fair value). Gains and losses were recorded in principal transactions revenue.
(e)Hedge ineffectiveness is the amount by which the gain or loss on the designated derivative instrument does not exactly offset the gain or loss on the hedged item attributable to the hedged risk.
(f)The assessment of hedge effectiveness excludes certain components of the changes in fair values of the derivatives and hedged items such as forward points on foreign exchange forward contracts, time values and cross-currency basis spreads. Under the new hedge accounting guidance, theThe initial amount of the excluded components may be amortized into income over the life of the derivative, or changes in fair value may be recognized in current period earnings.
(g)(f)Represents the change in value of amounts excluded from the assessment of effectiveness under the amortization approach, predominantly cross-currency basis spreads. The amount excluded at inception of the hedge is recognized in earnings over the life of the derivative.


As of June 30, 2019 and December 31, 2018, the following amounts were recorded on the Consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to impactreverse through the income statement in future periods (e.g., as adjustmentsan adjustment to yield or to securities gains/losses).yield.
 
Carrying amount of the hedged items(a)(b)
 
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:

 
Carrying amount of the hedged items(a)(b)
 
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:

June 30, 2018
(in millions)		 Active hedging relationships
Discontinued hedging relationships(d)
Total
June 30, 2019
(in millions)		 
Carrying amount of the hedged items(a)(b)
 Active hedging relationships
Discontinued hedging relationships(d)
Total
Assets      
Investment securities - AFS

 $47,402
(c) 
$(1,861)$488
$(1,373) $91,668
(c) 
$2,084
$292
$2,376
Liabilities        
Long-term debt $131,705
 $(1,413)$(11)$(1,424) $151,184
 $6,534
$55
$6,589
Beneficial interests issued by consolidated VIEs 7,665
 —
(51)(51) 5,208
 —
(15)(15)
    
 
Carrying amount of the hedged items(a)(b)
 Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:
December 31, 2018
(in millions)		 Active hedging relationships
Discontinued hedging relationships(d)
Total
Assets    
Investment securities - AFS
 $55,313
(c) 
$(1,105)$381
$(724)
Liabilities    
Long-term debt $139,915
 $141
$8
$149
Beneficial interests issued by consolidated VIEs 6,987
 —
(33)(33)
(a)Excludes physical commodities with a carrying value of $6.2$6.6 billion and $6.8 billion at June 30, 2019 and December 31, 2018, respectively, to which the Firm applies fair value hedge accounting. As a result of the application of hedge accounting, these inventories are carried at fair value, thus recognizing unrealized gains and losses in current periods. Given the Firm exits these positions at fair value, there is no incremental impact to net income in future periods.
(b)Excludes hedged items where only foreign currency risk is the designated hedged risk, as basis adjustments related to foreign currency hedges generally will not impactreverse through the income statement in future periods. TheAt June 30, 2019 and December 31, 2018, the carrying amount excluded for available-for-sale securities is $15.4$14.4 billion and $14.6 billion, respectively, and for long-term debt is $7.2 billion.$6.0 billion and $7.3 billion, respectively.
(c)Carrying amount represents the amortized cost.
(d)Represents hedged items no longer designated in qualifying fair value hedging relationships for which an associated basis adjustment exists at the balance sheet date.


Cash flow hedge gains and losses
The following tables present derivative instruments, by contract type, used in cash flow hedge accounting relationships, and the pre-tax gains/(losses) recorded on such derivatives, for the three and six months ended June 30, 2019 and 2018, and 2017, respectively. The Firm includes the gain/(loss) on the hedging derivative in the same line item in the Consolidated statements of income as the change in cash flows on the related hedged item.item.
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Three months ended June 30, 2019
(in millions)		Amounts reclassified from AOCI to incomeAmounts recorded in OCITotal change
in OCI
for period
Contract type 
Interest rate(a)
$2
$155
$153
Foreign exchange(b)
(28)(54)(26)
Total$(26)$101
$127
 
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Three months ended June 30, 2018
(in millions)		Amounts reclassified from AOCI to incomeAmounts recorded in OCITotal change
in OCI
for period		Amounts reclassified from AOCI to incomeAmounts recorded in OCITotal change
in OCI
for period
Contract type  
Interest rate(a)
$13
$(33)$(46)$13
$(33)$(46)
Foreign exchange(b)
6
(166)(172)6
(166)(172)
Total$19
$(199)$(218)$19
$(199)$(218)
 
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Three months ended June 30, 2017
(in millions)		Amounts reclassified from AOCI to income
Amounts recorded in OCI(c)
Total change
in OCI
for period
Contract type 
Interest rate(a)
$(6)$1
$7
Foreign exchange(b)
(59)22
81
Total$(65)$23
$88
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Six months ended June 30, 2018
(in millions)		Amounts reclassified from AOCI to incomeAmounts recorded in OCI
Total change
in OCI
for period
Six months ended June 30, 2019
(in millions)		Amounts reclassified from AOCI to incomeAmounts recorded in OCI
Total change
in OCI
for period
Contract type  
Interest rate(a)
$26
$(111)$(137)$4
$211
$207
Foreign exchange(b)
45
(132)(177)(69)31
100
Total$71
$(243)$(314)$(65)$242
$307
 
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Six months ended June 30, 2017
(in millions)		Amounts reclassified from AOCI to income
Amounts recorded in OCI(c)
Total change
in OCI
for period
Contract type 
Interest rate(a)
$(17)$12
$29
Foreign exchange(b)
(133)70
203
Total$(150)$82
$232
 Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Six months ended June 30, 2018
(in millions)		Amounts reclassified from AOCI to incomeAmounts recorded in OCI
Total change
in OCI
for period
Contract type   
Interest rate(a)
$26
$(111)$(137)
Foreign exchange(b)
45
(132)(177)
Total$71
$(243)$(314)
(a)Primarily consists of benchmark interest rate hedges of LIBOR-indexed floating-rate assets and floating-rate liabilities. Gains and losses were recorded in net interest income.
(b)Primarily consists of hedges of the foreign currency risk of non-U.S. dollar-denominated revenue and expense. The income statement classification of gains and losses follows the hedged item – primarily noninterest revenue and compensation expense.
(c)Represents the effective portion of changes in value of the related hedging derivative. Hedge ineffectiveness is the amount by which the cumulative gain or loss on the designated derivative instrument exceeds the present value of the cumulative expected change in cash flows on the hedged item attributable to the hedged risk. The Firm did not recognize any ineffectiveness on cash flow hedges during the three and six months ended June 30, 2017.
The Firm did not experience any forecasted transactions that failed to occur for the three and six months ended June 30, 20182019 and 2017.2018.
Over the next 12 months, the Firm expects that approximately $(54) $(53) million (after-tax) of net losses recorded in AOCI at June 30, 2018,2019, related to cash flow hedges will be recognized in income. For terminated cash flow hedges that have been terminated, the maximum length of time over which the derivative results recorded in AOCI will be recognized in earnings is approximately six years, corresponding to the timing of the originally hedged forecasted cash flows.
 
forecasted transactions are remaining is approximately five years.
For open cash flow hedges, the maximum length of time over which forecasted transactions are hedged is approximately seven years. The Firm’s longer-dated forecasted transactions relate to core lending and borrowing activities.


Net investment hedge gains and losses
The following table presents hedging instruments, by contract type, that were used in net investment hedge accounting relationships, and the pre-tax gains/(losses) recorded on such instruments for the three and six months ended June 30, 20182019 and 2017.2018.
Gains/(losses) recorded in income and other comprehensive income/(loss)
2018 20172019 2018
Three months ended June 30, (in millions)
Amounts recorded in
income(a)(c)
Amounts recorded in OCI 
Amounts recorded in
income(a)(c)
Amounts recorded in OCI(b)
Amounts recorded in
income(a)(b)
Amounts recorded in OCI 
Amounts recorded in
income(a)(b)(c)
Amounts recorded in OCI
Foreign exchange derivatives $4
 $1,204
 $(50) $(319) $27
 $(123) $—
 $1,204
                
2018 2017Gains/(losses) recorded in income and other comprehensive income/(loss)
2019 2018
Six months ended June 30, (in millions)
Amounts recorded in
income(a)(c)
Amounts recorded in OCI 
Amounts recorded in
income(a)(c)
Amounts recorded in OCI(b)
Amounts recorded in
income(a)(b)
Amounts recorded in OCI 
Amounts recorded in
income(a)(b)(c)
Amounts recorded in OCI
Foreign exchange derivatives $(7) $815
 $(112) $(828) $48
 $(161) $(10) $815
(a)
Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points on foreign exchange forward contracts. The Firm elects to record changes in fair value of these amounts directly in other income.
(b)Represents the effective portion of changes in value of the related hedging derivative. The Firm did not recognize any ineffectiveness on net investment hedges directly in income during the three and six months ended June 30, 2017.
(c)Excludes amounts reclassified from AOCI to income on the sale or liquidation of hedged entities. For additional information, refer to Note 17.19.
(c)The prior period amount has been revised to conform with the current period presentation.

Gains and losses on derivatives used for specified risk management purposes
The following table presents pre-tax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from the mortgage pipeline, warehouse loans, MSRs, wholesale lending exposures, and foreign currency-denominated assets and liabilities.
 
Derivatives gains/(losses)
recorded in income
 Three months ended June 30, Six months ended June 30,
(in millions)20192018 20192018
Contract type     
Interest rate(a)
$657
$(25) $949
$(235)
Credit(b)
(2)(3) (12)(10)
Foreign exchange(c)(d)
(75)133
 (25)103
Total (d)
$580
$105
 $912
$(142)
 
Derivatives gains/(losses)
recorded in income
 Three months ended June 30, Six months ended June 30,
(in millions)20182017 20182017
Contract type     
Interest rate(a)
$(25)$238
 $(235)$221
Credit(b)
(3)(7) (10)(52)
Foreign exchange(c)
130
(14) 100
(34)
Total$102
$217
 $(145)$135

(a)Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in the mortgage pipeline, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income.
(b)Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm’s wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue.
(c)Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue.
(d)The prior period amounts have been revised to conform with the current period presentation.
 
Gains and losses on derivatives related to market-making activities and other derivatives
The Firm makes markets in derivatives in order to meet the needs of customers and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. All derivatives not included in the hedge accounting or specified risk management categories above are included in this category. Gains and losses on these derivatives are primarily recorded in principal transactions revenue. Refer to Note 5 for information on principal transactions revenue.


Credit derivatives
For a more detailed discussion of credit derivatives, refer to Note 5 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K. The Firm does not use notional amounts of credit derivatives as the primary measure of risk management for such derivatives, because the notional amount does not take into account the probability of the occurrence of a credit event, the recovery value of the reference obligation, or related cash instruments and economic hedges, each of which reduces, in the Firm’s view, the risks associated with such derivatives.
Total credit derivatives and credit-related notes
Maximum payout/Notional amountMaximum payout/Notional amount
June 30, 2018 (in millions)Protection sold
Protection
purchased with
identical underlyings(b)
Net protection (sold)/purchased(c)
 
Other protection purchased(d)
June 30, 2019 (in millions)Protection sold
Protection
purchased with
identical underlyings(b)
Net protection (sold)/purchased(c)
 
Other protection purchased(d)
Credit derivatives          
Credit default swaps$(699,082) $709,891
$10,809
 $5,492
$(579,081) $590,894
$11,813
 $4,323
Other credit derivatives(a)
(50,995) 52,285
1,290
 10,956
(50,031) 60,725
10,694
 9,111
Total credit derivatives(750,077) 762,176
12,099
 16,448
(629,112) 651,619
22,507
 13,434
Credit-related notes(18) —
(18) 7,516
—
 —
—
 8,812
Total$(750,095) $762,176
$12,081
 $23,964
$(629,112) $651,619
$22,507
 $22,246
          
Maximum payout/Notional amountMaximum payout/Notional amount
December 31, 2017 (in millions)Protection sold
Protection
purchased with
identical underlyings(b)
Net protection (sold)/purchased(c)
 
Other protection purchased(d)
December 31, 2018 (in millions)Protection sold
Protection
purchased with
identical underlyings(b)
Net protection (sold)/purchased(c)
 
Other protection purchased(d)
Credit derivatives          
Credit default swaps$(690,224) $702,098
$11,874
 $5,045
$(697,220) $707,282
$10,062
 $4,053
Other credit derivatives(a)
(54,157) 59,158
5,001
 11,747
(41,244) 42,484
1,240
 8,488
Total credit derivatives(744,381) 761,256
16,875
 16,792
(738,464) 749,766
11,302
 12,541
Credit-related notes(18) —
(18) 7,915
—
 —
—
 8,425
Total$(744,399) $761,256
$16,857
 $24,707
$(738,464) $749,766
$11,302
 $20,966
(a)Other credit derivatives largely consistspredominantly consist of credit swap options.options and total return swaps.
(b)Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may be greater or lower than the notional amount of protection sold.
(c)Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the seller of protection pays to the buyer of protection in determining settlement value.
(d)Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any protection on the identical reference instrument.
The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit derivatives and credit-related notes as of June 30, 2018,2019, and December 31, 2017, 2018, where JPMorgan Chase is the seller of protection. The maturity profile is based on the remaining contractual maturity of the credit derivative contracts. The ratings profile is based on the rating of the reference entity on which the credit derivative contract is based. The ratings and maturity profile of credit derivatives and credit-related notes where JPMorgan Chase is the purchaser of protection are comparable to the profile reflected below.
Protection sold — credit derivatives and credit-related notes ratings(a)/maturity profile
Protection sold — credit derivatives and credit-related notes ratings(a)/maturity profile
   
Protection sold — credit derivatives and credit-related notes ratings(a)/maturity profile
   
June 30, 2018
(in millions)		<1 year 1–5 years >5 years 
Total
notional amount
 
Fair value of receivables(b)
 
Fair value of payables(b)
 Net fair value
June 30, 2019
(in millions)		<1 year 1–5 years >5 years 
Total
notional amount
 
Fair value of receivables(b)
 
Fair value of payables(b)
 Net fair value
Risk rating of reference entity                          
Investment-grade$(124,866) $(359,780) $(43,198) $(527,844) $6,831
 $(1,926) $4,905
$(103,901) $(332,277) $(39,334) $(475,512) $5,678
 $(1,699) $3,979
Noninvestment-grade(59,660) (145,949) (16,642) (222,251) 6,925
 (4,435) 2,490
(41,328) (99,938) (12,334) (153,600) 4,007
 (3,612) 395
Total$(184,526) $(505,729) $(59,840) $(750,095) $13,756
 $(6,361) $7,395
$(145,229) $(432,215) $(51,668) $(629,112) $9,685
 $(5,311) $4,374
December 31, 2018
(in millions)		<1 year 1–5 years >5 years 
Total
notional amount
 
Fair value of receivables(b)
 
Fair value of payables(b)
 Net fair value
Risk rating of reference entity             
Investment-grade$(115,443) $(402,325) $(43,611) $(561,379) $5,720
 $(2,791) $2,929
Noninvestment-grade(45,897) (119,348) (11,840) (177,085) 4,719
 (5,660) (941)
Total$(161,340) $(521,673) $(55,451) $(738,464) $10,439
 $(8,451) $1,988
December 31, 2017
(in millions)		<1 year 1–5 years >5 years 
Total
notional amount
 
Fair value of receivables(b)
 
Fair value of payables(b)
 Net fair value
Risk rating of reference entity             
Investment-grade$(159,286) $(319,726) $(39,429) $(518,441) $8,516
 $(1,134) $7,382
Noninvestment-grade(73,394) (134,125) (18,439) (225,958) 7,407
 (5,313) 2,094
Total$(232,680) $(453,851) $(57,868) $(744,399) $15,923
 $(6,447) $9,476

(a)The ratings scale is primarily based on external credit ratings defined by S&P and Moody’s.
(b)Amounts are shown on a gross basis, before the benefit of legally enforceable master netting agreements and cash collateral received by the Firm.


Note 5 – Noninterest revenue and noninterest
expense
Noninterest revenue
For a discussion of the components of and accounting policies for the Firm’s noninterest revenue, refer to Note 6 of JPMorgan Chase’s 2017 Annual Report.
The adoption of the revenue recognition guidance in the first quarter of 2018 requires gross presentation of certain costs previously offset against revenue, predominantly associated with certain distribution costs (previously offset against asset management, administration and commissions), with the remainder associated with certain underwriting costs (previously offset against investment banking fees). Adoption of the guidance did not result in any material changes in the timing of revenue recognition. This guidance was adopted retrospectively and, accordingly, prior period amounts were revised, which resulted in an increase in both noninterest revenue and noninterest expense. For additional information, refer to Note 1.Form 10-K.
Investment banking fees
The following table presents the components of investment banking fees.

Three months ended June 30,
Six months ended June 30,
(in millions)2019
 2018

2019
2018
Underwriting






Equity$515

$573

$776

$925
Debt820

964

1,765

1,760
Total underwriting1,335

1,537

2,541

2,685
Advisory516

631

1,150

1,219
Total investment banking fees$1,851

$2,168

$3,691

$3,904

Three months ended June 30,
Six months ended June 30,
(in millions)2018
 2017

2018
2017
Underwriting






Equity$573

$379

$925

$803
Debt964

968

1,760

1,928
Total underwriting1,537

1,347

2,685

2,731
Advisory631

499

1,219

995
Total investment banking fees$2,168

$1,846

$3,904

$3,726

Principal transactions
The following table presents all realized and unrealized gains and losses recorded in principal transactions revenue. This table excludes interest income and interest expense on trading assets and liabilities, which are an integral part of the overall performance of the Firm’s client-driven market-making activities.activities in CIB and cash deployment activities in Treasury and CIO. Refer to Note 6 for further information on interest income and interest expense. Trading revenue is presented primarily by instrument type. The Firm’s client-driven market-making businesses generally utilize a variety of instrument types in connection with their market-making and related risk-management activities; accordingly, the trading revenue presented in the table below is not representative of the total revenue of any individual line of business.
 Three months ended June 30, Six months ended June 30,
(in millions)2019
 2018
 2019 2018
Trading revenue by instrument type       
Interest rate$461
 $672
 $1,066
 $1,446
Credit488
 648
 1,047
 1,028
Foreign exchange729
 745
 1,617
 1,769
Equity1,912
 1,386
 3,527
 3,013
Commodity227
 246
 610
 523
Total trading revenue3,817
 3,697
 7,867
 7,779
Private equity gains/(losses)(103) 85
 (77) (45)
Principal transactions$3,714
 $3,782
 $7,790
 $7,734

 
 Three months ended June 30, Six months ended June 30,
(in millions)2018
 2017
 2018 2017
Trading revenue by instrument type       
Interest rate$672
 $588
 $1,446
 $1,383
Credit648
 278
 1,028
 958
Foreign exchange745
 901
 1,769
 1,682
Equity1,386
 1,118
 3,013
 2,238
Commodity246
 120
 523
 305
Total trading revenue3,697
 3,005
 7,779
 6,566
Private equity gains/(losses)85
 132
 (45) 153
Principal transactions$3,782
 $3,137
 $7,734
 $6,719
Lending- and deposit-related fees
The following table presents the components of lending- and deposit-related fees.
 Three months ended June 30, Six months ended June 30,
(in millions)2019
 2018
 2019
 2018
Lending-related fees$285
 $280
 $575
 $554
Deposit-related fees1,250
 1,215
 2,442
 2,418
Total lending- and deposit-related fees$1,535
 $1,495
 $3,017
 $2,972
 Three months ended June 30, Six months ended June 30,
(in millions)2018
 2017
 2018
 2017
Lending-related fees$280
 $269
 $554
 $544
Deposit-related fees1,215
 1,213
 2,418
 2,386
Total lending- and deposit-related fees$1,495
 $1,482
 $2,972
 $2,930

Asset management, administration and commissions
The following table presents the components of Firmwide asset management, administration and commissions.
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions)2018
 2017
 2018 20172019
 2018
 2019 2018
Asset management fees              
Investment management fees(a)
$2,671
 $2,551
 $5,365
 $4,967
$2,698
 $2,671
 $5,275
 $5,365
All other asset management fees(b)
66
 84
 132
 163
78
 66
 147
 132
Total asset management fees2,737
 2,635
 5,497
 5,130
2,776
 2,737
 5,422
 5,497
              
Total administration fees(c)
557
 504
 1,118
 986
544
 557
 1,079
 1,118
              
Commission and other fees       
Commissions and other fees       
Brokerage commissions631
 567
 1,283
 1,145
641
 631
 1,227
 1,283
All other commissions and fees379
 341
 715
 663
392
 379
 739
 715
Total commissions and fees1,010
 908
 1,998
 1,808
1,033
 1,010
 1,966
 1,998
Total asset management, administration and commissions$4,304
 $4,047
 $8,613
 $7,924
$4,353
 $4,304
 $8,467
 $8,613
(a)Represents fees earned from managing assets on behalf of the Firm’s clients, including investors in Firm-sponsored funds and owners of separately managed investment accounts.
(b)Represents fees for services that are ancillary to investment management services, such as commissions earned on the sales or distribution of mutual funds to clients.
(c)Predominantly includes fees for custody, securities lending, funds services and securities clearance.

Card income
The following table presents the components of card income:
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions)2018
 2017
 2018
 2017
2019
 2018
 2019
 2018
Interchange and merchant processing income$4,723
 $4,309
 $9,082
 $8,215
$5,184
 $4,723
 $9,905
 $9,082
Rewards costs and partner payments(a)
(3,527) (2,689) (6,411) (5,214)(3,610) (3,527) (6,846) (6,411)
Other card income(b)
(176) (453) (376) (920)(208) (176) (419) (376)
Total card income$1,020
 $1,167
 $2,295
 $2,081
$1,366
 $1,020
 $2,640
 $2,295
(a)IncludesThe three and six months ended June 30, 2018, included an adjustment to the credit card rewards liability of approximately $330 million.
(b)Predominantly represents annual fees and new account origination costs, which are deferred and recognized on a straight-line basis over a 12-month period.
Other income    
Other income
For information on the Firm’s Consolidated statements ofoperating lease income included the following:
 Three months ended June 30, Six months ended June 30,
(in millions)2018
 2017
 2018
 2017
Operating lease income$1,112
 $873
 $2,159
 $1,697
within other income, refer to Note 16.
Noninterest expense
Other expense
Other expense on the Firm’s Consolidated statements of income included the following:
 Three months ended June 30, Six months ended June 30,
(in millions)2019
 2018
 2019
 2018
Legal expense/(benefit)$69
 $—
 $(12) $70
FDIC-related expense121
 368
 264
 751
 Three months ended June 30, Six months ended June 30,
(in millions)2018
 2017
 2018
 2017
Legal expense$—
 $61
 $70
 $279
FDIC-related expense368
 376
 751
 757



 
Note 6 – Interest income and Interest expense
For a description of JPMorgan Chase’s accounting policies regarding interest income and interest expense, refer to Note 7 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The following table presents the components of interest income and interest expense.

Three months ended
June 30,
Six months ended
June 30,		Three months ended
June 30,		 Six months ended
June 30,
(in millions)2018

2017

2018

2017
2019

2018
 2019
 2018
Interest income










       
Loans(a)
$11,634

$9,995

$22,708

$19,746
$12,726

$11,634
 $25,606
 $22,708
Taxable securities1,383

1,410

2,696

2,840
1,875

1,383
 3,580
 2,696
Non-taxable securities(b)
395

479

805

937
340

395
 703
 805
Total investment securities(a)
1,778

1,889

3,501

3,777
2,215

1,778
 4,283
 3,501
Trading assets2,111

1,806

4,214

3,664
Trading assets - debt instruments2,915

2,111
 5,684
 4,214
Federal funds sold and securities purchased under resale agreements807

528

1,538

1,054
1,676

807
 3,323
 1,538
Securities borrowed(c)
148

(21)
210

(65)467

190
 864
 301
Deposits with banks1,543

1,018

2,864

1,743
1,132

1,543
 2,302
 2,864
All other interest-earning assets(d)
848

435

1,529

773
All other interest-earning assets(c)(d)
472

503
 930
 934
Total interest income(c)18,869

15,650

36,564

30,692
21,603

18,566
 42,992
 36,060
Interest expense










       
Interest-bearing deposits1,340

629

2,400

1,112
2,413
 1,340
 4,601
 2,400
Federal funds purchased and securities loaned or sold under repurchase agreements759

387

1,337

680
1,226
 759
 2,336
 1,337
Short-term borrowings(e)
260

96

469

169
363
 260
 790
 469
Trading liabilities – debt and all other interest-bearing liabilities(f)
901

515

1,561

920
Trading liabilities – debt and all other interest-bearing liabilities(c)(f)
762
 598
 1,481
 1,057
Long-term debt2,003
 1,687
 3,756
 3,276
2,266
 2,003
 4,608
 3,756
Beneficial interest issued by consolidated VIEs121

128

244

263
175
 121
 325
 244
Total interest expense(c)5,384

3,442

9,767

6,420
7,205
 5,081
 14,141
 9,263
Net interest income13,485

12,208

26,797

24,272
14,398
 13,485
 28,851
 26,797
Provision for credit losses1,210

1,215

2,375

2,530
1,149
 1,210
 2,644
 2,375
Net interest income after provision for credit losses$12,275

$10,993

$24,422

$21,742
$13,249
 $12,275
 $26,207
 $24,422
(a)Includes the amortization/accretion of unearned income (e.g., purchase premiums/discounts, net deferred fees/costs, etc.).
(b)Represents securities which are tax-exempt for U.S. federal income tax purposes.
(c)NegativeIn the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income isand interest expense, but had no effect on net interest income. These changes were made to align the accounting treatment between the balance sheet and the related to client-driven demandinterest income or expense, primarily by offsetting interest income and expense for certain securities combinedprime brokerage-related held-for-investment customer receivables and payables that are currently presented as a single margin account on the balance sheet. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform 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.current presentation.
(d)Includes prime brokerage-related held-for-investment margin loans,customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets includedwhich are classified in other assets on the Consolidated balance sheets.
(e)Includes commercial paper.
(f)Other interest-bearing liabilities include brokerageprime brokerage-related customer payables.



Note 7 – Pension and other postretirement employee benefit plans
For a discussion of JPMorgan Chase’s pension and OPEB plans, refer to Note 8 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The following table presents the components of net periodic benefit costs reported in the Consolidated statements of income for the Firm’s U.S. and non-U.S. defined benefit pension, defined contribution and OPEB plans.
Three months ended June 30, Six months ended June 30,
20182017 20182017 20182017 20182017
(in millions)Three months ended June 30, Six months ended June 30,
20192018 20192018 20192018 20192018
 Defined benefit pension plans OPEB plans  Defined benefit pension plans OPEB plansPension plans OPEB plans Pension plans OPEB plans
Components of net periodic benefit cost              
Benefits earned during the period$89
$82
 $—
$—
 $179
$164
 $—
$—
$89
$89
 $—
$—
 $178
$179
 $—
$—
Interest cost on benefit obligations139
150
 6
7
 278
299
 12
14
149
139
 6
6
 299
278
 12
12
Expected return on plan assets(247)(242) (26)(24) (495)(483) (52)(48)(229)(247) (28)(26) (459)(495) (56)(52)
Amortization:        
        
Net (gain)/loss26
62
 —
—
 52
124
 —
—
41
26
 —
—
 83
52
 —
—
Prior service cost/(credit)(6)(9) —
—
 (12)(18) —
—
Settlement—
—
 —
—
 —
(3) —
—
Net periodic defined benefit cost(a)
1
43
 (20)(17) 2
83
 (40)(34)
Other defined benefit pension plans(b)
9
6
 NA
NA
 15
10
 NA
NA
Prior service (credit)/cost1
(6) —
—
 2
(12) —
—
Net periodic defined benefit cost51
1
 (22)(20) 103
2
 (44)(40)
Other defined benefit pension plans(a)
7
9
 NA
NA
 13
15
 NA
NA
Total defined benefit plans10
49
 (20)(17) 17
93
 (40)(34)58
10
 (22)(20) 116
17
 (44)(40)
Total defined contribution plans222
210
 NA
NA
 432
396
 NA
NA
243
222
 NA
NA
 463
432
 NA
NA
Total pension and OPEB cost included in noninterest expense$232
$259
 $(20)$(17) $449
$489
 $(40)$(34)$301
$232
 $(22)$(20) $579
$449
 $(44)$(40)
(a)Effective January 1, 2018, benefits earned during the period are reported in compensation expense; all other components of net periodic defined benefit costs are reported within other expense in the Consolidated statements of income.
(b)Includes various defined benefit pension plans which are individually immaterial.
The following table presents the fair values of plan assets for the U.S. defined benefit pension and OPEB plans and for the material non-U.S. defined benefit pension plans.
(in billions)June 30,
2019
 December 31, 2018
Fair value of plan assets   
Defined benefit pension plans$19.7
 $18.1
OPEB plans2.9
 2.6

(in billions)June 30, 2018
 December 31, 2017
Fair value of plan assets   
Defined benefit pension plans$19.2
 $19.6
OPEB plans2.7
 2.8
There are no expected contributions to the U.S. defined benefit pension plan for 2018.2019.


Note 8 – Employee share-based incentives
For a discussion of the accounting policies and other information relating to employee share-based incentives, refer to Note 9 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income.
 Three months ended
June 30,		 Six months ended
June 30,
(in millions)2019
 2018
 2019
 2018
Cost of prior grants of RSUs, performance share units (“PSUs”) and stock appreciation rights (“SARs”) that are amortized over their applicable vesting periods$278
 $276
 $617
 $674
Accrual of estimated costs of share-based awards to be granted in future periods including those to full-career eligible employees292
 304
 606
 612
Total noncash compensation expense related to employee share-based incentive plans$570
 $580
 $1,223
 $1,286

 Three months ended
June 30,		 Six months ended
June 30,
(in millions)2018
 2017
 2018
 2017
Cost of prior grants of RSUs, stock appreciation rights (“SARs”) and performance share units (“PSUs”) that are amortized over their applicable vesting periods$276
 $290
 $674
 $600
Accrual of estimated costs of share-based awards to be granted in future periods including those to full-career eligible employees304
 235
 612
 526
Total noncash compensation expense related to employee share-based incentive plans$580
 $525
 $1,286
 $1,126
In the first quarter of 2018, 2019, in connection with its annual incentive grant for the 20172018 performance year, the Firm granted 17 21 million RSUs and 516 630 thousand PSUswith weighted-average grant date fair values of $111.17 $98.98 per RSU and $110.46$98.96 per PSU.


Note 9 – Investment securities
Investment securities consist of debt securities that are classified as AFS or HTM. Debt securities classified as trading assets are discussed in Note 2. Predominantly all of the Firm’s AFS and HTM securities are held by Treasury and CIO in connection with its asset-liability management activities. At June 30, 2018,2019, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available,
and where not available, based primarily upon internal ratings which correspond to ratings as defined by S&P and Moody’s). For additional information regarding the investment securities portfolio, refer to Note 10 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
As a result of the adoption of the premium amortization accounting guidance in the first quarter of 2018, premiums
on purchased callable debt securities must be amortized to the earliest call date for debt securities with call features that are explicit, noncontingent and callable at fixed prices and on preset dates. The guidance primarily impacts obligations of U.S. states and municipalities held in the Firm’s investment securities portfolio. For additional information, refer to Note17.
As permitted by the new hedge accounting guidance, the Firm also elected to transfer U.S. government agency MBS, commercial MBS, and obligations of U.S. states and municipalities with a carrying value of $22.4 billion from HTM to AFS in the first quarter of 2018. This transfer was a non-cash transaction. For additional information, refer to Note 17.
The amortized costs and estimated fair values of the investment securities portfolio were as follows for the dates indicated.
 June 30, 2019 December 31, 2018
(in millions)Amortized costGross unrealized gainsGross unrealized lossesFair value Amortized costGross unrealized gainsGross unrealized lossesFair value
Available-for-sale securities           
Mortgage-backed securities:           
U.S. government agencies(a)
$94,723
$1,979
$86
 $96,616
 $69,026
$594
$974
 $68,646
Residential:           
U.S.9,872
272
5
 10,139
 5,877
79
31
 5,925
Non-U.S.2,534
69
2
 2,601
 2,529
72
6
 2,595
Commercial5,910
90
11
 5,989
 6,758
43
147
 6,654
Total mortgage-backed securities113,039
2,410
104
 115,345
 84,190
788
1,158
 83,820
U.S. Treasury and government agencies73,919
240
169
 73,990
 55,771
366
78
 56,059
Obligations of U.S. states and municipalities29,869
2,033
1
 31,901
 36,221
1,582
80
 37,723
Certificates of deposit74
—
—
 74
 75
—
—
 75
Non-U.S. government debt securities22,017
483
8
 22,492
 23,771
351
20
 24,102
Corporate debt securities1,736
44
2
 1,778
 1,904
23
9
 1,918
Asset-backed securities:           
Collateralized loan obligations24,827
16
62
 24,781
 19,612
1
176
 19,437
Other5,945
61
10
 5,996
 7,225
57
22
 7,260
Total available-for-sale securities271,426
5,287
356
 276,357
 228,769
3,168
1,543
 230,394
Held-to-maturity securities           
Mortgage-backed securities:           
U.S. government agencies(a)
26,097
915
12
 27,000
 26,610
134
200
 26,544
Total mortgage-backed securities26,097
915
12
 27,000
 26,610
134
200
 26,544
Obligations of U.S. states and municipalities4,810
262
—
 5,072
 4,824
105
15
 4,914
Total held-to-maturity securities30,907
1,177
12
 32,072
 31,434
239
215
 31,458
Total investment securities$302,333
$6,464
$368
 $308,429
 $260,203
$3,407
$1,758
 $261,852
 June 30, 2018 December 31, 2017
(in millions)Amortized costGross unrealized gainsGross unrealized lossesFair value Amortized costGross unrealized gainsGross unrealized lossesFair value
Available-for-sale securities           
Mortgage-backed securities:           
U.S. government agencies(a) 
$62,595
$521
$1,194
 $61,922
 $69,879
$736
$335
 $70,280
Residential:           
U.S.6,996
152
30
 7,118
 8,193
185
14
 8,364
Non-U.S.2,457
107
2
 2,562
 2,882
122
1
 3,003
Commercial7,961
75
209
 7,827
 4,932
98
5
 5,025
Total mortgage-backed securities80,009
855
1,435
 79,429
 85,886
1,141
355
 86,672
U.S. Treasury and government agencies24,962
524
142
 25,344
 22,510
266
31
 22,745
Obligations of U.S. states and municipalities37,459
1,926
55
 39,330
 30,490
1,881
33
 32,338
Certificates of deposit75
—
—
 75
 59
—
—
 59
Non-U.S. government debt securities25,307
413
34
 25,686
 26,900
426
32
 27,294
Corporate debt securities2,078
58
3
 2,133
 2,657
101
1
 2,757
Asset-backed securities:           
Collateralized loan obligations21,145
22
21
 21,146
 20,928
69
1
 20,996
Other8,819
74
27
 8,866
 8,764
77
24
 8,817
Total available-for-sale debt securities199,854
3,872
1,717
 202,009
 198,194
3,961
477
 201,678
Available-for-sale equity securities(b)
—
—
—
 —
 547
—
—
 547
Total available-for-sale securities199,854
3,872
1,717
 202,009
 198,741
3,961
477
 202,225
Held-to-maturity securities           
Mortgage-backed securities:           
U.S. government agencies(c)
26,168
60
269
 25,959
 27,577
558
40
 28,095
Commercial—
—
—
 —
 5,783
1
74
 5,710
Total mortgage-backed securities26,168
60
269
 25,959
 33,360
559
114
 33,805
Obligations of U.S. states and municipalities4,838
96
20
 4,914
 14,373
554
80
 14,847
Total held-to-maturity securities31,006
156
289
 30,873
 47,733
1,113
194
 48,652
Total investment securities$230,860
$4,028
$2,006
 $232,882
 $246,474
$5,074
$671
 $250,877

(a)Includes totalAFS U.S. government-sponsored enterprise obligations with fair values of $39.1$69.8 billion and $45.8$50.7 billion, at June 30, 2018, and December 31, 2017, respectively.
(b)Effective January 1, 2018, the Firm adopted the recognition and measurement guidance. Equity securities that were previously reported as AFS securities were reclassified to other assets upon adoption.
(c)Included totalHTM U.S. government-sponsored enterprise obligations with amortized cost of $20.1$20.7 billion and $22.0$20.9 billion, at June 30, 2018,2019, and December 31, 2017,2018, respectively. As of June 30, 2019, mortgage-backed securities issued by Fannie Mae and Freddie Mac each exceeded 10% of JPMorgan Chase’s total stockholders’ equity; the amortized cost and fair value of such securities was $59.7 billion and $61.4 billion, and $29.2 billion and $30.0 billion, respectively.




Investment securities impairment
The following tables present the fair value and gross unrealized losses for investment securities by aging category at June 30, 2018,2019, and December 31, 2017.2018.
Investment securities with gross unrealized lossesInvestment securities with gross unrealized losses
Less than 12 months 12 months or more Less than 12 months 12 months or more 
June 30, 2018 (in millions)Fair value
Gross
unrealized losses
 Fair value
Gross
unrealized losses
Total fair valueTotal gross unrealized losses
June 30, 2019 (in millions)Fair value
Gross
unrealized losses
 Fair value
Gross
unrealized losses
Total fair valueTotal gross unrealized losses
Available-for-sale securities      
Mortgage-backed securities:      
U.S. government agencies$36,060
$868
 $6,309
$326
$42,369
$1,194
$5,701
$48
 $5,704
$38
$11,405
$86
Residential:      
U.S.
1,345
23
 455
7
1,800
30
3
—
 681
5
684
5
Non-U.S.513
1
 157
1
670
2
122
—
 559
2
681
2
Commercial3,248
124
 1,463
85
4,711
209
420
1
 843
10
1,263
11
Total mortgage-backed securities41,166
1,016
 8,384
419
49,550
1,435
6,246
49
 7,787
55
14,033
104
U.S. Treasury and government agencies3,761
118
 294
24
4,055
142
38,553
169
 —
—
38,553
169
Obligations of U.S. states and municipalities2,217
21
 1,220
34
3,437
55
—
—
 205
1
205
1
Certificates of deposit—
—
 —
—
—
—
74
—
 —
—
74
—
Non-U.S. government debt securities3,786
13
 1,308
21
5,094
34
3,923
5
 897
3
4,820
8
Corporate debt securities191
3
 —
—
191
3
47
—
 115
2
162
2
Asset-backed securities:      
Collateralized loan obligations7,379
21
 —
—
7,379
21
7,766
16
 6,034
46
13,800
62
Other4,650
24
 482
3
5,132
27
604
3
 2,055
7
2,659
10
Total available-for-sale securities63,150
1,216
 11,688
501
74,838
1,717
57,213
242
 17,093
114
74,306
356
Held-to-maturity securities      
Mortgage-backed securities      
U.S. government agencies15,887
201
 1,607
68
17,494
269
1
—
 2,747
12
2,748
12
Commercial—
—
 —
—
—
—
Total mortgage-backed securities15,887
201
 1,607
68
17,494
269
1
—
 2,747
12
2,748
12
Obligations of U.S. states and municipalities546
4
 683
16
1,229
20
—
—
 —
—
—
—
Total held-to-maturity securities16,433
205
 2,290
84
18,723
289
1
—
 2,747
12
2,748
12
Total investment securities
with gross unrealized losses
$79,583
$1,421
 $13,978
$585
$93,561
$2,006
$57,214
$242
 $19,840
$126
$77,054
$368




 Investment securities with gross unrealized losses
 Less than 12 months 12 months or more  
December 31, 2018 (in millions)Fair value
Gross
unrealized losses
 Fair value
Gross
unrealized losses
Total fair valueTotal gross unrealized losses
Available-for-sale securities       
Mortgage-backed securities:       
U.S. government agencies$17,656
$318
 $22,728
$656
$40,384
$974
Residential:       
U.S.623
4
 1,445
27
2,068
31
Non-U.S.907
5
 165
1
1,072
6
Commercial974
6
 3,172
141
4,146
147
Total mortgage-backed securities20,160
333
 27,510
825
47,670
1,158
U.S. Treasury and government agencies4,792
7
 2,391
71
7,183
78
Obligations of U.S. states and municipalities1,808
15
 2,477
65
4,285
80
Certificates of deposit75
—
 —
—
75
—
Non-U.S. government debt securities3,123
5
 1,937
15
5,060
20
Corporate debt securities478
8
 37
1
515
9
Asset-backed securities:       
Collateralized loan obligations18,681
176
 —
—
18,681
176
Other1,208
6
 2,354
16
3,562
22
Total available-for-sale securities50,325
550
 36,706
993
87,031
1,543
Held-to-maturity securities       
Mortgage-backed securities       
U.S. government agencies4,385
23
 7,082
177
11,467
200
Total mortgage-backed securities4,385
23
 7,082
177
11,467
200
Obligations of U.S. states and municipalities12
—
 1,114
15
1,126
15
Total held-to-maturity securities4,397
23
 8,196
192
12,593
215
Total investment securities with gross unrealized losses$54,722
$573
 $44,902
$1,185
$99,624
$1,758
 Investment securities with gross unrealized losses
 Less than 12 months 12 months or more  
December 31, 2017 (in millions)Fair value
Gross
unrealized losses
 Fair value
Gross
unrealized losses
Total fair valueTotal gross unrealized losses
Available-for-sale securities       
Mortgage-backed securities:       
U.S. government agencies$36,037
$139
 $7,711
$196
$43,748
$335
Residential:       
U.S.1,112
5
 596
9
$1,708
14
Non-U.S.—
—
 266
1
266
1
Commercial528
4
 335
1
863
5
Total mortgage-backed securities37,677
148
 8,908
207
46,585
355
U.S. Treasury and government agencies1,834
11
 373
20
2,207
31
Obligations of U.S. states and municipalities949
7
 1,652
26
2,601
33
Certificates of deposit—
—
 —
—
—
—
Non-U.S. government debt securities6,500
15
 811
17
7,311
32
Corporate debt securities—
—
 52
1
52
1
Asset-backed securities:       
Collateralized loan obligations—
—
 276
1
276
1
Other3,521
20
 720
4
4,241
24
Total available-for-sale securities50,481
201
 12,792
276
63,273
477
Held-to-maturity securities       
Mortgage-backed securities       
U.S. government agencies4,070
38
 205
2
4,275
40
Commercial3,706
41
 1,882
33
5,588
74
Total mortgage-backed securities7,776
79
 2,087
35
9,863
114
Obligations of U.S. states and municipalities584
9
 2,131
71
2,715
80
Total held-to-maturity securities8,360
88
 4,218
106
12,578
194
Total investment securities with gross unrealized losses$58,841
$289
 $17,010
$382
$75,851
$671

Gross unrealized lossesOther-than-temporary impairment
The Firm has recognized unrealized losses on investment securities that it intends to sell as OTTI. The Firm does not intend to sell any of the remaining investment securities with an unrealized loss in AOCI as of June 30, 2018,2019, and it is not likely that the Firm will be required to sell these securities before recovery of their amortized cost basis. Except forFurther, the securities for which creditFirm did not recognize any credit-related OTTI losses have been recognized in income,during the six months ended June 30, 2019 and 2018. Accordingly, the Firm believes that the investment securities with an unrealized loss in AOCI as of June 30, 2018,2019, are not other-than-temporarily impaired. For additional information on other-than-temporary impairment, refer to Note10 of the JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Investment securities gains and losses
The following table presents realized gains and losses and OTTI from AFS securities that were recognized in income.
 Three months ended June 30,  Six months ended June 30,
(in millions)2019
2018
  2019
2018
Realized gains$115
$9
  $376
$79
Realized losses(71)(88)  (319)(403)
OTTI losses(a)
—
(1)  —
(1)
Net investment securities gains/(losses)$44
$(80)  $57
$(325)

 Three months ended June 30, Six months ended June 30,
(in millions)2018
2017
 2018
2017
Realized gains$9
$393
 $79
$542
Realized losses(88)(427) (403)(572)
OTTI losses(1)—
 (1)(7)
Net investment securities gains/(losses)$(80)$(34) $(325)$(37)
      
OTTI losses     
Credit-related losses recognized in income$—
$—
 $—
$—
Investment securities the Firm intends to sell(a)
(1)—
 (1)(7)
Total OTTI losses recognized in income$(1)$—
 $(1)$(7)
(a) Represents OTTI losses recognized in income on investment securities the Firm intends to sell. Excludes realized losses on securities sold of $20 million for the six months ended June 30, 2018 that had been previously reported as an OTTI loss due to the intention to sell the securities.

(a)Excludes realized losses on securities sold of $20 million and $5 million for the six months ended June 30, 2018 and 2017 that had been previously reported as an OTTI loss due to the intention to sell the securities.
Changes in the credit loss component of credit-impaired debt securities
The cumulative credit loss component, including any changes therein, of OTTI losses that have been recognized in income related to AFS securities that the Firm does not intend to sell was not material as of and during the six month periods ended June 30, 20182019 and 2017.2018.


Contractual maturities and yields
The following table presents the amortized cost and estimated fair value at June 30, 2018,2019, of JPMorgan Chase’s investment securities portfolio by contractual maturity.
By remaining maturity
June 30, 2018 (in millions)
Due in one
year or less
Due after one year through five yearsDue after five years through 10 years
Due after
10 years(c)
 Total
By remaining maturity
June 30, 2019 (in millions)
Due in one
year or less
Due after one year through five yearsDue after five years through 10 years
Due after
10 years(b)
 Total
Available-for-sale securities      
Mortgage-backed securities(a)
      
Amortized cost$261
$429
$5,664
$73,655
 $80,009
$287
$89
$9,642
$103,021
 $113,039
Fair value264
433
5,742
72,990
 79,429
287
90
9,827
105,141
 115,345
Average yield(b)
1.81%2.49%3.49%3.48% 3.47%
Average yield(a)
2.27%2.55%3.18%3.50% 3.47%
U.S. Treasury and government agencies







  







  
Amortized cost$79
$—
$19,446
$5,437
 $24,962
$4,550
$42,673
$18,309
$8,387
 $73,919
Fair value79
—
19,516
5,749
 25,344
4,551
42,760
18,385
8,294
 73,990
Average yield(b)
1.99%—%3.53%2.91% 3.39%
Average yield(a)
2.55%2.53%2.34%2.55% 2.49%
Obligations of U.S. states and municipalities







  







  
Amortized cost$148
$701
$2,501
$34,109
 $37,459
$158
$410
$1,317
$27,984
 $29,869
Fair value149
716
2,597
35,868
 39,330
159
417
1,365
29,960
 31,901
Average yield(b)
1.94%3.39%4.98%4.91% 4.87%
Average yield(a)
2.83%4.27%5.69%4.99% 5.00%
Certificates of deposit







  







  
Amortized cost$75
$—
$—
$—
 $75
$74
$—
$—
$—
 $74
Fair value75
—
—
—
 75
74
—
—
—
 74
Average yield(b)
0.49%—%—%—% 0.49%
Average yield(a)
0.49%—%—%—% 0.49%
Non-U.S. government debt securities







  







  
Amortized cost$4,745
$14,565
$5,997
$—
 $25,307
$6,497
$11,961
$3,559
$—
 $22,017
Fair value4,745
14,782
6,159
—
 25,686
6,504
12,246
3,742
—
 22,492
Average yield(b)
3.27%1.61%1.37%—% 1.86%
Average yield(a)
2.38%1.94%1.20%—% 1.95%
Corporate debt securities







  







  
Amortized cost$70
$968
$901
$139
 $2,078
$120
$910
$561
$145
 $1,736
Fair value70
989
929
145
 2,133
121
932
572
153
 1,778
Average yield(b)
3.98%4.34%4.52%3.45% 4.34%
Average yield(a)
4.89%4.34%4.12%4.58% 4.33%
Asset-backed securities







  







  
Amortized cost$—
$4,295
$7,785
$17,884
 $29,964
$—
$2,345
$8,197
$20,230
 $30,772
Fair value—
4,271
7,790
17,951
 30,012
—
2,348
8,195
20,234
 30,777
Average yield(b)
—%2.61%3.25%2.98% 3.00%
Average yield(a)
—%2.91%3.32%3.27% 3.25%
Total available-for-sale securities







  







  
Amortized cost$5,378
$20,958
$42,294
$131,224
 $199,854
$11,686
$58,388
$41,585
$159,767
 $271,426
Fair value5,382
21,191
42,733
132,703
 202,009
11,696
58,793
42,086
163,782
 276,357
Average yield(b)
3.11%2.02%3.28%3.76% 3.46%
Average yield(a)
2.46%2.46%2.76%3.68% 3.23%
Held-to-maturity securities







  







  
Mortgage-backed securities(a)








  







  
Amortized cost$—
$—
$2,083
$24,085
 $26,168
$—
$—
$4,293
$21,804
 $26,097
Fair value—
—
2,068
23,891
 25,959
—
—
4,576
22,424
 27,000
Average yield(b)(a)
—%—%3.52%3.33% 3.34%—%—%3.37%3.33% 3.34%
Obligations of U.S. states and municipalities







  







  
Amortized cost$—
$—
$—
$4,838
 $4,838
$—
$—
$32
$4,778
 $4,810
Fair value—
—
—
4,914
 4,914
—
—
34
5,038
 5,072
Average yield(b)(a)
—%—%—%4.12% 4.12%—%—%3.82%4.02% 4.01%
Total held-to-maturity securities







  







  
Amortized cost$—
$—
$2,083
$28,923
 $31,006
$—
$—
$4,325
$26,582
 $30,907
Fair value—
—
2,068
28,805
 30,873
—
—
4,610
27,462
 32,072
Average yield(b)(a)
—%—%3.52%3.46% 3.46%—%—%3.38%3.45% 3.44%
(a)As of June 30, 2018, mortgage-backed securities issued by Fannie Mae exceeded 10% of JPMorgan Chase’s total stockholders’ equity; the amortized cost and fair value of such securities was $51.3 billion and $51.1 billion, respectively.
(b)Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable. The effective yield excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected maturities as certain securities may be prepaid.
(c)(b)Includes investment securities with no stated maturity. Substantially all of the Firm’s U.S. residential MBS and collateralized mortgage obligations are due in 10 years or more, based on contractual maturity. The estimated weighted-average life, which reflects anticipated future prepayments, is approximately 76 years for agency residential MBS, 3 years for agency residential collateralized mortgage obligations and 3 years for nonagency residential collateralized mortgage obligations.


Note 10 – Securities financing activities
For a discussion of accounting policies relating to securities financing activities, refer to Note 11 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K. For further information regarding securities borrowed and securities lending agreements for which the fair value option has been elected, refer to Note 3. For further information regarding assets pledged and collateral received in securities financing agreements, refer to Note 21.23.
The table below summarizes the gross and net amounts of the Firm’s securities financing agreements as of June 30, 20182019 and December 31, 2017. 2018. When the Firm has obtained an appropriate legal opinion with respect to thea master netting agreement with a counterparty and where other relevant netting criteria under U.S. GAAP are met, the Firm nets, on the Consolidated balance sheets, the balances
 
outstanding under its securities financing agreements with the same counterparty. In addition, the Firm exchanges securities and/or cash collateral with its counterparties; this collateral also reducescounterparty to reduce the economic exposure withthe counterparty. Suchcounterparty, but such collateral is not eligible for net Consolidated balance sheet presentation. Where the Firm has obtained an appropriate legal opinion with respect to the counterparty master netting agreement, such collateral, along with securities financing balances that do not meet all these relevant netting criteria under U.S. GAAP, is presented in the table below as “Amounts not nettable on the Consolidated balance sheets,” and reduces the “Net amounts” presented below, if the Firm has an appropriate legal opinion with respect to the master netting agreement with the counterparty.presented. Where a legal opinion has not been either sought or obtained, the securities financing balances are presented gross in the “Net amounts” below, and related collateral does not reduce the amounts presented.below.
June 30, 2018June 30, 2019
(in millions)Gross amountsAmounts netted on the Consolidated balance sheets
Amounts presented on the Consolidated balance sheets(b)
Amounts not nettable on the Consolidated balance sheets(c)
Net
amounts(d)
Gross amountsAmounts netted on the Consolidated balance sheets
Amounts presented on the Consolidated balance sheets(b)
Amounts not nettable on the Consolidated balance sheets(c)
Net
amounts(d)
Assets      
Securities purchased under resale agreements$541,760
$(315,405)$226,355
$(217,139) $9,216
$710,885
$(443,021)$267,864
$(256,036) $11,828
Securities borrowed127,331
(19,085)108,246
(75,197) 33,049
153,413
(22,752)130,661
(96,512) 34,149
Liabilities      
Securities sold under repurchase agreements$480,097
$(315,405)$164,692
$(149,808) $14,884
$635,858
$(443,021)$192,837
$(171,175) $21,662
Securities loaned and other(a)
35,520
(19,085)16,435
(16,015) 420
33,408
(22,752)10,656
(10,410) 246
December 31, 2017December 31, 2018
(in millions)Gross amountsAmounts netted on the Consolidated balance sheets
Amounts presented on the Consolidated balance sheets(b)
Amounts not nettable on the Consolidated balance sheets(c)
Net
amounts(d)
Gross amountsAmounts netted on the Consolidated balance sheets
Amounts presented on the Consolidated balance sheets(b)
Amounts not nettable on the Consolidated balance sheets(c)
Net
amounts(d)
Assets      
Securities purchased under resale agreements$448,608
$(250,505)$198,103
$(188,502)
$9,601
$691,116
$(369,612)$321,504
$(308,854)
$12,650
Securities borrowed113,926
(8,814)105,112
(76,805) 28,307
132,955
(20,960)111,995
(79,747) 32,248
Liabilities      
Securities sold under repurchase agreements$398,218
$(250,505)$147,713
$(129,178)
$18,535
$541,587
$(369,612)$171,975
$(149,125)
$22,850
Securities loaned and other(a)
27,228
(8,814)18,414
(18,151) 263
33,700
(20,960)12,740
(12,358) 382
(a)Includes securities-for-securities lending transactionsagreements of $6.6$2.9 billion and $9.2$3.3 billion at June 30, 20182019 and December 31, 2017,2018, respectively, accounted for at fair value, where the Firm is acting as lender. These amounts are presented within accounts payable and other liabilities in the Consolidated balance sheets.
(b)
Includes securities financing agreements accounted for at fair value. At June 30, 20182019 and December 31, 2017,2018, included securities purchased under resale agreements of $12.8$14.0 billion and $14.7$13.2 billion,, respectively and respectively; securities sold under repurchase agreements to repurchase of $866$981 million and $697$935 million, respectively. There were $4.1respectively; and securities borrowed of $5.7 billion and $3.0$5.1 billion, of securities borrowed at June 30, 2018 and December 31, 2017, respectively. There were no securities loaned accounted for at fair value in either period.
(c)In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the amounts reported in this column are limited to the related net asset or liability with that counterparty.
(d)Includes securities financing agreements that provide collateral rights, but where an appropriate legal opinion with respect to the master netting agreement has not been either sought or obtained. At June 30, 20182019 and December 31, 2017,2018, included $5.2$9.6 billion and $7.5$7.9 billion, respectively, of securities purchased under resale agreements; $30.0$31.9 billion and $25.5$30.3 billion, respectively, of securities borrowed; $13.4$20.2 billion and $16.5$21.5 billion, respectively, of securities sold under agreements to repurchase;repurchase agreements; and $50$18 million and $29$25 million, respectively, of securities loaned and other.


The tables below present as of June 30, 2018,2019, and December 31, 2017 2018 the types of financial assets pledged in securities financing agreements and the remaining contractual maturity of the securities financing agreements.
Gross liability balanceGross liability balance
June 30, 2018 December 31, 2017June 30, 2019 December 31, 2018
(in millions)Securities sold under repurchase agreements
Securities loaned and other(a)
 Securities sold under repurchase agreements
Securities loaned and other(a)
Securities sold under repurchase agreementsSecurities loaned and other Securities sold under repurchase agreementsSecurities loaned and other
Mortgage-backed securities      
U.S. government agencies19,277
—
 13,100
—
$25,607
$—
 $28,811
$—
Residential - nonagency2,337
—
 2,972
—
1,675
—
 2,165
—
Commercial - nonagency1,415
—
 1,594
—
1,654
—
 1,390
—
U.S. Treasury and government agencies226,381
250
 177,581
14
382,199
10
 323,078
69
Obligations of U.S. states and municipalities405
—
 1,557
—
1,509
—
 1,150
—
Non-U.S. government debt197,813
1,481
 170,196
2,485
190,950
1,912
 154,900
4,313
Corporate debt securities14,390
194
 14,231
287
13,151
1,301
 13,898
428
Asset-backed securities3,320
—
 3,508
—
2,476
—
 3,867
—
Equity securities14,759
33,595
 13,479
24,442
16,637
30,185
 12,328
28,890
Total$480,097
$35,520
 $398,218
$27,228
$635,858
$33,408
 $541,587
$33,700
Remaining contractual maturity of the agreementsRemaining contractual maturity of the agreements
Overnight and continuous 
Greater than
90 days
 Overnight and continuous    
Greater than
90 days
 
June 30, 2018 (in millions)Up to 30 days30 – 90 daysTotal
June 30, 2019 (in millions)Overnight and continuous Up to 30 days 30 – 90 days
Greater than
90 days
Total
Total securities sold under repurchase agreements$190,179
$176,526
$53,653
$59,739
$480,097
 $163,805
 $64,822
$635,858
Total securities loaned and other(a)
28,747
869
3,324
2,580
35,520
29,654
 1,228
 514
2,012
33,408
Remaining contractual maturity of the agreementsRemaining contractual maturity of the agreements
Overnight and continuous 
Greater than
90 days
 Overnight and continuous    
Greater than
90 days
 
December 31, 2017 (in millions)Up to 30 days30 – 90 daysTotal
December 31, 2018 (in millions)Overnight and continuous Up to 30 days 30 – 90 days
Greater than
90 days
Total
Total securities sold under repurchase agreements$166,425
$156,434
$41,611
$33,748
$398,218
 $174,971
 $71,637
$541,587
Total securities loaned and other(a)
22,876
375
2,328
1,649
27,228
28,402
 997
 2,132
2,169
33,700
(a)Includes securities-for-securities lending transactions of $6.6 billion and $9.2 billion at June 30, 2018 and December 31, 2017, respectively, accounted for at fair value, where the Firm is acting as lender. These amounts are presented within other liabilities on the Consolidated balance sheets.
Transfers not qualifying for sale accounting
At June 30, 2018,2019, and December 31, 2017,2018, the Firm held $1.4 billion$753 million and $1.5$2.1 billion, respectively, of financial assets for which the rights have been transferred to third parties; however, the transfers did not qualify as a sale in accordance with U.S. GAAP. These transfers have been recognized as collateralized financing transactions. The transferred assets are recorded in trading assets and loans, and the corresponding liabilities are recorded predominantly in short-term borrowings on the Consolidated balance sheets. The prior period amount has been revised to conform with the current period presentation.


Note 11 – Loans
Loan accounting framework
The accounting for a loan depends on management’s strategy for the loan, and on whether the loan was credit-impaired at the date of acquisition. The Firm accounts for loans based on the following categories:
Originated or purchased loans held-for-investment (i.e., “retained”), other than PCI loans
•
Originated or purchased loans held-for-investment (i.e., “retained”), other than PCI loans
Loans held-for-sale
Loans at fair value
PCI loans held-for-investment
 
For a detailed discussion of loans, including accounting policies, refer to Note 12 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K. Refer to Note 3 of this Form 10-Q for further information on the Firm’s elections of fair value accounting under the fair value option. Refer to Note 2 of this Form 10-Q for information on loans carried at fair value and classified as trading assets.


Loan portfolio
The Firm’s loan portfolio is divided into three portfolio segments, which are the same segments used by the Firm to determine the allowance for loan losses: Consumer, excluding credit card; Credit card; and Wholesale. Within each portfolio segment the Firm monitors and assesses the credit risk in the following classes of loans, based on the risk characteristics of each loan class.
Consumer, excluding
credit card(a)
 Credit card 
Wholesale(f)
Residential real estate – excluding PCI
• Residential mortgage(b)
• Home equity(c)
Other consumer loans(d)
• Auto
• Consumer & Business Banking(e)
Residential real estate – PCI
• Home equity
• Prime mortgage
• Subprime mortgage
• Option ARMs
 • Credit card loans 
• Commercial and industrial
• Real estate
• Financial institutions
• Government agenciesGovernments & Agencies
• Other(g)
(a)Includes loans held in CCB, prime mortgage and home equity loans held in AWM and prime mortgage loans held in Corporate.
(b)Predominantly includes prime loans (including option ARMs) and subprime loans..
(c)Includes senior and junior lien home equity loans.
(d)Includes certain business banking and auto dealer risk-rated loans that apply the wholesale methodology for determining the allowance for loan losses; these loans are managed by CCB, and therefore, for consistency in presentation, are included with the other consumer loan classes.
(e)Predominantly includes Business Banking loans.
(f)Includes loans held in CIB, CB, AWM and Corporate. Excludes prime mortgage and home equity loans held in AWM and prime mortgage loans held in Corporate. Classes are internally defined and may not align with regulatory definitions.
(g)Includes loans to: individuals and individual entities (predominantly consists of Wealth Management clients within AWM)AWM and includes exposure to personal investment companies and personal and testamentary trusts), SPEs and privatePrivate education and civic organizations. For more information on SPEs, refer to Note 14 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The following tables summarize the Firm’s loan balances by portfolio segment.
June 30, 2018Consumer, excluding credit card 
Credit card(a)
 Wholesale Total 
June 30, 2019Consumer, excluding credit card 
Credit card(a)
 Wholesale Total 
(in millions)Consumer, excluding credit card 
Credit card(a)
 Wholesale Total  
Retained
(b) 
$351,692
 $157,568
 $438,468
 $947,728
(b) 
Held-for-sale110
 34
 4,754
 4,898
 1,030
 8
 3,814
 4,852
 
At fair value—
 —
 3,076
 3,076
 —
 —
 4,309
 4,309
 
Total$374,697
 $145,255
 $428,462
 $948,414
 $352,722
 $157,576
 $446,591
 $956,889
 
                
December 31, 2017Consumer, excluding credit card 
Credit card(a)
 Wholesale Total 
December 31, 2018Consumer, excluding credit card 
Credit card(a)
 Wholesale Total 
(in millions)Consumer, excluding credit card 
Credit card(a)
 Wholesale Total  
Retained
(b) 
$373,637
 $156,616
 $439,162
 $969,415
(b) 
Held-for-sale128
 124
 3,099
 3,351
 95
 16
 11,877
 11,988
 
At fair value—
 —
 2,508
 2,508
 —
 —
 3,151
 3,151
 
Total$372,681
 $149,511
 $408,505
 $930,697
 $373,732
 $156,632
 $454,190
 $984,554
 
(a)Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income.
(b)Loans (other than PCI loans and loans for which the fair value option has been elected) are presented net of unamortized discounts and premiums and net deferred loan fees or costs. These amounts were not material as of June 30, 2018,2019, and December 31, 2017.2018.




The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-for-sale during the periods indicated. Reclassifications of loans to held-for sale are non-cash transactions. The Firm manages its exposure to credit risk on an ongoing basis. Selling loans is one way that the Firm reduces its credit exposures.Loans that were reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of this table.

 
2019 2018
Three months ended June 30,
(in millions)		 
Consumer, excluding
credit card
Credit cardWholesaleTotal 
Consumer, excluding
credit card
Credit cardWholesaleTotal
Purchases 
$234
(a)(b) 
$—
$359
$593
 $532
(a)(b) 
$—
$532
$1,064
Sales 
6,856

—
5,400
12,256
 2,391
 —
4,943
7,334
Retained loans reclassified to held-for-sale 
948
 —
924
1,872
 —

—
392
392
              
   2019 2018
Six months ended June 30,
(in millions)		  
Consumer, excluding
credit card
Credit cardWholesaleTotal 
Consumer, excluding
credit card
Credit cardWholesaleTotal
Purchases  $785
(a)(b) 
$—
$588
$1,373
 $1,603
(a)(b) 
$—
$1,630
$3,233
Sales  15,514
 —
10,845
26,359
 2,872
 —
8,632
11,504
Retained loans reclassified to held-for-sale  5,061
 —
1,425
6,486
 36
 —
1,260
1,296

 
2018 2017
Three months ended June 30, (in millions) 
Consumer, excluding
credit card
Credit cardWholesaleTotal 
Consumer, excluding
credit card
Credit cardWholesaleTotal
Purchases 
$532
(a)(b) 
$—
$532
$1,064
 $626
(a)(b) 
$—
$594
$1,220
Sales 
2,391

—
4,943
7,334
 763
 —
2,377
3,140
Retained loans reclassified to held-for-sale 
—
 —
392
392
 31

—
307
338
              
   2018 2017
Six months ended June 30, (in millions)  
Consumer, excluding
credit card
Credit cardWholesaleTotal 
Consumer, excluding
credit card
Credit cardWholesaleTotal
Purchases  $1,603
(a)(b) 
$—
$1,630
$3,233
 $1,566
(a)(b) 
$—
$878
$2,444
Sales  2,872
 —
8,632
11,504
 1,353
 —
4,824
6,177
Retained loans reclassified to held-for-sale  36
 —
1,260
1,296
 6,340
(c) 
—
768
7,108

(a)
Purchases predominantly represent the Firm’s voluntary repurchase of certain delinquent loans from loan pools as permitted by Government National Mortgage Association (“Ginnie Mae”) guidelines. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, FHA, RHS, and/or VA.
(b)
Excludes purchases of retained loans sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards. Such purchases were $4.3 billion and $5.3 billionand $5.9 billionfor the three months ended June 30, 20182019 and 2017, 2018, respectively, and $8.9$7.5 billion and $11.3$8.9 billion for the six months ended June 30, 2019 and 2018, and 2017, respectively.
(c)Includes the Firm’s student loan portfolio which was sold in 2017.

Gains and losses on sales of loans
Gains and losses on sales of loans (including adjustments to record loans held-for-sale at the lower of cost or fair value) recognized in other income were not material to the Firm for the three and six months ended June 30, 20182019 and 2017.2018. In addition, the sale of loans may also result in write downs, recoveries or changes in the allowance recognized in the provision for credit losses.
Consumer, excluding credit card loan portfolio
Consumer loans, excluding credit card loans, consist primarily of residential mortgages, home equity loans and lines of credit, auto loans and consumer and business banking loans, with a focus on serving the prime consumer credit market. The portfolio also includes home equity loans secured by junior liens, prime mortgage loans with an interest-only payment period, and certain payment-option loans that may result in negative amortization.
 
The following table provides information about retained consumer loans, excluding credit card, by class. In 2017, the Firm sold its student loan portfolio.
(in millions)June 30,
2019
December 31,
2018
Residential real estate – excluding PCI  
Residential mortgage$214,744
$231,078
Home equity26,017
28,340
Other consumer loans  
Auto62,073
63,573
Consumer & Business Banking26,616
26,612
Residential real estate – PCI  
Home equity8,149
8,963
Prime mortgage4,343
4,690
Subprime mortgage1,857
1,945
Option ARMs7,893
8,436
Total retained loans$351,692
$373,637
(in millions)June 30,
2018
December 31,
2017
Residential real estate – excluding PCI  
Residential mortgage$225,864
$216,496
Home equity30,460
33,450
Other consumer loans  
Auto65,014
66,242
Consumer & Business Banking26,272
25,789
Residential real estate – PCI  
Home equity9,849
10,799
Prime mortgage5,437
6,479
Subprime mortgage2,249
2,609
Option ARMs9,442
10,689
Total retained loans$374,587
$372,553
For further information on consumer credit quality indicators, refer to Note 12 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.


Residential real estate – excluding PCI loans
The following table provides information by class for retained residential real estate – excluding retained PCI loans.
Residential real estate – excluding PCI loansResidential real estate – excluding PCI loans   Residential real estate – excluding PCI loans   
(in millions, except ratios)Residential mortgage Home equity Total residential real estate – excluding PCIResidential mortgage Home equity Total residential real estate – excluding PCI
Jun 30,
2018
Dec 31,
2017
 Jun 30,
2018
Dec 31,
2017
 Jun 30,
2018
Dec 31,
2017
Jun 30,
2019
Dec 31,
2018
 Jun 30,
2019
Dec 31,
2018
 Jun 30,
2019
Dec 31,
2018
Loan delinquency(a)
          
Current$219,735
$208,713
 $29,664
$32,391
 $249,399
$241,104
$211,426
$225,899
 $25,423
$27,611
 $236,849
$253,510
30–149 days past due2,948
4,234
 457
671
 3,405
4,905
1,788
2,763
 365
453
 2,153
3,216
150 or more days past due3,181
3,549
  339
388
 3,520
3,937
1,530
2,416
  229
276
 1,759
2,692
Total retained loans$225,864
$216,496
 $30,460
$33,450
 $256,324
$249,946
$214,744
$231,078
 $26,017
$28,340
 $240,761
$259,418
% of 30+ days past due to total retained loans(b)
0.54%0.77% 2.61%3.17% 0.79%1.09%0.46%0.48% 2.28%2.57% 0.66%0.71%
90 or more days past due and government guaranteed(c)
$3,179
$4,172
 $—
$—
 $3,179
$4,172
$1,422
$2,541
 $—
$—
 $1,422
$2,541
Nonaccrual loans2,101
2,175
 1,481
1,610
 3,582
3,785
1,691
1,765
 1,209
1,323
 2,900
3,088
Current estimated LTV ratios(d)(e)
     

     

Greater than 125% and refreshed FICO scores:     

     

Equal to or greater than 660$26
$37
 $7
$10
 $33
$47
$19
$25
 $5
$6
 $24
$31
Less than 66016
19
 2
3
 18
22
10
13
 2
1
 12
14
101% to 125% and refreshed FICO scores:     

     

Equal to or greater than 66024
36
 165
296
 189
332
35
37
 73
111
 108
148
Less than 66061
88
 51
95
 112
183
36
53
 23
38
 59
91
80% to 100% and refreshed FICO scores:     

     
Equal to or greater than 6603,323
4,369
 1,180
1,676
 4,503
6,045
4,528
3,977
 764
986
 5,292
4,963
Less than 660316
483
 392
569
 708
1,052
227
281
 236
326
 463
607
Less than 80% and refreshed FICO scores:     

     

Equal to or greater than 660206,159
194,758
 23,607
25,262
 229,766
220,020
198,687
212,505
 21,178
22,632
 219,865
235,137
Less than 6606,605
6,952
 3,604
3,850
 10,209
10,802
6,110
6,457
 2,969
3,355
 9,079
9,812
No FICO/LTV available1,255
1,259
 1,452
1,689
 2,707
2,948
866
813
 767
885
 1,633
1,698
U.S. government-guaranteed8,079
8,495
 —
—
 8,079
8,495
4,226
6,917
 —
—
 4,226
6,917
Total retained loans$225,864
$216,496
 $30,460
$33,450
 $256,324
$249,946
$214,744
$231,078
 $26,017
$28,340
 $240,761
$259,418
Geographic region(f)            
California$72,207
$68,855
 $6,028
$6,582
 $78,235
$75,437
$71,176
$74,759
 $5,327
$5,695
 $76,503
$80,454
New York28,523
27,473
 6,257
6,866
 34,780
34,339
26,684
28,847
 5,276
5,769
 31,960
34,616
Illinois14,977
14,501
 2,290
2,521
 17,267
17,022
14,236
15,249
 1,937
2,131
 16,173
17,380
Texas13,430
12,508
 1,895
2,021
 15,325
14,529
12,678
13,769
 1,694
1,819
 14,372
15,588
Florida10,196
9,598
 1,669
1,847
 11,865
11,445
10,450
10,704
 1,429
1,575
 11,879
12,279
New Jersey7,305
7,142
 1,768
1,957
 9,073
9,099
Washington7,635
6,962
 938
1,026
 8,573
7,988
7,937
8,304
 802
869
 8,739
9,173
Colorado7,834
7,335
 552
632
 8,386
7,967
7,801
8,140
 467
521
 8,268
8,661
New Jersey6,608
7,302
 1,504
1,642
 8,112
8,944
Massachusetts6,360
6,323
 263
295
 6,623
6,618
6,195
6,574
 219
236
 6,414
6,810
Arizona4,397
4,109
 1,273
1,439
 5,670
5,548
4,074
4,434
 1,042
1,158
 5,116
5,592
All other(f)(g)
53,000
51,690
  7,527
8,264
 60,527
59,954
46,905
52,996
  6,320
6,925
 53,225
59,921
Total retained loans$225,864
$216,496
 $30,460
$33,450
 $256,324
$249,946
$214,744
$231,078
 $26,017
$28,340
 $240,761
$259,418
(a)Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $3.2$1.9 billion and $2.4$2.8 billion; 30–149 days past due included $2.3$1.2 billion and $3.2$2.1 billion; and 150 or more days past due included $2.6$1.1 billion and $2.9$2.0 billion at June 30, 2018,2019, and December 31, 2017,2018, respectively.
(b)At June 30, 2018,2019, and December 31, 2017,2018, residential mortgage loans excluded mortgage loans insured by U.S. government agencies of $4.9$2.3 billion and $6.1$4.1 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
(c)These balances, which are 90 days or more past due, were excluded from nonaccrual loans as the loans are guaranteed by U.S government agencies. Typically the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. At June 30, 2018,2019, and December 31, 2017,2018, these balances included $1.3 billion$623 million and $1.5 billion,$999 million, respectively, of loans that are no longer accruing interest based on the agreed-upon servicing guidelines. For the remaining balance, interest is being accrued at the guaranteed reimbursement rate. There were no loans that were not guaranteed by U.S. government agencies that are 90 or more days past due and still accruing interest at June 30, 2018,2019, and December 31, 2017.2018.
(d)Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.
(e)Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
(f)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at June 30, 2019.
(g)At June 30, 2018,2019, and December 31, 2017,2018, included mortgage loans insured by U.S. government agencies of $8.1$4.2 billion and $8.5$6.9 billion, respectively. These amounts have been excluded from the geographic regions presented based upon the government guarantee.



Approximately 37% of the home equity portfolio are senior lien loans; the remaining balance are junior lien HELOANs or HELOCs. The following table representsprovides the Firm’s delinquency statistics for junior lien home equity loans and lines of credit as of June 30, 2018,2019, and December 31, 2017.2018.
Total loans Total 30+ day delinquency rateTotal loans Total 30+ day delinquency rate
(in millions, except ratios)Jun 30,
2018
Dec 31,
2017
 Jun 30,
2018
Dec 31,
2017
Jun 30,
2019
Dec 31,
2018
 Jun 30,
2019
Dec 31,
2018
HELOCs:(a)
      
Within the revolving period(b)
$5,455
$6,363
 0.26%0.50%$5,611
$5,608
 0.32%0.25%
Beyond the revolving period12,631
13,532
 2.72
3.56
9,949
11,286
 2.48
2.80
HELOANs1,190
1,371
 2.77
3.50
896
1,030
 2.68
2.82
Total$19,276
$21,266
 2.03%2.64%$16,456
$17,924
 1.76%2.00%
(a)These HELOCs are predominantly revolving loans for a 10-year period, after which time the HELOC converts to a loan with a 20-year amortization period, but also include HELOCs that allow interest-only payments beyond the revolving period.
(b)The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are experiencing financial difficulty.
 
HELOCs beyond the revolving period and HELOANs have higher delinquency rates than HELOCs within the revolving period. That is primarily because the fully-amortizing payment that is generally required for those products is higher than the minimum payment options available for HELOCs within the revolving period. The higher delinquency rates associated with amortizing HELOCs and HELOANs are factored into the Firm’s allowance for loan losses.







Impaired loans
The table below sets forth information about the Firm’s residential real estate impaired loans, excluding PCI loans. These loans are considered to be impaired as they have been modified in a TDR. All impaired loans are evaluated for an asset-specific allowance as described in Note 13 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.

(in millions)		Residential mortgage Home equity Total residential real estate – excluding PCIResidential mortgage Home equity Total residential real estate – excluding PCI
Jun 30,
2018
Dec 31,
2017
 Jun 30,
2018
Dec 31,
2017
 Jun 30,
2018
Dec 31,
2017
Jun 30,
2019
Dec 31,
2018
 Jun 30,
2019
Dec 31,
2018
 Jun 30,
2019
Dec 31,
2018
Impaired loans          
With an allowance$3,816
$4,407
 $1,211
$1,236
 $5,027
$5,643
$3,173
$3,381
 $1,089
$1,142
 $4,262
$4,523
Without an allowance(a)
1,208
1,213
 881
882
 2,089
2,095
1,208
1,184
 865
870
 2,073
2,054
Total impaired loans(b)(c)
$5,024
$5,620
 $2,092
$2,118
 $7,116
$7,738
$4,381
$4,565
 $1,954
$2,012
 $6,335
$6,577
Allowance for loan losses related to impaired loans$94
$62
 $62
$111
 $156
$173
$60
$88
 $17
$45
 $77
$133
Unpaid principal balance of impaired loans(d)
6,870
7,741
 3,604
3,701
 10,474
11,442
5,965
6,207
 3,362
3,466
 9,327
9,673
Impaired loans on nonaccrual status(e)
1,730
1,743
 1,041
1,032
 2,771
2,775
1,436
1,459
 946
955
 2,382
2,414
(a)Represents collateral-dependent residential real estate loans that are charged off to the fair value of the underlying collateral less cost to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower (“Chapter 7 loans”) as collateral-dependent nonaccrual TDRs, regardless of their delinquency status. At June 30, 2018,2019, Chapter 7 residential real estate loans included approximately 13%12% of residential mortgages and 9%8% of home equity that were 30 days or more past due.
(b)At June 30, 2018,2019, and December 31, 2017, $4.32018, $2.6 billion and $3.8$4.1 billion, respectively, of loans modified subsequent to repurchase from Ginnie Mae in accordance with the standards of the appropriate government agency (i.e., FHA, VA, RHS) are not included in the table above. When such loans perform subsequent to modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform become subject to foreclosure.
(c)Predominantly all residential real estate impaired loans excluding PCI loans,in the table above are in the U.S.
(d)Represents the contractual amount of principal owed at June 30, 2018,2019, and December 31, 2017.2018. The unpaid principal balance differs from the impaired loan balances due to various factors including charge-offs, net deferred loan fees or costs, and unamortized discounts or premiums on purchased loans.
(e)At both June 30, 20182019 and December 31, 2017,2018, nonaccrual loans included $2.2$2.0 billion of TDRs for which the borrowers were less than 90 days past due. For additional information about loans modified in a TDR that are on nonaccrual status refer to the Loan accounting framework in Note 12 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.


The following tables present average impaired loans and the related interest income reported by the Firm.
Three months ended June 30,
(in millions)		Average impaired loans 
Interest income on
impaired loans(a)
 
Interest income on impaired
loans on a cash basis(a)
Average impaired loans 
Interest income on
impaired loans(a)
 
Interest income on impaired
loans on a cash basis(a)
2018
2017
 2018
2017
 2018
2017
2019
2018
 2019
2018
 2019
2018
Residential mortgage$5,254
$5,865
 $66
$68
 $20
$14
$4,437
$5,254
 $57
$66
 $18
$20
Home equity2,087
2,241
 33
30
 21
18
1,980
2,087
 33
33
 20
21
Total residential real estate – excluding PCI$7,341
$8,106
 $99
$98
 $41
$32
$6,417
$7,341
 $90
$99
 $38
$41
          
Six months ended June 30,
(in millions)		Average impaired loans 
Interest income on
impaired loans(a)
 
Interest income on impaired
loans on a cash basis(a)
Average impaired loans 
Interest income on
impaired loans(a)
 
Interest income on impaired
loans on a cash basis(a)
2018
2017
 2018
2017
 2018
2017
2019
2018
 2019
2018
 2019
2018
Residential mortgage$5,431
$5,921
 $136
$141
 $39
$33
$4,486
$5,431
 $116
$136
 $35
$39
Home equity2,105
2,245
 65
61
 42
38
1,991
2,105
 66
65
 41
42
Total residential real estate – excluding PCI$7,536
$8,166
 $201
$202
 $81
$71
$6,477
$7,536
 $182
$201
 $76
$81
(a)Generally, interest income on loans modified in TDRs is recognized on a cash basis until the borrower has made a minimum of six payments under the new terms, unless the loan is deemed to be collateral-dependent.


Loan modifications
Modifications of residential real estate loans, excluding PCI loans, are generally accounted for and reported as TDRs. There were no additional commitments to lend to borrowers whose residential real estate loans, excluding PCI loans, have been modified in TDRs.
 
The following table presents new TDRs reported by the Firm.
 Three months ended June 30, Six months ended June 30,
(in millions)2019
2018
 2019
2018
Residential mortgage$62
$100
 $131
$247
Home equity48
83
 114
186
Total residential real estate – excluding PCI$110
$183
 $245
$433

 Three months ended June 30, Six months ended June 30,
(in millions)2018
2017
 2018
2017
Residential mortgage$100
$96
 $247
$168
Home equity83
69
 186
150
Total residential real estate – excluding PCI$183
$165
 $433
$318




Nature and extent of modifications
The U.S. Treasury’s Making Home Affordable programs, as well as the Firm’s proprietary modification programs, generally provide various concessions to financially troubled borrowers including, but not limited to, interest rate reductions, term or payment extensions and deferral of principal and/or interest payments that would otherwise have been required under the terms of the original agreement.
The following tables provide information about how residential real estate loans, excluding PCI loans, were modified under the Firm’sloss mitigation programs described above during the periods presented. These tables exclude Chapter 7 loans where the sole concession granted is the discharge of debt.debt.
Three months ended June 30, 
Total residential
real estate –
excluding PCI
 
Total residential
real estate –
excluding PCI
Residential mortgage Home equity Residential mortgage Home equity 
2018
2017
 2018
2017
 2018
2017
2019
2018
 2019
2018
 2019
2018
Number of loans approved for a trial modification977
390
 849
565
 1,826
955
501
977
 411
849
 912
1,826
Number of loans permanently modified686
659
 1,268
1,583
 1,954
2,242
428
686
 816
1,268
 1,244
1,954
Concession granted:(a)
          
Interest rate reduction37%69% 53%59% 48%62%60%37% 73%53% 68%48%
Term or payment extension46
82
 59
78
 55
79
92
46
 74
59
 80
55
Principal and/or interest deferred50
20
 27
9
 35
13
29
50
 9
27
 16
35
Principal forgiveness8
18
 10
9
 9
12
6
8
 4
10
 4
9
Other(b)
32
23
 57
15
 48
18
45
32
 58
57
 54
48
          
Six months ended June 30, Total residential
real estate –
excluding PCI		 Total residential
real estate –
excluding PCI
Residential mortgage Home equity Residential mortgage Home equity 
2018
2017
 2018
2017
 2018
2017
2019
2018
 2019
2018
 2019
2018
Number of loans approved for a trial modification1,276
846
 1,309
1,308
 2,585
2,154
1,238
1,276
 932
1,309
 2,170
2,585
Number of loans permanently modified1,655
1,442
 3,066
2,800
 4,721
4,242
871
1,655
 1,923
3,066
 2,794
4,721
Concession granted:(a)
          
Interest rate reduction27%76% 51%71% 42%72%60%27% 79%51% 73%42%
Term or payment extension35
86
 54
84
 48
84
90
35
 66
54
 74
48
Principal and/or interest deferred54
14
 26
13
 36
14
28
54
 8
26
 14
36
Principal forgiveness7
19
 7
9
 7
12
6
7
 5
7
 5
7
Other(b)
42
27
 58
13
 53
18
40
42
 65
58
 57
53
(a)Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds 100% because predominantly all of the modifications include more than one type of concession. Concessions offered on trial modifications are generally consistent with those granted on permanent modifications.
(b)Includes variable interest rate to fixed interest rate modifications for the three and six months ended June 30, 2018 and 2017. Also includes forbearances that meet the definition of a TDR for the three and six months ended June 30, 2019 and 2018. Forbearances suspend or reduce monthly payments for a specific period of time to address a temporary hardship.


Financial effects of modifications and redefaults
The following tables provide information about the financial effects of the various concessions granted in modifications of residential real estate loans, excluding PCI loans, under the loss mitigation programs described above and about redefaults of certain loans modified in TDRs for the periods presented. The following tables present only the financial effects of permanent modifications and does not include temporary concessions offered through trial modifications. These tables also exclude Chapter 7 loans where the sole concession granted is the discharge of debt.
Three months ended June 30,
(in millions, except weighted-average data)		Residential mortgage Home equity Total residential real estate – excluding PCIResidential mortgage Home equity Total residential real estate – excluding PCI
2018
2017
 2018
2017
 2018
2017
2019
2018
 2019
2018
 2019
2018
Weighted-average interest rate of loans with interest rate reductions – before TDR4.97%5.13% 5.21%5.04% 5.10%5.09%6.03%4.97% 5.51%5.21% 5.76%5.10%
Weighted-average interest rate of loans with interest rate reductions – after TDR3.15
3.12
 3.31
2.39
 3.24
2.79
4.47
3.15
 3.83
3.31
 4.14
3.24
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR25
23
 18
26
 23
25
19
25
 20
18
 19
23
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR37
37
 37
38
 38
38
39
37
 40
37
 39
38
Charge-offs recognized upon permanent modification$—
$

 $

$

 $

$

$1
$—
 $—
$—
 $1
$—
Principal deferred4
4
 3
2
 7
6
5
4
 2
3
 7
7
Principal forgiven3
6
 2
3
 5
9
1
3
 1
2
 2
5
Balance of loans that redefaulted within one year of permanent modification(a)
$25
$30
 $19
$12
 $44
$42
$23
$25
 $16
$19
 $39
$44
          
Six months ended June 30,
(in millions, except weighted-average)		Residential mortgage Home equity Total residential real estate – excluding PCI
2018
2017
 2018
2017
 2018
2017
Six months ended June 30,
(in millions, except weighted-average data)		Residential mortgage Home equity Total residential real estate – excluding PCI
2019
2018
 2019
2018
 2019
2018
Weighted-average interest rate of loans with interest rate reductions – before TDR5.03%5.25% 5.16%4.82% 5.11%5.06%6.28%5.03% 5.59%5.16% 5.86%5.11%
Weighted-average interest rate of loans with interest rate reductions – after TDR3.28
3.00
 3.16
2.42
 3.21
2.74
4.56
3.28
 3.75
3.16
 4.06
3.21
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR25
24
 19
23
 22
24
20
25
 20
19
 20
22
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR37
38
 39
39
 38
38
39
37
 40
39
 39
38
Charge-offs recognized upon permanent modification$—
$1
 $1
$1
 $1
$2
$1
$—
 $—
$1
 $1
$1
Principal deferred10
7
 5
7
 15
14
8
10
 3
5
 11
15
Principal forgiven6
11
 4
5
 10
16
2
6
 2
4
 4
10
Balance of loans that redefaulted within one year of permanent modification(a)
$45
$58
 $33
$21
 $78
$79
$56
$45
 $31
$33
 $87
$78
(a)Represents loans permanently modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The dollar amounts presented represent the balance of such loans at the end of the reporting period in which such loans defaulted. For residential real estate loans modified in TDRs, payment default is deemed to occur when the loan becomes two contractual payments past due. In the event that a modified loan redefaults, it is probable that the loan will ultimately be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of loans modified within the last 12 months may not be representative of ultimate redefault levels.


At June 30, 2018, 2019, the weighted-average estimated remaining lives of residential real estate loans, excluding PCI loans, permanently modified in TDRs were 9 years for both residential mortgage and 8 years for home equity. The estimated remaining lives of these loans reflect estimated prepayments, both voluntary and involuntary (i.e., foreclosures and other forced liquidations).
 


Active and suspended foreclosure
At June 30, 2018,2019, and December 31, 2017,2018, the Firm had non-PCI residential real estate loans, excluding those insured by U.S. government agencies, with a carrying value of $763 $609 million and $787$653 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure.


Other consumer loans
The table below provides information for other consumer retained loan classes, including auto and business banking loans.
(in millions, except ratios)Auto Consumer &
Business Banking		 Total other consumerAuto 
Consumer &
Business Banking
 Total other consumer
Jun 30, 2018
Dec 31, 2017
 Jun 30, 2018
Dec 31, 2017
 Jun 30, 2018
Dec 31, 2017
Jun 30, 2019
Dec 31, 2018
 Jun 30, 2019
Dec 31, 2018
 Jun 30, 2019
Dec 31, 2018
Loan delinquency          
Current$64,516
$65,651
 $25,964
$25,454
 $90,480
$91,105
$61,562
$62,984
 $26,289
$26,249
 $87,851
$89,233
30–119 days past due487
584
 197
213
 684
797
511
589
 215
252
 726
841
120 or more days past due11
7
 111
122
 122
129
—
—
 112
111
 112
111
Total retained loans$65,014
$66,242
 $26,272
$25,789
 $91,286
$92,031
$62,073
$63,573
 $26,616
$26,612
 $88,689
$90,185
% of 30+ days past due to total retained loans0.77%0.89% 1.17%1.30% 0.88%1.01%0.82%0.93% 1.23%1.36% 0.94%1.06%
Nonaccrual loans(a)
124
141
 273
283
 397
424
108
128
 223
245
 331
373
Geographic region(b)          
California$8,512
$8,445
 $5,299
$5,032
 $13,811
$13,477
$8,142
$8,330
 $5,689
$5,520
 $13,831
$13,850
Texas6,675
7,013
 3,014
2,916
 9,689
9,929
6,524
6,531
 3,060
2,993
 9,584
9,524
New York3,901
4,023
 4,222
4,195
 8,123
8,218
3,690
3,863
 4,349
4,381
 8,039
8,244
Illinois3,793
3,916
 2,066
2,017
 5,859
5,933
3,625
3,716
 1,731
2,046
 5,356
5,762
Florida3,389
3,350
 1,428
1,424
 4,817
4,774
3,256
3,256
 1,519
1,502
 4,775
4,758
Arizona2,103
2,221
 1,422
1,383
 3,525
3,604
2,011
2,084
 1,275
1,491
 3,286
3,575
Ohio2,044
2,105
 1,356
1,380
 3,400
3,485
1,927
1,973
 1,210
1,305
 3,137
3,278
New Jersey1,936
1,981
 811
723
 2,747
2,704
Michigan1,417
1,418
 1,304
1,357
 2,721
2,775
1,305
1,357
 1,264
1,329
 2,569
2,686
New Jersey1,978
2,044
 738
721
 2,716
2,765
Louisiana1,602
1,656
 885
849
 2,487
2,505
1,539
1,587
 789
860
 2,328
2,447
All other29,600
30,051
 4,538
4,515
 34,138
34,566
28,118
28,895
 4,919
4,462
 33,037
33,357
Total retained loans$65,014
$66,242
 $26,272
$25,789
 $91,286
$92,031
$62,073
$63,573
 $26,616
$26,612
 $88,689
$90,185
Loans by risk ratings(b)(c)
          
Noncriticized$15,150
$15,604
 $18,387
$17,938
 $33,537
$33,542
$14,754
$15,749
 $18,707
$18,743
 $33,461
$34,492
Criticized performing261
93
 759
791
 1,020
884
407
273
 730
751
 1,137
1,024
Criticized nonaccrual7
9
 204
213
 211
222
—
—
 171
191
 171
191
(a)There were no loans that were 90 or more days past due and still accruing interest at June 30, 2018,2019, and December 31, 2017.2018.
(b)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at June 30, 2019.
(c)For risk-rated business banking and auto loans, the primary credit quality indicator is the risk rating of the loan, including whether the loans are considered to be criticized and/or nonaccrual.




Other consumer impaired loans and loan
modifications
The table below sets forth information about the Firm’s other consumer impaired loans, including risk-rated business banking and auto loans that have been placed on nonaccrual status, and loans that have been modified in TDRs.
(in millions)June 30,
2018
 December 31,
2017
June 30,
2019
 December 31,
2018
Impaired loans      
With an allowance$245
 $272
$207
 $222
Without an allowance(a)
26
 26
20
 29
Total impaired loans(b)(c)
$271
 $298
$227
 $251
Allowance for loan losses related to impaired loans$70
 $73
$68
 $63
Unpaid principal balance of impaired loans(d)
373
 402
327
 355
Impaired loans on nonaccrual status246
 268
205
 229
(a)When discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, the loan does not require an allowance. This typically occurs when the impaired loans have been partially charged off and/or there have been interest payments received and applied to the loan balance.
(b)Predominantly all other consumer impaired loans are in the U.S.
(c)Other consumer average impaired loans were $277$244 million and $381$277 million for the three months ended June 30, 20182019 and 2017,2018, respectively, and $287$245 million and $501$287 million for the six months ended June 30, 20182019 and 2017,2018, respectively. The related interest income on impaired loans, including those on a cash basis, was not material for the three and six months ended June 30, 20182019 and 2017.2018.
(d)Represents the contractual amount of principal owed at June 30, 2018,2019, and December 31, 2017.2018. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs, interest payments received and applied to the principal balance, net deferred loan fees or costs, and unamortized discounts or premiums on purchased loans.
 
Loan modifications
Certain other consumer loan modifications are considered to be TDRs as they provide various concessions to borrowers who are experiencing financial difficulty. All of these TDRs are reported as impaired loans. Refer to Note 12 of JPMorgan Chase’s 2017 Annual Report 2018 Form 10-K for further information on other consumer loans modified in TDRs.
At June 30, 20182019 and December 31, 2017 2018, other consumer loans modified in TDRs were $91 $72 million and $102$79 million, respectively. New TDRs, as well as theThe impact of these modifications, as well as new TDRs, were not material to the Firm for the three and six months ended June 30, 20182019 and 2017. 2018. Additional commitments to lend to borrowers whose loans have been modified in TDRs as of June 30, 20182019 and December 31, 2017 2018 were not material. TDRs on nonaccrual status were $66 $50 million and $72$57 million at June 30, 20182019 and December 31, 2017, 2018, respectively.


Purchased credit-impaired loans
For a detailed discussion of PCI loans, including the related accounting policies, refer to Note 12 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Residential real estate – PCI loans
The table below sets forth information about the Firm’s consumer, excluding credit card, PCI loans.

(in millions, except ratios)		Home equity
Prime mortgage
Subprime mortgage
Option ARMs
Total PCIHome equity
Prime mortgage
Subprime mortgage
Option ARMs
Total PCI
Jun 30,
2018
Dec 31,
2017

Jun 30,
2018
Dec 31,
2017

Jun 30,
2018
Dec 31,
2017

Jun 30,
2018
Dec 31,
2017

Jun 30,
2018
Dec 31,
2017
Jun 30,
2019
Dec 31,
2018

Jun 30,
2019
Dec 31,
2018

Jun 30,
2019
Dec 31,
2018

Jun 30,
2019
Dec 31,
2018

Jun 30,
2019
Dec 31,
2018
Carrying value(a)
$9,849
$10,799

$5,437
$6,479

$2,249
$2,609

$9,442
$10,689

$26,977
$30,576
$8,149
$8,963

$4,343
$4,690

$1,857
$1,945

$7,893
$8,436

$22,242
$24,034
Loan delinquency (based on unpaid principal balance)Loan delinquency (based on unpaid principal balance)



















Loan delinquency (based on unpaid principal balance)



















Current$9,465
$10,272

$4,893
$5,839

$2,326
$2,640

$8,509
$9,662

$25,193
$28,413
$7,904
$8,624

$3,922
$4,226

$1,974
$2,033

$7,139
$7,592

$20,939
$22,475
30–149 days past due248
356

271
336

295
381

446
547

1,260
1,620
239
278

256
259

254
286

372
398

1,121
1,221
150 or more days past due310
392

296
327

163
176

585
689

1,354
1,584
193
242

185
223

105
123

395
457

878
1,045
Total loans$10,023
$11,020

$5,460
$6,502

$2,784
$3,197

$9,540
$10,898

$27,807
$31,617
$8,336
$9,144

$4,363
$4,708

$2,333
$2,442

$7,906
$8,447

$22,938
$24,741
% of 30+ days past due to total loans5.57%6.79%
10.38%10.20%
16.45%17.42%
10.81%11.34%
9.40%10.13%5.18%5.69%
10.11%10.24%
15.39%16.75%
9.70%10.12%
8.71%9.16%
Current estimated LTV ratios (based on unpaid principal balance)(b)(c)
Current estimated LTV ratios (based on unpaid principal balance)(b)(c)

















Current estimated LTV ratios (based on unpaid principal balance)(b)(c)

















Greater than 125% and refreshed FICO scores:















































Equal to or greater than 660$22
$33

$2
$4

$1
$2

$4
$6

$29
$45
$15
$17

$2
$1

$2
$—

$3
$3

$22
$21
Less than 66014
21

12
16

13
20

8
9

47
66
10
13

4
7

6
9

6
7

26
36
101% to 125% and refreshed FICO scores:















































Equal to or greater than 660176
274

10
16

10
20

29
43

225
353
105
135

5
6

5
4

20
17

135
162
Less than 66086
132

26
42

42
75

55
71

209
320
45
65

19
22

28
35

21
33

113
155
80% to 100% and refreshed FICO scores:















































Equal to or greater than 660928
1,195

119
221

80
119

168
316

1,295
1,851
708
805

67
75

56
54

108
119

939
1,053
Less than 660419
559

154
230

213
309

241
371

1,027
1,469
304
388

80
112

120
161

137
190

641
851
Lower than 80% and refreshed FICO scores:















































Equal to or greater than 6605,844
6,134

3,022
3,551

824
895

5,613
6,113

15,303
16,693
5,241
5,548

2,692
2,689

820
739

5,143
5,111

13,896
14,087
Less than 6602,011
2,095

1,827
2,103

1,467
1,608

3,006
3,499

8,311
9,305
1,678
1,908

1,306
1,568

1,196
1,327

2,165
2,622

6,345
7,425
No FICO/LTV available523
577

288
319

134
149

416
470

1,361
1,515
230
265

188
228

100
113

303
345

821
951
Total unpaid principal balance$10,023
$11,020

$5,460
$6,502

$2,784
$3,197

$9,540
$10,898

$27,807
$31,617
$8,336
$9,144

$4,363
$4,708

$2,333
$2,442

$7,906
$8,447

$22,938
$24,741
Geographic region (based on unpaid principal balance)(d)Geographic region (based on unpaid principal balance)(d)



















Geographic region (based on unpaid principal balance)(d)



















California$5,954
$6,555

$3,048
$3,716

$679
$797

$5,415
$6,225

$15,096
$17,293
$4,942
$5,420

$2,381
$2,578

$568
$593

$4,517
$4,798

$12,408
$13,389
Florida1,053
1,137

374
428

264
296

794
878

2,485
2,739
901
976

306
332

224
234

660
713

2,091
2,255
New York563
607

396
457

292
330

561
628

1,812
2,022
485
525

350
365

259
268

470
502

1,564
1,660
Illinois217
233
 145
154
 119
123
 190
199
 671
709
Washington471
532

112
135

51
61

201
238

835
966
373
419

90
98

40
44

165
177

668
738
Illinois252
273

176
200

142
161

221
249

791
883
New Jersey225
242

157
178

97
110

293
336

772
866
191
210

119
134

83
88

230
258

623
690
Massachusetts71
79

133
149

84
98

278
307

566
633
59
65

108
113

71
73

226
240

464
491
Maryland53
57

109
129

113
132

199
232

474
550
44
48

91
95

93
96

169
178

397
417
Virginia49
54

84
91

35
37

197
211

365
393
Arizona184
203

87
106

52
60

137
156

460
525
149
165

63
69

39
43

103
112

354
389
Virginia59
66

100
123

43
51

245
280

447
520
All other1,138
1,269

768
881

967
1,101

1,196
1,369

4,069
4,620
926
1,029

626
679

802
843

979
1,059

3,333
3,610
Total unpaid principal balance$10,023
$11,020

$5,460
$6,502

$2,784
$3,197

$9,540
$10,898

$27,807
$31,617
$8,336
$9,144

$4,363
$4,708

$2,333
$2,442

$7,906
$8,447

$22,938
$24,741
(a)Carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition.
(b)Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.
(c)Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
(d)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at June 30, 2019.


Approximately 25% 26% of the PCI home equity portfolio are senior lien loans; the remaining balance are junior lien HELOANs or HELOCs.The following table represents the Firm’s delinquency statistics for PCI junior lien home equity loans and lines of credit based on the unpaid principal balance as of June 30, 2018,2019, and December 31, 2017.2018.
Total loans Total 30+ day delinquency rateTotal loans Total 30+ day delinquency rate
(in millions, except ratios)Jun 30,
2018
Dec 31,
2017
 Jun 30,
2018
Dec 31,
2017
Jun 30,
2019
Dec 31,
2018
 Jun 30,
2019
Dec 31,
2018
HELOCs:(a)
   
Within the revolving period(b)
$7
$51
 —%1.96%
Beyond the revolving period(c)
7,175
7,875
 3.74
4.63
HELOCs(a)(b)
5,942
6,531
 3.69%4.00%
HELOANs315
360
 3.81
5.28
250
280
 3.60
3.57
Total$7,497
$8,286
 3.73%4.65%$6,192
$6,811
 3.68%3.98%
(a)In general, these HELOCs are revolving loans for a 10-year period, after which time the HELOC converts to an interest-only loan with a balloon payment at the end of the loan’s term. Substantially all HELOCs are beyond the revolving period.
(b)Substantially all undrawn HELOCs within the revolving period have been closed.
(c)Includes loans modified into fixed rate amortizing loans.
The table below sets forthpresents the accretable yield activity for the Firm’s PCI consumer loans for the three and six months ended June 30, 2019 and 2018, and 2017, and represents the Firm’s estimate of gross interest income expected to be earned over the remaining life of the PCI loan portfolios. The table excludes the cost to fund the PCI portfolios, and therefore the accretable yield does not represent net interest income expected to be earned on these portfolios.
Total PCITotal PCI
(in millions, except ratios)Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
20182017 2018201720192018 20192018
Beginning balance$10,250
$13,122
 $11,159
$11,768
$8,043
$10,250
 $8,422
$11,159
Accretion into interest income(327)(357) (655)(716)(283)(327) (569)(655)
Changes in interest rates on variable-rate loans(548)51
 (268)167
(78)(548) (94)(268)
Other changes in expected cash flows(a)
(653)(177) (1,514)1,420
17
(653) (60)(1,514)
Balance at June 30$8,722
$12,639
 $8,722
$12,639
$7,699
$8,722
 $7,699
$8,722
Accretable yield percentage4.93%4.55% 4.86%4.45%5.41%4.93% 5.35%4.86%
(a)Other changes in expected cash flows may vary from period to period as the Firm continues to refine its cash flow model, for example cash flows expected to be collected due to the impact of modifications and changes in prepayment assumptions.
Active and suspended foreclosure
At June 30, 2018,2019, and December 31, 2017,2018, the Firm had PCI residential real estate loans with an unpaid principal balance of $1.2 billion $826 million and 1.3 billion,$964 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure.



 
Credit card loan portfolio
For further information on the credit card loan portfolio, including credit quality indicators, refer to Note 12 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The table below sets forth information about the Firm’s credit card loans.
(in millions, except ratios)June 30,
2019
December 31,
2018
Loan delinquency  
Current and less than 30 days
past due and still accruing
$154,876
$153,746
30–89 days past due and still accruing1,323
1,426
90 or more days past due and still accruing1,369
1,444
Total retained loans$157,568
$156,616
Loan delinquency ratios  
% of 30+ days past due
 to total retained loans
1.71%1.83%
% of 90+ days past due
 to total retained loans
0.87
0.92
Geographic region(a)
  
California$24,047
$23,757
Texas15,495
15,085
New York13,676
13,601
Florida9,867
9,770
Illinois9,038
8,938
New Jersey6,721
6,739
Ohio5,060
5,094
Pennsylvania4,900
4,996
Colorado4,477
4,309
Michigan3,885
3,912
All other60,402
60,415
Total retained loans$157,568
$156,616
Percentage of portfolio based on carrying value with estimated refreshed FICO scores  
Equal to or greater than 66084.0%84.2%
Less than 66014.7
15.0
No FICO available1.3
0.8

(a)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at June 30, 2019.
(in millions, except ratios)June 30,
2018
December 31,
2017
Loan delinquency  
Current and less than 30 days
past due and still accruing
$142,822
$146,704
30–89 days past due and still accruing1,171
1,305
90 or more days past due and still accruing1,228
1,378
Total retained credit card loans$145,221
$149,387
Loan delinquency ratios  
% of 30+ days past due to total retained loans1.65%1.80%
% of 90+ days past due to total retained loans0.85
0.92
Credit card loans by geographic region  
California$21,716
$22,245
Texas13,962
14,200
New York12,664
13,021
Florida8,855
9,138
Illinois8,358
8,585
New Jersey6,255
6,506
Ohio4,795
4,997
Pennsylvania4,661
4,883
Colorado4,012
4,006
Michigan3,664
3,826
All other56,279
57,980
Total retained credit card loans$145,221
$149,387
Percentage of portfolio based on carrying value with estimated refreshed FICO scores  
Equal to or greater than 66084.0%84.0%
Less than 66014.6
14.6
No FICO available1.4
1.4




Credit card impaired loans and loan modifications
For a detailed discussion of impaired credit card loans, including credit card loan modifications, refer to Note 12 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The table below sets forth information about the Firm’s impaired credit card loans. All of these loans are considered to be impaired as they have been modified in TDRs.
(in millions)June 30,
2018
December 31,
2017
June 30,
2019
December 31,
2018
Impaired credit card loans with an allowance(b)(c)
 $1,388
$1,319
Credit card loans with modified payment terms(c)
$1,191
$1,135
Modified credit card loans that have reverted to pre-modification payment terms(d)
61
80
Total impaired credit card loans(e)
$1,252
$1,215
Allowance for loan losses related to impaired credit card loans$402
$383
472
440
(a)The carrying value and the unpaid principal balance are the same for credit card impaired loans.
(b)There were no impaired loans without an allowance.
(c)Represents credit card loans outstanding to borrowers enrolled in a credit card modification program as of the date presented.
(d)Represents credit card loans that were modified in TDRs but that have subsequently reverted back to the loans’ pre-modification payment terms.
At June 30, 2018, and December 31, 2017, $29 million and $43 million, respectively, of loans have reverted back to the pre-modification payment terms of the loans due to noncompliance with the terms of the modified loans. The remaining $32 million and $37 million at June 30, 2018, and December 31, 2017, respectively, of these loans are to borrowers who have successfully completed a short-term modification program. The Firm continues to report these loans as TDRs since the borrowers’ credit lines remain closed.
(e)Predominantly all impaired credit card loans are in the U.S.
The following table presents average balances of impaired credit card loans and interest income recognized on those loans.
 Three months ended June 30, Six months ended June 30,
(in millions)2019
2018
 2019
2018
Average impaired credit card loans$1,367
$1,244
 $1,353
$1,234
Interest income on impaired credit card loans18
16
 35
31
 Three months ended June 30, Six months ended June 30,
(in millions)2018
2017
 2018
2017
Average impaired credit card loans$1,244
$1,212
 $1,234
$1,220
Interest income on impaired credit card loans16
15
 31
29

Loan modifications
The Firm may offer one of a number of loan modification programs to credit card borrowers who are experiencing financial difficulty. Most of thesethe credit card loans have been modified under long-term programs for borrowers who are experiencing financial difficulties. Modifications under long-term programsThese modifications involve placing the customer on a fixed payment plan, generally for 60 months.months, and typically include reducing the interest rate on the credit card. Substantially all modifications are considered to be TDRs. New enrollments in these loan modification programs were $202$226 million and $176$202 million for the three months ended June 30, 20182019 and 2017,2018, respectively, and $425$475 million and $361$425 million for the six months ended June 30, 2019 and 2018, and 2017, respectively. For all periods disclosed, new enrollments were less than 1% of total retained credit card loans.
For additional information about credit card loan modifications, refer to Note 12 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
 
Financial effects of modifications and redefaults
The following table provides information about the financial effects of the concessions granted on credit card loans modified in TDRs and redefaults for the periods presented.
(in millions, except
weighted-average data)
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
2018
2017
 2018
2017
2019
2018
 2019
2018
Weighted-average interest rate of loans –
before TDR
18.00%16.55% 17.61%16.35%19.38%18.00% 19.25%17.61%
Weighted-average interest rate of loans –
after TDR
5.06
4.80
 5.13
4.78
4.71
5.06
 4.88
5.13
Loans that redefaulted within one year of modification(a)
$25
$24
 $51
$45
$32
$25
 $66
$51
(a)Represents loans modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The amounts presented represent the balance of such loans as of the end of the quarter in which they defaulted.
For credit card loans modified in TDRs, payment default is deemed to have occurred when the borrower misses two consecutive contractual payments. A substantial portion of these loans are expected to be charged-off in accordance with the Firm’s standard charge-off policy. Based on historical experience, the estimated weighted-average default rate for modified credit card loans was expected to be 32.10%34.04% and 31.54%33.38% as of June 30, 2018,2019, and December 31, 2017,2018, respectively.


Wholesale loan portfolio
Wholesale loans include loans made to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals. The primary credit quality indicator for wholesale loans is the risk rating assigned to
 
each loan. For further information on these risk ratings, refer to Note 12 and Note 13 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.


The table below provides information by class of receivable for the retained loans in the Wholesale portfolio segment.
Commercial
 and industrial
 Real estate Financial
institutions		Government agencies 
Other(d)
Total
retained loans
Commercial
 and industrial
 Real estate Financial
institutions		Governments & Agencies 
Other(d)
Total
retained loans
(in millions,
except ratios)
Jun 30,
2018		Dec 31,
2017		 Jun 30,
2018		Dec 31,
2017		 Jun 30,
2018		Dec 31,
2017		Jun 30,
2018		Dec 31,
2017		 Jun 30,
2018		Dec 31,
2017		Jun 30,
2018		Dec 31,
2017		Jun 30,
2019		Dec 31,
2018		 Jun 30,
2019		Dec 31,
2018		 Jun 30,
2019		Dec 31,
2018		Jun 30,
2019		Dec 31,
2018		 Jun 30,
2019		Dec 31,
2018		Jun 30,
2019		Dec 31,
2018
Loans by risk ratings              
Investment-grade$70,285
$68,071
 $98,684
$98,467
 $29,585
$26,791
$15,332
$15,140
 $108,219
$103,212
$322,105
$311,681
$67,490
$73,497
 $100,115
$100,107
 $36,432
$32,178
$13,431
$13,984
 $119,720
$119,963
$337,188
$339,729
Noninvestment-grade:              
Noncriticized50,197
46,558
 13,952
14,335
 14,907
13,071
166
369
 14,087
9,988
93,309
84,321
54,639
51,720
 14,582
14,876
 14,779
15,316
258
201
 10,756
11,478
95,014
93,591
Criticized performing3,131
3,983
 566
710
 134
210
—
—
 231
259
4,062
5,162
3,478
3,738
 815
620
 198
150
3
2
 534
182
5,028
4,692
Criticized nonaccrual813
1,357
 138
136
 2
2
—
—
 203
239
1,156
1,734
933
851
 91
134
 10
4
—
—
 204
161
1,238
1,150
Total noninvestment-
grade
54,141
51,898
 14,656
15,181
 15,043
13,283
166
369
 14,521
10,486
98,527
91,217
59,050
56,309
 15,488
15,630
 14,987
15,470
261
203
 11,494
11,821
101,280
99,433
Total retained loans$124,426
$119,969
 $113,340
$113,648
 $44,628
$40,074
$15,498
$15,509
 $122,740
$113,698
$420,632
$402,898
$126,540
$129,806
 $115,603
$115,737
 $51,419
$47,648
$13,692
$14,187
 $131,214
$131,784
$438,468
$439,162
% of total criticized exposure to
total retained loans
3.17%4.45% 0.62%0.74% 0.30%0.53%—%—% 0.35%0.44%1.24%1.71%3.49%3.54% 0.78%0.65% 0.40%0.32%0.02%0.01% 0.56%0.26%1.43%1.33%
% of criticized nonaccrual
to total retained loans
0.65
1.13
 0.12
0.12
 —
—
—
—
 0.17
0.21
0.27
0.43
0.74
0.66
 0.08
0.12
 0.02
0.01
—
—
 0.16
0.12
0.28
0.26
              
Loans by geographic
distribution(a)
              
Total non-U.S.$30,725
$28,470
 $2,668
$3,101
 $17,506
$16,790
$2,966
$2,906
 $49,813
$44,112
$103,678
$95,379
$31,054
$29,572
 $3,248
$2,967
 $16,632
$18,524
$2,753
$3,150
 $47,473
$48,433
$101,160
$102,646
Total U.S.93,701
91,499
 110,672
110,547
 27,122
23,284
12,532
12,603
 72,927
69,586
316,954
307,519
95,486
100,234
 112,355
112,770
 34,787
29,124
10,939
11,037
 83,741
83,351
337,308
336,516
Total retained loans$124,426
$119,969
 $113,340
$113,648
 $44,628
$40,074
$15,498
$15,509
 $122,740
$113,698
$420,632
$402,898
$126,540
$129,806
 $115,603
$115,737
 $51,419
$47,648
$13,692
$14,187
 $131,214
$131,784
$438,468
$439,162
              
       
Loan
delinquency(b)
              
Current and less than 30 days past due and still accruing$123,396
$118,288
 $112,506
$113,258
 $44,607
$40,042
$15,491
$15,493
 $121,748
$112,559
$417,748
$399,640
$125,003
$128,678
 $115,409
$115,533
 $51,377
$47,622
$13,687
$14,165
 $130,246
$130,918
$435,722
$436,916
30–89 days past due
and still accruing
188
216
 675
242
 11
15
3
12
 788
898
1,665
1,383
493
109
 99
67
 31
12
3
18
 764
702
1,390
908
90 or more days
past due and
still accruing(c)
29
108
 21
12
 8
15
4
4
 1
2
63
141
111
168
 4
3
 1
10
2
4
 —
3
118
188
Criticized nonaccrual813
1,357
 138
136
 2
2
—
—
 203
239
1,156
1,734
933
851
 91
134
 10
4
—
—
 204
161
1,238
1,150
Total
retained loans
$124,426
$119,969
 $113,340
$113,648
 $44,628
$40,074
$15,498
$15,509
 $122,740
$113,698
$420,632
$402,898
$126,540
$129,806
 $115,603
$115,737
 $51,419
$47,648
$13,692
$14,187
 $131,214
$131,784
$438,468
$439,162
(a)The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.
(b)The credit quality of wholesale loans is assessed primarily through ongoing review and monitoring of an obligor’s ability to meet contractual obligations rather than relying on the past due status, which is generally a lagging indicator of credit quality. For a further discussion, refer to Note 12 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
(c)Represents loans that are considered well-collateralized and therefore still accruing interest.
(d)Other includes individuals and individual entities (predominantly consists of Wealth Management clients within AWM)AWM and includes exposure to personal investment companies and personal and testamentary trusts), SPEs and privatePrivate education and civic organizations. For more information on SPEs, refer to Note 14 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.


The following table presents additional information on the real estate class of loans within the Wholesale portfolio for the periods indicated. For further information on real estate loans, refer to Note 12 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.

(in millions, except ratios)
Multifamily Other commercial Total real estate loans
Jun 30,
2019
Dec 31,
2018
 Jun 30,
2019
Dec 31,
2018
 Jun 30,
2019
Dec 31,
2018
Real estate retained loans$78,643
$79,184
 $36,960
$36,553
 $115,603
$115,737
Criticized exposure548
388
 358
366
 906
754
% of total criticized exposure to total real estate retained loans0.70%0.49% 0.97%1.00% 0.78%0.65%
Criticized nonaccrual$38
$57
 $53
$77
 $91
$134
% of criticized nonaccrual loans to total real estate retained loans0.05%0.07% 0.14%0.21% 0.08%0.12%

(in millions, except ratios)
Multifamily Other commercial Total real estate loans
Jun 30,
2018
Dec 31,
2017
 Jun 30,
2018
Dec 31,
2017
 Jun 30,
2018
Dec 31,
2017
Real estate retained loans$78,093
$77,597
 $35,247
$36,051
 $113,340
$113,648
Criticized exposure437
491
 267
355
 704
846
% of total criticized exposure to total real estate retained loans0.56%0.63% 0.76%0.98% 0.62%0.74%
Criticized nonaccrual$53
$44
 $85
$92
 $138
$136
% of criticized nonaccrual loans to total real estate retained loans0.07%0.06% 0.24%0.26% 0.12%0.12%

Wholesale impaired retained loans and loan modifications
Wholesale impaired retained loans consist of loans that have been placed on nonaccrual status and/or that have been modified in a TDR. All impaired loans are evaluated for an asset-specific allowance as described in Note 13 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The table below sets forth information about the Firm’s wholesale impaired retained loans.

(in millions)
Commercial
and industrial
 Real estate 
Financial
institutions
 
Government
 agencies
 Other 
Total
retained loans
 
Commercial
and industrial
 Real estate 
Financial
institutions
 
Governments &
 Agencies
 Other 
Total
retained loans
 
Jun 30,
2018		Dec 31,
2017		 Jun 30,
2018		Dec 31,
2017		 Jun 30,
2018		Dec 31,
2017		 Jun 30,
2018		Dec 31,
2017		 Jun 30,
2018		Dec 31,
2017		 Jun 30,
2018		 Dec 31,
2017		 Jun 30,
2019		Dec 31,
2018		 Jun 30,
2019		Dec 31,
2018		 Jun 30,
2019		Dec 31,
2018		 Jun 30,
2019		Dec 31,
2018		 Jun 30,
2019		Dec 31,
2018		 Jun 30,
2019		 Dec 31,
2018		 
Impaired loans                            
With an allowance$773
$1,170
 $85
$78
 $89
$93
 $—
$—
 $162
$168
 $1,109
 $1,509
 $734
$807
 $78
$107
 $10
$4
 $—
$—
 $213
$152
 $1,035
 $1,070
 
Without an allowance(a)
110
228
 53
60
 —
—
 —
—
 55
70
 218
 358
 244
140
 14
27
 —
—
 —
—
 2
13
 260
 180
 
Total impaired loans
$883
$1,398
 $138
$138
 $89
$93
 $—
$—
 $217
$238
 $1,327
(c) 
$1,867
(c) 
$978
$947
 $92
$134
 $10
$4
 $—
$—
 $215
$165
 $1,295
(c) 
$1,250
(c) 
Allowance for loan losses related to impaired loans$250
$404
 $16
$11
 $4
$4
 $—
$—
 $48
$42
 $318
 $461
 $209
$252
 $22
$25
 $2
$1
 $—
$—
 $55
$19
 $288
 $297
 
Unpaid principal balance of impaired loans(b)
1,067
1,604
 205
201
 89
94
 —
—
 428
255
 1,789
 2,154
 1,131
1,043
 118
203
 11
4
 —
—
 228
473
 1,488
 1,723
 
(a)When the discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, the loan does not require an allowance. This typically occurs when the impaired loans have been partially charged-off and/or there have been interest payments received and applied to the loan balance.
(b)Represents the contractual amount of principal owed at June 30, 2018,2019, and December 31, 2017.2018. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs; interest payments received and applied to the carrying value; net deferred loan fees or costs; and unamortized discount or premiums on purchased loans.
(c)Based upon the domicile of the borrower, largely consists of loans in the U.S.
The following table presents the Firm’s average impaired retained loans for the periods indicated.
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions)2018
2017
 2018
2017
2019
2018
 2019
2018
Commercial and industrial$1,106
$1,201
 $1,224
$1,321
$953
$1,106
 $1,087
$1,224
Real estate142
165
 142
179
106
142
 118
142
Financial institutions90
15
 91
13
13
90
 13
91
Government agencies—
—
 —
—
Governments & Agencies—
—
 —
—
Other208
274
 219
254
293
208
 248
219
Total(b)(a)
$1,546
$1,655
 $1,676
$1,767
$1,365
$1,546
 $1,466
$1,676
(a)The related interest income on accruing impaired loans and interest income recognized on a cash basis were not material for the three and six months ended June 30, 20182019 and 2017.
(b)The prior period amounts have been revised to conform with the current period presentation.2018.
 
Certain loan modifications are considered to be TDRs as they provide various concessions to borrowers who are experiencing financial difficulty. All TDRs are reported as impaired loans in the tables above. TDRs were $865$462 million and $614$576 million as of June 30, 2018,2019, and December 31, 2017,2018, respectively. The impact of these modifications, as well as new TDRs, were not material to the Firm for the three and six months ended June 30, 2019 and 2018.




Note 12 – Allowance for credit losses
For a detailed discussion of the allowance for credit losses and the related accounting policies, refer to Note13 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Allowance for credit losses and related information
The table below summarizes information about the allowances for loan losses and lending-related commitments, and includes a breakdown of loans and lending-related commitments by impairment methodology.
 2019 2018 
Six months ended June 30,
(in millions)
Consumer, excluding
credit card
Credit card WholesaleTotal Consumer, excluding credit card Credit card WholesaleTotal 
Allowance for loan losses             
Beginning balance at January 1,$4,146
$5,184
 $4,115
$13,445
 $4,579
 $4,884
 $4,141
$13,604
 
Gross charge-offs471
2,725
 150
3,346
 539
 2,578
 241
3,358
 
Gross recoveries(277)(283) (22)(582) (451) (244) (76)(771) 
Net charge-offs194
2,442
 128
2,764
 88
 2,334
 165
2,587
 
Write-offs of PCI loans(a)
89
—
 —
89
 93
 —
 —
93
 
Provision for loan losses(204)2,642
 131
2,569
 90
 2,334
 (98)2,326
 
Other—
(1) 6
5
 —
 —
 —
—
 
Ending balance at June 30,$3,659
$5,383
 $4,124
$13,166
 $4,488
 $4,884
 $3,878
$13,250
 
              
Allowance for loan losses by impairment methodology             
Asset-specific(b)
$145
$472
(c) 
$288
$905
 $226
 $402
(c) 
$318
$946
 
Formula-based2,215
4,911
 3,836
10,962
 2,130
 4,482
 3,560
10,172
 
PCI1,299
—
 —
1,299
 2,132
 —
 —
2,132
 
Total allowance for loan losses$3,659
$5,383
 $4,124
$13,166
 $4,488
 $4,884
 $3,878
$13,250
 
              
Loans by impairment methodology             
Asset-specific$6,562
$1,388
 $1,295
$9,245
 $7,387
 $1,252
 $1,327
$9,966
 
Formula-based322,888
156,180
 437,173
916,241
 340,223
 143,969
 419,302
903,494
 
PCI22,242
—
 —
22,242
 26,977
 —
 3
26,980
 
Total retained loans$351,692
$157,568
 $438,468
$947,728
 $374,587
 $145,221
 $420,632
$940,440
 
              
Impaired collateral-dependent loans             
Net charge-offs$19
$—
 $8
$27
 $14
 $—
 $—
$14
 
Loans measured at fair value of collateral less cost to sell2,098
—
 83
2,181
 2,124
 —
 300
2,424
 
              
Allowance for lending-related commitments             
Beginning balance at January 1,$33
$—
 $1,022
$1,055
 $33
 $—
 $1,035
$1,068
 
Provision for lending-related commitments—
—
 75
75
 —
 —
 49
49
 
Other—
—
 (1)(1) —
 —
 —
—
 
Ending balance at June 30,$33
$—
 $1,096
$1,129
 $33
 $—
 $1,084
$1,117
 
              
Allowance for lending-related commitments by impairment methodology             
Asset-specific$—
$—
 $136
$136
 $—
 $—
 $139
$139
 
Formula-based33
—
 960
993
 33
 —
 945
978
 
Total allowance for lending-related commitments$33
$—
 $1,096
$1,129
 $33
 $—
 $1,084
$1,117
 
              
Lending-related commitments by impairment methodology             
Asset-specific$—
$—
 $465
$465
 $—
 $—
 $712
$712
 
Formula-based51,491
633,970
 393,836
1,079,297
 51,784
 592,452
 401,045
1,045,281
 
Total lending-related commitments$51,491
$633,970
 $394,301
$1,079,762
 $51,784
 $592,452
 $401,757
$1,045,993
 
 2018 2017 
Six months ended June 30,
(in millions)
Consumer, excluding
credit card
Credit card WholesaleTotal Consumer, excluding credit card Credit card WholesaleTotal 
Allowance for loan losses             
Beginning balance at January 1,$4,579
$4,884
 $4,141
$13,604
 5,198
 $4,034
 $4,544
$13,776
 
Gross charge-offs539
2,578
 241
3,358
 1,105
 2,223
 99
3,427
 
Gross recoveries(451)(244) (76)(771) (307) (193) (69)(569) 
Net charge-offs88
2,334
 165
2,587
 798
 2,030
 30
2,858
 
Write-offs of PCI loans(a)
93
—
 —
93
 46
 —
 —
46
 
Provision for loan losses90
2,334
 (98)2,326
 448
 2,380
 (337)2,491
 
Other—
—
 —
—
 (2) —
 2
—
 
Ending balance at June 30,$4,488
$4,884
 $3,878
$13,250
 $4,800
 $4,384
 $4,179
$13,363
 
              
Allowance for loan losses by impairment methodology             
Asset-specific(b)
$226
$402
(c) 
$318
$946
 $296
 $370
(c) 
$345
$1,011
 
Formula-based2,130
4,482
 3,560
10,172
 2,239
 4,014
 3,834
10,087
 
PCI2,132
—
 —
2,132
 2,265
 —
 —
2,265
 
Total allowance for loan losses$4,488
$4,884
 $3,878
$13,250
 $4,800
 $4,384
 $4,179
$13,363
 
              
Loans by impairment methodology             
Asset-specific$7,387
$1,252
 $1,327
$9,966
 $8,340
 $1,204
 $1,760
$11,304
 
Formula-based340,223
143,969
 419,302
903,494
 323,711
 138,831
 392,663
855,205
 
PCI26,977
—
 3
26,980
 33,064
 —
 3
33,067
 
Total retained loans$374,587
$145,221
 $420,632
$940,440
 $365,115
 $140,035
 $394,426
$899,576
 
              
Impaired collateral-dependent loans             
Net charge-offs$14
$—
 $—
$14
 $36
 $—
 $16
$52
 
Loans measured at fair value of collateral less cost to sell2,124
—
 300
2,424
 2,234
 —
 296
2,530
 
              
Allowance for lending-related commitments             
Beginning balance at January 1,$33
$—
 $1,035
$1,068
 $26
 $—
 $1,052
$1,078
 
Provision for lending-related commitments—
—
 49
49
 6
 —
 33
39
 
Other—
—
 —
—
 —
 —
 —
—
 
Ending balance at June 30,$33
$—
 $1,084
$1,117
 $32
 $—
 $1,085
$1,117
 
              
Allowance for lending-related commitments by impairment methodology             
Asset-specific$—
$—
 $139
$139
 $—
 $—
 $211
$211
 
Formula-based33
—
 945
978
 32
 —
 874
906
 
Total allowance for lending-related commitments$33
$—
 $1,084
$1,117
 $32
 $—
 $1,085
$1,117
 
              
Lending-related commitments by impairment methodology             
Asset-specific$—
$—
 $712
$712
 $—
 $—
 $750
$750
 
Formula-based51,784
592,452
 401,045
1,045,281
 53,872
(d) 
576,264
 365,748
995,884
(d) 
Total lending-related commitments$51,784
$592,452
 $401,757
$1,045,993
 $53,872
(d) 
$576,264
 $366,498
$996,634
(d) 

(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.
(b)Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified in a TDR.
(c)The asset-specific credit card allowance for loan losses is related to loans that have been modified in a TDR; such allowance is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
(d)The prior period amounts have been revised to conform with the current period presentation.



Note 13 – Variable interest entities
For a further description of JPMorgan Chase’s accounting policies regarding consolidation of VIEs, refer to Note 1 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The following table summarizes the most significant types of Firm-sponsored VIEs by business segment.
Line of BusinessTransaction TypeActivityForm 10-Q page reference
CCBCredit card securitization trustsSecuritization of originated credit card receivables145138
 Mortgage securitization trustsServicing and securitization of both originated and purchased residential mortgages145-147138-140
CIBMortgage and other securitization trustsSecuritization of both originated and purchased residential and commercial mortgages, and other consumer loans145-147138-140
 Multi-seller conduitsAssist clients in accessing the financial markets in a cost-efficient manner and structures transactions to meet investor needs147140
 Municipal bond vehiclesFinancing of municipal bond investments147140

The Firm also invests in and provides financing and other services to VIEs sponsored by third parties. Refer to page 148 pages 141–142 of this Note for more information on the VIEs sponsored by third parties.
Significant Firm-sponsored VIEs
Credit card securitizations
For a more detailed discussion of JPMorgan Chase’s involvement with credit card securitizations, refer to Note 14 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
As a result of the Firm’s continuing involvement, the Firm is considered to be the primary beneficiary of its Firm-sponsored credit card securitization trusts, including its primary vehicle, the Chase Issuance Trust. Refer to the table on page 148141 of this Note for further information on consolidated VIE assets and liabilities.
 
Firm-sponsored mortgage and other securitization trusts
The Firm securitizes (or has securitized) originated and purchased residential mortgages, commercial mortgages and other consumer loans primarily in its CCB and CIB businesses. Depending on the particular transaction, as well as the respective business involved, the Firm may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts.
For a detailed discussion of the Firm’s involvement with Firm-sponsored mortgage and other securitization trusts, as well as the accounting treatment relating to such trusts, refer to Note 14 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.


The following table presents the total unpaid principal amount of assets held in Firm-sponsored private-label securitization entities, including those in which the Firm has continuing involvement, and those that are consolidated by the Firm. Continuing involvement includes servicing the loans, holding senior interests or subordinated interests (including amounts required to be held pursuant to credit risk retention rules), recourse or guarantee arrangements, and derivative transactions.contracts. In certain instances, the Firm’s only continuing involvement is servicing the loans. Refer to Securitization activity on page 149 142 of this Note for further information regarding the Firm’s cash flows associated with and interests retained in nonconsolidated VIEs, and page 149 pages 142–143 of this Note for information on the Firm’s loan sales to U.S. government agencies.
Principal amount outstanding 
JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
Principal amount outstanding 
JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
June 30, 2018 (in millions)Total assets held by securitization VIEsAssets
held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement Trading assets Investment securitiesOther financial assetsTotal interests held by JPMorgan
Chase
June 30, 2019 (in millions)Total assets held by securitization VIEsAssets
held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvement Trading assets Investment securitiesOther financial assetsTotal interests held by JPMorgan
Chase
Securitization-related(a)
      
Residential mortgage:      
Prime/Alt-A and option ARMs$67,033
$3,414
$52,235
 $434
$770
$—
$1,204
$61,838
$3,053
$49,625
 $424
$512
$—
$936
Subprime17,891
10
16,517
 63
—
—
63
15,664
—
14,441
 19
—
—
19
Commercial and other(b)
100,825
—
65,166
 538
1,037
217
1,792
101,785
—
80,511
 785
792
215
1,792
Total$185,749
$3,424
$133,918
 $1,035
$1,807
$217
$3,059
$179,287
$3,053
$144,577
 $1,228
$1,304
$215
$2,747
Principal amount outstanding 
JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
Principal amount outstanding 
JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
December 31, 2017 (in millions)Total assets held by securitization VIEs
Assets
held in consolidated securitization VIEs
Assets held in nonconsolidated securitization VIEs with continuing involvement Trading assets Investment securitiesOther financial assets
Total interests held by
JPMorgan
Chase
December 31, 2018 (in millions)Total assets held by securitization VIEs
Assets
held in consolidated securitization VIEs
Assets held in nonconsolidated securitization VIEs with continuing involvement Trading assets Investment securitiesOther financial assets
Total interests held by
JPMorgan
Chase
Securitization-related(a)
      
Residential mortgage:      
Prime/Alt-A and option ARMs$68,874
$3,615
$52,280
 $410
$943
$—
$1,353
$63,350
$3,237
$50,679
 $623
$647
$—
$1,270
Subprime18,984
7
17,612
 93
—
—
93
16,729
32
15,434
 53
—
—
53
Commercial and other(b)
94,905
63
63,411
 745
1,133
157
2,035
102,961
—
79,387
 783
801
210
1,794
Total$182,763
$3,685
$133,303
 $1,248
$2,076
$157
$3,481
$183,040
$3,269
$145,500
 $1,459
$1,448
$210
$3,117
(a)Excludes U.S. government agency securitizations and re-securitizations, which are not Firm-sponsored. Refer to page 149pages 142–143 of this Note for information on the Firm’s loan sales to U.S. government agencies.
(b)Consists of securities backed by commercial loans (predominantly real estate) and non-mortgage-related consumer receivables purchased from third parties.
(c)Excludes the following: retained servicing (refer to Note 14 for a discussion of MSRs); securities retained from loan sales to U.S. government agencies; interest rate and foreign exchange derivatives primarily used to manage interest rate and foreign exchange risks of securitization entities (Refer to Note 4 for further information on derivatives); senior and subordinated securities of $345$215 million and $79$77 million, respectively, at June 30, 2018,2019, and $88$87 million and $48$28 million, respectively, at December 31, 2017,2018, which the Firm purchased in connection with CIB’s secondary market-making activities.
(d)Includes interests held in re-securitization transactions.
(e)As of June 30, 2018,2019, and December 31, 2017,2018, 56% and 60% and 61%, respectively, of the Firm’s retained securitization interests, which are predominantly carried at fair value and include amounts required to be held pursuant to credit risk retention rules, were risk-rated “A” or better, on an S&P-equivalent basis. The retained interests in prime residential mortgages consisted of $1.2 billion$895 million and $1.3 billion of investment-grade, and $30$41 million and $48$16 million of noninvestment-grade retained interests at June 30, 2018,2019, and December 31, 2017,2018, respectively. The retained interests in commercial and other securitizations trusts consisted of $1.4 billion and $1.6$1.2 billion of investment-grade retained interests at both June 30, 2019 and $427December 31, 2018, and $593 million and $412$623 million of noninvestment-grade retained interests at June 30, 2018,2019, and December 31, 2017,2018, respectively.


Residential mortgage
The Firm securitizes residential mortgage loans originated by CCB, as well as residential mortgage loans purchased from third parties by either CCB or CIB.CIB. For a more detailed description of the Firm’s involvement with residential mortgage securitizations, refer to Note 14 of JPMorgan Chase’s 2017 Annual Report. 2018 Form 10-K. Refer to the table on page 148 141 of this Note for more information on the consolidated residential mortgage securitizations, and the table on the previous page of this Note for further information on interests held in nonconsolidated residential mortgage securitizations.
Commercial mortgages and other consumer securitizations
CIB originates and securitizes commercial mortgage loans, and engages in underwriting and trading activities involving the securities issued by securitization trusts. For a more detailed description of the Firm’s involvement with commercial mortgage and other consumer securitizations, refer to Note 14 of JPMorgan Chase’s 2017 Annual Report. 2018 Form 10-K. Refer to the table on page 148 141 of this Note for more information on the consolidated commercial mortgage securitizations, and the table on the previous page of this Note for further information on interests held in nonconsolidated securitizations.
Re-securitizations
For a more detailed description of JPMorgan Chase’s participation in certain re-securitization transactions, refer to Note 14 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The following table presents the principal amount of securities transferred to re-securitization VIEs.
Three months ended
June 30,		 Six months ended
June 30,		Three months ended June 30, Six months ended June 30,
(in millions)2018
 2017
 2018
 2017
2019
 2018
 2019
 2018
Transfers of securities to VIEs              
Agency$3,995
 $1,462
 $8,781
 $4,686
$2,564
 $3,995
 $7,067
 $8,781
The following table presents information on nonconsolidated re-securitization VIEs.
Nonconsolidated
re-securitization VIEs
Nonconsolidated
re-securitization VIEs
(in millions)June 30, 2018 December 31, 2017June 30, 2019
 December 31, 2018
Firm-sponsored private-label      
Assets held in VIEs with continuing involvement(a)
$414
 $783
$22
 $118
Interest in VIEs14
 29
—
 10
Agency      
Interest in VIEs2,249
 2,250
2,192
 3,058
(a)representsRepresents the principal amount and includes the notional amount of interest-only securities.
As of June 30, 2018,2019, and December 31, 2017,2018, the Firm did not consolidate any agency re-securitization VIEs or any Firm-sponsored private-label re-securitization VIEs.
 
Multi-seller conduits
For a more detailed description of JPMorgan Chase’s principal involvement with Firm-administered Firm-administered multi-seller conduits, refer to Note 14 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
In the normal course of business, JPMorgan Chase makes markets in and invests in commercial paper issued by the Firm-administeredFirm-administered multi-seller conduits. The Firm held $20.5 $8.2 billion and $20.4$20.1 billionof the commercial paper issued by the Firm-administeredFirm-administered multi-seller conduits atJune 30, 2018,2019, and December 31, 2017,2018, respectively, which have been eliminated in consolidation. The Firm’s investments reflect the Firm’s funding needs and capacity and were not driven by market illiquidity.Other than the amounts required to be held pursuant to credit risk retention rules, the Firm is not obligated under any agreement to purchase the commercial paper issued by the Firm-administeredFirm-administered multi-seller conduits.
Deal-specific liquidity facilities, program-wide liquidity and credit enhancement provided by the Firm have been eliminated in consolidation. The Firm or the Firm-administered multi-seller conduits provide lending-related commitments to certain clients of the Firm-administered multi-seller conduits. The unfunded commitments were $9.7 $8.4 billion and $8.8$8.0 billion at June 30, 2018,2019, and December 31, 2017,2018, respectively, and are reported as off-balance sheet lending-related commitments.commitments in other unfunded commitments to extend credit. For more information on off-balance sheet lending-related commitments, refer to Note 20.22.
Municipal bond vehicles
Municipal bond vehicles or tender option bond (“TOB”) trusts allow institutions to finance their municipal bond investments at short-term rates. TOB transactions are known as Customercustomer TOB trusts and Non-Customernon-customer TOB trusts. Customer TOB trusts are sponsored by a third party;party, refer to page 148 pages 141–142 of this Note for further information.
The Firm serves as sponsor for all Non-Customernon-customer TOB transactions. For a more detailed description of JPMorgan Chase’s Municipal bond vehicles, refer to Note 14 of JPMorgan Chase’s 2017 Annual Report. The Firm had no exposure to nonconsolidated Firm-sponsored municipal bond vehicles at June 30, 2018 and December 31, 2017, respectively.Form 10-K.
Refer to page 148 of this Note for further information on consolidated municipal bond vehicles.




Consolidated VIE assets and liabilities
The following table presents information on assets and liabilities related to VIEs consolidated by the Firm as of June 30, 2018,2019, and December 31, 2017.2018.
Assets LiabilitiesAssets Liabilities
June 30, 2018 (in millions)Trading assetsLoans
Other(b) 
 Total
assets(c)
 
Beneficial interests in
VIE assets(d)
Other(e)
Total
liabilities
June 30, 2019 (in millions)Trading assetsLoans
Other(b) 
 Total
assets(c)
 
Beneficial interests in
VIE assets(d)
Other(e)
Total
liabilities
VIE program type      
Firm-sponsored credit card trusts$—
$31,815
$535
$32,350
 $16,505
$15
$16,520
$—
$28,230
$412
$28,642
 $9,302
$8
$9,310
Firm-administered multi-seller conduits2
23,128
49
23,179
 2,969
30
2,999
3
22,575
335
22,913
 14,734
36
14,770
Municipal bond vehicles1,370
—
3
1,373
 1,401
2
1,403
1,304
—
3
1,307
 1,281
2
1,283
Mortgage securitization entities(a)
9
3,461
48
3,518
 296
181
477
2
3,078
55
3,135
 267
146
413
Other133
—
1,777
1,910
 152
105
257
113
—
182
295
 1
99
100
Total$1,514
$58,404
$2,412
$62,330
 $21,323
$333
$21,656
$1,422
$53,883
$987
$56,292
 $25,585
$291
$25,876
      
Assets LiabilitiesAssets Liabilities
December 31, 2017 (in millions)Trading assetsLoans
Other(b) 
 Total
assets(c)
 
Beneficial interests in
VIE assets(d)
Other(e)
Total
liabilities
December 31, 2018 (in millions)Trading assetsLoans
Other(b) 
 Total
assets(c)
 
Beneficial interests in
VIE assets(d)
Other(e)
Total
liabilities
VIE program type      
Firm-sponsored credit card trusts$—
$41,923
$652
$42,575
 $21,278
$16
$21,294
$—
$31,760
$491
$32,251
 $13,404
$12
$13,416
Firm-administered multi-seller conduits—
23,411
48
23,459
 3,045
28
3,073
—
24,411
300
24,711
 4,842
33
4,875
Municipal bond vehicles1,278
—
3
1,281
 1,265
2
1,267
1,779
—
4
1,783
 1,685
3
1,688
Mortgage securitization entities(a)
66
3,661
55
3,782
 359
199
558
53
3,285
40
3,378
 308
161
469
Other105
—
1,916
2,021
 134
104
238
134
—
178
312
 2
103
105
Total$1,449
$68,995
$2,674
$73,118
 $26,081
$349
$26,430
$1,966
$59,456
$1,013
$62,435
 $20,241
$312
$20,553
(a)Includes residential and commercial mortgage securitizations.
(b)Includes assets classified as cash and other assets on the Consolidated balance sheets.
(c)The assets of the consolidated VIEs included in the program types above are used to settle the liabilities of those entities. The assets and liabilities include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation.
(d)The interest-bearing beneficial interest liabilities issued by consolidated VIEs are classified in the line item on the Consolidated balance sheets titled, “Beneficial interests issued by consolidated variable interest entities.” The holders of these beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. For conduits program-wide credit enhancements, refer to note 14 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K. Included in beneficial interests in VIE assets are long-term beneficial interests of $17.0$9.6 billion and $21.8$13.7 billion at June 30, 2018,2019, and December 31, 2017, respectively.2018.
(e)Includes liabilities classified as accounts payable and other liabilities on the Consolidated balance sheets.
VIEs sponsored by third parties
The Firm enters into transactions with VIEs structured by other parties. These include, for example, acting as a derivative counterparty, liquidity provider, investor, underwriter, placement agent, remarketing agent, trustee or custodian. These transactions are conducted at arm’s-length, and individual credit decisions are based on the analysis of the specific VIE, taking into consideration the quality of the underlying assets. Where the Firm does not have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, or a variable interest that could potentially be significant, the Firm generally does not consolidate the VIE, but it records and reports these positions on its Consolidated balance sheets in the same manner it would record and report positions in respect of any other third-party transaction.
Tax credit vehicles
The Firm holds investments in unconsolidated tax credit vehicles, which are limited partnerships and similar entities that construct, own and operate affordable housing, wind, solar and other alternative energy projects. These entities are primarily considered VIEs. A third party is typically the
 
general partner or managing member and has control over the significant activities of the tax credit vehicles, and accordingly the Firm does not consolidate tax credit vehicles. The Firm generally invests in these partnerships as a limited partner and earns a return primarily through the receipt of tax credits allocated to the projects. The maximum loss exposure, represented by equity investments and funding commitments, was $13.4 $16.0 billion as and $16.5 billion, of which $4.1 billion and $4.0 billion was unfunded at June 30, 20182019 and December 31, 2017, of which $2.9 billion and $3.2 billion was unfunded, 2018, respectively. In order to reduce the risk of loss, the Firm assesses each project and withholds varying amounts of its capital investment until qualification of the project qualifies for tax credits. For further information on affordable housing tax credits, refer to Note 24 of JPMorgan Chase’s 2017 Annual Report. 2018 Form 10-K. For more information on off-balance sheet lending-related commitments, refer to Note 20 22 of this Form 10-Q.
Customer municipal bond vehicles (TOB trusts)
The Firm may provide various services to Customer TOB trusts, including remarketing agent, liquidity or tender option provider. In certain Customer TOB transactions, the


Firm, as liquidity provider, has entered into a reimbursement agreement with the Residual holder.
In those transactions, upon the termination of the vehicle, the Firm has recourse to the third partythird-party Residual holders for any shortfall. The Firm does not have any intent to protect Residual holders from potential losses on any of the underlying municipal bonds. The Firm does not consolidate Customer TOB trusts, since the Firm does not have the power to make decisions that significantly impact the economic performance of the municipal bond vehicle.
The Firm’s maximum exposure as a liquidity provider to Customer TOB trusts at June 30, 20182019 and December 31,
 
20172018 was $5.2$5.3 billion and $5.3$4.8 billion, respectively. The fair value of assets held by such VIEs at June 30, 20182019 and December 31, 2017,2018, was $8.6 billion and $9.2 million, $7.7 billion, respectively. For more information on off-balance sheet lending-related commitments, refer to Note 20. 22.
Loan securitizations
The Firm has securitized and sold a variety of loans, including residential mortgage, credit card, and commercial mortgage. For a further description of the Firm’s accounting policies regarding securitizations, refer to Note 14 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Securitization activity
The following table provides information related to the Firm’s securitization activities for the three and six months ended June 30, 2019 and 2018, and 2017, related to assets held in Firm-sponsoredFirm-sponsored securitization entities that were not consolidated by the Firm, and where sale accounting was achieved at the time of the securitization.
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
2018 2017 2018 20172019 2018 2019 2018
(in millions)
Residential mortgage(e)
Commercial and other(f)
 
Residential mortgage(e)
Commercial and other(f)
 
Residential mortgage(e)
Commercial and other(f)
 
Residential mortgage(e)
Commercial and other(f)
Residential mortgage(e)
Commercial and other(f)
 
Residential mortgage(e)
Commercial and other(f)
 
Residential mortgage(e)
Commercial and other(f)
 
Residential mortgage(e)
Commercial and other(f)
Principal securitized$3,129
$2,181
 $1,020
$1,997
 $4,459
$5,172
 $2,049
$3,312
$2,125
$1,974
 $3,129
$2,181
 $3,907
$2,738
 $4,459
$5,172
All cash flows during the period(a):
              
Proceeds received from loan sales as financial instruments(b)(c)
$3,122
$2,196
 $1,048
$2,029
 $4,460
$5,187
 $2,083
$3,377
$2,188
$2,041
 $3,122
$2,196
 $4,010
$2,823
 $4,460
$5,187
Servicing fees collected(c)(d)
45
—
 52
1
 91
—
 102
2
73
1
 80
—
 150
1
 161
—
Purchases of previously transferred financial assets (or the underlying collateral)(d)
—
—
 1
—
 —
—
 1
—
Cash flows received on interests137
84
 128
206
 229
131
 259
541
114
98
 137
84
 199
149
 229
131
(a)Excludes re-securitization transactions.
(b)Predominantly includes Level 2 assets.
(c)The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.
(d)The prior period amounts have been revised to conform with the current period presentation.
(d)Includes cash paid by the Firm to reacquire assets from off–balance sheet, nonconsolidated entities – for example, loan repurchases due to representation and warranties and servicer “clean-up” calls.
(e)Includes prime Alt-A, subprime, and option ARMs.mortgages only. Excludes loan securitization transactions entered into with Ginnie Mae, Fannie Mae and Freddie Mac.
(f)Includes commercial mortgage and other consumer loans.

Loans and excess MSRs sold to U.S. government-sponsored
enterprises, and loans in securitization transactions pursuant to
Ginnie Mae guidelines and other third-party-sponsored
securitization entities
In addition to the amounts reported in the securitization activity tables above, the Firm, in the normal course of business, sells originated and purchased mortgage loans and certain originated excess MSRs on a nonrecourse basis, predominantly to U.S. government-sponsored enterprises(“U.S. GSEs”). These loans and excess MSRs are sold primarily for the purpose of securitization by the U.S. GSEs, who provide certain guarantee provisions (e.g., credit enhancement of the loans). The Firm also sells loans into securitization transactions pursuant to Ginnie Mae guidelines; these loans are typically insured or guaranteed by another U.S. government agency. The Firm does not consolidate the securitization vehicles underlying these
transactions as it is not the primary beneficiary. For a limited number of loan sales, the Firm is obligated to share
a portion of the credit risk associated with the sold loans with the purchaser. Refer to Note 2022 of this Form 10-Q, and Note 27 of JPMorgan Chase’s 2017 Annual Report2018 Form 10-K for additional information about the Firm’s loan sales- and securitization-related indemnifications. Refer to Note 14 for additional information about the impact of the Firm’sFirm’s sale of certain excess MSRs.

The following table summarizes the activities related to loans sold to the U.S. GSEs, and loans in securitization transactions pursuant to Ginnie Mae guidelines, and other third-party-sponsored securitization entities.guidelines.


Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions)2018
2017
 201820172019
2018
 20192018
Carrying value of loans sold$8,076
$11,711
 $16,836
$28,880
$23,138
$8,076
 $38,317
$16,836
Proceeds received from loan sales as cash—
4
 —
13
2
—
 70
—
Proceeds from loan sales as securities(a)(b)
7,959
11,602
 16,578
28,589
22,823
7,959
 37,660
16,578
Total proceeds received from loan sales(b)(c)
$7,959
$11,606
 $16,578
$28,602
$22,825
$7,959
 $37,730
$16,578
Gains on loan sales(d)(e)
$9
$42
 $23
$73
$104
$9
 $153
$23
(a)Predominantly includesIncludes securities from U.S. GSEs and Ginnie Mae that are generally sold shortly after receipt.receipt or retained as part of the Firm’s Investment securities portfolio.
(b)Included in level 2 assets.
(c)Excludes the value of MSRs retained upon the sale of loans.
(c)(d)Gains on loan sales include the value of MSRs.
(d)(e)The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.
Options to repurchase delinquent loans
In addition to the Firm’s obligation to repurchase certain loans due to material breaches of representations and warranties as discussed in Note 20, 22, the Firm also has the option to repurchase delinquent loans that it services for Ginnie Mae loan pools, as well as for other U.S. government
agencies under certain arrangements.arrangements. The Firm typically elects to repurchase delinquent loans from Ginnie Mae loan
pools as it continues to service them and/or manage the foreclosure process in accordance with the applicable requirements, and such loans continue to be insured or guaranteed. When the Firm’s repurchase option becomes exercisable, such loans must be reported on the Consolidated balance sheets as a loan with a corresponding liability. For additional information, refer to Note 11.
The following table presents loans the Firm repurchased or had an option to repurchase, real estate owned, and foreclosed government-guaranteed residential mortgage loans recognized on the Firm’s Consolidated balance sheets as of June 30, 20182019 and December 31, 2017. 2018. Substantially all of these loans and real estate are insured or guaranteed by U.S. government agencies.
(in millions)June 30, 2018
Dec 31,
2017
Jun 30,
2019
Dec 31,
2018
Loans repurchased or option to repurchase(a)
$8,196
$8,629
$5,214
$7,021
Real estate owned84
95
56
75
Foreclosed government-guaranteed residential mortgage loans(b)
455
527
277
361
(a)Predominantly all of these amounts relate to loans that have been repurchased from Ginnie Mae loan pools.
(b)Relates to voluntary repurchases of loans, which are included in accrued interest and accounts receivable.


Loan delinquencies and liquidation losses
The table below includes information about components of nonconsolidated securitized financial assets held in Firm-sponsored Firm-sponsored private-label securitization entities, in which the Firm has continuing involvement, and delinquencies as of June 30, 2018,2019, and December 31, 2017.2018.
     
Net liquidation losses(a)
 Securitized assets 90 days past due Three months ended June 30, Six months ended June 30,
(in millions)Jun 30,
2019
Dec 31,
2018
 Jun 30,
2019
Dec 31,
2018
 2019
2018
 2019
2018
Securitized loans           
Residential mortgage:           
Prime / Alt-A & option ARMs$49,625
$50,679
 $2,900
$3,354
 $171
$168
 $328
$271
Subprime14,441
15,434
 2,076
2,478
 167
140
 311
(462)
Commercial and other80,511
79,387
 131
225
 24
21
 165
48
Total loans securitized$144,577
$145,500
 $5,107
$6,057
 $362
$329
 $804
$(143)
     
Net liquidation losses(a)
 Securitized assets 90 days past due Three months ended June 30, Six months ended June 30,
(in millions)Jun 30,
2018
Dec 31,
2017
 Jun 30,
2018
Dec 31,
2017
 2018
2017
 2018
2017
Securitized loans           
Residential mortgage:           
Prime / Alt-A & option ARMs$52,235
$52,280
 $4,087
$4,870
 $168
$226
 $271
$438
Subprime16,517
17,612
 2,880
3,276
 140
201
 (462)376
Commercial and other65,166
63,411
 628
957
 21
5
 48
57
Total loans securitized$133,918
$133,303
 $7,595
$9,103
 $329
$432
 $(143)$871

(a)Includes liquidation gains as a result of private label mortgage settlement payments during the first quarter of 2018, which were reflected as asset recoveries by trustees.






Note14 – Goodwill and Mortgage servicing rights
For a discussion of the accounting policies related to goodwill and mortgage servicing rights, refer to Note 15 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Goodwill
The following table presents goodwill attributed to the business segments.
(in millions)June 30,
2019
December 31,
2018
Consumer & Community Banking$30,991
$30,984
Corporate & Investment Bank6,769
6,770
Commercial Banking2,860
2,860
Asset & Wealth Management6,857
6,857
Total goodwill$47,477
$47,471
(in millions)June 30,
2018
December 31,
2017
Consumer & Community Banking$30,999
$31,013
Corporate & Investment Bank6,772
6,776
Commercial Banking2,860
2,860
Asset & Wealth Management6,857
6,858
Total goodwill$47,488
$47,507

The following table presents changes in the carrying amount of goodwill.
Three months ended June 30, Six months ended June 30,Three months ended June 30, Six months ended June 30,
(in millions)2018
 2017
 2018
 2017
2019
 2018
 2019
 2018
Balance at beginning
of period
$47,499
 $47,292
 $47,507
 $47,288
$47,474
 $47,499
 $47,471
 $47,507
Changes during the period from:              
Other(a)
(11) 8
 (19) 12
3
 (11) 6
 (19)
Balance at June 30,$47,488
 $47,300
 $47,488
 $47,300
$47,477
 $47,488
 $47,477
 $47,488
(a)IncludesPrimarily relates to foreign currency remeasurement.
 
Goodwill Impairmentimpairment testing
For a further description of the Firm’s goodwill impairment testing, including the primary method used to estimate the fair value of the reporting units, and the assumptions used in the goodwill impairment test, refer to Impairment testing on pages 244–245252–253 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
GoodwillThe Firm reviewed current economic conditions, estimated market cost of equity, as well as actual and projections of business performance for all its businesses. Based upon such reviews, the Firm concluded that the goodwill allocated to its reporting units was not impaired atas of June 30, 2018,2019 or December 31, 2017,2018, nor was goodwill written off due to impairment during the six months ended June 30, 20182019 or 2017.2018.
Declines in business performance, increases in credit losses, increases in equity capital requirements, as well as deterioration in economic or market conditions, adverse regulatory or legislative changes or increases in the estimated market cost of equity, could cause the estimated fair values of the Firm’s reporting units or their associated goodwill to decline in the future, which could result in a material impairment charge to earnings in a future period related to some portion of the associated goodwill.


Mortgage servicing rights
MSRs represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the MSR asset against contractual servicing and ancillary fee income. MSRs are either purchased from third parties or recognized upon sale or securitization of mortgage loans if servicing is retained. For a further description of the MSR asset, interest rate risk management, and the valuation of MSRs, refer to NotesNotes 2 and 15 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The following table summarizes MSR activity for the three and six months endedJune 30, 20182019 and 2017.2018.
As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,		 As of or for the three months
ended June 30,		 As of or for the six months
ended June 30,
(in millions, except where otherwise noted)2018
 2017
 2018
 2017
 2019
 2018
 2019
 2018
Fair value at beginning of period$6,202
 $6,079
 $6,030
 $6,096
 $5,957
 $6,202
 $6,130
 $6,030
MSR activity:               
Originations of MSRs157
 154
 333
 371
 424
 157
 756
 333
Purchase of MSRs79
 —
 146
 —
 2
 79
 106
 146
Disposition of MSRs(a)
(104) (67) (399) (138) (217) (104) (328) (399)
Net additions/(dispositions)132
 87
 80
 233
 209
 132
 534
 80
               
Changes due to collection/realization of expected cash flows(187) (213) (347) (419) (247) (187) (446) (347)
               
Changes in valuation due to inputs and assumptions:               
Changes due to market interest rates and other(b)
103
 (178) 485
 (121) (540) 103
 (841) 485
Changes in valuation due to other inputs and assumptions:               
Projected cash flows (e.g., cost to service)—
 2
 —
 14
 (350)
(e) 
—
 (350)
(e) 
—
Discount rates—
 (7) 24
 (19) 153
 —
 153
 24
Prepayment model changes and other(c)
(9) (17) (31) (31) (89) (9) (87) (31)
Total changes in valuation due to other inputs and assumptions(9) (22) (7) (36) (286) (9) (284) (7)
Total changes in valuation due to inputs and assumptions94
 (200) 478
 (157) (826) 94
 (1,125) 478
Fair value at June 30,$6,241
 $5,753
 $6,241
 $5,753
 $5,093
 $6,241
 $5,093
 $6,241
               
Change in unrealized gains/(losses) included in income related to MSRs held at June 30,$94
 $(200) $478
 $(157) $(826) $94
 $(1,125) $478
Contractual service fees, late fees and other ancillary fees included in income446
 477
 911
 964
 437
 446
 857
 911
Third-party mortgage loans serviced at June 30, (in billions)534
 569
 534
 569
 527
 534
 527
 534
Net servicer advances at June 30, (in billions)(d)
3.3
 4.1
 3.3
 4.1
 
Servicer advances, net of an allowance for uncollectible amounts, at June 30, (in billions)(d)
2.2
 3.3
 2.2
 3.3
(a)Includes excess MSRs transferred to agency-sponsored trusts in exchange for stripped mortgage backed securities (“SMBS”). In each transaction, a portion of the SMBS was acquired by third parties at the transaction date; the Firm acquired the remaining balance of those SMBS as trading securities.
(b)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.
(c)Represents changes in prepayments other than those attributable to changes in market interest rates.
(d)Represents amounts the Firm pays as the servicer (e.g., scheduled principal and interest, taxes and insurance), which will generally be reimbursed within a short period of time after the advance from future cash flows from the trust or the underlying loans. The Firm’s credit risk associated with these servicer advances is minimal because reimbursement of the advances is typically senior to all cash payments to investors. In addition, the Firm maintains the right to stop payment to investors if the collateral is insufficient to cover the advance. However, certain of these servicer advances may not be recoverable if they were not made in accordance with applicable rules and agreements.
(e)The decrease in projected cash flows was largely related to default servicing assumption updates.


The following table presents the components of mortgage fees and related income (including the impact of MSR risk management activities) for the three and six months ended June 30, 20182019 and 2017.2018.
 Three months ended June 30, Six months ended June 30, Three months ended June 30, Six months ended June 30,
(in millions) 2018
 2017
 2018
 2017
 2019
 2018
 2019
 2018
CCB mortgage fees and related income                
                
Net production revenue $93
 $152
 $188
 $293
 $353
 $93
 $553
 $188
                
Net mortgage servicing revenue:                
Operating revenue:                
Loan servicing revenue 441
 518
 954
 1,040
 417
 441
 821
 954
Changes in MSR asset fair value due to collection/realization of expected cash flows (187) (212) (347) (417) (247) (187) (446) (347)
Total operating revenue 254
 306
 607
 623
 170
 254
 375
 607
Risk management:                
Changes in MSR asset fair value due to market interest rates and other(a)
 104
 (178) 486
 (121) (540) 104
 (841) 486
Other changes in MSR asset fair value due to other inputs and assumptions
in model(b)
 (9) (22) (7) (36) (286) (9) (284) (7)
Change in derivative fair value and other (118) 143
 (485) 48
 582
 (118) 872
 (485)
Total risk management (23) (57) (6) (109) (244) (23) (253) (6)
Total net mortgage servicing revenue 231
 249
 601
 514
 (74) 231
 122
 601
                
Total CCB mortgage fees and related income 324
 401
 789
 807
 279
 324
 675
 789
                
All other —
 3
 —
 3
 —
 —
 —
 —
Mortgage fees and related income $324
 $404
 $789
 $810
 $279
 $324
 $675
 $789
(a)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.
(b)Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices).
The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at June 30, 2018,2019, and December 31, 2017, 2018, and outlines hypothetical sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.
(in millions, except rates)Jun 30,
2019
 Dec 31,
2018
Weighted-average prepayment speed assumption (constant prepayment rate)11.58% 8.78%
Impact on fair value of 10% adverse change$(216) $(205)
Impact on fair value of 20% adverse change(414) (397)
Weighted-average option adjusted spread(a)(b)
7.84% 7.87%
Impact on fair value of a 100 basis point adverse change$(183) $(235)
Impact on fair value of a 200 basis point adverse change(353) (452)

(in millions, except rates)Jun 30,
2018
 Dec 31,
2017
Weighted-average prepayment speed assumption (“CPR”)8.43% 9.35%
Impact on fair value of 10% adverse change$(195) $(221)
Impact on fair value of 20% adverse change(379) (427)
Weighted-average option adjusted spread8.72% 9.04%
Impact on fair value of a 100 basis point adverse change$(245) $(250)
Impact on fair value of a 200 basis point adverse change(472) (481)
CPR: Constant prepayment rate.
(a)Includes the impact of operational risk and regulatory capital.
(b)The prior period amount has been revised to conform with the current period presentation.
 
Changes in fair value based on variationvariations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In this table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change.




Note 15 – Deposits
For further information on deposits, refer to Note 17 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
At June 30, 2018,2019, and December 31, 2017, 2018, noninterest-bearing and interest-bearing deposits were as follows.
(in millions)June 30,
2018
 December 31, 2017
June 30,
2019
 December 31, 2018
U.S. offices      
Noninterest-bearing$385,741
 $393,645
Interest-bearing (included $15,542 and $14,947 at fair value)(a)
819,454
 793,618
Noninterest-bearing (included $26,673 and $17,204 at fair value)(a)(b)
$394,237
 $386,709
Interest-bearing (included $2,530 and $2,487 at fair value)(a)(b)
841,397
 813,881
Total deposits in U.S. offices1,205,195
 1,187,263
1,235,634
 1,200,590
Non-U.S. offices      
Noninterest-bearing16,602
 15,576
Interest-bearing (included $4,154 and $6,374 at fair value)(a)
230,325
 241,143
Noninterest-bearing (included $2,445 and $2,367 at fair value)(a)(b)
20,419
 21,459
Interest-bearing (included $1,276 and $1,159 at fair value)(a)(b)
268,308
 248,617
Total deposits in non-U.S. offices246,927
 256,719
288,727
 270,076
Total deposits$1,452,122
 $1,443,982
$1,524,361
 $1,470,666
(a)Includes structured notes classified as deposits for which the fair value option has been elected. For a further discussion, refer to Note 3 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
(b)In the second quarter of 2019, the Firm reclassified balances related to certain structured notes from interest-bearing to noninterest-bearing deposits as the associated returns are recorded in principal transactions revenue and not in net interest income. This change was applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.


 
Note 16 – Leases
Lease commitments
Effective January 1, 2019, the Firm adopted new guidance that requires lessees to recognize on the Consolidated balance sheets all leases with lease terms greater than twelve months as a lease liability with a corresponding right-of-use (“ROU”) asset. Accordingly, the Firm recognized operating lease liabilities and ROU assets of $8.2 billion and $8.1 billion, respectively. The adoption of the new lease guidance did not have a material impact on the Firm’s Consolidated statements of income. The change in accounting due to the adoption of the new lease guidance did not result in a material change to the future net minimum rental payments/receivables or to the net rental expense when compared to December 31, 2018.
Firm as lessee
At June 30, 2019, JPMorgan Chase and its subsidiaries were obligated under a number of noncancelable leases, predominantly operating leases for premises and equipment used primarily for business purposes. These leases generally have terms of 20 years or less, determined based on the contractual maturity of the lease, and include periods covered by options to extend or terminate the lease when the Firm is reasonably certain that it will exercise those options. None of these lease agreements impose restrictions on the Firm’s ability to pay dividends, engage in debt or equity financing transactions or enter into further lease agreements. Certain of these leases contain escalation clauses that will increase rental payments based on maintenance, utility and tax increases, which are non-lease components. The Firm elected not to separate lease and non-lease components of a contract for its real estate leases. As such, real estate lease payments represent payments on both lease and non-lease components.
Operating lease liabilities and ROU assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term. The future lease payments are discounted at a rate that represents the Firm’s collateralized borrowing rate for financing instruments of a similar term and are included in accounts payable and other liabilities. The operating lease ROU asset, included in premises and equipment, also includes any lease prepayments made, plus initial direct costs incurred, less any lease incentives received. Rental expense associated with operating leases is recognized on a straight-line basis over the lease term, and generally included in occupancy expense in the Consolidated statements of income.

The following tables provide information related to the Firm’s operating leases:
As of June 30,
(in millions, except where otherwise noted)
 
2019
Right-of-use assets$8,118
Lease liabilities8,404
  
Weighted average remaining lease term (in years)8.7
Weighted average discount rate3.75%
  
Supplemental cash flow information 
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows$778
Supplemental non-cash information 
Right-of-use assets obtained in exchange for operating lease obligations$587
  


(in millions)
Three months ended June 30, 2019Six months ended June 30, 2019
Rental expense  
Gross rental expense$506
$1,020
Sublease rental income(42)(88)
Net rental expense$464
$932

The following table presents future payments under operating leases as of June 30, 2019:
Year ended December 31, (in millions) 
2019 (excluding six months ended June 30, 2019)$787
20201,535
20211,356
20221,161
2023988
After 20234,180
Total future minimum lease payments10,007
Less: Imputed interest(1,603)
Total$8,404

In addition to the table above, as of June 30, 2019, the Firm had additional future operating lease commitments of $1.5 billion that were signed but had not yet commenced. These operating leases will commence between 2019 and 2022 with lease terms up to 25 years.
Firm as lessor
The Firm provides auto and equipment lease financing to its customers through lease arrangements with lease terms that may contain renewal, termination and/or purchase options. Generally, the Firm’s lease financings are operating leases. These assets are recognized in other assets on the Firm’s Consolidated balance sheets and are depreciated on a straight-line basis over the lease term to reduce the asset to its estimated residual value. Depreciation expense is included in technology, communications and equipment expense in the Consolidated statements of income. The
Firm’s lease income is generally recognized on a straight-line basis over the lease term and is included in other income in the Consolidated statements of income.
On a periodic basis, the Firm assesses leased assets for impairment, and if the carrying amount of the leased asset exceeds the undiscounted cash flows from the lease payments and the estimated residual value upon disposition of the leased asset, an impairment loss is recognized.
The risk of loss on auto and equipment leased assets relating to the residual value of the leased assets is monitored through projections of the asset residual values at lease origination and periodic review of residual values, and is mitigated through arrangements with certain manufacturers or lessees. 
The following table presents the carrying value of assets subject to leases reported on the Consolidated balance sheets:
(in millions) June 30, 2019December 31, 2018
Carrying value of assets subject to operating leases, net of accumulated depreciation $22,406
$21,428
Accumulated depreciation 5,643
5,303

The following table presents the Firm’s operating lease income and the related depreciation expense on the Consolidated statements of income:
  Three months ended June 30,Six months ended June 30,

(in millions)
 2019
2018
2019
2018
Operating lease income $1,327
$1,112
$2,643
$2,159
Depreciation expense 988
852
1,985
1,663

The following table presents future receipts under operating leases as of June 30, 2019:
Year ended December 31, (in millions) 
2019 (excluding six months ended June 30, 2019)$2,107
20203,381
20211,866
2022386
202369
After 2023136
Total future minimum lease payments$7,945



Note 17 - Preferred stock
For a further discussion on preferred stock, refer to Note 20 of JPMorgan Chase’s 2018 Form 10-K.
The following is a summary of JPMorgan Chase’s non-cumulative preferred stock outstanding as of June 30, 2019 and December 31, 2018, and the quarterly dividend declarations for the three and six months ended June 30, 2019 and 2018.
 Shares
Carrying value
 (in millions)
 Contractual rate in effect at June 30, 2019
Earliest redemption date(b)
Floating annual rate of three-month LIBOR plus:
Dividend declared per share(c)
 
 
June 30, 2019(a)
December 31, 2018(a)
June 30, 2019December 31, 2018Issue dateThree months ended June 30,Six months ended June 30, 
 2019201820192018 
Fixed-rate:             
Series P90,000
90,000
$900
$900
2/5/20135.450%3/1/2018NA$136.25
$136.25$272.50$272.50 
Series T—
92,500
—
925
1/30/2014—
3/1/2019NANA167.50167.50335.00 
Series W88,000
88,000
880
880
6/23/20146.300
9/1/2019NA157.50
157.50315.00315.00 
Series Y143,000
143,000
1,430
1,430
2/12/20156.125
3/1/2020NA153.13
153.13306.26306.26 
Series AA142,500
142,500
1,425
1,425
6/4/20156.100
9/1/2020NA152.50
152.50305.00305.00 
Series BB115,000
115,000
1,150
1,150
7/29/20156.150
9/1/2020NA153.75
153.75307.50307.50 
Series DD169,625
169,625
1,696
1,696
9/21/20185.750
12/1/2023NA143.75
NA287.50NA 
Series EE185,000
—
1,850
—
1/24/20196.000
3/1/2024NA211.67
NA211.67NA
(d) 
              
Fixed-to-floating-rate:             
Series I430,375
430,375
$4,304
$4,304
4/23/2008LIBOR + 3.47%
4/30/2018LIBOR + 3.47%$153.00
$147.34$308.51$344.84
(e) 
Series Q150,000
150,000
1,500
1,500
4/23/20135.150
5/1/2023LIBOR + 3.25128.75
128.75257.50257.50 
Series R150,000
150,000
1,500
1,500
7/29/20136.000
8/1/2023LIBOR + 3.30150.00
150.00300.00300.00 
Series S200,000
200,000
2,000
2,000
1/22/20146.750
2/1/2024LIBOR + 3.78168.75
168.75337.50337.50 
Series U100,000
100,000
1,000
1,000
3/10/20146.125
4/30/2024LIBOR + 3.33153.13
153.13306.25306.25 
Series V250,000
250,000
2,500
2,500
6/9/20145.000
7/1/2019LIBOR + 3.32125.00
125.00250.00250.00 
Series X160,000
160,000
1,600
1,600
9/23/20146.100
10/1/2024LIBOR + 3.33152.50
152.50305.00305.00 
Series Z200,000
200,000
2,000
2,000
4/21/20155.300
5/1/2020LIBOR + 3.80132.50
132.50265.00265.00 
Series CC125,750
125,750
1,258
1,258
10/20/20174.625
11/1/2022LIBOR + 2.58115.63
115.63231.25231.25 
Total preferred stock2,699,250
2,606,750
$26,993
$26,068
         
(a)Represented by depositary shares.
(b)Fixed-to-floating rate notes convert to a floating rate at the earliest redemption date.
(c)Dividends are declared quarterly. Dividends are payable quarterly on fixed-rate preferred stock. Dividends are payable semiannually on fixed-to-floating-rate preferred stock while at a fixed rate, and payable quarterly after converting to a floating rate.
(d)Dividends in the amount of $211.67 per share were declared on April 12, 2019 and include dividends from the original issue date of January 24, 2019 through May 31, 2019.
(e)Prior to April 30, 2018, the dividend rate was fixed at 7.90%.
On July 31, 2019, the Firm issued $2.25 billion of fixed-to-floating rate non-cumulative preferred stock, Series FF, and on August 2, 2019, the Firm announced that it will redeem all $880 million of its 6.30% non-cumulative preferred stock, Series W on September 1, 2019.
On January 24, 2019, the Firm issued $1.85 billion of 6.00% non-cumulative preferred stock, Series EE, and on March 1, 2019, the Firm redeemed all $925 million of its 6.70% non-cumulative preferred stock, Series T.



Note 18 – Earnings per share
For a discussion of the computation of basic and diluted earnings per share (“EPS”), refer to Note 22 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K. The following table presents the calculation of basic and diluted EPS for the three and six months ended June 30, 20182019 and 2017.2018.
(in millions, except per share amounts)Three months ended
June 30,		 Six months ended
June 30,
2019
2018
 2019
2018
Basic earnings per share     
Net income$9,652
$8,316
 $18,831
$17,028
Less: Preferred stock dividends404
379
 778
788
Net income applicable to common equity9,248
7,937
 18,053
16,240
Less: Dividends and undistributed earnings allocated to participating securities56
57
 108
121
Net income applicable to common stockholders$9,192
$7,880
 $17,945
$16,119
      
Total weighted-average basic shares
  outstanding
3,250.6
3,415.2
 3,274.3
3,436.7
Net income per share$2.83
$2.31
 $5.48
$4.69
      
Diluted earnings per share     
Net income applicable to common stockholders$9,192
$7,880
 $17,945
$16,119
Total weighted-average basic shares
  outstanding
3,250.6
3,415.2
 3,274.3
3,436.7
Add: Employee stock options, SARs, warrants and unvested PSUs9.1
19.5
 9.6
20.4
Total weighted-average diluted shares outstanding3,259.7
3,434.7
 3,283.9
3,457.1
Net income per share$2.82
$2.29
 $5.46
$4.66


(in millions, except per share amounts)Three months ended
June 30,		 Six months ended
June 30,
2018
2017
 2018
2017
Basic earnings per share     
Net income$8,316
$7,029
 $17,028
$13,477
Less: Preferred stock dividends379
411
 788
823
Net income applicable to common equity7,937
6,618
 16,240
12,654
Less: Dividends and undistributed earnings allocated to participating securities57
63
 121
123
Net income applicable to common stockholders$7,880
$6,555
 $16,119
$12,531
      
Total weighted-average basic shares
  outstanding
3,415.2
3,574.1
 3,436.7
3,587.9
Net income per share$2.31
$1.83
 $4.69
$3.49
      
Diluted earnings per share     
Net income applicable to common stockholders$7,880
$6,555
 $16,119
$12,531
Total weighted-average basic shares
  outstanding
3,415.2
3,574.1
 3,436.7
3,587.9
Add: Employee stock options, SARs, warrants and unvested PSUs19.5
24.9
 20.4
26.8
Total weighted-average diluted shares outstanding3,434.7
3,599.0
 3,457.1
3,614.7
Net income per share$2.29
$1.82
 $4.66
$3.47



Note 1719 – Accumulated other comprehensive income/(loss)
AOCI includes the after-tax change in unrealized gains and losses on investment securities, foreign currency translation adjustments (including the impact of related derivatives), fair value changes of excluded components on fair value hedges, cash flow hedging activities, net loss and prior service costs/(credit) related to the Firm’s defined benefit pension and OPEB plans.plans, and on fair value option-elected liabilities arising from changes in the Firm’s own credit risk (DVA).
 As of or for the three months ended
June 30, 2019
(in millions)		Unrealized
gains/(losses)
on investment securities		 Translation adjustments, net of hedges Fair value hedgesCash flow hedges Defined benefit
pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
 
 Balance at April 1, 2019 $2,616
   $(751)  $(159) $29
   $(2,272)  $(21)  $(558) 
 Net change 1,093
   99
  86
 97
   41
  256
  1,672
 
 Balance at June 30, 2019 $3,709
   $(652)  $(73) $126
   $(2,231)  $235
  $1,114
 
                        
 As of or for the three months ended
June 30, 2018
(in millions)		Unrealized
gains/(losses)
on investment securities		 Translation adjustments, net of hedges Fair value hedgesCash flow hedges Defined benefit pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
 
 Balance at April 1, 2018 $1,826
   $(720)  (94) $19
   $(1,914)  $(180)  $(1,063) 
 Net change (227)   88
  (68) (166)   38
  260
  (75) 
 Balance at June 30, 2018 $1,599
   $(632)  $(162) $(147)   $(1,876)  $80
  $(1,138) 
                        
 As of or for the six months ended
June 30, 2019
(in millions)		Unrealized
gains/(losses)
on investment securities		 Translation adjustments, net of hedges Fair value hedgesCash flow hedges Defined benefit
pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
 
 Balance at January 1, 2019 $1,202
   $(727)  $(161) $(109)   $(2,308)  $596
  $(1,507) 
 Net change 2,507
   75
  88
 235
   77
  (361)  2,621
 
 Balance at June 30, 2019 $3,709
   $(652)  $(73) $126
   $(2,231)  $235
  $1,114
 
                        
 As of or for the six months ended
June 30, 2018
(in millions)		Unrealized
gains/(losses)
on investment securities		 Translation adjustments, net of hedges Fair value hedgesCash flow hedges Defined benefit pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
 
 Balance at January 1, 2018 $2,164
   $(470)  $—
 $76
   $(1,521)  $(368)  $(119) 
 
Cumulative effect of changes in accounting principles(a)
 896
   (277)  $(54) 16
   (414)  (79)  88
 
 Net change (1,461)   115
  (108) (239)   59
  527
  (1,107) 
 Balance at June 30, 2018 $1,599
   $(632)  $(162) $(147)   $(1,876)  $80
  $(1,138) 
 As of or for the three months ended
June 30, 2018
(in millions)		Unrealized
gains/(losses)
on investment securities		 Translation adjustments, net of hedges 
Fair value hedges(b)
Cash flow hedges Defined benefit
pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
 
 Balance at April 1, 2018 $1,826
   $(720)  $(94) $19
   $(1,914)  $(180)  $(1,063) 
 Net change (227)   88
  (68) (166)   38
  260
  (75) 
 Balance at June 30, 2018 $1,599
   $(632)  $(162) $(147)   $(1,876)  $80
  $(1,138) 
                        
 As of or for the three months ended
June 30, 2017
(in millions)		Unrealized
gains/(losses)
on investment securities		 Translation adjustments, net of hedges Fair value hedgesCash flow hedges Defined benefit pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
 
 Balance at April 1, 2017 $1,762
   $(157)  NA
 $(9)   $(2,274)  $(245)  $(923) 
 Net change 457
   —
  NA
 53
   19
  2
  531
 
 Balance at June 30, 2017 $2,219
   $(157)  NA
 $44
   $(2,255)  $(243)  $(392) 
                        
 As of or for the six months ended
June 30, 2018
(in millions)		Unrealized
gains/(losses)
on investment securities		 Translation adjustments, net of hedges Fair value hedgesCash flow hedges Defined benefit
pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
 
 Balance at January 1, 2018 $2,164
   $(470)  $—
 $76
   $(1,521)  $(368)  $(119) 
 
Cumulative effect of changes in accounting principles:(a)
                      
 Premium amortization on purchased callable debt securities 261
   —
  —
 —
   —
  —
  261
 
 Hedge accounting 169
   —
  (54) —
   —
  —
  115
 
 Reclassification of certain tax effects from AOCI 466
   (277)  —
 16
   (414)  (79)  (288) 
 Net change (1,461)   115
  (108) (239)   59
  527
  (1,107) 
 Balance at June 30, 2018 $1,599
   $(632)  $(162) $(147)   $(1,876)  $80
  $(1,138) 
                        
 As of or for the six months ended
June 30, 2017
(in millions)		Unrealized
gains/(losses)
on investment securities		 Translation adjustments, net of hedges Fair value hedgesCash flow hedges Defined benefit pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
 
 Balance at January 1, 2017 $1,524
   $(164)  NA
 $(100)   $(2,259)  $(176)  $(1,175) 
 Net change 695
   7
  NA
 144
   4
  (67)  783
 
 Balance at June 30, 2017 $2,219
   $(157)  NA
 $44
   $(2,255)  $(243)  $(392) 

(a)Represents the adjustment to AOCI as a result of the new accounting standards adopted in the first quarter of 2018.
(b)Represents changes in fair value2018, refer to Note 1 of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross currency swap.JPMorgan Chase’s 2018 Form 10-K.





The following table presents the pre-tax and after-tax changes in the components of OCI.-
2018 20172019 2018
Three months ended June 30, (in millions)Pre-tax Tax effect After-tax Pre-tax Tax effect After-taxPre-tax Tax effect After-tax Pre-tax Tax effect After-tax
Unrealized gains/(losses) on investment securities:                      
Net unrealized gains/(losses) arising during the period$(376) $88
 $(288) $695
 $(259) $436
$1,491
 $(365) $1,126
 $(376) $88
 $(288)
Reclassification adjustment for realized (gains)/losses included in net income(a)
80
 (19) 61
 34
 (13) 21
(44) 11
 (33) 80
 (19) 61
Net change(296) 69
 (227) 729
 (272) 457
1,447
 (354) 1,093
 (296) 69
 (227)
Translation adjustments(b):
                      
Translation(1,056) 208
 (848) 317
 (117) 200
123
 72
 195
 (1,056) 208
 (848)
Hedges1,227
 (291) 936
 (319) 119
 (200)(128) 32
 (96) 1,227
 (291) 936
Net change171
 (83) 88
 (2) 2
 —
(5) 104
 99
 171
 (83) 88
Fair value hedges, net change(c):

(89) 21
 (68) NA
 NA
 NA
112
 (26) 86
 (89) 21
 (68)
Cash flow hedges:                      
Net unrealized gains/(losses) arising during the period(199) 47
 (152) 23
 (10) 13
101
 (24) 77
 (199) 47
 (152)
Reclassification adjustment for realized (gains)/losses included in net income(d)
(19) 5
 (14) 65
 (25) 40
26
 (6) 20
 (19) 5
 (14)
Net change(218) 52
 (166) 88
 (35) 53
127
 (30) 97
 (218) 52
 (166)
Defined benefit pension and OPEB plans:                      
Net gains/(losses) arising during the period2
 —
 2
 6
 (2) 4
Net gain/(loss) arising during the period(1) —
 (1) 2
 —
 2
Reclassification adjustments included in net income(e):
                      
Amortization of net loss26
 (6) 20
 62
 (23) 39
41
 (7) 34
 26
 (6) 20
Prior service costs/(credits)(6) 2
 (4) (9) 4
 (5)
Amortization of prior service cost/(credit)1
 (1) —
 (6) 2
 (4)
Foreign exchange and other31
 (11) 20
 (25) 6
 (19)9
 (1) 8
 31
 (11) 20
Net change53
 (15) 38
 34
 (15) 19
50
 (9) 41
 53
 (15) 38
DVA on fair value option elected liabilities, net change:340
 (80) 260
 2
 —
 2
338
 (82) 256
 340
 (80) 260
Total other comprehensive income/(loss)$(39) $(36) $(75) $851
 $(320) $531
$2,069
 $(397) $1,672
 $(39) $(36) $(75)
                      
2018 20172019 2018
Six months ended June 30, (in millions)Pre-tax Tax effect After-tax Pre-tax Tax effect After-taxPre-tax Tax effect After-tax Pre-tax Tax effect After-tax
Unrealized gains/(losses) on investment securities:                      
Net unrealized gains/(losses) arising during the period$(2,234) $525
 $(1,709) $1,062
 $(390) $672
$3,366
 $(816) $2,550
 $(2,234) $525
 $(1,709)
Reclassification adjustment for realized (gains)/losses included in net income(a)
325
 (77) 248
 37
 (14) 23
(57) 14
 (43) 325
 (77) 248
Net change(1,909) 448
 (1,461) 1,099
 (404) 695
3,309
 (802) 2,507
 (1,909) 448
 (1,461)
Translation adjustments:(b)
           
Translation adjustments(b):
           
Translation(667) 143
 (524) 899
 (342) 557
164
 36
 200
 (667) 143
 (524)
Hedges838
 (199) 639
 (875) 325
 (550)(166) 41
 (125) 838
 (199) 639
Net change171
 (56) 115
 24
 (17) 7
(2) 77
 75
 171
 (56) 115
Fair value hedges, net change(c):
(141) 33
 (108) NA
 NA
 NA
115
 (27) 88
 (141) 33
 (108)
Cash flow hedges:                      
Net unrealized gains/(losses) arising during the period(243) 58
 (185) 82
 (31) 51
242
 (57) 185
 (243) 58
 (185)
Reclassification adjustment for realized (gains)/losses included in net income(d)
(71) 17
 (54) 150
 (57) 93
65
 (15) 50
 (71) 17
 (54)
Net change(314) 75
 (239) 232
 (88) 144
307
 (72) 235
 (314) 75
 (239)
Defined benefit pension and OPEB plans:                      
Net gains/(losses) arising during the period25
 (6) 19
 (52) 19
 (33)
Net gain/(loss) arising during the period2
 (2) —
 25
 (6) 19
Reclassification adjustments included in net income(e):
                      
Amortization of net loss52
 (12) 40
 124
 (46) 78
83
 (16) 67
 52
 (12) 40
Prior service costs/(credits)(12) 3
 (9) (18) 7
 (11)
Settlement (gain)/loss

—
 —
 —
 (3) 1
 (2)
Amortization of prior service cost/(credit)2
 (1) 1
 (12) 3
 (9)
Foreign exchange and other12
 (3) 9
 (32) 4
 (28)1
 8
 9
 12
 (3) 9
Net change77
 (18) 59
 19
 (15) 4
88
 (11) 77
 77
 (18) 59
DVA on fair value option elected liabilities, net change:$690
 $(163) $527
 $(105) $38
 $(67)$(469) $108
 $(361) $690
 $(163) $527
Total other comprehensive income/(loss)$(1,426) $319
 $(1,107) $1,269
 $(486) $783
$3,348
 $(727) $2,621
 $(1,426) $319
 $(1,107)
(a)The pre-tax amount is reported in investmentInvestment securities lossesgains/(losses) in the Consolidated statements of income.
(b)Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. During the three and six months ended June 30, 2019, the Firm reclassified net pre-tax gains of $6 million to other income and $1 million to other expense, respectively. These amounts, which related to the liquidation of certain legal entities, are comprised of $5 million related to net investment hedge gains and $2 million related to cumulative translation adjustments. During the three and six months ended June 30, 2018, the Firm reclassified a net pre-tax loss of $174 million to other expense related to the liquidation of a legal entity, comprised of $23 million related to net investment hedge losses and $151 million related to cumulative translation adjustments. During the six months ended June 30, 2017, the Firm reclassified a net pre-tax loss of $25 million to other expense related to the liquidation of a legal entity, comprised of $47 million related to net investment hedge gains and $72 million related to cumulative translation adjustments. There were no such reclassifications during the three months ended June 30, 2017.
(c)Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross currency swap.
(d)The pre-tax amounts are predominantly recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income.
(e)The pre-tax amount is reported in other expense in the Consolidated statements of income.



Note 1820 – Restricted cash and other restricted
assets
For a detailed discussion of the Firm’s restricted cash and other restricted assets, refer to Note 25 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
As a resultCertain of the adoptionFirm’s cash and other assets are restricted as to withdrawal or usage. These restrictions are imposed by various regulatory authorities based on the particular activities of the restrictedFirm’s subsidiaries.
The Firm is also subject to rules and regulations established by other U.S. and non U.S. regulators. As part of its compliance with the respective regulatory requirements, the Firm’s broker-dealer activities are subject to certain restrictions on cash accounting guidance in the first quarter of 2018, restricted cash is included with unrestricted cash when reconciling the beginning and ending cash balances on the Consolidated statements of cash flows.other assets.
The following table presents the components of the Firm’s restricted cash:
(in billions)June 30,
2018
December 31, 2017
June 30,
2019
December 31, 2018
Cash reserves – Federal Reserve Banks$22.8
$25.7
$24.9
$22.1
Segregated for the benefit of securities and futures brokerage customers15.3
16.8
16.7
14.6
Cash reserves at non-U.S. central banks and held for other general purposes3.2
3.3
3.9
4.1
Total restricted cash(a)
$41.3
$45.8
$45.5
$40.8
(a)Comprises $40.0$44.2 billion and $44.8$39.6 billion in deposits with banks, and $1.3 billion and $1.0$1.2 billion in cash and due from banks on the Consolidated balance sheets as of June 30, 20182019 and December 31, 2017,2018, respectively.

Also, as of June 30, 20182019 and December 31, 2017,2018, the Firm had:had the following other restricted assets:
Cash and securities pledged with clearing organizations for the benefit of customers of $18.4$21.0 billion and $18.0$20.6 billion, respectively.
Securities with a fair value of $5.2$3.9 billion and $3.5$9.7 billion, respectively, were also restricted in relation to customer activity.




 
Note 1921 – Regulatory capital
For a detailed discussion on regulatory capital, refer to Note 26 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The Federal Reserve establishes capital requirements, including well-capitalized standards, for the consolidated financial holding company. The Office of the Comptroller of the Currency (“OCC”) establishes similar minimum capital requirements and standards for the Firm’s insured depository institutions (“IDI”), including JPMorgan Chase Bank, N.A.
Effective January 1, 2019, the capital adequacy of the Firm and Chase Bank USA, N.A.its IDI subsidiaries is evaluated against the fully phased-in measures under Basel III and represents the lower of the Standardized or Advanced approaches. During 2018, the required capital measures were subject to the transitional rules and as of December 31, 2018 were the same on a fully phased-in and on a transitional basis.
Under the risk-based capital and leverage-based guidelines of the Federal Reserve, JPMorgan Chase is required to maintain minimum ratios for CET1, Tier 1, Total, Tier 1 leverage and the SLR. Failure to meet these minimum requirements could cause the Federal Reserve to take action. IDI subsidiaries are also subject to these capital requirements by their respective primary regulators.
The following table represents the minimum and well-capitalized ratios to which the Firm and its IDI subsidiaries were subject as of June 30, 2018.2019.
Minimum capital ratios Well-capitalized ratiosMinimum capital ratios Well-capitalized ratios
BHC(a)(e)

IDI(b)(e)

 
BHC(c) 

IDI(d)

BHC(a)(e)(f)

IDI(b)(e)(f)

 
BHC(c) 
IDI(d)

Capital ratios      
CET19.0%6.375% —%6.5%10.5%7.0% N/A6.5%
Tier 110.5
7.875
 6.0
8.0
12.0
8.5
 6.08.0
Total12.5
9.875
 10.0
10.0
14.0
10.5
 10.010.0
Tier 1 leverage4.0
4.0
 5.0
5.0
4.0
4.0
 N/A5.0
SLR5.0
6.0
 —
6.0
5.0
6.0
 N/A6.0
Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and its IDI subsidiaries are subject.
(a)
Represents the Transitional minimum capital ratios applicable to the Firm under Basel III at June 30, 2018. At June 30, 2018, theIII. The CET1 minimum capital ratio includes 1.875% resulting from the phase in of the Firm’s 2.5%a capital conservation buffer of 2.5% and 2.625%, resulting from the phase inGSIB surcharge of the Firm’s 3.5% GSIB surcharge.
.
(b)
Represents requirements for JPMorgan Chase’s IDI subsidiaries. The CET1 minimum capital ratio includes 1.875% resulting from the phase in of the 2.5%a capital conservation buffer of 2.5% that is applicable to the IDI subsidiaries. The IDI subsidiaries are not subject to the GSIB surcharge.
(c)
Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve.
(d)
Represents requirements for IDI subsidiaries pursuant to regulations issued under the FDIC Improvement Act.
(e)For the period ended December 31, 2017,2018, the CET1, Tier 1, Total and Tier 1 leverage minimum capital ratios applicable to the Firm were 7.5%, 9.0%, 11.0%10.5%, 12.5%, and 4.0%, and the CET1, Tier 1, Total and Tier 1 leverage minimum capital ratios applicable to the Firm’s IDI subsidiaries were 5.75%6.375%, 7.25%7.875%, 9.25%9.875%, and 4.0%, respectively.
(f)
Represents minimum SLR requirement of 3.0%, as well as, supplementary leverage buffers of 2.0% and 3.0% for BHC and IDI, respectively.


The following tables present the risk-based and leverage-based capital metrics for JPMorgan Chase and its significant IDI subsidiariesJPMorgan Chase Bank, N.A. under both the Basel III Standardized and Basel III Advanced Approaches. As of June 30, 2018,2019 and December 31, 2017,2018, JPMorgan Chase and all of its IDI subsidiariesJPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject.

June 30, 2018
(in millions, except ratios)		Basel III Standardized Transitional Basel III Advanced Transitional
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
Chase Bank
USA, N.A.
 
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
Chase Bank
USA, N.A.
June 30, 2019
(in millions, except ratios)		Basel III Standardized Fully Phased-In Basel III Advanced Fully Phased-In
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
 
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
Regulatory capital      
CET1 capital$184,708
$188,784
$22,447
 $184,708
$188,784
$22,447
$189,169
$217,622
 $189,169
$217,622
Tier 1 capital210,321
188,784
22,447
 210,321
188,784
22,447
215,808
217,622
 215,808
217,622
Total capital238,630
200,065
27,321
 229,027
193,844
25,947
244,490
235,208
 234,507
225,403
      
Assets      
Risk-weighted1,543,370
1,356,526
107,938
 1,438,747
1,216,608
178,118
1,545,101
1,452,055
 1,449,211
1,302,719
Adjusted average(a)
2,566,013
2,153,804
114,160
 2,566,013
2,153,804
114,160
2,692,225
2,325,199
 2,692,225
2,325,199
      
Capital ratios(b)
      
CET112.0%13.9%20.8% 12.8%15.5%12.6%12.2%15.0% 13.1%16.7%
Tier 113.6
13.9
20.8
 14.6
15.5
12.6
14.0
15.0
 14.9
16.7
Total15.5
14.7
25.3
 15.9
15.9
14.6
15.8
16.2
 16.2
17.3
Tier 1 leverage(c)
8.2
8.8
19.7
 8.2
8.8
19.7
8.0
9.4
 8.0
9.4
December 31, 2017
(in millions, except ratios)		Basel III Standardized Transitional Basel III Advanced Transitional
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
Chase Bank
USA, N.A.
 
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
Chase Bank
USA, N.A.
December 31, 2018
(in millions, except ratios)		Basel III Standardized Transitional Basel III Advanced Transitional
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.(d)
 
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.(d)
Regulatory capital          
CET1 capital$183,300
$184,375
 $21,600
 $183,300
$184,375
 $21,600
$183,474
$211,671
 $183,474
$211,671
Tier 1 capital208,644
184,375
 21,600
 208,644
184,375
 21,600
209,093
211,671
 209,093
211,671
Total capital238,395
195,839
 27,691
 227,933
189,510
(d) 
26,250
237,511
229,952
 227,435
220,025
          
Assets          
Risk-weighted1,499,506
1,338,970
(d) 
113,108
 1,435,825
1,241,916
(d) 
190,523
1,528,916
1,446,529
 1,421,205
1,283,146
Adjusted average(a)
2,514,270
2,116,031
 126,517
 2,514,270
2,116,031
 126,517
2,589,887
2,250,480
 2,589,887
2,250,480
          
Capital ratios(b)
          
CET112.2%13.8% 19.1% 12.8%14.8%
(d) 
11.3%12.0%14.6% 12.9%16.5%
Tier 113.9
13.8
 19.1
 14.5
14.8
(d) 
11.3
13.7
14.6
 14.7
16.5
Total15.9
14.6
(d) 
24.5
 15.9
15.3
(d) 
13.8
15.5
15.9
 16.0
17.1
Tier 1 leverage(c)
8.3
8.7
 17.1
 8.3
8.7
 17.1
8.1
9.4
 8.1
9.4
(a)
Adjusted average assets, for purposes of calculating the Tier 1 leverage ratio, 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.
(b)
For each of the risk-based capital ratios, the capital adequacy of the Firm and its IDI subsidiaries is evaluated against the lower of the two ratios as calculated under Basel III approaches (Standardized or Advanced) as required by the Collins Amendment of the Dodd-Frank Act (the “Collins Floor”).
(c)
The Tier 1 leverage ratio is not a risk-based measure of capital.
(d)On May 18, 2019, Chase Bank USA, N.A. merged with and into JPMorgan Chase Bank, N.A., with JPMorgan Chase Bank, N.A as the surviving entity. The prior periodDecember 31, 2018 amounts have been revised to conform withreported for JPMorgan Chase Bank, N.A. retrospectively reflect the current period presentation.impact of the merger.

June 30, 2018 December 31, 2017June 30, 2019 December 31, 2018
Basel III Advanced Fully Phased-InBasel III Advanced TransitionalBasel III Advanced Fully Phased-In Basel III Advanced Fully Phased-In
(in millions, except ratios)
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
Chase Bank
USA, N.A.
 
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
Chase Bank
USA, N.A.
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
 
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.(a)
Total leverage exposure(a)
$3,255,296
$2,799,458
$172,003
 $3,204,463
$2,775,041
$182,803
$3,367,154
$2,984,420
 $3,269,988
$2,915,541
SLR(a)
6.5%6.7%13.1% 6.5%6.6%11.8%6.4%7.3% 6.4%7.3%

(a)Effective January 1, 2018,On May 18, 2019, Chase Bank USA, N.A. merged with and into JPMorgan Chase Bank, N.A., with JPMorgan Chase Bank, N.A as the SLR was fully phased-in under Basel III.surviving entity. The December 31, 2017,2018 amounts were calculated underreported for JPMorgan Chase Bank, N.A. retrospectively reflect the Basel III Transitional rules.impact of the merger.


Note 2022 – Off–balance sheet lending-related
financial instruments, guarantees, and other
commitments
JPMorgan Chase provides lending-related financial instruments (e.g., commitments and guarantees) to address the financing needs of its customers and clients. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the customer or client draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the customer or client subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees are refinanced, extended, cancelled, or expire without being drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm’s view, representative of its expected future credit exposure or funding requirements. For a further discussion of lending-related commitments and guarantees, and the Firm’s related accounting policies, refer to Note 27 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
 
To provide for probable credit losses inherent in wholesale and certain consumer lending-related commitments, an allowance for credit losses on lending-related commitments is maintained. Refer to Note 12 for further information regarding the allowance for credit losses on lending-related commitments.The following table summarizes the contractual amounts and carrying values of off-balance sheet lending-related financial instruments, guarantees and other commitments at June 30, 2018,2019, and December 31, 2017. 2018. The amounts in the table below for credit card and home equity lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time. The Firm can reduce or cancel credit card lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. In addition, the Firm typically closes credit card lines when the borrower is 60 days or more past due. The Firm may reduce or close HELOCs when there are significant decreases in the value of the underlying property, or when there has been a demonstrable decline in the creditworthiness of the borrower.


Off–balance sheet lending-related financial instruments, guarantees and other commitmentsOff–balance sheet lending-related financial instruments, guarantees and other commitments
Off–balance sheet lending-related financial instruments, guarantees and other commitments

Contractual amount
Carrying value(g)
Contractual amount
Carrying value(g)

June 30, 2018
Dec 31,
2017

Jun 30,
2018
Dec 31,
2017
June 30, 2019
Dec 31,
2018

Jun 30,
2019
Dec 31,
2018
By remaining maturity
(in millions)		Expires in 1 year or lessExpires after
1 year through
3 years		Expires after
3 years through
5 years		Expires after 5 yearsTotal
Total

Expires in 1 year or lessExpires after
1 year through
3 years		Expires after
3 years through
5 years		Expires after 5 yearsTotal
Total

Lending-related          
Consumer, excluding credit card:          
Home equity$1,202
$1,163
$1,559
$16,606
$20,530

$20,360

$12
$12
$549
$1,202
$2,185
$17,263
$21,199
 $20,901
 $12
$12
Residential mortgage(a)
8,342
—
—
12
8,354

5,736

—
—
9,477
—
—
12
9,489
 5,481
 —
—
Auto7,770
949
187
153
9,059

9,255

2
2
7,694
962
95
45
8,796
 8,011
 2
2
Consumer & Business Banking12,410
796
110
525
13,841

13,202

19
19
10,503
679
104
721
12,007
 11,673
 19
19
Total consumer, excluding credit card29,724
2,908
1,856
17,296
51,784

48,553

33
33
28,223
2,843
2,384
18,041
51,491
 46,066
 33
33
Credit card592,452
—
—
—
592,452

572,831

—
—
633,970
—
—
—
633,970
 605,379
 —
—
Total consumer(b)
622,176
2,908
1,856
17,296
644,236

621,384

33
33
662,193
2,843
2,384
18,041
685,461
 651,445
 33
33
Wholesale:          
Other unfunded commitments to extend credit(c)
86,217
130,739
140,327
9,395
366,678

331,160

942
840
61,732
129,593
159,234
8,223
358,782
 351,490
 883
852
Standby letters of credit and other financial guarantees(c)
14,469
8,744
7,042
1,708
31,963

35,226

593
636
14,658
10,552
4,776
2,210
32,196
 33,498
 554
521
Other letters of credit(c)
2,914
54
148


3,116

3,712

4
3
3,066
220
37
—
3,323
 2,825
 3
3
Total wholesale(d)(b)
103,600
139,537
147,517
11,103
401,757

370,098

1,539
1,479
79,456
140,365
164,047
10,433
394,301
 387,813
 1,440
1,376
Total lending-related$725,776
$142,445
$149,373
$28,399
$1,045,993

$991,482

$1,572
$1,512
$741,649
$143,208
$166,431
$28,474
$1,079,762
 $1,039,258
 $1,473
$1,409
Other guarantees and commitments

















     
Securities lending indemnification agreements and guarantees(e)(d)
$202,797
$—
$—
$—
$202,797

$179,490

$—
$—
$203,868
$—
$—
$—
$203,868
 $186,077
 $—
$—
Derivatives qualifying as guarantees4,737
334
12,415
40,235
57,721

57,174

457
304
1,594
135
12,394
40,509
54,632
 55,271
 228
367
Unsettled reverse repurchase and securities borrowing agreements102,480
—
—
—
102,480

76,859

—
—
Unsettled repurchase and securities lending agreements92,150
—
—
—
92,150

44,205

—
—
Unsettled resale and securities borrowed agreements113,218
875
71
—
114,164
 102,008
 —
—
Unsettled repurchase and securities loaned agreements122,806
—
—
—
122,806
 57,732
 —
—
Loan sale and securitization-related indemnifications:

















     
Mortgage repurchase liabilityNA
NA
NA
NA
NA

NA

123
111
NA
NA
NA
NA
NA
 NA
 89
89
Loans sold with recourseNA
NA
NA
NA
1,084

1,169

33
38
NA
NA
NA
NA
1,031
 1,019
 27
30
Exchange & clearing house guarantees and commitments(e)
164,784
—
—
—
164,784
 58,960
 —
—
Other guarantees and commitments(f)
11,754
1,458
209
2,664
16,085

11,867

(225)(76)4,505
2,931
1,537
2,749
11,722
 8,183
 (79)(73)
(a)Includes certain commitments to purchase loans from correspondents.
(b)Predominantly all consumer and wholesale lending-related commitments are in the U.S.
(c)At June 30, 2018,2019, and December 31, 2017,2018, reflected the contractual amount net of risk participations totaling $287$193 million and $334$282 million respectively, for other unfunded commitments to extend credit; $9.8$9.5 billion and $10.4 billion, respectively, for standby letters of credit and other financial guarantees; and $407$682 million and $405$385 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.
(d)At June 30, 2018,2019, and December 31, 2017, the U.S. portion of the contractual amount of total wholesale lending-related commitments was 78% and 77%, respectively.
(e)At June 30, 2018, and December 31, 2017, collateral held by the Firm in support of securities lending indemnification agreements was $213.7$214.6 billion and $188.7$195.6 billion, respectively. Securities lending collateral primarily consists of cash and securities issued by governments that are members of the G7 and U.S. government agencies.
(f)(e)
At June 30, 2018, 2019, and December 31, 2017, 2018, includes guarantees to the Fixed Income Clearing Corporation under the sponsored member repo program and commitments and guarantees associated with the Firm’s membership in certain clearing houses.
(f)At June 30, 2019, and December 31, 2018, primarily includes letters of credit hedged by derivative transactions and managed on a market risk basis, and unfunded commitments related to institutional lending and commitments associated with the Firm’s membership in certain clearing houses.lending. Additionally, includes unfunded commitments predominantly related to certain tax-oriented equity investments.
(g)For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivative-related products, the carrying value represents the fair value.




Other unfunded commitments to extend credit
Other unfunded commitments to extend credit generally consist of commitments for working capital and general corporate purposes, extensions of credit to support commercial paper facilities and bond financings in the event that those obligations cannot be remarketed to new investors, as well as committed liquidity facilities to clearing organizations. The Firm also issues commitments under multipurpose facilities which could be drawn upon in several forms, including the issuance of a standby letter of credit.
The Firm acts as a settlement and custody bank in the U.S. tri-party repurchase transaction market. In its role as settlement and custody bank, the Firm in part is exposed to the intra-day credit risk of its cash borrower clients, usually broker-dealers. This exposure arises under secured
 
clearance advance facilities that the Firm extended to its clients (i.e., cash borrowers); these facilities contractually limit the Firm’s intra-day credit risk to the facility amount
and must be repaid by the end of the day. As of December 31, 2017 the secured clearance advance facility maximum outstanding commitment amount was$1.5 billion. As of June 30, 2018 the Firm no longer offers such arrangements to its clients.
Standby letters of credit and other financial guarantees
Standby letters of credit and other financial guarantees are conditional lending commitments issued by the Firm to guarantee the performance of a client or customer to a third party under certain arrangements, such as commercial paper facilities, bond financings, acquisition financings, trade and similar transactions.

The following table summarizes the contractual amount and carrying value of standby letters of credit and other financial guarantees and other letters of credit arrangements as of June 30, 2018,2019, and December 31, 2017.2018.
Standby letters of credit, other financial guarantees and other letters of credit
June 30, 2018 December 31, 2017June 30, 2019 December 31, 2018
(in millions)Standby letters of
credit and other financial guarantees		 
Other letters
of credit
 Standby letters of
credit and other financial guarantees		 
Other letters
of credit
Standby letters of
credit and other financial guarantees		 
Other letters
of credit
 Standby letters of
credit and other financial guarantees		 
Other letters
of credit
Investment-grade(a)
$25,512
 $2,267
 $28,492
 $2,646
$25,041
 $2,181
 $26,420
 $2,079
Noninvestment-grade(a)
6,451
 849
 6,734
 1,066
7,155
 1,142
 7,078
 746
Total contractual amount$31,963
 $3,116
 $35,226
 $3,712
$32,196
 $3,323
 $33,498
 $2,825
              
Allowance for lending-related commitments$139
 $4
 $192
 $3
$210
 $3
 $167
 $3
Guarantee liability454
 —
 444
 —
344
 —
 354
 —
Total carrying value$593
 $4
 $636
 $3
$554
 $3
 $521
 $3
              
Commitments with collateral$16,326
 $597
 $17,421
 $878
$17,373
 $768
 $17,400
 $583
(a)The ratings scale is based on the Firm’s internal ratings which generally correspond to ratings as defined by S&P and Moody’s.
Derivatives qualifying as guarantees
The Firm transacts certain derivative contracts that have the characteristics of a guarantee under U.S. GAAP. For further information on these derivatives, refer to Note 27 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
The following table summarizes the derivatives qualifying as guarantees as of June 30, 2018,2019, and December 31, 2017.2018.
(in millions)June 30, 2019
 December 31, 2018
Notional amounts   
Derivative guarantees$54,632
 $55,271
Stable value contracts with contractually limited exposure28,843
 28,637
Maximum exposure of stable value contracts with contractually limited exposure2,958
 2,963
    
Fair value   
Derivative payables228
 367
Derivative receivables—
 —

(in millions)June 30, 2018
 December 31, 2017
Notional amounts   
Derivative guarantees$57,721
 $57,174
Stable value contracts with contractually limited exposure28,487
 29,104
Maximum exposure of stable value contracts with contractually limited exposure2,946
 3,053
    
Fair value   
Derivative payables457
 304
Derivative receivables—
 —


 
In addition to derivative contracts that meet the characteristics of a guarantee, the Firm is both a purchaser and seller of credit protection in the credit derivatives market. For a further discussion of credit derivatives, refer to Note 4.
Loan sales- and securitization-related indemnifications
In connection with the Firm’s mortgage loan sale and securitization activities with GSEs and in certain private label transactions, the Firm has made representations and warranties that the loans sold meet certain requirements, and that may require the Firm to repurchase mortgage loans and/or indemnify the loan purchaser if such representations and warranties are breached by the Firm. Further, although the Firm’s securitizations are predominantly nonrecourse, the Firm does provide recourse servicing in certain limited cases where it agrees to share credit risk with the owner of the mortgage loans. For additional information, refer to Note 27 of JPMorgan Chase’s 2017 Annual Report.
2018 Form 10-K.

The liability related to repurchase demands associated with private label securitizations is separately evaluated by the Firm in establishing its litigation reserves. For additional information regarding litigation, refer to Note 22 24 of this Form 10-Q and Note 29 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.

Sponsored member repo program
In 2018 the Firm commenced the sponsored member repo program, wherein the Firm acts as a sponsoring member to clear eligible overnight resale and repurchase agreements through the Government Securities Division of the Fixed Income Clearing Corporation (“FICC”) on behalf of clients that become sponsored members under the FICC’s rules. The Firm also guarantees to the FICC the prompt and full payment and performance of its sponsored member clients’ respective obligations under the FICC’s rules. The Firm minimizes its liability under these overnight guarantees by obtaining a security interest in the cash or high-quality securities collateral that the clients place with the clearing house therefore the Firm expects the risk of loss to be remote. The Firm’s maximum possible exposure, without taking into consideration the associated collateral, is included in the Exchange & clearing house guarantees and commitments line on page 156. For additional information on credit risk mitigation practices on resale agreements and the types of collateral pledged under repurchase agreements, refer to Note 11 of JPMorgan Chase’s 2018 Form 10-K.
Guarantees of subsidiarysubsidiaries
The Parent Company has guaranteed certain long-term debt and structured notes of its subsidiaries, including JPMorgan Chase Financial Company LLC (“JPMFC”), a 100%-owned finance subsidiary. All securities issued by JPMFC are fully and unconditionally guaranteed by the Parent Company, and theseCompany. These guarantees, which rank on a parity with the Firm’s unsecured and unsubordinated indebtedness.indebtedness, are not included in the table on page 156 of this Note. For additional information, refer to Note 19 of JPMorgan Chase’s 2018 Form 10-K.


 
Note 2123 – Pledged assets and collateral
For a discussion of the Firm’s pledged assets and collateral, refer to Note 28 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Pledged assets
The Firm may pledge financial assets that it owns to maintain potential borrowing capacity at discount windows with Federal Reserve banks, various other central banks and FHLBs. Additionally, pledged assets are used for other purposes, including to secure borrowings and public deposits, collateralize repurchase and other securities financing agreements, to cover short sales and cover customer short sales. to collateralize derivative contracts and deposits. Certain of these pledged assets may be sold or repledged or otherwise used by the secured parties and are parenthetically identified on the Consolidated balance sheets as assets pledged.
The following table presents the Firm’sFirm’s pledged assets.
(in billions)June 30, 2019
 December 31, 2018
Assets that may be sold or repledged or otherwise used by secured parties$155.0
 $104.0
Assets that may not be sold or repledged or otherwise used by secured parties93.6
 83.7
Assets pledged at Federal Reserve banks and FHLBs490.2
 475.3
Total assets pledged$738.8
 $663.0

(in billions)June 30, 2018
 December 31,
2017
Assets that may be sold or repledged or otherwise used by secured parties$140.4
 $135.8
Assets that may not be sold or repledged or otherwise used by secured parties76.7
 68.1
Assets pledged at Federal Reserve banks and FHLBs487.0
 493.7
Total assets pledged$704.1
 $697.6
Total assets pledged do not include assets of consolidated VIEs; these assets are used to settle the liabilities of those entities. Refer to Note 13 for additional information on assets and liabilities of consolidated VIEs. For additional information on the Firm’sFirm’s securities financing activities, refer to Note 10. For additional information on the Firm’sFirm’s long-term debt, refer to Note 19 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Collateral
The Firm accepts financial assets as collateral that it is permitted to sell or repledge, deliver or otherwise use. This collateral is generally obtained under resale and other securities financing agreements, securities borrowing agreements,prime brokerage-related held-for-investment customer margin loansreceivables and derivative agreements.contracts. Collateral is generally used under repurchase agreements,and other securities lendingfinancing agreements, or to cover customer short sales and to collateralize depositsderivative contracts and derivative agreements.deposits.
The following table presents the fair value of collateral accepted.
(in billions)June 30, 2019
 December 31, 2018
Collateral permitted to be sold or repledged, delivered, or otherwise used$1,319.2
 $1,245.3
Collateral sold, repledged, delivered or otherwise used1,033.9
 998.3
(in billions)June 30, 2018
 December 31,
2017
Collateral permitted to be sold or repledged, delivered, or otherwise used$1,102.8
 $968.8
Collateral sold, repledged, delivered or otherwise used908.2
 771.0
Certain prior period amounts for both collateral and pledged assets (including the corresponding pledged assets parenthetical disclosure for trading assets and other assets on the Consolidated balance sheets) have been revised to conform with the current period presentation.


Note 2224 – Litigation
Contingencies
As of June 30, 2018,2019, the Firm and its subsidiaries and affiliates are defendants, or putative defendants or respondents in numerous legal proceedings, including private, civil litigations and regulatory/government investigations. The litigations range from individual actions involving a single plaintiff to class action lawsuits with potentially millions of class members. Investigations involve both formal and informal proceedings, by both governmental agencies and self-regulatory organizations. These legal proceedings are at varying stages of adjudication, arbitration or investigation, and involve each of the Firm’s lines of business and several geographies and a wide variety of claims (including common law tort and contract claims and statutory antitrust, securities and consumer protection claims), some of which present novel legal theories.
The Firm believes the estimate of the aggregate range of reasonably possible losses, in excess of reserves established, for its legal proceedings is from $0 to approximately $1.7$1.3 billion at June 30, 2018.2019. This estimated aggregate range of reasonably possible losses was based upon currentlyinformation available informationas of that date for those proceedings in which the Firm believes that an estimate of reasonably possible loss can be made. For certain matters, the Firm does not believe that such an estimate can be made, as of that date. The Firm’s estimate of the aggregate range of reasonably possible losses involves significant judgment, given:
the number, variety and varying stages of the proceedings, including the fact that many are in preliminary stages,
the existence in many such proceedings of multiple defendants, including the Firm, whose share of liability (if any) has yet to be determined,
the numerous yet-unresolved issues in many of the proceedings, including issues regarding class certification and the scope of many of the claims, and
the attendant uncertainty of the various potential outcomes of such proceedings, including where the Firm has made assumptions concerning future rulings by the court or other adjudicator, or about the behavior or incentives of adverse parties or regulatory authorities, and those assumptions prove to be incorrect.
In addition, the outcome of a particular proceeding may be a result which the Firm did not take into account in its estimate because the Firm had deemed the likelihood of that outcome to be remote. Accordingly, the Firm’s estimate of the aggregate range of reasonably possible losses will change from time to time, and actual losses may vary significantly.
 
Set forth below are descriptions of the Firm’s material legal proceedings.
American Depositary Receipts Pre-Release Inquiry. The Staff of the U.S. Securities and Exchange Commission’s Enforcement Division has been investigating depositary banks and broker-dealers, including the Firm, in connection with activity relating to pre-released American Depositary Receipts. The Staff’s investigation focuses on the period of 2011 to 2015. The Firm has been cooperating with this investigation.
Foreign Exchange Investigations and Litigation. The Firm previously reported settlements with certain government authorities relating to its foreign exchange (“FX”) sales and trading activities and controls related to those activities. FX-related investigations and inquiries by government authorities, including competition authorities, are ongoing, and the Firm is cooperating with and working to resolve those matters. In May 2015, the Firm pleaded guilty to a single violation of federal antitrust law. In January 2017, the Firm was sentenced, with judgment entered thereafter and a term of probation ending in January 2020. The Department of Labor has granted the Firm a five-year exemption of disqualification that allows the Firm and its affiliates to continue to rely on the Qualified Professional Asset Manager exemption under the Employee Retirement Income Security Act (“ERISA”) until January 2023. The Firm will need to reapply in due course for a further exemption to cover the remainder of the ten-year disqualification period. In addition, the Firm has agreed to pay fines totaling $265 million in connection with the settlement of FX-related investigations conducted by the European Commission and the Swiss Competition Commission which were announced in May 2019 and June 2019, respectively. Separately, in February 2017 the South Africa Competition Commission referred its FX investigation of the Firm and other banks to the South Africa Competition Tribunal, which is conducting civil proceedings concerning that matter.
The Firm is also one of a number of foreign exchange dealers defending a class action filed inIn August 2018, the United States District Court for the Southern District of New York granted final approval to the Firm’s settlement of a consolidated class action brought by U.S.-based plaintiffs, which principally allegingalleged violations of federal antitrust laws based on an alleged conspiracy to manipulate foreign exchange rates (the “U.S. class action”). In January 2015, the Firm entered into a settlement agreement in the U.S. class action. Following this settlement, a numberand also sought damages on behalf of additional putative class actions were filed seeking damages for persons who transacted in FX futures and options on futuresfutures. Certain members of the settlement class filed requests to the Court to be excluded from the class, and certain of them filed a complaint against the Firm and a number of other foreign exchange dealers in November 2018 (the “exchanged-based actions”“opt-out action”),. The two FX-related actions brought by participants or beneficiaries of qualified ERISA plans have been dismissed. Putative class actions on behalf of consumers who purchased foreign currencies at allegedly inflated rates (the “consumer action”), participants or beneficiaries of qualified ERISA plans (the “ERISA actions”), and purported indirect purchasers of FX instruments (the “indirect purchaser action”). Since then, the Firm has entered into a revised settlement agreement to resolve the consolidated U.S. class action, including the exchange-based actions. The Court granted final approval of that settlement agreement in May 2018. Certain members of the settlement class have filed requests to the Court to be excluded from the class.

The District Court has dismissed one of the ERISA actions, and the United States Court of Appeals for the Second Circuit affirmed that dismissal in July 2018. The District Court has also dismissed the indirect purchaser action, and the plaintiffs have sought leave to replead their complaint. The consumer action and a second ERISA action remain pending in the District Court. In addition, some FX related individual and putative class actions have been filed outside the U.S.
General Motors Litigation. JPMorgan Chase Bank, N.A. participated in, and was the Administrative Agent on behalf of a syndicate of lenders on, a $1.5 billion syndicated Term Loan facility (“Term Loan”) for General Motors Corporation (“GM”). In July 2009, in connection with the GM bankruptcy

proceedings, the Official Committee of Unsecured Creditors of Motors Liquidation Company (“Creditors Committee”) filed a lawsuit against JPMorgan Chase Bank, N.A., in its individual capacity and as Administrative Agent for other lenders on the Term Loan, seeking to hold the underlying lien invalid based on the filing of a UCC-3 termination statement relating to the Term Loan. In January 2015, following several court proceedings, the United States Court of Appeals for the Second Circuit reversed the Bankruptcy Court’s dismissal of the Creditors Committee’s claim and remanded the case to the Bankruptcy Court with instructions to enter partial summary judgment for the Creditors Committee as to the termination statement. The proceedings in the Bankruptcy Court continuethereafter continued with respect to, among other things, additional defenses asserted by JPMorgan Chase Bank, N.A. and the value of additional collateral on the Term Loan that was unaffected by the filing of the termination statement at issue. In connection with that additional collateral, a trial in the Bankruptcy Court regarding the value of certain representative assets concluded in May 2017, and a ruling was issued in September 2017. The Bankruptcy Court found that 33 of the 40 representative assets are fixtures and that these fixtures generally should be valued on a “going concern” basis. The Creditors Committee is seeking leave to appeal the Bankruptcy Court’s ruling that the fixtures should be valued on a “going concern” basis rather than on a liquidation basis. In addition, certain Term Loan lenders filed cross-claims in the Bankruptcy Court against JPMorgan Chase Bank, N.A. seeking indemnification and asserting various claims. The parties have engaged in mediation concerning, among other things, the characterization and value of the remaining additional collateral, in light of the Bankruptcy Court’s ruling regarding the representative assets, as well as other issues, including the cross-claims. In July 2018,April 2019, the parties informedfinalized a settlement agreement to fully resolve the litigation, and the Bankruptcy Court approved that at this time, they do not believesettlement in June 2019. In July 2019, the Bankruptcy Court issued orders dismissing with prejudice all claims filed against the Firm, including the cross-claims that they will be able to reach a global settlement of the adversary proceeding through mediation, and that they intend to present the Bankruptcy Court with a proposed schedule for ongoing litigation. The parties will continue to mediate specific disputes involvingwere brought by certain issues, principally relating to whether certain of the additional collateral should be characterized as fixtures.
Term Loan lenders.
Interchange Litigation. A group of merchants and retail associations filed a series of class action complaints alleging that Visa and MasterCard,Mastercard, as well as certain banks, conspired to set the price of credit and debit card interchange fees and enacted respective rules in violation of antitrust laws. The parties settled the cases for a cash payment, a temporary reduction of credit card interchange, and modifications to certain credit card network rules. In December 2013, the District Court granted final approval of the settlement.
A number of merchants appealed the settlement to the United States Court of Appeals for the Second Circuit, which, in June 2016, vacated the District Court’s certification of the class action and reversed the approval of the class settlement. In March 2017, the U.S. Supreme Court declined petitions seeking review of the decision of the Court of Appeals. The case was remanded to the District Court for further proceedings consistent with the appellate decision. The original class action was divided into two separate actions, one seeking primarily monetary relief and the other seeking primarily injunctive relief. TheIn September 2018, the parties to the class action seeking monetary relief have reached afinalized an agreement which amends and supersedes the prior settlement agreement, and the plaintiffs filed a motion seeking preliminary approval of the modified settlement. Pursuant to this settlement, the defendants have collectively contributed an additional $900 million to the approximately $5.3 billion previously held in principle, subject to documentationescrow from the original settlement. In January 2019, the amended agreement was preliminarily approved by the
District Court, and court approval, and are engagedformal notice of the class settlement is proceeding in ongoing negotiations.accordance with the District Court’s order. The class action seeking primarily injunctive relief continues separately.
In addition, certain merchants have filed individual actions raising similar allegations against Visa and MasterCard,Mastercard, as well as against the Firm and other banks, and those actions are proceeding.
LIBOR and Other Benchmark Rate Investigations and Litigation. JPMorgan Chase has received subpoenas and requests for documents and, in some cases, interviews, from federal and state agencies and entities, including the U.S. Commodity Futures Trading Commission (“CFTC”) and various state attorneys general, as well as the European Commission (“EC”), the Swiss Competition Commission (“ComCo”) and other regulatory authorities and banking associations around the world relating primarily to the process by which interest rates were submitted to the British Bankers Association (“BBA”) in connection with the setting of the BBA’s London Interbank Offered Rate (“LIBOR”) for various currencies, principally in 2007 and 2008. Some of the inquiries also relate to similar processes by which information on rates was submitted to the European Banking Federation (“EBF”) in connection with the setting of the EBF’s Euro Interbank Offered RatesRate (“EURIBOR”) and to the Japanese Bankers’ Association for the setting of Tokyo Interbank Offered Rates (“TIBOR”) during similar time periods, as well as processes for the setting of U.S. dollar ISDAFIX rates and other reference rates in various parts of the world during similar time periods, including through 2012.. The Firm continues to cooperate with these investigations to the extent that they are ongoing. The Firm has recently reached a resolution with the CFTC concerning the CFTC’s U.S. dollar ISDAFIX-related investigation. As previously reported, the Firm has resolved EC inquiries relating to Yen LIBOR and Swiss Franc

LIBOR. In December 2016, the Firm resolved ComCo inquiries relating to these same rates. ComCo’s investigation relating to EURIBOR, to which the Firm and other banks are subject, continues. In December 2016, the EC issued a decision against the Firm and other banks finding an infringement of European antitrust rules relating to EURIBOR. The Firm has filed an appeal of that decision with the European General Court, and that appeal is pending.
In addition, the Firm has been named as a defendant along with other banks in a series of individual and putative class actions filedrelated to benchmarks, including U.S. dollar LIBOR during the period that it was administered by the BBA and, in various United States District Courts.a separate consolidated putative class action, during the period that it was administered by ICE Benchmark Administration. These actions have been filed, or consolidated for pre-trial purposes, in the United States District Court for the Southern District of New York. In these actions, plaintiffs make varying allegations that in various periods, starting in 2000 or later, defendants either individually or collectively manipulated various benchmark rates by submitting rates that were artificially low or high. Plaintiffs allege that they transacted in loans, derivatives or other financial instruments whose values are affected by changes in these rates and assert a variety of claims including antitrust claims seeking treble damages. These mattersactions are in various stages of litigation.
In actions related to U.S. dollar LIBOR during the period that it was administered by the BBA, the District Court dismissed certain claims, including antitrust claims brought by some plaintiffs whom the District Court found did not have

standing to assert such claims, and permitted certain claims to proceed, including antitrust, Commodity Exchange Act, Section 10(b) of the Securities Exchange Act and common law claims. The plaintiffs whose antitrust claims were dismissed for lack of standing have filed an appeal. The District Court granted class certification of antitrust claims related to bonds and interest rate swaps sold directly by the defendants and denied class certification motions filed by other plaintiffs. The Firm has agreed to settle putative class actions related to exchange-traded Eurodollar futures contracts, Swiss franc LIBOR, the Singapore Interbank Offered Rate, the Singapore Swap Offer Rate and the Australian Bank Bill Swap Reference Rate. Those settlements are all subject to further documentation and court approval.
In an action related to EURIBOR,Rate, as well as certain of the District Court dismissed all claims except a single antitrust claim and two common law claims, and dismissed all defendants except the Firm and Citibank.
Inputative class actions related to U.S. dollar LIBOR, theLIBOR. The District Court dismissed certain claims, including antitrust claims brought by some plaintiffs whomdeclined to grant preliminary approval to the District Court found did not have standing to assert such claims, and permitted antitrust claims, claims under the Commodity Exchange Act and common law claims to proceed. The plaintiffs whose antitrust claims were dismissed for lack of standing have filed an appeal. In February 2018, the District Court (i) granted class certification with respect to certain antitrust claims related to bonds and interest rate swaps sold directly by the defendants, (ii) denied class certification with respect to state common law claims brought by the holders of those bonds and swaps and (iii) denied class certification with respect to two other putative class actions related to exchange-traded Eurodollar futures contracts and LIBOR-based loans held by plaintiff lending institutions. The Firm and another defendant have petitioned for leave to appeal the class certification of the antitrust claims related to bonds and swaps, and plaintiffs have petitioned for leave to appeal the denial of class certification as to exchange-traded Eurodollar futures contracts. In July 2018, the United States Court of Appeals for the Second Circuit denied
the plaintiff lending institutions’ petition for leave to appeal the denial of their motion for class certification.
In an action related tosettlement involving the Singapore Interbank Offered Rate and the Singapore Swap Offer Rate after concluding that plaintiffs lacked standing and dismissing the litigation. The remaining settlements are all subject to further documentation and court approval. The Firm has also settled the putative class action related to EURIBOR, and the Court has granted final approval of that settlement.
Metals Investigations and Litigation. Various authorities, including the Department of Justice’s Criminal Division, are conducting investigations relating to trading practices in the metals markets and related conduct. The Firm is responding to and cooperating with these investigations. Several putative class action complaints have been filed in the United States District Court dismissed without prejudice all claims except a single antitrust claim, and dismissed without prejudice all defendants exceptfor the Firm, BankSouthern District of America and Citibank. The plaintiffs filed an amended complaint in September 2017, whichNew York against the Firm and other defendants have moved to dismiss.
certain current and former employees, alleging a precious metals futures and options price manipulation scheme in violation of the Commodity Exchange Act. Some of the complaints also allege unjust enrichment and deceptive acts or practices under the General Business Law of the State of New York. The Court consolidated these putative class actions in February 2019. The Firm is onealso a defendant in a consolidated action filed in the United States District Court for the Southern District of New York alleging monopolization of silver futures in violation of the defendants in a number of putative class actions alleging that defendant banks and ICAP conspired to manipulate the U.S. dollar ISDAFIX rates. In April 2016, the Firm settled this litigation, along with certain other banks. Those settlements have been preliminarily approved by the Court.Sherman Act.
Municipal Derivatives Litigation. Several civil actions were commenced in New York and Alabama courts against the Firm relating to certain Jefferson County, Alabama (the “County”) warrant underwritings and swap transactions. The claims in the civil actions generally alleged that the Firm made payments to certain third parties in exchange for being chosen to underwrite more than $3.0 billion in warrants issued by the County and to act as the counterparty for certain swaps executed by the County. The County filed for bankruptcy in November 2011. In June 2013, the County filed a Chapter 9 Plan of Adjustment, as amended (the “Plan of Adjustment”), which provided that all the above-described actions against the Firm would be released and dismissed with prejudice. In November 2013, the Bankruptcy Court confirmed the Plan of Adjustment, and in December 2013, certain sewer rate payers filed an appeal challenging the confirmation of the Plan of Adjustment. All conditions to the Plan of Adjustment’s effectiveness, including the dismissal of the actions against the Firm, were satisfied or waived and the transactions contemplated by the Plan of Adjustment occurred in December 2013. Accordingly, all the above-described actions against the Firm have been dismissed pursuant to the terms of the Plan of Adjustment. The appeal of the Bankruptcy Court’s order confirming the Plan of Adjustment remains pending.
Petters Bankruptcy and Related Matters. JPMorgan Chase and certain of its affiliates, including One Equity Partners (“OEP”), were named as defendants in several actions filed in connection with the receivership and bankruptcy proceedings pertaining to Thomas J. Petters and certain affiliated entities (collectively, “Petters”) and the Polaroid Corporation. The principal actions against JPMorgan Chase and its affiliates were brought by a court-appointed receiver for Petters and the trustees in bankruptcy proceedings for threePetters entities. These actions generally sought to avoid certain putative transfers in connection with (i) the 2005 acquisition by Petters of Polaroid, which at the time was majority-owned by OEP; (ii) two credit facilities that JPMorgan Chase and other financial institutions entered

into with Polaroid; and (iii) a credit line and investment accounts held by Petters. In January 2017, the Court substantially denied the defendants’ motion to dismiss an amended complaint filed by the plaintiffs. In October 2017, JPMorgan Chase and its affiliates reached an agreement to settle the litigation brought by the Petters bankruptcy trustees, or their successors, and the receiver for Thomas J. Petters. The settlement has received Court approval.
Wendel. Since 2012, the French criminal authorities have been investigating a series of transactions entered into by senior managers of Wendel Investissement (“Wendel”) during the period from 2004 through 2007 to restructure their shareholdings in Wendel. JPMorgan Chase Bank, N.A., Paris branch provided financing for the transactions to a number of managers of Wendel in 2007. JPMorgan Chase has cooperated with the investigation. The investigating judges issued an ordonnance de renvoi in November 2016, referring JPMorgan Chase Bank, N.A. to the French tribunal correctionnel for alleged complicity in tax fraud. No date for trial has been set by the court. The Firm has been successful in legal challenges made to the Court of Cassation, France’s highest court, with respect to the criminal proceedings. In January 2018, the Paris Court of Appeal issued a decision cancelling the mise en examen of JPMorgan Chase Bank, N.A. The Firm is requesting clarification fromIn September 2018, the Court of Cassation, concerningFrance’s highest court, ruled that a mise en examen is a prerequisite for an ordonnance de renvoi and remanded the case to the Court of Appeal. In
June 2019, the Court of Appeal declined to annul the ordonnance de renvoi referring JPMorgan Chase Bank, N.A. to the French tribunal correctionnel, and the Firm has reapplied to the Court of Cassation for a determination as to whether the Court of Appeal’s decision before seeking direction on next stepsis consistent with the Court of Cassation’s September 2018 ruling. Any further actions in the criminal proceedings. are stayed pending the outcome of that application. In addition, a number of the managers have commenced civil proceedings against JPMorgan Chase Bank, N.A. The claims are separate, involve different allegations and are at various stages of proceedings.
* * *
In addition to the various legal proceedings discussed above, JPMorgan Chase and its subsidiaries are named as defendants or are otherwise involved in a substantial number of other legal proceedings. The Firm believes it has meritorious defenses to the claims asserted against it in its currently outstanding legal proceedings and it intends to defend itself vigorously. Additional legal proceedings may be initiated from time to time in the future.
The Firm has established reserves for several hundred of its currently outstanding legal proceedings. In accordance with the provisions of U.S. GAAP for contingencies, the Firm accrues for a litigation-related liability when it is probable that such a liability has been incurred and the amount of the loss can be reasonably estimated. The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upwards or downward, as appropriate, based on management’s best judgment after consultation with counsel. The Firm’s legal expense for litigationexpense/(benefit) was $69 million and investigations was $0 million and $61 million for the three months ended June 30, 2019 and 2018, respectively, and 2017,$(12) million and $70 million for the six months ended June 30, 2019 and 2018, respectively. There is no assurance that the Firm’s litigation reserves will not need to be adjusted in the future.
In view of the inherent difficulty of predicting the outcome of legal proceedings, particularly where the claimants seek very large or indeterminate damages, or where the matters present novel legal theories, involve a large number of parties or are in early stages of discovery, the Firm cannot state with confidence what will be the eventual outcomes of the currently pending matters, the timing of their ultimate resolution or the eventual losses, fines, penalties or consequences related to those matters. JPMorgan Chase believes, based upon its current knowledge and after consultation with counsel, consideration of the material legal proceedings described above and after taking into account its current litigation reserves and its estimated aggregate range of possible losses, that the other legal proceedings currently pending against it should not have a material adverse effect on the Firm’s consolidated financial condition. The Firm notes, however, that in light of the uncertainties involved in such proceedings, there is no assurance that the ultimate resolution of these matters will

not significantly exceed the reserves it has currently accrued or that a matter will not have material reputational consequences. As a result, the outcome of a particular matter may be material to JPMorgan Chase’s operating results for a particular period, depending on, among other factors, the size of the loss or liability imposed and the level of JPMorgan Chase’s income for that period.



Note 2325 – Business segments
The Firm is managed on a line of business basis. There are four major reportable business segments - Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. In addition, there is a Corporate segment.
The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by management. Results of these lines of businessthe Firm’s Operating Committee. Segment results are presented on a managed basis. For a further discussion concerning JPMorgan Chase’s business segments, refer to Segment results below, and Note 31 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Segment results
The following table providestables provide a summary of the Firm’s segment results as of or for the three and six months ended June 30, 20182019 and 2017,2018, on a managed basis. The Firm’s
definition of managed basis starts 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 an 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. This allows management For additional information on the Firm’s managed basis, refer to assess the comparabilityNote 31 of revenue from year-to-year 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.JPMorgan Chase’s 2018 Form 10-K.
Business segment capital allocation
The amount of capital assigned to each business is referred to as equity. On at least an annual basis, the Firm assesses the level of capital required for each line of business as well as the assumptions and methodologies used in capital allocation are assessed and as a result, the capital allocated to allocate capital.lines of business may change. For additional information on business segment capital allocation, refer to Line of business equity on pages 88-89page 91 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
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. For additional information, refer to Note1.
Net income in 2018 for the business segments reflects the favorable impact of the reduction in the U.S. federal statutory income tax rate as a result of the TCJA.
Segment results and reconciliation(a)
Segment results and reconciliation(a)
Segment results and reconciliation(a)
As of or for the three months ended June 30,
(in millions, except ratios)		Consumer &
Community Banking		 Corporate &
Investment Bank		 Commercial Banking Asset & Wealth ManagementConsumer &
Community Banking		 Corporate &
Investment Bank		 Commercial Banking Asset & Wealth Management
2018
2017
 2018
2017
 2018
2017
 2018
2017
2019
2018
 2019
2018
 2019
2018
 2019
2018
Noninterest revenue$3,748
$3,684
 $7,532
$6,480
 $633
$583
 $2,687
$2,591
$4,440
$3,748
 $7,483
$7,532
 $549
$633
 $2,683
$2,687
Net interest income8,749
7,728
 2,391
2,445
 1,683
1,505
 885
846
9,393
8,749
 2,158
2,391
 1,662
1,683
 876
885
Total net revenue12,497
11,412
 9,923
8,925
 2,316
2,088
 3,572
3,437
13,833
12,497
 9,641
9,923
 2,211
2,316
 3,559
3,572
Provision for credit losses1,108
1,394
 58
(53) 43
(130) 2
4
1,120
1,108
 —
58
 29
43
 2
2
Noninterest expense6,879
6,500
 5,403
4,877
 844
790
 2,566
2,417
7,162
6,879
 5,487
5,403
 864
844
 2,596
2,566
Income before income tax expense4,510
3,518
 4,462
4,101
 1,429
1,428
 1,004
1,016
5,551
4,510
 4,154
4,462
 1,318
1,429
 961
1,004
Income tax expense1,098
1,295
 1,264
1,391
 342
526
 249
392
1,377
1,098
 1,219
1,264
 322
342
 242
249
Net income$3,412
$2,223
 $3,198
$2,710
 $1,087
$902
 $755
$624
$4,174
$3,412
 $2,935
$3,198
 $996
$1,087
 $719
$755
Average equity$51,000
$51,000
 $70,000
$70,000
 $20,000
$20,000
 $9,000
$9,000
$52,000
$51,000
 $80,000
$70,000
 $22,000
$20,000
 $10,500
$9,000
Total assets552,674
529,859
 908,954
847,377
 220,232
220,676
 161,474
147,508
550,690
552,674
 962,498
908,954
 220,712
220,232
 172,149
161,474
Return on equity26%17% 17%15% 21%17% 33%27%
ROE31%26% 14%17% 17%21% 27%33%
Overhead ratio55
57
 54
55
 36
38
 72
70
52
55
 57
54
 39
36
 73
72
As of or for the three months ended June 30,
(in millions, except ratios)		Corporate 
Reconciling Items(a)
 Total
2019
2018
 2019
2018
 2019
2018
Noninterest revenue$(125)$142
 $(596)$(474) $14,434
$14,268
Net interest income447
(62) (138)(161) 14,398
13,485
Total net revenue322
80
 (734)(635) 28,832
27,753
Provision for credit losses(2)(1) —
—
 1,149
1,210
Noninterest expense232
279
 —
—
 16,341
15,971
Income/(loss) before income tax expense/(benefit)92
(198) (734)(635) 11,342
10,572
Income tax expense/(benefit)(736)(62) (734)(635) 1,690
2,256
Net income/(loss)$828
$(136) $—
$—
 $9,652
$8,316
Average equity$68,526
$78,901
 $—
$—
 $233,026
$228,901
Total assets821,330
746,716
 NA
NA
 2,727,379
2,590,050
ROENM
NM
 NM
NM
 16%14%
Overhead ratioNM
NM
 NM
NM
 57
58
As of or for the three months ended June 30,
(in millions, except ratios)		Corporate 
Reconciling Items(a)
 Total
2018
2017
 2018
2017
 2018
2017
Noninterest revenue$142
$781
 $(474)$(596) $14,268
$13,523
Net interest income(62)23
 (161)$(339) 13,485
12,208
Total net revenue80
804
 (635)$(935) 27,753
25,731
Provision for credit losses(1)—
 —
—
 1,210
1,215
Noninterest expense279
183
 —
—
 15,971
14,767
Income/(loss) before income tax expense/(benefit)(198)621
 (635)(935) 10,572
9,749
Income tax expense/(benefit)(62)51
 (635)(935) 2,256
2,720
Net income/(loss)$(136)$570
 $—
$—
 $8,316
$7,029
Average equity$78,901
$80,200
 $—
$—
 $228,901
$230,200
Total assets746,716
817,754
 NA
NA
 2,590,050
2,563,174
Return on equityNM
NM
 NM
NM
 14%12%
Overhead ratioNM
NM
 NM
NM
 58
57

(a)Segment managed results reflect revenue on an FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results.









Segment results and reconciliation(a)
Segment results and reconciliation(a)
Segment results and reconciliation(a)
As of or for the six months ended June 30,
(in millions, except ratios)		Consumer &
Community Banking		 Corporate &
Investment Bank		 Commercial Banking Asset & Wealth ManagementConsumer &
Community Banking		 Corporate &
Investment Bank		 Commercial Banking Asset & Wealth Management
2018
2017
 2018
2017
 2018
2017
 2018
2017
2019
2018
 2019
2018
 2019
2018
 2019
2018
Noninterest revenue$7,887
$7,001
 $15,449
$13,479
 $1,182
$1,182
 $5,317
$5,060
$8,773
$7,887
 $15,146
$15,449
 $1,207
$1,182
 $5,276
$5,317
Net interest income17,207
15,381
 4,957
5,045
 3,300
2,924
 1,761
1,665
18,811
17,207
 4,343
4,957
 3,342
3,300
 1,772
1,761
Total net revenue25,094
22,382
 20,406
18,524
 4,482
4,106
 7,078
6,725
27,584
25,094
 19,489
20,406
 4,549
4,482
 7,048
7,078
Provision for credit losses2,425
2,824
 (100)(149) 38
(167) 17
22
2,434
2,425
 87
(100) 119
38
 4
17
Noninterest expense13,788
12,895
 11,062
10,061
 1,688
1,615
 5,147
5,198
14,373
13,788
 10,940
11,062
 1,737
1,688
 5,243
5,147
Income before income tax expense8,881
6,663
 9,444
8,612
 2,756
2,658
 1,914
1,505
10,777
8,881
 8,462
9,444
 2,693
2,756
 1,801
1,914
Income tax expense2,143
2,452
 2,272
2,661
 644
957
 389
496
2,640
2,143
 2,276
2,272
 644
644
 421
389
Net income$6,738
$4,211
 $7,172
$5,951
 $2,112
$1,701
 $1,525
$1,009
$8,137
$6,738
 $6,186
$7,172
 $2,049
$2,112
 $1,380
$1,525
Average equity$51,000
$51,000
 $70,000
$70,000
 $20,000
$20,000
 $9,000
$9,000
$52,000
$51,000
 $80,000
$70,000
 $22,000
$20,000
 $10,500
$9,000
Total assets552,674
529,859
 908,954
847,377
 220,232
220,676
 161,474
147,508
550,690
552,674
 962,498
908,954
 220,712
220,232
 172,149
161,474
Return on equity26%16% 20%16% 20%16% 33%22%31%26% 15%20% 18%20% 26%33%
Overhead ratio55
58
 54
54
 38
39
 73
77
52
55
 56
54
 38
38
 74
73
As of or for the six months ended June 30,
(in millions, except ratios)		Corporate 
Reconciling Items(a)
 TotalCorporate 
Reconciling Items(a)
 Total
2018
2017
 2018
2017
 2018
2017
2019
2018
 2019
2018
 2019
2018
Noninterest revenue$(43)$854
 $(929)$(1,178) $28,863
$26,398
$(117)$(43) $(1,181)$(929) $29,104
$28,863
Net interest income(109)(75) (319)$(668) 26,797
24,272
864
(109) (281)(319) 28,851
26,797
Total net revenue(152)779
 (1,248)$(1,846) 55,660
50,670
747
(152) (1,462)(1,248) 57,955
55,660
Provision for credit losses(5)—
 —
—
 2,375
2,530
—
(5) —
—
 2,644
2,375
Noninterest expense366
281
 —
—
 32,051
30,050
443
366
 —
—
 32,736
32,051
Income/(loss) before income tax expense/(benefit)(513)498
 (1,248)(1,846) 21,234
18,090
304
(513) (1,462)(1,248) 22,575
21,234
Income tax expense/(benefit)6
(107) (1,248)(1,846) 4,206
4,613
(775)6
 (1,462)(1,248) 3,744
4,206
Net income/(loss)$(519)$605
 $—
$—
 $17,028
$13,477
$1,079
$(519) $—
$—
 $18,831
$17,028
Average equity$78,261
$78,959
 $—
$—
 $228,261
$228,959
$67,047
$78,261
 $—
$—
 $231,547
$228,261
Total assets746,716
817,754
 NA
NA
 2,590,050
2,563,174
821,330
746,716
 NA
NA
 2,727,379
2,590,050
Return on equityNM
NM
 NM
NM
 14%11%NM
NM
 NM
NM
 16%14%
Overhead ratioNM
NM
 NM
NM
 58
59
NM
NM
 NM
NM
 56
58
(a)Segment managed results reflect revenue on an FTE basis with the corresponding income tax impact recorded within income tax expense/(benefit). These adjustments are eliminated in reconciling items to arrive at the Firm’s reported U.S. GAAP results.



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Report of Independent Registered Public Accounting Firm




To the Board of Directors and StockholdersShareholders of JPMorgan Chase & Co.:
Results of Review of Interim Financial Statements
We have reviewed the accompanying consolidated balance sheet of JPMorgan Chase & Co. and its subsidiaries (the “Firm”) as of June 30, 2018,2019, and the related consolidated statements of income, and comprehensive income, and changes in stockholders’ equity for the three-month and six-month periods ended June 30, 20182019 and 20172018 and the consolidated statements of changes in stockholders’ equity and cash flows for the six-month periods ended June 30, 20182019 and 2017,2018, including the related notes (collectively referred to as the “interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.
We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of the Firm as of December 31, 2017,2018, and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity and of cash flows for the year then ended (not presented herein), and in our report dated February 27, 2018,26, 2019, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet information as of December 31, 2017,2018, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.


 
Basis for Review Results
These interim financial statements are the responsibility of the Firm’s management. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Firm in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.
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August 1, 20185, 2019















































PricewaterhouseCoopers LLP, 300 Madison Avenue, New York, NY 10017


JPMorgan Chase & Co.
Consolidated average balance sheets, interest and rates
Consolidated average balance sheets, interest and rates (unaudited)Consolidated average balance sheets, interest and rates (unaudited)
(Taxable-equivalent interest and rates; in millions, except rates)
      
Three months ended June 30, 2018 Three months ended June 30, 2017Three months ended June 30, 2019 Three months ended June 30, 2018
Average
balance
Interest(f)
 Rate
(annualized)		 Average
balance
Interest(f)
 Rate
(annualized)		Average
balance
Interest(g)
 Rate
(annualized)		 Average
balance
Interest(g)
 Rate
(annualized)
Assets              
Deposits with banks$425,942
$1,543
 1.45% $439,142
$1,018
 0.93 % $289,838
$1,132
 1.57% $425,942
$1,543
 1.45 
Federal funds sold and securities purchased under resale agreements205,001
807
 1.58
 193,302
528
 1.10
 288,781
1,676
 2.33
 205,001
807
 1.58 
Securities borrowed(a)112,464
148
 0.53
 90,151
(21)
(h) 
(0.09) 126,157
467
 1.48
 112,464
190

0.68 
Trading assets – debt instruments(a)256,526
2,127
 3.33
 234,809
1,834
 3.13
 351,716
2,927
 3.34
 240,254
2,127
 3.55 
Taxable securities189,419
1,383
 2.93
 229,196
1,410
 2.47
 244,814
1,875
 3.07
 189,419
1,383
 2.93 
Nontaxable securities(a)(b)
42,588
494
 4.65
 45,499
720
 6.35
 36,418
422
 4.65
 42,588
494
 4.65 
Total investment securities232,007
1,877
 3.24
(g) 
 274,695
2,130
 3.11
(g) 
281,232
2,297
 3.28
(h) 
 232,007
1,877
 3.24
(h) 
Loans939,675
11,680
 4.99
 904,969
10,065
 4.46
 954,854
12,770
 5.36
 939,675
11,680
 4.99 
All other interest-earning assets(b)(c)
50,662
848
 6.72
 40,041
435
 4.35
 46,516
472
 4.07
 50,662
503
 3.99 
Total interest-earning assets(a)2,222,277
19,030
 3.43
 2,177,109
15,989
 2.95
 2,339,094
21,741
 3.73
 2,206,005
18,727
 3.40 
Allowance for loan losses(13,223)    (13,350)    (13,428)    (13,223)  
Cash and due from banks22,050
    19,797
    20,651
    22,050
  
Trading assets – equity instruments112,142
    126,127
    
Trading assets – equity and other instruments(a)
120,545
    128,414
  
Trading assets – derivative receivables60,978
    58,250
    52,659
    60,978
  
Goodwill, MSRs and other intangible assets
54,616
    53,902
    54,144
    54,616
  
Other assets154,129
    137,401
    165,390
    154,129
  
Total assets$2,612,969
    $2,559,236
    $2,739,055
    $2,612,969
  
Liabilities              
Interest-bearing deposits(a)$1,059,357
$1,340
 0.51% $1,006,008
$629
 0.25 % $1,104,051
$2,413
 0.88% $1,044,738
$1,340
 0.51 
Federal funds purchased and securities loaned or sold under repurchase agreements192,136
759
 1.58
 196,331
387
 0.79
 227,313
1,226
 2.16
 192,136
759
 1.58 
Short-term borrowings(c)(d)
62,339
260
 1.67
 43,159
96
 0.89
 58,262
363
 2.49
 53,016
260
 1.97 
Trading liabilities – debt and other interest-bearing
liabilities(d)(e)
180,879
901
 2.00
 173,373
515
 1.19
 
Trading liabilities – debt and all other interest-bearing
liabilities(a)(e)(f)
191,655
762
 1.60
 180,541
598
 1.33 
Beneficial interests issued by consolidated VIEs20,906
121
 2.33
 34,083
128
 1.51
 26,713
175
 2.63
 20,906
121
 2.33 
Long-term debt(a)275,645
2,003
 2.91
 295,868
1,687
 2.29
 246,053
2,266
 3.69
 242,913
2,003
 3.31 
Total interest-bearing liabilities(a)1,791,262
5,384
 1.21
 1,748,822
3,442
 0.79
 1,854,047
7,205
 1.56
 1,734,250
5,081
 1.17 
Noninterest-bearing deposits(a)401,138
    404,121
    408,243
    415,757
  
Trading liabilities – equity instruments(e)
34,593
    19,346
    
Trading liabilities – equity and other instruments(a)(f)
30,170
    34,931
  
Trading liabilities – derivative payables42,168
    44,740
    40,233
    42,168
  
All other liabilities, including the allowance for lending-related commitments(a)88,839
    85,939
    146,343
    130,894
  
Total liabilities2,358,000
    2,302,968
    2,479,036
    2,358,000
  
Stockholders’ equity              
Preferred stock26,068
    26,068
    26,993
    26,068
  
Common stockholders’ equity228,901
    230,200
    233,026
    228,901
  
Total stockholders’ equity254,969
    256,268
    260,019
    254,969
  
Total liabilities and stockholders’ equity$2,612,969
    $2,559,236
    $2,739,055
    $2,612,969
  
Interest rate spread(a)  2.22%   2.16 %   2.17%   2.23 
Net interest income and net yield on interest-earning assets(a) $13,646
 2.46
  $12,547
 2.31
  $14,536
 2.49
  $13,646
 2.48 
(a)In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect on net interest income. These changes were made to align the accounting treatment between the balance sheet and the related interest income or expense, primarily by offsetting interest income and expense for certain prime brokerage-related held-for-investment customer receivables and payables that are currently presented as a single margin account on the balance sheet. In addition, the Firm reclassified balances related to certain instruments and structured notes from interest-earning/bearing to noninterest-earning/bearing assets and liabilities as the associated returns are recorded in principal transactions revenue and not in net interest income. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.
(b)Represents securities which are tax-exempt for U.S. federal income tax purposes.
(c)Includes prime brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated Balance Sheets.
(d)Includes commercial paper
(e)Other interest-bearing liabilities include prime brokerage-related customer payables.
(f)The combined balance of trading liabilities – debt and equity instruments was $111.0 billion each for the three months ended June 30, 2019 and 2018, respectively.
(g)Interest includes the effect of certain related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(h)The annualized rate for securities based on amortized cost was 3.32% and 3.27% for the three months ended June 30, 2019 and 2018, respectively, and does not give effect to changes in fair value that are reflected in AOCI.

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. For additional information, refer to Note 1.
(a) Represents securities which are tax-exempt for U.S. federal income tax purposes.
(b) 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.
(c) Includes commercial paper.
(d) Other interest-bearing liabilities include brokerage customer payables.
(e) The combined balance of trading liabilities – debt and equity instruments were $111.0 billion and $90.5 billion for the three months ended June 30, 2018 and 2017, respectively.
(f) Interest includes the effect of certain related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(g) For the three months ended June 30, 2018 and 2017, the annualized rates for securities, based on amortized cost, were 3.27% and 3.15%, respectively; this does not give effect to changes in fair value that are reflected in AOCI.
(h) Negative interest income and 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


JPMorgan Chase & Co.
Consolidated average balance sheets, interest and rates
Consolidated average balance sheets, interest and rates (unaudited)Consolidated average balance sheets, interest and rates (unaudited)
(Taxable-equivalent interest and rates; in millions, except rates)
      
Six months ended June 30, 2018 Six months ended June 30, 2017Six months ended June 30, 2019 Six months ended June 30, 2018
Average
balance
Interest(f)
 Rate
(annualized)		 Average
balance
Interest(f)
 Rate
(annualized)		Average
balance
Interest(g)
 Rate
(annualized)		 Average
balance
Interest(g)
 Rate
(annualized)
Assets              
Deposits with banks$424,880
$2,864
 1.36% $431,486
$1,743
 0.81 % $290,058
$2,302
 1.60% $424,880
$2,864
 1.36 
Federal funds sold and securities purchased under resale agreements201,700
1,538
 1.54
 195,123
1,054
 1.09
 288,631
3,323
 2.32
 201,700
1,538
 1.54 
Securities borrowed(a)111,106
210
 0.38
 92,747
(65)
(h) 
(0.14) 124,820
864
 1.40
 111,106
301
 0.55 
Trading assets – debt instruments(a)256,284
4,245
 3.34
 230,330
3,717
 3.25
 337,209
5,709
 3.41
 240,062
4,245
 3.57 
Taxable securities192,511
2,696
 2.82
 234,967
2,840
 2.44
 232,880
3,580
 3.10
 192,511
2,696
 2.82 
Nontaxable securities(a)(b)
43,348
1,004
 4.67
 45,133
1,410
 6.30
 37,496
875
 4.71
 43,348
1,004
 4.67 
Total investment securities235,859
3,700
 3.16
(g) 
 280,100
4,250
 3.06
(g) 
270,376
4,455
 3.32
(h) 
 235,859
3,700
 3.16
(h) 
Loans933,148
22,797
 4.93
 898,473
19,888
 4.46
 961,400
25,690
 5.39
 933,148
22,797
 4.93 
All other interest-earning assets(b)(c)
49,920
1,529
 6.18
 40,796
773
 3.82
 46,611
930
 4.03
 49,920
934
 3.77 
Total interest-earning assets(a)2,212,897
36,883
 3.36
 2,169,055
31,360
 2.92
 2,319,105
43,273
 3.76
 2,196,675
36,379
 3.34 
Allowance for loan losses(13,352)    (13,536)    (13,480)    (13,352)  
Cash and due from banks22,111
    19,858
    21,052
    22,111
  
Trading assets – equity instruments109,927
    120,735
    
Trading assets – equity and other instruments(a)
114,605
    126,149
  
Trading assets – derivative receivables60,737
    59,816
    52,591
    60,737
  
Goodwill, MSRs and other intangible assets
54,659
    54,075
    54,222
    54,659
  
Other assets152,602
    136,268
    163,940
    152,602
  
Total assets$2,599,581
    $2,546,271
    $2,712,035
    $2,599,581
  
Liabilities              
Interest-bearing deposits(a)$1,052,975
$2,400
 0.46% $996,067
$1,112
 0.23 % $1,092,228
$4,601
 0.85% $1,038,502
$2,400
 0.47 
Federal funds purchased and securities loaned or sold under repurchase agreements194,113
1,337
 1.39
 192,990
680
 0.71
 218,240
2,336
 2.16
 194,113
1,337
 1.39 
Short-term borrowings(c)(d)
59,984
469
 1.58
 39,859
169
 0.85
 62,643
790
 2.54
 50,622
469
 1.87 
Trading liabilities – debt and other interest-bearing
liabilities(d)(e)
176,210
1,561
 1.79
 175,088
920
 1.06
 
Trading liabilities – debt and all other interest-bearing liabilities(a)(e)(f)
187,590
1,481
 1.59
 175,754
1,057
 1.21 
Beneficial interests issued by consolidated VIEs22,226
244
 2.22
 36,416
263
 1.46
 24,782
325
 2.64
 22,226
244
 2.22 
Long-term debt(a)277,315
3,756
 2.73
 294,056
3,276
 2.25
 247,171
4,608
 3.76
 245,541
3,756
 3.08 
Total interest-bearing liabilities(a)1,782,823
9,767
 1.10
 1,734,476
6,420
 0.75
 1,832,654
14,141
 1.56
 1,726,758
9,263
 1.08 
Noninterest-bearing deposits(a)400,317
    404,831
    403,880
    414,790
  
Trading liabilities – equity instruments(e)
31,628
    20,204
    
Trading liabilities – equity and other instruments(a)(f)
32,440
    32,084
  
Trading liabilities – derivative payables41,958
    46,547
    39,902
    41,958
  
All other liabilities, including the allowance for lending-related commitments(a)88,526
    85,186
    144,553
    129,662
  
Total liabilities2,345,252
    2,291,244
    2,453,429
    2,345,252
  
Stockholders’ equity              
Preferred stock26,068
    26,068
    27,059
    26,068
  
Common stockholders’ equity228,261
    228,959
    231,547
    228,261
  
Total stockholders’ equity254,329
    255,027
    258,606
    254,329
  
Total liabilities and stockholders’ equity$2,599,581
    $2,546,271
    $2,712,035
    $2,599,581
  
Interest rate spread(a)  2.26%   2.17 %   2.20%   2.26 
Net interest income and net yield on interest-earning assets(a) $27,116
 2.47
  $24,940
 2.32
  $29,132
 2.53
  $27,116
 2.49 
(a)In the second quarter of 2019, the Firm implemented certain presentation changes that impacted interest income and interest expense, but had no effect on net interest income. These changes were made to align the accounting treatment between the balance sheet and the related interest income or expense, primarily by offsetting interest income and expense for certain prime brokerage-related held-for-investment customer receivables and payables that are currently presented as a single margin account on the balance sheet. In addition, the Firm reclassified balances related to certain instruments and structured notes from interest-earning/bearing to noninterest-earning/bearing assets and liabilities as the associated returns are recorded in principal transactions revenue and not in net interest income. These changes were applied retrospectively and, accordingly, prior period amounts were revised to conform with the current presentation.
(b)Represents securities which are tax-exempt for U.S. federal income tax purposes.
(c)Includes prime brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated Balance Sheets.
(d)Includes commercial paper
(e)Other interest-bearing liabilities include prime brokerage-related customer payables.
(f)The combined balance of trading liabilities – debt and equity instruments were $109.0 billion and $104.5 billion for the six months ended June 30, 2019 and 2018, respectively.
(g)Interest includes the effect of certain related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(h)The annualized rate for securities based on amortized cost was 3.36% and 3.19% for the six months ended June 30, 2019 and 2018, respectively, and does not give effect to changes in fair value that are reflected in AOCI.

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. For additional information, refer to Note 1.
(a) Represents securities which are tax-exempt for U.S. federal income tax purposes.
(b) Includes held-for-investment margin loans, which are classified in accrued interest and accounts receivable, and all other interest-earning assets included in other assets on the Consolidated balance sheets.
(c) Includes commercial paper.
(d) Other interest-bearing liabilities include brokerage customer payables.
(e) The combined balance of trading liabilities – debt and equity instruments were $104.5 billion and $92.3 billion for the six months ended June 30, 2018 and 2017, respectively.
(f) Interest includes the effect of certain related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(g) For the six months ended June 30, 2018 and 2017, the annualized rates for securities, based on amortized cost, were 3.19% and 3.09%, respectively; this does not give effect to changes in fair value that are reflected in AOCI.
(h) Negative interest income and 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


GLOSSARY OF TERMS AND ACRONYMS
2017 Annual Report or 20172018 Form 10-K: Annual report on Form 10-K for year ended December 31, 2017,2018, filed with the U.S. Securities and Exchange Commission.
ABS: ABS: Asset-backed securities
Active foreclosures: Loans referred to foreclosure where formal foreclosure proceedings are ongoing. Includes both judicial and non-judicial states.
AFS:Available-for-sale
Allowance for loan losses to total retained loans: represents period-end allowance for loan losses divided by retained loans.
AOCI: AOCI: Accumulated other comprehensive income/(loss)
ARM(s): Adjustable rate mortgage(s)
AWM: Asset & Wealth Management
Beneficial interests issued by consolidated VIEs: VIEs:represents the interest of third-party holders of debt, equity securities, or other obligations, issued by VIEs that JPMorgan Chase consolidates.
Benefit obligation: obligation: refers to the projected benefit obligation for pension plans and the accumulated postretirement benefit obligation for OPEB plans.
BHC: Bank holding company
CB: Commercial Banking
CBB: Consumer & Business Banking
CCAR: Comprehensive Capital Analysis and Review
CCB: Consumer & Community Banking
CCP: “Central counterparty” is a clearing house that interposes itself between counterparties to contracts traded in one or more financial markets, becoming the buyer to every seller and the seller to every buyer and thereby ensuring the future performance of open contracts. A CCP becomes counterparty to trades with market participants through novation, an open offer system, or another legally binding arrangement.
CDS: CDS: Credit default swaps
CEO: Chief Executive Officer
CET1 Capital: Common equity Tier 1 Capital
CFTC:CFTC: Commodity Futures Trading Commission
CFO: Chief Financial Officer
Chase Bank USA, N.A.:Chase Bank USA, National Association
CIB: Corporate & Investment Bank
CIO: Chief Investment Office
Client deposits and other third partythird-party liabilities: Deposits, as well as deposits that are swept to on-balance sheet liabilities (e.g., commercial paper, federal funds purchased and securities loaned or sold under repurchase agreements) as part of client cash management programs.
CLO: Collateralized loan obligations
CLTV: CLTV: Combined loan-to-value
Collateral-dependent:Collateral-dependent: A loan is considered to be collateral-dependent when repayment of the loan is expected to be provided solely by the underlying collateral, rather than by cash flows from the borrower’s operations, income or other resources.
Commercial Card: provides a wide range of payment services to corporate and public sector clients worldwide through the commercial card products. Services include procurement, corporate travel and entertainment, expense
management services, and business-to-business payment solutions.
Core loans: represents loans considered central to the Firm’s ongoing businesses; core loans excludeexcludes loans classified as trading assets, runoff portfolios, discontinued portfolios and portfolios the Firm has an intent to exit.
Credit derivatives: derivatives:Financial instruments whose value is derived from the credit risk associated with the debt of a third partythird-party issuer (the reference entity) which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller). Upon the occurrence of a credit event by the reference entity, which may include, among other events, the bankruptcy or failure to pay its obligations, or certain restructurings of the debt of the reference entity, neither party has recourse to the reference entity. The protection purchaser has recourse to the protection seller for the difference between the face value of the CDS contract and the fair value at the time of settling the credit derivative contract. The determination as to whether a credit event has occurred is generally made by the relevant International Swaps and Derivatives Association (“ISDA”) Determinations Committee.
Criticized: Criticized: Criticized loans, lending-related commitments and derivative receivables that are classified as special mention, substandard and doubtful categories for regulatory purposes and are generally consistent with a rating of CCC+/Caa1 and below, as defined by S&P and Moody’s.
CRO: Chief Risk Officer
CVA: Credit valuation adjustmentsadjustment
DFAST: Dodd-Frank Act Stress Test
Dodd-Frank Act: Wall Street Reform and Consumer Protection Act
DOJ: U.S. Department of Justice
DOL: U.S.Department of Labor
DVA:Debit valuation adjustment
EC: EC: European Commission
Eligible LTD: Long-term debt satisfying certain eligibility criteria
Embedded derivatives: are implicit or explicit terms or features of a financial instrument that affect some or all of the cash flows or the value of the instrument in a manner similar to a derivative. An instrument containing such terms or features is referred to as a “hybrid.” The component of the hybrid that is the non-derivative instrument is referred

to as the “host.” For example, callable debt is a hybrid instrument that contains a plain vanilla debt instrument (i.e., the host) and an embedded option that allows the issuer to redeem the debt issue at a specified date for a specified amount (i.e., the embedded derivative). However, a floating rate instrument is not a hybrid composed of a fixed-rate instrument and an interest rate swap.
ERISA: Employee Retirement Income Security Act of 1974
EPS: Earnings per share
Exchange-traded derivatives: Derivative contracts that are executed on an exchange and settled via a central clearing house.
Fannie Mae:Mae: Federal National Mortgage Association
FASB: FASB: Financial Accounting Standards Board
FCA:
FCA: Financial Conduct Authority
FCC: Firmwide Control Committee
FDIA: Federal Depository Insurance Act
FDIC: FDIC: Federal Deposit Insurance Corporation
Federal Reserve: The Board of the Governors of the Federal Reserve System
Fee share: Proportion of fee revenue based on estimates of investment banking fees generated across the industry from investment banking transactions in M&A, equity and debt underwriting, and loan syndications. Source: Dealogic, a third party provider of investment banking fee competitive analysis and volume-based league tables for the above noted industry products.
FFELP: Federal Family Education Loan Program
FFIEC: Federal Financial Institutions Examination Council
FHA: FHA: Federal Housing Administration
FHLB: FHLB: Federal Home Loan Bank
FICO score:A measure of consumer credit risk based on information in consumer credit reports produced by Fair Isaac Corporation. Because certain aged data is excluded from credit reports based on rules in the Fair Credit Reporting Act, FICO scores may not reflect all historical information about a consumer.
Firm: JPMorgan Chase & Co.
Forward points: represents the interest rate differential between two currencies, which is either added to or subtracted from the current exchange rate (i.e., “spot rate”) to determine the forward exchange rate.
Freddie Mac: Federal Home Loan Mortgage Corporation
Free-standing derivatives:derivatives: is a derivative contract entered into either separate and apart from any of the Firm’s other financial instruments or equity transactions. Or, in conjunction with some other transaction and is legally detachable and separately exercisable.
FSB: Financial Stability Board
FTE: Fully taxable-equivalent
FVA: Funding valuation adjustment
FX: FX: Foreign exchange
G7:G7: “Group of Seven nations”:Countries in the G7 are Canada, France, Germany, Italy, Japan, the U.K. and the U.S.
G7 government securities: securities:Securities issued by the government of one of the G7 nations.
Ginnie Mae:Mae: Government National Mortgage Association
GSE: GSE: Fannie Mae and Freddie Mac
GSIB:Global systemically important banks
HAMP: Home affordable modification program
Headcount-related expense: Includes salary and benefits (excluding performance-based incentives), and other     noncompensation costs related to employees.
HELOAN: HELOAN: Home equity loan
HELOC: HELOC: Home equity line of credit
Home equity – senior lien: lien:represents loans and commitments where JPMorgan Chase holds the first security interest on the property.
Home equity – junior lien: lien:represents loans and commitments where JPMorgan Chase holds a security interest that is subordinate in rank to other liens.
HQLA: High qualityHigh-quality liquid assets
HTM: HTM: Held-to-maturity
IDI: IDI: Insured depository institutions
IHC: JPMorgan Chase Holdings LLC, an intermediate holding company
Impaired loan: loan:Impaired loans are loans measured at amortized cost, for which it is probable that the Firm will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the agreement. Impaired loans include the following:
All wholesale nonaccrual loans
All TDRs (both wholesale and consumer), including ones that have returned to accrual status
Investment-grade: IPO: Initial public offering
Investment-grade:An indication of credit quality based on JPMorgan Chase’s internal risk assessment system. “Investment grade” generally represents a risk profile similar to a rating of a “BBB-”/“Baa3” or better, as defined by independent rating agencies.
IR: Interest rate
ISDA: International Swaps and Derivatives Association
JPMorgan Chase: JPMorgan Chase & Co.
JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank, National Association
J.P. Morgan Securities: J.P. Morgan Securities LLC
LCR: Liquidity coverage ratio
LGD: Loss given default
LIBOR:LIBOR: London Interbank Offered Rate
LLC: LLC:Limited Liability Company
LOB: LOB: Line of business
Loss emergence period: represents the time period between the date at which the loss is estimated to have been incurred and the ultimate realization of that loss.

LTIP: Long-term incentive plan
LTV: “Loan-to-value ratio”: For residential real estate loans, the relationship, expressed as a percentage, between the principal amount of a loan and the appraised value of the collateral (i.e., residential real estate) securing the loan.
Origination date LTV ratio
The LTV ratio at the origination date of the loan. Origination date LTV ratios are calculated based on the actual appraised values of collateral (i.e., loan-level data) at the origination date.
Current estimated LTV ratio
An estimate of the LTV as of a certain date. The current estimated LTV ratios are calculated using estimated collateral values derived from a nationally recognized home price index measured at the metropolitan statistical area (“MSA”) level. These MSA-level home price indices consist of actual data to the extent available and forecasted data where actual data is not available. As a result, the estimated collateral values used to calculate these ratios do not represent actual appraised loan-level collateral values; as such, the resulting LTV ratios are necessarily imprecise and should therefore be viewed as estimates.
Combined LTV ratio
The LTV ratio considering all available lien positions, as well as unused lines, related to the property. Combined LTV ratios are used for junior lien home equity products.
Managed basis: A non-GAAP presentation of Firmwide financial results that includes reclassifications to present revenue on a fully taxable-equivalent basis. Management also uses this financial measure at the segment level, because it believes this provides information to enable investors to understand the underlying operational

performance and trends of the particular business segment and facilitates a comparison of the business segment with the performance of competitors.
Master netting agreement:A single agreement with a counterparty that permits multiple transactions governed by that agreement to be terminated or accelerated and settled through a single payment in a single currency in the event of a default (e.g., bankruptcy, failure to make a required payment or securities transfer or deliver collateral or margin when due).
Measurement alternative: Measures equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer.
MBS:Mortgage-backed securities
MD&A: Management’s discussion and analysis
Moody’s: Moody’s: Moody’s Investor Services
Mortgage product types:types:
Alt-A
Alt-A loans are generally higher in credit quality than subprime loans but have characteristics that would disqualify the borrower from a traditional prime loan. Alt-A lending characteristics may include one or more of the following: (i) limited documentation; (ii) a high CLTV ratio; (iii) loans secured by non-owner occupied properties; or (iv) a debt-to-income ratio above normal limits. A substantial proportion of the Firm’s Alt-A loans are those where a borrower does not provide complete documentation of his or her assets or the amount or source of his or her income.
Option ARMs
The option ARM real estate loan product is an adjustable-rate mortgage loan that provides the borrower with the option each month to make a fully amortizing, interest-only or minimum payment. The minimum payment on an option ARM loan is based on the interest rate charged during the introductory period. This introductory rate is usually significantly below the fully indexed rate. The fully indexed rate is calculated using an index rate plus a margin. Once the introductory period ends, the contractual interest rate charged on the loan increases to the fully indexed rate and adjusts monthly to reflect movements in the index. The minimum payment is typically insufficient to cover interest accrued in the prior month, and any unpaid interest is deferred and added to the principal balance of the loan. Option ARM loans are subject to payment recast, which converts the loan to a variable-rate fully amortizing loan upon meeting specified loan balance and anniversary date triggers.
Prime
PrimePrime mortgage loans are made to borrowers with good credit records who meet specific underwriting requirements, including prescriptive requirements related to income and overall debt levels. New prime mortgage borrowers provide full documentation and generally have reliable payment histories.
Subprime
Subprime loans are loans that, prior to mid-2008, were offered to certain customers with one or more high risk characteristics, including but not limited to: (i) unreliable or poor payment histories; (ii) a high LTV ratio of greater than 80% (without borrower-paid mortgage insurance); (iii) a high debt-to-income ratio; (iv) an occupancy type for the loan is other than the borrower’s primary residence; or (v) a history of delinquencies or late payments on the loan.
MSA:Metropolitan statistical areas
MSR: MSR: Mortgage servicing rights
NA: NA:Data is not applicable or available for the period presented.
Net Capital Rule: Rule 15c3-1 under the Securities Exchange Act of 1934.
Net charge-off/(recovery) rate: represents net charge-offs/(recoveries) (annualized) divided by average retained loans for the reporting period.
Net interchange income includes the following components:
•
Interchange income: Fees earned by credit and debit card issuers on sales transactions.
•
Rewards costs: The cost to the Firm for points earned by cardholders enrolled in credit card rewards programs.
•
Partner payments: Payments to co-brand credit card partners based on the cost of loyalty program rewards earned by cardholders on credit card transactions.
Interchange income:A fee paid to a credit card issuer in the clearing and settlement of a sales or cash advance transaction.
Rewards costs: The cost to the Firm for points earned by cardholders enrolled in credit card rewards programs.
Partner payments: Payments to co-brand credit card partners based on the cost of loyalty program rewards earned by cardholders on credit card transactions.

Net yield on interest-earning assets: The average rate for interest-earning assets less the average rate paid for all sources of funds.
NM:Not meaningful
NOL: Net operating loss
Nonaccrual loans:loans: Loans for which interest income is not recognized on an accrual basis. Loans (other than credit card loans and certain consumer loans insured by U.S. government agencies) are placed on nonaccrual status when full payment of principal and interest is not expected, regardless of delinquency status, or when principal and interest has been in default for a period of 90 days or more unless the loan is both well-secured and in the process of collection. Collateral-dependent loans are typically maintained on nonaccrual status.
Nonperforming assets: Nonperforming assets include nonaccrual loans, nonperforming derivatives and certain assets acquired in loan satisfactions, predominantly real estate owned and other commercial and personal property.
OCC: OCC: Office of the Comptroller of the Currency
OCI: OCI: Other comprehensive income/(loss)
OEP: One Equity Partners
OIS: Overnight index swap
OPEB: OPEB: Other postretirement employee benefit
OTC:OTC: “Over-the-counter derivatives”:Derivative contracts that are negotiated, executed and settled bilaterally between two derivative counterparties, where one or both counterparties is a derivatives dealer.
OTC cleared:cleared: “Over-the-counter cleared derivatives”:Derivative contracts that are negotiated and executed bilaterally, but subsequently settled via a central clearing

house, such that each derivative counterparty is only exposed to the default of that clearing house.
OTTI: Other-than-temporary impairment
Overhead ratio: Noninterest expense as a percentage of total net revenue.
Parent Company: JPMorgan Chase & Co.
Participating securities: represents unvested share-based compensation awards containing nonforfeitable rights to dividends or dividend equivalents (collectively, “dividends”), which are included in the earnings per share calculation using the two-class method. JPMorgan Chase grants restricted stock and RSUs to certain employees under its share-based compensation programs, which entitle the recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock. These unvested awards meet the definition of participating securities. Under the two-class method, all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities, based on their respective rights to receive dividends.
PCA: Prompt corrective action
PCI:PCI: “Purchased credit-impaired” loansrepresents certain loans that were acquired and deemed to be credit-impaired on the acquisition date in accordance with the guidance of
the FASB. The guidance allows purchasers to aggregate credit-impaired loans acquired in the same fiscal quarter into one or more pools, provided that the loans have common risk characteristics (e.g., product type, LTV ratios, FICO scores, past due status, geographic location). A pool is then accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows.
PD: Probability of default
PRA: Prudential RegulatoryRegulation Authority
Pre-provision profit/(loss): represents total net revenue less noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.
Principal transactions revenue: revenue:Principal transactions revenue is driven by many factors, including the bid-offer spread, which is the difference between the price at which the Firm is willing to buy a financial or other instrument and the price at which the Firm is willing to sell that instrument. It also consists of realized (as a result of closing out or termination of transactions, or interim cash payments) and unrealized (as a result of changes in valuation) gains and losses on financial and other instruments (including those accounted for under the fair value option) primarily used in client-driven market-making activities and on private equity investments. In connection with its client-driven market-making activities, the Firm transacts in debt and equity instruments, derivatives and commodities (including physical commodities inventories and financial instruments that reference commodities). Principal transactions revenue also includes certain realized and unrealized gains and losses related to hedge accounting and specified risk-management activities, including: (a) certain derivatives designated in qualifying hedge accounting relationships (primarily fair value hedges of commodity and foreign
exchange risk), (b) certain derivatives used for specific risk management purposes, primarily to mitigate credit risk and foreign exchange risk, and (c) other derivatives.
PSU(s): Performance share units
Receivables from customers: primarily represents margin loans toprime brokerage-related held-for-investment customer receivables from brokerage customers that are collateralized through assets maintained in the clients’ brokerage accounts, as such no allowance is held against these receivables. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets.
Regulatory VaR: Daily aggregated VaR calculated in accordance with regulatory rules.
REO: Real estate owned
Reported basis: Financial statements prepared under U.S. GAAP, which excludes the impact of taxable-equivalent adjustments.
Retained loans: loans:Loans that are held-for-investment (i.e. excludes loans held-for-sale and loans at fair value).
Revenue wallet: Total fee revenue based on estimates of investment banking fees generated across the industry (i.e., the revenue wallet) from investment banking transactions in M&A, equity and debt underwriting, and loan

syndications. Source: Dealogic, a third-party provider of investment banking competitive analysis and volume based league tables for the above noted industry products.
RHS:RHS: Rural Housing Service of the U.S. Department of Agriculture
ROE: Return on equity
ROTCE: Return on tangible common equity
ROU assets: Right-of-use assets
RSU(s): Restricted stock units
RWA:RWA: “Risk-weighted assets”:Basel III establishes two comprehensive approaches for calculating RWA (a Standardized approach and an Advanced approach) which include capital requirements for credit risk, market risk, and in the case of Basel III Advanced, also operational risk. Key differences in the calculation of credit risk RWA between the Standardized and Advanced approaches are that for Basel III Advanced, credit risk RWA is based on risk-sensitive approaches which largely rely on the use of internal credit models and parameters, whereas for Basel III Standardized, credit risk RWA is generally based on supervisory risk-weightings which vary primarily by counterparty type and asset class. Market risk RWA is calculated on a generally consistent basis between Basel III Standardized and Basel III Advanced.
S&P:&P: Standard and Poor’s 500 IndexPoors
SAR(s): Stock appreciation rights
SCCLSEC: Single-counterparty credit limits
Scored portfolio: The scored portfolio predominantly includes residential real estate loans, credit card loans and certain auto and business banking loans where credit loss estimates are based on statistical analysis of credit losses over discrete periods of time. The statistical analysis uses portfolio modeling, credit scoring and decision-support tools.
SEC: U.S.Securities and Exchange Commission
Seed capital: Initial JPMorgan capital invested in products, such as mutual funds, with the intention of ensuring the fund is of sufficient size to represent a viable offering to clients, enabling pricing of its shares, and allowing the manager to develop a track record. After these goals are

achieved, the intent is to remove the Firm’s capital from the investment.
Single-name: Single-name: Single reference-entities
SLR: SLR: Supplementary leverage ratio
SMBS: Stripped mortgage-backed securities
SPEs: SPEs: Special purpose entities
Structural interest rate risk: represents interest rate risk of the non-trading assets and liabilities of the Firm.
Structured notes: notes: Structured notes are predominantly financial instruments containingwhose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, or other market variables. The notes typically contain embedded (but not separable or detachable) derivatives. Where present,Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the embedded derivative islife of the primary drivernote based on non-traditional indexes or non-traditional uses of risk.traditional interest rates or indexes.
Suspended foreclosures:Loans referred to foreclosure where formal foreclosure proceedings have started but are currently on hold, which could be due to bankruptcy or loss mitigation. Includes both judicial and non-judicial states.
Taxable-equivalent basis: In presenting managed results, the total net revenue for each of the business segments and the Firm is presented on a tax-equivalent 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; the corresponding income tax impact related to tax-exempt items is recorded within income tax expense.
TBVPS: Tangible book value per share
TCE: Tangible common equity
TDR:“TroubledTDR: “Troubled debt restructuring” is deemed to occur when the Firm modifies the original terms of a loan agreement by granting a concession to a borrower that is experiencing financial difficulty.
TLAC: Total Loss Absorbing Capacity
U.K.: United Kingdom
Unaudited: Unaudited:Financial statements and information that have not been subjected to auditing procedures sufficient to permit an independent certified public accountant to express an opinion.
U.S.: United States of America
U.S. GAAP: GAAP:Accounting principles generally accepted in the United States of America.
U.S. GSE(s): “U.S. government-sponsored enterprises”:In the U.S., GSEs are quasi-governmental, privately-held entities established by Congress to improve the flow of credit to specific sectors of the economy and provide certain essential services to the public. U.S. GSEs include Fannie Mae and Freddie Mac, but do not include Ginnie Mae, which is directly owned by the U.S. Department of Housing and Urban Development. U.S. GSE obligations are not explicitly guaranteed as to the timely payment of principal
and interest by the full faith and credit of the U.S. government.
U.S. Treasury: Treasury:U.S. Department of the Treasury
VA: VA: U.S. Department of Veterans Affairs
VaR: “Value-at-risk” is a measure of the dollar amount of potential loss from adverse market moves in an ordinary market environment.
VIEs: VIEs: Variable interest entities
Warehouse loans: loans:consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as trading assets.
Washington Mutual transaction: On September 25, 2008, JPMorgan Chase acquired certain of the assets of the banking operations of Washington Mutual Bank (“Washington Mutual”) from the FDIC.


LINE OF BUSINESS METRICS
CONSUMER & COMMUNITY BANKING (“CCB”)
Debit and credit card sales volume: Dollar amount of cardmember purchases, net of returns.
Deposit margin/deposit spread: represents net interest income expressed as a percentage of average deposits.
Home Lending Production and Home Lending Servicing revenue comprises the following:
Net production revenue: includes net gains or losses on originations and sales of mortgage loans, other production-related fees and losses related to the repurchase of previously-sold loans.
Net mortgage servicing revenue: includes the following components:Includes
a) Operatingoperating revenue predominantly represents the return on Home Lending Servicing’s MSR asset and includes:
Actual gross income earned from servicing third-party
mortgage loans such as contractually specified servicing fees and ancillary income; andwhich is recognized over the period in
The changewhich the service is provided, changes in the fair value of
MSRs and the MSR asset due to the collection or realizationimpact of expected cash flows.
b) Risk management represents the components of Home Lending Servicing’s MSR asset that are subject to ongoing risk management activities together
associated with derivativesMSRs.
Net production revenue: Includes fees and other instruments used in thoseincome
recognized as earned on mortgage loans originated with the
intent to sell; the impact of risk management activities.activities
associated with the mortgage pipeline and warehouse
loans; and changes in the fair value of any residual interests
held from mortgage securitizations. Net production revenue
also includes gains and losses on sales of mortgage loans,
lower of cost or fair value adjustments on mortgage loans
held-for-sale, changes in fair value on mortgage loans
originated with the intent to sell and measured at fair value
under the fair value option, as well as losses recognized as
incurred related to repurchases of previously sold loans.
Mortgage origination channels comprise the following:
Retail: Borrowers who buy or refinance a home through direct contact with a mortgage banker employed by the Firm using a branch office, the Internet or by phone. Borrowers are frequently referred to a mortgage banker by a banker in a Chase branch, real estate brokers, home builders or other third parties.
Correspondent: Banks, thrifts, other mortgage banks and other financial institutions that sell closed loans to the Firm.
Card Services: includes the Credit Card and Merchant Services businesses.
Credit Card: is a business that primarily issues credit cards to consumers and small businesses.
Merchant Services: is a business that primarily processes transactions for merchants.
Net revenue rate: represents Card Services net revenue (annualized) expressed as a percentage of average loans for the period.
Auto loan and lease origination volume: Dollar amount of auto loans and leases originated.
 
CORPORATE & INVESTMENT BANK (“CIB”)
Definition of selected CIB revenue:
Investment Banking: incorporates all revenue associated with investment banking activities, and is reported net of investment banking revenue shared with other lines of business.
Treasury Services: offers a broad range of products and services that enable clients to manage payments and receipts, as well as invest and manage funds. Products include U.S. dollar and multi-currency clearing, ACH, lockbox, disbursement and reconciliation services, check deposits, and currency-related services.
Lending: includes net interest income, fees, gains or losses on loan sale activity, gains or losses on securities received as part of a loan restructuring, and the risk management results related to the credit portfolio. Lending also includes Trade Finance, which includes loans tied directly to goods crossing borders, export/import loans, commercial letters of credit, standby letters of credit, and supply chain finance.
Fixed Income Markets: primarily includes revenue related to market-making across global fixed income markets, including foreign exchange, interest rate, credit and commodities markets.
Equity Markets: primarily includes revenue related to market-making across global equity products, including cash instruments, derivatives, convertibles and prime brokerage.
Securities Services: primarilyincludes custody, fund accounting and administration, and securities lending products sold principally to asset managers, insurance companies and public and private investment funds. Also includes clearance, collateral management and depositary receipts businessbusinesses which provides broker-dealer clearing and custody services, including tri-party repo transactions,provide collateral management products, and depositary bank services for American and global depositary receipt programs.
Description of certain business metrics:
Assets under custody (“AUC”): represents activities associated with the safekeeping and servicing of assets on which Securities Services earns fees.
Investment banking fees: represents advisory, equity underwriting, bond underwriting and loan syndication fees.


COMMERCIAL BANKING (“CB”)
CB is divided into fourCommercial Banking provides comprehensive financial solutions, including lending, treasury services, investment banking and asset management products across three primary client segments: Middle Market Banking, Corporate Client Banking and Commercial Term Lending, and Real Estate Banking.Banking. Other includes amounts not aligned with a primary client segment.
Middle Market Banking: covers corporate, municipalmidsized corporations, local governments and nonprofit clients, with annual revenue generally ranging between $20 million and $500 million.clients.
Corporate Client Banking: covers clients with annual revenue generally ranging between $500 million and $2 billion and focuses on clients that have broader investment banking needs.large corporations.
Commercial Term Lending: primarily provides term financing to real estate investors/owners for multifamily properties as well as office, retail and industrial properties.
Real Estate Banking: provides full-service banking to coversinvestors, developers, and developersowners of institutional-grade real estate investmentmultifamily, office, retail, industrial and affordable housing properties.
Other: primarily includes lending and investment-related activities within the Community Development Banking business.
CB product revenue comprises the following:
Lending: includes a variety of financing alternatives, which are primarily provided on a secured basis; collateral includes receivables, inventory, equipment, real estate or other assets. Products include term loans, revolving lines of credit, bridge financing, asset-based structures, leases, and standby letters of credit.
Treasury services: includes revenue from a broad range of products and services that enable CB clients to manage payments and receipts, as well as invest and manage funds.
Investment banking: includes revenue from a range of products providing CB clients with sophisticated capital-raising alternatives, as well as balance sheet and risk management tools through advisory, equity underwriting, and loan syndications. Revenue from fixed income and equity market products used by CB clients is also included.
Other: product revenue primarily includes tax-equivalent adjustments generated from Community Development Banking activity and certain income derived from principal transactions.
 
ASSET & WEALTH MANAGEMENT (“AWM”)
Assets under management (“AUM”): represent assets managed by AWM on behalf of its Private Banking, Institutional and Retail clients.
Client assets: represent assets under management, as well as custody, brokerage, administration and deposit accounts.
Multi-asset: Any fund or account that allocates assets under management to more than one asset class.
Alternative assets: The following types of assets constitute alternative investments – hedge funds, currency, real estate, private equity and other investment funds designed to focus on nontraditional strategies.
AWM’s lines of business consist of the following:
Asset Management: provides comprehensive global investment services - including asset management, pension analytics, asset-liability management and active risk-budgeting strategies.
Wealth Management: offers investment advice and wealth management, including investment management, capital markets and risk management, tax and estate planning, banking, lending and specialty-wealth advisory services.
AWM’s client segments consist of the following:
Private Banking: clients include high- and ultra-high-net-worth individuals, families, money managers, business owners and small corporations worldwide.
Institutional: clients include both corporate and public institutions, endowments, foundations, nonprofit organizations and governments worldwide.
Retail: clients include financial intermediaries and individual investors.

Asset Management has two high-level measures of its overall fund performance:
Percentage of mutual fund assets under management in funds rated 4- or 5-star: Mutual fund rating services rank funds based on their risk-adjusted performance over various periods. A 5-star rating is the best rating and represents the top 10% of industry-wide ranked funds.
A 4-star rating represents the next 22.5% of industry-wide ranked funds. A 3-star rating represents the next 35% of industry-wide ranked funds. A 2-star rating represents the next 22.5% of industry-wide ranked funds. A 1-star rating is the worst rating and represents the bottom 10% of industry-wide ranked funds. The “overall Morningstar rating” is derived from a weighted average of the performance associated with a fund’s three-, five- and ten-year (if applicable) Morningstar Rating metrics. For U.S. domiciled funds, separate star ratings are given at the individual share class level. The Nomura “star rating” is based on three-year risk-adjusted performance only. Funds with fewer than three years of history are not rated and

hence excluded from this analysis. All ratings, the assigned peer categories and the asset values used to derive this analysis are sourced from these fund rating providers. The data providers re-denominate the asset values into U.S. dollars. This % of AUM is based on star ratings at the share class level for U.S. domiciled funds, and at a “primary share class” level to represent the star rating of all other funds except for Japan where Nomura provides ratings at the fund level. The “primary share class”, as defined by Morningstar, denotes the share class recommended as being the best proxy for the portfolio and in most cases will be the most retail version (based upon annual management charge, minimum investment, currency and other factors). The performance data could have been different if all funds/accounts would have been included. Past performance is not indicative of future results.
 
Percentage of mutual fund assets under management in funds ranked in the 1st or 2nd quartile (one, three, and five years): All quartile rankings, the assigned peer categories and the asset values used to derive this analysis are sourced from the fund ranking providers. Quartile rankings are done on the net-of-fee absolute return of each fund. The data providers re-denominate the asset values into U.S. dollars. This % of AUM is based on fund performance and associated peer rankings at the share class level for U.S. domiciled funds, at a “primary share class” level to represent the quartile ranking of the U.K., Luxembourg and Hong Kong funds and at the fund level for all other funds. The “primary share class”, as defined by Morningstar, denotes the share class recommended as being the best proxy for the portfolio and in most cases will be the most retail version (based upon annual management charge, minimum investment, currency and other factors). Where peer group rankings given for a fund are in more than one “primary share class” territory both rankings are included to reflect local market competitiveness (applies to “Offshore Territories” and “HK SFC Authorized” funds only). The performance data could have been different if all funds/accounts would have been included. Past performance is not indicative of future results.




Item 3.    Quantitative and Qualitative Disclosures About Market Risk.
For a discussion of the quantitative and qualitative disclosures about market risk, refer to the Market Risk Management section of Management’s discussion and analysis and pages 121-128124–131 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K.
Item 4.    Controls and Procedures.
As of the end of the period covered by this report, an evaluation was carried out under the supervision and with the participation of the Firm’s management, including its Chairman and Chief Executive Officer and its Chief Financial Officer, of the effectiveness of its disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934). Based on that evaluation, the Chairman and Chief Executive Officer and the Chief Financial Officer concluded that these disclosure controls and procedures were effective. Refer to Exhibits 31.1 and 31.2 for the Certification statements issued by the Chairman and Chief Executive Officer and Chief Financial Officer.
The Firm is committed to maintaining high standards of internal control over financial reporting. Nevertheless, because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In addition, in a firm as large and complex as JPMorgan Chase, lapses or deficiencies in internal controls do occur from time to time, and there can be no assurance that any such deficiencies will not result in significant deficiencies or material weaknesses in internal controls in the future. For further information, refer to “Management’s report on internal control over financial reporting” on page 146148 of JPMorgan Chase’s 2017 Annual Report.2018 Form 10-K. There was no change in the Firm’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) that occurred during the three months ended June 30, 2018,2019, that has materially affected, or is reasonably likely to materially affect, the Firm’s internal control over financial reporting.


Part II – Other Information
Item 1. Legal Proceedings.
For information that updates the disclosures set forth under Part I, Item 3: Legal Proceedings, in JPMorgan Chase’s 2017 Annual Report on2018 Form 10-K, refer to the discussion of the Firm’s material legal proceedings in Note 2224 of this Form 10-Q.
Item 1A. Risk Factors.
For a discussion of certain risk factors affecting the Firm, refer to Part I, Item 1A: Risk Factors on pages 8–267–28 of JPMorgan Chase’s 2017 Annual Report on2018 Form 10-K and Forward-Looking Statements on page 8379 of this Form 10-Q.
Supervision and regulation
For information on Supervision and Regulation, refer to Recent regulatory developments on page 44 of this Form 10-Q and the Supervision and regulation section on pages 1–86 of JPMorgan Chase’s 20172018 Form 10-K.
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds.
The Firm did not have any unregistered sale of equity securities during the three months ended June 30, 2018.2019.
Repurchases under the common equity repurchase program
Following receipt in June 2018 of the Federal Reserve’s non-objection to the Firm’s 2018 capital plan, the Firm’s Board of Directors authorized the repurchase of up to $20.7 billion of common equity (common stock and warrants) between July 1, 2018 and June 30, 2019. This authorization includes shares repurchased to offset issuancesFor information regarding repurchases under the Firm’s equity-based compensation plans. The following table sets forth the Firm’s repurchases of common equity for the three and six months ended June 30, 2018 and 2017. There were no warrants repurchased during the three and six months ended June 30, 2018 and 2017.
  Three months ended June 30, Six months ended June 30,
(in millions) 2018
2017
 20182017
Total shares of common stock repurchased 45.3
35.0
 86.7
67.1
Aggregate common stock repurchases $4,968
$3,007
 $9,639
$5,839
The Firm may, from time to time, enter into written trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934 to facilitate repurchases in accordance with the common equity repurchase program. A Rule 10b5-1 repurchase plan allows the Firmprogram, refer to repurchase its equity during periods when it would not otherwise be repurchasing common equity — for example, during internal trading blackout periods. All purchases under Rule 10b5-1 plans must be made according to predefined plans established when the Firm is not awareCapital Risk Management on pages 44–48 of material nonpublic information.
The authorization to repurchase common equity will be utilized at management’s discretion,this Form 10-Q and the timingpages 85-94 of purchases and the exact amount of common equity that may be repurchased is subject to various factors, including market conditions; legal and regulatory considerations affecting the amount and timing of repurchase activity; the Firm’s capital position (taking into account goodwill and intangibles); internal capital generation; and alternative investment opportunities. The repurchase program does not include specific price targets or timetables; maybe executed through open market purchases or privately negotiated transactions, or utilizing Rule 10b5-1 programs; and may be suspended at any time.

JPMorgan Chase’s 2018 Form 10-K.


Shares repurchased, on a settlement-date basis, pursuant to the common equity repurchase program during the six months ended June 30, 2018,2019, were as follows.
Six months ended June 30, 2018Total shares of common stock repurchased 
Average price paid per share of common stock(a)
 
Aggregate repurchases
of common equity
 (in millions)(a)
 
Dollar value of remaining authorized repurchase
(in millions)(a)
 
Six months ended June 30, 2019Total shares of common stock repurchased 
Average price paid per share of common stock(a)
 
Aggregate repurchases
of common equity
 (in millions)(a)
 
Dollar value of remaining authorized repurchase
(in millions)(a)(b)
 
First quarter41,419,035
 $112.78
 $4,671
 $5,156
(b) 
49,534,646
 $102.78
 $5,091
 $5,290
 
April17,162,364
 110.49
 1,896
 3,260
 15,167,534
 108.04
 1,639
 3,651
 
May14,810,601
 110.28
 1,633
 1,627
 17,612,730
 111.88
 1,971
 1,680
 
June13,326,405
 107.93
 1,439
 188
 14,653,991
 109.21
 1,600
 80
(c) 
Second quarter45,299,370
 109.67
 4,968
 188
(c) 
47,434,255
 109.83
 5,210
 80
(c) 
Year-to-date86,718,405
 $111.15
 $9,639
 $188
 96,968,901
 $106.23
 $10,301
 $80
(c) 
(a)Excludes commissions cost.
(b)Represents the amount remaining under the $19.4$20.7 billion repurchase program that was authorized by the Board of Directors on June 28, 2017.2018.
(c)The $188$80 million unused portion under the prior Board authorization was canceled when the $20.7$29.4 billion program was authorized.


Item 3.    Defaults Upon Senior Securities.
None.
Item 4.    Mine Safety Disclosures.
Not applicable.
Item 5.    Other Information.
None.
 


Item 6.    Exhibits.
Exhibit No. Description of Exhibit
   
15 
Letter re: Unaudited Interim Financial Information.(a)
   
31.1 
Certification.(a)
   
31.2 
Certification.(a)
   
32 
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.(b)
   
101.INS 
The instance document does not appear in the interactive data file because its XBRL Instance Document.tags are embedded within the inline XBRL document.(a)(c)
101.SCH 
XBRL Taxonomy Extension Schema Document.(a)
101.CAL 
XBRL Taxonomy Extension Calculation Linkbase Document.(a)
101.DEF 
XBRL Taxonomy Extension Definition Linkbase Document.(a)
101.LAB 
XBRL Taxonomy Extension Label Linkbase Document.(a)
101.PRE 
XBRL Taxonomy Extension Presentation Linkbase Document.(a)
104
The cover page of this Quarterly Report on Form 10-Q, formatted in inline XBRL.

(a)Filed herewith.
(b)Furnished herewith. This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.
(c)Pursuant to Rule 405 of Regulation S-T, includes the following financial information included in the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018,2019, formatted in XBRL (eXtensible Business Reporting Language) interactive data files: (i) the Consolidated statements of income (unaudited) for the three and six months ended June 30, 20182019 and 2017,2018, (ii) the Consolidated statements of comprehensive income (unaudited) for the three and six months ended June 30, 20182019 and 2017,2018, (iii) the Consolidated balance sheets (unaudited) as of June 30, 2018,2019, and December 31, 2017,2018, (iv) the Consolidated statements of changes in stockholders’ equity (unaudited) for the three and six months ended June 30, 20182019 and 2017,2018, (v) the Consolidated statements of cash flows (unaudited) for the six months ended June 30, 20182019 and 2017,2018, and (vi) the Notes to Consolidated Financial Statements (unaudited).


SIGNATURE






Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
JPMorgan Chase & Co.
(Registrant)




By:/s/ Nicole Giles
 Nicole Giles
 Managing Director and CorporateFirmwide Controller
 (Principal Accounting Officer)




Date:August 1, 20185, 2019












INDEX TO EXHIBITS






Exhibit No. Description of Exhibit
   
15 
Letter re: Unaudited Interim Financial Information.
   
31.1 
Certification.
   
31.2 
Certification.
   
32 
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.†
   
101.INS The instance document does not appear in the interactive data file because its XBRL Instance Document.tags are embedded within the inline XBRL document.
101.SCH XBRL Taxonomy Extension Schema Document.
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB XBRL Taxonomy Extension Label Linkbase Document.
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document.
104
The cover page of this Quarterly Report on Form 10-Q, formatted in inline XBRL.

   
† This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.






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