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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, 2021March 31, 2022number1-5805
JPMorgan Chase & 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.)
383 Madison Avenue,
New York,New York10179
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (212) 270-6000
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stockJPMThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 5.75% Non-Cumulative Preferred Stock, Series DDJPM PR DThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 6.00% Non-Cumulative Preferred Stock, Series EEJPM PR CThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.75% Non-Cumulative Preferred Stock, Series GGJPM PR JThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.55% Non-Cumulative Preferred Stock, Series JJJPM PR KThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.625% Non-Cumulative Preferred Stock, Series LLJPM PR LThe New York Stock Exchange
Depositary Shares, each representing a one-four hundredth interest in a share of 4.20% Non-Cumulative Preferred Stock, Series MMJPM PR MThe New York Stock Exchange
Alerian MLP Index ETNs due May 24, 2024AMJNYSE Arca, Inc.
Guarantee of Callable Step-Up Fixed Rate Notes due April 26, 2028 of JPMorgan Chase Financial Company LLCJPM/28The New York Stock Exchange
Guarantee of Callable Fixed Rate Notes due June 10, 2032 of JPMorgan Chase Financial Company LLCJPM/32The New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No
Number of shares of common stock outstanding as of June 30, 2021: 2,988,155,355March 31, 2022: 2,937,050,466


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 June30,March 31, 2022 and 2021 and 2020
8980
Consolidated statements of comprehensive income (unaudited) for the three and six months ended June30,March 31, 2022 and 2021 and 2020
9081
Consolidated balance sheets (unaudited) at June30, 2021March 31, 2022 and December 31, 20202021
9182
Consolidated statements of changes in stockholders’ equity (unaudited) for the three and six months ended June30,March 31, 2022 and 2021 and 2020
9283
Consolidated statements of cash flows (unaudited) for the sixthree months ended June30,March 31, 2022 and 2021 and 2020
9384
Notes to Consolidated Financial Statements (unaudited)
9485
Report of Independent Registered Public Accounting Firm
178164
Consolidated Average Balance Sheets, Interest and Rates (unaudited) for the three months ended June30,March 31, 2022 and 2021 and 2020
179165
Glossary of Terms and Acronyms and Line of Business Metrics
181166
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
109
Consolidated Balance Sheets and Cash Flows Analysis
15
Off-Balance Sheet Arrangements
1812
Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures
1915
Business Segment Results
2117
Firmwide Risk Management
4434
Capital Risk Management
4535
Liquidity Risk Management
5141
Consumer Credit Portfolio
5849
Wholesale Credit Portfolio
6354
Investment Portfolio Risk Management
7566
Market Risk Management
7667
Country Risk Management
8172
Operational Risk Management
82
Estimations and Model Risk Management
8374
Critical Accounting Estimates Used by the Firm
8475
Accounting and Reporting Developments
8778
Forward-Looking Statements
8879
Item 3.
Quantitative and Qualitative Disclosures About Market Risk.
190175
Item 4.
Controls and Procedures.
190175
Part II – Other information
Item 1.
Legal Proceedings.
190175
Item 1A.
Risk Factors.
190175
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds.
191175
Item 3.
Defaults Upon Senior Securities.
192176
Item 4.
Mine Safety Disclosures.
192176
Item 5.
Other Information.
192176
Item 6.
Exhibits.
192176
2

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

As of or for the period ended, (in millions, except per share, ratio, headcount data and where otherwise noted)

Six months ended June 30,
As of or for the period ended, (in millions, except per share, ratio, headcount data and where otherwise noted)

2Q211Q214Q203Q202Q20202120201Q224Q213Q212Q211Q21
Selected income statement dataSelected income statement dataSelected income statement data
Total net revenue(a)
Total net revenue(a)
$30,479 $32,266 $29,335 $29,255 $33,075 $62,745 $61,361 
Total net revenue(a)
$30,717 $29,257 $29,647 $30,479 $32,266 
Total noninterest expenseTotal noninterest expense17,667 18,725 16,048 16,875 16,942 36,392 33,733 Total noninterest expense19,191 17,888 17,063 17,667 18,725 
Pre-provision profit(b)(a)
Pre-provision profit(b)(a)
12,812 13,541 13,287 12,380 16,133 26,353 27,628 
Pre-provision profit(b)(a)
11,526 11,369 12,584 12,812 13,541 
Provision for credit lossesProvision for credit losses(2,285)(4,156)(1,889)611 10,473 (6,441)18,758 Provision for credit losses1,463 (1,288)(1,527)(2,285)(4,156)
Income before income tax expenseIncome before income tax expense15,097 17,697 15,176 11,769 5,660 32,794 8,870 Income before income tax expense10,063 12,657 14,111 15,097 17,697 
Income tax expense(a)
Income tax expense(a)
3,149 3,397 3,040 2,326 973 6,546 1,318 
Income tax expense(a)
1,781 2,258 2,424 3,149 3,397 
Net incomeNet income$11,948 $14,300 $12,136 $9,443 $4,687 $26,248 $7,552 Net income$8,282 $10,399 $11,687 $11,948 $14,300 
Earnings per share dataEarnings per share dataEarnings per share data
Net income: BasicNet income: Basic$3.79 $4.51 $3.80 $2.93 $1.39 $8.30 $2.17 Net income: Basic$2.64 $3.33 $3.74 $3.79 $4.51 
Diluted Diluted3.78 4.50 3.79 2.92 1.38 8.28 2.17  Diluted2.63 3.33 3.74 3.78 4.50 
Average shares: BasicAverage shares: Basic3,036.6 3,073.5 3,079.7 3,077.8 3,076.3 3,054.9 3,086.1 Average shares: Basic2,977.0 2,977.3 2,999.9 3,036.6 3,073.5 
Diluted Diluted3,041.9 3,078.9 3,085.1 3,082.8 3,081.0 3,060.3 3,090.8  Diluted2,981.0 2,981.8 3,005.1 3,041.9 3,078.9 
Market and per common share dataMarket and per common share dataMarket and per common share data
Market capitalizationMarket capitalization464,778 460,820 387,492 293,451 286,658 464,778 286,658 Market capitalization400,379 466,206 483,748 464,778 460,820 
Common shares at period-endCommon shares at period-end2,988.2 3,027.1 3,049.4 3,048.2 3,047.6 2,988.2 3,047.6 Common shares at period-end2,937.1 2,944.1 2,955.3 2,988.2 3,027.1 
Book value per shareBook value per share84.85 82.31 81.75 79.08 76.91 84.85 76.91 Book value per share86.16 88.07 86.36 84.85 82.31 
Tangible book value per share (“TBVPS”)(b)(a)
Tangible book value per share (“TBVPS”)(b)(a)
68.91 66.56 66.11 63.93 61.76 68.91 61.76 
Tangible book value per share (“TBVPS”)(b)(a)
69.58 71.53 69.87 68.91 66.56 
Cash dividends declared per shareCash dividends declared per share0.90 0.90 0.90 0.90 0.90 1.80 1.80 Cash dividends declared per share1.00 1.00 1.00 0.90 0.90 
Selected ratios and metricsSelected ratios and metricsSelected ratios and metrics
Return on common equity (“ROE”)(c)(b)
Return on common equity (“ROE”)(c)(b)
18 %23 %19 %15 %7 %21 %6 %
Return on common equity (“ROE”)(c)(b)
13 %16 %18 %18 %23 %
Return on tangible common equity (“ROTCE”)(c)(b)
Return on tangible common equity (“ROTCE”)(c)(b)
23 29 24 19 9 26 7 
Return on tangible common equity (“ROTCE”)(c)(b)
16 19 22 23 29 
Return on assets(c)(b)
Return on assets(c)(b)
1.29 1.61 1.42 1.14 0.58 1.44 0.50 
Return on assets(c)(b)
0.86 1.08 1.24 1.29 1.61 
Overhead ratioOverhead ratio58 58 55 58 51 58 55 Overhead ratio62 61 58 58 58 
Loans-to-deposits ratioLoans-to-deposits ratio45 44 47 49 52 45 52 Loans-to-deposits ratio42 44 43 45 44 
Firm Liquidity coverage ratio (“LCR”) (average)(d)
Firm Liquidity coverage ratio (“LCR”) (average)(d)
111 110 110 114 117 111 117 
Firm Liquidity coverage ratio (“LCR”) (average)(d)
110 111 112 111 110 
JPMorgan Chase Bank, N.A. LCR (average)(d)
JPMorgan Chase Bank, N.A. LCR (average)(d)
171 166 160 157 140 171 140 
JPMorgan Chase Bank, N.A. LCR (average)(d)
181 178 174 171 166 
Common equity Tier 1 (“CET1”) capital ratio(e)(c)
Common equity Tier 1 (“CET1”) capital ratio(e)(c)
13.0 13.1 13.1 13.1 12.4 13.0 12.4 
Common equity Tier 1 (“CET1”) capital ratio(e)(c)
11.9 13.1 12.9 13.0 13.1 
Tier 1 capital ratio(e)(c)
Tier 1 capital ratio(e)(c)
15.1 15.0 15.0 15.0 14.3 15.1 14.3 
Tier 1 capital ratio(e)(c)
13.7 15.0 15.0 15.1 15.0 
Total capital ratio(e)(c)
Total capital ratio(e)(c)
17.1 17.2 17.3 17.3 16.7 17.1 16.7 
Total capital ratio(e)(c)
15.4 16.8 16.9 17.1 17.2 
Tier 1 leverage ratio(e)(c)
Tier 1 leverage ratio(e)(c)
6.6 6.7 7.0 7.0 6.9 6.6 6.9 
Tier 1 leverage ratio(e)(c)
6.2 6.5 6.6 6.6 6.7 
Supplementary leverage ratio (“SLR”)(e)(c)
Supplementary leverage ratio (“SLR”)(e)(c)
5.4 6.7 6.9 7.0 6.8 5.4 6.8 
Supplementary leverage ratio (“SLR”)(e)(c)
5.2 5.4 5.5 5.4 6.7 
Selected balance sheet data (period-end)Selected balance sheet data (period-end)Selected balance sheet data (period-end)
Trading assetsTrading assets$520,588 $544,052 $503,126 $505,822 $491,716 $520,588 $491,716 Trading assets$511,528 $433,575 $515,901 $520,588 $544,052 
Investment securities, net of allowance for credit lossesInvestment securities, net of allowance for credit losses573,637 597,394 589,999 531,136 558,791 573,637 558,791 Investment securities, net of allowance for credit losses679,460 672,232 595,132 573,637 597,394 
LoansLoans1,040,954 1,011,307 1,012,853 989,740 1,009,382 1,040,954 1,009,382 Loans1,073,285 1,077,714 1,044,615 1,040,954 1,011,307 
Total assets(a)
Total assets(a)
3,684,256 3,689,336 3,384,757 3,245,061 3,212,643 3,684,256 3,212,643 
Total assets(a)
3,954,687 3,743,567 3,757,576 3,684,256 3,689,336 
DepositsDeposits2,305,217 2,278,112 2,144,257 2,001,416 1,931,029 2,305,217 1,931,029 Deposits2,561,207 2,462,303 2,402,353 2,305,217 2,278,112 
Long-term debtLong-term debt299,926 279,427 281,685 279,175 317,003 299,926 317,003 Long-term debt293,239 301,005 298,465 299,926 279,427 
Common stockholders’ equityCommon stockholders’ equity253,548 249,151 249,291 241,050 234,403 253,548 234,403 Common stockholders’ equity253,061 259,289 255,203 253,548 249,151 
Total stockholders’ equityTotal stockholders’ equity286,386 280,714 279,354 271,113 264,466 286,386 264,466 Total stockholders’ equity285,899 294,127 290,041 286,386 280,714 
HeadcountHeadcount260,110 259,350 255,351 256,358 256,710 260,110 256,710 Headcount273,948 271,025 265,790 260,110 259,350 
Credit quality metricsCredit quality metricsCredit quality metrics
Allowances for loan losses and lending-related commitmentsAllowances for loan losses and lending-related commitments$22,498 $25,517 $30,737 $33,637 $34,301 $22,498 $34,301 Allowances for loan losses and lending-related commitments$19,591 $18,689 $20,528 $22,585 $25,611 
Allowance for loan losses to total retained loansAllowance for loan losses to total retained loans2.02 %2.42 %2.95 %3.26 %3.27 %2.02 %3.27 %Allowance for loan losses to total retained loans1.69 %1.62 %1.86 %2.02 %2.42 %
Nonperforming assetsNonperforming assets$9,802 $10,257 $10,906 $11,462 $9,715 $9,802 $9,715 Nonperforming assets$8,605 $8,346 $8,882 $9,802 $10,257 
Net charge-offsNet charge-offs734 1,057 1,050 1,180 1,560 1,791 3,029 Net charge-offs582 550 524 734 1,057 
Net charge-off rateNet charge-off rate0.31 %0.45 %0.44 %0.49 %0.64 %0.38 %0.63 %Net charge-off rate0.24 %0.22 %0.21 %0.31 %0.45 %
(a)Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
(b)Pre-provision profit, TBVPS and ROTCE are each non-GAAP financial measures. Tangible common equity (“TCE”) is also a non-GAAP financial measure. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 19-2015-16 for a further discussion of these measures.
(c)(b)Quarterly ratios are based upon annualized amounts.
(d)For the six months ended June 30, 2021 and 2020, the percentage represents average LCR for the three months ended June 30, 2021 and 2020. Refer to Liquidity Risk Management on pages 51-55 for additional information on the LCR results.
(e)(c)The capital metrics reflect the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the Current Expected Credit Losses ("CECL") capital transition provisions that became effective inprovisions. For the first quarter of 2020. Theperiod ended March 31, 2021, the SLR prior to the periods ended June 30, 2021 reflectsreflected the temporary exclusions of U.S. Treasury securities and deposits at Federal Reserve Banks, which became effective April 1, 2020 and remained in effect through March 31, 2021.Banks. Refer to Capital Risk Management on pages 45-5035-40 of this Form 10-Q and pages 91-10186-96 of JPMorgan Chase’s 20202021 Form 10-K for additional information.
3

INTRODUCTION
The following is Management’s discussion and analysis of the financial condition and results of operations (“MD&A”) of JPMorgan Chase & Co. (“JPMorgan Chase” or the “Firm”) for the secondfirst quarter of 2021.2022.
This Quarterly Report on Form 10-Q for the secondfirst quarter of 20212022 (“Form 10-Q”) should be read together with JPMorgan Chase’s Annual Report on Form 10-K for the year ended December 31, 20202021 (“20202021 Form 10-K”). Refer to the Glossary of terms and acronyms and line of business (“LOB”) metrics on pages 181-189166-174 for definitions of terms and acronyms used throughout this Form 10-Q.
This Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-Q and are subject to significant risks and uncertainties. Refer to Forward-looking Statements on page 88 of this Form 10-Q, Part II, Item 1A, Risk Factors on pages 190-19179 of this Form 10-Q and Part I, Item 1A, Risk factors,Factors, on pages 8-329-33 of the 20202021 Form 10-K for a discussion of certain of those risks and uncertainties and the factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties.There is no assurance that actual results will be in line with any outlook information set forth herein, and the Firm does not undertake to update any forward-looking statements.
JPMorgan Chase & Co. (NYSE: JPM), a financial holding company incorporated under Delaware law in 1968, is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorgan Chase had $3.7$4.0 trillion in assets and $286.4$285.9 billion in stockholders’ equity as of June 30, 2021.March 31, 2022. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers predominantly in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally.
JPMorgan Chase’s principal bank subsidiary is JPMorgan Chase Bank, National Association (“JPMorgan Chase Bank, N.A.”), a national banking association with U.S. branches in 4348 states and Washington, D.C. as of June 30, 2021.March 31, 2022. JPMorgan Chase’s principal non-bank subsidiary is J.P. Morgan Securities LLC (“J.P. Morgan Securities”), a U.S. broker-dealer. The bank and non-bank subsidiaries of JPMorgan Chase operate nationally as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. The Firm’s principal operating subsidiarysubsidiaries outside the U.S. isare J.P. Morgan Securities plc a U.K.-based subsidiaryand J.P. Morgan SE ("JPMSE"), which are subsidiaries of JPMorgan Chase Bank, N.A. and are based in the United Kingdom ("U.K.") and Germany, respectively.
For management reporting purposes, the Firm’s activities are organized into four major reportable business segments, as well as a Corporate segment. The Firm’s consumer business segment is Consumer & Community Banking (“CCB”). The Firm’s wholesale business segments are the Corporate & Investment Bank (“CIB”), Commercial Banking (“CB”), and Asset & Wealth Management (“AWM”). Refer to Note 25 of this Form 10-Q and Note 32 of JPMorgan Chase’s 20202021 Form 10-K for a description of the Firm’s business segments and the products and services they provide to their respective client bases.
The Firm's website is www.jpmorganchase.com. JPMorgan Chase makes available on its website, free of charge, annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after it electronically files or furnishes such material to the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov. JPMorgan Chase makes new and important information about the Firm available on its website at https://www.jpmorganchase.com, including on the Investor Relations section of its website at https://www.jpmorganchase.com/ir. Information on the Firm's website is not incorporated by reference into this Form 10-Q or the Firm’s other filings with the SEC.
4

EXECUTIVE OVERVIEW
This executive overview of the MD&A highlights selected information and does not contain all of the information that is important to readers of this Form 10-Q. For a complete description of the trends and uncertainties, as well as the risks and critical accounting estimates affecting the Firm, and its various LOBs, this Form 10-Q and the 20202021 Form 10-K should be read together and in their entirety.
Financial performance of JPMorgan Chase
(unaudited)
As of or for the period ended,
(in millions, except per share data and ratios)
Three months ended June 30,Six months ended June 30,
20212020Change20212020Change
Selected income statement data
Total net revenue(a)
$30,479$33,075(8)%$62,745$61,3612 %
Total noninterest expense17,66716,9424 36,39233,7338 
Pre-provision profit12,81216,133(21)26,35327,628(5)
Provision for credit losses(2,285)10,473NM(6,441)18,758NM
Net income11,9484,687155 26,2487,552248 
Diluted earnings per share$3.78$1.38174 $8.28$2.17282 
Selected ratios and metrics
Return on common equity18%7%21%6%
Return on tangible common equity239267
Book value per share$84.85$76.9110 $84.85$76.9110 
Tangible book value per share68.9161.7612 68.9161.7612 
Capital ratios(b)
CET1 capital13.0%12.4%13.0%12.4%
Tier 1 capital15.114.315.114.3
Total capital17.116.717.116.7
Financial performance of JPMorgan Chase
(unaudited)
As of or for the period ended,
(in millions, except per share data and ratios)
Three months ended March 31,
20222021Change
Selected income statement data
Noninterest revenue$16,845$19,377(13)%
Net interest income13,87212,8898 
Total net revenue30,71732,266(5)
Total noninterest expense19,19118,7252 
Pre-provision profit11,52613,541(15)
Provision for credit losses1,463(4,156)NM
Net income8,28214,300(42)
Diluted earnings per share$2.63$4.50(42)
Selected ratios and metrics
Return on common equity13%23%
Return on tangible common equity1629
Book value per share$86.16$82.315 
Tangible book value per share69.5866.565 
Capital ratios(a)
CET1 capital11.9%13.1%
Tier 1 capital13.715.0
Total capital15.417.2
Memo:
NII excluding Markets(b)
$11,752 $10,775 9 %
NIR excluding Markets(b)
11,085 13,294 (17)
Markets(b)
8,753 9,050 (3)
Total net revenue - managed basis$31,590 $33,119 (5)
(a)Prior-period amount has been revised to conform with the current presentation. Refer to Note 1 for further information.
(b)The capital metrics reflect the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the CECL capital transition provisions that became effective inprovisions. For the first quarterperiod ended March 31, 2021, the SLR reflected the temporary exclusions of 2020.U.S. Treasury securities and deposits at Federal Reserve Banks. Refer to Capital Risk Management on pages 45-5035-40 of this Form 10-Q and pages 91-10186-96 of JPMorgan Chase’s 20202021 Form 10-K for additional information.
(b)NII and NIR refer to net interest income and noninterest revenue, respectively. Markets consists of CIB's Fixed Income Markets and Equity Markets businesses.
Comparisons noted in the sections below are for the secondfirst quarter of 20212022 versus the secondfirst quarter of 2020,2021, unless otherwise specified.
Firmwide overview
JPMorgan Chase reported net income of $11.9$8.3 billion for the secondfirst quarter of 2021,2022, or $3.78$2.63 per share, on net revenue of $30.5$30.7 billion. The Firm reported ROE of 18%13% and ROTCE of 23%16%. The Firm's results for the secondfirst quarter of 20212022 included a reduction in the allowance for credit losses of $3.0 billion compared to annet increase in the allowance for credit losses of $8.9 billion$902 million and a loss of $524 million in the prior year.Credit Adjustments & Other in CIB.
•NetThe Firm had net income was $11.9of $8.3 billion, up $7.3 billion.down 42%.
•Total net revenue was down 8%5%.
–Noninterest revenue was $17.7$16.8 billion, down 8%13%, driven by lower CIB Markets revenue, largely offset by higher Investment Banking fees, lower net production revenue in CIB, higher Card incomeHome Lending, and higher management feeslosses on legacy equity investments compared to gains in AWM.
–Thethe prior year included $678 million of mark-ups on held-for-sale positions in Corporate. The decrease also reflected the bridge financing portfolioloss in CIB and CB.Credit Adjustments & Other in CIB.
–Net interest income was $12.7$13.9 billion, downup 8%. Net interest income excluding Markets was $11.8 billion, up 9%, predominantly driven by CIB Marketsbalance sheet growth and higher rates, partially offset by lower loans in Card.NII from Paycheck Protection Program ("PPP") loans.

•Noninterest expense was $17.7$19.2 billion, up 4%2%, largelypredominantly driven by continued investments and structural expense across the LOBs, largely offset by lower volume- and revenue-related expense, including revenue-related compensation in CIB. The prior-year expense included a $550 million contribution to the business, including technology and front office hiring, as well as higher volume-related brokerage expense in CIB and distribution expense in AWM.Firm’s Foundation.
•The provision for credit losses was $1.5 billion, driven by;
–a net addition of $902 million to the allowance for credit losses, which largely reflects an increased weight placed on the adverse scenarios, from the more balanced weighting placed on the adverse and upside scenarios at December 31, 2021, due to the potential effects associated with higher inflation, changes in monetary policy, as well as geopolitical risks, including the war in Ukraine. The increase in the allowance also included client-specific Russia and Russia-associated downgrades in CIB and AWM, and
–$582 million of net charge-offs, down $475 million, driven by Card.
The prior year provision was a net benefit of $2.3$4.2 billion, driven byreflecting a net reductionsreduction in the allowance for credit losses of $3.0 billion, compared to an expense of $10.5 billion in the prior year predominantly driven by net additions to the allowance for credit losses of $8.9$5.2 billion.
•The total allowance for credit losses was $22.6$19.6 billion at June 30, 2021.March 31, 2022. The Firm had an allowance for loan losses to retained loans coverage ratio of 2.02%1.69%, compared with 2.42% in the first quarter of 2021, and 3.27% in the prior year; the decrease from the first quarter of 2021 was driven by net reductions in the allowance for loan losses due to improvements in the Firm's economic outlook.year.
•The Firm’s nonperforming assets totaled $9.8$8.6 billion at June 30, 2021, relatively flat versusMarch 31, 2022, a net decrease of $1.7 billion from the prior year. Nonperforming assets were down $455 million from March 31, 2021,year, driven by lower nonaccrual loans, in the consumer and wholesale portfolios, reflecting improved credit performance partiallyin consumer; and in wholesale, net portfolio activity as well as client-specific upgrades, largely offset by client-specific downgrades, including Russia and Russia-associated clients.
•Firmwide average loans of $1.1 trillion were up 5%, driven by higher derivative receivables.loans in AWM and CIB.
•Firmwide average deposits of $2.5 trillion were up 13%, reflecting inflows across the LOBs primarily driven by the ongoing effect of certain government actions. In CCB, the increase was also driven by growth from new and existing
5

•Firmwide average loans of $1.0 trillion were flat versus the prior year, as lower loans in CBaccounts across both consumer and CCB were offset by the net origination of Paycheck Protection Program ("PPP") loans, as well as growth in AWM and CIB.small business customers.
•Firmwide average deposits of $2.3 trillion were up 23%, reflecting significant inflows across the LOBs primarily driven by the effect of certain government actions in response to the COVID-19 pandemic.
•As of June 30, 2021, the Firm had average eligible High Quality Liquid Assets (“HQLA”) of approximately $717 billion and unencumbered marketable securities with a fair value of approximately $854 billion, resulting in approximately $1.6 trillion of liquidity sources. Refer to Liquidity Risk Management on pages 51-55 for additional information.

6

Selected capital-related metrics
•The Firm’s CET1 capital was $209$208 billion, and the Standardized and Advanced CET1 ratios were 13.0%11.9% and 13.8%12.7%, respectively.
•The Firm’s SLR was 5.4%5.2%.
•The Firm grew TBVPS, ending the secondfirst quarter of 20212022 at $68.91,$69.58, up 12%5% versus the prior year.
Pre-provision profit, ROTCE, TCE, TBVPS, NII and TBVPSNIR excluding Markets, and total net revenue on a managed basis are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 19-2015-16 for a further discussion of each of these measures.
Business segment highlights
Selected business metrics for each of the Firm’s four LOBs are presented below for the secondfirst quarter of 2021.2022.
CCB
ROE
44%23%
•Average deposits up 25%18%; client investment assets up 36%9%
•Average loans down 3%1% year-over-year ("YoY") and down 2% quarter-over-quarter ("QoQ"); debitCard net charge-off rate of 1.37%
•Debit and credit card sales volume(a) up 45%21%
•Active mobile customers(b) up 10%11%
CIB
ROE
23%17%
•#1 ranking for Global Investment Banking fees with 9.4%8.0% wallet share YTDin 1Q22
•Total Markets revenue of $6.8$8.8 billion, down 30%3%, with Fixed Income Markets down 44%1% and Equity Markets up 13%down 7%
CB
ROE
23%13%
•Gross Investment Banking revenue of $1.2 billion, up 37%$729 million, down 35%
•Average loans down 12%;up 2% YoY and up 2% QoQ; average deposits up 22%9%
AWM
ROE
32%23%
•Assets under management ("AUM")(AUM) of $3.0 trillion, up 21%4%
•Average loans up 21%;14% YoY and 3% QoQ; average deposits up 37%39%
(a)Excludes Commercial Card.
(b)Users of all mobile platforms who have logged in within the past 90 days.
Refer to the Business Segment Results on pages 21-4317-33 for a detailed discussion of results by business segment.

Credit provided and capital raised
JPMorgan Chase continues to support consumers, businesses and communities around the globe. The Firm provided new and renewed credit and raised capital for wholesale and consumer clients during the first sixthree months of 2021,2022, consisting of:
$1.7 trillion640 billion
Total credit provided and capital raised (including loans and commitments)(a)
$15169
billion		Credit for consumers
$108
billion		Credit for U.S. small businesses
$656265 billionCredit for corporations
$879282 billionCapital raised for corporate clients and non-U.S. government entities
$3216
 billion
Credit and capital raised for nonprofit and U.S. government entities(b)(a)
$11 billionLoans under the Small Business Administration’s Paycheck Protection
Program
(a)Excludes loans under the SBA’s PPP.
(b)Includes states, municipalities, hospitals and universities.

76

Recent events
•On June 28, 2021,May 2, 2022, JPMorgan Chase acquired Frosch Travel Group, LLC, a global travel management company.
•On April 13, 2022, JPMorgan Chase announced that its Board of Directors had authorized a new $30 billion common share repurchase program, effective May 1, 2022.
•On March 15, 2022, JPMorgan Chase announced that it had completed the Federal Reserve’s 2021 Comprehensive Capital Analysis and Review (“CCAR”) stress test process.
–The Firm’s 2021 indicative Stress Capital Buffer (“SCB”) requirement is 3.2% (down from the current 3.3%), which would result in a minimum Standardized CET1 capital ratio of 11.2% (down from the current 11.3%). The Federal Reserve Board will provide the Firm with its final SCB requirement by August 31, 2021, and that requirement will become effective on October 1, 2021, and will remain in effect until September 30, 2022.
–Additionally, the Firm's Board of Directors intends to increase the quarterly common stock dividend to $1.00 per share (up from the current $0.90 per share), effective in the third quarter of 2021.
•On May 18, 2021, JPMorgan Chase announced several senior management changes:
–Retirement of Gordon Smith at the end of the year, by which time Daniel Pinto, Co-President and COO and CEO of CIB, will become the Firm's sole President and COO
–Appointment of Marianne Lake, CEO of Consumer Lending, and Jennifer Piepszak, CFO of the Firm, as co-heads of CCB, reporting to Mr. Smith until his retirement at the end of 2021, and
–Appointment of Jeremy Barnum, head of Global Research in CIB, as successor to Ms. Piepszak as CFO of the Firm, and his appointment to the Operating Committee.
•Firm acquisitions and investments:
–On June 29, 2021, JPMorgan Chase announcedentered into an agreement to acquire OpenInvest,Global Shares, a cloud-based provider of values-based financial solutions, including tools for evaluating portfolios and reporting on their ESG impact.
–On June 28, 2021, JPMorgan Chase announced an agreement to take a 40% ownership stake in C6 Bank, a full-service Brazilian digital bank,share-based plan administration software, subject to regulatory approvals.
–On June 21, 2021, JPMorgan Chase announced an agreement to acquire Campbell Global, which performs global timberland investment and natural resource management.
–On June 17, 2021, JPMorgan Chase announced an agreement to acquire Nutmeg, a digital wealth manager based in the U.K., subject to regulatory approvals. The acquisition is part of the launching of Chase as a digital retail bank in the U.K. in the coming months.
Outlook
These current expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs and expectations of JPMorgan Chase’s management, speak only as of the date of this Form 10-Q, and are subject to significant risks and uncertainties. Refer to Forward-Looking Statements on page 8879 and Risk Factors on page 190 of this Form 10-Q and pages 8–32155 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion of certain of those risks and uncertainties and the other factors that could cause JPMorgan Chase’s actual results to differ materially because of those risks and uncertainties. There is no assurance that actual results will be in line with the outlook information set forth below, and the Firm does not undertake to update any forward-looking statements.
JPMorgan Chase’s current outlook for 20212022 should be viewed against the backdrop of the global and U.S. economies, the COVID-19 pandemic, 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 LOBs.Firm. The Firm will continue to make appropriate adjustments to its businesses and operations in response to ongoing developments in the business, economic, regulatory and legal environments in which it operates. The outlook information contained in this Form 10-Q supersedes all outlook information furnished by the Firm in its periodic reports filed with the SEC prior to the date of this Form 10-Q.
Full-year 20212022
•Management expects net interest income on a managed basis,excluding Markets to be approximately $52.5in excess of $53 billion, market dependent.
•Management expects adjusted expense to be approximately $71$77 billion, market dependent.
•Management expects the net charge-off ratewhich includes increased investments in Card to be less than 2.5%.technology, distribution and marketing, and higher structural expense.
Net interest income on a managed basis,excluding Markets and adjusted expense are non-GAAP financial measures. Refer to Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 19-2015-16.
87

Business Developments
COVID-19 PandemicWar in Ukraine
ThroughoutSince the COVID-19 pandemic,outbreak of the Firm has remained focused on serving itswar in Ukraine, the Firm’s business activities related to Russia have generally been limited to assisting clients customerswith fulfilling or terminating pre-existing obligations and communities,managing their Russia-associated risks, as well as providing payment services and acting as a custodian for global clients who hold Russia and Russia-associated financial instruments.
The Firm increased its allowance for credit losses in the well-beingfirst quarter due in part to client-specific Russia and Russia-associated downgrades. However, the Firm's exposure to Russia and Russia-associated clients and counterparties is not material to its financial condition or results of its employees.operations.
The Firm continues to actively monitorassess the health and safety situations at local and regional levels as moreongoing secondary impacts of the Firm'swar in Ukraine, including: increased market volatility, effects on global workforce returns toenergy and commodities markets, client demand for credit and liquidity, distress in certain industries or economic sectors, heightened counterparty credit risk, potential recessionary and inflationary pressures, impacts on global supply chains and government actions, including the office,imposition of financial and will adapt its plans as these situations evolve.economic sanctions.
Refer to Credit Portfolio on page 57 and page 113 of JPMorgan Chase's 2020 Form 10-K for further information on PPP; Consumer Credit portfolio on pages 58-62 and page 116 of JPMorgan Chase's 2020 Form 10-K, as well as Wholesale Credit Portfolio on pages 63-7254-62, Allowance for Credit Losses on pages 63-65, Market Risk Management on pages 67-71 and page 122Country Risk Management on pages 72-73 for additional information.
Complying with global sanctions
The Firm has engaged and continues to engage with government authorities, regulators, and industry groups in connection with analyzing and implementing procedures reasonably designed to comply with financial and economic sanctions imposed on Russia and Russia-associated entities and individuals by various governments around the world.
Managing key operational risks
The Firm faces increased operational risk in its efforts to comply with the various financial and economic sanctions that have been imposed as a result of JPMorgan Chase's 2020 Form 10-Kthe war in Ukraine, as the requirements are highly complex and continue to evolve.
The Firm is also focused on risks related to the increased potential for further information on retained loans under payment deferral.cyber attacks that may be conducted in retaliation for the sanctions imposed.
Refer to Regulatory Developments RelatingOperational Risk Management on page 74 for additional information.
Supporting employees
The Firm has provided additional benefits and support to employees who have been affected by the COVID-19 Pandemicwar.

Providing humanitarian assistance
In support of the relief efforts, the Firm has made a $10 million commitment to help address the Ukrainian humanitarian crisis.
Refer to Part I, Item 1A, Risk Factors, on pages 52-539-33 of the JPMorgan Chase’s 2020Chase's 2021 Form 10-K for a discussion of U.S. government actions impactingrisk factors affecting the Firm.
For purposes of this Form 10-Q, "Russia" refers to exposure to clients and counterparties of the Firm and U.S. government facilities and programs infor which the largest proportion of their assets is located, or the largest proportion of their revenue is derived, in Russia, based on the Firm’s internal country risk management framework; "Russia-associated" refers to exposure to clients and counterparties of the Firm has participated.with respect to which economic or financial sanctions relating to the war in Ukraine have been imposed or which have close association with Russia.
Interbank Offered Rate (“IBOR”) transition
On March 5, 2021,JPMorgan Chase and other market participants continue to make progress with respect to the Financial Conduct Authority confirmed thattransition from the use of the London Interbank Offered Rate ("LIBOR") and other IBORs to comply with the International Organization of Securities Commission's standards for transaction-based benchmark rates. The cessation of the publication of the principal tenors of the U.S. dollar London Interbank Offered Rate ("LIBOR")LIBOR (i.e., overnight, one-month, three-month, six-month and 12-month LIBOR) will cease immediately following a final publication onis scheduled for June 30, 2023. The scheduled cessation date for U.K. sterling, Japanese yen, Swiss franc and Euro LIBOR, and the one-week and two-month tenors of U.S. dollar LIBOR, remains December 31, 2021, and the Firm is prioritizing those currencies and tenors of LIBOR for contract remediation in 2021.
The Firm continues to make progress onengage with and support clients as they move to replacement rates. In connection with the transition, as of March 31, 2022 the Firm had remediated 96% of the notional amount of its initiativesbilateral derivatives contracts linked to mitigateU.S. dollar LIBOR by virtue of counterparty adherence to, or the riskscontracts otherwise being subject to, the Firm associatedInternational Swaps and Derivatives Association, Inc.'s ("ISDA") IBOR Fallbacks Protocol, and continues its client outreach with IBOR discontinuation. As part of the transition, therespect to U.S. dollar LIBOR-linked loans.
The Firm continues to engage with clients on contract remediation. The Firm also continues to monitor the transition relief being considered by the U.S. Treasury Department regarding the tax implications of reference rate reform.and evaluate client, industry, market, regulatory and legislative developments. Refer to Business Developments on page 51pages 50-51 of JPMorgan Chase's 20202021 Form 10-K for additional information.

98

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, March 31, 2022 and 2021, and 2020, unless otherwise specified. Factors that relate primarily to a single business segment are discussed in more detail within that business segment's results. Refer to pages 84-8675-77 of this Form 10-Q and pages 152-155150-153 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of the Critical Accounting Estimates Used by the Firm that affect the Consolidated Results of Operations.
Revenue
Three months ended June 30,Six months ended June 30,
(in millions)20212020Change20212020Change
Investment banking fees$3,470 $2,850 22 %$6,440 $4,716 37 %
Principal transactions4,076 7,621 (47)10,576 10,558 — 
Lending- and deposit-related fees1,760 1,431 23 3,447 3,137 10 
Asset management, administration and commissions5,194 4,266 22 10,223 8,806 16 
Investment securities gains/(losses)(155)26 NM(141)259 NM
Mortgage fees and related income551 917 (40)1,255 1,237 1 
Card income1,647 974 69 2,997 1,969 52 
Other income(a)(b)
1,195 1,137 5 2,318 2,387 (3)
Noninterest revenue17,738 19,222 (8)37,115 33,069 12 
Net interest income12,741 13,853 (8)25,630 28,292 (9)
Total net revenue$30,479 $33,075 (8)%$62,745 $61,361 2 %
Revenue
Three months ended March 31,
(in millions)20222021Change
Investment banking fees$2,008 $2,970 (32)%
Principal transactions5,105 6,500 (21)
Lending- and deposit-related fees1,839 1,687 9 
Asset management, administration and commissions5,362 5,029 7 
Investment securities gains/(losses)(394)14 NM
Mortgage fees and related income460 704 (35)
Card income975 1,350 (28)
Other income(a)
1,490 1,123 33 
Noninterest revenue16,845 19,377 (13)
Net interest income13,872 12,889 8 
Total net revenue$30,717 $32,266 (5)%
(a) Included operating lease income of $1.3$1.0 billion and $1.4$1.3 billion for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively and $2.6 billion and $2.8 billion for the six months ended June 30, 2021 and 2020, respectively.
(b) Prior-period amount has been revised to conform with the current presentation. Refer to Note 1 for further information.
Quarterly results
Investment banking fees increased across productsdecreased in CIB, reflecting:
•higher advisorylower equity underwriting fees primarily driven by lower issuance activity, particularly in North America and EMEA,
•due tolower debt underwriting fees predominantly driven by high-yield bonds as a higher numberresult of completed transactionsreduced issuances in a volatile market,
partially offset by
•higher debt underwritingadvisory fees driven by an active acquisition finance market, partially offset by lower investment grade bond fees, andbenefiting from the closing of deals announced in 2021.
•higher equity underwriting fees driven by an active IPO market, predominantly offset by lower fees from follow-on and convertible securities offerings.
Refer to CIBCIB segment results on pages 28-3322-26 and Note 5 for additional information.
Principal transactions revenuedecreased largely in CIB, primarily reflecting:
•a loss of $524 million in Credit Adjustments & Other, predominantly driven by funding spread widening, and credit valuation adjustments related to increases in commodities exposures and markdowns of derivative receivables from Russia-associated counterparties,
•lower revenue in Equity Markets, particularly in derivatives and Cash Equities, compared to a strong prior year, and
•lower revenue in Fixed Income Markets, across products comparedparticularly in Securitized Products largely due to a strong prior year,
partiallythe rising rate environment, which slowed down the pace of mortgage production, predominantly offset by
•higher revenue in EquityCurrencies & Emerging Markets driven by strong performanceon elevated client activity in prime brokerage.a volatile market.
The decrease in Principal transactions revenue also reflects the absence of two significant itemsnet losses on certain legacy private equity investments in Corporate, compared with net gains in the prior year: $678 million of mark-ups on held-for-sale positions in the bridge financing portfolio in CIB and CB, and a $510 million gain in CIB's Credit Adjustments & Other, both of which represent reversals of a portion of the losses that were recognized in the first quarter of 2020.year.
Principal transactions revenue in CIB may in certain cases have offsets across other revenue lines, including net interest income. The Firm assesses the performance of its CIB Markets business on a total revenue basis.
Refer to CIB and Corporate segment results on pages 28-3322-26 and pages 32-33, and Note 5 for additional information.
Lending- and deposit-related fees increased reflecting:as a result of:
•higher cash management fees and higher lending-related fees, particularly loan commitment fees, in CIB and CB driven by growth in transaction volume, and
•higher deposit-related fees in CCB, reflecting higher transaction activity.CCB.
Refer to CCB, CIB and CB segment results on pages 28-33, CB on19-21, pages 34-3722-26 and CCB on pages 23-27,27-28, respectively, and Note 5 for additional information.
Asset management, administration and commissions revenue increased predominantly driven by higher asset management fees in AWM as a result of by:
•higher average market levels and strong cumulative net inflows into long-term products, net of liquidity fee waivers,andas well as higher performance fees, in CCB related to the higher level of client investment assets on AWM, and
•higher net inflows and average market levels and net inflows. in CCB.
Refer to AWMCCB and CCBAWM segment results on pages 38-41, and19-21, pages 23-27,29-31, respectively, and Note 5 for additional information on asset management, administration and commissions revenue.information.

10

Investment securities gains/(losses) reflected net investment securities losses on sales of U.S. Treasuries and U.S. GSE and government agency MBS, compared with net gains in the impact ofprior year, associated with repositioning the investment securities portfolio.portfolios in both periods in Treasury and CIO. Refer to Corporate segment results on pages 42-4332-33 and Note 9 for additional information on investment securities gains/(losses).information.
Mortgage fees and related income decreased due to:
•to lower mortgage production revenue reflectingfrom lower production margins partiallyand volume, largely offset by higher volumes, and
•lower net mortgage servicing revenue reflecting a net losson an increase in MSR risk management results compared with a net gainprimarily driven by changes in the prior period.
prepayment expectations. Refer to CCB segment results on pages 23-27,19-21, Note 5 and 14 for additional information.
Card income increased as a result of decreased due to higher net interchange income and higher merchant processing fees, reflectingamortization related to new account origination costs in the second quarter of 2021, the acceleration of debit and credit card sales volume above pre-pandemic levels, and lower acquisition costs.Card. Refer to CCB, segmentCIB and CB segment results on pages 23-2719-21, pages 22-26 and pages 27-28, respectively, and Note 5 for additional information.
Other income increased reflecting:
•highernet gains on severalequity investments primarily in CIB,
predominantly•proceeds from an insurance settlement in Corporate, and
•the absence of weather-related write-downs recorded in the prior year on certain renewable energy investments in CIB,
partially offset by
•lower auto operating lease income in CCB as a result of thea decline in auto operating lease volume, in CCBand
•lower net investment valuation gains in AWM.

9

Net interest incomeincreased amortization on adriven by balance sheet growth and higher level of alternative energy investments in the tax-oriented investment portfolio in CIB. The increased amortization was more thanrates, partially offset by lower income tax expenseNII from the associated tax credits.
Net interest income decreased driven by lower Markets NII and lower loans in Card.PPP loans.
The Firm’s average interest-earning assets were $3.2$3.4 trillion, up $358$275 billion, predominantly driven by higher deposits with banks and investment securities, and the yield was 1.79%1.86%, down 521 basis pointspoint (“bps”bp”), primarily due to lower rates.. The net yield on these assets, on an FTE basis, was 1.62%1.67%, a decrease of 372 bps. The net yield excluding CIB Markets was 1.90%1.95%, down 37up 2 bps.
Net yield on an FTE basis, and net yield excluding CIB Markets areis a non-GAAP financial measures.measure. Refer to the Consolidated average balance sheets, interest and rates schedule on page 179165 for further details; and the Explanation and Reconciliation of the Firm’s Use of Non-GAAP Financial Measures on pages 19-2015-16 for a further discussion of Net interest yield excluding CIB Markets.

Year-to-date results
Investment banking fees increased across products in CIB, reflecting:
•higher equity underwriting fees driven by an active IPO market
•higher advisory fees driven by a higher number of completed transactions, and
•higher debt underwriting fees driven by an active acquisition finance market.
Principal transactions revenue was flat, primarily reflecting:
•higher revenue in CIB Equity Markets driven by strong performance across derivatives, prime brokerage, and Cash Equities
•higher net gains on certain legacy private equity investments in Corporate, and
•the absence of two significant items in the prior year: a $441 million net loss in CIB’s Credit Adjustments & Other, and $218 million of net markdowns on held-for-sale positions in the bridge financing portfolio in CIB and CB,
offset by
•lower revenue in CIB Fixed Income Markets, primarily driven by reductions in Rates and Currencies & Emerging Markets, compared to a strong prior year, partially offset by an increase in Securitized Products.
Lending- and deposit-related fees increased reflecting:
•higher cash management fees and higher lending-related fees, particularly loan commitment fees, in CIB and CB,
predominantly offset by
•lower overdraft fees in CCB.
Asset management, administration and commissions revenueincreased driven by higher asset management fees as a result of higher asset management fees in AWM as a result of strong cumulative net inflows into long-term and liquidity products and higher average market levels, net of liquidity fee waivers,and in CCB related to the higher level of client investment assets on higher average market levels and net inflows.
Investment securities gains/(losses)reflected the impact of repositioning the investment securities portfolio.
Mortgage fees and related income was relatively flat primarily reflecting higher mortgage production revenue, on higher production volumes, offset by lower net mortgage servicing revenue as a result of a higher net loss in MSR risk management results.
Card income increased as a result of higher net interchange income and higher merchant processing fees, reflecting in the first half of 2021, the acceleration of debit and credit card sales volume above pre-pandemic levels, and lower acquisition costs.

11

Other incomedecreased reflecting:
•increased amortization on a higher level of alternative energy investments in the tax-oriented investment portfolio in CIB. The increased amortization was more than offset by lower income tax expense from the associated tax credits. Additionally, the first quarter of 2021 included weather-related write-downs on certain renewable energy investments
•lower operating lease income as a result of the decline in auto operating lease volume in CCB, and
•lower gains on certain Corporate investments,
predominantly offset by
•gains on several investments compared with losses in the prior year, primarily in CIB and AWM.
Net interest income decreased predominantly driven by the impact of lower rates, partially offset by balance sheet growth.
The Firm’s average interest-earning assets were $3.2 trillion, up $509 billion, predominantly driven by higher deposits with banks and investment securities, and the yield was 1.83%, down 87 basis points (“bps”), primarily due to lower rates. The net yield on these assets, on an FTE basis, was 1.65%, a decrease of 52 bps. The net yield excluding CIB Markets was 1.92%, down 69 bps.
12

Provision for credit losses
Three months ended June 30,Six months ended June 30,
(in millions)20212020Change20212020Change
Consumer, excluding credit card$(808)$1,591 NM$(1,792)$2,210 NM
Credit card(1,045)4,028 NM(3,562)9,091 NM
Total consumer(1,853)5,619 NM(5,354)11,301 NM
Wholesale(425)4,850 NM(1,096)7,444 NM
Investment securities(7)4 NM9 13 NM
Total provision for credit losses$(2,285)$10,473 NM$(6,441)$18,758 NM
Quarterly results
Provision for credit losses
Three months ended March 31,
(in millions)20222021Change
Consumer, excluding credit card$173 $(984)NM
Credit card506 (2,517)NM
Total consumer679 (3,501)NM
Wholesale785 (671)NM
Investment securities(1)16 NM
Total provision for credit losses$1,463 $(4,156)NM
Theprovision for credit losses decreased driven by net reductions in the allowance for credit losses.
The decrease in consumer wasincreased driven by:
•a $2.6net addition of $902 million to the allowance for credit losses, consisting of $776 million in wholesale and $127 million in consumer. The addition largely reflects an increased weight placed on the adverse scenarios, from the more balanced weighting placed on the adverse and upside scenarios at December 31, 2021, due to the potential effects associated with higher inflation, changes in monetary policy, as well as geopolitical risks, including the war in Ukraine. The increase in the allowance also included client-specific Russia and Russia-associated downgrades in CIB and AWM,
partially offset by
•lower net charge-offs of $475 million driven by Card, as consumer cash balances remained elevated.
The prior year included a $5.2 billion net reduction in the allowance for credit losses, including $1.8 billion in Card reflecting improvements in the Firm's economic outlook; and $600 million in Home Lending primarily due to continued improvements in home price index ("HPI") expectations, andlosses.
•lower net charge-offs predominantly in Card, reflecting lower charge-offs and higher recoveries as consumer cash balances remained elevated benefiting from the ongoing impact of government stimulus and payment assistance programs;
•the prior year included a $4.4 billion addition to the allowance for credit losses.
The decrease in wholesale reflected a net reduction of $442 million in the allowance for credit losses across the LOBs, reflecting improvements in the Firm's economic outlook. The prior year included a $4.6 billion net addition to the allowance for credit losses.
Refer to CCBCCB segment results on pages 23-27,19-21, CIB on pages 28-33,22-26, CB on pages 34-37,27-28, AWM on pages 38-41,29-31, the Allowance for Credit Losses on pages 73-74,63-65, and Notes 9 and 12 for additional information on the credit portfolio and the allowance for credit losses.

Year-to-date results
The provision for credit losses decreased driven by net reductions in the allowance for credit losses.
The decrease in consumer was driven by:
•a $7.1 billion reduction in the allowance for credit losses, including $5.3 billion in Card reflecting improvements in the Firm's economic outlook, and $1.2 billion in Home Lending primarily due to continued improvements in HPI expectations, and
•lower net charge-offs predominantly in Card, reflecting lower charge-offs and higher recoveries as consumer cash balances remained elevated benefiting from the ongoing impact of government stimulus and payment assistance programs;
•the prior year included a $8.7 billion addition to the allowance for credit losses.
The decrease in wholesale reflects a net reduction of $1.1 billion in the allowance for credit losses across the LOBs, reflecting improvements in the Firm's economic outlook. The prior year included a $7.0 billion net addition to the allowance for credit losses.
1310

Noninterest expense
(in millions)Three months ended June 30,Six months ended June 30,
20212020Change20212020Change
Compensation expense$9,814 $9,509 3 %$20,415 $18,404 11 %
Noncompensation expense:
Occupancy1,090 1,080 1 2,205 2,146 3 
Technology, communications and equipment2,488 2,590 (4)5,007 5,168 (3)
Professional and outside services2,385 1,999 19 4,588 4,027 14 
Marketing626 481 30 1,377 1,281 7 
Other expense(a)(b)
1,264 1,283 (1)2,800 2,707 3 
Total noncompensation expense7,853 7,433 6 15,977 15,329 4 
Total noninterest expense$17,667 $16,942 4 %$36,392 $33,733 8 %
Noninterest expense
(in millions)Three months ended March 31,
20222021Change
Compensation expense$10,787 $10,601 2 %
Noncompensation expense:
Occupancy1,134 1,115 2 
Technology, communications and equipment(a)
2,360 2,519 (6)
Professional and outside services2,572 2,203 17 
Marketing920 751 23 
Other expense(b)
1,418 1,536 (8)
Total noncompensation expense8,404 8,124 3 
Total noninterest expense$19,191 $18,725 2 %
(a)Includes depreciation expense associated with auto operating lease assets.
(b)Included Firmwide legal expense of $185$119 million and $118$28 million for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $213 million and $315 million for the six months ended June 30, 2021 and 2020, respectively.
(b)Included FDIC-related expense of $177 million and $218 million for the three months ended June 30, 2021 and 2020, respectively, and $378 million and $317 million for the six months ended June 30, 2021 and 2020, respectively.
Quarterly results
Compensation expense increased largely driven by investments and higher structural expense across the impact of investments in the businesses. Performance-related compensation was relatively flat as the decline in CIB was offset in the other LOBs, and Corporate.
Noncompensation expenseincreased predominantly as a result of:
•higher volume-related brokerage expense in CIB and distribution expense in AWM
•higher legal expense in Corporate, and
•higher marketing expense in CCB primarily travel-related benefits and investments in marketing campaigns,
partially offset by
•lower volume-related expenserevenue-related compensation in CCB, reflecting lower depreciation from lower auto lease assets, and
•lower contribution expense in the second quarter of 2021 given the $550 million donation of equity investments to the Firm's Foundation in the first quarter of 2021.

Year-to-date results
Compensation expenseincreased predominantly driven by higher performance-related compensation, and the impact of investments in the LOBs.CIB.
Noncompensation expense increased as a result of:
•higher volume-related brokeragestructural expense, in CIB and distribution expense in AWM
•higher contribution expense, which included a $550 million donation of equity investments to the Firm's Foundation in the first quarter of 2021
•higher marketing expense in CCB primarily travel-related benefits and investments in marketing campaigns, andincluding professional fees,
•higher investments, including technology expense across the LOBs and marketing expense in CCB,
•higher brokerage expense in CIB, as well as other outside services expense, and
•higher legal expense predominantly in CIB,
partially offset by
•lower volume-relateddepreciation expense in CCB reflecting lower depreciation from thedue to lower auto lease assets and the impact of higher vehicle collateral values.
•lower other structural expense, particularly travel and entertainment, and
•lower legal expense.
Income tax expense
(in millions)Three months ended June 30,Six months ended June 30,
20212020Change20212020Change
Income before income tax expense$15,097 $5,660 167 %$32,794 $8,870 270 %
Income tax expense(a)
3,149 973 224 6,546 1,318 397 
Effective tax rate(a)
20.9 %17.2 %20.0 %14.9 %
(a)Prior-period amounts have been revisedThe prior year included a $550 million contribution to conform with the current presentation. Refer to Note 1 for further information.Firm's Foundation.

Quarterly results
Income tax expense
(in millions)Three months ended March 31,
20222021Change
Income before income tax expense$10,063 $17,697 (43)%
Income tax expense1,781 3,397 (48)
Effective tax rate17.7 %19.2 %

The effective tax rate increased predominantlydecreased driven by a higherthe lower level of pre-tax income and changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes, as well as the impact of tax reserve changes.
Year-to-date results
The effective tax rate increased driven by a higher level of pre-tax income and changes in the level and mix of income and expenses subject to U.S. federal, state and local taxes that also reducedincreased the relative net impact of certain tax benefits the resolution ofand expenses. The prior year included expenses related to tax audits, and tax reserve changes.audit settlements.



1411

CONSOLIDATED BALANCE SHEETS AND CASH FLOWS ANALYSIS
Consolidated balance sheets analysis
The following is a discussion of the significant changes between June 30, 2021,March 31, 2022, and December 31, 2020.2021.
Selected Consolidated balance sheets data
(in millions)June 30,
2021		December 31,
2020		Change
Assets
Cash and due from banks$26,592 $24,874 7 %
Deposits with banks678,829 502,735 35 
Federal funds sold and securities purchased under resale agreements260,987 296,284 (12)
Securities borrowed186,376 160,635 16 
Trading assets520,588 503,126 3 
Available-for-sale securities232,161 388,178 (40)
Held-to-maturity securities, net of allowance for credit losses341,476 201,821 69 
Investment securities, net of allowance for credit losses573,637 589,999 (3)
Loans1,040,954 1,012,853 3 
Allowance for loan losses(19,500)(28,328)(31)
Loans, net of allowance for loan losses1,021,454 984,525 4 
Accrued interest and accounts receivable125,253 90,503 38 
Premises and equipment26,631 27,109 (2)
Goodwill, MSRs and other intangible assets54,655 53,428 2 
Other assets(a)
209,254 151,539 38 
Total assets$3,684,256 $3,384,757 9 %
(a) Prior-period amount has been revised to conform with the current presentation. Refer to Note 1 for further information.
Selected Consolidated balance sheets data
(in millions)March 31,
2022		December 31,
2021		Change
Assets
Cash and due from banks$26,165 $26,438 (1)%
Deposits with banks728,367 714,396 2 
Federal funds sold and securities purchased under resale agreements301,875 261,698 15 
Securities borrowed224,852 206,071 9 
Trading assets511,528 433,575 18 
Available-for-sale securities312,875 308,525 1 
Held-to-maturity securities, net of allowance for credit losses366,585 363,707 1 
Investment securities, net of allowance for credit losses679,460 672,232 1 
Loans1,073,285 1,077,714 — 
Allowance for loan losses(17,192)(16,386)5 
Loans, net of allowance for loan losses1,056,093 1,061,328 — 
Accrued interest and accounts receivable152,207 102,570 48 
Premises and equipment26,916 27,070 (1)
Goodwill, MSRs and other intangible assets58,485 56,691 3 
Other assets188,739 181,498 4 
Total assets$3,954,687 $3,743,567 6 %
Cash and due from banks and deposits with banks increased primarily as a result of the continued growth in deposits and limited deployment opportunities in Treasury and CIO.deposits. Deposits with banks reflect the Firm’s placements of its excess cash with various central banks, including the Federal Reserve Banks.
Federal funds sold and securities purchased under resale agreements indecreasedcreased driven by:by Markets, reflecting:
•lower deployment of funds in Treasury and CIO, and lower client-driven market-making activities in CIB,
partially offset by
•higher demand for securities to cover short positions, in CIB.
Refer to Liquidity Risk Management on pages 51-55•higher collateral requirements, and Note 10 for additional information.
•the impact of client-driven market-making activities.
Securities borrowed increased driven by CIB reflectingMarkets, resulting from higher client-driven activities in Fixed Income Markets, and an increase in the demand for securities to cover short positions in Equity Markets.. Refer to Liquidity Risk Management on pages 51-55 and Note 10 for additional information.information on securities purchased under resale agreements and securities borrowed.
Trading assets increased reflecting;driven by Markets, due to:
•stronghigher securities related to client-driven market-making activities, in equity instruments, largely in prime brokerage,
partially offset by
•lower debt instruments, in CIB Fixed Income Markets, and
•lower deploymenthigher derivative receivables, largely commodities, predominantly oil and gas, as a result of funds in Treasury and CIO.market movements.
Refer to Notes 2 and 4 for additional information.

Investment securities decreased due toincreased resulting from net purchases of securities, largely offset by paydowns, and net sales in available-for-sale ("AFS"), partially offset by the net impact of purchases and paydowns in held-to-maturity.unrealized losses on AFS securities of $104.5 billion were transferred to the HTM portfolio for capital management purposes.which are recognized in accumulated other comprehensive income ("AOCI"). Refer to Corporate segment results on pages 42-43,32-33, Investment Portfolio Risk Management on page 75,66, and Notes 2 and 9 for additional information.

Loans increased, reflectingwere relatively flat:, and reflected:
•lower residential real estate loans at fair value in Home Lending as sales outpaced originations due to higher secured lending in CIB Markets;interest rates, and
•a decline in AWM higherdue to paydowns and lower securities-based and custom lending, as well as mortgages,
partially offset by
•lowerhigher wholesale loans in CCBCB and CB, which included the impact of PPP forgiveness.CIB.
The allowance for loan losses decreased,increased as a result of a net addition of $806 million to the allowance for credit losses, consisting of:
•of $677 million in a $7.0 billion reductionwholesale and $129 million in consumer predominantly. The addition largely reflects an increased weight placed on the adverse scenarios, from the more balanced weighting placed on the adverse and upside scenarios at December 31, 2021, due to the potential effects associated with higher inflation, changes in monetary policy, as well as geopolitical risks, including the war in Ukraine. The increase in the credit card portfolio, reflecting improvementsallowance also included client-specific Russia and Russia-associated downgrades in the Firm's economic outlook;CIB and in the residential real estate portfolio, primarily due to continued improvements in HPI expectations,and
•a $1.8 billion net reduction in wholesale, across the LOBs, reflecting improvements in the Firm's economic outlook.AWM.
There was a $589$97 million net addition to the allowance for lending-related commitments, driven by wholesale.commitments. This allowance is included in other liabilities on the consolidatedConsolidated balance sheets. The total net reduction to the allowance for credit losses was $8.2 billion, as of June 30, 2021.
Refer to Credit and Investment Risk Management on pages 56-75,46-66, and Notes 2, 3, 11 and 12 for a more detailed discussion of loans and the allowance for loan losses.

1512

Accrued interest and accounts receivable increased predominantly due to higher client receivables related to client-driven activities in CIB Markets, including prime brokerage.brokerage, during a period of heightened market volatility.
Goodwill, MSRs and other intangibles increased, reflecting higher MSRs driven by higher MSRs as a result of net additions,purchases and originations, as well as lower prepayment speeds on higherthe impact of changes in market interest rates. Refer to Note 14 for additional information.
Other assets increased predominantly due to the impact of securities financing transactions in CIB prime brokerage, as well as higher cash collateral placed with central counterparties ("CCPs"). Refer to Note 10 for additional information on securities financing transactions.

Selected Consolidated balance sheets data (continued)
(in millions)June 30,
2021		December 31,
2020		Change
Liabilities
Deposits$2,305,217 $2,144,257 8 %
Federal funds purchased and securities loaned or sold under repurchase agreements245,437 215,209 14 
Short-term borrowings51,938 45,208 15 
Trading liabilities183,867 170,181 8 
Accounts payable and other liabilities(a)
297,082 231,285 28 
Beneficial interests issued by consolidated variable interest entities (“VIEs”)14,403 17,578 (18)
Long-term debt299,926 281,685 6 
Total liabilities3,397,870 3,105,403 9 
Stockholders’ equity286,386 279,354 3 
Total liabilities and stockholders’ equity$3,684,256 $3,384,757 9 %
(a) Prior-period amount has been revised to conform with the current presentation. Refer to Note 1 for further information.
Selected Consolidated balance sheets data (continued)
(in millions)March 31,
2022		December 31,
2021		Change
Liabilities
Deposits$2,561,207 $2,462,303 4 %
Federal funds purchased and securities loaned or sold under repurchase agreements223,858 194,340 15 
Short-term borrowings57,586 53,594 7 
Trading liabilities202,083 164,693 23 
Accounts payable and other liabilities320,671 262,755 22 
Beneficial interests issued by consolidated variable interest entities (“VIEs”)10,144 10,750 (6)
Long-term debt293,239 301,005 (3)
Total liabilities3,668,788 3,449,440 6 
Stockholders’ equity285,899 294,127 (3)
Total liabilities and stockholders’ equity$3,954,687 $3,743,567 6 %
Deposits increased across the LOBsin CIB, CCB and AWM, driven by:
•higher deposits in CIB's Payments and Securities Services primarily driven by the effect of certain government actionsclient activities, and
•growth in response to the COVID 19 pandemic. Innew and existing accounts in CCB the increase was also driven by growth from existing and new accounts across both consumer and small business customers. customers,
partially offset by
•a decline in CB, principally due to seasonality.
Refer to Liquidity Risk Management on pages 51-5541-45 and Notes 2 and 15 for additional information.
Federal funds purchased and securities loaned or sold under repurchase agreements increased reflecting:
•increased due to the impact of client activities and higher secured financing of trading assets in CIB,
partially offset by
•Markets. lower secured financing of AFS investment securities in Treasury and CIO.
Refer to Liquidity Risk Management on pages 51-5541-45 and Note 10 for additional information.
Short-term borrowings increased predominantly as a result of higher financingnet issuance of prime brokerage activities commercial paper primarily for short-term liquidity management in CIB.Treasury and CIO. Refer to pages 51-55 for information on changes in Liquidity Risk Management.Management on pages 41-45 for additional information.
Trading liabilities increased due to client-driven market-making activities in CIB Fixed Income Markets, which resulted in higher levels of short positions in debt instruments, partially offset by loweras well as higher derivative payables primarily as a result ofassociated with market movements. Refer to Notes 2 and 4 for additional information.

Accounts payable and other liabilities increased predominantly due to the impact of securities financing transactions andreflecting higher client payables related to client-driven activities bothprimarily in CIBMarkets, including prime brokerage.brokerage, during a period of heightened market volatility. Refer to Note 10 for additional information on securities financing transactions.
Beneficial interests issued by consolidated VIEs decreased predominantly driven by maturities of credit card securitizations in Treasury and CIO.CIO. Refer to Off-Balance Sheet ArrangementsLiquidity Risk Management on page 18 pages 41-45 and Notes 13 and 22 for additional information on Firm-sponsored VIEs and loan securitization trusts.
Long-term debt increaseddecreased driven by net issuances, partially offset byfair value hedge accounting adjustments related to higher rates.rates, partially offset bynet issuances in Treasury and CIO, as well as a decline in the fair value of structured notes in CIB. Refer to Liquidity Risk Management on pages 51-5541-45 for additional information.
Stockholders’ equity increased reflectingdecreased as a result of a net income, partially offset by the impact of capital actions, and the decrease in accumulated other comprehensive income (“AOCI”). The decreaseunrealized loss in AOCI, which was primarily driven by the impact of higher rates on the AFS securities portfolio and cash flow hedges.hedges in Treasury and CIO. Refer to page 9283 for information on changes in stockholders’ equity, Capital actions on pages 48-49,page 39, and Note 19 for additional information on AOCI.information.

1613

Consolidated cash flows analysis
The following is a discussion of cash flow activities during the sixthree months ended June 30, 2021March 31, 2022 and 2020.2021.
(in millions)(in millions)Six months ended June 30,(in millions)Three months ended March 31,
20212020(in millions)20222021
Net cash provided by/(used in)Net cash provided by/(used in)
Operating activitiesOperating activities$(30,342)$(37,170)Operating activities$(41,917)$(43,872)
Investing activitiesInvesting activities33,089 (183,479)Investing activities(72,608)15,391 
Financing activitiesFinancing activities180,968 451,436 Financing activities132,772 218,911 
Effect of exchange rate changes on cashEffect of exchange rate changes on cash(5,903)(689)Effect of exchange rate changes on cash(4,549)(6,967)
Net increase in cash and due from banks and deposits with banksNet increase in cash and due from banks and deposits with banks$177,812 $230,098 Net increase in cash and due from banks and deposits with banks$13,698 $183,463 
Operating activities
•In 2022, cash used resulted from higher trading assets, and accrued interest and accounts receivable, largely offset by higher accounts payable and other liabilities and trading liabilities.
•In 2021, cash used resulted from higher trading assets, accrued interest and accounts receivable, and securities borrowed, partially offset by higher accounts payable and other liabilities.liabilities and lower other assets.
Investing activities
•In 2020,2022, cash used resulted from higher trading assetssecurities purchased under resale agreements, net purchases of investment securities, and other assets, largely offset by higher trading liabilities and accounts payable and other liabilities.net originations of loans.
Investing activities
•In 2021, cash provided reflected lower securities purchased under resale agreements and net proceeds from sales and securitizations of loans held-for-investment, partially offset by net originations of loans.
•In 2020, cash used was driven by net purchases of investment securities and net loan originations.

securities.
Financing activities
•In 2021,2022, cash provided reflected higher deposits and securities loaned or sold under repurchase agreements, and net proceeds from long- and short-term borrowings.
•In 2020,2021, cash provided reflected higher deposits and securities loaned or sold under repurchase agreements, and net proceeds from long- and short-term borrowings.
•For both periods, cash was used for repurchases of common stock and cash dividends on common and preferred stock.
* * *
Refer to Consolidated Balance Sheets Analysis on pages 15-16,12-13, Capital Risk Management on pages 45-50,35-40, and Liquidity Risk Management on pages 51-5541-45 of this Form 10-Q, and pages 102–10897-104 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion of the activities affecting the Firm’s cash flows.
17

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 as off-balance sheet under accounting principles generally accepted in the U.S. (“U.S. GAAP”).
Special-purpose entities
The Firm has 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 appropriate, against all SPE-related transactions and related exposures, such as derivative contracts 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.
The table below provides an index of where in this Form 10-Q discussions of the Firm’s various off-balance sheet arrangements can be found. Refer to Note 1 for additional 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 13152-157
Off-balance sheet lending-related financial instruments, guarantees, and other commitmentsRefer to Note 22168-171


1814

EXPLANATION AND RECONCILIATION OF THE FIRM’S USE OF NON-GAAP FINANCIAL MEASURES
The Firm prepares its Consolidated Financial Statements in accordance with U.S. GAAP and this presentation is referred to as “reported” basis; these financial statements appear on pages 89-93.80-84.
In addition to analyzing the Firm’s results on a reported basis, the Firm also reviews and uses certain non-GAAP financial measures at the Firmwide and segment level. These non-GAAP measures include:
•Firmwide “managed” basis results, including the overhead ratio, which include certain reclassifications to present total net revenue from investments that receive tax credits and tax-exempt securities on a basis comparable to taxable investments and securities (“FTE” basis);
•Pre-provision profit, which represents total net revenue less total noninterest expenseexpense;
•Net interest income, and net yield, and noninterest revenue excluding CIB MarketsMarkets;
•TCE, ROTCE, and TBVPSTBVPS;
•Adjusted expense, which represents noninterest expense excluding Firmwide legal expenseexpense; and
•Allowance for loan losses to period-end loans retained, excluding trade finance and conduits.
Refer to Explanation and Reconciliation of the Firm’s Use Of Non-GAAP Financial Measures and Key Performance Measures on pages 62–6458-60 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion of management’s use of non-GAAP financial measures.
The following summary tables provide a reconciliation from the Firm’s reported U.S. GAAP results to managed basis.
Three months ended June 30,
20212020
(in millions, except ratios)Reported
Fully taxable-equivalent adjustments(b)
Managed
basis		Reported
Fully taxable-equivalent adjustments(b)
Managed
basis
Other income(a)
$1,195 $807 $2,002 $1,137 $635 $1,772 
Total noninterest revenue17,738 807 18,545 19,222 635 19,857 
Net interest income12,741 109 12,850 13,853 107 13,960 
Total net revenue30,479 916 31,395 33,075 742 33,817 
Total noninterest expense17,667 NA17,667 16,942 NA16,942 
Pre-provision profit12,812 916 13,728 16,133 742 16,875 
Provision for credit losses(2,285)NA(2,285)10,473 NA10,473 
Income before income tax expense15,097 916 16,013 5,660 742 6,402 
Income tax expense(a)
3,149 916 4,065 973 742 1,715 
Net income$11,948 NA$11,948 $4,687 NA$4,687 
Overhead ratio(a)
58 %NM56 %51 %NM50 %
Six months ended June 30,Three months ended March 31,
2021202020222021
(in millions, except ratios)(in millions, except ratios)Reported
Fully taxable-equivalent adjustments(b)
Managed
basis		Reported
Fully taxable-equivalent adjustments(b)
Managed
basis		(in millions, except ratios)Reported
Fully taxable-equivalent adjustments(a)
Managed
basis		Reported
Fully taxable-equivalent adjustments(a)
Managed
basis
Other income(a)
Other income(a)
$2,318 $1,551 $3,869 $2,387 $1,249 $3,636 
Other income(a)
$1,490 $775 $2,265 $1,123 $744 $1,867 
Total noninterest revenueTotal noninterest revenue37,115 1,551 38,666 33,069 1,249 34,318 Total noninterest revenue16,845 775 17,620 19,377 744 20,121 
Net interest incomeNet interest income25,630 218 25,848 28,292 217 28,509 Net interest income13,872 98 13,970 12,889 109 12,998 
Total net revenueTotal net revenue62,745 1,769 64,514 61,361 1,466 62,827 Total net revenue30,717 873 31,590 32,266 853 33,119 
Total noninterest expenseTotal noninterest expense36,392 NA36,392 33,733 NA33,733 Total noninterest expense19,191 NA19,191 18,725 NA18,725 
Pre-provision profitPre-provision profit26,353 1,769 28,122 27,628 1,466 29,094 Pre-provision profit11,526 873 12,399 13,541 853 14,394 
Provision for credit lossesProvision for credit losses(6,441)NA(6,441)18,758 NA18,758 Provision for credit losses1,463 NA1,463 (4,156)NA(4,156)
Income before income tax expenseIncome before income tax expense32,794 1,769 34,563 8,870 1,466 10,336 Income before income tax expense10,063 873 10,936 17,697 853 18,550 
Income tax expense(a)
Income tax expense(a)
6,546 1,769 8,315 1,318 1,466 2,784 
Income tax expense(a)
1,781 873 2,654 3,397 853 4,250 
Net incomeNet income$26,248 NA$26,248 $7,552 NA$7,552 Net income$8,282 NA$8,282 $14,300 NA$14,300 
Overhead ratio(a)
Overhead ratio(a)
58 %NM56 %55 %NM54 %
Overhead ratio(a)
62 %NM61 %58 %NM57 %
(a)Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
(b)Predominantly recognized in CIB, CB and Corporate.













1915

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

(in millions, except rates)		Three months ended June 30,Six months ended June 30,
20212020Change20212020Change
Net interest income – reported$12,741 $13,853 (8)%$25,630 $28,292 (9)%
Fully taxable-equivalent adjustments109 107 2 218 217 — 
Net interest income – managed basis(a)
$12,850 $13,960 (8)$25,848 $28,509 (9)
Less: CIB Markets net interest income(b)
1,987 2,536 (22)4,210 4,132 2 
Net interest income excluding CIB Markets(a)
$10,863 $11,424 (5)$21,638 $24,377 (11)
Average interest-earning assets$3,177,195 $2,819,689 13 $3,152,022 $2,642,619 19 
Less: Average CIB Markets interest-earning assets(b)
882,848 795,511 11 874,764 765,681 14 
Average interest-earning assets excluding CIB Markets$2,294,347 $2,024,178 13 %$2,277,258 $1,876,938 21 %
Net yield on average interest-earning assets – managed basis1.62 %1.99 %1.65 %2.17 %
Net yield on average CIB Markets interest-earning assets(b)
0.90 1.28 0.97 1.09 
Net yield on average interest-earning assets excluding CIB Markets1.90 %2.27 %1.92 %2.61 %

(in millions, except rates)		Three months ended March 31,
20222021Change
Net interest income – reported$13,872 $12,889 8 %
Fully taxable-equivalent adjustments98 109 (10)
Net interest income – managed basis(a)
$13,970 $12,998 7 
Less: Markets net interest income(b)
2,218 2,223 — 
Net interest income excluding Markets(a)
$11,752 $10,775 9 
Average interest-earning assets$3,401,951 $3,126,569 9 
Less: Average Markets interest-earning assets(b)
963,845 866,591 11 
Average interest-earning assets excluding Markets$2,438,106 $2,259,978 8 %
Net yield on average interest-earning assets – managed basis1.67 %1.69 %
Net yield on average Markets interest-earning assets(b)
0.93 1.04 
Net yield on average interest-earning assets excluding Markets1.95 %1.93 %
Noninterest revenue – reported$16,845 $19,377 (13)%
Fully taxable-equivalent adjustments775 744 4 
Noninterest revenue – managed basis$17,620 $20,121 (12)
Less: Markets noninterest revenue(b)
6,535 6,827 (4)
Noninterest revenue excluding Markets$11,085 $13,294 (17)
Memo: Total Markets net revenue(b)
$8,753 $9,050 (3)
(a)Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
(b)Refer to page 3225 for further information on CIB Markets.
The following summary table provides a reconciliation from the Firm’s common stockholders’ equity to TCE.
Period-endAveragePeriod-endAverage
(in millions, except per share and ratio data)(in millions, except per share and ratio data)Jun 30,
2021		Dec 31,
2020		Three months ended June 30,Six months ended June 30,(in millions, except per share and ratio data)Mar 31,
2022		Dec 31,
2021		Three months ended March 31,
202120202021202020222021
Common stockholders’ equityCommon stockholders’ equity$253,548 $249,291 $250,849 $234,408 $248,209 $234,469 Common stockholders’ equity$253,061 $259,289 $252,506 $245,542 
Less: GoodwillLess: Goodwill49,256 49,248 49,260 47,805 49,254 47,808 Less: Goodwill50,298 50,315 50,307 49,249 
Less: Other intangible assetsLess: Other intangible assets850 904 864 791 877 802 Less: Other intangible assets893 882 896 891 
Add: Certain deferred tax liabilities(a)
Add: Certain deferred tax liabilities(a)
2,461 2,453 2,459 2,393 2,457 2,388 
Add: Certain deferred tax liabilities(a)
2,496 2,499 2,498 2,455 
Tangible common equityTangible common equity$205,903 $201,592 $203,184 $188,205 $200,535 $188,247 Tangible common equity$204,366 $210,591 $203,801 $197,857 
Return on tangible common equityReturn on tangible common equityNANA23 %9 %26 %7 %Return on tangible common equityNANA16 %29 %
Tangible book value per shareTangible book value per share$68.91 $66.11 NANAN/AN/ATangible book value per share$69.58 $71.53 NANA
(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.
2016

BUSINESS SEGMENT RESULTS
The Firm is managed on an LOB basis. There are four major reportable business segments – Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. In addition, there is a Corporate segment.
The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by the Firm’s Operating Committee. Segment results are presented on a managed basis. Refer to Explanation and Reconciliation of the Firm’s use of Non-GAAP Financial Measures on pages 19-2015-16 for a definition of managed basis.
Description of business segment reporting methodology
Results of the business segments are intended to present each segment as if it were a stand-alone business. The management reporting process that derives business segment results includes the allocation of certain income and expense items. The Firm periodically assesses the assumptions, methodologies and reporting classifications used for segment reporting, and further refinements may be implemented in future periods. The Firm also assesses the level of capital required for each LOB on at least an annual basis. The Firm’s LOBs also provide various business metrics which are utilized by the Firm and its investors and analysts in assessing performance.
Revenue sharing
When business segments join efforts to sell products and services to the Firm’s clients, the participating business segments may agree to share revenue from those transactions. Revenue is generally recognized in the segment responsible for the related product or service, with allocations to the other segment(s) involved in the transaction. The segment results reflect these revenue-sharing agreements.
Funds transfer pricing
Funds transfer pricing ("FTP") is the process by which the Firm allocates interest income and expense to each business segment and transfers the primary interest rate risk and liquidity risk to Treasury and CIO within Corporate.
The funds transfer pricing process considers the interest rate risk and liquidity risk characteristics of assets and liabilities and off-balance sheet products. Periodically the methodology and assumptions utilized in the FTP process are adjusted to reflect economic conditions and other factors, which may impact the allocation of net interest income to the business segments.
Capital allocation
The amount of capital assigned to each segment is referred to as equity. Periodically, the assumptions and methodologies used to allocate capital are reassessed and as a result, the capital allocated to the LOBs may change. Refer to Line of business equity on page 48,38, and page 9893 of JPMorgan Chase’s 20202021 Form 10-K for additional information on capital allocation.
Refer to Business Segment Results – Description of business segment reporting methodology on pages 65–6661-62 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion of those methodologies.

2117

Segment results – managed basis
The following tables summarize the Firm’s results by segment for the periods indicated.
Three months ended June 30,Consumer & Community BankingCorporate & Investment BankCommercial Banking
Three months ended March 31,Three months ended March 31,Consumer & Community BankingCorporate & Investment BankCommercial Banking
(in millions, except ratios)(in millions, except ratios)20212020Change20212020Change20212020Change(in millions, except ratios)20222021Change20222021Change20222021Change
Total net revenueTotal net revenue$12,760 $12,3583%$13,214 $16,383(19)%$2,483 $2,4003%Total net revenue$12,229 $12,517(2)%$13,529 $14,605(7)%$2,398 $2,393—%
Total noninterest expenseTotal noninterest expense7,062 6,76746,523 6,812(4)981 89310Total noninterest expense7,720 7,20277,298 7,10431,129 96917
Pre-provision profit/(loss)Pre-provision profit/(loss)5,698 5,59126,691 9,571(30)1,502 1,507—Pre-provision profit/(loss)4,509 5,315(15)6,231 7,501(17)1,269 1,424(11)
Provision for credit lossesProvision for credit losses(1,868)5,828NM(79)1,987NM(377)2,431NMProvision for credit losses678 (3,602)NM445 (331)NM157 (118)NM
Net income/(loss)Net income/(loss)5,634 (176)NM4,985 5,451(9)1,420 (681)NMNet income/(loss)2,895 6,787(a)(57)4,385 5,924(a)(26)850 1,181(a)(28)
Return on equity (“ROE”)Return on equity (“ROE”)44%(2)%23 %27%23 %(13)%Return on equity (“ROE”)23%54%

17 %28%(a)13 %19%
Three months ended June 30,Asset & Wealth ManagementCorporateTotal
Three months ended March 31,Three months ended March 31,Asset & Wealth ManagementCorporateTotal
(in millions, except ratios)(in millions, except ratios)20212020Change20212020Change20212020Change(in millions, except ratios)20222021Change20222021Change20222021Change
Total net revenueTotal net revenue$4,107 $3,43020%$(1,169)$(754)(55)%$31,395 $33,817(7)%Total net revenue$4,315 $4,0776%$(881)$(473)(86)%$31,590 $33,119(5)%
Total noninterest expenseTotal noninterest expense2,586 2,32311515 14725017,667 16,9424Total noninterest expense2,860 2,57411184 876(79)19,191 18,7252
Pre-provision profit/(loss)Pre-provision profit/(loss)1,521 1,10737(1,684)(901)(87)13,728 16,875(19)Pre-provision profit/(loss)1,455 1,503(3)(1,065)(1,349)2112,399 14,394(14)
Provision for credit lossesProvision for credit losses(10)223NM49 4NM(2,285)10,473NMProvision for credit losses154 (121)NM29 16811,463 (4,156)NM
Net income/(loss)Net income/(loss)1,153 66174(1,244)(568)(119)11,948 4,687155Net income/(loss)1,008 1,260(a)(20)(856)(852)(a)—8,282 14,300(42)
ROEROE32 %24%NMNM18 %7%ROE23 %36%(a)NMNM13 %23%
Six months ended June 30,Consumer & Community BankingCorporate & Investment BankCommercial Banking
(in millions, except ratios)20212020Change20212020Change20212020Change
Total net revenue$25,277 $25,645(1)%$27,819 $26,3865%$4,876 $4,5657%
Total noninterest expense14,264 14,036213,627 12,76771,950 1,8794
Pre-provision profit/(loss)11,013 11,609(5)14,192 13,61942,926 2,6869
Provision for credit losses(5,470)11,600NM(410)3,388NM(495)3,441NM
Net income/(loss)12,362 21NM10,725 7,436442,588 (542)NM
ROE49%(1)%25%18%21 %(6)%
(a)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.
Six months ended June 30,Asset & Wealth ManagementCorporateTotal
(in millions, except ratios)20212020Change20212020Change20212020Change
Total net revenue$8,184 $6,81920%$(1,642)$(588)(179)%$64,514 $62,8273%
Total noninterest expense5,160 4,75881,391 29337536,392 33,7338
Pre-provision profit/(loss)3,024 2,06147(3,033)(881)(244)28,122 29,094(3)
Provision for credit losses(131)317NM65 12442(6,441)18,758NM
Net income/(loss)2,397 1,33080(1,824)(693)(163)26,248 7,552248
ROE34 %25%NMNM21 %6%

The following sections provide a comparative discussion of the Firm’s results by segment as of or for the three and six months ended June 30, 2021March 31, 2022 versus the corresponding periodsperiod in the prior year, unless otherwise specified.
2218

CONSUMER & COMMUNITY BANKING
Refer to pages 67–7063-66 of JPMorgan Chase's 20202021 Form 10-K and Line of Business Metrics on page 187172 for a further discussion of the business profile of CCB.
Selected income statement data
Three months ended June 30,Six months ended June 30,
(in millions, except ratios)20212020Change20212020Change
Revenue
Lending- and deposit-related fees$753 $617 22 %$1,495 $1,589 (6)%
Asset management, administration and commissions866 634 37 1,671 1,342 25 
Mortgage fees and related income548 917 (40)1,251 1,237 1 
Card income1,238 667 86 2,237 1,319 70 
All other income1,321 1,387 (5)2,660 2,832 (6)
Noninterest revenue4,726 4,222 12 9,314 8,319 12 
Net interest income8,034 8,136 (1)15,963 17,326 (8)
Total net revenue12,760 12,358 3 25,277 25,645 (1)
Provision for credit losses(1,868)5,828 NM(5,470)11,600 NM
Noninterest expense
Compensation expense2,977 2,694 11 5,953 5,476 9 
Noncompensation expense(a)
4,085 4,073 — 8,311 8,560 (3)
Total noninterest expense7,062 6,767 4 14,264 14,036 2 
Income before income tax expense7,566 (237)NM16,483 9 NM
Income tax expense1,932 (61)NM4,121 (12)NM
Net income$5,634 $(176)NM$12,362 $21 NM
Revenue by line of business
Consumer & Business Banking$6,016 $5,248 15 $11,651 $11,514 1 
Home Lending1,349 1,687 (20)2,807 2,848 (1)
Card & Auto5,395 5,423 (1)10,819 11,283 (4)
Mortgage fees and related income details:
Production revenue517 742 (30)1,274 1,061 20 
Net mortgage servicing revenue(b)
31 175 (82)(23)176 NM
Mortgage fees and related income$548 $917 (40)%$1,251 $1,237 1 %
Financial ratios
Return on equity44 %(2)%49 %(1)%
Overhead ratio55 5556 55 
Selected income statement data
Three months ended March 31,
(in millions, except ratios)20222021Change
Revenue
Lending- and deposit-related fees$805 $742 8%
Asset management, administration and commissions929 805 15
Mortgage fees and related income456 703 (35)
Card income590 999 (41)
All other income1,122 1,339 (16)
Noninterest revenue3,902 4,588 (15)
Net interest income8,327 7,929 5
Total net revenue12,229 12,517 (2)
Provision for credit losses678 (3,602)NM
Noninterest expense
Compensation expense3,171 2,976 7
Noncompensation expense(a)
4,549 4,226 8
Total noninterest expense7,720 7,202 7
Income before income tax expense3,831 8,917 (57)
Income tax expense936 2,130 (b)(56)
Net income$2,895 $6,787 (b)(57)
Revenue by line of business
Consumer & Business Banking$6,062 $5,635 8
Home Lending1,169 1,458 (20)
Card & Auto4,998 5,424 (8)
Mortgage fees and related income details:
Production revenue211 757 (72)
Net mortgage servicing revenue(c)
245 (54)NM
Mortgage fees and related income$456 $703 (35)%
Financial ratios
Return on equity23 %54 %
Overhead ratio63 58 
(a)Included depreciation expense on leased assets of $856$694 million and $1.1 billion$916 million for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $1.8 billion and $2.2 billion for the six months ended June 30, 2021 and 2020, respectively.
(b)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.
(c)Included MSR risk management results of $(103)$109 million and $79$(115) million for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $(218) million and $(11) million for the six months ended June 30, 2021 and 2020, respectively.
23

Quarterly results
Net income was $5.6$2.9 billion, up $5.8 billion, predominantly driven by a decreasedown 57%, reflecting an increase in the provision for credit losses.losses compared with a net benefit in the prior year.
Net revenue was $12.8$12.2 billion, an increasea decrease of 3%2%.
Net interest income was $8.0$8.3 billion, up 5%, driven by:
•growth in deposits net of margin compression partially offset by lower PPP loan forgiveness, in CBB, and
•higher revolving loans in Card.
Noninterest revenue was $3.9 billion, down 1%15%, driven by:
•lower loansproduction revenue from lower margins and volume in Home Lending,
•higher amortization related to new account origination costs in Card, due to the impactand
•lower auto operating lease income as a result of higher payments and lower cumulative salesa decline in volume, throughout 2020, and deposit margin compression in CBB,
predominantlypartially offset by
•growthhigher net mortgage servicing revenue on an increase in deposits, accelerated recognition of deferred processing fees due to PPP loan forgivenessMSR risk management results primarily driven by changes in CBB aprepayment expectations,nd lower funding costs in Card.
Noninterest revenue was $4.7 billion, up 12%, driven by:
•higher card income due toasset management fees as a result of higher net interchange income reflecting the acceleration in the second quarter of 2021 of debitinflows and credit card sales volume, above pre-pandemic levels, and lower acquisition costs,
•a higher level of client investment assets on higher average market levels, and net inflows, and
•higher deposit-related fees due to higher transaction activity,
largely offset by
•lower mortgage production revenue reflecting lower production margins partially offset by higher volumes,
•lower net mortgage servicing revenue reflecting a net loss in MSR risk management results, compared with a net gain in the prior period, and
•lower auto lease volume.fees.
Refer to Note 14 for further information regarding changes in the value of the MSR asset and related hedges, and mortgage fees and related income. Refer to Note 5 for additional information on card income.
Noninterest expense was $7.1$7.7 billion, up 4%7%, driven by:reflecting:
•continued investments in the business and higher volume-increased structural expenses, predominantly driven by compensation, technology and revenue-related expense, including marketing, expense reflecting higher travel-related benefits and marketing campaigns,
partially offset by
•lower volume- and revenue- related expenses primarily depreciation fromexpense due to lower auto lease assets.assets and the impact of higher vehicle collateral values.
The provision for credit losses was a net benefit of $1.9 billion, compared with an expense of $5.8 billion in the prior year, driven by:$678 million, reflecting:
•a $2.6 billion reduction in the allowance for credit losses,net charge-offs of $553 million, down $470 million, driven by improvements in the Firm’s economic outlook, consisting of $1.8 billion in Card, $600 million in Home Lending, primarily due to continued improvement in HPI expectations, $125 million in CBB and $75 million in Auto, and
•lower net charge-offs predominantly in Card, reflecting lower charge-offs and higher recoveries as consumer cash balances remained elevated, benefiting fromand
•a $125 million addition to the ongoing impact of government stimulus and payment assistance programs.allowance for credit losses in Home Lending.
The prior year included a $4.6 billion addition toreduction in the allowance for credit losses.
Refer to Credit and Investment Risk Management on pages 56-7546-66 and Allowance for Credit Losses on pages 73-7463-65 for a further discussionsdiscussion of the credit portfolios and the allowance for credit losses.
Year-to-date results
Net income was $12.4 billion, up $12.3 billion, driven by a decrease in the provision for credit losses.
Net revenue was $25.3 billion, a decrease of 1%.
Net interest income was $16.0 billion, down 8%, driven by:
•the impact of deposit margin compression in CBB and lower loans in Card due to the impact of higher payments and lower cumulative sales volume throughout 2020,
largely offset by
•growth in deposits and accelerated recognition of deferred processing fees due to PPP loan forgiveness in CBB.
Noninterest revenue was $9.3 billion, up 12%, driven by:
•higher card income due to higher net interchange income reflecting the acceleration in the first half of 2021 of debit and credit card sales volume, above pre-pandemic levels, and lower acquisition costs,
•higher mortgage production revenue reflecting higher production volumes, and
•a higher level of client investment assets on higher average market levels and net inflows,
partially offset by
•lower net mortgage servicing revenue as a result of a higher net loss in MSR risk management results
•lower auto lease volume, and
•lower overdraft fees.
Noninterest expense was $14.3 billion, up 2%, reflecting:
•continued investments in the business and higher volume- and revenue-related expense, including marketing expense reflecting higher travel-related benefits and marketing campaigns,
largely offset by
•lower deprecation from lower auto lease assets, and
•lower structural expenses.
The provision for credit losses was a net benefit of $5.5 billion, compared with an expense of $11.6 billion in the prior year, driven by:
•a $7.2 billion reduction in the allowance for credit losses, driven by improvements in the Firm’s economic outlook, consisting of $5.3 billion in Card, $1.2 billion in Home Lending, primarily due to continued improvement in HPI expectations, $475 million in CBB and $225 million in Auto, and
•lower net charge-offs predominantly in Card, reflecting lower charge-offs and higher recoveries as consumer cash balances remained elevated benefiting from the ongoing impact of government stimulus and payment assistance programs.
The prior year included a $9.0 billion addition to the allowance for credit losses.
2419

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)20212020Change20212020Change
Selected balance sheet data (period-end)
Total assets$494,305 $498,658 (1)%$494,305 $498,658 (1)%
Loans:
Consumer & Business Banking(a)
46,228 49,305 (6)46,228 49,305 (6)
Home Lending(b)
179,371 195,664 (8)179,371 195,664 (8)
Card141,802 141,656 — 141,802 141,656 — 
Auto67,598 59,287 14 67,598 59,287 14 
Total loans434,999 445,912 (2)434,999 445,912 (2)
Deposits1,056,507 885,535 19 1,056,507 885,535 19 
Equity50,000 52,000 (4)50,000 52,000 (4)
Selected balance sheet data (average)
Total assets$485,209 $504,571 (4)$484,868 $515,133 (6)
Loans:
Consumer & Business Banking49,356 43,442 14 49,611 36,506 36 
Home Lending(c)
177,444 199,532 (11)179,832 205,434 (12)
Card136,149 142,377 (4)135,520 152,518 (11)
Auto67,183 60,306 11 67,072 60,599 11 
Total loans430,132 445,657 (3)432,035 455,057 (5)
Deposits1,047,771 840,467 25 1,013,917 790,088 28 
Equity50,000 52,000 (4)50,000 52,000 (4)
Headcount125,300 123,765 1 %125,300 123,765 1 %
Selected metrics
As of or for the three months
ended March 31,
(in millions, except headcount)20222021Change
Selected balance sheet data (period-end)
Total assets$486,183 $487,978 —%
Loans:
Consumer & Business Banking(a)
32,772 52,654 (38)
Home Lending(b)
172,025 178,776 (4)
Card152,283 132,493 15
Auto69,251 67,662 2
Total loans426,331 431,585 (1)
Deposits1,189,308 1,037,903 15
Equity50,000 50,000 —
Selected balance sheet data (average)
Total assets$488,967 $484,524 1
Loans:
Consumer & Business Banking33,742 49,868 (32)
Home Lending(c)
176,488 182,247 (3)
Card149,398 134,884 11
Auto69,250 66,960 3
Total loans428,878 433,959 (1)
Deposits1,153,513 979,686 18
Equity50,000 50,000 —
Headcount129,268 126,084 3%
(a)At June 30,March 31, 2022 and 2021, and 2020, included $16.7$2.9 billion and $19.9$23.4 billionof loans, respectively, in Business Banking under the PPP. Refer to Credit Portfolio on page 5748 for a further discussion of the PPP.
(b)At June 30,March 31, 2022 and 2021, and 2020, Home Lending loans held-for-sale and loans at fair value were $16.5$5.8 billion and $8.6$13.2 billion, respectively.
(c)Average Home Lending loans held-for sale and loans at fair value were $14.2$10.8 billion and $8.7$12.5 billion for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $13.3 billion and $12.2 billion for the six months ended June 30, 2021 and 2020, respectively.
25

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 ratio data)20212020Change20212020Change
Credit data and quality statistics
Nonaccrual loans(a)(b)(c)
$5,256 $4,422 19 %$5,256 $4,422 19 %
Net charge-offs/(recoveries)
Consumer & Business Banking72 60 20 137 134 2 
Home Lending(79)(5)NM(130)(127)(2)
Card755 1,178 (36)1,738 2,491 (30)
Auto(16)45 NM10 93 (89)
Total net charge-offs/(recoveries)$732 $1,278 (43)$1,755 $2,591 (32)
Net charge-off/(recovery) rate
Consumer & Business Banking(d)
0.59 %0.56 %0.56 %0.74 %
Home Lending(0.19)(0.01)(0.16)(0.13)
Card2.24 3.332.60 3.28
Auto(0.10)0.300.03 0.31
Total net charge-off/(recovery) rate0.71 %1.18 %0.85 %1.18 %
30+ day delinquency rate(e)
Home Lending(f)
1.08 %1.30 %1.08 %1.30 %
Card1.01 1.71 1.01 1.71 
Auto0.42 0.54 0.42 0.54 
90+ day delinquency rate - Card(e)
0.54 %0.93 %0.54 %0.93 %
Allowance for loan losses
Consumer & Business Banking$897 $1,372 (35)$897 $1,372 (35)
Home Lending630 2,957 (79)630 2,957 (79)
Card12,500 17,800 (30)12,500 17,800 (30)
Auto817 1,044 (22)817 1,044 (22)
Total allowance for loan losses$14,844 $23,173 (36)%$14,844 $23,173 (36)%
Selected metrics
As of or for the three months
ended March 31,
(in millions, except ratio data)20222021Change
Credit data and quality statistics
Nonaccrual loans(a)(b)(c)(d)
$4,531 $5,507 (18)%
Net charge-offs/(recoveries)
Consumer & Business Banking89 65 37
Home Lending(69)(51)(35)
Card506 983 (49)
Auto27 26 4
Total net charge-offs/(recoveries)$553 $1,023 (46)
Net charge-off/(recovery) rate
Consumer & Business Banking(e)
1.07 %0.53 %
Home Lending(0.17)(0.12)
Card1.37 2.97
Auto0.16 0.16
Total net charge-off/(recovery) rate0.54 %0.99 %
30+ day delinquency rate(f)
Home Lending(g)
1.03 %1.07 %
Card1.09 1.40 
Auto0.57 0.42 
90+ day delinquency rate - Card(f)
0.54 %0.80 %
Allowance for loan losses
Consumer & Business Banking$697 $1,022 (32)
Home Lending785 1,238 (37)
Card10,250 14,300 (28)
Auto738 892 (17)
Total allowance for loan losses$12,470 $17,452 (29)%
(a)At June 30,March 31, 2022 and 2021, and 2020, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $397$315 million and $561$458 million, respectively. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.
(b)GenerallyAt March 31, 2022 and 2021, generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic. Refer to Consumer Credit Portfolio on pages 58-6249-53 for further information on consumer payment assistance activity. The second quarter of 2021 includesIncludes loans to customers that have exited COVID-19 related payment deferral programs and are 90 or more days past due, predominantly all of which were considered collateral-dependent at time of exit from COVID-19 payment deferral programs and charged down to the lower of amortized cost or fair value of the underlying collateral less costs to sell.exit.
(c)At March 31, 2022 nonaccrual loans excluded $179 million of PPP loans 90 or more days past due and guaranteed by the SBA.
(d)Prior-period amount has been revised to conform with the current presentation.
(d)(e)At June 30,March 31, 2022 and 2021, and 2020, included $16.7$2.9 billion and $19.9$23.4 billion of loans, respectively, in Business Banking under the PPP. The Firm does not expect to realize material credit losses on PPP loans because the loans are guaranteed by the SBA. Refer to Credit Portfolio on page 5748 for a further discussion of the PPP.
(e)(f)At June 30,March 31, 2022 and 2021, and 2020, the principal balance of loans in Home Lending, Card and Auto under payment deferral programs offered in response to the COVID-19 pandemic were as follows: (1) $5.2 billion$728 million and $18.2$8.1 billion in Home Lending, respectively; (2) $55$15 million and $4.4 billion$105 million in Card, respectively; and (3) $89$45 million and $12.3 billion$127 million in Auto, respectively. Loans that are performing according to their modified terms are generally not considered delinquent. Refer to Consumer Credit Portfolio on pages 58-6249-53 for further information on consumer payment assistance activity.
(f)(g)At June 30,March 31, 2022 and 2021, and 2020, excluded mortgage loans insured by U.S. government agencies of $483$370 million and $826$557 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
2620

Selected metricsSelected metricsSelected 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 March 31,
(in billions, except ratios and where otherwise noted)(in billions, except ratios and where otherwise noted)20212020Change20212020Change(in billions, except ratios and where otherwise noted)20222021Change
Business MetricsBusiness MetricsBusiness Metrics
Number of branchesNumber of branches4,869 4,923 (1)%4,869 4,923 (1)%Number of branches4,810 4,872 (1)%
Active digital customers (in thousands)(a)
Active digital customers (in thousands)(a)
56,915 54,505 4 56,915 54,505 4 
Active digital customers (in thousands)(a)
60,286 56,671 6
Active mobile customers (in thousands)(b)
Active mobile customers (in thousands)(b)
42,896 39,044 10 42,896 39,044 10 
Active mobile customers (in thousands)(b)
46,527 41,872 11
Debit and credit card sales volumeDebit and credit card sales volume$344.3 $237.6 45 $634.6 $503.6 26 Debit and credit card sales volume$351.5 $290.3 21
Consumer & Business BankingConsumer & Business BankingConsumer & Business Banking
Average depositsAverage deposits$1,028.5 $821.6 25 $994.7 $773.3 29 Average deposits$1,136.1 $960.7 18
Deposit marginDeposit margin1.28 %1.52 %1.29 %1.77 %Deposit margin1.22 %1.29 %
Business banking origination volume(c)
Business banking origination volume(c)
$2.2 $23.0 (91)$12.2 $24.5 (50)
Business banking origination volume(c)
$1.0 $10.0 (90)
Client investment assets(d)
Client investment assets(d)
673.7 494.4 36 673.7 494.4 36 
Client investment assets(d)
696.3 637.0 9
Number of client advisorsNumber of client advisors4,5714,2597 4,5714,2597 Number of client advisors4,8164,5007
Home LendingHome LendingHome Lending
Mortgage origination volume by channelMortgage origination volume by channelMortgage origination volume by channel
RetailRetail$22.7 $18.0 26 $45.7 $32.1 42 Retail$15.1 $23.0 (34)
CorrespondentCorrespondent16.9 6.2 173 33.2 20.2 64 Correspondent9.6 16.3 (41)
Total mortgage origination volume(e)
Total mortgage origination volume(e)
$39.6 $24.2 64 $78.9 $52.3 51 
Total mortgage origination volume(e)
$24.7 $39.3 (37)
Third-party mortgage loans serviced (period-end)Third-party mortgage loans serviced (period-end)463.9 482.4 (4)463.9 482.4 (4)Third-party mortgage loans serviced (period-end)$575.4 $443.2 30
MSR carrying value (period-end)MSR carrying value (period-end)4.5 3.1 45 4.5 3.1 45 MSR carrying value (period-end)7.3 4.5 62
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)0.97 %0.64 %0.97 %0.64 %Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)1.27 %1.02 %
MSR revenue multiple(f)
MSR revenue multiple(f)
3.59 x2.29 x3.59 x2.21 x
MSR revenue multiple(f)
4.70 x3.78 x
Credit CardCredit CardCredit Card
Credit card sales volume, excluding Commercial Card$223.7 $148.5 51 $407.4 $327.6 24 
Credit card sales volume, excluding commercial cardCredit card sales volume, excluding commercial card$236.4 $183.7 29
Net revenue rateNet revenue rate11.32 %11.02 %11.43 %10.76 %Net revenue rate9.87 %11.53 %
AutoAutoAuto
Loan and lease origination volumeLoan and lease origination volume$12.4 $7.7 61 $23.6 $16.0 48 Loan and lease origination volume$8.4 $11.2 (25)
Average auto operating lease assetsAverage auto operating lease assets19.6 22.6 (13)%20.0 22.8 (13)%Average auto operating lease assets16.4 20.3 (19)%
(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)Included origination volume under the PPP of $1.3 billion and $21.5$9.3 billion for the three months ended June 30,March 31, 2021. The program ended on May 31, 2021 and 2020, respectively, and $10.6 billion and $21.5 billion for the six months ended June 30, 2021 and 2020, respectively.new applications. Refer to Credit Portfolio on page 5748 for a further discussion of the PPP.
(d)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 38-4129-31 for additional information.
(e)Firmwide mortgage origination volume was $44.9$30.2 billion and $28.3$43.2 billion for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $88.1 billion and $60.2 billion for the six months ended June 30, 2021 and 2020, respectively.
(f)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).
2721

CORPORATE & INVESTMENT BANK
Refer to pages 71–7667-72 of JPMorgan Chase’s 20202021 Form 10-K and Line of Business Metrics on page 187172 for a further discussion of the business profile of CIB.
Selected income statement dataSelected income statement dataSelected income statement data
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions, except ratios)(in millions, except ratios)20212020Change20212020Change(in millions, except ratios)20222021Change
RevenueRevenueRevenue
Investment banking feesInvestment banking fees$3,572 $2,847 25 %$6,560 $4,754 38 %Investment banking fees$2,050 $2,988 (31)%
Principal transactionsPrincipal transactions4,026 7,400 (46)10,071 10,588 (5)Principal transactions5,223 6,045 (14)
Lending- and deposit-related feesLending- and deposit-related fees633 500��27 1,226 950 29 Lending- and deposit-related fees641 593 8 
Asset management, administration and commissionsAsset management, administration and commissions1,246 1,148 9 2,532 2,409 5 Asset management, administration and commissions1,339 1,286 4 
All other incomeAll other income435 409 6 611 499 22 All other income704 176 300 
Noninterest revenueNoninterest revenue9,912 12,304 (19)21,000 19,200 9 Noninterest revenue9,957 11,088 (10)
Net interest incomeNet interest income3,302 4,079 (19)6,819 7,186 (5)Net interest income3,572 3,517 2 
Total net revenue(a)
Total net revenue(a)
13,214 16,383 (19)27,819 26,386 5 
Total net revenue(a)
13,529 14,605 (7)
Provision for credit lossesProvision for credit losses(79)1,987 NM(410)3,388 NMProvision for credit losses445 (331)NM
Noninterest expenseNoninterest expenseNoninterest expense
Compensation expenseCompensation expense3,582 3,997 (10)7,911 7,003 13 Compensation expense4,006 4,329 (7)
Noncompensation expenseNoncompensation expense2,941 2,815 4 5,716 5,764 (1)Noncompensation expense3,292 2,775 19 
Total noninterest expenseTotal noninterest expense6,523 6,812 (4)13,627 12,767 7 Total noninterest expense7,298 7,104 3 
Income before income tax expenseIncome before income tax expense6,770 7,584 (11)14,602 10,231 43 Income before income tax expense5,786 7,832 (26)
Income tax expenseIncome tax expense1,785 2,133 (16)3,877 2,795 39 Income tax expense1,401 1,908 (b)(27)
Net incomeNet income$4,985 $5,451 (9)%$10,725 $7,436 44 %Net income$4,385 $5,924 (b)(26)%
Financial ratiosFinancial ratiosFinancial ratios
Return on equityReturn on equity23 %27 %25 %18 %Return on equity17 %28 
 %(b)
Overhead ratioOverhead ratio49 42 49 48 Overhead ratio54 49 
Compensation expense as percentage of total net revenueCompensation expense as percentage of total net revenue27 24 28 27 Compensation expense as percentage of total net revenue30 30 
(a)Includes tax-equivalent adjustments, predominantly due to income tax credits and other tax benefits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; and tax-exempt income from municipal bonds of $763$737 million and $591$703 million for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $1.5 billion and $1.2 billionrespectively.
(b)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the six months ended June 30, 2021 and 2020, respectively.LOBs, with no impact to Firmwide net income. Prior-period tax-equivalent adjustment amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
Selected income statement data
Three months ended June 30,Six months ended June 30,
(in millions)20212020Change20212020Change
Revenue by business
Investment Banking$3,424 $3,401 1 %$6,275 $4,287 46 %
Wholesale Payments1,453 1,387 5 2,845 2,801 2 
Lending229 270 (15)494 620 (20)
Total Banking5,106 5,058 1 9,614 7,708 25 
Fixed Income Markets4,098 7,338 (44)9,859 12,331 (20)
Equity Markets2,689 2,380 13 5,978 4,617 29 
Securities Services1,088 1,097 (1)2,138 2,171 (2)
Credit Adjustments & Other(a)
233 510 (54)230 (441)NM
Total Markets & Securities Services8,108 11,325 (28)18,205 18,678 (3)
Total net revenue$13,214 $16,383 (19)%$27,819 $26,386 5 %
Selected income statement data
Three months ended March 31,
(in millions)20222021Change
Revenue by business
Investment Banking$2,057 $2,851 (28)%
Payments1,854 1,392 33 
Lending321 265 21 
Total Banking4,232 4,508 (6)
Fixed Income Markets5,698 5,761 (1)
Equity Markets3,055 3,289 (7)
Securities Services1,068 1,050 2 
Credit Adjustments & Other(a)
(524)(3)NM
Total Markets & Securities Services9,297 10,097 (8)
Total net revenue$13,529 $14,605 (7)%
(a)Consists primarily of centrally managed credit valuation adjustments (“CVA”), funding valuation adjustments (“FVA”) on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities, which are primarily reported in principal transactions revenue. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.



28

Quarterly results
Net income was $5.0$4.4 billion, down 9%26%.
Net revenue was $13.2$13.5 billion, down 19%7%.
Banking revenue was $5.1$4.2 billion, up 1%down 6%.
•Investment Banking revenue was $3.4$2.1 billion, up 1%, driven by higher Investment Banking fees, up 25%, reflecting higher fees across products. The prior year included $659 million of markups on held-for-sale positions in the bridge financing portfolio. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.
–Advisory fees were $916 million, up 52%, driven by a higher number of completed transactions.
–Debt underwriting fees were $1.6 billion, up 26%, driven by an active acquisition finance market, partially offset by lower investment grade bond fees.
–Equity underwriting fees were $1.1 billion, up 9%, driven by an active IPO market, predominantly offset by lower fees from follow-on and convertible securities offerings.
•Wholesale Payments revenue was $1.5 billion, up 5%, driven by higher deposit balances and fees, predominantly offset by deposit margin compression.
•Lending revenue was $229 million, down 15%28%, driven by lower net interest income, largely offset by lower fair value losses on hedges of accrual loans compared to the prior year.
Markets & Securities Services revenue was $8.1 billion, down 28%. Markets revenue was $6.8 billion, down 30%.
•Fixed Income Markets revenue was $4.1 billion, down 44%, driven by lower revenue across products compared to a strong prior year.
•Equity Markets revenue was $2.7 billion, up 13%, driven by strong performance across prime brokerage, Cash Equities, and derivatives.
•Securities Services revenue was $1.1 billion, down 1%, driven by deposit margin compression predominantly offset by growth in deposits and fees.
•Credit Adjustments & Other was a gain of $233 million largely driven by valuation adjustments related to certain collateralized derivatives. The prior year gain of $510 million was driven by funding spread tightening on derivatives.
Noninterest expense was $6.5 billion, down 4%, driven by lower revenue-related expense, primarily performance-related compensation, partially offset by higher volume-related brokerage expense.
The provision for credit losses was a net benefit of $79 million, driven by a net reduction in the allowance for credit losses, compared with an expense of $2.0 billion in the prior year.
Refer to Credit and Investment Risk Management on pages 56-75 and Allowance for Credit Losses on pages 73-74 for further discussions of the credit portfolios and the allowance for credit losses.
Year-to-dateresults
Net income was $10.7 billion, up 44%.
Net revenue was $27.8 billion, up 5%.
Banking revenue was $9.6 billion, up 25%.
•Investment Banking revenue was $6.3 billion, up 46%, driven by higher Investment Banking fees, up 38%down 31%, reflecting higher fees across products,lower equity and the absence of prior year net markdowns of $161 million on held-for-sale positions in the bridge financing portfolio.debt underwriting fees. The Firm ranked #1 for Global Investment Banking fees, according to Dealogic.
–Equity underwriting fees were $2.1 billion, up 62%$249 million, down 76%, primarily driven by an active IPO market.lower issuance activity, particularly in North America and EMEA.
–Debt underwriting fees were $2.8$1.0 billion, up 22%down 20%, predominantly driven by an active acquisition financehigh-yield bonds as a result of reduced issuances in a volatile market.
–Advisory fees were $1.6 billion,$801 million, up 44%18%, driven by a higher numberbenefiting from the closing of completed transactions.deals announced in 2021.
•Wholesale Payments revenue was $2.8$1.9 billion, up 2%33%, and included net gains on equity investments. Excluding these net gains, revenue was $1.5 billion, up 9%, predominantly driven by higher fees, deposits and improved deposit balances and fees, predominantly offset by deposit margin compression.margins.
•Lending revenue was $494$321 million, down 20%up 21%, predominantly driven by lower net interest income, partially offset by higher loan commitment fees.fair value gains on hedges of accrual loans, compared to losses in the prior year.
Markets & Securities Services revenue was $18.2$9.3 billion, down 3%8%. Markets revenue was $15.8$8.8 billion, down 7%3%.
•Fixed Income Markets revenue was $9.9$5.7 billion, down 20%1%, driven by lower revenueparticularly in Rates and Currencies & Emerging Markets comparedSecuritized Products, largely due to a strong prior year, partiallythe rising rate environment, which slowed down the pace of mortgage production, predominantly offset by higher revenue in Securitized Products.Currencies & Emerging Markets on elevated client activity in a volatile market.
22

•Equity Markets revenue was $6.0$3.1 billion, up 29%down 7%, driven by strong performance acrosslower revenue in derivatives prime brokerage, and Cash Equities.Equities, compared to a strong prior year.
•Securities Services revenue was $2.1$1.1 billion, downup 2%, withdriven by improved deposit margin compression offset bymargins and growth in deposits and fees.
•Credit Adjustments & Other was a gainloss of $230$524 million, largely driven by valuation adjustments related to certain collateralized derivatives. The prior year loss of $441 million was predominantly driven by losses on certain components of fair value option elected liabilities,funding spread widening as well as the impactcredit valuation adjustments relating to both increases in commodities exposures and markdowns of funding spread widening on derivatives.derivative receivables from Russia-associated counterparties.
Noninterest expense was $13.6$7.3 billion, up 7%3%, predominantly driven by higher structural expense, investments in the business and legal expense, largely offset by lower volume- and revenue-related expense largely performance-related compensation, partially offset by lower legal expense.including revenue-related compensation.
The provision for credit losses was a net benefit of $410$445 million was driven by a net reduction inaddition to the allowance for credit losses, compared with an expensea net benefit of $3.4 billion$331 million in the prior year.

Refer to Credit and Investment Risk Management on pages 46-66 and Allowance for Credit Losses on pages 63-65 for further discussions of the credit portfolios and the allowance for credit losses.
29

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)20212020Change20212020Change
Selected balance sheet data (period-end)
Total assets(a)
$1,363,992 $1,080,189 26 %$1,363,992 $1,080,189 26 %
Loans:
Loans retained(b)
144,764 140,770 3 144,764 140,770 3 
Loans held-for-sale and loans at fair value(c)
56,668 34,017 67 56,668 34,017 67 
Total loans201,432 174,787 15 201,432 174,787 15 
Equity83,000 80,000 4 83,000 80,000 4 
Selected balance sheet data (average)
Total assets(a)
$1,371,218 $1,166,867 18 $1,332,755 $1,124,389 19 
Trading assets-debt and equity instruments469,625 421,953 11 467,172 410,229 14 
Trading assets-derivative receivables73,642 76,710 (4)75,678 65,922 15 
Loans:
Loans retained(b)
$140,096 $154,038 (9)$138,454 $141,438 (2)
Loans held-for-sale and loans at fair value(c)
52,376 33,538 56 49,042 34,374 43 
Total loans$192,472 $187,576 3 $187,496 $175,812 7 
Equity83,000 80,000 4 83,000 80,000 4 
Headcount(d)
64,261 60,950 5 %64,261 

60,950 5 %
Selected metrics
As of or for the three months
ended March 31,
(in millions, except headcount)20222021Change
Selected balance sheet data (period-end)
Total assets$1,460,463 $1,355,123 8 %
Loans:
Loans retained(a)
167,791 134,134 25 
Loans held-for-sale and loans at fair value(b)
47,260 45,846 3 
Total loans215,051 179,980 19 
Equity103,000 83,000 24 
Selected balance sheet data (average)
Total assets$1,407,835 $1,293,864 9 
Trading assets-debt and equity instruments419,346 468,976 (11)
Trading assets-derivative receivables66,692 73,452 (9)
Loans:
Loans retained(a)
$160,976 $136,794 18 
Loans held-for-sale and loans at fair value(b)
51,398 45,671 13 
Total loans$212,374 $182,465 16 
Equity103,000 83,000 24 
Headcount68,292 62,772 9 %
(a)Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
(b)Loans retained includesIncludes secured lending-related positions, credit portfolio loans, loans held by consolidated Firm-administered multi-seller conduits, trade finance loans, other held-for-investment loans and overdrafts.
(c)(b)Loans held-for-sale and loans at fair value primarily reflect lending relatedPrimarily reflects lending-related positions originated and purchased in CIB Markets, including loans held for securitization.
23
(d)During the six months ended June 30, 2021, 1,155 technology and risk management employees were transferred from Corporate to CIB.
Selected metrics
As of or for the three months
ended June 30,		As of or for the six months
ended June 30,
(in millions, except ratios)20212020Change20212020Change
Credit data and quality statistics
Net charge-offs/(recoveries)$(12)$204 NM$(19)$259 NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained(a)
$783 $1,195 (34)%$783 $1,195 (34)
Nonaccrual loans held-for-sale and loans at fair value(b)
1,187 1,510 (21)1,187 1,510 (21)
Total nonaccrual loans1,970 2,705 (27)1,970 2,705 (27)
Derivative receivables481 108 345 481 108 345 
Assets acquired in loan satisfactions95 35 171 95 35 171 
Total nonperforming assets$2,546 $2,848 (11)$2,546 $2,848 (11)
Allowance for credit losses:
Allowance for loan losses(c)
$1,607 $3,039 (47)$1,607 $3,039 (47)
Allowance for lending-related commitments(c)
1,902 1,634 16 1,902 1,634 16 
Total allowance for credit losses$3,509 $4,673 (25)%$3,509 $4,673 (25)%
Net charge-off/(recovery) rate(c)(d)
(0.03)%0.53 %(0.03)%0.37 %
Allowance for loan losses to period-end loans retained(c)
1.11 2.16 1.11 2.16 
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits(c)(e)
1.53 2.87 1.53 2.87 
Allowance for loan losses to nonaccrual loans retained(a)(c)
205 254 205 254 
Nonaccrual loans to total period-end loans0.98 %1.55 %0.98 %1.55 %
Selected metrics
As of or for the three months
ended March 31,
(in millions, except ratios)20222021Change
Credit data and quality statistics
Net charge-offs/(recoveries)$20 $(7)NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained(a)
$871 $842 3 
Nonaccrual loans held-for-sale and loans at fair value(b)
949 1,266 (25)
Total nonaccrual loans1,820 2,108 (14)
Derivative receivables597 284 110 
Assets acquired in loan satisfactions91 97 (6)
Total nonperforming assets$2,508 $2,489 1 
Allowance for credit losses:
Allowance for loan losses$1,687 $1,982 (15)
Allowance for lending-related commitments1,459 1,602 (9)
Total allowance for credit losses$3,146 $3,584 (12)%
Net charge-off/(recovery) rate(c)
0.05 %(0.02)%
Allowance for loan losses to period-end loans retained1.01 1.48 
Allowance for loan losses to period-end loans retained, excluding trade finance and conduits(d)
1.31 2.06 
Allowance for loan losses to nonaccrual loans retained(a)
194 235 
Nonaccrual loans to total period-end loans0.85 %1.17 %
(a)Allowance for loan losses of $180$226 million and $340$174 million were held against these nonaccrual loans at June 30,March 31, 2022 and 2021, and 2020, respectively.
(b)At June 30,March 31, 2022 and 2021, and 2020, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $316$283 million and $135$340 million, respectively. These amounts have been excluded based upon the government guarantee.
(c)Prior-period amounts have been revised to conform with the current presentation.
(d)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
(e)(d)Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB’s allowance coverage ratio.
30

Investment banking feesInvestment banking feesInvestment banking fees
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)20212020Change20212020Change(in millions)20222021Change
AdvisoryAdvisory$916 $602 52 %$1,596 $1,105 44 %Advisory$801 $680 18 %
Equity underwritingEquity underwriting1,063 977 9 2,119 1,308 62 Equity underwriting249 1,056 (76)
Debt underwriting(a)
Debt underwriting(a)
1,593 1,268 26 2,845 2,341 22 
Debt underwriting(a)
1,000 1,252 (20)
Total investment banking feesTotal investment banking fees$3,572 $2,847 25 %$6,560 $4,754 38 %Total investment banking fees$2,050 $2,988 (31)%
(a)Represents long-term debt and loan syndications.
League table results – wallet share
Three months ended June 30,Six months ended June 30,Full-year 2020
2021202020212020
RankShareRankShareRankShareRankShareRankShare
Based on fees(a)
M&A(b)
Global#2 10.6 %#1 10.0 %#2 9.5 %#2 9.0 %#2 9.0 %
U.S.2 11.4 4 8.1 2 10.3 2 8.6 2 9.4 
Equity and equity-related(c)
Global1 10.4 2 11.7 3 8.7 2 10.9 2 8.6 
U.S.1 14.3 2 13.1 3 9.8 2 12.9 2 11.2 
Long-term debt(d)
Global1 9.0 1 9.7 1 9.1 1 9.3 1 8.9 
U.S.1 13.5 1 13.5 1 13.0 1 13.0 1 12.8 
Loan syndications
Global1 10.8 1 9.4 1 11.9 1 10.1 1 11.1 
U.S.1 12.3 1 10.3 1 13.9 1 10.2 1 11.6 
Global investment banking fees(e)
#1 10.1 %#1 10.4 %#1 9.4 %#1 9.7 %#1 9.1 %
24

League table results – wallet share
Three months ended March 31,Full-year 2021
20222021
RankShareRankShareRankShare
Based on fees(a)
M&A(b)
Global#3 7.6 %#2 8.0 %#2 9.7 %
U.S.3 9.1 2 8.6 2 10.8 
Equity and equity-related(c)
Global1 5.6 3 8.1 2 8.8 
U.S.1 11.6 3 9.7 2 11.7 
Long-term debt(d)
Global1 8.0 1 9.2 1 8.4 
U.S.1 11.8 1 12.6 1 12.2 
Loan syndications
Global1 10.9 1 13.3 1 10.7 
U.S.2 9.9 1 15.7 1 12.4 
Global investment banking fees(e)
#1 8.0 %#1 9.0 %#1 9.3 %
(a)Source: Dealogic as of JulyApril 1, 2021.2022. Reflects the ranking of revenue wallet and market share.
(b)Global M&A excludes any withdrawn transactions. U.S. M&A revenue wallet represents wallet from client parents based in the U.S.
(c)Global equity and equity-related ranking includes rights offerings and Chinese A-Shares.
(d)Long-term debt rankings include investment-grade, high-yield, supranationals, sovereigns, agencies, covered bonds, ABSasset-backed securities ("ABS") and mortgage-backed securities (“MBS”); and exclude money market, short-term debt, and U.S. municipal securities.
(e)Global investment banking fees exclude money market, short-term debt and shelf securities.





31

Markets revenue
The following table summarizes selectselected income statement data for the Markets businesses. Markets includes both Fixed Income Markets and Equity Markets. Markets revenue comprisesconsists of principal transactions, fees, commissions and other income, as well as net interest income. The Firm assesses its Markets business performance on a total revenue basis, as offsets may occur across revenue line items. For example, securities that generate net interest income may be risk-managed by derivatives that are
recordedreflected at fair value in principal transactions revenue. Refer to Notes 5 and 6 for a description of the composition of these income statement line items. Refer to Markets revenue on page 7470 of JPMorgan Chase’s 20202021 Form 10-K for further information.
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,Three months ended March 31,Three months ended March 31,
2021202020222021

(in millions)
(in millions)		Fixed Income MarketsEquity
Markets		Total
Markets		Fixed Income MarketsEquity
Markets		Total
Markets
(in millions)		Fixed Income MarketsEquity
Markets		Total
Markets		Fixed Income MarketsEquity
Markets		Total
Markets
Principal transactionsPrincipal transactions$1,925 $1,879 $3,804 $4,651 $1,737 $6,388 Principal transactions$3,389 $2,284 $5,673 $3,564 $2,482 $6,046 
Lending- and deposit-related feesLending- and deposit-related fees82 4 86 48 2 50 Lending- and deposit-related fees78 4 82 69 4 73 
Asset management, administration and commissionsAsset management, administration and commissions121 485 606 93 497 590 Asset management, administration and commissions156 551 707 129 544 673 
All other incomeAll other income293 11 304 176 (22)154 All other income117 (44)73 66 (31)35 
Noninterest revenueNoninterest revenue2,421 2,379 4,800 4,968 2,214 7,182 Noninterest revenue3,740 2,795 6,535 3,828 2,999 6,827 
Net interest incomeNet interest income1,677 310 1,987 2,370 166 2,536 Net interest income1,958 260 2,218 1,933 290 2,223 
Total net revenueTotal net revenue$4,098 $2,689 $6,787 $7,338 $2,380 $9,718 Total net revenue$5,698 $3,055 $8,753 $5,761 $3,289 $9,050 
Six months ended June 30,Six months ended June 30,
20212020

(in millions)		Fixed Income MarketsEquity
Markets		Total
Markets		Fixed Income MarketsEquity
Markets		Total
Markets
Principal transactions$5,489 $4,361 $9,850 $7,794 $3,460 $11,254 
Lending- and deposit-related fees151 8 159 95 4 99 
Asset management, administration and commissions250 1,029 1,279 204 1,105 1,309 
All other income359 (20)339 177 (23)154 
Noninterest revenue6,249 5,378 11,627 8,270 4,546 12,816 
Net interest income3,610 600 4,210 4,061 71 4,132 
Total net revenue$9,859 $5,978 $15,837 $12,331 $4,617 $16,948 
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 where otherwise noted)20212020Change20212020Change
Assets under custody (“AUC”) by asset class (period-end)
(in billions):
Fixed Income$15,720 $15,023 5 %$15,720 $15,023 5 %
Equity12,505 9,288 35 12,505 9,288 35 
Other(a)
3,897 3,136 24 3,897 3,136 24 
Total AUC$32,122 $27,447 17 $32,122 $27,447 17 
Merchant processing volume (in billions)(b)
$475.2 $371.9 28 $900.9 $746.7 21 
Client deposits and other third-party liabilities (average)(c)
$721,882 $607,902 19 %$713,868 $561,183 27 %
25

Selected metrics
As of or for the three months
ended March 31,
(in millions, except where otherwise noted)20222021Change
Assets under custody (“AUC”) by asset class (period-end)
(in billions):
Fixed Income$15,489 $15,552 — %
Equity12,156 12,006 1 
Other(a)
3,926 3,693 6 
Total AUC$31,571 $31,251 1 
Merchant processing volume (in billions)(b)
$490.2 $425.7 15 
Client deposits and other third-party liabilities (average)(c)
$709,121 $705,764 — %
(a)Consists of mutual funds, unit investment trusts, currencies, annuities, insurance contracts, options and other contracts.
(b)Represents total merchant processing volume across CIB, CCB and CB.
(c)Client deposits and other third-party liabilities pertain to the Wholesale Payments and Securities Services businesses.


32

International metricsInternational metricsInternational 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 March 31,
(in millions, except where
otherwise noted)		(in millions, except where
otherwise noted)		20212020Change20212020Change(in millions, except where
otherwise noted)		20222021Change
Total net revenue(a)
Total net revenue(a)
Total net revenue(a)
Europe/Middle East/AfricaEurope/Middle East/Africa$3,784 $4,977 (24)%$7,844 $7,568 4 %Europe/Middle East/Africa$4,692 $4,060 16 %
Asia-PacificAsia-Pacific1,792 2,196 (18)4,053 3,972 2 Asia-Pacific1,985 2,261 (12)
Latin America/CaribbeanLatin America/Caribbean460 587 (22)954 1,094 (13)Latin America/Caribbean677 494 37 
Total international net revenueTotal international net revenue6,036 7,760 (22)12,851 12,634 2 Total international net revenue7,354 6,815 8 
North AmericaNorth America7,178 8,623 (17)14,968 13,752 9 North America6,175 7,790 (21)
Total net revenueTotal net revenue$13,214 $16,383 (19)$27,819 $26,386 5 Total net revenue$13,529 $14,605 (7)
Loans retained (period-end)(a)
Loans retained (period-end)(a)
Loans retained (period-end)(a)
Europe/Middle East/AfricaEurope/Middle East/Africa$31,534 $27,504 15 $31,534 $27,504 15 Europe/Middle East/Africa$38,393 $28,624 34 
Asia-PacificAsia-Pacific14,262 13,565 5 14,262 13,565 5 Asia-Pacific17,926 13,944 29 
Latin America/CaribbeanLatin America/Caribbean5,456 8,178 (33)5,456 8,178 (33)Latin America/Caribbean8,098 5,518 47 
Total international loansTotal international loans51,252 49,247 4 51,252 49,247 4 Total international loans64,417 48,086 34 
North AmericaNorth America93,512 91,523 2 93,512 91,523 2 North America103,374 86,048 20 
Total loans retainedTotal loans retained$144,764 $140,770 3 $144,764 $140,770 3 Total loans retained$167,791 $134,134 25 
Client deposits and other third-party liabilities (average)(b)
Client deposits and other third-party liabilities (average)(b)
Client deposits and other third-party liabilities (average)(b)
Europe/Middle East/AfricaEurope/Middle East/Africa$246,949 $216,211 14 $241,593 $203,594 19 Europe/Middle East/Africa$246,497 $234,795 5 
Asia-PacificAsia-Pacific132,438 125,839 5 132,284 114,816 15 Asia-Pacific134,767 131,761 2 
Latin America/CaribbeanLatin America/Caribbean47,502 36,339 31 45,891 33,598 37 Latin America/Caribbean43,666 43,927 (1)
Total internationalTotal international$426,889 $378,389 13 $419,768 $352,008 19 Total international$424,930 $410,483 4 
North AmericaNorth America294,993 229,513 29 294,100 209,175 41 North America284,191 295,281 (4)
Total client deposits and other third-party liabilitiesTotal client deposits and other third-party liabilities$721,882 $607,902 19 $713,868 $561,183 27 Total client deposits and other third-party liabilities$709,121 $705,764 — 
AUC (period-end)(b)
(in billions)
AUC (period-end)(b)
(in billions)
AUC (period-end)(b)
(in billions)
North AmericaNorth America$20,864 $17,734 18 $20,864 $17,734 18 North America$20,723 $20,244 2 
All other regionsAll other regions11,258 9,713 16 11,258 9,713 16 All other regions10,848 11,007 (1)
Total AUCTotal AUC$32,122 $27,447 17 %$32,122 $27,447 17 %Total AUC$31,571 $31,251 1 %
(a)Total net revenue and loans retained (excluding loans held-for-sale and loans at fair value) are based on the location of the trading desk, booking location, or domicile of the client, as applicable.
(b)Client deposits and other third-party liabilities pertaining to the Wholesale Payments and Securities Services businesses, and AUC, are based on the domicile of the client.
3326

COMMERCIAL BANKING
Refer to pages 77–7973-75 of JPMorgan Chase’s 20202021 Form 10-K and Line of Business Metrics on page 188173 for a discussion of the business profile of CB.
Selected income statement dataSelected income statement dataSelected income statement data
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)20212020Change20212020Change(in millions)20222021Change
RevenueRevenueRevenue
Lending- and deposit-related feesLending- and deposit-related fees$350 $297 18 %$681 $558 22 %Lending- and deposit-related fees$364 $331 10 %
All other incomeAll other income600 526 14 1,186 873 36 All other income503 586 (14)
Noninterest revenueNoninterest revenue950 823 15 1,867 1,431 30 Noninterest revenue867 917 (5)
Net interest incomeNet interest income1,533 1,577 (3)3,009 3,134 (4)Net interest income1,531 1,476 4 
Total net revenue(a)
Total net revenue(a)
2,483 2,400 3 4,876 4,565 7 
Total net revenue(a)
2,398 2,393 — 
Provision for credit lossesProvision for credit losses(377)2,431 NM(495)3,441 NMProvision for credit losses157 (118)NM
Noninterest expenseNoninterest expenseNoninterest expense
Compensation expenseCompensation expense484 430 13 966 902 7 Compensation expense553 482 15 
Noncompensation expenseNoncompensation expense497 463 7 984 977 1 Noncompensation expense576 487 18 
Total noninterest expenseTotal noninterest expense981 893 10 1,950 1,879 4 Total noninterest expense1,129 969 17 
Income before income tax expenseIncome before income tax expense1,879 (924)NM3,421 (755)NMIncome before income tax expense1,112 1,542 (28)
Income tax expenseIncome tax expense459 (243)NM833 (213)NMIncome tax expense262 361 (b)(27)
Net income/(loss)$1,420 $(681)NM$2,588 $(542)NM
Net incomeNet income$850 $1,181 (b)(28)%
(a)Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities and in entities established for rehabilitation of historic properties, as well as tax-exempt income related to municipal financing activities of $78$69 million and $80$73 million for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $151 million and $161 million for the six months ended June 30, 2021 and 2020, respectively.
Selected income statement data (continued)
Three months ended June 30,Six months ended June 30,
(in millions, except ratios)20212020Change20212020Change
Revenue by product
Lending$1,172 $1,127 4 %$2,340 $2,081 12 %
Wholesale payments914 925 (1)1,757 1,903 (8)
Investment banking(a)
370 256 45 720 491 47 
Other27 92 (71)59 90 (34)
Total net revenue$2,483 $2,400 3 $4,876 $4,565 7 
Investment banking revenue, gross(b)
$1,164 $851 37 $2,293 $1,537 49 
Revenue by client segments
Middle Market Banking$1,009 $870 16 $1,925 $1,813 6 
Corporate Client Banking851 866 (2)1,702 1,539 11 
Commercial Real Estate Banking599 566 6 1,203 1,107 9 
Other24 98 (76)46 106 (57)
Total net revenue$2,483 $2,400 3 %$4,876 $4,565 7 %
Financial ratios
Return on equity23 %(13)%21 %(6)%
Overhead ratio40 37 40 41 
(b)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.

Selected income statement data (continued)
Three months ended March 31,
(in millions, except ratios)20222021Change
Revenue by product
Lending$1,105 $1,168 (5)%
Payments981 843 16 
Investment banking(a)
260 350 (26)
Other52 32 63 
Total net revenue$2,398 $2,393 — 
Investment banking revenue, gross(b)
$729 $1,129 (35)
Revenue by client segments
Middle Market Banking$980 $916 7 
Corporate Client Banking830 851 (2)
Commercial Real Estate Banking581 604 (4)
Other7 22 (68)
Total net revenue$2,398 $2,393 — %
Financial ratios
Return on equity13 %19 %
Overhead ratio47 40 
(a)Includes CB’s share of revenue from investment banking products sold to CB clients through the CIB.
(b)Refer to Business Segment Results on page 2117 for discussion of revenue sharing.
34

Quarterly results
Net income was $1.4 billion, up $2.1 billion, primarily reflecting the absence of an$850 million, down 28%, largely driven by a net increase in the allowanceprovision for credit losses recordedcompared with a net benefit in the prior year.
Net revenue was $2.5$2.4 billion, up 3%.flat compared to the prior year. Net interest income was $1.5 billion, down 3%up 4%, driven by deposit margin compression, predominantly offset by the impact of lower funding costs on loans.higher deposits. Noninterest revenue was $950$867 million, up 15%down 5%, driven by higherlower investment banking revenue, wholesale payments activity, and lending fees partiallypredominantly offset by the absence of a prior year equity investment gain.higher payments revenue.
Noninterest expense was $981 million,$1.1 billion, up 10%17%, predominantlylargely driven by investments in the business and higher volume- and revenue- related expense, and investments in the business.including compensation.
The provision for credit losses was a net benefit of $377$157 million, driven by a net reduction inaddition to the allowance for credit losses, compared with an expensea net benefit of $2.4 billion$118 million in the prior year.
Refer to Credit and Investment Risk Management on pages 56-7546-66 and Allowance for Credit Losses on pages 73-7463-65 for further discussions of the credit portfolios and the allowance for credit losses.
Year-to-dateresults
Net income was $2.6 billion, up $3.1 billion, primarily reflecting the absence of an increase in the allowance for credit losses recorded in the prior year.
Net revenue was $4.9 billion, up 7%. Net interest income was $3.0 billion, down 4%, driven by deposit margin compression, offset by the impact of lower funding costs on loans and higher deposit balances. Noninterest revenue was $1.9 billion, up 30%, predominantly driven by higher investment banking revenue and wholesale payments activity, partially offset by the absence of a prior year equity investment gain.
Noninterest expense was $2.0 billion, up 4%, driven by higher volume- and revenue-related expense and investments in the business.
The provision for credit losses was a net benefit of $495 million, driven by a net reduction in the allowance for credit losses, compared with an expense of $3.4 billion in the prior year.


35
27

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)20212020Change20212020Change
Selected balance sheet data (period-end)
Total assets$226,022 $235,034 (4)%$226,022 $235,034 (4)%
Loans:
Loans retained200,929 223,192 (10)200,929 223,192 (10)
Loans held-for-sale and loans at fair value3,381 917 269 3,381 917 269 
Total loans$204,310 $224,109 (9)$204,310 $224,109 (9)
Equity24,000 22,000 9 24,000 22,000 9 
Period-end loans by client segment
Middle Market Banking$59,314 (a)$64,211 (8)$59,314 (a)$64,211 (8)
Corporate Client Banking44,866 56,182 (20)44,866 56,182 (20)
Commercial Real Estate Banking99,858 103,117 (3)99,858 103,117 (3)
Other272 599 (55)272 599 (55)
Total loans$204,310 (a)$224,109 (9)$204,310 (a)$224,109 (9)
Selected balance sheet data (average)
Total assets$226,562 $247,512 (8)$226,071 $236,792 (5)
Loans:
Loans retained202,102 233,044 (13)203,127 221,516 (8)
Loans held-for-sale and loans at fair value3,150 502 NM2,866 1,167 146 
Total loans$205,252 $233,546 (12)$205,993 $222,683 (7)
Average loans by client segment
Middle Market Banking$61,698 $66,279 (7)$60,859 $61,162 — 
Corporate Client Banking43,440 63,308 (31)44,573 58,170 (23)
Commercial Real Estate Banking99,864 103,516 (4)100,260 102,521 (2)
Other250 443 (44)301 830 (64)
Total loans$205,252 $233,546 (12)$205,993 $222,683 (7)
Client deposits and other third-party liabilities$290,250 $236,968 22 $290,619 $212,888 37 
Equity24,000 22,000 9 24,000 22,000 9 
Headcount12,163 11,802 3 %12,163 11,802 3 %
Selected metrics
As of or for the three months
ended March 31,
(in millions, except headcount)20222021Change
Selected balance sheet data (period-end)
Total assets$235,127 $223,583 5 %
Loans:
Loans retained213,073 202,975 5 
Loans held-for-sale and loans at fair value1,743 2,884 (40)
Total loans$214,816 $205,859 4 
Equity25,000 24,000 4 
Period-end loans by client segment
Middle Market Banking(a)
$64,306  $59,983 7 
Corporate Client Banking46,720 45,540 3 
Commercial Real Estate Banking103,685 100,035 4 
Other105 301 (65)
Total loans(a)
$214,816  $205,859 4 
Selected balance sheet data (average)
Total assets$233,474 $225,574 4 
Loans:
Loans retained208,540 204,164 2 
Loans held-for-sale and loans at fair value2,147 2,578 (17)
Total loans$210,687 $206,742 2 
Average loans by client segment
Middle Market Banking$62,437 $60,011 4 
Corporate Client Banking45,595 45,719 — 
Commercial Real Estate Banking102,498 100,661 2 
Other157 351 (55)
Total loans$210,687 $206,742 2 
Client deposits and other third-party liabilities$316,921 $290,992 9 
Equity25,000 24,000 4 
Headcount13,220 11,748 13 %
(a)At June 30,March 31, 2022 and 2021, and 2020, total loans included $5.0 billion$640 million and $6.5$7.4 billion of loans, respectively, under the PPP, of which $4.9 billion$604 million and $6.3$7.2 billion were in Middle Market Banking, respectively. Refer to Credit Portfolio on page 5748 for a further discussion of the PPP.
36

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 March 31,
(in millions, except ratios)(in millions, except ratios)20212020Change20212020Change(in millions, except ratios)20222021Change
Credit data and quality statisticsCredit data and quality statisticsCredit data and quality statistics
Net charge-offs/(recoveries)Net charge-offs/(recoveries)$3 $79 (96)%$32 $179 (82)%Net charge-offs/(recoveries)$6 $29 (79)%
Nonperforming assetsNonperforming assetsNonperforming assets
Nonaccrual loans:Nonaccrual loans:Nonaccrual loans:
Nonaccrual loans retained(b)(a)
Nonaccrual loans retained(b)(a)
$1,006 $1,252 (20)%$1,006 $1,252 (20)%
Nonaccrual loans retained(b)(a)
$751 (c)$1,134 (34)%
Nonaccrual loans held-for-sale and loans at fair value(b)
Nonaccrual loans held-for-sale and loans at fair value(b)
2 125 (98)2 125 (98)
Nonaccrual loans held-for-sale and loans at fair value(b)
— — — 
Total nonaccrual loansTotal nonaccrual loans$1,008 $1,377 (27)$1,008 $1,377 (27)Total nonaccrual loans$751 $1,134 (34)
Assets acquired in loan satisfactionsAssets acquired in loan satisfactions17 24 (29)17 24 (29)Assets acquired in loan satisfactions17 24 (29)
Total nonperforming assetsTotal nonperforming assets$1,025 $1,401 (27)$1,025 $1,401 (27)Total nonperforming assets$768 $1,158 (34)
Allowance for credit losses:Allowance for credit losses:Allowance for credit losses:
Allowance for loan losses(b)
Allowance for loan losses(b)
$2,589 $4,730 (45)$2,589 $4,730 (45)
Allowance for loan losses(b)
$2,357 $3,086 (24)
Allowance for lending-related commitments(b)
Allowance for lending-related commitments(b)
870 807 8 870 807 8 
Allowance for lending-related commitments(b)
762 753 1 
Total allowance for credit lossesTotal allowance for credit losses$3,459 $5,537 (38)%$3,459 $5,537 (38)%Total allowance for credit losses$3,119 $3,839 (19)%
Net charge-off/(recovery) rate(c)(b)
Net charge-off/(recovery) rate(c)(b)
0.01 %0.14 %0.03 %0.16 %
Net charge-off/(recovery) rate(c)(b)
0.01 %0.06 %
Allowance for loan losses to period-end loans retained(b)
Allowance for loan losses to period-end loans retained(b)
1.29 2.12 1.29 2.12 
Allowance for loan losses to period-end loans retained(b)
1.11 1.52 
Allowance for loan losses to nonaccrual loans retained(b)(a)
Allowance for loan losses to nonaccrual loans retained(b)(a)
257 378 257 378 
Allowance for loan losses to nonaccrual loans retained(b)(a)
314 272 
Nonaccrual loans to period-end total loansNonaccrual loans to period-end total loans0.49 0.61 0.49 0.61 Nonaccrual loans to period-end total loans0.35 0.55 
(a)Allowance for loan losses of $188$104 million and $287$227 million was held against nonaccrual loans retained at June 30,March 31, 2022 and 2021, and 2020, respectively.
(b)Prior-period amounts have been revised to conform with the current presentation.
(c)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.

(c)At March 31, 2022, nonaccrual loans excluded $50 million of PPP loans 90 or more days past due and guaranteed by the SBA.
3728

ASSET & WEALTH MANAGEMENT
Refer to pages 80–8276-78 of JPMorgan Chase’s 20202021 Form 10-K and Line of Business Metrics on pages 188–189173-174 for a discussion of the business profile of AWM.
Selected income statement dataSelected income statement dataSelected income statement data
(in millions, except ratios)(in millions, except ratios)Three months ended June 30,Six months ended June 30,(in millions, except ratios)Three months ended March 31,
20212020Change20212020Change20222021Change
RevenueRevenueRevenue
Asset management, administration and commissionsAsset management, administration and commissions$3,019 $2,489 21 %$5,907 $5,072 16 %Asset management, administration and commissions$3,115 $2,888 8 %
All other incomeAll other income146 86 70 404 32 NMAll other income124 258 (52)
Noninterest revenueNoninterest revenue3,165 2,575 23 6,311 5,104 24 Noninterest revenue3,239 3,146 3 
Net interest incomeNet interest income942 855 10 1,873 1,715 9 Net interest income1,076 931 16 
Total net revenueTotal net revenue4,107 3,430 20 8,184 6,819 20 Total net revenue4,315 4,077 6 
Provision for credit lossesProvision for credit losses(10)223 NM(131)317 NMProvision for credit losses154 (121)NM
Noninterest expenseNoninterest expenseNoninterest expense
Compensation expenseCompensation expense1,356 1,178 15 2,745 2,404 14 Compensation expense1,530 1,389 10 
Noncompensation expenseNoncompensation expense1,230 1,145 7 2,415 2,354 3 Noncompensation expense1,330 1,185 12 
Total noninterest expenseTotal noninterest expense2,586 2,323 11 5,160 4,758 8 Total noninterest expense2,860 2,574 11 
Income before income tax expenseIncome before income tax expense1,531 884 73 3,155 1,744 81 Income before income tax expense1,301 1,624 (20)
Income tax expenseIncome tax expense378 223 70 758 414 83 Income tax expense293 364 (a)(20)
Net incomeNet income$1,153 $661 74 $2,397 $1,330 80 Net income$1,008 $1,260 (a)(20)
Revenue by line of businessRevenue by line of businessRevenue by line of business
Asset ManagementAsset Management$2,236 $1,780 26 $4,421 $3,520 26 Asset Management$2,314 $2,185 6 
Global Private Bank(a)
Global Private Bank(a)
1,871 1,650 13 3,763 3,299 14 
Global Private Bank(a)
2,001 1,892 6 
Total net revenueTotal net revenue$4,107 $3,430 20 %$8,184 $6,819 20 %Total net revenue$4,315 $4,077 6 %
Financial ratiosFinancial ratiosFinancial ratios
Return on equityReturn on equity32 %24 %34 %25 %Return on equity23 %36 
% (a)
Overhead ratioOverhead ratio63 68 63 70Overhead ratio66 63 

Pre-tax margin ratio:Pre-tax margin ratio:Pre-tax margin ratio:
Asset ManagementAsset Management37 30 36 27 Asset Management33 35 
Global Private Bank(a)
Global Private Bank(a)
38 21 41 24 
Global Private Bank(a)
27 45 
Asset & Wealth ManagementAsset & Wealth Management37 26 39 26 Asset & Wealth Management30 40 
(a)In the first quarter of 2021,2022, the Wealth Management business was renamed Global Private Bank. In the fourth quarter of 2020, certain wealth management clients were transferred from AWM Global Private BankFirm changed its methodology for allocating income taxes to the J.P. Morgan Wealth Management unit in CCB’s Consumer & Business Banking business. For further information see page 80 ofLOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the 2020 Form 10-K.current presentation.
Quarterly results
Net income was $1.2$1.0 billion, up 74%down 20%.
Net revenue was $4.1$4.3 billion, up 20%6%. Net interest income was $942 million,$1.1 billion, up 10%16%. Noninterest revenue was $3.2 billion, up 23%3%.
Revenue from Asset Management was $2.2$2.3 billion, up 26%, predominantly6% driven by:
•higher asset management fees, net of liquidity fee waivers, on strong cumulative net inflows into long-term products, and higher average market levels, net of liquidity fee waivers, andperformance fees,
partially offset by
•higher performance fees.lower net investment valuation gains.
Revenue from Global Private Bank was $1.9$2.0 billion, up 13%,6% driven by:
•higher deposit and loan balances, higher asset management fees andloans including the impact of lower funding costs, on loans, and
•growth in deposits, net of margin compression,
partially offset by deposit margin compression.

•lower brokerage fees on reduced volume.
Noninterest expense was $2.6$2.9 billion, up 11% predominantly driven by higher structural expense and investments in the business, largely driven by compensation, and higher volume- and revenue-related expense, primarily performance-related compensation andincluding distribution expense.fees.
The provision for credit losses was $154 million, driven by an addition to the allowance for credit losses, compared with a net benefit of $10 million, compared with an expense of $223$121 million in the prior year.
Refer to Credit and Investment Risk Management on pages 56-7546-66 and Allowance for Credit Losses on pages 73-7463-65 for further discussions of the credit portfolios and the allowance for credit losses.
Year-to-date results
Net income was $2.4 billion, an increase of 80%.
Net revenue was $8.2 billion, an increase of 20%. Net interest income was $1.9 billion, up 9%. Noninterest revenue was $6.3 billion, up 24%.

38
29

Revenue from Asset Management was $4.4 billion, up 26%, predominantly driven by:
•higher asset management fees on strong cumulative net inflows into long-term and liquidity products and higher average market levels, net of liquidity fee waivers, and
•net investment valuation gains, compared with losses in the prior year.
Revenue from Global Private Bank was $3.8 billion, up 14%, largely driven by:
•higher deposit and loan balances, higher asset management fees and the impact of lower funding costs on loans, partially offset by deposit margin compression.
Noninterest expense was $5.2 billion, an increase of 8%, driven by higher volume- and revenue-related expense, primarily performance-related compensation and distribution expense, partially offset by lower structural expense.
The provision for credit losses was a net benefit of $131 million, driven by a reduction in the allowance for credit losses, compared with an expense of $317 million in the prior year.

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 ranking data, headcount and ratios)20212020Change20212020Change
% of JPM mutual fund assets rated as 4- or 5-star(a)
62 %54 %62 %54 %
% of JPM mutual fund assets ranked in 1st or 2nd quartile:(b)
1 year72 54 72 54 
3 years77 69 77 69 
5 years74 72 74 72 
Selected balance sheet data (period-end)(c)
Total assets$217,284 $176,782 23 %$217,284 $176,782 23 %
Loans198,683 162,904 22 198,683 162,904 22 
Deposits217,488 160,993 35 217,488 160,993 35 
Equity14,000 10,500 33 14,000 10,500 33 
Selected balance sheet data (average)(c)
Total assets$214,384 $175,887 22 $210,963 $175,361 20 
Loans195,171 161,196 21 191,966 160,355 20 
Deposits219,699 160,102 37 213,167 152,336 40 
Equity14,000 10,500 33 14,000 10,500 33 
Headcount20,866 21,273 (2)20,866 21,273 (2)
Number of Global Private Bank client advisors2,435 2,409 1 2,435 2,409 1 
Credit data and quality statistics(c)
Net charge-offs/(recoveries)$12 $(2)NM$23 $— NM
Nonaccrual loans792 771 3 792 771 3 
Allowance for credit losses:
Allowance for loan losses$458 $646 (29)$458 $646 (29)
Allowance for lending-related commitments25 28 (11)25 28 (11)
Total allowance for credit losses$483 $674 (28)%$483 $674 (28)%
Net charge-off/(recovery) rate0.02 %— %0.02 %— %
Allowance for loan losses to period-end loans0.23 0.40 0.23 0.40 
Allowance for loan losses to nonaccrual loans58 84 58 84 
Nonaccrual loans to period-end loans0.40 0.47 0.40 0.47 
Selected metrics
As of or for the three months
ended March 31,
(in millions, except ranking data, headcount and ratios)20222021Change
% of JPM mutual fund assets rated as 4- or 5-star(a)
73 %66 %
% of JPM mutual fund assets ranked in 1st or 2nd quartile:(b)
1 year62 62 
3 years73 73 
5 years81 78 
Selected balance sheet data (period-end)(c)
Total assets$233,070 $213,088 9 %
Loans215,130 192,256 12 
Deposits287,293 217,460 32 
Equity17,000 14,000 21 
Selected balance sheet data (average)(c)
Total assets$232,310 $207,505 12 
Loans214,611 188,726 14 
Deposits287,756 206,562 39 
Equity17,000 14,000 21 
Headcount23,366 20,578 14 
Number of Global Private Bank client advisors2,798 2,462 14 
Credit data and quality statistics(c)
Net charge-offs/(recoveries)$(1)$11 NM
Nonaccrual loans626 917 (d)(32)
Allowance for credit losses:
Allowance for loan losses$516 $479 8
Allowance for lending-related commitments19 25 (24)
Total allowance for credit losses$535 $504 6%
Net charge-off/(recovery) rate— %0.02 %
Allowance for loan losses to period-end loans0.24 0.25 
Allowance for loan losses to nonaccrual loans82 52 (d)
Nonaccrual loans to period-end loans0.29 0.48 (d)
(a)Represents the Nomura “star rating”Morningstar Rating for all domiciled funds except for Japan domiciled funds and Morningstar for all other domiciled funds.which use Nomura. Includes only Asset Management retail open-ended mutual funds that have a rating. Excludes money market funds, Undiscovered Managers Fund, and Brazil domiciled funds. Prior-period amounts were revised to conform with the current period presentation.
(b)Quartile ranking sourced from Morningstar, Lipper Morningstar and Nomura based on country of domicile. 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 domiciled funds. Prior-period amounts were revised to conform with the current period presentation.
(c)Loans, deposits and related credit data and quality statistics relate to the Global Private Bank business.
39

(d)Prior-period amounts have been revised to conform with the current presentation.
Client assets
Client assets of $4.0$4.1 trillion and assets under management of $3.0 trillion were up 25%8% and 21%4%, respectively, predominantly driven by higher market levels and cumulative net inflows into long term products.inflows.
Client assetsClient assetsClient assets
As of June 30,As of March 31,
(in billions)(in billions)20212020Change(in billions)20222021Change
Assets by asset classAssets by asset classAssets by asset class
LiquidityLiquidity$698 $704 (1)%Liquidity$657 $686 (4)%
Fixed incomeFixed income688 618 11 Fixed income657 662 (1)
EquityEquity725 448 62 Equity739 661 12 
Multi-assetMulti-asset702 566 24 Multi-asset699 669 4 
AlternativesAlternatives174 140 24 Alternatives208 155 34 
Total assets under managementTotal assets under management2,987 2,476 21 Total assets under management2,960 2,833 4 
Custody/brokerage/administration/depositsCustody/brokerage/administration/deposits1,057 765 38 Custody/brokerage/administration/deposits1,156 995 16 
Total client assets(a)
Total client assets(a)
$4,044 $3,241 25 
Total client assets(a)
$4,116 $3,828 8 
Assets by client segmentAssets by client segmentAssets by client segment
Private BankingPrivate Banking$752 $631 19 Private Banking$777 $718 8 
Global Institutional(b)
1,383 1,228 13 
Global Funds(b)
852 617 38 
Global InstitutionalGlobal Institutional1,355 1,320 3 
Global FundsGlobal Funds828 795 4 
Total assets under managementTotal assets under management$2,987 $2,476 21 Total assets under management$2,960 $2,833 4 
Private BankingPrivate Banking$1,755 $1,360 29 Private Banking$1,880 $1,664 13 
Global Institutional(b)
1,430 1,259 14 
Global Funds(b)
859 622 38 
Global InstitutionalGlobal Institutional1,402 1,362 3 
Global FundsGlobal Funds834 802 4 
Total client assets(a)
Total client assets(a)
$4,044 $3,241 25 %
Total client assets(a)
$4,116 $3,828 8 %
(a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager.
(b)In the first quarter of 2021, Institutional and Retail client segments were renamed to Global Institutional and Global Funds, respectively. This did not result in a change to the clients within either client segment.
Client assets (continued)

Three months ended March 31,
(in billions)20222021
Assets under management rollforward
Beginning balance$3,113 $2,716 
Net asset flows:
Liquidity(52)44 
Fixed income(3)8 
Equity11 31 
Multi-asset6 6 
Alternatives5 3 
Market/performance/other impacts(120)25 
Ending balance, March 31$2,960 $2,833 
Client assets rollforward
Beginning balance$4,295 $3,652 
Net asset flows(5)130 
Market/performance/other impacts(174)46 
Ending balance, March 31$4,116 $3,828 
Client assets (continued)

Three months ended June 30,Six months ended June 30,
(in billions)2021202020212020
Assets under management rollforward
Beginning balance$2,833 $2,210 $2,716 $2,328 
Net asset flows:
Liquidity15 93 59 170 
Fixed income17 18 25 18 
Equity20 11 51 10 
Multi-asset2 (2)8 (4)
Alternatives10 3 13 3 
Market/performance/other impacts90 143 115 (49)
Ending balance, June 30$2,987 $2,476 $2,987 $2,476 
Client assets rollforward
Beginning balance$3,828 $2,891 $3,652 $3,089 
Net asset flows75 135 205 226 
Market/performance/other impacts141 215 187 (74)
Ending balance, June 30$4,044 $3,241 $4,044 $3,241 
4030

International
Three months ended June 30,Six months ended June 30,
(in millions)20212020Change20212020Change
Total net revenue (a)
Europe/Middle East/Africa$888 $719 24 %$1,722 $1,342 28 %
Asia-Pacific496 378 31 1,010 778 30 
Latin America/Caribbean216 198 9 430 386 11 
Total international net revenue1,600 1,295 24 3,162 2,506 26 
North America2,507 2,135 17 5,022 4,313 16 
Total net revenue(a)
$4,107 $3,430 20 %$8,184 $6,819 20 %
International
Three months ended March 31,
(in millions)20222021Change
Total net revenue (a)
Europe/Middle East/Africa$770 $834 (8)%
Asia-Pacific460 514 (11)
Latin America/Caribbean251 214 17 
Total international net revenue1,481 1,562 (5)
North America2,834 2,515 13 
Total net revenue(a)
$4,315 $4,077 6 %
(a)Regional revenue is based on the domicile of the client.
As of June 30,As of June 30,As of March 31,
(in billions)(in billions)20212020Change20212020Change(in billions)20222021Change
Assets under managementAssets under managementAssets under management
Europe/Middle East/AfricaEurope/Middle East/Africa$558 $446 25 %$558 $446 25 %Europe/Middle East/Africa$532 $521 2 %
Asia-PacificAsia-Pacific245 205 20 245 205 20 Asia-Pacific237 228 4 
Latin America/CaribbeanLatin America/Caribbean75 64 17 75 64 17 Latin America/Caribbean75 71 6 
Total international assets under managementTotal international assets under management878 715 23 878 715 23 Total international assets under management844 820 3 
North AmericaNorth America2,109 1,761 20 2,109 1,761 20 North America2,116 2,013 5 
Total assets under managementTotal assets under management$2,987 $2,476 21 $2,987 $2,476 21 Total assets under management$2,960 $2,833 4 
Client assetsClient assetsClient assets
Europe/Middle East/AfricaEurope/Middle East/Africa$674 $537 26 $674 $537 26 Europe/Middle East/Africa$653 $629 4 
Asia-PacificAsia-Pacific363 286 27 363 286 27 Asia-Pacific354 338 5 
Latin America/CaribbeanLatin America/Caribbean176 148 19 176 148 19 Latin America/Caribbean190 168 13 
Total international client assetsTotal international client assets1,213 971 25 1,213 971 25 Total international client assets1,197 1,135 5 
North AmericaNorth America2,831 2,270 25 2,831 2,270 25 North America2,919 2,693 8 
Total client assetsTotal client assets$4,044 $3,241 25 %$4,044 $3,241 25 %Total client assets$4,116 $3,828 8 %

4131

CORPORATE
Refer to pages 83–8479-80 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of Corporate.
Selected income statement and balance sheet dataSelected income statement and balance sheet dataSelected 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 March 31,
(in millions, except headcount)(in millions, except headcount)20212020Change20212020Change(in millions, except headcount)20222021Change
RevenueRevenueRevenue
Principal transactionsPrincipal transactions$(8)$(2)(300)%$264 $(115)NMPrincipal transactions$(161)$272 NM
Investment securities gains/(losses)Investment securities gains/(losses)(155)26 NM(141)259 NMInvestment securities gains/(losses)(394)14 NM
All other incomeAll other income(45)(91)51 51 120 (58)%All other income210 96 119 %
Noninterest revenueNoninterest revenue(208)(67)(210)174 264 (34)Noninterest revenue(345)382 NM
Net interest incomeNet interest income(961)(687)(40)(1,816)(852)(113)Net interest income(536)(855)37 
Total net revenue(a)
Total net revenue(a)
(1,169)(754)(55)(1,642)(588)(179)
Total net revenue(a)
(881)(473)(86)
Provision for credit lossesProvision for credit losses49 4 NM65 12 442 Provision for credit losses29 16 81 
Noninterest expenseNoninterest expense515 147 250 1,391 293 375 Noninterest expense184 876 (79)
Income/(loss) before income tax expense/(benefit)Income/(loss) before income tax expense/(benefit)(1,733)(905)(91)(3,098)(893)(247)Income/(loss) before income tax expense/(benefit)(1,094)(1,365)20 
Income tax expense/(benefit)Income tax expense/(benefit)(489)(337)(45)(1,274)(200)NMIncome tax expense/(benefit)(238)(513)(b)54 
Net income/(loss)Net income/(loss)$(1,244)$(568)(119)$(1,824)$(693)(163)Net income/(loss)$(856)$(852)(b)— 
Total net revenueTotal net revenueTotal net revenue
Treasury and CIOTreasury and CIO$(1,081)$(671)(61)$(1,786)$(502)(256)Treasury and CIO$(944)$(705)(34)
Other CorporateOther Corporate(88)(83)(6)144 (86)NMOther Corporate63 232 (73)
Total net revenueTotal net revenue$(1,169)$(754)(55)$(1,642)$(588)(179)Total net revenue$(881)$(473)(86)
Net income/(loss)Net income/(loss)Net income/(loss)
Treasury and CIOTreasury and CIO$(956)$(550)(74)$(1,631)$(467)(249)Treasury and CIO$(748)$(675)(11)
Other CorporateOther Corporate(288)(18)NM(193)(226)15 Other Corporate(108)(177)(b)39 
Total net income/(loss)Total net income/(loss)$(1,244)$(568)(119)$(1,824)$(693)(163)Total net income/(loss)$(856)$(852)(b)— 
Total assets (period-end)Total assets (period-end)$1,382,653 $1,221,980 13 $1,382,653 $1,221,980 13 Total assets (period-end)$1,539,844 $1,409,564 9 
Loans (period-end)Loans (period-end)1,530 1,670 (8)1,530 1,670 (8)Loans (period-end)1,957 1,627 20 
Headcount(b)
Headcount(b)
37,520 38,920 (4)%37,520 38,920 (4)%
Headcount(b)
39,802 38,168 4 %
(a)Included tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of $66$58 million and $63$67 million for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $133 million and $124 million for the six months ended June 30, 2021 and 2020, respectively.
(b)DuringIn the six months ended June 30, 2021, 1,155 technology and risk management employees were transferred from Corporatefirst quarter of 2022, the Firm changed its methodology for allocating income taxes to CIB.the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation.
Quarterly results
Net loss was $1.2 billion$856 million compared with a net loss of $568$852 million in the prior year.
Net revenue was a loss of $1.2 billion, down $415$881 million, driven by:compared with a loss of $473 million in the prior year.
Noninterest revenue decreased primarily due to:
•limited deployment opportunities as deposit growth continued,net losses on certain legacy private equity investments, compared with net gains in the prior year, and
•net investment securities losses on sales of U.S. Treasuries and U.S. GSE and government agency MBS, compared with net gains in the current quarter reflecting the impact ofprior year, associated with repositioning the investment securities portfolio.portfolios in both periods,
partially offset by
•proceeds from an insurance settlement.
Net interest income increased primarily driven by higher rates, which resulted in slower prepayments.
Noninterest expense of $515$184 million was up $368down $691 million predominantly dueprimarily driven by the absence of the contribution to higher legal and technology expense.the Firm's Foundation recorded in the prior year.
The current period income tax benefit was predominantlydriven by the change in the level and mix of income and expenses subject to U.S. federal and state and local taxes.



Other Corporate also reflects the Firm's International Consumer activity, which includes Chase U.K., the Firm's digital retail bank in the U.K.; Nutmeg, a digital wealth manager in the U.K.; and a 40% ownership stake in C6 Bank, a digital bank in Brazil, which closed in the current quarter.


Year-to-date results
Net loss was $1.8 billion compared with a net loss of $693 million in the prior year.
Net revenue was a loss of $1.6 billion, compared with a loss of $588 million in the prior year, predominantly driven by lower net interest income on limited deployment opportunities as deposit growth continued as well as lower rates.
Noninterest revenue decreased primarily due to net investment securities losses compared to net gains in the prior year reflecting repositioning of the investment securities portfolio in both periods, largely offset by net gains on certain legacy private equity investments,
Noninterest expense of $1.4 billion was up $1.1 billion driven by a higher contribution to the Firm's Foundation and higher legal and technology expense.
The current period income tax benefit was driven by the change in the level and mix of income and expenses subject to U.S. federal and state and local taxes as well as the impact of the Firm's estimated full-year expected tax rate relative to the level of year-to-date pretax income, partially offset by the resolution of certain tax audits.
4232

Treasury and CIO overview
At June 30, 2021,March 31, 2022, the average credit rating of the Treasury and CIO investment securities comprising the portfolio in the table below was AA+ (based upon external ratings where available and, where not available, based primarily upon internal risk ratings). Refer to Note 9 for further information on the Firm’s investment securities portfolio and internal risk ratings.
Refer to Liquidity Risk Management on pages 51-5541-45 for further information on liquidity and funding risk. Refer to Market Risk Management on pages 76-8067-71 for information on interest rate and foreign exchange risks.
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)20212020Change20212020Change
Investment securities gains/(losses)$(155)$26 NM$(141)$259 NM
Available-for-sale securities (average)$342,338 $426,470 (20)%$357,307 $399,712 (11)%
Held-to-maturity securities (average)(a)
240,696 71,713 236 224,417 59,193 279 
Investment securities portfolio (average)$583,034 $498,183 17 $581,724 $458,905 27 
Available-for-sale securities (period-end)$230,127 $483,752 (52)$230,127 $483,752 (52)
Held-to-maturity securities, net of allowance for credit losses (period-end)(a)
341,476 72,908 368 341,476 72,908 368 
Investment securities portfolio, net of allowance for credit losses (period-end)(b)
$571,603 $556,660 3 %$571,603 $556,660 3 %
Selected income statement and balance sheet data
As of or for the three months
ended March 31,
(in millions)20222021Change
Investment securities gains/(losses)$(394)$14 NM
Available-for-sale securities (average)$304,314 $372,443 (18)%
Held-to-maturity securities (average)(a)
364,814 207,957 75 
Investment securities portfolio (average)$669,128 $580,400 15 
Available-for-sale securities (period-end)$310,909 $377,911 (18)
Held-to-maturity securities, net of allowance for credit losses (period-end)(a)
366,585 217,452 69 
Investment securities portfolio, net of allowance for credit losses (period-end)(b)
$677,494 $595,363 14 %
(a)During the second quarter of 2021, and the full year 2020, the Firm transferred $104.5 billion and $164.2 billion of investment securities respectively, from AFS to HTM for capital management purposes.
(b)At June 30,March 31, 2022 and 2021, and 2020, the allowance for credit losses on investment securities was $87$41 million and $23$94 million, respectively.
In April 2022, the Firm transferred $65.9 billion of investment securities from AFS to HTM for capital management purposes. AOCI included pretax unrealized losses of $4.7 billion on the securities at the date of transfer.
43
33

FIRMWIDE RISK MANAGEMENT
Risk is an inherent part of JPMorgan Chase’s business activities. When the Firm extends a consumer or wholesale loan, advises customers and clients on their investment decisions, makes markets in securities, or offers other products or services, the Firm takes on some degree of risk. The Firm’s overall objective is to manage its 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, among other things:
•Acceptance of responsibility, including identification and escalation of risks by all individuals within the Firm;
•Ownership of risk identification, assessment, data and management within each of the LOBs and Corporate; and
•Firmwide structures for risk governance.
The Firm follows a disciplined and balanced compensation framework with strong internal governance and independent oversight by the Board of Directors (the “Board”). The impact of risk and control issues is carefully considered in the Firm’s performance evaluation and incentive compensation processes.
Risk governance and oversight framework
The Firm’s risk management governance and oversight framework involves understanding drivers of risks, types of risks, and impacts of risks.
jpm-20220331_g1.jpg
Refer to pages 85-8981-84 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion of Firmwide risk management governance and oversight.
Risk governance and oversight functions
The following sections of this Form 10-Q and the 20202021 Form 10-K discuss the risk governance and oversight functions in place to manage the risks inherent in the Firm’s business activities.
Risk governance and oversight functionsRisk governance and oversight functionsForm 10-Q page referenceForm 10-K page referenceRisk governance and oversight functionsForm 10-Q page referenceForm 10-K page reference
Strategic riskStrategic risk90Strategic risk85
Capital riskCapital risk45-5091-101Capital risk35-4086-96
Liquidity riskLiquidity risk51-55102-108Liquidity risk41-4597-104
Reputation riskReputation risk109Reputation risk105
Consumer credit riskConsumer credit risk58-62114-120Consumer credit risk49-53110-116
Wholesale credit riskWholesale credit risk63-72121-131Wholesale credit risk54-62117-128
Investment portfolio riskInvestment portfolio risk75134Investment portfolio risk66132
Market riskMarket risk76-80135-142Market risk67-71133-140
Country riskCountry risk81143-144Country risk72-73141-142
Operational riskOperational risk82145-151Operational risk74143-149
Compliance riskCompliance risk148Compliance risk146
Conduct riskConduct risk149Conduct risk147
Legal riskLegal risk150Legal risk148
Estimations and Model riskEstimations and Model risk83151Estimations and Model risk149
4434

CAPITAL RISK MANAGEMENT
Capital risk is the risk the Firm has an insufficient level or composition of capital to support the Firm’s business activities and associated risks during normal economic environments and under stressed conditions.
The Firm has been impacted by market events as a result of the COVID-19 pandemic, but has remained well-capitalized.
Refer to pages 91-10186-96 of JPMorgan Chase’s 20202021 Form
10-K, Note 21 of this Form 10-Q and the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for a further discussion of the Firm’s Capital Risk Management, including capital planning and stress testing.Management.
Basel III Overview
The capital rules under Basel III establish minimum capital ratios and overall capital adequacy standards for large and internationally active U.S. Bank Holding Companies ("BHCs") and banks, including the Firm and its insured depository institution (“IDI”) subsidiaries, including JPMorgan Chase Bank, N.A. The minimum amount of regulatory capital that must be held by BHCs and banks is determined by calculating risk-weighted assets (“RWA”), which are on-balance sheet assets and off-balance sheet exposures, weighted according to risk. Two comprehensive approaches are prescribed for calculating RWA: a standardized approach (“Basel III Standardized”), and an advanced approach (“Basel III Advanced”). For each of the risk-based capital ratios, the capital adequacy of the Firm is evaluated against the lower of the Standardized or Advanced approaches compared to their respective minimumregulatory capital ratios.
ratio requirements. The Firm’s Basel III Standardized-risk-based ratios are currently more binding than the Basel III Advanced-risk-based ratios.
Basel III also includes a requirement for Advanced ApproachApproaches banking organizations, including the Firm, to calculate the SLR. The Firm’s SLR is currently more binding than the Basel III Standardized-risk-based ratios. Refer to SLR on page 4838 for additional information.
Key Regulatory Developments
CECL regulatory capital transition. On December 31, 2021, the CECL capital transition delay. provisionsAs part of their response to the impact of the COVID-19 pandemic, the federal banking agencies issued a final rule that provided the option beginning January 1, 2020 to delay, which delayed the effects of CECL on regulatory capital for two years, followed by a
three-year transition period beginningexpired. Beginning January 1, 2022, (“the $2.9 billion CECL capital transition provisions”).
The Firm has elected to applybenefit recognized as of December 31, 2021, will be phased out at 25% per year over a three-year period. As of March 31, 2022, CET1 capital reflected the remaining 75%, or $2.2 billion, benefit associated with the CECL capital transition provisions, and accordingly, for the period ended June 30, 2021, the capital metrics ofprovisions.
Additionally, effective January 1, 2022, the Firm exclude $3.8 billion, which is the $2.7 billion day 1 impact to retained earnings andphased out 25% of the $4.0 billion increase in the allowance for credit losses from January 1, 2020 (excluding allowances on PCD loans).
The impacts of theother relevant CECL capital transition provisions have also been incorporated intorecognized as of December 31, 2021, from Tier 2 capital, adjusted average assets, and total leverage exposure.
Refer to Capital Risk Management on pages 91-10186-96 and Note 1 of JPMorgan Chase’s 20202021 Form 10-K for further information on CECL capital transition provisions and the CECL accounting guidance.
PPP. On April 13, 2020,As of March 31, 2022, the federal banking agencies issued an interim final rule (issued as final on September 29, 2020) to neutralize the regulatory capital effectsFirm had $3.6 billion of participating inloans remaining under the PPP on risk-based capital ratios by applyingprogram, which receive a zero percent risk weight to loans originated under the program.federal banking agencies’ regulatory capital rule. The Firm does not expect to realize material credit losses on PPP loans because the loans are guaranteed by the SBA. As of June 30, 2021, the Firm had approximately $23 billion of loans remaining under the program.
Total leverage exposure for purposes of calculating the SLR includes PPP loans as the Firm did not participate in the Federal Reserve’s Paycheck Protection Program Lending Facility, which would have allowed the Firm to exclude them under the final rule.
TLAC Holdings ruleStandardized Approach for Counterparty Credit Risk. . On October 20, 2020,January 1, 2022, the federal banking agencies issued a final rule prescribingFirm adopted “Standardized Approach for Counterparty Credit Risk” (“SA-CCR”), which replaced the Current Exposure Method used to measure derivatives counterparty exposure under Standardized approach RWA and Advanced approach RWA where internal models are not used, as well as leverage exposure used to calculate the SLR in the regulatory capital treatment for holdings of Total Loss-Absorbing Capacity ("TLAC") debt instrumentsframework. The rule issued by certain largethe U.S. banking regulators in November 2019 applies to Basel III Advanced Approaches banking organizations, such as the Firm and JPMorgan Chase Bank, N.A. This rule expands the scope of the existing capital deductions rule around the holdings of capital instruments of financial institutions to also include TLAC debt instruments issued by systemically important banking organizations. The final rule became effective April 1, 2021 and did not have a material impact
Based on the derivatives exposure as of December 31, 2021, the adoption of SA-CCR increased the Firm’s risk-basedStandardized RWA by approximately $40 billion, a decrease of approximately 30 bps to the Firm's CET1 capital metrics.ratio at March 31, 2022, and resulted in a modest decrease in its total leverage exposure. In addition, the adoption of SA-CCR increased the Firm's Advanced RWA at March 31, 2022, but to a lesser extent than Standardized.

4535

The following tables present the Firm’s risk-based capital metrics under both the Basel III Standardized and Advanced approaches and leverage-based capital metrics. Refer to Capital Risk Management on pages 91-10186-96 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion of these capital metrics.
StandardizedAdvancedStandardizedAdvanced
(in millions, except ratios)(in millions, except ratios)
June 30, 2021(a)
December 31, 2020(a)
Minimum capital ratios(b)
June 30, 2021(a)
December 31, 2020(a)
Minimum capital ratios(b)
(in millions, except ratios)March 31, 2022December 31, 2021
Capital ratio requirements(b)
March 31, 2022December 31, 2021
Capital ratio requirements(b)
Risk-based capital metrics:(a)Risk-based capital metrics:(a)Risk-based capital metrics:(a)
CET1 capitalCET1 capital$209,010 $205,078 $209,010 $205,078 CET1 capital$207,903 $213,942 $207,903 $213,942 
Tier 1 capitalTier 1 capital241,356 234,844 241,356 234,844 Tier 1 capital240,076 246,162 240,076 246,162 
Total capitalTotal capital274,443 269,923 262,364 257,228 Total capital269,536 274,900 258,989 265,796 
Risk-weighted assetsRisk-weighted assets1,601,631 1,560,609 1,514,386 1,484,431 Risk-weighted assets1,750,678 1,638,900 1,643,453 1,547,920 
CET1 capital ratioCET1 capital ratio13.0 %13.1 %11.3 %13.8 %13.8 %10.5 %CET1 capital ratio11.9 %13.1 %11.2 %12.7 %13.8 %10.5 %
Tier 1 capital ratioTier 1 capital ratio15.1 15.0 12.8 15.9 15.8 12.0 Tier 1 capital ratio13.7 15.0 12.7 14.6 15.9 12.0 
Total capital ratioTotal capital ratio17.1 17.3 14.8 17.3 17.3 14.0 Total capital ratio15.4 16.8 14.7 15.8 17.2 14.0 
(a)The capital metrics reflect the CECL capital transition provisions. Additionally, loans originated under the PPP receive a zero percent risk weight.
(b)Represents minimum requirements and regulatory buffers applicable to the Firm. Refer to Note 21 for additional information.
(in millions, except ratios)
June 30, 2021(b)
December 31, 2020(b)(c)
Minimum capital ratios(d)
Three months ended
(in millions, except ratios)		Three months ended
(in millions, except ratios)		March 31, 2022December 31, 2021
Capital ratio requirements(c)
Leverage-based capital metrics:(a)Leverage-based capital metrics:(a)Leverage-based capital metrics:(a)
Adjusted average assets(a)(b)
Adjusted average assets(a)(b)
$3,680,830 $3,353,319 
Adjusted average assets(a)(b)
$3,857,783 $3,782,035 
Tier 1 leverage ratioTier 1 leverage ratio6.6 %7.0 %4.0 %Tier 1 leverage ratio6.2 %6.5 %4.0 %
Total leverage exposureTotal leverage exposure$4,456,557 $3,401,542 Total leverage exposure$4,586,537 $4,571,789 
SLRSLR5.4 %6.9 %5.0 %SLR5.2 %5.4 %5.0 %
(a)The capital metrics reflect the CECL capital transition provisions.
(b)Adjusted average assets, for purposes of calculating the leverage ratios, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, and other intangible assets.
(b)The capital metrics reflect the CECL capital transition provisions.
(c)Total leverage exposure for purposes of calculating the SLR excludes U.S. Treasury securities and deposits at Federal Reserve Banks, as provided by the rule issued by the Federal Reserve which became effective April 1, 2020 and remained in effect through March 31, 2021. The SLR excluding the relief was 5.8% for the period ended December 31, 2020.
(d)Represents minimum requirements and regulatory buffers applicable to the Firm. Refer to Note 21 for additional information.
4636

Capital components
The following table presents reconciliations of total stockholders’ equity to Basel III CET1 capital, Tier 1 capital and Total capital as of June 30, 2021March 31, 2022 and December 31, 2020.
(in millions)June 30,
2021		December 31, 2020
Total stockholders’ equity$286,386 $279,354 
Less: Preferred stock32,838 30,063 
Common stockholders’ equity253,548 249,291 
Add:
Certain deferred tax liabilities(a)
2,461 2,453 
Other CET1 capital adjustments(b)
3,107 3,486 
Less:
Goodwill49,256 49,248 
Other intangible assets850 904 
Standardized/Advanced CET1 capital209,010 205,078 
Preferred stock32,838 30,063 
Less: Other Tier 1 adjustments492 297 
Standardized/Advanced Tier 1 capital$241,356 $234,844 
Long-term debt and other instruments qualifying as Tier 2 capital$15,588 $16,645 
Qualifying allowance for credit losses(c)
17,854 18,372 
Other(355)62 
Standardized Tier 2 capital$33,087 $35,079 
Standardized Total capital$274,443 $269,923 
Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(d)
(12,079)(12,695)
Advanced Tier 2 capital$21,008 $22,384 
Advanced Total capital$262,364 $257,228 
2021.
(in millions)March 31,
2022		December 31, 2021
Total stockholders’ equity$285,899 $294,127 
Less: Preferred stock32,838 34,838 
Common stockholders’ equity253,061 259,289 
Add:
Certain deferred tax liabilities(a)
2,496 2,499 
Other CET1 capital adjustments(b)
4,637 3,351 
Less:
Goodwill51,398 (e)50,315 
Other intangible assets893 882 
Standardized/Advanced CET1 capital$207,903 $213,942 
Preferred stock32,838 34,838 
Less: Other Tier 1 adjustments665 2,618 (f)
Standardized/Advanced Tier 1 capital$240,076 $246,162 
Long-term debt and other instruments qualifying as Tier 2 capital$13,258 $14,106 
Qualifying allowance for credit losses(c)
16,668 15,012 
Other(466)(380)
Standardized Tier 2 capital$29,460 $28,738 
Standardized Total capital$269,536 $274,900 
Adjustment in qualifying allowance for credit losses for Advanced Tier 2 capital(d)
(10,547)(9,104)
Advanced Tier 2 capital$18,913 $19,634 
Advanced Total capital$258,989 $265,796 
(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 CET1 capital.
(b)As of June 30, 2021March 31, 2022 and December 31, 2020,2021, the impact of the CECL capital transition provision was an increase ina benefit to CET1 capital of $3.8$2.2 billion and $5.7$2.9 billion, respectively.
(c)Represents the allowance for credit losses eligible for inclusion in Tier 2 capital up to 1.25% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA.
(d)Represents an adjustment to qualifying allowance for credit losses for the excess of eligible credit reserves over expected credit losses up to 0.6% of credit risk RWA, including the impact of the CECL capital transition provision with any excess deducted from RWA.
(e)Includes estimated equity method goodwill related to the Firm's investment in C6 Bank.
(f)Other Tier 1 Capital adjustments included $2.0 billion of Series Z preferred stock called for redemption on December 31, 2021 and subsequently redeemed on February 1, 2022.


Capital rollforward
The following table presents the changes in Basel III CET1 capital, Tier 1 capital and Tier 2 capital for the sixthree months ended June 30, 2021.March 31, 2022.
SixThree months ended June 30,March 31,
(in millions)		20212022
Standardized/Advanced CET1 capital at December 31, 20202021$205,078213,942 
Net income applicable to common equity25,4767,885 
Dividends declared on common stock(5,483)(2,976)
Net purchase of treasury stock(10,120)(1,499)
Changes in additional paid-in capital(200)(155)
Changes related to AOCI(5,416)(9,483)
Adjustment related to AOCI(a)
1,5912,145 
Changes related to other CET1 capital adjustments(b)
(1,916)(1,956)
Change in Standardized/Advanced CET1 capital3,932 (6,039)
Standardized/Advanced CET1 capital at June 30, 2021March 31, 2022$209,010207,903 
Standardized/Advanced Tier 1 capital at December 31, 20202021$234,844246,162 
Change in CET1 capital(b)
3,932 (6,039)
Net issuance of noncumulative perpetual preferred stock2,775— 

Other(195)(47)
Change in Standardized/Advanced Tier 1 capital6,512 (6,086)
Standardized/Advanced Tier 1 capital at June 30, 2021March 31, 2022$241,356240,076 
Standardized Tier 2 capital at December 31, 20202021$35,07928,738 
Change in long-term debt and other instruments qualifying as Tier 2(1,057)(848)
Change in qualifying allowance for credit losses(b)
(518)1,656 
Other(417)(86)
Change in Standardized Tier 2 capital(1,992)722 
Standardized Tier 2 capital at June 30, 2021March 31, 2022$33,08729,460 
Standardized Total capital at June 30, 2021March 31, 2022$274,443269,536 
Advanced Tier 2 capital at December 31, 20202021$22,38419,634 
Change in long-term debt and other instruments qualifying as Tier 2(1,057)(848)
Change in qualifying allowance for credit losses(b)
98213 
Other(417)(86)
Change in Advanced Tier 2 capital(1,376)(721)
Advanced Tier 2 capital at June 30, 2021March 31, 2022$21,00818,913 
Advanced Total capital at June 30, 2021March 31, 2022$262,364258,989 
(a)Includes cash flow hedges and debit valuation adjustment ("DVA") related to structured notes recorded in AOCI.
(b)Includes the impact of the CECL capital transition provisions.
4737

RWA rollforward
The following table presents changes in the components of RWA under Basel III Standardized and Advanced approaches for the sixthree months ended June 30, 2021.March 31, 2022. The amounts in the rollforward categories are estimates, based on the predominant driver of the change. The increase in both Standardized and Advanced Market risk RWA at March 31, 2022 is largely due to the effects of nickel price increases and the associated volatility in the nickel market.
StandardizedAdvanced
Six months ended June 30, 2021
(in millions)		Credit risk RWAMarket risk RWATotal RWACredit risk RWAMarket risk RWAOperational risk
RWA		Total RWA
December 31, 2020$1,464,219 $96,390 $1,560,609 $1,002,330 $96,910 $385,191 $1,484,431 
Model & data changes(a)
— (1,225)(1,225)— (1,225)— (1,225)
Portfolio runoff(b)
(2,800)— (2,800)(1,500)— — (1,500)
Movement in portfolio levels(c)
48,096 (3,049)45,047 24,507 (3,220)11,393 32,680 
Changes in RWA45,296 (4,274)41,022 23,007 (4,445)11,393 29,955 
June 30, 2021$1,509,515 $92,116 $1,601,631 $1,025,337 $92,465 $396,584 $1,514,386 
StandardizedAdvanced
Three months ended
March 31, 2022
(in millions)
Credit risk RWA(c)
Market risk RWATotal RWA
Credit risk RWA(c)
Market risk RWAOperational risk
RWA		Total RWA
December 31, 2021$1,543,452 $95,448 $1,638,900 $1,047,042 $95,506 $405,372 $1,547,920 
Model & data changes(a)
— 564 564 — 564 — 564 
Movement in portfolio levels(b)
76,441 34,773 111,214 46,523 34,672 13,774 94,969 
Changes in RWA76,441 35,337 111,778 46,523 35,236 13,774 95,533 
March 31, 2022$1,619,893 $130,785 $1,750,678 $1,093,565 $130,742 $419,146 $1,643,453 
(a)Model & data changes refer to material movements in levels of RWA as a result of revised methodologies and/or treatment per regulatory guidance (exclusive of rule changes).
(b)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: for Credit risk RWA, impact of SA-CCR adoption on January 1, 2022, changes in book size including position rolloffs in legacy portfolios in Home Lending, changes in composition and credit quality, and market movements, for credit risk RWA; changes in position and market movements for market risk RWA; updates to cumulative losses for operational risk RWA; and deductions to credit risk RWA for excess eligible credit reserves not eligible for inclusion in Tier 2 capital.capital; for Market risk RWA, changes in position and market movements; and for Operational risk RWA, updates to cumulative losses and macroeconomic model inputs.
(c)As of March 31, 2022 and December 31, 2021, the Basel III Standardized Credit risk RWA included wholesale and retail off balance-sheet RWA of $214.9 billion and $218.5 billion, respectively; and the Basel III Advanced Credit risk RWA included wholesale and retail off balance-sheet RWA of $187.3 billion and $188.5 billion, respectively.

Refer to the Firm’s Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for further information on Credit risk RWA, Market risk RWA and Operational risk RWA.
Supplementary leverage ratio
Refer to Supplementary Leverage Ratio on page 9590 of JPMorgan Chase’s 20202021 Form 10-K for additional information.
The following table presents the components of the Firm’s SLR.
Three months ended
(in millions, except ratio)		Three months ended
(in millions, except ratio)		June 30,
2021		December 31, 2020Three months ended
(in millions, except ratio)		March 31,
2022		December 31, 2021
Tier 1 capitalTier 1 capital$241,356 $234,844 Tier 1 capital$240,076 $246,162 
Total average assetsTotal average assets3,728,687 3,399,818 Total average assets3,906,788 3,831,655 
Less: Regulatory capital adjustments(a)
Less: Regulatory capital adjustments(a)
47,857 46,499 
Less: Regulatory capital adjustments(a)
49,005 49,620 
Total adjusted average assets(b)
Total adjusted average assets(b)
3,680,830 3,353,319 
Total adjusted average assets(b)
3,857,783 3,782,035 
Add: Off-balance sheet exposures(c)
Add: Off-balance sheet exposures(c)
775,727 729,978 
Add: Off-balance sheet exposures(c)
728,754 789,754 
Less: Exclusion for U.S. Treasuries and Federal Reserve Bank deposits— 681,755 
Total leverage exposureTotal leverage exposure$4,456,557 $3,401,542 Total leverage exposure$4,586,537 $4,571,789 
SLRSLR5.4 %6.9 %(d)SLR5.2 %5.4 %
(a)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, inclusive of estimated equity method goodwill, other intangible assets and adjustments for the CECL capital transition provisions.
(b)Adjusted average assets used for the calculation of Tier 1 leverage ratio.
(c)Off-balance sheet exposures are calculated as the average of the three month-end spot balances on applicable regulatory exposures during the reporting quarter.
(d)The SLR excluding Effective January 1, 2022, includes the relief was 5.8%impact of the SA-CCR adoption. Refer to the Firm’s Pillar 3 Regulatory Capital Disclosures reports for the period ended December 31, 2020.additional information.
Refer to Note 21 for JPMorgan Chase Bank, N.A.’s SLR.
Line of business equity
Each business segment is allocated capital by taking into consideration a variety of factors including capital levels of similarly rated peers and applicable regulatory capital requirements. Refer to line of business equity on page 9893 of JPMorgan Chase’s 20202021 Form 10-K for additional information on capital allocation.
The following table presents the capital allocated to each business segment.
Line of business equity (Allocated capital)Line of business equity (Allocated capital)Line of business equity (Allocated capital)

(in billions)
(in billions)		June 30,
2021		December 31,
2020
(in billions)		March 31,
2022		December 31,
2021
Consumer & Community BankingConsumer & Community Banking$50.0 $52.0 Consumer & Community Banking$50.0 $50.0 
Corporate & Investment BankCorporate & Investment Bank83.0 80.0 Corporate & Investment Bank103.0 83.0 
Commercial BankingCommercial Banking24.0 22.0 Commercial Banking25.0 24.0 
Asset & Wealth ManagementAsset & Wealth Management14.0 10.5 Asset & Wealth Management17.0 14.0 
CorporateCorporate82.5 84.8 Corporate58.1 88.3 
Total common stockholders’ equityTotal common stockholders’ equity$253.5 $249.3 Total common stockholders’ equity$253.1 $259.3 
38

Capital actions
Common stock dividends
The Firm’s second quarter common stock dividend was $0.90 per share. On June 28, 2021, the Firm announced that its Board of Directors intends to increase the quarterly common stock dividend tois currently $1.00 per share, effective in the third quarter of 2021.share. The Firm’s dividends are subject to approval by the Board of Directors on a quarterly basis.
Common stock
On December 18, 2020, the Federal Reserve announced that all large banks, including the Firm, could resume share repurchases commencing in the first quarter of 2021. Subsequently,April 13, 2022, the Firm announced that its Board of Directors had authorized a new $30 billion common share repurchase program, foreffective May 1, 2022.
Through April 30, 2022, the Firm was authorized to repurchase up to $30 billion.billion of common shares under its previously approved common share repurchase program, that was announced on December 18, 2020.
Refer to Capital actions on page 94 of JPMorgan Chase’s 2021 Form 10-K for additional information.
The following table sets forth the Firm’s repurchases of common stock for the three months ended March 31, 2022 and 2021.
Three months ended March 31,
(in millions)2022
2021(a)
Total number of shares of common stock repurchased18.1 34.7 
Aggregate purchase price of common stock repurchases$2,500 $4,999 
(a) As directed by the Federal Reserve, total net repurchases and common stock dividends in the first and second quartersquarter of 2021 were restricted and could not exceed the average of the Firm’s net income for the four preceding calendar quarters. On March 25, 2021, the Federal Reserve extended these restrictions through at least the second quarter of 2021.
On June 24, 2021, the Federal Reserve announced that the temporary restrictions on capital distributions would expire on June 30, 2021 as a result of the Firm remaining above its minimum risk-based capital requirements under the
48

2021 CCAR stress test. Effective July 1, 2021, the Firm is subject to the normal capital distribution restrictions provided under the regulatory capital framework. The Firm continues to be authorized to repurchase common shares under its existing common share repurchase program previously approved by the Board of Directors.
Refer to capital planning and stress testing on page 49 for additional information.
The following table sets forth the Firm’s repurchases of common stock for the three and six months ended June 30, 2021 and 2020.
Three months ended June 30,Six months ended June 30,
(in millions)2021
2020(a)
2021
2020(a)
Total number of shares of common stock repurchased39.5 — 74.2 50.0 
Aggregate purchase price of common stock repurchases$6,201 $— $11,200 $6,397 
(a) On March 15, 2020, in response to the economic disruptions caused by the COVID-19 pandemic, the Firm temporarily suspended repurchases of its common stock. Subsequently, the Federal Reserve directed all large banks, including the Firm, to discontinue net share repurchases through the end of 2020.
Refer to Part II, Item 2: Unregistered Sales of Equity Securities and Use of Proceeds and Part II, Item 5: Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities on pages 191-192175-176 of this Form 10-Q and page 3435 of JPMorgan Chase’s 20202021 Form 10-K, respectively, for additional information regarding repurchases of the Firm’s equity securities.
Preferred stock
Preferred stock dividends declared were $393 million and $772$397 million for the three and six months ended June 30, 2021.March 31, 2022.
During the six months ended and subsequent to June 30, 2021,On February 1, 2022, the Firm issued and redeemed several series$2.0 billion of its fixed-to-floating rate non-cumulative preferred stock.stock, Series Z. Refer to Note 17 of this Form 10-Q and Note 21 of JPMorgan Chase’s 20202021 Form 10-K for additional information on the Firm’s preferred stock, including the issuance and redemption of preferred stock.
Capital planning and stress testing
Comprehensive Capital Analysis and Review
On April 5, 2021,2022, the Firm submitted its 20212022 Capital Plan to the Federal Reserve under the Federal Reserve’s 2021 Comprehensive Capital Analysis and Review ("CCAR") process. On June 28, 2021, JPMorgan Chase announcedThe Firm anticipates that it had completed the 2021 CCAR stress test process. The Firm’s 2021 indicative SCB requirement is 3.2% (down from the current 3.3%), which would result in a minimum Standardized CET1 capital ratio of 11.2% (down from the current 11.3%). The Federal Reserve Board will providedisclose the Firm with its final SCBFirm’s indicative Stress Capital Buffer ("SCB") requirement by August 31, 2021, and that requirementwhich will become effective on October 1, 2021,2022, and will remain in effect until Septembersummary information regarding the Firm’s stress test results by June 30, 2022. The Firm's SCB is currently 3.2%.
Refer to Capital planning and stress testing on pages 91-9286-87 of JPMorgan Chase’s 20202021 Form 10-K for additional information on CCAR.
Other capital requirements
Total Loss-Absorbing Capacity
The Federal Reserve’s TLAC rule requires the U.S. global systemically important bank (“GSIB”) top-tier holding companies, including the Firm, to maintain minimum levels of external TLAC and eligible long-term debt (“eligible LTD”).
Refer to other capital requirements on page 10095 of JPMorgan Chase’s 20202021 Form 10-K for additional information on TLAC.
The following table presents the TLAC and external long-term debt minimum requirements including applicable regulatory buffers, as of June 30, 2021 and December 31, 2020, except as noted below.
Minimum Requirements
TLAC to RWA(a)
22.5 %
TLAC to leverage exposure9.5 
External long-term debt to RWA9.5 
External long-term debt to leverage4.5 
(a)For the period ended December 31, 2020, the TLAC to RWA minimum requirement was 23.0%.
The following table presents the eligible external TLAC and eligible LTD amounts, as well as a representation of the amounts as a percentage of the Firm’s total RWA and total leverage exposure applying the impact of the CECL capital transition provisions as of June 30, 2021March 31, 2022 and December 31, 2020.2021.
June 30, 2021
December 31, 2020(a)
(in billions, except ratio)External TLACLTDExternal TLACLTD
Total eligible amount$459.3 $207.0 $421.0 $181.4 
% of RWA28.7 %12.9 %27.0 %11.6 %
Surplus/(shortfall)$98.9 $54.8 $62.1 $33.1 
% of total leverage exposure10.3 %4.6 %12.4 %5.3 %
Surplus/(shortfall)$35.9 $6.4 $97.9 $28.3 
(a)Total leverage exposure excludes U.S. Treasury securities and deposits at Federal Reserve Banks, as provided by the rule issued by the Federal Reserve which became effective April 1, 2020 and remained in effect through March 31, 2021.
March 31, 2022December 31, 2021
(in billions, except ratio)External TLACLTDExternal TLACLTD
Total eligible amount$462.7 $214.1 $464.6 $210.4 
% of RWA26.4 %12.2 %28.4 %12.8 %
Regulatory requirements22.5 9.5 22.5 9.5 
Surplus/(shortfall)$68.8 $47.8 $95.9 $54.7 
% of total leverage exposure10.1 %4.7 %10.2 %4.6 %
Regulatory requirements9.5 4.5 9.5 4.5 
Surplus/(shortfall)$27.0 $7.7 $30.3 $4.6 
Refer to Liquidity Risk Management on pages 51-5541-45 for further information on long-term debt issued by the Parent Company.
Refer to Part I, Item 1A: Risk Factors on pages 8-329-33 of JPMorgan Chase’s 20202021 Form 10-K for information on the financial consequences to holders of the Firm’s debt and equity securities in a resolution scenario.
4939

Broker-dealerU.S. broker-dealer regulatory capital
J.P. Morgan Securities
JPMorgan Chase’s principal U.S. broker-dealer subsidiary is J.P. Morgan Securities. J.P. Morgan Securities is subject to Rule 15c3-1 under the Securities Exchange Act of 1934 (the “Net Capital Rule”). J.P. Morgan Securities is also registered as a futures commission merchant and is subject to regulatory capital requirements, including those imposed by the SEC, Commodity Futures Trading Commission (“CFTC”), Financial Industry Regulatory Authority (“FINRA”) and the National Futures Association (“NFA”).
Refer to Broker-dealer regulatory capital on page 10196 of JPMorgan Chase’s 20202021 Form 10-K for a discussion on J.P. Morgan Securities’ capital requirements.
The following table presents J.P. Morgan Securities’ net capital:
June 30, 2021
March 31, 2022March 31, 2022
(in millions)(in millions)ActualMinimum(in millions)ActualMinimum
Net CapitalNet Capital$26,963 $5,150 Net Capital$21,975 $6,364 
Non-U.S. subsidiary regulatory capital
J.P. Morgan Securities plc
J.P. Morgan Securities plc is a wholly-owned subsidiary of JPMorgan Chase Bank, N.A. and has authority to engage in banking, investment banking and broker-dealer activities. J.P. Morgan Securities plc is jointly regulated by the U.K. Prudential Regulation Authority (“PRA”) and the Financial Conduct Authority (“FCA”). J.P. Morgan Securities plc is subject to the European Union ("EU") Capital Requirements Regulation ("CRR"), as adopted in the U.K., and the PRA capital rules, each of which implementhave implemented Basel III and thereby subject J.P. Morgan Securities plc to its requirements.
Refer to Broker-dealer regulatory capital on page 10196 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion on J.P. Morgan Securities plc.
The Bank of England requires on a transitional basis, that U.K. banks, including U.K. regulated subsidiaries of overseas groups, maintain a minimum requirementrequirements for own funds and eligible liabilities (“MREL”("MREL"). As of June 30, 2021,March 31, 2022, J.P. Morgan Securities plc was compliant with the MREL requirements, of the MREL rule.that became fully phased-in on January 1, 2022.
The following table presents J.P. Morgan Securities plc’s capital metrics:
June 30, 2021
Regulatory Minimum ratios(a)
March 31, 2022March 31, 2022
Regulatory Minimum ratios(a)
(in millions, except ratios)(in millions, except ratios)Estimated
Regulatory Minimum ratios(a)
(in millions, except ratios)Estimated
Total capitalTotal capital$54,713 Total capital$53,540 
CET1 ratioCET1 ratio16.8 %4.5 %CET1 ratio18.5 %4.5 %
Total capital ratioTotal capital ratio21.5 %8.0 %Total capital ratio23.8 %8.0 %
(a)Represents minimum Pillar 1 requirements excluding additional capital requirements (i.e. capital buffers) specified by the PRA. J.P. Morgan Securities plc's capital ratios as of June 30, 2021March 31, 2022 exceeded the minimum requirements, including the additional capital requirements specified by the PRA.
J.P. Morgan SE
JPMSE is a wholly-owned subsidiary of JPMorgan Chase Bank, N.A. and has authority to engage in banking, investment banking and markets activities. JPMSE is regulated by the European Central Bank as well as the banking regulators in Germany and Luxembourg and it is subject to EU capital requirements under Basel III.
JPMSE is required by the EU Single Resolution Board to maintain MREL. As of March 31, 2022, JPMSE was compliant with the MREL requirements.
The following table presents JPMSE’s capital metrics:
March 31, 2022
Regulatory Minimum ratios(a)
(in millions, except ratios)Estimated
Total capital$37,279 
CET1 ratio18.6 %4.5 %
Total capital ratio29.6 %8.0 %

(a)Represents minimum Pillar 1 requirements specified by the EU CRR. J.P. Morgan SE’s capital ratios as of March 31, 2022 exceeded the minimum requirements, including the additional capital requirements specified by the European Banking Authority.

5040

LIQUIDITY RISK MANAGEMENT
Liquidity risk is the risk that the Firm will be unable to meet its contractual and contingent financial obligations as they arise or that it does not have the appropriate amount, composition and tenor of funding and liquidity to support its assets and liabilities. Refer to pages 102–10897-104 of JPMorgan Chase’s 20202021 Form 10-K and the Firm’s U.S. LCR Disclosure reports, which are available on the Firm’s website for a further discussion of the Firm’s Liquidity Risk Management.
LCR and HQLA
The LCR rule requires that the Firm and JPMorgan Chase Bank, N.A. maintain an amount of eligible HQLA that is sufficient to meet their respective estimated total net cash outflows over a prospective 30 calendar-day period of significant stress. Under the LCR rule, the amount of eligible HQLA held by JPMorgan Chase Bank, N.A. that is in excess of its stand-alone 100% minimum LCR requirement, and that is not transferable to non-bank affiliates, must be excluded from the Firm’s reported eligible HQLA. The LCR for both the Firm and JPMorgan Chase Bank, N.A. is required to be a minimum of 100%. Refer to page 10398 of JPMorgan Chase’s 20202021 Form 10-K and the Firm’s U.S. LCR Disclosure reports for additional information on HQLA and net cash outflows.
The following table summarizes the Firm and JPMorgan Chase Bank, N.A.’s average LCR for the three months ended June 30,March 31, 2022, December 31, 2021 and March 31, 2021 and June 30, 2020 based on the Firm’s interpretation of the LCR framework.
Three months endedThree months ended
Average amount
(in millions)		Average amount
(in millions)		June 30,
2021		March 31, 2021June 30,
2020		Average amount
(in millions)		March 31,
2022		December 31, 2021March 31,
2021
JPMorgan Chase & Co.
JPMorgan Chase & Co.:JPMorgan Chase & Co.:
HQLAHQLAHQLA
Eligible cash(a)
Eligible cash(a)
$673,724 $578,029 $426,053 
Eligible cash(a)
$680,003 $703,384 $578,029 
Eligible securities(b)(c)
Eligible securities(b)(c)
42,832 118,542 225,135 
Eligible securities(b)(c)
42,512 34,738 118,542 
Total HQLA(d)
Total HQLA(d)
$716,556 $696,571 $651,188 
Total HQLA(d)
$722,515 $738,122 $696,571 
Net cash outflowsNet cash outflows$647,757 $634,221 $556,395 Net cash outflows$658,998 $664,801 $634,221 
LCRLCR111 %110 %117 %LCR110 %111 %110 %
Net excess eligible HQLA(d)
Net excess eligible HQLA(d)
$68,799 $62,350 $94,793 
Net excess eligible HQLA(d)
$63,517 $73,321 $62,350 
JPMorgan Chase Bank N.A.:JPMorgan Chase Bank N.A.:JPMorgan Chase Bank N.A.:
LCRLCR171 %166 %140 %LCR181 %178 %166 %
Net excess eligible HQLANet excess eligible HQLA$489,311 $442,617 $248,904 Net excess eligible HQLA$560,987 $555,300 $442,617 
(a)Represents cash on deposit at central banks, primarily the Federal Reserve Banks.
(b)Predominantly U.S. Treasuries, U.S. GSE and government agency MBS, and sovereign bonds net of applicable haircuts under the LCR rule.
(c)Eligible HQLA 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 eligible HQLA at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates.
The Firm’s average LCR increased during the three months ended June 30, 2021, compared with the three-month period ended March 31, 2021, due to an increase in HQLA from long-term debt issuances.
The Firm's average LCR decreased during the three months ended June 30, 2021, compared with the prior year period due to client driven activities in the CIB as well as the relative impact on net cash outflows from the significant increase in deposits.
JPMorgan Chase Bank, N.A.’s average LCR increased during the three months ended June 30, 2021,March 31, 2022 compared with both the three month periods ended MarchDecember 31, 2021 and June 30, 2020March 31, 2021 primarily due to growth in deposits. Deposits continued to increase in the second quarter primarily driven by the effect of certain government actions in response to the COVID-19 pandemic. The increase in excess liquidity in JPMorgan Chase Bank,
N.A. is excluded from the Firm’s reported LCR under the LCR rule.
The Firm and JPMorgan Chase Bank, N.A.'s average LCR fluctuates from period to period, due to changes in its eligible HQLA and estimated net cash outflows as a result of ongoing business activity.
Other liquidity sources
In addition to the assets reported in the Firm’s eligible HQLA discussed above, the Firm had unencumbered marketable securities, such as equity and debt securities, that the Firm believes would be available to raise liquidity. This includes securities included as part of the excess eligible HQLA securities at JPMorgan Chase Bank, N.A. that are not transferable to non-bank affiliates. The fair value of these securities was approximately $854$939 billion and $740$914 billion as of June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively, although the amount of liquidity that could be raised at any particular time would be dependent on prevailing market conditions. The fair value increased compared to December 31, 2020,2021, primarily due to an increase in CIB trading assets as well as an increase in excess eligible HQLA at JPMorgan Chase Bank, N.A. which was primarily a result of increased deposits..
The Firm also had available borrowing capacity at the Federal Home Loan Banks ("FHLBs") and the discount window at the Federal Reserve Bank as a result of collateral pledged by the Firm to such banks of approximately $297$298 billion and $307$308 billion as of June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively. This borrowing capacity excludes the benefit of cash and securities reported in the Firm’s eligible HQLA or other unencumbered securities that are currently pledged at the Federal Reserve Bank discount window and other central banks. Although available, the Firm does not view this borrowing capacity at the Federal Reserve Bank discount window and the other central banks as a primary source of liquidity.
NSFR
The net stable funding ratio (“NSFR”) is a liquidity requirement for large banking organizationsrule requires that the Firm and JPMorgan Chase Bank, N.A. maintain an amount of “available” stable funding that is intendedsufficient to measure the adequacy of “available” andmeet their “required” amounts of stable funding over a one-year horizon. On October 20, 2020, the federal banking agencies issued a final NSFR rule under which large banking
51

organizations such asAs of March 31, 2022, the Firm and JPMorgan Chase Bank, N.A. will be required to maintain anwere compliant with the 100% minimum NSFR requirement, based on the Firm's current understanding of at least 100% on an ongoing basis.the final rule. The final NSFR rule became effective on July 1, 2021, and the Firm will be required to publicly disclose its quarterly average NSFR semi-annuallysemi annually beginning in 2023.
The Firm and JPMorgan Chase Bank, N.A. are compliant with the 100% minimum NSFR, based on the Firm's current understanding of the final rule.
41

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.obligations, which includes both short- and long-term cash requirements.
The Firm funds its global balance sheet through diverse sources of funding including stable deposits, secured and unsecured funding in the capital markets and stockholders’ equity. Deposits are the primary funding source for JPMorgan Chase Bank, N.A. Additionally, JPMorgan Chase Bank, N.A. may also access funding through short- or long-term secured borrowings, through the issuance of unsecured
unsecured long-term debt, or from borrowings from the Parent Company or the Intermediate Holding Company (“IHC”). The Firm’s non-bank subsidiaries are primarily funded from long-term unsecured borrowings and short-term secured borrowings, primarily securities loaned or sold under repurchase agreements. Excess funding is invested by Treasury and CIO in the Firm’s investment securities portfolio or deployed in cash or other short-term liquid investments based on their interest rate and liquidity risk characteristics.
Refer to Note 22 for additional information on off-balance sheet obligations.
Deposits
The table below summarizes, by LOB and Corporate, the period-end deposit balances as of June 30, 2021,March 31, 2022, and December 31, 2020,2021, and the average deposit balances for the three and six months ended June 30,March 31, 2022 and 2021, and 2020, respectively.
June 30, 2021December 31, 2020Three months ended June 30,Six months ended June 30,March 31, 2022December 31, 2021Three months ended March 31,
DepositsDepositsAverageAverageDepositsAverage
(in millions)(in millions)2021202020212020(in millions)20222021
Consumer & Community BankingConsumer & Community Banking$1,056,507 $958,706 $1,047,771 $840,467 $1,013,917 $790,088 Consumer & Community Banking$1,189,308 $1,148,110 $1,153,513 $979,686 
Corporate & Investment BankCorporate & Investment Bank739,406 702,215 765,807 652,464 756,499 607,345 Corporate & Investment Bank775,278 707,791 756,643 747,087 
Commercial BankingCommercial Banking291,444 284,263 290,095 236,753 290,455 212,718 Commercial Banking307,894 323,954 316,787 290,818 
Asset & Wealth ManagementAsset & Wealth Management217,488 198,755 219,699 160,102 213,167 152,336 Asset & Wealth Management287,293 282,052 287,756 206,562 
CorporateCorporate372 318 423 731 450 864 Corporate1,434 396 854 479 
Total FirmTotal Firm$2,305,217 $2,144,257 $2,323,795 $1,890,517 $2,274,488 $1,763,351 Total Firm$2,561,207 $2,462,303 $2,515,553 $2,224,632 
Deposits provide a stable source of funding and reduce the Firm’s reliance on the wholesale funding markets. A significant portion of the Firm’s deposits are consumer deposits and wholesale operating deposits, which are both considered to be stable sources of liquidity. Wholesale operating deposits are 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,ratio, and deposits as a percentage of total liabilities, as of June 30, 2021March 31, 2022 and December 31, 2020.2021.
(in billions except ratios)(in billions except ratios)June 30, 2021December 31, 2020(in billions except ratios)March 31, 2022December 31, 2021
DepositsDeposits$2,305.2 $2,144.3 Deposits$2,561.2 $2,462.3 
Deposits as a % of total liabilitiesDeposits as a % of total liabilities68 %69 %Deposits as a % of total liabilities70 %71 %
LoansLoans$1,041.0 $1,012.9 Loans$1,073.3 $1,077.7 
Loans-to-deposits ratioLoans-to-deposits ratio45 %47 %Loans-to-deposits ratio42 %44 %
The Firm believes that average deposit balances are generally more representative of deposit trends than period-end deposit balances. However, during periods of market disruption those trends could be affected.
Average deposits increased for the three and six months ended June 30, 2021March 31, 2022 compared to the three and six months ended June 30, 2020,March 31, 2021, reflecting significant inflows across the LOBs primarily driven by the ongoing effect of certain government actions in response to the COVID-19 pandemic.actions. In CCB, the increase was also driven by growth from existingnew and newexisting accounts across both consumer and small business customers.
Refer to the discussion of the Firm’s Business Segment Results and the Consolidated Balance Sheets Analysis on pages 21-4317-33 and pages 15-16,12-13, respectively, for further information on deposit and liability balance trends.
5242

The following table summarizes short-term and long-term funding, excluding deposits, as of June 30, 2021,March 31, 2022, and December 31, 2020,2021, and average balances for the three and six months ended June 30,March 31, 2022 and 2021, and 2020, respectively. Refer to the Consolidated Balance Sheets Analysis on pages 15-1612-13 and Note 10 for additional information.
June 30, 2021December 31, 2020Three months ended June 30,Six months ended June 30,March 31, 2022December 31, 2021Three months ended March 31,
Sources of funds (excluding deposits)Sources of funds (excluding deposits)AverageAverageSources of funds (excluding deposits)Average
(in millions)(in millions)2021202020212020(in millions)20222021
Commercial paperCommercial paper$10,420 $12,031 $13,696 $14,032 $13,277 $14,003 Commercial paper$18,654 $15,108 $14,577 $12,853 
Other borrowed fundsOther borrowed funds12,465 8,510 13,888 8,613 12,574 8,853 Other borrowed funds12,010 9,999 13,595 11,246 
Federal Funds purchasedFederal Funds purchased619 1,769 1,697 2,419 
Total short-term unsecured fundingTotal short-term unsecured funding$22,885 $20,541 $27,584 $22,645 $25,851 $22,856 Total short-term unsecured funding$31,283 $26,876 $29,869 $26,518 
Securities sold under agreements to repurchase(a)
Securities sold under agreements to repurchase(a)
$237,443 $207,877 $251,455 $268,281 $271,320 $251,338 
Securities sold under agreements to repurchase(a)
$217,652 $189,806 $243,615 $291,405 
Securities loaned(a)
Securities loaned(a)
5,686 4,886 7,510 5,950 7,536 6,649 
Securities loaned(a)
5,587 2,765 4,903 7,562 
Other borrowed fundsOther borrowed funds29,053 24,667 (f)28,291 28,206 (f)27,131 (f)23,983 (f)Other borrowed funds26,922 28,487 

27,936 25,959 
Obligations of Firm-administered multi-seller conduits(b)
Obligations of Firm-administered multi-seller conduits(b)
$9,794 $10,523 $9,863 $12,428 $10,036 $11,163 
Obligations of Firm-administered multi-seller conduits(b)
6,250 6,198 6,470 10,211 
Total short-term secured fundingTotal short-term secured funding$281,976 $247,953 $297,119 $314,865 $316,023 $293,133 Total short-term secured funding$256,411 $227,256 $282,924 $335,137 
Senior notesSenior notes$188,054 $166,089 $179,838 $177,972 $173,680 $171,857 Senior notes$188,931 $191,488 $190,434 $167,453 
Subordinated debtSubordinated debt20,872 21,608 20,659 20,934 20,953 19,545 Subordinated debt19,500 20,531 20,244 21,251 
Structured notes(c)
Structured notes(c)
74,455 75,325 75,351 71,561 75,196 72,205 
Structured notes(c)
69,775 73,956 71,173 75,039 
Total long-term unsecured fundingTotal long-term unsecured funding$283,381 $263,022 $275,848 $270,467 $269,829 $263,607 Total long-term unsecured funding$278,206 $285,975 $281,851 $263,743 
Credit card securitization(b)
Credit card securitization(b)
$2,395 $4,943 $3,043 $5,907 $3,929 $6,039 
Credit card securitization(b)
$1,748 $2,397 $2,275 $4,825 
FHLB advancesFHLB advances12,116 14,123 12,174 36,130 12,949 31,629 FHLB advances11,108 11,110 11,109 13,733 
Other long-term secured funding(d)
Other long-term secured funding(d)
4,429 4,540 4,459 4,233 4,542 4,320 
Other long-term secured funding(d)
3,925 3,920 3,908 4,626 
Total long-term secured fundingTotal long-term secured funding$18,940 $23,606 $19,676 $46,270 $21,420 $41,988 Total long-term secured funding$16,781 $17,427 $17,292 $23,184 
Preferred stock(e)
Preferred stock(e)
$32,838 $30,063 $32,666 $30,063 $31,496 $29,734 
Preferred stock(e)
$32,838 $34,838 $33,526 $30,312 
Common stockholders’ equity(e)
Common stockholders’ equity(e)
$253,548 $249,291 $250,849 $234,408 $248,209 $234,469 
Common stockholders’ equity(e)
$253,061 $259,289 $252,506 $245,542 
(a)Primarily consists of short-term securities loaned or sold under agreements to repurchase.
(b)Included in beneficial interests issued by consolidated variable interest entities on the Firm’s Consolidated balance sheets.
(c)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.
(d)Includes long-term structured notes which are secured.
(e)Refer to Capital Risk Management on pages 45-5035-40 and Consolidated statements of changes in stockholders’ equity on page 9283 of this Form 10-Q, and Note 21 and Note 22 of JPMorgan Chase’s 20202021 Form 10-K for additional information on preferred stock and common stockholders’ equity.
(f)Includes nonrecourse advances provided under the MMLF. Refer to page 106 of JPMorgan Chase’s 2020 Form 10-K for additional information on the MMLF.
Short-term funding
The Firm’s sources of short-term secured funding primarily consist of securities loaned or sold under agreements to repurchase. These instruments are secured predominantly by high-quality securities collateral, including government-issued debt and U.S. GSE and government agency MBS. Securities sold under agreements to repurchase increased at June 30, 2021,March 31, 2022, compared with December 31, 2020, reflecting 2021, due to the impact of client activities and higher secured financing of trading assets in CIB, partially offset by lower secured financing of AFS investment securities in Treasury and CIO.Markets.
The balances associated with securities loaned or sold under agreements to repurchase fluctuate over time due to investment and financing activities of clients, the Firm’s demand for financing, the ongoing management of the mix of the Firm’s liabilities, including its secured and unsecured financing (for both the investment securities and market-making portfolios), and other market and portfolio factors.
The Firm’s sources of short-term unsecured funding primarily consist of other borrowed funds and issuanceissuances of wholesale commercial paper.paper and other borrowed funds. The decreaseincrease in commercial paper at June 30, 2021,March 31, 2022, from December 31, 2020,2021, and for the
average three and six months ended June 30, 2021March 31, 2022 compared to the prior year period, was due to lowerhigher net issuance primarily for short-term liquidity management.
The increase in unsecured other borrowed funds at June 30, 2021,March 31, 2022, from December 31, 2020,2021, and for the average three and six months ended June 30, 2021March 31, 2022 compared to the prior year period, was primarily due to net issuances of structured noteshigher overdrafts in CIB Markets.

CIB.
5343

Long-term funding and issuance
Long-term funding provides an additional source of stable funding and liquidity for the Firm. The Firm’s long-term funding plan is driven primarily by expected client activity, liquidity considerations, and regulatory requirements, including TLAC. Long-term funding objectives include maintaining diversification, maximizing market access and optimizing funding costs. The Firm evaluates various funding markets, tenors and currencies in creating its optimal long-term funding plan.
The significant majority of the Firm’s long-term unsecured funding is issued by the Parent Company to provide flexibility in support of both bank and non-bank subsidiary funding needs. The Parent Company advances substantially all net funding proceeds to its subsidiary, the IHC. The IHC does not issue debt to external counterparties. The following table summarizes long-term unsecured issuance and maturities or redemptions for the three and six months ended June 30, 2021March 31, 2022 and 2020.2021. Refer to Liquidity Risk Management on pages 102–10897-104 and Note 20 of JPMorgan Chase’s 20202021 Form 10-K for additional information on the IHC and long-term debt.
Long-term unsecured fundingLong-term unsecured fundingLong-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 March 31,Three months ended March 31,
202120202021202020212020202120202022202120222021
(Notional in millions)(Notional in millions)Parent CompanySubsidiaries(Notional in millions)Parent CompanySubsidiaries
IssuanceIssuanceIssuance
Senior notes issued in the U.S. marketSenior notes issued in the U.S. market$20,000 $13,500 $29,250 $18,750 $— $— $— $— Senior notes issued in the U.S. market$8,100 $9,250 $— $— 
Senior notes issued in non-U.S. marketsSenior notes issued in non-U.S. markets2,789 — 5,581 1,355 — — — — Senior notes issued in non-U.S. markets2,752 2,792 — — 
Total senior notesTotal senior notes22,789 13,500 34,831 20,105 — — — — Total senior notes10,852 12,042 — — 
Subordinated debt— 3,000 — 3,000 — — — — 
Structured notes(a)
Structured notes(a)
1,439 2,526 2,935 5,308 7,285 3,862 17,780 13,114 
Structured notes(a)
1,156 1,496 8,449 10,495 
Total long-term unsecured funding – issuanceTotal long-term unsecured funding – issuance$24,228 $19,026 $37,766 $28,413 $7,285 $3,862 $17,780 $13,114 Total long-term unsecured funding – issuance$12,008 $13,538 $8,449 $10,495 
Maturities/redemptionsMaturities/redemptionsMaturities/redemptions
Senior notesSenior notes$4,617 $2,618 $7,317 $8,084 $— $3,572 $66 $7,637 Senior notes$3,693 $2,700 $64 $66 
Subordinated debt— — — — — — — — 
Structured notesStructured notes1,191 1,309 3,161 2,834 9,659 5,355 18,173 14,737 Structured notes977 1,970 7,647 8,514 
Total long-term unsecured funding – maturities/redemptionsTotal long-term unsecured funding – maturities/redemptions$5,808 $3,927 $10,478 $10,918 $9,659 $8,927 $18,239 $22,374 Total long-term unsecured funding – maturities/redemptions$4,670 $4,670 $7,711 $8,580 
(a)Includes certain TLAC-eligible long-term unsecured debt issued by the Parent Company.

The Firm can also raise secured long-term funding through securitization of consumer credit card loans and FHLB advances. The following table summarizes the securitization issuance and FHLB advances and their respective maturities or redemptions for the three and six months ended June 30,March 31, 2022 and 2021, and 2020, respectively.
Long-term secured fundingLong-term secured fundingLong-term secured funding
Three months ended June 30,Six months ended June 30,Three months ended March 31,
IssuanceMaturities/RedemptionsIssuanceMaturities/RedemptionsIssuanceMaturities/Redemptions
(in millions)(in millions)20212020202120202021202020212020(in millions)2022202120222021
Credit card securitizationCredit card securitization$— $— $1,925 $774 $— $1,000 $2,550 $1,674 Credit card securitization$— $— $650 $625 
FHLB advancesFHLB advances— — 1,005 2 — 15,000 2,006 7,505 FHLB advances— — 2 1,001 
Other long-term secured funding(a)
Other long-term secured funding(a)
103 89 84 229 241 323 192 434 
Other long-term secured funding(a)
202 138 61 108 
Total long-term secured fundingTotal long-term secured funding$103 $89 $3,014 $1,005 $241 $16,323 $4,748 $9,613 Total long-term secured funding$202 $138 $713 $1,734 
(a)Includes long-term structured notes whichthat are secured.
The Firm’s wholesale businesses also securitize loans for client-driven transactions; those client-driven loan securitizations are not considered to be a source of funding for the Firm and are not included in the table above. Refer to Note 14 of JPMorgan Chase’s 20202021 Form 10-K for further description of the client-driven loan securitizations.
5444

Credit ratings
The cost and availability of financing are influenced by credit ratings. Reductions in these ratings could have an adverse effect on the Firm’s access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm. The nature and magnitude of the impact of ratings downgrades depends on numerous contractual and behavioral factors, which the Firm believes are incorporated in its liquidity risk and stress testing metrics. The Firm believes that it maintains sufficient liquidity to withstand a potential decrease in funding capacity due to ratings downgrades.
Additionally, the Firm’s funding requirements for VIEs and other third-party commitments may be adversely affected by a decline in credit ratings. Refer to SPEs on page 18, and liquidity risk and credit-related contingent features in Note 4 for additional information on the impact of a credit ratings downgrade on the funding requirements for VIEs, and on derivatives and collateral agreements.

The credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries as of June 30, 2021, except as noted below,March 31, 2022, were as follows:
JPMorgan Chase & Co.JPMorgan Chase Bank, N.A.
J.P. Morgan Securities LLC
J.P. Morgan Securities plc
 J.P. Morgan SE (b)
June 30, 2021March 31, 2022Long-term issuerShort-term issuerOutlookLong-term issuerShort-term issuerOutlookLong-term issuerShort-term issuerOutlook
Moody’s Investors Service (a)
A2P-1Positive/StableAa2P-1StableAa3P-1Stable
Standard & Poor’s(b)
A-A-2PositiveA+A-1PositiveA+A-1Positive
Fitch Ratings(c)
AA-F1+StableAAF1+StableAAF1+Stable
(a) On July 12, 2021, Moody’s revised the outlook of the Parent Company’s long-term issuer rating from stable to positive. The outlook for the Parent Company’s long-term and short-term issuer rating is positive and the Firm's principal bank and non-bank subsidiaries remained unchanged at stable.stable, respectively.
(b) On May 24, 2021, Standard & Poor'sIn January 2022, the three rating agencies affirmed the credit ratings of J.P. Morgan SE, which are equivalent to the Parent Companyratings previously assigned to J.P. Morgan SE's predecessors, J.P. Morgan Bank Luxembourg S.A. and the Firm’s principal bank and non-bank subsidiaries, and revised the outlook from stable to positive.
(c) On April 23, 2021, Fitch affirmed the credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries, and revised the outlook from negative to stable.J.P. Morgan AG.
Refer to page 108104 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of the factors that could affect credit ratings of the Parent Company and the Firm’s principal bank and non-bank subsidiaries.

5545

CREDIT AND INVESTMENT RISK MANAGEMENT
Credit and investment risk is the risk associated with the default or change in credit profile of a client, counterparty or customer; or loss of principal or a reduction in expected returns on investments, including consumer credit risk,
wholesale credit risk, and investment portfolio risk. Refer to Consumer Credit Portfolio, Wholesale Credit Portfolio and
Allowance for Credit Losses on pages 58-7449-65 for a further discussion of Credit Risk.
Refer to page 7566 for a further discussion of Investment Portfolio Risk. Refer to Credit and Investment Risk Management on pages 110–134106-132 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion of the Firm’s Credit and Investment Risk Management framework.
5646

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 total loans include loans retained (i.e., held-for-investment); loans held-for-sale; and certain loans accounted for at fair value. The following tables do not include loans which the Firm accounts for at fair value and classifies as trading assets; refer to Notes 2 and 3 for further information regarding these loans. Refer to Notes 11, 22 and 4 for additional information on the Firm’s loans, lending-related commitments and derivative receivables.
Refer to Note 9 for information regarding the credit risk inherent in the Firm’s investment securities portfolio; and refer to Note 10 for information regarding the credit risk inherent in the securities financing portfolio. Refer to Consumer Credit Portfolio on pages 58-6249-53 and Note 11 for further discussions of the consumer credit environment and consumer loans. Refer to Wholesale Credit Portfolio on pages 63-7254-62 and Note 11 for further discussions of the wholesale credit environment and wholesale loans.
Total credit portfolio
Credit exposure
Nonperforming(c)
(in millions)Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020
Loans retained$963,665 $960,506 $7,881 $8,782 
Loans held-for-sale15,513 7,873 92 284 
Loans at fair value61,776 44,474 1,099 1,507 
Total loans–reported1,040,954 1,012,853 9,072 10,573 
Derivative receivables70,711 79,630 481 56 
Receivables from customers(a)
59,609 47,710 — — 
Total credit-related assets1,171,274 1,140,193 9,553 10,629 
Assets acquired in loan satisfactions
Real estate ownedNANA234 256 
OtherNANA15 21 
Total assets acquired in loan satisfactions
NANA249 277 
Lending-related commitments1,242,022 1,165,688 851 577 
Total credit portfolio$2,413,296 $2,305,881 $10,653 $11,483 
Credit derivatives and credit-related notes used in credit portfolio management activities(b)
$(23,036)$(23,965)$— $— 
Liquid securities and other cash collateral held against derivatives(11,324)(14,806)NANA
(in millions,
except ratios)		Three months ended June 30,Six months ended June 30,
2021202020212020
Net charge-offs$734 $1,560 $1,791 $3,029 
Average retained loans954,155 986,804 953,118 967,719 
Net charge-off rates0.31 %0.64 %0.38 %0.63 %
Total credit portfolio
Credit exposure
Nonperforming(c)(d)
(in millions)Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021
Loans retained$1,018,397 $1,010,206 $6,774 $6,932 
Loans held-for-sale6,425 8,688 70 48 
Loans at fair value48,463 58,820 914 815 
Total loans1,073,285 1,077,714 7,758 7,795 
Derivative receivables73,636 57,081 

597 316 
Receivables from customers(a)
68,473 59,645 — — 
Total credit-related assets1,215,394 1,194,440 8,355 8,111 
Assets acquired in loan satisfactions
Real estate ownedNANA226 213 
OtherNANA24 22 
Total assets acquired in loan satisfactions
NANA250 235 
Lending-related commitments1,301,618 1,262,313 767 764 
Total credit portfolio$2,517,012 $2,456,753 $9,372 $9,110 
Credit derivatives and credit-related notes used in credit portfolio management activities(b)
$(19,736)$(22,218)$— $— 
Liquid securities and other cash collateral held against derivatives(15,166)(10,102)NANA
(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.
(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage credit exposures. Prior-period amount has been revised to conform with the current presentation.
(c)At June 30, 2021,March 31, 2022, and December 31, 2020,2021, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $713$598 million and $874$623 million, respectively, and real estate owned (“REO”) insured by U.S. government agencies of $7$6 million and $9$5 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.
(d)At March 31, 2022 and December 31, 2021, nonaccrual loans excluded $236 million and $633 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA.

47

The following table provides information about the Firm’s net charge-offs and recoveries.
(in millions,
except ratios)		Three months ended March 31,
20222021
Net charge-offs$582 $1,057 
Average retained loans1,004,253 952,068 
Net charge-off rates0.24 %0.45 %
Customer and client assistance
The Firm has provided various forms of assistance to customers and clients impacted by the COVID-19 pandemic includingin the form of payment deferrals and covenant modifications. The majority of the Firm’s COVID-19 related loan modifications have not been considered troubled debt restructurings (“TDRs”). Assistance provided in response to the COVID-19 pandemic could delay the recognition of delinquencies, nonaccrual status, and net charge-offs for those customers and clients who would have otherwise moved into past due or nonaccrual status.deferrals. Refer to Consumer Credit Portfolio on pages 58-6249-53 for additional information. Refer to Consumer Credit Portfolio on pages 110-116 and Wholesale Credit Portfolio on pages 63-72117-128 of JPMorgan Chase's 2021 Form 10-K for information on loan modifications as of June 30,customer and client assistance provided during 2021. Refer to Notes 12 and 13 of JPMorgan Chase's 2020 Form 10-K for further information on the Firm’s accounting policies for loan modifications and the allowance for credit losses.
Paycheck Protection Program
At March 31, 2022 and December 31, 2021, the Firm had $3.6 billion and $6.7 billion, respectively, of PPP loans, including $2.9 billion and $5.4 billion, respectively, in consumer, and $704 million and $1.3 billion, respectively, in wholesale.
The PPP ended on May 31, 2021 for new applications. Since inceptionAs of the Program,March 31, 2022, approximately $36 billion of PPP loans have been repaid through forgiveness payments to the Firm funded approximately $40 billionfrom the SBA.
At March 31, 2022, $236 million of loans. At June 30, 2021 and December 31, 2020,PPP loans 90 or
more days past due have been excluded from the Firm had approximately $23 billion and $27 billion ofFirm’s
nonaccrual loans remaining, respectively, including $17 billion and $19 billion in the consumer portfolio, respectively, and $6 billion and $8 billion in the wholesale portfolio, respectively.
The Firm continues to process forgiveness applications, and through June 30, 2021, approximately $18 billion of loans were forgivenas they are guaranteed by the SBA. This resulted in accelerated recognition of the associated deferred processing fees in interest income, primarily in CCB.
Refer to CCB segment results on pages 23-27 and Credit Portfolio on page 113109 of JPMorgan Chase's 20202021 Form 10-K for a further discussion on the PPP.
5748

CONSUMER CREDIT PORTFOLIO
The Firm’s retained consumer portfolio consists primarily of residential real estate loans, credit card loans, scored auto 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. The macroeconomic environment continued to improve in the first half of 2021, with the credit performance of the consumer portfolio, including net charge-offs, benefiting from government stimulus programs, payment deferral programs and increasing home prices. Refer to Note 11 of this Form 10-Q; and Consumer Credit Portfolio on pages 114-120110-116 and Note 12 of JPMorgan Chase's 20202021 Form 10-K for further information on consumer loans, as well as the Firm’s nonaccrual and charge-off accounting policies. Refer to Note 22 of this Form 10-Q and Note 28 of JPMorgan Chase's 20202021 Form 10-K for further information on lending-related commitments.
The following table presentstables present consumer credit-related information with respect to the scored credit portfolios held in CCB, AWM, CIB and Corporate.
Consumer credit portfolioConsumer credit portfolioConsumer credit portfolio
Three months ended June 30,Six months ended June 30,
(in millions, except ratios)Credit exposure
Nonaccrual loans(j)(k)
Net charge-offs/(recoveries)
Net charge-off/(recovery) rate(l)
Net charge-offs/(recoveries)
Net charge-off/(recovery) rate(l)
Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		20212020202120202021202020212020
(in millions)(in millions)Credit exposure
Nonaccrual loans(j)(k)(l)
Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021
Consumer, excluding credit cardConsumer, excluding credit cardConsumer, excluding credit card
Residential real estate(a)
Residential real estate(a)
$218,031 $225,302 $5,060 $5,313 $(80)$(5)(0.15)%(0.01)%$(131)$(125)(0.12)%(0.10)%
Residential real estate(a)
$227,926 $224,795 $4,375 $4,759 
Auto and other(b)(c)(d)
Auto and other(b)(c)(d)
79,700 76,825 123 151 49 88 0.24 0.54 121 202 0.30 0.70 
Auto and other(b)(c)(d)
68,235 70,761 110 119 
Total loans – retainedTotal loans – retained297,731 302,127 5,183 5,464 (31)83 (0.04)0.11 (10)77 (0.01)0.05 Total loans – retained296,161 295,556 4,485 4,878 
Loans held-for-saleLoans held-for-sale1,075 1,305 — — NANANANANANANANALoans held-for-sale808 1,287 23 — 
Loans at fair value(e)
Loans at fair value(e)
30,879 15,147 475 1,003 NANANANANANANANA
Loans at fair value(e)
15,520 26,463 502 472 
Total consumer, excluding credit card loansTotal consumer, excluding credit card loans329,685 318,579 5,658 6,467 (31)83 (0.04)0.11 (10)77 (0.01)0.05 Total consumer, excluding credit card loans312,489 323,306 5,010 5,350 
Lending-related commitments(f)
Lending-related commitments(f)
56,875 57,319 
Lending-related commitments(f)
47,103 45,334 
Total consumer exposure, excluding credit cardTotal consumer exposure, excluding credit card386,560 375,898 Total consumer exposure, excluding credit card359,592 368,640 
Credit cardCredit cardCredit card
Loans retained(g)
Loans retained(g)
141,079 143,432 NANA755 1,178 2.24 3.33 1,738 2,491 2.60 3.28 
Loans retained(g)
152,283 154,296 NANA
Loans held-for-saleLoans held-for-sale723 784 NANANANANANANANANANALoans held-for-sale— — NANA
Total credit card loansTotal credit card loans141,802 144,216 NANA755 1,178 2.24 3.33 1,738 2,491 2.60 3.28 Total credit card loans152,283 154,296 NANA
Lending-related commitments(f)(h)
Lending-related commitments(f)(h)
682,531 658,506 
Lending-related commitments(f)(h)
757,283 730,534 
Total credit card exposure(h)
Total credit card exposure(h)
824,333 802,722 
Total credit card exposure(h)
909,566 884,830 
Total consumer credit portfolio(h)
Total consumer credit portfolio(h)
$1,210,893 $1,178,620 $5,658 $6,467 $724 $1,261 0.67 %1.14 %$1,728 $2,568 0.80 %1.14 %
Total consumer credit portfolio(h)
$1,269,158 $1,253,470 $5,010 $5,350 
Credit-related notes used in credit portfolio management activities(i)
Credit-related notes used in credit portfolio management activities(i)
$(1,220)$(747)
Credit-related notes used in credit portfolio management activities(i)
$(1,781)$(2,028)
Three months ended March 31,
(in millions, except ratios)Net charge-offs/(recoveries)Average loans - retained
Net charge-off/(recovery) rate(m)
202220212022202120222021
Consumer, excluding credit card
Residential real estate$(67)$(51)$225,932 $222,972 (0.12)%(0.09)%
Auto and other113 72 69,528 79,083 0.66 0.37 
Total consumer, excluding credit card - retained46 21 295,460 302,055 0.06 0.03 
Credit card - retained506 983 149,398 134,155 1.37 2.97 
Total consumer - retained$552 $1,004 $444,858 $436,210 0.50 %0.93 %
(a)Includes scored mortgage and home equity loans held in CCB and AWM, and scored mortgage loans held in Corporate.
(b)At June 30, 2021March 31, 2022 and December 31, 2020,2021, excluded operating lease assets of $19.3$15.8 billion and $20.6$17.1 billion, respectively. These operating lease assets are included in other assets on the Firm’s Consolidated balance sheets. Refer to Note 16 for further information.
(c)Includes scored auto and business banking loans and overdrafts.
(d)At June 30, 2021March 31, 2022 and December 31, 2020,2021, included $16.7$2.9 billion and $19.2$5.4 billion of loans, respectively, in Business Banking under the PPP. The Firm does not expect to realize material credit losses on PPP loans because the loans are guaranteed by the SBA. Refer to Credit Portfolio on page 5748 for a further discussion of the PPP.
(e)Includes scored mortgage loans held in CCB and CIB.
(f)Credit card, home equity and certain business banking lending-related commitments represent the total available lines of credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit would be used at the same time. For credit card commitments, and if certain conditions are met, home equity commitments and certain business banking commitments, the Firm can reduce or cancel these lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. Refer to Note 22 for further information.
(g)Includes billed interest and fees.
(h)Also includes commercial card lending-related commitments primarily in CB and CIB.
(i)Represents the notional amount of protection obtained through the issuance of credit-related notes that reference certain pools of residential real estate and auto loans in the retained consumer portfolio.
(j)At June 30, 2021March 31, 2022 and December 31, 2020,2021, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $713$598 million and $874$623 million, respectively. These amounts have been excluded from nonaccrual loans based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status, as permitted by regulatory guidance.
(k)Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic. Includes
(l)At March 31, 2022 and December 31, 2021, nonaccrual loans to customers that have exited COVID-19 payment deferral programsexcluded $179 million and are$506 million, respectively, of PPP loans 90 or more days past due predominantly all of which were considered collateral-dependent at time of exit from COVID-19 payment deferral programs and charged down toguaranteed by the lower of amortized cost or fair value of the underlying collateral less costs to sell.SBA.
(l)(m)Average consumer loans held-for-sale and loans at fair value were $27.0$23.9 billion and $16.3$21.3 billion for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and were $24.2 billion and $19.4 billion for the six months ended June 30, 2021 and 2020, respectively. These amounts were excluded when calculating net charge-off/(recovery) rates.

5849

Consumer assistance
In March 2020, the Firm began providing assistance to customers in response to the COVID-19 pandemic, predominantly in the form of payment deferrals. In the first quarter of 2022, the COVID-19 consumer payment deferral programs ended for new enrollments, except for loans collateralized by residential real estate, as that program remains in effect due to the U.S. government's extension of its declaration of a national emergency with respect to the COVID-19 pandemic.
As of June 30, 2021,March 31, 2022, the Firm had $5.9 billionapproximately $825 million of retained consumer loans under payment deferral programs, which represented a decrease of approximately $22.4 billion from June 30, 2020. During the second quarter of 2021, there were approximately $386 million of new enrollments in payment deferral programs, predominantly in residential real estate and credit card.estate. Predominantly all borrowers that exited payment deferral programs are current. The Firm continues to monitorDuring the credit risk associated with loans subject to payment deferrals throughout the deferral period and on an ongoing basis after the borrowers are required to resume making regularly scheduled payments and considers expected lossesfirst quarter of principal and accrued interest on these loans2022, there were approximately $385 million of new enrollments in its allowance for credit losses.
June 30, 2021June 30, 2020
(in millions, except ratios)Loan balance
Percent of loan class balance(e)
Percent of accounts who exited payment deferral and are currentLoan balanceType of assistance
Residential real estate(a)(b)
$5,777 2.7 %95 %$20,548 Rolling three month payment deferral up to eighteen months; in most cases, deferred payments will be due at the end of the loan term
Auto and other(c)
89 0.1 95 3,357 
•Auto: Currently offering one month payment deferral (initially offered three month payment deferral). Maturity date is extended by number of months deferred
•Business Banking: Three month deferral with automatic deferment to either maturity (loan) or one year forward (line)
Credit card55 — 96 (f)4,384 Currently offering deferral of one month minimum payment (initially offered three month minimum payment deferral). Interest continues to accrue during the deferral period and is added to the principal balance
Total consumer(d)
$5,921 1.4 %96 %$28,289 
(a)Excludes $7.1 billion and $34.0 billion of third-party mortgage loans serviced at June 30, 2021 and 2020, respectively.
(b)The weighted average LTV ratio of residential real estate loans underconsumer payment deferral at June 30, 2021 was 51%.
(c)Excludes risk-rated business banking and auto dealer loans held in CCB and auto operating lease assets that were still under payment deferral programs. Auto operating lease asset payment assistance is currently offering one month payment deferral (initially offered three month payment deferral). Deferrals do not extend the term of the lease and all deferred payments are due at the end of the lease term.
(d)Includes $2.6 billion and $5.7 billion of loans that were accounted for as TDRs prior to payment deferral as of June 30, 2021 and 2020, respectively.
(e)Represents the unpaid principal balance of retained loans which were still under payment deferral programs, divided by the total unpaid principal balance of the respective loan classes retained loans.
(f)93% of the balance that exited deferral were current at June 30, 2021.
Of the $5.9 billion of loans still under payment deferral programs as of June 30, 2021, approximately $2.8 billion were accounted for as TDRs, either because they were accounted for as TDRs prior to payment deferral, or because they did not qualify for or the Firm did not elect the option to suspend TDR accounting guidance provided by the CARES Act and extended by the Consolidated Appropriations Act.
Predominantly all borrowers, including those with loans accounted for as TDRs, were current upon enrollment in payment deferral programs and are expected to exit payment deferral programs in a current status, either because no payments are contractually due during the deferral period or because payments originally contractually due during the deferral period will be due at maturity upon exit. For those borrowers that are unable to resume or continue making payments in accordance with the original or modified contractual terms of their agreements upon exit from deferral programs, they will be placed on nonaccrual status in line with the Firm’s nonaccrual policy, except for credit cards as permitted by regulatory guidance, and charged off or down in accordance with the Firm’s charge-off policies. Refer to Note 12 of JPMorgan Chase's 20202021 Form 10-K for additional information on the Firm’s nonaccrual and charge-off policies.information.
5950

Consumer, excluding credit card
Portfolio analysis
Loan balances increasedLoans decreased from December 31, 20202021 driven by higher residential real estate loans at fair value as well as an increase inand auto and other loans, partially offset by lowerhigher retained residential real estate loans.
Residential real estate: The residential real estate portfolio, including loans held-for-sale and loans at fair value, predominantly consists of prime mortgage loans and home equity lines of credit.
Retained loans declined fromincreased compared to December 31, 2020 due to paydowns outpacing originations of prime mortgage loans2021 in Home Lending, partially offset by growth in AWM.AWM, on slower prepayments. Retained nonaccrual loans decreased from December 31, 20202021 reflecting improved credit performance. Net recoveries for thethe three months ended June 30, 2021March 31, 2022 were higher when compared with the same period in the prior year as the current year had a greater benefitbenefited from improved HPI and reversals of prior write-downs due to loan prepayments as a result of the low rate environment. Net recoveries for the six months ended June 30, 2021 were relatively flat when compared with the same period in the prior year as the current year had a greater benefit from improved HPI and reversals of prior write-downs due to loan prepayments, while the prior year included a recovery on a loan sale.sale as well as further improvement in Home Price Index ("HPI").
Loans at fair value decreased from December 31, 2021, as sales outpaced originations in Home Lending due to higher interest rates and lower loan purchase activity in CIB. Nonaccrual loans at fair value increased from December 31, 2020, reflecting loan purchase activity in CIB2021 driven by higher client demand, as well as increased originations in Home Lending due to the continued low rate environment and seasonality. Nonaccrual loans at fair value decreased from December 31, 2020 largely due to sales in CIB.
The carrying value of home equity lines of credit outstanding was $20.9$17.6 billion at June 30, 2021.March 31, 2022. This amount included $8.2$5.9 billion of HELOCs that have recast from interest-only to fully amortizing payments or have been modified and $7.0$5.7 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.
At June 30, 2021March 31, 2022 and December 31, 2020,2021, the carrying value of interest-only residential mortgage loans were $26.5$32.1 billion and $25.6$30.0 billion, respectively. 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, predominantly in AWM. NetThe interest-only residential mortgage loan portfolio reflected net recoveries and charge-offs for the three and six months ended June 30, 2021, respectively, were not material, as the credit performance of this portfolio is generallyMarch 31, 2022, in line with the performance of the broader prime mortgage portfolio.
The following table provides a summary of the Firm’s residential mortgage portfolio insured and/or guaranteed by U.S. government agencies, predominantly loans held-for-sale and loans at fair value. The Firm monitors its exposure to certain potential unrecoverable claim payments related to government-insured loans and considers this exposure in estimating the allowance for loan losses.
(in millions)(in millions)June 30,
2021		December 31,
2020		(in millions)March 31,
2022		December 31,
2021
CurrentCurrent$799 $669 Current$604 $689 
30-89 days past due30-89 days past due136 235 30-89 days past due113 135 
90 or more days past due90 or more days past due713 874 90 or more days past due598 623 
Total government guaranteed loansTotal government guaranteed loans$1,648 $1,778 Total government guaranteed loans$1,315 $1,447 
Geographic composition and current estimated loan-to-value ratio of residential real estate loans
Refer to Note 11 for information on the geographic composition and current estimated LTVs of the Firm’s residential real estate loans.
Modified residential real estate loans
The following table presents information relating to modified retained residential real estate loans for which concessions have been granted to borrowers experiencing financial difficulty, which include both TDRs and modified PCD loans not accounted for as TDRs. The following table does not include loans with short-term or other insignificant modifications that are not considered concessions and, therefore, are not TDRs, or loans for which the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act.TDRs. Refer to Note 11 for further information on modifications for the three and six months ended June 30, 2021March 31, 2022 and 2020.2021.
(in millions)(in millions)June 30, 2021December 31, 2020(in millions)March 31, 2022December 31, 2021
Retained loans(a)
Retained loans(a)
$14,306 $15,406 
Retained loans(a)
$12,680 $13,251 
Nonaccrual retained loans(b)(a)
Nonaccrual retained loans(b)(a)
$4,028 $3,899 
Nonaccrual retained loans(b)(a)
$3,748 $3,938 
(a)At both June 30, 2021March 31, 2022 and December 31, 2020, $7 million 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. Refer to Note 13 for additional information about sales of loans in securitization transactions with Ginnie Mae.
(b)At June 30, 2021, and December 31, 2020, nonaccrual loans included $3.1$2.8 billion and $3.0$2.7 billion, respectively, of TDRs for which the borrowers were less than 90 days past due. Refer to Note 12 of JPMorgan Chase’s 20202021 Form 10-K for additional information about loans modified in a TDR that are on nonaccrual status.
6051

Auto and other: The auto and other loan portfolio, including loans at fair value, predominantly consists of prime-quality scored auto and business banking loans, as well as overdrafts. The portfolio increaseddecreased when compared with December 31, 20202021 due to growth in the auto portfolio from loan originations, predominantly offset by paydowns and charge-offs or liquidation of delinquent loans and a decrease in Business Bankingbusiness banking loans driven by PPP loan forgiveness. Scored auto portfolio loans were relatively flat as paydowns were offset by loan originations. Net charge-offs for the three months ended March 31, 2022 increased when compared to the same period in the prior year due to PPP loan forgiveness net of loan originations.higher overdraft and scored auto charge-offs partially offset by lower scored business banking charge-offs. The scored auto portfolio net recovery and charge-off rates were (0.11)%0.18% and 0.39%0.13% for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and 0.00% and 0.40% for the six months ended June 30, 2021 and 2020, respectively. Auto charge-offs for the three and six months ended June 30, 2021 benefited from government stimulus, payment assistance programs, and high vehicle collateral values.
Nonperforming assets
The following table presents information as of June 30, 2021March 31, 2022 and December 31, 2020,2021, about consumer, excluding credit card, nonperforming assets.
Nonperforming assets(a)
Nonperforming assets(a)
Nonperforming assets(a)
(in millions)(in millions)June 30,
2021		December 31,
2020		(in millions)March 31,
2022		December 31,
2021
Nonaccrual loansNonaccrual loansNonaccrual loans
Residential real estate(b)
Residential real estate(b)
$5,530 $6,316 
Residential real estate(b)
$4,900 $5,231 
Auto and other(c)Auto and other(c)128 151 Auto and other(c)110 119 
Total nonaccrual loansTotal nonaccrual loans5,658 6,467 Total nonaccrual loans5,010 5,350 
Assets acquired in loan satisfactionsAssets acquired in loan satisfactionsAssets acquired in loan satisfactions
Real estate ownedReal estate owned108 131 Real estate owned124 112 
OtherOther15 21 Other24 22 
Total assets acquired in loan satisfactionsTotal assets acquired in loan satisfactions123 152 Total assets acquired in loan satisfactions148 134 
Total nonperforming assetsTotal nonperforming assets$5,781 $6,619 Total nonperforming assets$5,158 $5,484 
(a)At June 30, 2021March 31, 2022 and December 31, 2020,2021, nonperforming assets excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $713$598 million and $874$623 million, respectively, and REO insured by U.S. government agencies of $7$6 million and $9$5 million, respectively. These amounts have been excluded based upon the government guarantee.
(b)Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic. Includes
(c)At March 31, 2022 and December 31, 2021, nonaccrual loans to customers that have exited COVID-19 payment deferral programsexcluded $179 million and are$506 million, respectively, of PPP loans 90 or more days past due predominantly all of which were considered collateral-dependent at time of exit from COVID-19 payment deferral programs and charged down toguaranteed by the lower of amortized cost or fair value of the underlying collateral less costs to sell.SBA.
Nonaccrual loans
The following table presents changes in consumer, excluding credit card, nonaccrual loans for the sixthree months ended June 30, 2021March 31, 2022 and 2020.2021.
Nonaccrual loan activity(a)
Six months ended June 30,
(in millions)		20212020
Beginning balance$6,467 $3,366 
Additions:
PCD loans, upon adoption of CECLNA708
Other additions1,422 2,378 
Total additions1,422 3,086 
Reductions:
Principal payments and other(a)
1,215 478 
Charge-offs122 220 
Returned to performing status853 361 
Foreclosures and other liquidations41 146 
Total reductions2,231 1,205 
Net changes(809)1,881 
Ending balance$5,658 $5,247 
Nonaccrual loan activity
Three months ended March 31,
(in millions)		20222021
Beginning balance$5,350 $6,467 
Additions638 673 
Reductions:
Principal payments and other(a)
363 598 
Charge-offs66 73 
Returned to performing status495 459 
Foreclosures and other liquidations54 20 
Total reductions978 1,150 
Net changes(340)(477)
Ending balance$5,010 $5,990 
(a)Other reductions includes loan sales.
Refer to Note 11 for further information about the consumer credit portfolio, including information about delinquencies, other credit quality indicators, loan modifications and loans that were in the process of active or suspended foreclosure.
Purchased credit deteriorated (“PCD”) loans
The following tables provide credit-related information for PCD loans which are reported in the consumer, excluding credit card portfolio’s residential real estate class.estate.
(in millions, except ratios)(in millions, except ratios)June 30,
2021		December 31,
2020		(in millions, except ratios)March 31,
2022		December 31,
2021
Loan delinquency(a)
Loan delinquency(a)
Loan delinquency(a)
CurrentCurrent$14,420 $16,036 Current$12,186 $12,746 
30-149 days past due30-149 days past due339 432 30-149 days past due325 331 
150 or more days past due150 or more days past due548 573 150 or more days past due492 664 
Total PCD loansTotal PCD loans$15,307 $17,041 Total PCD loans$13,003 $13,741 
% of 30+ days past due to total retained PCD loans% of 30+ days past due to total retained PCD loans5.79 %5.90 %% of 30+ days past due to total retained PCD loans6.28 %7.24 %
Nonaccrual loans(b)
$1,604 $1,609 
Nonaccrual loansNonaccrual loans$1,455 $1,616 
(in millions, except ratios)Three months ended June 30,Six months ended June 30,
2021202020212020
Net charge-offs$3 $27 $16 $33 
Net charge-off rate0.08 %0.57 %0.20 %0.34 %
(in millions, except ratios)Three months ended March 31,
20222021
Net charge-offs/(recoveries)$(1)$13 
Net charge-off/(recovery) rate(0.03)%0.32 %
(a)At June 30, 2021March 31, 2022 and December 31, 2020,2021, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent.
(b)Includes loans to customers that have exited COVID-19 payment deferral programs and are 90 or more days past due, predominantly all of which were considered collateral-dependent at time of exit from COVID-19 payment deferral programs and charged down to the lower of amortized cost or fair value of the underlying collateral less costs to sell.
6152

Credit card
Total credit card loans decreased from December 31, 20202021 reflecting higher payments, predominantly offset by strong sales volume in the second quarter.impact of seasonality. The June 30,March 31, 2022 30+ and 90+ day delinquency rates of 1.09% and 0.54%, respectively, increased compared to the December 31, 2021 30+ and 90+ day delinquency rates of 1.01%1.04% and 0.54%0.50%, respectively, decreased compared toalso reflecting the December 31, 2020 30+ and 90+ day delinquency ratesimpact of 1.68% and 0.92%, respectively. The delinquency rates were positively impacted by government stimulus and borrowers who participated in payment assistance programs.seasonality. Net charge-offs decreased for the three and six months ended June 30, 2021March 31, 2022 compared with the same period in the prior year reflecting lower charge-offsyear. Delinquency and higher recoveries asnet charge-off rates continue to benefit from elevated consumer cash balances remained elevated benefiting from the ongoing impact of government stimulus and payment assistance programs.balances.
Consistent with the Firm’s policy, all credit card loans typically remain on accrual status until charged off. However, the Firm’s allowance for loan losses includes the estimated uncollectible portion of accrued and billed interest and fee income. Refer to Note 11 for further information about this portfolio, including information about delinquencies.
Geographic and FICO composition of credit card loans
Refer to Note 11 for information on the geographic and FICO composition of the Firm’s credit card loans.
Modifications of credit card loans
At June 30, 2021,March 31, 2022, the Firm had $1.2 billion$901 million of credit card loans outstanding that have been modified in TDRs, which does not include loans with short-term or other insignificant modifications that are not considered TDRs, compared to $1.4$1.0 billion at December 31, 2020.2021. Refer to Note 11 for additional information about loan modification programs to borrowers.
6253

WHOLESALE CREDIT PORTFOLIO
In its wholesale businesses, the Firm is exposed to credit risk primarily through its underwriting, lending, market-making, and hedging activities with and for clients and counterparties, as well as through various operating services (such as cash management and clearing activities), securities financing activities and cash placed with banks. A portion of the loans originated or acquired by the Firm’s wholesale businesses is generally retained on the balance sheet. The Firm distributes a significant percentage of the loans that it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk. The wholesale portfolio is actively managed, in part by conducting ongoing, in-depth reviews of client credit quality and transaction structure inclusive of collateral where applicable, and of industry, product and client concentrations. Refer to the industry discussion on pages 65-6956-59 for further information.
The Firm’s wholesale credit portfolio includes exposure held in CIB, CB, AWM and Corporate, as well as risk-rated exposures held in CCB, including business banking and auto dealer exposure for which the wholesale methodology is applied when determining the allowance for credit losses.
In the first half of 2021, thethree months ended March 31, 2022, credit environment continued to improve following the broad-based deterioration in 2020 that resulted from the impacts of the COVID-19 pandemic.perform well with charge-offs at historically low levels, however, nonperforming exposure increased driven by client-specific Russia and Russia-associated downgrades. Refer to Business Developments on page 8 and Country Risk on pages 72-73 for additional information.
As of June 30, 2021,March 31, 2022, retained loans increased $9.9$9.6 billion driven by CIB and AWM largelyCB partially offset by decreases in CB and CCB. Lending relatedAWM. Lending-related commitments increased $52.8$10.8 billion, predominantly driven by net portfolio activity in CIB and CB, including anCIB.
As of March 31, 2022, the net increase in held for sale commitments intended to be syndicated.
In the six months ended June 30, 2021, the investment- grade percentagenonperforming loans of the credit portfolio decreased from 71% to 70%$303 million was driven by net portfolio activity, including new commitments. Criticized exposureclient-specific Russia and Russia-associated downgrades. Nonperforming derivatives increased $3.4 billion from $41.6 billion at December 31, 2020 to $45.0 billion at June 30, 2021,$281 million largely driven by selectclient-specific downgrades largely offset by select upgrades and net portfolio activity. Nonperforming exposure remained flat at $4.9 billion and net charge off activity was $63 million.in commodities.

Wholesale credit portfolioWholesale credit portfolioWholesale credit portfolio
Credit exposure
Nonperforming(c)
Credit exposureNonperforming
(in millions)(in millions)Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		(in millions)Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021
Loans retainedLoans retained$524,855 $514,947 $2,698 $3,318 Loans retained$569,953 $560,354 $2,289 $2,054 
Loans held-for-saleLoans held-for-sale13,715 5,784 92 284 Loans held-for-sale5,617 7,401 47 48 
Loans at fair valueLoans at fair value30,897 29,327 624 504 Loans at fair value32,943 32,357 412 343 
Loans–reported569,467 550,058 3,414 4,106 
LoansLoans608,513 600,112 2,748 2,445 
Derivative receivablesDerivative receivables70,711 79,630 481 56 Derivative receivables73,636 57,081 597 316 
Receivables from customers(a)
Receivables from customers(a)
59,609 47,710 — — 
Receivables from customers(a)
68,473 59,645 — — 
Total wholesale credit-related assetsTotal wholesale credit-related assets699,787 677,398 3,895 4,162 Total wholesale credit-related assets750,622 716,838 3,345 2,761 
Assets acquired in loan satisfactionsAssets acquired in loan satisfactionsAssets acquired in loan satisfactions
Real estate ownedReal estate ownedNANA126 125 Real estate ownedNANA102 101 
OtherOtherNANA— — OtherNANA— — 
Total assets acquired in loan satisfactionsTotal assets acquired in loan satisfactionsNANA126 125 Total assets acquired in loan satisfactionsNANA102 101 
Lending-related commitmentsLending-related commitments502,616 449,863 851 577 Lending-related commitments497,232 486,445 767 764 
Total wholesale credit portfolioTotal wholesale credit portfolio$1,202,403 $1,127,261 $4,872 $4,864 Total wholesale credit portfolio$1,247,854 $1,203,283 $4,214 $3,626 
Credit derivatives and credit-related notes used in credit portfolio management activities(b)
Credit derivatives and credit-related notes used in credit portfolio management activities(b)
$(21,816)$(23,218)$— $— 
Credit derivatives and credit-related notes used in credit portfolio management activities(b)
$(17,955)$(20,190)$— $— 
Liquid securities and other cash collateral held against derivativesLiquid securities and other cash collateral held against derivatives(11,324)(14,806)NANALiquid securities and other cash collateral held against derivatives(15,166)(10,102)NANA
(a)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.
(b)Represents the net notional amount of protection purchased and sold through credit derivatives and credit-related notes used to manage both performing and nonperforming wholesale credit exposures; these derivatives do not qualify for hedge accounting under U.S. GAAP. Refer to Credit derivatives on page 7262 and Note 4 for additional information. Prior-period amount has been revised to conform with the current presentation.
(c)Loans that were modified in response to the COVID-19 pandemic continue to be risk-rated in accordance with the Firm’s overall credit risk management framework. As of June 30, 2021, predominantly all of these loans were considered performing.


6354

Wholesale assistance
In March 2020, the Firm began providing assistance to clients in response to the COVID-19 pandemic, predominantly in the form of payment deferrals and covenant modifications.
As of June 30, 2021, the Firm had approximately $460 million of retained loans still under payment deferral, representing 0.1% of the loan portfolio, which decreased from $16.8 billion at June 30, 2020. Predominantly all clients that exited deferral are current or have paid down their loans, and the Firm has not experienced meaningful new payment deferral requests. The Firm continues to monitor the credit risk associated with loans subject to deferrals throughout the deferral period and on an ongoing basis after the borrowers are required to resume making regularly scheduled payments and considers expected losses of principal and accrued interest on these loans in its allowance for credit losses.
In addition, the Firm granted assistance in the form of covenant modifications. These types of assistance, both payment deferrals and covenant modifications, are generally not reported as TDRs, either because the modifications were insignificant or they qualified for the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act. Loans under assistance continue to be risk-rated in accordance with the Firm’s overall credit risk management framework. As of June 30, 2021, predominantly all of these loans were considered performing.
Wholesale credit exposure – maturity and ratings profile
The following tables present the maturity and internal risk ratings profiles of the wholesale credit portfolio as of June 30, 2021,March 31, 2022, and December 31, 2020.2021. The Firm generally considers internal ratings with qualitative characteristics equivalent to BBB-/Baa3 or higher as investment grade, and takes into consideration collateral and structural support when determining the internal risk rating for each credit facility. Refer to Note 12 of JPMorgan Chase's 20202021 Form 10-K for further information on internal risk ratings.
Maturity profile(d)
Ratings profile
Maturity profile(d)
Ratings profile
1 year or less 1 year through 5 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IG1 year or less 1 year through 5 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IG
June 30, 2021
(in millions, except ratios)
March 31, 2022
(in millions, except ratios)
March 31, 2022
(in millions, except ratios)
1 year or less 1 year through 5 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IG
Loans retainedLoans retained$204,582 $192,904 $127,369 $524,855 $387,000 $137,855 $524,855 74 %Loans retained
Derivative receivablesDerivative receivables70,711 70,711 Derivative receivables73,636 73,636 
Less: Liquid securities and other cash collateral held against derivativesLess: Liquid securities and other cash collateral held against derivatives(11,324)(11,324)Less: Liquid securities and other cash collateral held against derivatives(15,166)(15,166)
Total derivative receivables, net of collateralTotal derivative receivables, net of collateral20,343 15,673 23,371 59,387 32,956 26,431 59,387 55 Total derivative receivables, net of collateral27,765 14,761 15,944 58,470 38,640 19,830 58,470 66 
Lending-related commitmentsLending-related commitments137,552 341,412 23,652 502,616 338,195 164,421 502,616 67 Lending-related commitments139,482 332,563 25,187 497,232 339,092 158,140 497,232 68 
SubtotalSubtotal362,477 549,989 174,392 1,086,858 758,151 328,707 1,086,858 70 Subtotal381,338 571,476 172,841 1,125,655 788,919 336,736 1,125,655 70 
Loans held-for-sale and loans at fair value(a)
Loans held-for-sale and loans at fair value(a)
44,612 44,612 
Loans held-for-sale and loans at fair value(a)
38,560 38,560 
Receivables from customersReceivables from customers59,609 59,609 Receivables from customers68,473 68,473 
Total exposure – net of liquid securities and other cash collateral held against derivativesTotal exposure – net of liquid securities and other cash collateral held against derivatives$1,191,079 $1,191,079 Total exposure – net of liquid securities and other cash collateral held against derivatives$1,232,688 $1,232,688 
Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)
Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)
$(7,615)$(11,699)$(2,502)$(21,816)$(17,675)$(4,141)$(21,816)81 %
Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)
$(3,221)$(10,093)$(4,641)$(17,955)$(14,769)$(3,186)$(17,955)82 %
Maturity profile(d)
Ratings profile
Maturity profile(d)
Ratings profile
1 year or less 1 year through 5 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IG1 year or less 1 year through 5 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IG
December 31, 2020
(in millions, except ratios)
December 31, 2021
(in millions, except ratios)		December 31, 2021
(in millions, except ratios)		1 year or less 1 year through 5 yearsAfter 5 yearsTotalInvestment-gradeNoninvestment-gradeTotalTotal % of IG
Loans retainedLoans retained$183,969 $197,905 $133,073 $514,947 $379,273 $135,674 $514,947 74 %Loans retained
Derivative receivablesDerivative receivables79,630 79,630 Derivative receivables57,081 57,081 
Less: Liquid securities and other cash collateral held against derivativesLess: Liquid securities and other cash collateral held against derivatives(14,806)(14,806)Less: Liquid securities and other cash collateral held against derivatives(10,102)(10,102)
Total derivative receivables, net of collateralTotal derivative receivables, net of collateral18,456 17,599 28,769 64,824 38,941 25,883 64,824 60 Total derivative receivables, net of collateral13,648 12,814 20,517 46,979 31,934 15,045 46,979 68 
Lending-related commitmentsLending-related commitments116,950 315,179 17,734 449,863 312,694 137,169 449,863 70 Lending-related commitments120,929 340,308 25,208 486,445 331,116 155,329 486,445 68 
SubtotalSubtotal319,375 530,683 179,576 1,029,634 730,908 298,726 1,029,634 71 Subtotal348,641 571,298 173,839 1,093,778 773,061 320,717 1,093,778 71 
Loans held-for-sale and loans at fair value(a)
Loans held-for-sale and loans at fair value(a)
35,111 35,111 
Loans held-for-sale and loans at fair value(a)
39,758 39,758 
Receivables from customersReceivables from customers47,710 47,710 Receivables from customers59,645 59,645 
Total exposure – net of liquid securities and other cash collateral held against derivativesTotal exposure – net of liquid securities and other cash collateral held against derivatives$1,112,455 $1,112,455 Total exposure – net of liquid securities and other cash collateral held against derivatives$1,193,181 $1,193,181 
Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)
Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)
$(6,765)$(13,627)$(2,826)$(23,218)$(18,164)$(5,054)$(23,218)78 %
Credit derivatives and credit-related notes used in credit portfolio management activities(b)(c)
$(7,509)$(10,414)$(2,267)$(20,190)$(15,559)$(4,631)$(20,190)77 %
(a)Represents loansLoans held-for-sale are primarily related to syndicated loans and loans transferred from the retained portfolio, and loans at fair value.portfolio.
(b)These derivatives do not qualify for hedge accounting under U.S. GAAP.
(c)The notional amounts are presented on a net basis by underlying reference entity and the ratings profile shown is based on the ratings of the reference entity on which protection has been purchased. Predominantly all of the credit derivatives entered into by the Firm where it has purchased protection used in credit portfolio management activities are executed with investment-grade counterparties. In addition, the Firm obtains credit protection against
64

certain loans in the retained loan portfolio through the issuance of credit-related notes. Prior-period amounts have been revised to conform with the current presentation.
(d)The maturity profile of retained loans, lending-related commitments and derivative receivables is generally based on remaining contractual maturity. Derivative contracts that are in a receivable position at June 30, 2021,March 31, 2022, may become payable prior to maturity based on their cash flow profile or changes in market conditions.

55

Wholesale credit exposure – industry exposures
The Firm focuses on the management and diversification of its industry exposures, and pays particular attention to industries with actual or potential credit concerns.
Exposures deemed criticized align with the U.S. banking regulators’ definition of criticized exposures, which consist of the special mention, substandard and doubtful categories. Total criticized exposure, excluding loans held-for-sale and loans at fair value, was $45.0$36.9 billion and $38.2 billion at June 30, 2021, compared with $41.6 billion atMarch 31, 2022 and December 31, 2020,2021, representing approximately 4.1%3.2% and 4.0%3.5% of total wholesale credit exposure, respectively. The increasedecrease in total criticized exposure was driven by select downgrades, largely offset by selectclient-specific upgrades and net portfolio activity.activity, largely offset by client-specific downgrades. The total$36.9 billion of criticized exposure at June 30, 2021March 31, 2022 was largely undrawn and $40.9$33.2 billion was performing.
65

The table below summarizes by industry the Firm’s exposures as of June 30, 2021,March 31, 2022, and December 31, 2020.2021. The industry of risk category is generally based on the client or counterparty’s primary business activity. Refer to Note 4 of JPMorgan Chase's 20202021 Form 10-K for additional information on industry concentrations.
Wholesale credit exposure – industries(a)
Selected metrics
30 days or more past due and accruing
loans(h)
Net
charge-offs/
(recoveries)
Credit derivative hedges and credit-related notes(i)
Liquid securities
and other cash collateral held against derivative
receivables
Noninvestment-grade
As of or for the six months ended
Credit exposure(f)(g)
Investment- gradeNoncriticizedCriticized performingCriticized nonperforming
June 30, 2021
(in millions)
Real Estate$147,119 $113,988 $26,805 $5,828 $498 $172 $(7)$(188)$— 
Individuals and Individual Entities(b)
131,814 116,198 14,803 239 574 1,660 24 — (3)
Consumer & Retail113,618 58,782 45,422 8,600 814 152 6 (170)— 
Technology, Media &
  Telecommunications		80,346 48,099 25,888 6,080 279 33 — (875)(33)
Asset Managers76,694 63,597 13,058 4 35 12 — — (5,100)
Industrials68,267 36,100 27,765 4,276 126 187 2 (551)(4)
Healthcare64,460 42,530 20,239 1,609 82 35 (4)(305)(156)
Banks & Finance Cos56,626 37,930 16,955 1,730 11 2 11 (506)(1,302)
Oil & Gas41,855 17,177 20,129 4,081 468 79 40 (417)(3)
Automotive40,877 24,910 14,773 1,029 165 48 (3)(377)— 
State & Municipal Govt(c)
36,656 35,973 572 101 10 8 — — (33)
Utilities32,550 22,617 8,730 936 267 4 — (385)(3)
Transportation21,374 11,716 4,972 4,473 213 19 (2)(81)(24)
Chemicals & Plastics21,153 10,725 9,672 743 13 8 — (10)— 
Metals & Mining15,791 6,180 8,927 589 95 7 1 (88)(12)
Insurance14,179 10,699 3,426 54 — 6 — — (2,228)
Central Govt12,855 12,458 397 — — — — (6,989)(143)
Securities Firms5,689 2,693 2,443 550 3 — — (48)(173)
Financial Markets Infrastructure4,628 4,345 283 — — — — — (1)
All other(d)
111,631 91,950 19,295 9 377 4 (5)(10,826)(2,106)
Subtotal$1,098,182 $768,667 $284,554 $40,931 $4,030 $2,436 $63 $(21,816)$(11,324)
Loans held-for-sale and loans at fair value44,612 
Receivables from customers59,609 
Total(e)
$1,202,403 








Wholesale credit exposure – industries(a)
Selected metrics
30 days or more past due and accruing
loans		Net
charge-offs/
(recoveries)
Credit derivative hedges and credit-related notes(h)
Liquid securities
and other cash collateral held against derivative
receivables
Noninvestment-grade
As of or for the three months ended
Credit exposure(f)(g)
Investment- gradeNoncriticizedCriticized performingCriticized nonperforming
March 31, 2022
(in millions)
Real Estate$160,376 $123,203 $32,237 $4,404 $532 $216 $6 $(314)$— 
Individuals and Individual Entities(b)
137,486 119,509 17,098 433 446 1,800 — — — 
Consumer & Retail121,051 59,851 53,929 6,828 443 345 1 (495)— 
Asset Managers90,092 75,238 14,843 — 11 59 — — (5,852)
Technology, Media & Telecommunications76,522 43,595 26,231 6,314 382 133 — (922)(9)
Industrials70,319 38,179 29,155 2,825 160 225 — (556)(116)
Healthcare59,582 43,323 14,508 1,683 68 129 1 (565)(150)
Banks & Finance Cos56,654 31,829 23,845 937 43 — — (389)(722)
Oil & Gas52,023 25,613 25,486 750 174 36 5 (556)(1)
Automotive36,903 24,793 9,661 2,327 122 19 — (456)— 
Utilities34,717 26,158 7,394 901 264 — 28 (405)(1)
State & Municipal Govt(c)
33,840 33,139 586 102 13 75 — — (12)
Chemicals & Plastics18,676 11,993 6,112 455 116 15 — (127)— 
Insurance18,221 13,646 4,484 91 — — — (25)(3,511)
Metals & Mining17,081 7,977 8,445 458 201 32 — (15)(6)
Transportation16,816 5,754 6,249 4,516 297 55 — (110)— 
Central Govt11,657 11,297 348 — 12 — — (6,694)(98)
Securities Firms7,438 3,629 3,809 — — — (13)(46)(1,535)
Financial Markets Infrastructure5,725 5,314 411 — — — — — — 
All other(d)
115,642 98,992 16,064 217 369 96 2 (6,280)(3,153)
Subtotal$1,140,821 $803,032 $300,895 $33,241 $3,653 $3,235 $30 $(17,955)$(15,166)
Loans held-for-sale and loans at fair value38,560 
Receivables from customers68,473 
Total(e)
$1,247,854 












6656




(continued from previous page)
Selected metrics
30 days or more past due and accruing
loans(h)
Net
charge-offs/
(recoveries)
Credit derivative hedges and credit-related notes(i)
Liquid securities
and other cash collateral held against derivative
receivables
Noninvestment-grade
As of or for the year ended
Credit exposure(f)(g)
Investment- gradeNoncriticizedCriticized performingCriticized nonperforming
December 31, 2020
(in millions)
Real Estate$148,498 $116,124 $27,576 $4,294 $504 $374 $94 $(190)$— 
Individuals and Individual Entities(b)
122,870 107,266 14,688 227 689 1,570 (17)— — 
Consumer & Retail108,437 57,580 41,624 8,852 381 203 55 (381)(5)
Technology, Media &
  Telecommunications		72,150 36,435 27,770 7,738 207 10 73 (984)(56)
Asset Managers66,573 57,582 8,885 85 21 19 1 — (4,685)
Industrials66,470 37,512 26,881 1,852 225 278 70 (658)(61)
Healthcare60,118 44,901 13,356 1,684 177 96 104 (378)(191)
Banks & Finance Cos54,032 35,115 17,820 1,045 52 20 13 (659)(1,648)
Oil & Gas39,159 18,456 14,969 4,952 782 11 249 (488)(4)
Automotive43,331 25,548 15,575 2,149 59 152 22 (434)— 
State & Municipal Govt(c)
38,286 37,705 574 2 5 41 — — (41)
Utilities30,124 22,451 7,048 571 54 14 (7)(402)(1)
Transportation16,232 7,549 6,340 2,137 206 30 117 (83)(26)
Chemicals & Plastics17,176 10,622 5,703 822 29 6 — (83)— 
Metals & Mining15,542 5,958 8,699 704 181 8 16 (141)(13)
Insurance13,141 10,177 2,960 3 1 7 — — (1,771)
Central Govt17,025 16,652 373 — — — — (8,364)(982)
Securities Firms8,048 6,116 1,927 1 4 — 18 (49)(3,423)
Financial Markets Infrastructure6,515 6,449 66 — — — — — (10)
All other(d)
100,713 84,650 15,185 504 374 83 (9)(9,924)(1,889)
Subtotal$1,044,440 $744,848 $258,019 $37,622 $3,951 $2,922 $799 $(23,218)$(14,806)
Loans held-for-sale and loans at fair value35,111 

Receivables from customers47,710 
Total(e)
$1,127,261 








(continued from previous page)
Selected metrics
30 days or more past due and accruing
loans		Net
charge-offs/
(recoveries)
Credit derivative hedges and credit-related notes(h)
Liquid securities
and other cash collateral held against derivative
receivables
Noninvestment-grade
As of or for the year ended
Credit exposure(f)(g)
Investment- gradeNoncriticizedCriticized performingCriticized nonperforming
December 31, 2021
(in millions)
Real Estate$155,069 $120,174 $29,642 $4,636 $617 $394 $6 $(190)$— 
Individuals and Individual Entities(b)
141,973 122,606 18,797 99 471 1,450 32 — (1)
Consumer & Retail122,789 59,622 53,317 9,445 405 288 2 (357)— 
Asset Managers81,228 68,593 12,630 — 5 8 — — (3,900)
Technology, Media & Telecommunications84,070 49,610 25,540 8,595 325 58 (1)(935)(12)
Industrials66,974 36,953 26,957 2,895 169 428 13 (608)(1)
Healthcare59,014 42,133 15,136 1,686 59 204 (4)(490)(174)
Banks & Finance Cos54,684 29,732 23,809 1,138 5 9 9 (553)(810)
Oil & Gas42,606 20,698 20,222 1,558 128 4 60 (582)— 
Automotive34,573 24,606 9,446 399 122 95 (3)(463)— 
Utilities33,203 25,069 7,011 914 209 11 6 (382)(4)
State & Municipal Govt(c)
33,216 32,522 586 101 7 74 — — (14)
Chemicals & Plastics17,660 11,319 5,817 518 6 7 — (67)— 
Insurance13,926 9,943 3,887 96 — — — (25)(2,366)
Metals & Mining16,696 7,848 8,491 294 63 27 7 (15)(4)
Transportation14,635 6,010 5,983 2,470 172 21 20 (110)(24)
Central Govt11,317 11,067 250 — — — — (7,053)(72)
Securities Firms4,180 2,599 1,578 — 3 — — (47)(217)
Financial Markets Infrastructure4,377 3,987 390 — — — — — — 
All other(d)
111,690 97,537 13,580 205 368 242 (5)(8,313)(2,503)
Subtotal$1,103,880 $782,628 $283,069 $35,049 $3,134 $3,320 $142 $(20,190)$(10,102)
Loans held-for-sale and loans at fair value39,758 

Receivables from customers59,645 
Total(e)
$1,203,283 
(a)The industry rankings presented in the table as of December 31, 2020,2021, are based on the industry rankings of the corresponding exposures at June 30, 2021,March 31, 2022, not actual rankings of such exposures at December 31, 2020.2021.
(b)Individuals and Individual Entities predominantly consists of Global Private Bank 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, 2021, and December 31, 2020, noted above, the Firm held: $6.9$7.1 billion of trading assets at both March 31, 2022, and December 31, 2021; $14.8 billion and $7.2 billion, respectively, of trading assets; $18.5 billion and $20.4$15.9 billion, respectively, of AFS securities; and $13.5$14.8 billion and $12.8$14.0 billion, respectively, of HTM securities, issued by U.S. state and municipal governments. Refer to Note 2 and Note 9 for further information.
(d)All other includes: SPEs, and Private education and civic organizations, representing approximately 93%94% and 7%, respectively,6% at June 30, 2021both March 31, 2022 and 92% and 8%, respectively, at December 31, 2020.2021.
(e)Excludes cash placed with banks of $694.9$744.0 billion and $516.9$729.6 billion, at June 30, 2021,March 31, 2022, and December 31, 2020,2021, respectively, which is predominantly placed with various central banks, primarily Federal Reserve Banks.
(f)Credit exposure is net of risk participations and excludes the benefit of credit derivatives and credit-related notes used in credit portfolio management activities held against derivative receivables or loans and liquid securities and other cash collateral held against derivative receivables.
(g)Credit exposure includes held-for-sale and fair value option elected lending-related commitments.
(h)Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic.
(i)Represents the net notional amounts of protection purchased and sold through credit derivatives and credit-related notesused 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. Prior-period amounts have been revised to conform with the current presentation.

6757

Presented below is additional detail on certain of the Firm’s largest industry exposures and/or certain industries which present potential heightened credit concerns.exposures.
Real Estate
Real Estate exposure was $147.1$160.4 billion as of June 30, 2021,March 31, 2022, of which $85.4$91.1 billion was multifamily lending as shown in the table below. Criticized exposure increaseddecreased by $1.5 billion$317 million from $4.8$5.3 billion at December 31, 20202021 to $6.3$4.9 billion at June 30, 2021,March 31, 2022, driven by selectclient-specific upgrades and net portfolio activity largely offset by client-specific downgrades.
June 30, 2021March 31, 2022
(in millions, except ratios)(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade
% Drawn(d)
(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade
% Drawn(d)
Multifamily(a)
Multifamily(a)
$85,171 $184 $85,355 84 %91 %
Multifamily(a)
$91,057 $72 $91,129 84 %89 %
OfficeOffice16,132 284 16,416 73 70 Office15,776 70 15,846 76 73 
Other Income Producing Properties(b)
Other Income Producing Properties(b)
11,836 517 12,353 74 56 
Other Income Producing Properties(b)
14,351 241 14,592 77 50 
Retail10,191 151 10,342 60 65 
IndustrialIndustrial9,823 60 9,883 81 62 Industrial13,363 23 13,386 69 58 
Services and Non Income ProducingServices and Non Income Producing9,705 34 9,739 62 47 Services and Non Income Producing12,162 21 12,183 63 50 
RetailRetail10,076 56 10,132 64 68 
LodgingLodging2,983 48 3,031 18 43 Lodging3,071 37 3,108 4 30 
Total Real Estate Exposure(c)
Total Real Estate Exposure(c)
145,841 1,278 147,119 77 78 
Total Real Estate Exposure(c)
$159,856 $520 $160,376 77 %76 %
December 31, 2020December 31, 2021
(in millions, except ratios)(in millions, except ratios)Loans and Lending-related CommitmentsDerivative
Receivables		Credit exposure% Investment-
grade
% Drawn(d)
(in millions, except ratios)Loans and Lending-related CommitmentsDerivative
Receivables		Credit exposure% Investment-
grade
% Drawn(d)
Multifamily(a)
Multifamily(a)
$85,368 $183 $85,551 85 %92 %
Multifamily(a)
$89,032 $122 $89,154 84 %89 %
OfficeOffice16,372 475 16,847 76 70 Office16,409 234 16,643 75 71 
Other Income Producing Properties(b)
Other Income Producing Properties(b)
13,435 421 13,856 76 55 
Other Income Producing Properties(b)
13,018 498 13,516 77 55 
Retail10,573 199 10,772 60 69 
IndustrialIndustrial9,039 69 9,108 76 73 Industrial11,546 66 11,612 75 64 
Services and Non Income ProducingServices and Non Income Producing9,242 22 9,264 62 47 Services and Non Income Producing11,512 24 11,536 63 50 
RetailRetail9,580 106 9,686 61 69 
LodgingLodging3,084 16 3,100 24 57 Lodging2,859 63 2,922 5 33 
Total Real Estate ExposureTotal Real Estate Exposure147,113 1,385 148,498 78 80 Total Real Estate Exposure$153,956 $1,113 $155,069 77 %77 %
(a)Multifamily exposure is largely in California.
(b)Other Income Producing Properties consists of clients with diversified property types or other property types outside of multifamily, office, retail, industrial and lodging with less material exposures.categories listed in the table above.
(c)Real Estate exposure is approximately 79%77% secured; unsecured exposure is approximately 78%73% investment-grade.
(d)Represents drawn exposure as a percentage of credit exposure.

6858

Consumer & Retail
Consumer & Retail exposure was $113.6$121.1 billion as of June 30, 2021,March 31, 2022, and predominantly included Retail, Food and Beverage, and Business and Consumer Services as shown in the table below.Criticized exposure decreased by $2.6 billion from $9.9 billion at December 31, 2021 to $7.3 billion at March 31, 2022, driven by net portfolio activity and client-specific upgrades partially offset by client-specific downgrades.
June 30, 2021March 31, 2022
(in millions, except ratios)(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade
% Drawn(d)
(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade
% Drawn(d)
Retail(a)
Retail(a)
$31,999 $1,210 $33,209 48 %32 %
Retail(a)
$33,609 $985 $34,594 49 %33 %
Food and BeverageFood and Beverage29,020 999 30,019 62 35 Food and Beverage33,115 789 33,904 56 35 
Business and Consumer ServicesBusiness and Consumer Services29,468 447 29,915 49 33 Business and Consumer Services29,790 325 30,115 48 39 
Consumer Hard GoodsConsumer Hard Goods13,463 119 13,582 61 35 Consumer Hard Goods14,453 163 14,616 54 37 
Leisure(b)
Leisure(b)
6,711 182 6,893 18 44 
Leisure(b)
7,790 32 7,822 18 37 
Total Consumer & Retail(c)
Total Consumer & Retail(c)
110,661 2,957 113,618 52 34 
Total Consumer & Retail(c)
$118,757 $2,294 $121,051 49 %36 %
December 31, 2020December 31, 2021
(in millions, except ratios)(in millions, except ratios)Loans and Lending-related CommitmentsDerivative
Receivables		Credit exposure% Investment-
grade
% Drawn(d)
(in millions, except ratios)Loans and Lending-related CommitmentsDerivative
Receivables		Credit exposure% Investment-
grade
% Drawn(d)
Retail(a)
Retail(a)
$32,486 $887 $33,373 52 %33 %
Retail(a)
$32,872 $1,152 $34,024 50 %31 %
Food and BeverageFood and Beverage28,012 897 28,909 62 33 Food and Beverage30,434 957 31,391 59 33 
Business and Consumer ServicesBusiness and Consumer Services24,760 599 25,359 52 41 Business and Consumer Services32,159 347 32,506 46 33 
Consumer Hard GoodsConsumer Hard Goods12,937 178 13,115 59 36 Consumer Hard Goods17,035 111 17,146 46 30 
Leisure(b)
Leisure(b)
7,440 241 7,681 18 43 
Leisure(b)
7,620 102 7,722 17 34 
Total Consumer & RetailTotal Consumer & Retail105,635 2,802 108,437 53 36 Total Consumer & Retail$120,120 $2,669 $122,789 49 %32 %
(a)Retail consists of Home Improvement & Specialty Retailers, Restaurants, Supermarkets, Discount & Drug Stores, Specialty Apparel and Department Stores.
(b)Leisure consists of Gaming, Arts & Culture, Travel Services and Sports & Recreation. As of June 30, 2021March 31, 2022 approximately 74%81% of the noninvestment-grade Leisure portfolio is secured.
(c)Approximately 78% of the noninvestment-grade portfolioConsumer & Retail exposure is secured.approximately 55% secured; unsecured exposure is approximately 75% investment-grade.
(d)Represents drawn exposure as a percent of credit exposure.
Oil & Gas
Oil & Gas exposure was $41.9$52.0 billion as of June 30, 2021,March 31, 2022, including $22.6$30.8 billion of Exploration & Production and Oil field Services as shown in the table below. During the six months ended June 30, 2021, the investment-grade percentage decreased from 47% to 41%, predominantly driven by increasedThe increase in derivative receivables resulting fromreflects market movements. However, criticizedmovements related to Oil & Gas prices. Criticized exposure decreased by $1.2 billion$762 million from $5.7$1.7 billion at December 31, 20202021 to $4.5 billion$924 million at June 30, 2021,March 31, 2022, predominantly driven by select upgrades and net portfolio activity, largely offset by select downgrades.client-specific upgrades.
June 30, 2021March 31, 2022
(in millions, except ratios)(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade
% Drawn(c)
(in millions, except ratios)Loans and Lending-related CommitmentsDerivative ReceivablesCredit exposure% Investment-grade
% Drawn(c)
Exploration & Production ("E&P") and Oil field ServicesExploration & Production ("E&P") and Oil field Services$16,957 $5,671 $22,628 29 %26 %Exploration & Production ("E&P") and Oil field Services$18,850 $11,900 $30,750 42 %20 %
Other Oil & Gas(a)
Other Oil & Gas(a)
18,400 827 19,227 55 22 
Other Oil & Gas(a)
19,416 1,857 21,273 59 24 
Total Oil & Gas(b)
Total Oil & Gas(b)
35,357 6,498 41,855 41 24 
Total Oil & Gas(b)
$38,266 $13,757 $52,023 49 %22 %
December 31, 2020December 31, 2021
(in millions, except ratios)(in millions, except ratios)Loans and Lending-related CommitmentsDerivative
Receivables		Credit exposure% Investment-
grade
% Drawn(c)
(in millions, except ratios)Loans and Lending-related CommitmentsDerivative
Receivables		Credit exposure% Investment-
grade
% Drawn(c)
Exploration & Production ("E&P") and Oil field ServicesExploration & Production ("E&P") and Oil field Services$18,228 $1,048 $19,276 32 %37 %Exploration & Production ("E&P") and Oil field Services$17,631 $5,452 $23,083 39 %26 %
Other Oil & Gas(a)
Other Oil & Gas(a)
19,288 595 19,883 62 21 
Other Oil & Gas(a)
18,941 582 19,523 60 26 
Total Oil & Gas(b)
Total Oil & Gas(b)
37,516 1,643 39,159 47 29 
Total Oil & Gas(b)
$36,572 $6,034 $42,606 49 %26 %
(a)Other Oil & Gas includes Integrated Oil & Gas companies, Midstream/Oil Pipeline companies and refineries.
(b)Secured lending was $17.2 billion and $13.2 billion at June 30, 2021 and December 31, 2020, respectively,Oil & Gas exposure is approximately 46% secured, over half of which is reserve-based lending to the Exploration & Production sub-sector; unsecured exposure is largelyapproximately 60% investment-grade.
(c)Represents drawn exposure as a percent of credit exposure.

6959

Loans
In its wholesale businesses, the Firm provides loans to a variety of clients, ranging from large corporate and institutional clients to high-net-worth individuals. Refer to Note 11 for a further discussion on loans, including information about delinquencies, loan modifications and other credit quality indicators.
The following table presents the change in the nonaccrual loan portfolio for the sixthree months ended June 30, March 31, 2022 and 2021. Since March 31, 2021, and 2020. Since June 30, 2020, nonaccrual loan exposure decreased $658$968 million, driven bylargely in Oil & Gas and Consumer & Retail, with net portfolio activity and selectclient-specific upgrades across multiple industries including Oil & Gas, partiallybeing largely offset by selectclient-specific downgrades in Real Estate.including Russia and Russia-associated clients.
Wholesale nonaccrual loan activityWholesale nonaccrual loan activityWholesale nonaccrual loan activity
Six months ended June 30,
(in millions)		20212020
Three months ended March 31,
(in millions)		Three months ended March 31,
(in millions)		20222021
Beginning balance(a)
Beginning balance(a)
$4,106 $1,271 
Beginning balance(a)
$2,445 $4,106 
Additions(a)
Additions(a)
1,654 3,909 
Additions(a)
866 847 
Reductions:Reductions:Reductions:
Paydowns and otherPaydowns and other1,367 402 Paydowns and other357 819 
Gross charge-offsGross charge-offs129 484 Gross charge-offs17 88 
Returned to performing statusReturned to performing status605 184 Returned to performing status186 209 
SalesSales245 38 Sales3 121 
Total reductionsTotal reductions2,346 1,108 Total reductions563 1,237 
Net changesNet changes(692)2,801 Net changes303 (390)
Ending balanceEnding balance$3,414 $4,072 Ending balance$2,748 $3,716 
(a)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation.
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, 2021March 31, 2022 and 2020.2021. The amounts in the table below do not include gains or losses from sales of nonaccrual loans recognized in noninterest revenue.
Wholesale net charge-offs/(recoveries)Wholesale net charge-offs/(recoveries)Wholesale net charge-offs/(recoveries)
(in millions, except ratios)(in millions, except ratios)Three months ended June 30,Six months ended June 30,(in millions, except ratios)Three months ended March 31,
202120202021202020222021
Loans – reported
LoansLoans
Average loans retainedAverage loans retained$519,902 $540,248 $517,892 $516,032 Average loans retained$559,395 $515,858 
Gross charge-offsGross charge-offs47 310 135 491 Gross charge-offs52 88 
Gross recoveries collectedGross recoveries collected(37)(11)(72)(30)Gross recoveries collected(22)(35)
Net charge-offs/(recoveries)Net charge-offs/(recoveries)10 299 63 461 Net charge-offs/(recoveries)30 53 
Net charge-off/(recovery) rateNet charge-off/(recovery) rate0.01 %0.22 %0.02 %0.18 %Net charge-off/(recovery) rate0.02 %0.04 %
7060

Lending-related commitments
The Firm uses lending-related financial instruments, such as commitments (including revolving credit facilities) and guarantees, to address the financing needs of its clients. The contractual amounts of these financial instruments represent the maximum possible credit risk should the clients draw down on these commitments or when the Firm fulfills its obligations under these guarantees, and the clients subsequently fail to perform according to the terms of these contracts. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being drawn upon or a default occurring. As a result, the Firm does not believe that the total contractual amount of these wholesale lending-related commitments is representative of the Firm’s expected future credit exposure or funding requirements. Refer to Note 22 for further information on wholesale lending-related commitments.
Receivables from customers
Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM that are collateralized by assets maintained in the clients’ brokerage accounts (e.g., cash on deposit, and liquid and readily marketable debt or equity securities). Because of this collateralization, no allowance for credit losses is generally held against these receivables. To manage its credit risk the Firm establishes margin requirements and monitors the required margin levels on an ongoing basis, and requires clients to deposit additional cash or other collateral, or to reduce positions, when appropriate. These receivables are reported within accrued interest and accounts receivable on the Firm’s Consolidated balance sheets.
Derivative contracts
Derivatives enable clients and counterparties to manage risksrisk including credit risk and risks arising from fluctuations in interest rates, foreign exchange and equities and commodities.commodities prices. The Firm makes markets in derivatives in order to meet these needs and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. The Firm also uses derivative instruments to manage its own credit risk and other market risk exposure. The nature of the counterparty and the settlement mechanism of the derivative affect the credit risk to which the Firm is exposed. For OTC derivatives the Firm is exposed to the credit risk of the derivative counterparty. For exchange-traded derivatives (“ETD”), such as futures and options, and cleared over-the-counter (“OTC-cleared”) derivatives, the Firm can also be exposed to the credit risk of the relevant CCP.central counterparty clearing house ("CCP"). Where possible, the Firm seeks to mitigate its credit risk exposures arising from derivative contracts through the use of legally enforceable master netting arrangements and collateral agreements.
The percentage of the Firm’s over-the-counter derivative transactions subject to collateral agreements — excluding foreign exchange spot trades, which are not typically covered by collateral agreements due to their short maturity and centrally cleared trades that are settled daily — was approximately 88% at both June 30, 2021,March 31, 2022 and December 31, 2020.2021. Refer to Note 4 for additional information on the Firm’s use of collateral agreements. Refer to Note 4 for a further discussion of derivative contracts, counterparties and settlement types.
The fair value of derivative receivables reported on the Consolidated balance sheets were $70.7$73.6 billion and $79.6$57.1 billion at June 30, 2021,March 31, 2022, and December 31, 2020, respectively, with decreases in CIB resulting from2021, respectively. The increase was largely commodities, predominantly oil and gas, as a result of market movements. Derivative receivables represent the fair value of the derivative contracts after giving effect to legally enforceable master netting agreements and the related cash collateral held by the Firm.
In addition, the Firm held liquid securities and other cash collateral that the Firm believes is legally enforceable and may be used as security when the fair value of the client’s exposure is in the Firm’s favor. For the purpose of this disclosure,these purposes, the definition of liquid securities is consistent with the definition of high quality liquid assets as defined in the LCR rule.
In management’s view, the appropriate measure of current credit risk should also take into consideration other collateral, which generally represents securities that do not qualify as high quality liquid assets under the LCR rule, but that the Firm believes is legally enforceable. rule.
The benefits of these additional collateral amounts for each counterparty are subject to a legally enforceable master netting agreement and limited to the net amount of the derivative receivables for theeach counterparty.
The Firm also holds additional collateral (primarily cash, G7 government securities, other liquid government agency and guaranteed securities, and corporate debt and equity securities) delivered by clients at the initiation of transactions, as well as collateral related to contracts that have a non-daily call frequency and collateral that the Firm has agreed to return but has not yet settled as of the reporting date. Although this collateral does not reduce the balances and is not included in the tables below, it is available as security against potential exposure that could arise should the fair value of the client’s derivative contracts move in the Firm’s favor. Refer to Note 4 for additional information on the Firm’s use of collateral agreements.

7161

The following tables summarize the net derivative receivables and the internal ratings profile for the periods presented.
Derivative receivablesDerivative receivablesDerivative receivables
(in millions)(in millions)June 30,
2021		December 31,
2020		(in millions)March 31,
2022		December 31,
2021
Total, net of cash collateralTotal, net of cash collateral$70,711 $79,630 Total, net of cash collateral$73,636 $57,081 
Liquid securities and other cash collateral held against derivative receivablesLiquid securities and other cash collateral held against derivative receivables(11,324)(14,806)Liquid securities and other cash collateral held against derivative receivables(15,166)(10,102)
Total, net of liquid securities and other cash collateralTotal, net of liquid securities and other cash collateral$59,387 $64,824 Total, net of liquid securities and other cash collateral$58,470 $46,979 
Other collateral held against derivative receivablesOther collateral held against derivative receivables(5,943)(6,022)Other collateral held against derivative receivables(1,616)(1,544)
Total, net of collateralTotal, net of collateral$53,444 $58,802 Total, net of collateral$56,854 $45,435 
Ratings profile of derivative receivablesRatings profile of derivative receivablesRatings profile of derivative receivables


June 30, 2021December 31, 2020
March 31, 2022December 31, 2021

(in millions, except ratios)

(in millions, except ratios)
Exposure net of collateral% of exposure net of collateralExposure net of collateral% of exposure net of collateral

(in millions, except ratios)
Exposure net of collateral% of exposure net of collateralExposure net of collateral% of exposure net of collateral
Investment-gradeInvestment-grade$31,326 59 %$37,013 63 %Investment-grade$37,272 66 %$30,278 67 %
Noninvestment-gradeNoninvestment-grade22,118 41 21,789 37 Noninvestment-grade19,582 34 15,157 (a)33 
TotalTotal$53,444 100 %$58,802 100 %Total$56,854 100 %$45,435 100 %
Credit portfolio management activities
The Firm uses credit derivatives for two primary purposes: first, in its capacity as a market-maker, and second, as an end-user, to manage the Firm’s own credit risk associated with traditional lending activities (loans and lending-related commitments) and derivatives counterparty exposure in the Firm’s wholesale businesses. In addition, the Firm obtains credit protection against certain loans in the retained wholesale portfolio through the issuance of credit-related notes. Information on credit portfolio management activities is provided in the table below.
Credit derivatives and credit-related notes used in credit portfolio management activitiesCredit derivatives and credit-related notes used in credit portfolio management activitiesCredit derivatives and credit-related notes used in credit portfolio management activities
Notional amount of protection
purchased and sold(a)
Notional amount of protection
purchased and sold(a)
(in millions)(in millions)June 30,
2021		December 31,
2020		(in millions)March 31,
2022		December 31,
2021
Credit derivatives and credit-related notes used to manage:Credit derivatives and credit-related notes used to manage:Credit derivatives and credit-related notes used to manage:
Loans and lending-related commitmentsLoans and lending-related commitments$3,104 $4,856 Loans and lending-related commitments$3,740 $4,138 
Derivative receivablesDerivative receivables18,712 18,362 Derivative receivables14,215 16,052 
Credit derivatives and credit-related notes used in credit portfolio management activitiesCredit derivatives and credit-related notes used in credit portfolio management activities$21,816 $23,218 Credit derivatives and credit-related notes used in credit portfolio management activities$17,955 $20,190 
(a)Amounts are presented net, considering the Firm’s net protection purchased or sold with respect to each underlying reference entity or index. Prior-period amounts have been revised to conform with the current presentation.
Refer to Credit derivatives in Note 4 of this Form 10-Q and Note 5 of JPMorgan Chase’s 20202021 Form 10-K for further information on credit derivatives and derivatives used in credit portfolio management activities.
7262

ALLOWANCE FOR CREDIT LOSSES
The Firm’s allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses comprises:
•the allowance for loan losses, which covers the Firm’s retained loan portfolios (scored and risk-rated) and is presented separately on the Consolidated balance sheets,
•the allowance for lending-related commitments, which is presented on the Consolidated balance sheets in accounts payable and other liabilities, and
•the allowance for credit losses on investment securities, which covers the Firm’s HTM and AFS securities and is reflected within Investment Securitiesin investment securities on the Consolidated balance sheets.
Discussion of changes in the allowance
The allowance for credit losses as of June 30, 2021 decreased when compared toMarch 31, 2022 was $19.6 billion, an increase from $18.7 billion at December 31, 2020,2021, consisting of:
•a $7.1 billion reduction in consumer, predominantly in the credit card portfolio, reflecting improvements in the Firm's economic outlook; and in the residential real estate portfolio, primarily due to continued improvements in HPI expectations, and
•a $1.1 billion net reduction $776 million in wholesale, across the LOBs, reflecting improvementsand $127 million in consumer, driven by the residential real estate portfolio.
The change in the Firm's economic outlook.
allowance largely reflects an increased weight placed on the adverse scenarios, from the more balanced weighting placed on the adverse and upside scenarios at December 31, 2021, due to the potential effects associated with higher inflation, changes in monetary policy, as well as geopolitical risks, including the war in Ukraine. The COVID-19 pandemic has stressed many macroeconomic variables (“MEVs”) usedincrease in the allowance also included client-specific Russia and Russia-associated downgrades in CIB and AWM.
The Firm's allowance estimate which has created challenges in the usefor credit losses is estimated using a weighted average of modeled credit loss estimates, increased the reliance on management judgment, and resulted in adjustments to appropriately address the economic circumstances. These adjustments continued through the second quarter of 2021, although to a lesser extent than experienced during 2020.
The U.S. economy has continued to improve with the benefits of vaccination and as more businesses have reopened, thereby reducing certain pandemic-relatedfive internally developed macroeconomic uncertainties. However, uncertainties remain, including the pace of vaccination progress, the impact of additional waves and new virus strains, the health of underlying labor markets, and the potential for changes in consumer behavior that could have longer term impacts on certain sectors. As a result of these uncertainties, the Firm retained meaningful weighting on its adverse scenarios, albeit to a lesser extent than the first quarter of 2021 and fourth quarter of 2020.scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions outlinedprovided in the table below, resulting in weighted average U.S. unemployment rates rising above seven percent in 2021 and falling just below six percent throughout4% through the second quarter of 2022 with2023 and year over year growth in U.S. gross
domestic product ("GDP") returning to pre-pandemic levelsreal GDP of 2.5% in 4Q21.the second quarter of 2023.
The Firm’s central case assumptions reflected U.S. unemployment rates and U.S. real GDP as follows:follows:
Assumptions at June 30, 2021Assumptions at March 31, 2022
4Q212Q224Q222Q224Q222Q23
U.S. unemployment rate(a)
U.S. unemployment rate(a)
4.7 %4.0 %3.8 %
U.S. unemployment rate(a)
3.6 %3.3 %3.3 %
Cumulative change in U.S. real GDP from 12/31/20194.3 %6.0 %7.3 %
YoY growth in U.S. real GDP(b)
YoY growth in U.S. real GDP(b)
3.7 %2.9 %2.6 %
Assumptions at December 31, 2020Assumptions at December 31, 2021
2Q214Q212Q222Q224Q222Q23
U.S. unemployment rate(a)
U.S. unemployment rate(a)
6.8 %5.7 %5.1 %
U.S. unemployment rate(a)
4.2 %4.0 %3.9 %
Cumulative change in U.S. real GDP from 12/31/2019(1.9)%0.6 %2.0 %
YoY growth in U.S. real GDP(b)
YoY growth in U.S. real GDP(b)
3.1 %2.8 %2.1 %
(a)Reflects quarterly average of forecasted U.S. unemployment rate.
(b)As of March 31, 2022, the year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percent change in U.S. real GDP levels from the prior year.
Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.
Refer to Note 13 and Note 10 of JPMorgan Chase's 20202021 Form 10-K for a description of the policies, methodologies and judgments used to determine the Firm’s allowances for credit losses on loans, lending-related commitments, and investment securities.
Refer to Critical Accounting Estimates Used by the Firm on pages 84-8675-77 for further information on the allowance for credit losses and related management judgments.
Refer to Consumer Credit Portfolio on pages 58-62,49-53, Wholesale Credit Portfolio on pages 63-7254-62 and Note 11 for additional information on the consumer and wholesale credit portfolios.


7363

Allowance for credit losses and related informationAllowance for credit losses and related informationAllowance for credit losses and related information
2021202020222021
Six months ended June 30,Consumer, excluding
credit card		Credit cardWholesaleTotalConsumer, excluding
credit card		Credit cardWholesaleTotal
Three months ended March 31,Three months ended March 31,Consumer, excluding
credit card		Credit cardWholesaleTotalConsumer, excluding
credit card		Credit cardWholesaleTotal
(in millions, except ratios)(in millions, except ratios)Consumer, excluding
credit card		Credit cardWholesaleTotalConsumer, excluding
credit card		Credit cardWholesaleTotal(in millions, except ratios)
Allowance for loan lossesAllowance for loan lossesAllowance for loan losses
Beginning balance at January 1,Beginning balance at January 1,$3,636 $17,800 $6,892 $28,328 $2,538 $5,683 $4,902 $13,123 Beginning balance at January 1,$1,765 $10,250 $4,371 $16,386 $3,636 $17,800 $6,892 $28,328 
Cumulative effect of a change in accounting principleNA297 5,517 (1,642)4,172 
Gross charge-offsGross charge-offs308 2,213 135 2,656 425 2,863 491 3,779 Gross charge-offs204 720 52 976 166 1,214 88 1,468 
Gross recoveries collectedGross recoveries collected(318)(475)(72)(865)(348)(372)(30)(750)Gross recoveries collected(158)(214)(22)(394)(145)(231)(35)(411)
Net charge-offs/(recoveries)Net charge-offs/(recoveries)(10)1,738 63 1,791 77 2,491 461 3,029 Net charge-offs/(recoveries)46 506 30 582 21 983 53 1,057 
Provision for loan lossesProvision for loan losses(1,746)(3,562)(1,730)(7,038)2,115 9,091 6,118 (d)17,324 Provision for loan losses175 506 687 1,368 (932)(2,517)(830)(4,279)
OtherOther(2)— 3 1 (1)— 2 1 Other— 20 20 (1)— 10 9 
Ending balance at June 30,$1,898 $12,500 $5,102 $19,500 $4,872 $17,800 $8,919 $31,591 
Ending balance at March 31,Ending balance at March 31,$1,894 $10,250 $5,048 $17,192 $2,682 $14,300 $6,019 $23,001 
Allowance for lending-related commitmentsAllowance for lending-related commitmentsAllowance for lending-related commitments
Beginning balance at January 1,Beginning balance at January 1,$187 $— $2,222 $2,409 $12 $— $1,179 $1,191 Beginning balance at January 1,$113 $— $2,148 $2,261 $187 $— $2,222 $2,409 
Cumulative effect of a change in accounting principleNA133 — (35)98 
Provision for lending-related commitmentsProvision for lending-related commitments(46)— 634 588 95 — 1,326 (d)1,421 Provision for lending-related commitments(2)— 98 96 (52)— 159 107 
OtherOther1 — — 1 1 — (1)— Other— — 1 1 — — — — 
Ending balance at June 30,$142 $— $2,856 $2,998 $241 $— $2,469 $2,710 
Ending balance at March 31,Ending balance at March 31,$111 $— $2,247 $2,358 $135 $— $2,381 $2,516 
Impairment methodologyImpairment methodologyImpairment methodology
Asset-specific(a)
Asset-specific(a)
$(557)$443 $488 $374 $263 $642 $757 $1,662 
Asset-specific(a)
$(644)$262 $485 $103 $(348)$522 $529 $703 
Portfolio-basedPortfolio-based2,455 12,057 4,614 19,126 4,609 17,158 8,162 (d)29,929 Portfolio-based2,538 9,988 4,563 17,089 3,030 13,778 5,490 22,298 
Total allowance for loan lossesTotal allowance for loan losses$1,898 $12,500 $5,102 $19,500 $4,872 $17,800 $8,919 $31,591 Total allowance for loan losses$1,894 $10,250 $5,048 $17,192 $2,682 $14,300 $6,019 $23,001 
Impairment methodologyImpairment methodologyImpairment methodology
Asset-specificAsset-specific$— $— $150 $150 $— $— $115 $115 Asset-specific$— $— $139 $139 $— $— $144 $144 
Portfolio-basedPortfolio-based142 — 2,706 2,848 241 — 2,354 (d)2,595 Portfolio-based111 — 2,108 2,219 135 — 2,237 2,372 
Total allowance for lending-related commitmentsTotal allowance for lending-related commitments$142 $— $2,856 $2,998 $241 $— $2,469 $2,710 Total allowance for lending-related commitments$111 $— $2,247 $2,358 $135 $— $2,381 $2,516 
Total allowance for credit losses(b)
$2,040 $12,500 $7,958 $22,498 $5,113 $17,800 $11,388 $34,301 
Total allowance for investment securitiesTotal allowance for investment securitiesNA$41 NA$94 
Total allowance for credit lossesTotal allowance for credit losses$2,005 $10,250 $7,295 $19,591 $2,817 $14,300 $8,400 $25,611 
Memo:Memo:Memo:
Retained loans, end of periodRetained loans, end of period$297,731 $141,079 $524,855 $963,665 $307,005 $141,656 $516,787 $965,448 Retained loans, end of period$296,161 $152,283 $569,953 $1,018,397 $302,392 $131,772 $514,478 $948,642 
Retained loans, averageRetained loans, average300,430 134,796 517,892 953,118 299,169 152,518 516,032 967,719 Retained loans, average295,460 149,398 559,395 1,004,253 302,055 134,155 515,858 952,068 
Credit ratiosCredit ratiosCredit ratios
Allowance for loan losses to retained loansAllowance for loan losses to retained loans0.64 %8.86 %0.97 %2.02 %1.59 %12.57 %1.73 %(d)3.27 %Allowance for loan losses to retained loans0.64 %6.73 %0.89 %1.69 %0.89 %10.85 %1.17 %2.42 %
Allowance for loan losses to retained nonaccrual loans(c)
37 NM189 247 115 NM261 (d)412 
Allowance for loan losses to retained nonaccrual loans(b)
Allowance for loan losses to retained nonaccrual loans(b)
42 NM221 254 50 NM200 274 
Allowance for loan losses to retained nonaccrual loans excluding credit cardAllowance for loan losses to retained nonaccrual loans excluding credit card37 NM189 89 115 NM261 (d)180 Allowance for loan losses to retained nonaccrual loans excluding credit card42 NM221 102 50 NM200 104 
Net charge-off/(recovery) ratesNet charge-off/(recovery) rates(0.01)2.60 0.02 0.38 0.05 3.28 0.18 0.63 Net charge-off/(recovery) rates0.06 1.37 0.02 0.24 0.03 2.97 0.04 0.45 
(a)Includes collateral dependent loans, including those considered TDRs and those for which foreclosure is deemed probable, modified PCD loans, and non-collateral dependent loans that have been modified or are reasonably expected to be modified in a TDR. Also includes risk-rated loans that have been placed on nonaccrual status for the wholesale portfolio segment. The asset-specific allowance for credit card allowance for loan lossesloans modified, or reasonably expected to be modified, in a TDR is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
(b)Excludes the allowance for credit losses on investment securities of $87 million and $23 million as of June 30, 2021 and 2020, respectively.
(c)The Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance.
(d)
Prior-period amounts have been revised



















64

Allocation of allowance for loan losses
The table below presents a breakdown of the allowance for loan losses by loan class. Refer to conform with the current presentation.Note 11 for further information on loan classes.
March 31, 2022December 31, 2021

(in millions, except ratios)		Allowance for loan lossesPercent of retained loans to total retained loansAllowance for loan lossesPercent of retained loans to total retained loans
Residential real estate$944 22 %$817 22 %
Auto and other950 7 948 7 
Consumer, excluding credit card1,894 29 1,765 29 
Credit card10,250 15 10,250 15 
Total consumer12,144 44 12,015 45 
Secured by real estate1,494 12 1,495 12 
Commercial and industrial2,369 15 1,881 14 
Other1,185 29 995 29 
Total wholesale5,048 56 4,371 55 
Total$17,192 100 %$16,386 100 %







7465

INVESTMENT PORTFOLIO RISK MANAGEMENT
Investment portfolio risk is the risk associated with the loss of principal or a reduction in expected returns on investments arising from the investment securities portfolio or from principal investments. The investment securities portfolio is predominantly held by Treasury and CIO in connection with the Firm’s balance sheet orand asset-liability management objectives. Principal investments are predominantly privately-held non-traded financial instruments and are managed in the LOBs and Corporate. Investments are typically intended to be held over extended periods and, accordingly, the Firm has no expectation for short-term realized gains with respect to these investments.
Investment securities risk
Investment securities risk includes the exposure associated with a default in the payment of principal and interest. This risk is mitigated given that the investment securities portfolio held by Treasury and CIO is predominantly invested inconsists of high-quality securities. At June 30, 2021,March 31, 2022, the Treasury and CIO investment securities portfolio, net of allowance for credit losses, was $571.6$677.5 billion, and the average credit rating of the securities comprising the portfolio was AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings). Refer to Corporate segment results on pages 42-4332-33 and Note 9 for further information on the investment securities portfolio and internal risk ratings. Refer to Market Risk Management on pages 76-8067-71 for further information on the market risk inherent in the portfolio. Refer to Liquidity Risk Management on pages 51-5541-45 for further information on related liquidity risk.
Principal investment risk
Principal investments are typically privately held non-tradedprivately-held financial instruments representing ownership interests or other forms of junior capital and span multiple asset classes. These investments are made by dedicated investing businesses or as part of a broader business strategy.capital. In general, principal investments include tax-oriented investments and investments made to enhance or accelerate the Firm’s business strategies.strategies and exclude those that are consolidated on the Firm's balance sheets. These investments are made by dedicated investing businesses or as part of a broader business strategy. The Firm’s principal investments are managed by the LOBs and Corporate and are reflected within their respective financial results. The Firm’s investments will continue to evolve in line with its strategies, including the Firm’s commitment to support underserved communities and minority-owned businesses. The Firm’s principal investments are managed by the LOBs and Corporate and are reflected within their respective financial results. The aggregate carrying values of the principal investment portfolios have not been significantly affected as a result of the COVID-19 pandemic.
The table below presents the aggregate carrying values of the principal investment portfolios as June 30, 2021March 31, 2022 and December 31, 2020.2021.
(in billions)(in billions)June 30, 2021December 31, 2020(in billions)March 31, 2022December 31, 2021
Tax-oriented investments, primarily in alternative energy and affordable housing(a)
Tax-oriented investments, primarily in alternative energy and affordable housing(a)
$20.4 $20.0 
Tax-oriented investments, primarily in alternative energy and affordable housing(a)
$23.2 $23.2 
Private equity, various debt and equity instruments, and real assetsPrivate equity, various debt and equity instruments, and real assets6.4 6.2 Private equity, various debt and equity instruments, and real assets9.6 (a)7.3 
Total carrying valueTotal carrying value$26.8 $26.2 Total carrying value$32.8 $30.5 
(a)Prior-period amount has been revised to conform withIncludes the current presentation. Refer to Note 1 for further information.Firm's 40% ownership stake in C6 Bank.
Refer to page 134132 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of the Firm’s Investment Portfolio Risk Management governance and oversight.
7566

MARKET RISK MANAGEMENT
Market risk is the risk associated with the effect of changes in market factors such as interest and foreign exchange rates, equity and commodity prices, credit spreads or implied volatilities, on the value of assets and liabilities held for both the short and long term. Refer to Market Risk Management on pages 135–142133-140 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of the Firm’s Market Risk Management organization, market risk measurement, risk monitoring and control, and predominant business activities that give rise to market risk.
Market Risk Management continues to actively monitor the impact of the COVID-19 pandemic on market risk exposures by leveraging existing risk measures and controls.
Models used to measure market risk are inherently imprecise and are limited in their ability to measure certain risks or to predict losses. This imprecision may be heightened when sudden or severe shifts in market conditions occur. For additional discussion on model uncertainty refer to Estimations and Model Risk Management on page 83.149 of JPMorgan Chase’s 2021 Form 10-K.
Market Risk Management periodically reviews the Firm’s existing market risk measures to identify opportunities for enhancement, and to the extent appropriate, will calibrate those measures accordingly over time.

Value-at-risk
JPMorgan Chase utilizes value-at-risk (“VaR”), a statistical risk measure, to estimate the potential loss from adverse market moves in the current market environment. The Firm has a single VaR framework used as a basis for calculating Risk Management VaR and Regulatory VaR.
The Firm’s Risk Management VaR is calculated assuming a one-day holding period and an expected tail-loss methodology which approximates a 95% confidence level. For risk management purposes, the Firm believes this methodology provides a daily measure of risk that is closely aligned to risk management decisions made by the LOBs and Corporate and, along with other market risk measures, provides the appropriate information needed to respond to risk events. The Firm calculates separately a daily aggregated VaR in accordance with regulatory rules (“Regulatory VaR”), which is used to derive the Firm’s regulatory VaR-based capital requirements under Basel III.
The Firm’s VaR model calculations are periodically evaluated and enhanced in response to changes in the composition of the Firm’s portfolios, changes in market conditions, improvements in the Firm’s modeling techniques and measurements, and other factors. Such changes may affect historical comparisons of VaR results. Refer to Estimations and Model Risk Management on page 151149 of JPMorgan Chase’s 20202021 Form 10-K for information regarding model reviews and approvals.
Refer to page 137135 of JPMorgan Chase’s 20202021 Form 10-K for further information regarding VaR, including the inherent limitations, and the key differences between Risk Management VaR and Regulatory VaR. Refer to JPMorgan Chase’s Basel III Pillar 3 Regulatory Capital Disclosures reports, which are available on the Firm’s website, for additional information on Regulatory VaR and the other components of market risk regulatory capital for the Firm (e.g., VaR-based measure, stressed VaR-based measure and the respective backtesting). Refer to Other risk measures on pages 140-142138-140 of JPMorgan Chase’s 20202021 Form 10-K for further information regarding nonstatistical market risk measures used by the Firm.

7667

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 VaRTotal VaRTotal VaR
Three months endedThree months ended
June 30, 2021March 31, 2021June 30, 2020March 31, 2022December 31, 2021March 31, 2021
(in millions)(in millions) Avg.MinMax Avg.MinMax Avg.MinMax(in millions) Avg.MinMax Avg.MinMax Avg.MinMax
CIB trading VaR by risk typeCIB trading VaR by risk typeCIB trading VaR by risk type
Fixed incomeFixed income$39 $33 $44 $125 $34 $153 $129 $109 $155 Fixed income$47 $33 $64 $39 $32 $53 $125 $34 $153 
Foreign exchangeForeign exchange6 4 9 11 5 27 9 7 13 Foreign exchange4 3 7 4 2 6 11 5 27 
EquitiesEquities18 11 23 22 19 38 27 22 35 Equities12 9 18 12 9 20 22 19 38 
Commodities and otherCommodities and other22 12 35 33 22 43 32 21 44 Commodities and other15 10 23 12 10 13 33 22 43 
Diversification benefit to CIB trading VaRDiversification benefit to CIB trading VaR(44)(a) NM(b) NM(b)(90)(a)NM(b)NM(b)(69)(a)NM(b)NM(b)Diversification benefit to CIB trading VaR(33)(a) NM(d) NM(d)(31)(a)NM(d)NM(d)(90)(a)NM(d)NM(d)
CIB trading VaRCIB trading VaR41 34 

51 

101 40 134 128 104 158 CIB trading VaR45 34 

59 

36 30 52 101 40 134 
Credit portfolio VaRCredit portfolio VaR6 4 9 8 5 12 22 18 28 Credit portfolio VaR29 (b)(c)4 (b)235 (b)(c)5 4 5 8 5 12 
Diversification benefit to CIB VaRDiversification benefit to CIB VaR(6)(a) NM(b) NM(b)(10)(a)NM(b)NM(b)(23)(a)NM(b)NM(b)Diversification benefit to CIB VaR(10)(a) NM(d) NM(d)(4)(a)NM(d)NM(d)(10)(a)NM(d)NM(d)
CIB VaRCIB VaR41 34 

52 

99 39 133 127 101 157 CIB VaR64 35 

240 

37 30 54 99 39 133 
CCB VaRCCB VaR5 4 7 6 4 11 5 2 12 CCB VaR4 2 5 5 3 7 6 4 11 
Corporate and other LOB VaRCorporate and other LOB VaR20 

18 

22 

45 (c)20 94 (c)15 11 18 Corporate and other LOB VaR13 10 

16 15 14 16 45 (e)20 94 (e)
Diversification benefit to other VaRDiversification benefit to other VaR(5)(a) NM(b) NM(b)(6)(a)NM(b)NM(b)(4)(a)NM(b)NM(b)Diversification benefit to other VaR(4)(a) NM(d) NM(d)(4)(a)NM(d)NM(d)(6)(a)NM(d)NM(d)
Other VaROther VaR20 19 

22 

45 21 94 16 13 18 Other VaR13 10 

17 

16 14 18 45 21 94 
Diversification benefit to CIB and other VaRDiversification benefit to CIB and other VaR(18)(a) NM(b) NM(b)(38)(a)NM(b)NM(b)(13)(a)NM(b)NM(b)Diversification benefit to CIB and other VaR(14)(a) NM(d) NM(d)(16)(a)NM(d)NM(d)(38)(a)NM(d)NM(d)
Total VaRTotal VaR$43 $35 

$52 

$106 $40 $153 $130 $106 $163 Total VaR$63 $34 

$242 

$37 $30 $54 $106 $40 $153 
(a)Diversification benefit represents the difference between the portfolio VaR and the sum of its individual components. This reflects the non-additive nature of VaR due to imperfect correlation across LOBs, Corporate, and risk types.
(b)In line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also removed to maintain consistency. This exposure is now reflected in other sensitivity-based measures.
(c)During the period ended March 31, 2022, the effects of nickel price increases and the associated volatility in the nickel market resulted in elevated Average and Maximum Credit portfolio VaR.
(d)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.
(c)(e)Average and maximumMaximum Corporate and other LOB VaR for the three months ended March 31, 2021 were driven by a private equity position that became publicly traded at the end of the third quarter of 2020. As of March 31, 2021 the Firm no longer held this position.

Quarter over quarter results
Average total VaR decreasedincreased by $63$26 million for the three months ended June 30, 2021March 31, 2022 when compared with MarchDecember 31, 2021. This decreaseincrease was driven by Credit portfolio VaR, predominantly due to the effects of nickel price increases and the associated volatility which occurred atin the onset of the COVID-19 pandemic rolling out of the one-year historical look back period, largely impacting exposuresnickel market, as well as increased volatility in fixed income and equities.commodities impacting CIB trading VaR.
Year over year results
Average total VaR decreased by $87was $63 million for the three months ended June 30, 2021,March 31, 2022, reflecting the effects of nickel price increases and the associated volatility in the nickel market impacting Credit portfolio VaR, as well as increased volatility in fixed income and commodities impacting CIB trading VaR. Average total VaR decreased by $43 million for the three months ended March 31, 2022, compared with the same period in the prior year. This decrease was driven by volatility which occurred at the onset of the COVID-19 pandemic rolling out of the one-year historical look backlook-back period in the first half of 2021, predominantly impacting exposureexposures in fixed income.

Effective July 1, 2020, the Firm refined the scope of VaR to exclude certain asset-backed fair value option elected loans,income and included them in other sensitivity-based measures to more effectively measure the risk from these loans. In the absence of this refinement, the average Total VaR and each of the components would have been different by the amounts reported in the following table:commodities.
(in millions)Amount by which reported average VaR would have been different for the three months ended June 30, 2021
CIB fixed income VaR$2 
CIB trading VaR(1)
CIB VaR— 
Total VaR(1)
77

The following graph presents daily Risk Management VaR for the five trailing quarters. As noted previously, average totalThe movement in VaR decreasedin March 2022 was driven by $87 million for the three months ended June 30, 2021, compared with the same periodchanges in nickel-related counterparty exposure in the prior year. Daily Risk Management VaR has also declined from March 31, 2020, returning to near pre-pandemic levels, as the volatility which occurred in late March of 2020 at the onset of the COVID-19 pandemic has rolled out of the one-year historical look-back period.Firm's Credit portfolio.
Daily Risk Management VaR
jpm-20210630_g2.jpgjpm-20220331_g2.jpg
Second Quarter
2020		Third Quarter
2020		Fourth Quarter
2020		First Quarter
2021		Second Quarter
2021		Third Quarter
2021		Fourth Quarter
2021		First Quarter
2022
68

VaR backtesting
The Firm performs daily VaR model backtesting, which compares the daily Risk Management VaR results with the daily gains and losses that are utilized for VaR backtesting purposes. The gains and losses depicted in the chart below do not reflect the Firm’s reported revenue as they exclude select components of total net revenue, such as those associated with the execution of new transactions (i.e., intraday client-driven trading and intraday risk management activities), fees, commissions, certain valuation adjustments and net interest income. These excluded components of total net revenue may more than offset the backtesting gains and lossesgain or loss on a particular day. The definition of backtesting gains and losses above is consistent with the requirements for backtesting under Basel III capital rules.
A backtesting exception occurs when the daily backtesting loss exceeds the daily Risk Management VaR for the prior day. Under the Firm’s Risk Management VaR methodology, assuming current changes in market values are consistent with the historical changes used in the simulation, the Firm would expect to incur VaR backtesting exceptions on average five times every 100 trading days. The number of VaR backtesting exceptions observed can differ from the statistically expected number of backtesting exceptions if the current level of market volatility is materially different from the level of market volatility during the 12 months of historical data used in the VaR calculation.
For the 12 months ended June 30, 2021,March 31, 2022, the Firm posted backtesting gains on 157141 of the 259261 days, and observed four23 VaR backtesting exceptions. For the three months ended June 30, 2021,March 31, 2022, the Firm posted backtesting gains on 3043 of the 6564 days, and observed fourthree VaR backtesting exceptions.
The following chart presents the distribution of Firmwide daily backtesting gains and losses for the trailing 12 months and three months ended June 30, 2021.March 31, 2022. The daily backtesting losses are displayed as a percentage of the corresponding daily Risk Management VaR. The count of days with backtesting losses are shown in aggregate, in fifty percentage point intervals. A backtesting exception occurs when the daily backtesting loss exceeds the daily Risk Management VaR for the prior day. Backtesting exceptions are displayed within the intervals that are greater than one hundred percent. The results in the chart below differ from the results of backtesting disclosed in the Market Risk section of the Firm’s Basel III Pillar 3 Regulatory Capital Disclosures reports, which are based on Regulatory VaR applied to the Firm’s covered positions.
Distribution of Daily Backtesting Gains and Losses
jpm-20210630_g3.jpgjpm-20220331_g3.jpg



7869

Earnings-at-risk
The effect of interest rate exposure on the Firm’s reported net income is important as interest rate risk represents one of the Firm’s significant market risks. Interest rate risk arises not only from trading activities but also from the Firm’s traditional banking activities, which include extension of loans and credit facilities, taking deposits, and issuing debt as well as fromand the investment securities portfolio. Refer to the table on page 136134 of JPMorgan Chase’s 20202021 Form 10-K for a summary by LOB and Corporate, identifying positions included in earnings-at-risk.
One way the Firm evaluates its structural interest rate risk is through earnings-at-risk. Earnings-at-risk estimates the Firm’s interest rate exposure for a given interest rate scenario. It is presented as a sensitivity to a baseline, which includes net interest income and certain interest rate sensitive fees. The baseline uses market interest rates and in the case of deposits, pricing assumptions. The Firm conducts simulations of changes to this baseline for interest rate-sensitive assets and liabilities denominated in U.S. dollars and other currencies (“non-U.S. dollar” currencies). These simulations primarily include retained loans, deposits, deposits with banks, investment securities, long-term debt and any related interest rate hedges, and funds transfer pricing of other positions in risk management VaR and other sensitivity-based measures as described on page 136134 of JPMorgan Chase’s 20202021 Form 10-K.
Earnings-at-risk scenarios estimate the potential change to a net interest income baseline, over the following 12 months utilizing multiple assumptions. These scenarios include a parallel shift involving changes to both short-term and long-term rates by an equal amount; a steeper yield curve involving holding short-term rates constant and increasing long-term rates; and a flatter yield curve involving increasing short-term rates and holding long-term rates constant.constant or holding short-term rates constant and decreasing long-term rates. These scenarios consider many different factors, including:
•The impact on exposures as a result of instantaneous changes in interest rates from baseline rates.
•Forecasted balance sheet, as well as modeled prepayment and reinvestment behavior, but do not includeexcluding assumptions about actions that could be taken by the Firm or its clients and customers in response to any such instantaneous rate changes. Mortgage prepayment assumptions are based on the interest rates used in the scenarios compared with underlying contractual rates, the time since origination, and other factors which are updated periodically based on historical experience. Deposit forecasts used in the baseline and scenarios include certain assumptions relating to the reversal of Quantitative Easing.
•The pricing sensitivity of deposits, known as deposit betas, represent the amount by which deposit rates paid could change upon a given change in market interest rates. The deposit rates paid in these scenarios may differ from actual deposit rates paid, due to repricing 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. While a relevant measure of the Firm’s interest rate exposure, the earnings at riskearnings-at-risk analysis does not represent a forecast of the Firm’s net interest income (Refer to Outlook on page 87 for additional information).
The Firm’s U.S. dollar sensitivities are presented in the table below.
(in billions)(in billions)June 30, 2021December 31, 2020(in billions)March 31, 2022December 31, 2021
Parallel shift:Parallel shift:Parallel shift:
+100 bps shift in rates+100 bps shift in rates$6.2 $6.9 +100 bps shift in rates$0.9 $5.0 
Steeper yield curve:Steeper yield curve:Steeper yield curve:
+100 bps shift in long-term rates+100 bps shift in long-term rates1.1 2.4 +100 bps shift in long-term rates1.4 1.8 
Flatter yield curve:Flatter yield curve:Flatter yield curve:
+100 bps shift in short-term rates+100 bps shift in short-term rates5.1 4.5 +100 bps shift in short-term rates(0.5)3.2 
-100 bps shift in long-term rates-100 bps shift in long-term rates(1.7)NM(a)
(a)Given the level of market interest rates, this scenario is not considered to be meaningful.
The change in the Firm’s U.S. dollar sensitivities as of June 30, 2021March 31, 2022 compared to December 31, 20202021 reflected updates to the Firm’s baseline for higher long-term rates as well as the impact of changes in the Firm’s balance sheet.
TheAs of March 31, 2022, the Firm’s sensitivity to the parallel and long-term shift in rates is primarily athe result of a greater impact from assets repricing atcompared to the impact of liabilities repricing, while the shift in short-term rates is primarily the result of a faster pace than deposits.
Based upon current and implied market rates asgreater impact from liabilities repricing compared to the impact of June 30, 2021, scenarios reflecting lower rates could result in negative interest rates. The U.S. has never experienced an interest rate environment where the Federal Reserve has a negative interest rate policy. In a negative interest rate environment, the modeling assumptions used for certain assets and liabilities require additional management judgment and therefore, the actual outcomes may differ from these assumptions.repricing.
The Firm’s non-U.S. dollar sensitivities are presented in the table below.
(in billions)(in billions)June 30, 2021December 31, 2020(in billions)March 31, 2022December 31, 2021
Parallel shift:Parallel shift:Parallel shift:
+100 bps shift in rates+100 bps shift in rates$0.8 $0.9 +100 bps shift in rates$0.9 $0.8 
Flatter yield curve:Flatter yield curve:Flatter yield curve:
+100 bps shift in short-term rates+100 bps shift in short-term rates0.8 0.8 +100 bps shift in short-term rates0.9 0.8 
The results of the non-U.S. dollar interest rate scenario involving a steeper yield curve with long-term rates rising by 100 basis points and short-term rates staying at current levels were not material to the Firm’s earnings-at-risk at June 30, 2021March 31, 2022 and December 31, 20202021.
7970

Other sensitivity-based measures
The Firm quantifies the market risk of certain debt and equity and funding activitiescredit and funding-related exposures by assessing the potential impact on net revenue, other comprehensive income (“OCI”) and noninterest expense due to changes in relevant market variables. Refer to the predominant business activities that give rise to market risk on page 136140 of JPMorgan Chase’s 20202021 Form 10-K for additional information on the positions captured in other sensitivity-based measures.
The table below represents the potential impact to net revenue, OCI or noninterest expense for market risk-sensitive instruments that are not included in VaR or earnings-at-risk. Where appropriate, instruments used for hedging purposes are reported net of the positions being hedged. The sensitivities disclosed in the table below may not be representative of the actual gain or loss that would have been realized at June 30, 2021March 31, 2022 and December 31, 2020,2021, as the movement in market parameters across maturities may vary and are not intended to imply management’s expectation of future changes in these sensitivities.
Gain/(loss) (in millions)
Gain/(loss) (in millions)
June 30, 2021December 31, 2020
Gain/(loss) (in millions)
March 31, 2022December 31, 2021
ActivityActivityDescriptionSensitivity measureActivityDescriptionSensitivity measure
Debt and equity(a)
Debt and equity(a)
Debt and equity(a)
Asset Management activitiesAsset Management activities
Consists of seed capital and related hedges; fund co-investments(b); and certain deferred compensation and related hedges(c)
10% decline in market value$(38)$(48)Asset Management activities
Consists of seed capital and related hedges; fund co-investments(c); and certain deferred compensation and related hedges(d)
10% decline in market value$(60)$(69)
Other debt and equityOther debt and equity
Consists of certain asset-backed fair value option elected loans, privately held equity and other investments held at fair value(b)
10% decline in market value(953)(919)Other debt and equity
Consists of certain real estate-related fair value option elected loans, privately held equity and other investments held at fair value(c)
10% decline in market value(1,014)(971)
Funding activities
Credit- and funding-related exposuresCredit- and funding-related exposures
Non-USD LTD cross-currency basisNon-USD LTD cross-currency basis
Represents the basis risk on derivatives used to hedge the foreign exchange risk on the non-USD LTD(d)
1 basis point parallel tightening of cross currency basis(18)(16)Non-USD LTD cross-currency basis
Represents the basis risk on derivatives used to hedge the foreign exchange risk on the non-USD LTD(e)
1 basis point parallel tightening of cross currency basis(16)(16)
Non-USD LTD hedges foreign currency (“FX”) exposureNon-USD LTD hedges foreign currency (“FX”) exposure
Primarily represents the foreign exchange revaluation on the fair value of the derivative hedges(d)
10% depreciation of currency20 13 Non-USD LTD hedges foreign currency (“FX”) exposure
Primarily represents the foreign exchange revaluation on the fair value of the derivative hedges(e)
10% depreciation of currency3 15 
Derivatives – funding spread riskDerivatives – funding spread risk
Impact of changes in the spread related to derivatives FVA(b)
1 basis point parallel increase in spread(3)(4)Derivatives – funding spread risk
Impact of changes in the spread related to derivatives FVA(c)
1 basis point parallel increase in spread(6)(7)
CVA - counterparty credit risk(b)
CVA - counterparty credit risk(b)
Credit risk component of CVA and associated hedges10% credit spread widening(8)N/A
Fair value option elected liabilities – funding spread riskFair value option elected liabilities – funding spread risk
Impact of changes in the spread related to fair value option elected liabilities DVA(d)
1 basis point parallel increase in spread38 33 Fair value option elected liabilities – funding spread risk
Impact of changes in the spread related to fair value option elected liabilities DVA(e)
1 basis point parallel increase in spread44 41 
Fair value option elected liabilities – interest rate sensitivityFair value option elected liabilities – interest rate sensitivity
Interest rate sensitivity on fair value option elected liabilities resulting from a change in the Firm’s own credit spread(d)
1 basis point parallel increase in spread(1)(3)Fair value option elected liabilities – interest rate sensitivity
Interest rate sensitivity on fair value option elected liabilities resulting from a change in the Firm’s own credit spread(e)
1 basis point parallel increase in spread— (3)
Interest rate sensitivity related to risk management of changes in the Firm’s own credit spread on the fair value option elected liabilities noted above(b)
1 basis point parallel increase in spread1 3 
Interest rate sensitivity related to risk management of changes in the Firm’s own credit spread on the fair value option elected liabilities noted above(c)
1 basis point parallel increase in spread— 3 
(a)Excludes equity securities without readily determinable fair values that are measured under the measurement alternative. Refer to Note 2 for additional information.
(b)In line with the Firm's internal model governance, the credit risk component of CVA related to certain counterparties was removed from Credit Portfolio VaR due to the widening of the credit spreads for those counterparties to elevated levels. The related hedges were also removed to maintain consistency. This exposure is now reflected in other sensitivity-based measures.
(c)Impact recognized through net revenue.
(c)(d)Impact recognized through noninterest expense.
(d)(e)Impact recognized through OCI.
8071

COUNTRY RISK MANAGEMENT
The Firm, through its LOBs and Corporate, may be exposed to country risk resulting from financial, economic, political or other significant developments which adversely affect the value of the Firm’s exposures related to a particular country or set of countries. The Country Risk Management group actively monitors the various portfolios which may be impacted by these developments and measures the extent to which the Firm’s exposures are diversified given the Firm’s strategy and risk tolerance relative to a country.
Country Risk Management continues to monitor the impact of the COVID-19 pandemic on individual countries.
Refer to pages 143-144141-142 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion of the Firm’s country risk management.
Sources and measurement
The Firm is exposed to country risk through its lending and deposits, investing, and market-making activities, whether cross-border or locally funded. Country exposure includes activity with both government and private-sector entities in a country.
Under the Firm’s internal country risk management approach, attribution of exposure to an individual country is based on the country where the largest proportion of the assets of thecounterparty, issuer, obligor or guarantor are located or where the largest proportion of its revenue is derived, which may be different than the domicile (i.e. legal residence) or country of incorporation.
Individual country exposures reflect an aggregation of the Firm’s risk to an immediate default, with zero recovery, of the counterparties, issuers, obligors or guarantors attributed to that country. Activities which result in contingent or indirect exposure to a country are not included in the country exposure measure (for example, providing clearing services or secondary exposure to collateral on securities financing receivables).
Assumptions are sometimes required in determining the measurement and allocation of country exposure, particularly in the case of certain non-linear or index products, or where the nature of the counterparty, issuer, obligor or guarantor is not suitable for attribution to an individual country. The use of different measurement approaches or assumptions could affect the amount of reported country exposure.

Under the Firm’s internal country risk measurement framework:
•Lending exposures are measured at the total committed amount (funded and unfunded), net of the allowance for credit losses and eligible cash and marketable securities collateral received
•Deposits are measured as the cash balances placed with central and commercial banks
•Securities financing exposures are measured at their receivable balance, net of eligible collateral received
•Debt and equity securities are measured at the fair value of all positions, including both long and short positions
•Counterparty exposure on derivative receivables is measured at the derivative’s fair value, net of the fair value of the eligible collateral received
•Credit derivatives exposure is measured at the net notional amount of protection purchased or sold for the same underlying reference entity, inclusive of the fair value of the derivative receivable or payable; reflecting the manner in which the Firm manages these exposures
The Firm’s internal country risk reporting differs from the reporting provided under the FFIEC bank regulatory requirements.






















72

Risk Reporting
The following table presents the Firm’s top 20 exposures by country (excluding the U.S.) as of June 30, 2021March 31, 2022 and their comparative exposures as of December 31, 2020.2021. The selection of countries represents the Firm’s largest total exposures by individual country, based on the Firm’s internal country risk management approach, and does not represent the Firm’s view of any existing or potentially adverse credit conditions. Country exposures may fluctuate from period to period due to client activity and market flows.
The increase in exposure to Australia wasGermany and the decrease in exposure to the U.K. were primarily due to increasedchanges in cash placements with the central bankbanks of Australia,those countries driven by clientbalance sheet and liquidity management activities.
As of March 31, 2022, exposure to Russia, based on the Firm's internal country risk measurement framework, was approximately $650 million. This largely reflects cross-border lending activity, following policy decisions innet of the country and growth in client deposits.
















allowance for credit losses, to Russian corporate clients.

Top 20 country exposures (excluding the U.S.)(a)
Top 20 country exposures (excluding the U.S.)(a)
Top 20 country exposures (excluding the U.S.)(a)

(in billions)
(in billions)		June 30, 2021
December 31, 2020(e)

(in billions)		March 31, 2022
December 31, 2021(e)
Lending and deposits(b)
Trading and investing(c)
Other(d)
Total exposureTotal exposure
Lending and deposits(b)
Trading and investing(c)
Other(d)
Total exposureTotal exposure
GermanyGermany$123.1 $3.1 $0.4 $126.6 $127.2 Germany$95.5 $6.6 $0.5 $102.6 $61.7 
United KingdomUnited Kingdom55.8 14.7 1.9 72.4 68.4 United Kingdom59.4 11.1 3.3 73.8 96.4 
JapanJapan35.5 9.3 0.3 45.1 45.6 Japan31.0 11.5 0.3 42.8 45.5 
AustraliaAustralia23.5 4.7 — 28.2 15.9 Australia28.2 10.4 — 38.6 39.1 
SwitzerlandSwitzerland15.5 1.3 5.1 21.9 20.9 
ChinaChina9.8 7.9 2.1 19.8 21.2 China10.6 7.6 1.4 19.6 18.6 
Switzerland12.6 0.5 5.5 18.6 18.7 
FranceFrance12.7 1.3 4.1 18.1 14.0 
CanadaCanada15.8 1.2 0.2 17.2 14.5 Canada12.8 3.2 0.3 16.3 16.9 
France12.2 1.5 2.6 16.3 18.8 
BrazilBrazil4.6 9.7 — 14.3 10.8 Brazil5.3 8.2 — 13.5 12.0 
SingaporeSingapore7.0 4.2 1.6 12.8 12.3 
LuxembourgLuxembourg11.5 1.3 — 12.8 11.5 
IndiaIndia5.9 4.3 1.3 11.5 14.7 
SpainSpain9.7 3.2 — 12.9 5.8 Spain10.0 0.1 — 10.1 10.1 
NetherlandsNetherlands9.3 1.4 1.7 12.4 7.7 Netherlands7.6 0.9 0.9 9.4 6.8 
Luxembourg10.9 1.1 — 12.0 12.4 
Italy4.8 6.4 0.2 11.4 9.7 
India5.3 4.4 1.3 11.0 10.5 
Saudi ArabiaSaudi Arabia6.8 2.5 — 9.3 9.1 
South KoreaSouth Korea4.3 5.9 0.4 10.6 10.1 South Korea4.7 3.0 0.3 8.0 8.7 
Singapore5.3 2.8 1.0 9.1 8.7 
Hong Kong SARHong Kong SAR5.1 1.8 0.4 7.3 6.2 Hong Kong SAR4.7 2.1 0.6 7.4 5.9 
Saudi Arabia5.3 1.7 — 7.0 5.8 
BelgiumBelgium2.4 1.5 0.1 4.0 4.0 Belgium5.8 1.4 — 7.2 6.8 
Sweden4.0 (0.2)— 3.8 4.3 
ChileChile5.0 0.2 — 5.2 1.5 
MexicoMexico4.4 0.1 — 4.5 4.9 
(a)Country exposures presented in the table reflect 90%89% and 87% of total Firmwide non-U.S. exposure, where exposure is attributed to an individual country, at both June 30, 2021March 31, 2022 and December 31, 2020.2021, respectively.
(b)Lending and deposits includes loans and accrued interest receivable, lending relatedlending-related commitments (net of eligible collateral and the allowance for credit losses), deposits with banks (including central banks), acceptances, other monetary assets, and issued letters of credit net of risk participations. Excludes intra-day and operating exposures, such as those from settlement and clearing activities.
(c)Includes market-making inventory, Investmentinvestment securities, and counterparty exposure on derivative and securities financings net of eligible collateral and hedging. Includes exposure from single reference entity (“single-name”), index and other multiple reference entity transactions for which one or more of the underlying reference entities is in a country listed in the above table.
(d)Predominantly includes physical commodity inventory.
(e)The country rankings presented in the table as of December 31, 2020,2021, are based on the country rankings of the corresponding exposures at June 30, 2021,March 31, 2022, not actual rankings of such exposures at December 31, 2020.2021.
8173

OPERATIONAL RISK MANAGEMENT
Operational risk is the risk of an adverse outcome resulting from inadequate or failed internal processes or systems;systems, human factors;factors, or external events impacting the Firm’s processes or systems;systems. Operational Risk includes compliance, conduct, legal, and estimations and model risk. Operational risk is inherent in the Firm’s activities and can manifest itself in various ways, including fraudulent acts, business interruptions, cyber attacks,disruptions (including those caused by extraordinary events beyond the Firm's control), cyberattacks, inappropriate employee behavior, failure to comply with applicable laws, rules and regulations or failure of vendors or other third party providers to perform in accordance with their agreements. Operational Risk Management attempts to manage operational risk at appropriate levels in light of the Firm’s financial position, the characteristics of its businesses, and the markets and regulatory environments in which it operates. Refer to Operational Risk Management on pages 145-147143-149 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of the Firm’s Operational Risk Management.
Subcategories and examples of operational risks
Operational risk can manifest itself in various ways. Operational risk subcategories such as Compliance risk, Conduct risk, Legal risk, and Estimations and Model risk as well as other operational risks, can lead to losses which are captured through the Firm’s operational risk measurement processes. Refer to Compliance Risk Management on page 148, Conduct Risk Management on page 149, Legal Risk Management on page 150 and Estimations and Model Risk Management on page 151 of JPMorgan Chase’s 2020 Form 10-K for more information. Details on other select examples of operational risks are provided below.
In response to the war in Ukraine, numerous sanctions have been imposed on Russia and Russia-associated entities and individuals by various governments around the world, including the authorities in the U.S., the U.K. and the EU. These sanctions are complex and evolving at a rapid pace in response to the war. The Firm faces increased operational risk associated with interpreting and maintaining these complex compliance programs. To manage this increased risk, the Firm has implemented additional controls reasonably designed to mitigate the risk of non-compliance and to prevent dealing with sanctioned persons or in property subject to sanctions, as well as to block or restrict payments as required by the applicable regulations.
Business and technology resiliency risk
Business disruptionsDisruptions can occur due to forces beyond the Firm’s control such as the spread of infectious diseases or pandemics, severe weather, power or telecommunications loss, accidents, failure of a third party to provide expected services, cyberattack, flooding, transit strikes, terrorismcyberattacks and health emergencies. The safety of the Firm’s employees and customers is of the highest priority.terrorism. The Firmwide resiliency programBusiness Resiliency Program is intendeddesigned to enable the Firm to prepare for, adapt to, withstand and recover from business disruptions including occurrence of an extraordinary event beyond its control that may impact critical business functions and supporting assets (i.e., staff, technology, facilities and facilities) in the event of a business interruption.third parties). The program includes governance, awareness training, planning and testing of recovery strategies, as well as strategic and tactical initiatives to identify, assess, and manage business interruption and public safety risks. The strength and proficiency of the Firmwide resiliency program has played an integral role in maintaining the Firm’s business operations during and after various events.
Cybersecurity Risk
DueThe Firm faces increased risk of cyber attacks due to potential retaliation for the ongoing impact of COVID-19, the Firm continues to leverage use of remote access and video conferencing solutions provided by third parties to facilitate remote work. Assanctions imposed as a result of the war in Ukraine. The Firm has deployedimplemented additional precautionary measures and controls reasonably designed to mitigate cybersecurity risks.
Payment Fraud Risk
Theaddress this increased risk, of payment fraud remains at a heightened level across the industry, particularly during the COVID-19 pandemic due to the use of contingent forms of payment authentication methods and the perpetuation of scams involving the pandemic, including an increase in the level of fraud attempts against consumers. The complexities of these incidents and the strategies used by perpetrators continue to evolve. The Firm employs various controls for managing payment fraud risk as well as providing employee and client education and awareness trainings.
82

ESTIMATIONS AND MODEL RISK MANAGEMENT
Estimations and Model risk, a subcategory of operational risk, is the potential for adverse consequences from decisions based on incorrect or misused estimation outputs.
The Firm uses models and other analytical and judgment- based estimations across various businesses and functions. The estimation methods are of varying levels of sophistication and are used for many purposes, such as the valuation of positions and measurement of risk, assessing regulatory capital requirements, conducting stress testing, and making business decisions.
While models are inherently imprecise, the degree of imprecision or uncertaintyenhanced threat monitoring. There can be heightened byno assurance that the market or economic environment. This is particularly true when the current and forecasted environment is significantly different from the historical macroeconomic environments upon which the models were trained, as the Firm has experienced during the COVID-19 pandemic. This uncertainty may necessitate a greater degree of judgment and analytics to inform adjustments to model outputs than in typical periods.
Refer to Critical Accounting Estimates Usedmeasures taken by the Firm on pages 84-86 and Note 2 of this Form 10-Q, and Estimations and Model Risk Management section on page 151 of JPMorgan Chase’s 2020 Form 10-K for a summary of model-based valuations and other valuation techniques.to protect against cybersecurity breaches will provide absolute security against cyber attacks.

8374

CRITICAL ACCOUNTING ESTIMATES USED BY THE FIRM
JPMorgan Chase’s accounting policies and use of estimates are integral to understanding its reported results. The Firm’s most complex accounting estimates require management’s judgment to ascertain the appropriate carrying value of assets and liabilities. The Firm has established policies and control procedures intended to ensure that estimation methods, including any judgments made as part of such methods, are well-controlled, independently reviewed and applied consistently from period to period. The methods used and judgments made reflect, among other factors, the nature of the assets or liabilities and the related business and risk management strategies, which may vary across the Firm’s businesses and portfolios. In addition, the policies and procedures are intended to ensure that the process for changing methodologies occurs in an appropriate manner. The Firm believes its estimates for determining the carrying value of its assets and liabilities are appropriate. The following is a brief description of the Firm’s critical accounting estimates involving significant judgments.
Allowance for credit losses
The Firm’s allowance for credit losses represents management’s estimate of expected credit losses over the remaining expected life of the Firm’s financial assets measured at amortized cost and certain off-balance sheet lending-related commitments. The allowance for credit losses comprises:
•The allowance for loan losses, which covers the Firm’s retained loan portfolios (scored and risk-rated),
•The allowance for lending-related commitments, and
•The allowance for credit losses on investment securities, which covers the Firm’s HTM and AFS securities.
The allowance for credit losses involves significant judgment on a number of matters including development and weighting of macroeconomic forecasts, incorporation of historical loss experience, assessment of risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life. Refer to Note 10 and Note 13 of JPMorgan Chase's 20202021 Form 10-K for further information on these judgments as well as the Firm’s policies and methodologies used to determine the Firm’s allowance for credit losses; and refer to Allowance for credit losses on pages 73-7463-65 and Note 12 of this Form 10-Q for further information.
One of the most significant judgments involved in estimating the Firm’s allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the eight-quarter forecast period within the Firm’s methodology. The eight-quarter forecast incorporates hundreds of MEVs that are relevant for exposures across the Firm, with modeled credit losses being driven primarily by a subset of less than twenty variables. The specific variables that have the greatest effect on the modeled losses of each portfolio vary by portfolio and geography.
•Key MEVs for the consumer portfolio include U.S. unemployment, HPI and U.S. real GDP.
•Key MEVs for the wholesale portfolio include U.S. real GDP, U.S. unemployment, U.S. equity prices, corporate credit spreads, oil prices, commercial real estate prices and HPI.
Changes in the Firm’s assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.
The COVID-19 pandemic resulted in a weak labor market and weak overall economic conditions that affected borrowers across the Firm’s consumer and wholesale lending portfolios. The U.S. economy has continued to improve with the benefits of vaccination and as more businesses have reopened, thereby reducing certain pandemic-related macroeconomic uncertainties. However, uncertainties remain, including the pace of vaccination progress, the impact of additional waves and new virus strains, the health of underlying labor markets, and the potential for changes in consumer behavior that could have longer term impacts on certain sectors. Further, judgment is still required to estimate the speed and trajectory of the economic recovery.
It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses. Changes in the factors and inputs considered may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others.
To consider the impact of a hypothetical alternate macroeconomic forecast, the Firm compared the modeled credit losses determined using its central and relative adverse macroeconomic scenarios, which are two of the five scenarios considered in estimating the allowances for loan losses and lending-related commitments. The central and relative adverse scenarios each included a full suite of MEVs, but differed in the levels, paths and peaks/troughs of those variables over the eight-quarter forecast period.
For example, compared to the Firm’s central scenario describedshown on page 7363 and in Note 12, the Firm’s relative adverse scenario assumes a significantly elevated U.S. unemployment rate, through 2021, averaging approximately 2.4%2.5% higher
over the eight-quarter forecast, with a peak difference of
approximately 4.2%4.5% in the fourth quarter of 2021;2022; lower
U.S. real GDP with a slower recovery, remaining nearly 2.5%
3.1% lower at the end of the eight-quarter forecast, with a
peak difference of approximately 6.9%7.0% in the fourth
quarter of 2022; and lower national HPI with a peak
difference of 20.0% in the fourth quarter of 2021; and
84

lower national HPI with a peak difference of nearly 11.2% and forecasted trough, both in the third quarter of 2022.2023.
This analysis is not intended to estimate expected future changes in the allowance for credit losses, for a number of reasons, including:
•The Firm increased the Firm continues to place meaningful weightingweight placed on itsthe adverse scenarios in estimating itsthe allowance for credit losses as of June 30, 2021,March 31, 2022, and accordingly, the existing allowance already reflects credit losses beyond those estimated under the central scenarioscenario.
•theThe impacts of changes in many MEVs are both interrelated and nonlinear, so the results of this analysis cannot be simply extrapolated for more severe changes in macroeconomic variablesvariables.
75

•the COVID-19 pandemic has stressed many MEVs used in the Firm's allowance estimate, which has created challenges in the useExpectations of modeled credit loss estimations
•significantfuture changes in the expected severityportfolio composition and duration of the economic downturn caused by the COVID-19 pandemic, effects of government support and customer assistance, and speed and trajectory of the subsequent recovery couldborrower behavior can significantly affect the Firm’s estimate of expectedallowance for credit losses irrespective of the estimated sensitivities described below.losses.
To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of June 30, 2021,March 31, 2022, the Firm compared the modeled estimates under its relative adverse scenario to its central scenario. Without considering the additional weight the Firm has placed on its adverse scenarios or any other offsetting or correlated effects in other qualitative components of the Firm’s allowance for credit losses, for these lending exposures, the comparison between these two scenarios reflectsfor the lending exposures below reflect the following differences:
•An increase of approximately $300$600 million for residential real estate loans and lending-related commitments
•An increase of approximately $2.8$2.4 billion for credit card loans
•An increase of approximately $1.7$2.8 billion for wholesale loans and lending-related commitments
This analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall allowance for credit losses as it does not reflect any potential changes in other adjustments to the quantitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these modeled lifetime loss estimates based on then-current circumstances and conditions.
Recognizing that forecasts of macroeconomic conditions are inherently uncertain, particularly in light of the recent economic conditions, the Firm believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its
estimates of expected credit losses were reasonable and appropriate for the period ended June 30, 2021.March 31, 2022.
Fair value
JPMorgan Chase carries a portion of its assets and liabilities at fair value. The majority of such assets and liabilities are measured at fair value on a recurring basis, including, derivatives, structured note products and certain securities financing agreements. Certain assets and liabilities are measured at fair value on a nonrecurring basis, including certain mortgage, home equity and other loans, where the carrying value is based on the fair value of the underlying collateral.
Assets measured at fair value
The following table includes the Firm’s assets measured at fair value and the portion of such assets that are classified within level 3 of the valuationfair value hierarchy. Refer to Note 2 for further information.
June 30, 2021
(in billions, except ratios)
Total assets at fair valueTotal level 3 assets
March,31, 2022
(in billions, except ratios)
March,31, 2022
(in billions, except ratios)
Total assets at fair valueTotal level 3 assets
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements$254.6 $— Federal funds sold and securities purchased under resale agreements$298.3 $— 
Securities borrowedSecurities borrowed70.0 — Securities borrowed87.3 — 
Trading assets:Trading assets:Trading assets:
Trading–debt and equity instrumentsTrading–debt and equity instruments449.8 2.6 Trading–debt and equity instruments437.9 2.6 
Derivative receivables(a)
Derivative receivables(a)
70.7 6.5 
Derivative receivables(a)
73.6 9.4 
Total trading assetsTotal trading assets520.5 9.1 Total trading assets511.5 12.0 
AFS securitiesAFS securities232.2 — AFS securities312.9 0.2 
LoansLoans61.8 1.7 Loans48.5 2.1 
MSRsMSRs4.5 4.5 MSRs7.3 7.3 
OtherOther51.6 0.6 Other15.7 0.4 
Total assets measured at fair value on a recurring basis
Total assets measured at fair value on a recurring basis
1,195.2 15.9 
Total assets measured at fair value on a recurring basis
1,281.5 22.0 
Total assets measured at fair value on a nonrecurring basisTotal assets measured at fair value on a nonrecurring basis3.2 1.2 Total assets measured at fair value on a nonrecurring basis2.1 1.2 
Total assets measured at fair value
Total assets measured at fair value
$1,198.4 $17.1 
Total assets measured at fair value
$1,283.6 $23.2 
Total Firm assetsTotal Firm assets$3,684.3 Total Firm assets$3,954.7 
Level 3 assets at fair value as a percentage of total Firm assets(a)
Level 3 assets at fair value as a percentage of total Firm assets(a)
0.5 %
Level 3 assets at fair value as a percentage of total Firm assets(a)
0.6 %
Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)
Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)
1.4 %
Level 3 assets at fair value as a percentage of total Firm assets at fair value(a)
1.8 %
(a)For purposes of the table above, the derivative receivables total reflects the impact of netting adjustments; however, the $6.5$9.4 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.

8576

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 valuationfair value hierarchy, judgments used to estimate fair value are more significant than those required when estimating the fair value of instruments classified within levels 1 and 2.
In arriving at an estimate of fair value for an instrument within level 3, management must first determine the appropriate valuation model or other valuation technique to use. Second, the lack of observability of certain significant inputs requires management to assess all relevant empirical data in deriving valuation inputs including, for example, transaction details, yield curves, interest rates, prepayment speed, default rates, volatilities, correlations, prices (such as commodity, equity or debt prices), valuations of comparable instruments, foreign exchange rates and credit curves. Refer to Note 2 for a further discussion of the valuation of level 3 instruments, including unobservable inputs used.
For instruments classified in levels 2 and 3, management judgment must be applied to assess the appropriate level of valuation adjustments to reflect counterparty credit quality, the Firm’s creditworthiness, market funding rates, liquidity considerations, unobservable parameters, and for portfolios that meet specified criteria, the size of the net open risk position. The judgments made are typically affected by the type of product and its specific contractual terms, and the level of liquidity for the product or within the market as a whole. In periods of heightened market volatility and uncertainty judgments are further affected by the wider variation of reasonable valuation estimates, particularly for positions that are less liquid. Refer to Note 2 for a further discussion of valuation adjustments applied by the Firm.
Imprecision in estimating unobservable market inputs or other factors can affect the amount of gain or loss recorded for a particular position. Furthermore, while the Firm believes its valuation methods are appropriate and consistent with those of other market participants, the methods and assumptions used reflect management judgment and may vary across the Firm’s businesses and portfolios.
The Firm uses various methodologies and assumptions in the determination of fair value. The use of methodologies or assumptions different than those used by the Firm could result in a different estimate of fair value at the reporting date. Refer to Note 2 for a detailed discussion of the Firm’s valuation process and hierarchy, and its determination of fair value for individual financial instruments.

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. Refer to Goodwill impairment on page 154152 of JPMorgan Chase’s 20202021 Form 10-K for a description of the significant valuation judgments associated with goodwill impairment.
Refer to Note 14 for additional information on goodwill, including the goodwill impairment assessment as of June 30, 2021.March 31, 2022.
Credit card rewards liability
The credit card rewards liability was $8.3$10.1 billion and $7.7$9.8 billion at June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively, and is recorded in accounts payable and other liabilities on the Consolidated balance sheets. Refer to page 154152 of JPMorgan Chase’s 20202021 Form 10-K for a description of the significant assumptions and sensitivities, associated with the Firm’s credit card rewards liability.
Income taxes
Refer to Income taxes on pages 154-155152-153 of JPMorgan Chase’s 20202021 Form 10-K for a description of the significant assumptions, judgments and interpretations associated with the accounting for income taxes.
Litigation reserves
Refer to Note 24 of this Form 10-Q, and Note 30 of JPMorgan Chase’s 20202021 Form 10-K for a description of the significant estimates and judgments associated with establishing litigation reserves.
8677

ACCOUNTING AND REPORTING DEVELOPMENTS
Financial Accounting Standards Board (“FASB”) Standards Adopted since January 1, 2021
StandardSummary of guidanceEffects on financial statements
Reference Rate
Reform

Issued March
2020 and updated January 2021
•Provides optional expedients and exceptions to current accounting guidance when financial instruments, hedge accounting relationships, and other transactions are amended due to reference rate reform.
•Provides an election to account for certain contract amendments related to reference rate reform as modifications rather than extinguishments without the requirement to assess the significance of the amendments.
•Allows for changes in critical terms of a hedge accounting relationship without automatic termination of that relationship. Provides various practical expedients and elections designed to allow hedge accounting to continue uninterrupted during the transition period.
•Provides a one-time election to transfer securities out of the held-to-maturity classification if certain criteria are met.
•The January 2021 update provides an election to account for derivatives modified to change the rate used for discounting, margining, or contract price alignment (collectively “discounting transition”) as modifications.
•Issued and effective March 12, 2020. The January 7, 2021 update was effective when issued.
•The Firm elected to apply certain of the practical expedients related to contract modifications and hedge accounting relationships, and discounting transition beginning in the third quarter of 2020. The discounting transition election was applied retrospectively. The main purpose of the practical expedients is to ease the administrative burden of accounting for contracts impacted by reference rate reform. These elections did not have a material impact on the Consolidated Financial Statements.
FASB Standards Issued but not yet Adopted
StandardSummary of guidanceEffects on financial statements
Derivatives and Hedging: Fair Value Hedging – Portfolio Layer Method

Issued March 2022
•Expands the current ability to hedge a portfolio of prepayable assets to allow more of the portfolio to be hedged. Non-prepayable assets can also be included in the same portfolio, thus increasing the size of the portfolio and the amount available to be hedged.
•Clarifies the types of derivatives that can be used as hedges, and the balance sheet presentation and updates the disclosure guidance for the hedge accounting adjustments.
•Required effective date: January 1, 2023. (a)
•The Firm is currently evaluating the potential impact on the Consolidated Financial Statements.
Financial Instruments – Credit Losses: Troubled Debt Restructurings and Vintage Disclosures

Issued March 2022

•Eliminates existing accounting and disclosure requirements for Troubled Debt Restructurings, including the requirement to measure the allowance using a discounted cash flow methodology.
•Requires disclosure of loan modifications for borrowers experiencing financial difficulty involving principal forgiveness, interest rate concessions, term extensions or a combination of these types.
•Requires disclosure of current period loan charge-off information by origination year.
•May be adopted using a full retrospective method, or a modified retrospective method wherein the effect of adoption is reflected as an adjustment to retained earnings at the effective date.
•Required effective date: January 1, 2023. (a)
•The Firm is currently evaluating the potential impact on the Consolidated Financial Statements.
•The Firm plans to adopt the new guidance on January 1, 2023.

(a)Early adoption is permitted.
8778

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:
•Economic, financial, reputational and other impacts of the COVID-19 pandemic;
•Local, regional and global business, economic and political conditions and geopolitical events;events, including the war in Ukraine;
•Changes in laws, rules and regulatory requirements, including capital and liquidity requirements affecting the Firm’s businesses, and the ability of the Firm to address those requirements;
•Heightened regulatory and governmental oversight and scrutiny of JPMorgan Chase’s business practices, including dealings with retail customers;
•Changes in trade, monetary and fiscal policies and laws;
•Changes in the level of inflation;
•Changes in income tax laws, rules and regulations;
•Securities and capital markets behavior, including changes in market liquidity and volatility;
•Changes in investor sentiment or consumer spending or savings behavior;
•Ability of the Firm to manage effectively its capital and liquidity;
•Changes in credit ratings assigned to the Firm or its subsidiaries;
•Damage to the Firm’s reputation;
•Ability of the Firm to appropriately address social, environmental and sustainability concerns that may arise, including from its business activities;
•Ability of the Firm to deal effectively with an economic slowdown or other economic or market disruption, including, but not limited to, in the interest rate environment;
•Technology changes instituted by the Firm, its counterparties or competitors;
•The effectiveness of the Firm’s control agenda;
•Ability of the Firm to develop or discontinue products and services, and the extent to which products or services previously sold by the Firm require the Firm to incur liabilities or absorb losses not contemplated at their initiation or origination;
•Acceptance of the Firm’s new and existing products and services by the marketplace and the ability of the Firm to innovate and to increase market share;
•Ability of the Firm to attract and retain qualified and diverse employees;
•Ability of the Firm to control expenses;
•Competitive pressures;
•Changes in the credit quality of the Firm’s clients, customers and counterparties;
•Adequacy of the Firm’s risk management framework, disclosure controls and procedures and internal control over financial reporting;
•Adverse judicial or regulatory proceedings;
•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, including health emergencies, the spread of infectious diseases, epidemics or pandemics, an outbreak or outbreaksescalation of hostilities or other geopolitical instabilities, the effects of climate change or extraordinary events beyond the Firm's control, and the Firm’s ability to deal effectively with disruptions caused by the foregoing;
•Ability of the Firm to maintain the security of its financial, accounting, technology, data processing and other operational systems and facilities;
•Ability of the Firm to withstand disruptions that may be caused by any failure of its operational systems or those of third parties;
•Ability of the Firm to effectively defend itself against cyber attackscyberattacks and other attempts by unauthorized parties to access information of the Firm or its customers or to disrupt the Firm’s systems;
•Economic, financial, reputational and other impacts of the COVID-19 pandemic; and
•The other risks and uncertainties detailed in Part II,
Item 1A: Risk Factors in this form 10-Q and Part I, Item 1A: Risk Factors in JPMorgan Chase’s 20202021 Form 10-K.
Any forward-looking statements made by or on behalf of the Firm speak only as of the date they are made, and JPMorgan Chase does not undertake to update any forward-looking statements. The reader should, however, consult any further disclosures of a forward-looking nature the Firm may make in any subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K.
8879


JPMorgan Chase & Co.
Consolidated statements of income (unaudited)
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions, except per share data)(in millions, except per share data)2021202020212020(in millions, except per share data)20222021
RevenueRevenueRevenue
Investment banking feesInvestment banking fees$3,470 $2,850 $6,440 $4,716 Investment banking fees$2,008 $2,970 
Principal transactionsPrincipal transactions4,076 7,621 10,576 10,558 Principal transactions5,105 6,500 
Lending- and deposit-related feesLending- and deposit-related fees1,760 1,431 3,447 3,137 Lending- and deposit-related fees1,839 1,687 
Asset management, administration and commissionsAsset management, administration and commissions5,194 4,266 10,223 8,806 Asset management, administration and commissions5,362 5,029 
Investment securities gains/(losses)Investment securities gains/(losses)(155)26 (141)259 Investment securities gains/(losses)(394)14 
Mortgage fees and related incomeMortgage fees and related income551 917 1,255 1,237 Mortgage fees and related income460 704 
Card incomeCard income1,647 974 2,997 1,969 Card income975 1,350 
Other income(a)
Other income(a)
1,195 1,137 2,318 2,387 
Other income(a)
1,490 1,123 
Noninterest revenueNoninterest revenue17,738 19,222 37,115 33,069 Noninterest revenue16,845 19,377 
Interest incomeInterest income14,094 16,112 28,365 35,273 Interest income15,496 14,271 
Interest expenseInterest expense1,353 2,259 2,735 6,981 Interest expense1,624 1,382 
Net interest incomeNet interest income12,741 13,853 25,630 28,292 Net interest income13,872 12,889 
Total net revenueTotal net revenue30,479 33,075 62,745 61,361 Total net revenue30,717 32,266 
Provision for credit lossesProvision for credit losses(2,285)10,473 (6,441)18,758 Provision for credit losses1,463 (4,156)
Noninterest expenseNoninterest expenseNoninterest expense
Compensation expenseCompensation expense9,814 9,509 20,415 18,404 Compensation expense10,787 10,601 
Occupancy expenseOccupancy expense1,090 1,080 2,205 2,146 Occupancy expense1,134 1,115 
Technology, communications and equipment expenseTechnology, communications and equipment expense2,488 2,590 5,007 5,168 Technology, communications and equipment expense2,360 2,519 
Professional and outside servicesProfessional and outside services2,385 1,999 4,588 4,027 Professional and outside services2,572 2,203 
MarketingMarketing626 481 1,377 1,281 Marketing920 751 
Other expenseOther expense1,264 1,283 2,800 2,707 Other expense1,418 1,536 
Total noninterest expenseTotal noninterest expense17,667 16,942 36,392 33,733 Total noninterest expense19,191 18,725 
Income before income tax expenseIncome before income tax expense15,097 5,660 32,794 8,870 Income before income tax expense10,063 17,697 
Income tax expense(a)
Income tax expense(a)
3,149 973 6,546 1,318 
Income tax expense(a)
1,781 3,397 
Net incomeNet income$11,948 $4,687 $26,248 $7,552 Net income$8,282 $14,300 
Net income applicable to common stockholdersNet income applicable to common stockholders$11,496 $4,265 $25,346 $6,698 Net income applicable to common stockholders$7,845 $13,851 
Net income per common share dataNet income per common share dataNet income per common share data
Basic earnings per shareBasic earnings per share$3.79 $1.39 $8.30 $2.17 Basic earnings per share$2.64 $4.51 
Diluted earnings per shareDiluted earnings per share3.78 1.38 8.28 2.17 Diluted earnings per share2.63 4.50 
Weighted-average basic sharesWeighted-average basic shares3,036.6 3,076.3 3,054.9 3,086.1 Weighted-average basic shares2,977.0 3,073.5 
Weighted-average diluted sharesWeighted-average diluted shares3,041.9 3,081.0 3,060.3 3,090.8 Weighted-average diluted shares2,981.0 3,078.9 
(a) Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information..
The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.






8980

JPMorgan Chase & Co.
Consolidated statements of comprehensive income (unaudited)
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
Net incomeNet income$11,948 $4,687 $26,248 $7,552 Net income$8,282 $14,300 
Other comprehensive income/(loss), after–taxOther comprehensive income/(loss), after–taxOther comprehensive income/(loss), after–tax
Unrealized gains/(losses) on investment securitiesUnrealized gains/(losses) on investment securities674 2,744 (3,665)3,863 Unrealized gains/(losses) on investment securities(7,453)(4,339)
Translation adjustments, net of hedgesTranslation adjustments, net of hedges64 142 (186)(188)Translation adjustments, net of hedges(62)(250)
Fair value hedgesFair value hedges(23)16 (51)104 Fair value hedges110 (28)
Cash flow hedgesCash flow hedges591 234 (1,658)2,699 Cash flow hedges(2,791)(2,249)
Defined benefit pension and OPEB plansDefined benefit pension and OPEB plans9 (7)77 26 Defined benefit pension and OPEB plans67 68 
DVA on fair value option elected liabilitiesDVA on fair value option elected liabilities214 (1,758)67 716 DVA on fair value option elected liabilities646 (147)
Total other comprehensive income/(loss), after–taxTotal other comprehensive income/(loss), after–tax1,529 1,371 (5,416)7,220 Total other comprehensive income/(loss), after–tax(9,483)(6,945)
Comprehensive incomeComprehensive income$13,477 $6,058 $20,832 $14,772 Comprehensive income$(1,201)$7,355 
The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

9081

JPMorgan Chase & Co.
Consolidated balance sheets (unaudited)
(in millions, except share data)(in millions, except share data)June 30, 2021December 31, 2020(in millions, except share data)March 31, 2022December 31, 2021
AssetsAssetsAssets
Cash and due from banksCash and due from banks$26,592 $24,874 Cash and due from banks$26,165 $26,438 
Deposits with banksDeposits with banks678,829 502,735 Deposits with banks728,367 714,396 
Federal funds sold and securities purchased under resale agreements (included $254,574 and $238,015 at fair value)
260,987 296,284 
Securities borrowed (included $69,988 and $52,983 at fair value)
186,376 160,635 
Trading assets (included assets pledged of $133,547 and $130,645)
520,588 503,126 
Available-for-sale securities (amortized cost of $230,110 and $381,729, net of allowance for credit losses; included assets pledged of $12,199 and $32,227)
232,161 388,178 
Federal funds sold and securities purchased under resale agreements (included $298,339 and $252,720 at fair value)
Federal funds sold and securities purchased under resale agreements (included $298,339 and $252,720 at fair value)
301,875 261,698 
Securities borrowed (included $87,276 and $81,463 at fair value)
Securities borrowed (included $87,276 and $81,463 at fair value)
224,852 206,071 
Trading assets (included assets pledged of $120,758 and $102,710)
Trading assets (included assets pledged of $120,758 and $102,710)
511,528 433,575 
Available-for-sale securities (amortized cost of $322,122 and $308,254, net of allowance for credit losses; included assets pledged of $20,119 and $18,268)
Available-for-sale securities (amortized cost of $322,122 and $308,254, net of allowance for credit losses; included assets pledged of $20,119 and $18,268)
312,875 308,525 
Held-to-maturity securities (net of allowance for credit losses)Held-to-maturity securities (net of allowance for credit losses)341,476 201,821 Held-to-maturity securities (net of allowance for credit losses)366,585 363,707 
Investment securities, net of allowance for credit lossesInvestment securities, net of allowance for credit losses573,637 589,999 Investment securities, net of allowance for credit losses679,460 672,232 
Loans (included $61,776 and $44,474 at fair value)
1,040,954 1,012,853 
Loans (included $48,463 and $58,820 at fair value)
Loans (included $48,463 and $58,820 at fair value)
1,073,285 1,077,714 
Allowance for loan lossesAllowance for loan losses(19,500)(28,328)Allowance for loan losses(17,192)(16,386)
Loans, net of allowance for loan lossesLoans, net of allowance for loan losses1,021,454 984,525 Loans, net of allowance for loan losses1,056,093 1,061,328 
Accrued interest and accounts receivableAccrued interest and accounts receivable125,253 90,503 Accrued interest and accounts receivable152,207 102,570 
Premises and equipmentPremises and equipment26,631 27,109 Premises and equipment26,916 27,070 
Goodwill, MSRs and other intangible assetsGoodwill, MSRs and other intangible assets54,655 53,428 Goodwill, MSRs and other intangible assets58,485 56,691 
Other assets(a) (included $52,234 and $13,827 at fair value and assets pledged of $40,319 and $3,739)
209,254 151,539 
Other assets (included $16,532 and $14,753 at fair value and assets pledged of $8,075 and $5,298)
Other assets (included $16,532 and $14,753 at fair value and assets pledged of $8,075 and $5,298)
188,739 181,498 
Total assets(b)(a)
Total assets(b)(a)
$3,684,256 $3,384,757 
Total assets(b)(a)
$3,954,687 $3,743,567 
LiabilitiesLiabilitiesLiabilities
Deposits (included $14,023 and $14,484 at fair value)
$2,305,217 $2,144,257 
Federal funds purchased and securities loaned or sold under repurchase agreements (included $175,817 and $155,735 at fair value)
245,437 215,209 
Deposits (included $10,443 and $11,333 at fair value)
Deposits (included $10,443 and $11,333 at fair value)
$2,561,207 $2,462,303 
Federal funds purchased and securities loaned or sold under repurchase agreements (included $146,112 and $126,435 at fair value)
Federal funds purchased and securities loaned or sold under repurchase agreements (included $146,112 and $126,435 at fair value)
223,858 194,340 
Short-term borrowings (included $20,002 and $16,893 at fair value)
51,938 45,208 
Short-term borrowings (included $19,198 and $20,015 at fair value)
Short-term borrowings (included $19,198 and $20,015 at fair value)
57,586 53,594 
Trading liabilitiesTrading liabilities183,867 170,181 Trading liabilities202,083 164,693 
Accounts payable and other liabilities(a) (included $45,571 and $3,476 at fair value)
297,082 231,285 
Beneficial interests issued by consolidated VIEs (included $84 and $41 at fair value)
14,403 17,578 
Long-term debt (included $75,733 and $76,817 at fair value)
299,926 281,685 
Accounts payable and other liabilities (included $8,019 and $5,651 at fair value)
Accounts payable and other liabilities (included $8,019 and $5,651 at fair value)
320,671 262,755 
Beneficial interests issued by consolidated VIEs (included $11 and $12 at fair value)
Beneficial interests issued by consolidated VIEs (included $11 and $12 at fair value)
10,144 10,750 
Long-term debt (included $70,704 and $74,934 at fair value)
Long-term debt (included $70,704 and $74,934 at fair value)
293,239 301,005 
Total liabilities(b)(a)
Total liabilities(b)(a)
3,397,870 3,105,403 
Total liabilities(b)(a)
3,668,788 3,449,440 
Commitments and contingencies (refer to Notes 22, 23 and 24)Commitments and contingencies (refer to Notes 22, 23 and 24)00Commitments and contingencies (refer to Notes 22, 23 and 24)00
Stockholders’ equityStockholders’ equityStockholders’ equity
Preferred stock ($1 par value; authorized 200,000,000 shares; issued 3,283,750 and 3,006,250 shares)
32,838 30,063 
Preferred stock ($1 par value; authorized 200,000,000 shares; issued 3,283,750 and 3,483,750 shares)
Preferred stock ($1 par value; authorized 200,000,000 shares; issued 3,283,750 and 3,483,750 shares)
32,838 34,838 
Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)
Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)
4,105 4,105 
Common stock ($1 par value; authorized 9,000,000,000 shares; issued 4,104,933,895 shares)
4,105 4,105 
Additional paid-in capitalAdditional paid-in capital88,194 88,394 Additional paid-in capital88,260 88,415 
Retained earningsRetained earnings256,983 236,990 Retained earnings277,177 272,268 
Accumulated other comprehensive incomeAccumulated other comprehensive income2,570 7,986 Accumulated other comprehensive income(9,567)(84)
Treasury stock, at cost (1,116,778,540 and 1,055,499,435 shares)
(98,304)(88,184)
Treasury stock, at cost (1,167,883,429 and 1,160,784,750 shares)
Treasury stock, at cost (1,167,883,429 and 1,160,784,750 shares)
(106,914)(105,415)
Total stockholders’ equityTotal stockholders’ equity286,386 279,354 Total stockholders’ equity285,899 294,127 
Total liabilities and stockholders’ equityTotal liabilities and stockholders’ equity$3,684,256 $3,384,757 Total liabilities and stockholders’ equity$3,954,687 $3,743,567 
(a) Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
(b) The following table presents information on assets and liabilities related to VIEs that are consolidated by the Firm at June 30, 2021,March 31, 2022, and December 31, 2020.2021. The assets of the consolidated VIEs are used to settle the liabilities of those entities. The holders of the beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. The assets and liabilities in the table below include third-party assets and liabilities of consolidated VIEs and exclude intercompany balances that eliminate in consolidation. Refer to Note 13 for a further discussion.
(in millions)(in millions)June 30, 2021December 31, 2020(in millions)March 31, 2022December 31, 2021
AssetsAssetsAssets
Trading assetsTrading assets$1,995 $1,934 Trading assets$2,020 $2,010 
LoansLoans35,284 37,619 Loans31,966 33,024 
All other assetsAll other assets609 681 All other assets472 490 
Total assetsTotal assets$37,888 $40,234 Total assets$34,458 $35,524 
LiabilitiesLiabilitiesLiabilities
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs$14,403 $17,578 Beneficial interests issued by consolidated VIEs$10,144 $10,750 
All other liabilitiesAll other liabilities233 233 All other liabilities253 245 
Total liabilitiesTotal liabilities$14,636 $17,811 Total liabilities$10,397 $10,995 
The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.

9182

JPMorgan Chase & Co.
Consolidated statements of changes in stockholders’ equity (unaudited)
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions, except per share data)(in millions, except per share data)2021202020212020(in millions, except per share data)20222021
Preferred stockPreferred stockPreferred stock
Balance at the beginning of the periodBalance at the beginning of the period$31,563 $30,063 $30,063 $26,993 Balance at the beginning of the period$34,838 $30,063 
IssuanceIssuance3,850 0 5,350 4,500 Issuance— 1,500 
RedemptionRedemption(2,575)0 (2,575)(1,430)Redemption(2,000)— 
Balance at June 3032,838 30,063 32,838 30,063 
Balance at March 31Balance at March 3132,838 31,563 
Common stockCommon stockCommon stock
Balance at the beginning and end of the periodBalance at the beginning and end of the period4,105 4,105 4,105 4,105 Balance at the beginning and end of the period4,105 4,105 
Additional paid-in capitalAdditional paid-in capitalAdditional paid-in capital
Balance at the beginning of the periodBalance at the beginning of the period88,005 87,857 88,394 88,522 Balance at the beginning of the period88,415 88,394 
Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effectsShares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects229 268 (134)(392)Shares issued and commitments to issue common stock for employee share-based compensation awards, and related tax effects(155)(363)
OtherOther(40)0 (66)(5)Other— (26)
Balance at June 3088,194 88,125 88,194 88,125 
Balance at March 31Balance at March 3188,260 88,005 
Retained earningsRetained earningsRetained earnings
Balance at the beginning of the periodBalance at the beginning of the period248,151 220,226 236,990 223,211 Balance at the beginning of the period272,268 236,990 
Cumulative effect of change in accounting principles— — — (2,650)
Net incomeNet income11,948 4,687 26,248 7,552 Net income8,282 14,300 
Dividends declared:Dividends declared:Dividends declared:
Preferred stockPreferred stock(393)(401)(772)(822)Preferred stock(397)(379)
Common stock ($0.90 and $0.90 per share and $1.80 and $1.80 per share, respectively)
(2,723)(2,780)(5,483)(5,559)
Balance at June 30256,983 221,732 256,983 221,732 
Common stock ($1.00 and $0.90 per share)
Common stock ($1.00 and $0.90 per share)
(2,976)(2,760)
Balance at March 31Balance at March 31277,177 248,151 
Accumulated other comprehensive income/(loss)Accumulated other comprehensive income/(loss)Accumulated other comprehensive income/(loss)
Balance at the beginning of the periodBalance at the beginning of the period1,041 7,418 7,986 1,569 Balance at the beginning of the period(84)7,986 
Other comprehensive income/(loss), after-taxOther comprehensive income/(loss), after-tax1,529 1,371 (5,416)7,220 Other comprehensive income/(loss), after-tax(9,483)(6,945)
Balance at June 302,570 8,789 2,570 8,789 
Balance at March 31Balance at March 31(9,567)1,041 
Shares held in RSU Trust, at cost
Balance at the beginning of the period0 (21)0 (21)
Liquidation of RSU Trust0 10 0 10 
Balance at June 300 (11)0 (11)
Treasury stock, at costTreasury stock, at costTreasury stock, at cost
Balance at the beginning of the periodBalance at the beginning of the period(92,151)(88,386)(88,184)(83,049)Balance at the beginning of the period(105,415)(88,184)
RepurchaseRepurchase(6,201)0 (11,200)(6,397)Repurchase(2,500)(4,999)
ReissuanceReissuance48 49 1,080 1,109 Reissuance1,001 1,032 
Balance at June 30(98,304)(88,337)(98,304)(88,337)
Balance at March 31Balance at March 31(106,914)(92,151)
Total stockholders’ equityTotal stockholders’ equity$286,386 $264,466 $286,386 $264,466 Total stockholders’ equity$285,899 $280,714 
The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.
9283

JPMorgan Chase & Co.
Consolidated statements of cash flows (unaudited)
Six months ended June 30,Three months ended March 31,
(in millions)(in millions)20212020(in millions)20222021
Operating activitiesOperating activitiesOperating activities
Net incomeNet income$26,248 $7,552 Net income$8,282 $14,300 
Adjustments to reconcile net income to net cash used in operating activities:Adjustments to reconcile net income to net cash used in operating activities:Adjustments to reconcile net income to net cash used in operating activities:
Provision for credit lossesProvision for credit losses(6,441)18,758 Provision for credit losses1,463 (4,156)
Depreciation and amortizationDepreciation and amortization4,073 4,346 Depreciation and amortization1,820 2,070 
Deferred tax (benefit)/expense(a)
Deferred tax (benefit)/expense(a)
1,027 (4,657)
Deferred tax (benefit)/expense(a)
(730)998 
OtherOther1,788 1,197 Other1,200 890 
Originations and purchases of loans held-for-saleOriginations and purchases of loans held-for-sale(184,866)(76,335)Originations and purchases of loans held-for-sale(66,262)(85,457)
Proceeds from sales, securitizations and paydowns of loans held-for-saleProceeds from sales, securitizations and paydowns of loans held-for-sale161,030 83,745 Proceeds from sales, securitizations and paydowns of loans held-for-sale75,558 75,547 
Net change in:Net change in:Net change in:
Trading assetsTrading assets(2,004)(133,131)Trading assets(91,213)(34,262)
Securities borrowedSecurities borrowed(25,838)(2,777)Securities borrowed(18,979)(18,951)
Accrued interest and accounts receivableAccrued interest and accounts receivable(34,929)374 Accrued interest and accounts receivable(49,719)(24,323)
Other assets(a)
Other assets(a)
2,709 (24,204)
Other assets(a)
1,319 7,131 
Trading liabilitiesTrading liabilities(3,521)69,341 Trading liabilities29,993 (7)
Accounts payable and other liabilities(a)
Accounts payable and other liabilities(a)
30,772 18,869 
Accounts payable and other liabilities(a)
64,738 23,559 
Other operating adjustmentsOther operating adjustments(390)(248)Other operating adjustments613 (1,211)
Net cash (used in) operating activitiesNet cash (used in) operating activities(30,342)(37,170)Net cash (used in) operating activities(41,917)(43,872)
Investing activitiesInvesting activitiesInvesting activities
Net change in:Net change in:Net change in:
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements35,283 (7,580)Federal funds sold and securities purchased under resale agreements(40,407)23,791 
Held-to-maturity securities:Held-to-maturity securities:Held-to-maturity securities:
Proceeds from paydowns and maturitiesProceeds from paydowns and maturities26,224 5,632 Proceeds from paydowns and maturities9,512 14,700 
PurchasesPurchases(63,072)(5,014)Purchases(13,223)(31,348)
Available-for-sale securities:Available-for-sale securities:Available-for-sale securities:
Proceeds from paydowns and maturitiesProceeds from paydowns and maturities28,727 27,070 Proceeds from paydowns and maturities11,291 14,096 
Proceeds from salesProceeds from sales125,192 65,975 Proceeds from sales16,971 80,823 
PurchasesPurchases(109,944)(242,608)Purchases(45,357)(95,958)
Proceeds from sales and securitizations of loans held-for-investmentProceeds from sales and securitizations of loans held-for-investment16,165 12,185 Proceeds from sales and securitizations of loans held-for-investment9,987 6,619 
Other changes in loans, netOther changes in loans, net(21,980)(33,234)Other changes in loans, net(18,185)3,321 
Net purchases of assets pursuant to nonrecourse advances provided by the FRBB under the MMLF0 (3,787)
All other investing activities, netAll other investing activities, net(3,506)(2,118)All other investing activities, net(3,197)(653)
Net cash provided by/(used in) investing activitiesNet cash provided by/(used in) investing activities33,089 (183,479)Net cash provided by/(used in) investing activities(72,608)15,391 
Financing activitiesFinancing activitiesFinancing activities
Net change in:Net change in:Net change in:
DepositsDeposits138,578 382,784 Deposits99,691 120,501 
Federal funds purchased and securities loaned or sold under repurchase agreementsFederal funds purchased and securities loaned or sold under repurchase agreements30,260 51,894 Federal funds purchased and securities loaned or sold under repurchase agreements29,600 88,844 
Short-term borrowingsShort-term borrowings5,862 7,992 Short-term borrowings4,300 9,387 
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs(674)3,619 Beneficial interests issued by consolidated VIEs52 (1,439)
Proceeds from long-term borrowingsProceeds from long-term borrowings55,767 57,744 Proceeds from long-term borrowings20,651 24,162 
Payments of long-term borrowingsPayments of long-term borrowings(33,464)(42,944)Payments of long-term borrowings(13,094)(14,983)
Proceeds from issuance of preferred stockProceeds from issuance of preferred stock5,350 4,500 Proceeds from issuance of preferred stock— 1,500 
Redemption of preferred stockRedemption of preferred stock(2,575)(1,430)Redemption of preferred stock(2,000)— 
Treasury stock repurchasedTreasury stock repurchased(11,000)(6,517)Treasury stock repurchased(2,455)(4,806)
Dividends paidDividends paid(6,314)(6,342)Dividends paid(3,430)(3,193)
All other financing activities, netAll other financing activities, net(822)136 All other financing activities, net(543)(1,062)
Net cash provided by financing activitiesNet cash provided by financing activities180,968 451,436 Net cash provided by financing activities132,772 218,911 
Effect of exchange rate changes on cash and due from banks and deposits with banksEffect of exchange rate changes on cash and due from banks and deposits with banks(5,903)(689)Effect of exchange rate changes on cash and due from banks and deposits with banks(4,549)(6,967)
Net increase in cash and due from banks and deposits with banksNet increase in cash and due from banks and deposits with banks177,812 230,098 Net increase in cash and due from banks and deposits with banks13,698 183,463 
Cash and due from banks and deposits with banks at the beginning of the periodCash and due from banks and deposits with banks at the beginning of the period527,609 263,631 Cash and due from banks and deposits with banks at the beginning of the period740,834 527,609 
Cash and due from banks and deposits with banks at the end of the periodCash and due from banks and deposits with banks at the end of the period$705,421 $493,729 Cash and due from banks and deposits with banks at the end of the period$754,532 $711,072 
Cash interest paidCash interest paid$2,461 $9,239 Cash interest paid$1,088 $1,127 
Cash income taxes paid, net(a)
Cash income taxes paid, net(a)
13,716 4,142 
Cash income taxes paid, net(a)
705 707 
(a) Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information on the revisions to the operating activities.
The Notes to Consolidated Financial Statements (unaudited) are an integral part of these statements.
9384

Refer to the Glossary of Terms and Acronyms on pages 181–189166-174 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 based in the U.S., with operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Refer to Note 25 for a further discussion of the Firm’s business segments.
The accounting and financial reporting policies of JPMorgan Chase and its subsidiaries conform to U.S. GAAP. Additionally, where applicable, the policies conform to the accounting and reporting guidelines prescribed by regulatory authorities.
The unaudited Consolidated Financial Statements prepared in conformity with U.S. GAAP require management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expense, and the disclosures of contingent assets and liabilities. Actual results could be different from these estimates. In the opinion of management, all normal, recurring adjustments have been included such that this interim financial information is fairly stated.
These unaudited Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements, and related notes thereto, included in JPMorgan Chase’s 20202021 Form 10-K.
Certain amounts reported in prior periods have been reclassified to conform with the current presentation, including certain deferred investment tax credits. In the first quarter of 2021 the Firm reclassified certain deferred investment tax credits from accounts payable and other liabilities to other assets to be a reduction to the carrying value of the associated tax-oriented investments. The reclassification also resulted in an increase in income tax expense and a corresponding increase in other income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation, including the Firm’s effective income tax rate. The reclassification did not change the Firm’s results of operations on a managed basis.presentation.
Consolidation
The Consolidated Financial Statements include the accounts of JPMorgan Chase and other entities in which the Firm has a controlling financial interest. All material intercompany balances and transactions have been eliminated.
Assets held for clients in an agency or fiduciary capacity by the Firm are not assets of JPMorgan Chase and are not included on the Consolidated balance sheets.
The Firm determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity.
Refer to Notes 1 and 14 of JPMorgan Chase’s 20202021 Form     10-K for a further description of JPMorgan Chase’s accounting policies regarding consolidation.
Offsetting assets and liabilities
U.S. GAAP permits entities to present derivative receivables and derivative payables with the same counterparty and the related cash collateral receivables and payables on a net basis on the Consolidated balance sheets when a legally enforceable master netting agreement exists. U.S. GAAP also permits securities financing 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 whenwhere it has determined that the specified conditions are met. Refer to Note 1 of JPMorgan Chase’s 20202021 Form 10-K for further information on offsetting assets and liabilities.

9485

Note 2 – Fair value measurement
Refer to Note 2 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of the Firm’s valuation methodologies for assets, liabilities and lending-related commitments measured at fair value and the fair value hierarchy.

9586

The following table presents the assets and liabilities reported at fair value as of June 30, 2021,March 31, 2022, and December 31, 2020,2021, by major product category and fair value hierarchy.
Assets and liabilities measured at fair value on a recurring basisAssets and liabilities measured at fair value on a recurring basisAssets and liabilities measured at fair value on a recurring basis
Fair value hierarchy
Derivative
netting
adjustments(f)
Fair value hierarchy
Derivative
netting
adjustments(f)
June 30, 2021 (in millions)Level 1Level 2Level 3Total fair value
March 31, 2022 (in millions)March 31, 2022 (in millions)Level 1Level 2Level 3
Derivative
netting
adjustments(f)
Total fair value
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements$0 $254,574 $0 $— $254,574 Federal funds sold and securities purchased under resale agreements$— $298,339 $— $298,339 
Securities borrowedSecurities borrowed0 69,988 0 — 69,988 Securities borrowed— 87,276 — 87,276 
Trading assets:Trading assets:Trading assets:
Debt instruments:Debt instruments:Debt instruments:
Mortgage-backed securities:Mortgage-backed securities:Mortgage-backed securities:
U.S. GSEs and government agencies(a)
U.S. GSEs and government agencies(a)
0 34,381 329 — 34,710 
U.S. GSEs and government agencies(a)
— 40,328 286 — 40,614 
Residential – nonagencyResidential – nonagency0 2,178 16 — 2,194 Residential – nonagency— 2,301 10 — 2,311 
Commercial – nonagencyCommercial – nonagency0 1,654 10 — 1,664 Commercial – nonagency— 1,695 10 — 1,705 
Total mortgage-backed securitiesTotal mortgage-backed securities0 38,213 355 — 38,568 Total mortgage-backed securities— 44,324 306 — 44,630 
U.S. Treasury, GSEs and government agencies(a)
U.S. Treasury, GSEs and government agencies(a)
76,124 8,807 0 — 84,931 
U.S. Treasury, GSEs and government agencies(a)
70,115 9,120 — — 79,235 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities0 6,871 8 — 6,879 Obligations of U.S. states and municipalities— 7,067 7 — 7,074 
Certificates of deposit, bankers’ acceptances and commercial paperCertificates of deposit, bankers’ acceptances and commercial paper0 2,394 0 — 2,394 Certificates of deposit, bankers’ acceptances and commercial paper— 2,813 — — 2,813 
Non-U.S. government debt securitiesNon-U.S. government debt securities38,206 52,502 183 — 90,891 Non-U.S. government debt securities39,150 48,129 133 — 87,412 
Corporate debt securitiesCorporate debt securities0 30,653 487 — 31,140 Corporate debt securities— 29,315 293 — 29,608 
LoansLoans0 7,540 795 — 8,335 Loans— 6,904 1,049 — 7,953 
Asset-backed securitiesAsset-backed securities0 2,630 35 — 2,665 Asset-backed securities— 3,117 28 — 3,145 
Total debt instrumentsTotal debt instruments114,330 149,610 1,863 — 265,803 Total debt instruments109,265 150,789 1,816 — 261,870 
Equity securitiesEquity securities139,456 1,911 690 — 142,057 Equity securities125,057 1,248 663 — 126,968 
Physical commodities(b)
Physical commodities(b)
9,953 10,611 0 — 20,564 
Physical commodities(b)
7,574 17,815 — — 25,389 
OtherOther0 21,350 47 — 21,397 Other— 23,445 175 — 23,620 
Total debt and equity instruments(c)
Total debt and equity instruments(c)
263,739 183,482 2,600 — 449,821 
Total debt and equity instruments(c)
241,896 193,297 2,654 — 437,847 
Derivative receivables:Derivative receivables:Derivative receivables:
Interest rateInterest rate953 301,447 1,849 (278,203)26,046 Interest rate7,352 251,399 3,058 (238,491)23,318 
CreditCredit0 9,561 543 (9,156)948 Credit— 12,027 578 (11,230)1,375 
Foreign exchangeForeign exchange130 156,594 693 (142,910)14,507 Foreign exchange268 209,463 1,114 (191,342)19,503 
EquityEquity0 70,075 3,029 (56,243)16,861 Equity— 68,876 3,994 (64,228)8,642 
CommodityCommodity0 28,761 369 (16,781)12,349 Commodity— 56,871 651 (36,724)20,798 
Total derivative receivablesTotal derivative receivables1,083 566,438 6,483 (503,293)70,711 Total derivative receivables7,620 598,636 9,395 (542,015)73,636 
Total trading assets(d)
Total trading assets(d)
264,822 749,920 9,083 (503,293)520,532 
Total trading assets(d)
249,516 791,933 12,049 (542,015)511,483 
Available-for-sale securities:Available-for-sale securities:Available-for-sale securities:
Mortgage-backed securities:Mortgage-backed securities:Mortgage-backed securities:
U.S. GSEs and government agencies(a)
U.S. GSEs and government agencies(a)
0 72,682 0 — 72,682 
U.S. GSEs and government agencies(a)
— 89,900 — — 89,900 
Residential – nonagencyResidential – nonagency0 6,970 0 — 6,970 Residential – nonagency— 5,515 — — 5,515 
Commercial – nonagencyCommercial – nonagency0 2,471 0 — 2,471 Commercial – nonagency— 4,905 — — 4,905 
Total mortgage-backed securitiesTotal mortgage-backed securities0 82,123 0 — 82,123 Total mortgage-backed securities— 100,320 — — 100,320 
U.S. Treasury and government agenciesU.S. Treasury and government agencies99,847 0 0 — 99,847 U.S. Treasury and government agencies165,962 — — — 165,962 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities0 18,455 0 — 18,455 Obligations of U.S. states and municipalities— 14,786 — — 14,786 
Certificates of deposit0 0 0 — 0 
Non-U.S. government debt securitiesNon-U.S. government debt securities8,898 8,842 0 — 17,740 Non-U.S. government debt securities5,507 10,794 — — 16,301 
Corporate debt securitiesCorporate debt securities0 216 0 — 216 Corporate debt securities— 151 205 — 356 
Asset-backed securities:Asset-backed securities:Asset-backed securities:
Collateralized loan obligationsCollateralized loan obligations0 8,816 0 — 8,816 Collateralized loan obligations— 10,473 — — 10,473 
OtherOther0 4,964 0 — 4,964 Other— 4,677 — — 4,677 
Total available-for-sale securitiesTotal available-for-sale securities108,745 123,416 — — 232,161 Total available-for-sale securities171,469 141,201 205 — 312,875 
Loans (e)
Loans (e)
0 60,042 1,734 — 61,776 
Loans (e)
— 46,391 2,072 — 48,463 
Mortgage servicing rightsMortgage servicing rights0 0 4,549 — 4,549 Mortgage servicing rights— — 7,294 — 7,294 
Other assets(d)
Other assets(d)
45,594 5,490 518 — 51,602 
Other assets(d)
9,020 6,371 341 — 15,732 
Total assets measured at fair value on a recurring basisTotal assets measured at fair value on a recurring basis$419,161 $1,263,430 $15,884 $(503,293)$1,195,182 Total assets measured at fair value on a recurring basis$430,005 $1,371,511 $21,961 $(542,015)$1,281,462 
DepositsDeposits$0 $11,339 $2,684 $— $14,023 Deposits$— $8,322 $2,121 $— $10,443 
Federal funds purchased and securities loaned or sold under repurchase agreementsFederal funds purchased and securities loaned or sold under repurchase agreements0 175,817 0 — 175,817 Federal funds purchased and securities loaned or sold under repurchase agreements— 146,112 — — 146,112 
Short-term borrowingsShort-term borrowings0 16,927 3,075 — 20,002 Short-term borrowings— 17,052 2,146 — 19,198 
Trading liabilities:Trading liabilities:Trading liabilities:
Debt and equity instruments(c)
Debt and equity instruments(c)
98,290 29,496 36 — 127,822 
Debt and equity instruments(c)
108,958 35,281 41 — 144,280 
Derivative payables:Derivative payables:Derivative payables:
Interest rateInterest rate996 267,308 1,871 (260,985)9,190 Interest rate5,344 228,527 2,691 (225,032)11,530 
CreditCredit0 10,955 560 (10,331)1,184 Credit— 11,317 534 (11,052)799 
Foreign exchangeForeign exchange147 155,328 1,276 (143,036)13,715 Foreign exchange292 207,398 1,038 (193,067)15,661 
EquityEquity0 76,592 7,965 (63,457)21,100 Equity— 74,450 6,577 (65,210)15,817 
CommodityCommodity0 28,347 1,536 (19,027)10,856 Commodity— 52,611 1,065 (39,680)13,996 
Total derivative payablesTotal derivative payables1,143 538,530 13,208 (496,836)56,045 Total derivative payables5,636 574,303 11,905 (534,041)57,803 
Total trading liabilitiesTotal trading liabilities99,433 568,026 13,244 (496,836)183,867 Total trading liabilities114,594 609,584 11,946 (534,041)202,083 
Accounts payable and other liabilitiesAccounts payable and other liabilities43,774 1,746 51 — 45,571 Accounts payable and other liabilities4,903 3,008 108 — 8,019 
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs0 84 0 — 84 Beneficial interests issued by consolidated VIEs— 11 — — 11 
Long-term debtLong-term debt0 52,206 23,527 — 75,733 Long-term debt— 46,310 24,394 — 70,704 
Total liabilities measured at fair value on a recurring basisTotal liabilities measured at fair value on a recurring basis$143,207 $826,145 $42,581 $(496,836)$515,097 Total liabilities measured at fair value on a recurring basis$119,497 $830,399 $40,715 $(534,041)$456,570 
9687

Fair value hierarchy
Derivative
netting
adjustments(f)
Fair value hierarchy
Derivative
netting
adjustments(f)
December 31, 2020 (in millions)Level 1Level 2Level 3Total fair value
December 31, 2021 (in millions)December 31, 2021 (in millions)Level 1Level 2Level 3
Derivative
netting
adjustments(f)
Total fair value
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements$0 $238,015 $0 $— $238,015 Federal funds sold and securities purchased under resale agreements$— $252,720 $— $252,720 
Securities borrowedSecurities borrowed0 52,983 0 — 52,983 Securities borrowed— 81,463 — 81,463 
Trading assets:Trading assets:Trading assets:
Debt instruments:Debt instruments:Debt instruments:
Mortgage-backed securities:Mortgage-backed securities:Mortgage-backed securities:
U.S. GSEs and government agencies(a)
U.S. GSEs and government agencies(a)
0 68,395 449 — 68,844 
U.S. GSEs and government agencies(a)
— 38,944 265 — 39,209 
Residential – nonagencyResidential – nonagency0 2,138 28 — 2,166 Residential – nonagency— 2,358 28 — 2,386 
Commercial – nonagencyCommercial – nonagency0 1,327 3 — 1,330 Commercial – nonagency— 1,506 10 — 1,516 
Total mortgage-backed securitiesTotal mortgage-backed securities0 71,860 480 — 72,340 Total mortgage-backed securities— 42,808 303 — 43,111 
U.S. Treasury, GSEs and government agencies(a)
U.S. Treasury, GSEs and government agencies(a)
104,263 10,996 0 — 115,259 
U.S. Treasury, GSEs and government agencies(a)
68,527 9,181 — — 77,708 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities0 7,184 8 — 7,192 Obligations of U.S. states and municipalities— 7,068 7 — 7,075 
Certificates of deposit, bankers’ acceptances and commercial paperCertificates of deposit, bankers’ acceptances and commercial paper0 1,230 0 — 1,230 Certificates of deposit, bankers’ acceptances and commercial paper— 852 — — 852 
Non-U.S. government debt securitiesNon-U.S. government debt securities26,772 40,671 182 — 67,625 Non-U.S. government debt securities26,982 44,581 81 — 71,644 
Corporate debt securitiesCorporate debt securities0 21,017 507 — 21,524 Corporate debt securities— 24,491 332 — 24,823 
LoansLoans0 6,101 893 — 6,994 Loans— 7,366 708 — 8,074 
Asset-backed securitiesAsset-backed securities0 2,304 28 — 2,332 Asset-backed securities— 2,668 26 — 2,694 
Total debt instrumentsTotal debt instruments131,035 161,363 2,098 — 294,496 Total debt instruments95,509 139,015 1,457 — 235,981 
Equity securitiesEquity securities97,035 2,652 476 (g)— 100,163 Equity securities86,904 1,741 662 — 89,307 
Physical commodities(b)
Physical commodities(b)
6,382 5,189 0 — 11,571 
Physical commodities(b)
5,357 20,788 — — 26,145 
OtherOther0 17,165 49 (g)— 17,214 Other— 24,850 160 — 25,010 
Total debt and equity instruments(c)
Total debt and equity instruments(c)
234,452 186,369 2,623 — 423,444 
Total debt and equity instruments(c)
187,770 186,394 2,279 — 376,443 
Derivative receivables:Derivative receivables:Derivative receivables:
Interest rate(g)
2,318 387,023 

2,307 (355,923)35,725 
Credit(g)
0 12,721 624 (12,665)680 
Interest rateInterest rate1,072 267,493 

2,020 (248,611)21,974 
CreditCredit— 9,321 518 (8,808)1,031 
Foreign exchangeForeign exchange146 205,127 

987 (190,479)15,781 Foreign exchange134 168,590 

855 (156,954)12,625 
EquityEquity0 71,279 

3,519 (54,125)20,673 Equity— 65,139 3,492 (58,650)9,981 
CommodityCommodity0 21,272 231 (14,732)6,771 Commodity— 26,232 421 (15,183)11,470 
Total derivative receivablesTotal derivative receivables2,464 697,422 

7,668 (627,924)79,630 Total derivative receivables1,206 536,775 

7,306 (488,206)57,081 
Total trading assets(d)
Total trading assets(d)
236,916 883,791 

10,291 (627,924)503,074 
Total trading assets(d)
188,976 723,169 

9,585 (488,206)433,524 
Available-for-sale securities:Available-for-sale securities:Available-for-sale securities:
Mortgage-backed securities:Mortgage-backed securities:Mortgage-backed securities:
U.S. GSEs and government agencies(g)(a)
U.S. GSEs and government agencies(g)(a)
7 113,294 0 — 113,301 
U.S. GSEs and government agencies(g)(a)
4 72,539 — — 72,543 
Residential – nonagencyResidential – nonagency0 10,233 0 — 10,233 Residential – nonagency— 6,070 — — 6,070 
Commercial – nonagencyCommercial – nonagency0 2,856 0 — 2,856 Commercial – nonagency— 4,949 — — 4,949 
Total mortgage-backed securitiesTotal mortgage-backed securities7 126,383 0 — 126,390 Total mortgage-backed securities4 83,558 — — 83,562 
U.S. Treasury and government agenciesU.S. Treasury and government agencies201,951 0 0 — 201,951 U.S. Treasury and government agencies177,463 — — — 177,463 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities0 20,396 0 — 20,396 Obligations of U.S. states and municipalities— 15,860 — — 15,860 
Certificates of deposit0 0 0 — 0 
Non-U.S. government debt securitiesNon-U.S. government debt securities13,135 9,793 0 — 22,928 Non-U.S. government debt securities5,430 10,779 — — 16,209 
Corporate debt securitiesCorporate debt securities0 216 0 — 216 Corporate debt securities— 160 161 — 321 
Asset-backed securities:Asset-backed securities:Asset-backed securities:
Collateralized loan obligationsCollateralized loan obligations0 10,048 0 — 10,048 Collateralized loan obligations— 9,662 — — 9,662 
OtherOther0 6,249 0 — 6,249 Other— 5,448 — — 5,448 
Total available-for-sale securitiesTotal available-for-sale securities215,093 173,085 0 — 388,178 Total available-for-sale securities182,897 125,467 161 — 308,525 
Loans(e)
Loans(e)
0 42,169 2,305 — 44,474 
Loans(e)
— 56,887 1,933 — 58,820 
Mortgage servicing rightsMortgage servicing rights0 0 3,276 — 3,276 Mortgage servicing rights— — 5,494 — 5,494 
Other assets(d)
Other assets(d)
8,110 4,561 538 — 13,209 
Other assets(d)
9,558 4,139 306 — 14,003 
Total assets measured at fair value on a recurring basisTotal assets measured at fair value on a recurring basis$460,119 $1,394,604 

$16,410 

$(627,924)$1,243,209 Total assets measured at fair value on a recurring basis$381,431 $1,243,845 

$17,479 

$(488,206)$1,154,549 
DepositsDeposits$0 $11,571 $2,913 $— $14,484 Deposits$— $9,016 $2,317 $— $11,333 
Federal funds purchased and securities loaned or sold under repurchase agreementsFederal funds purchased and securities loaned or sold under repurchase agreements0 155,735 0 — 155,735 Federal funds purchased and securities loaned or sold under repurchase agreements— 126,435 — — 126,435 
Short-term borrowingsShort-term borrowings0 14,473 2,420 — 16,893 Short-term borrowings— 17,534 2,481 — 20,015 
Trading liabilities:Trading liabilities:Trading liabilities:
Debt and equity instruments(c)
Debt and equity instruments(c)
82,669 16,838 51 — 99,558 
Debt and equity instruments(c)
87,831 26,716 30 — 114,577 
Derivative payables:Derivative payables:Derivative payables:
Interest rate(g)
2,496 349,442 

2,049 (340,975)13,012 
Credit(g)
0 13,984 

848 (12,837)1,995 
Interest rateInterest rate981 237,714 

2,036 (232,537)8,194 
CreditCredit— 10,468 

444 (10,032)880 
Foreign exchangeForeign exchange132 214,373 

1,421 (194,493)21,433 Foreign exchange123 174,349 

1,274 (161,649)14,097 
EquityEquity0 74,032 

7,381 (55,515)25,898 Equity— 72,609 

7,118 (62,494)17,233 
CommodityCommodity0 21,767 

962 (14,444)8,285 Commodity— 26,600 

1,328 (18,216)9,712 
Total derivative payablesTotal derivative payables2,628 673,598 

12,661 (618,264)70,623 Total derivative payables1,104 521,740 

12,200 (484,928)50,116 
Total trading liabilitiesTotal trading liabilities85,297 690,436 

12,712 (618,264)170,181 Total trading liabilities88,935 548,456 

12,230 (484,928)164,693 
Accounts payable and other liabilitiesAccounts payable and other liabilities2,895 513 

68 — 3,476 Accounts payable and other liabilities5,115 467 

69 — 5,651 
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs0 41 

0 — 41 Beneficial interests issued by consolidated VIEs— 12 

— — 12 
Long-term debtLong-term debt0 53,420 

23,397 — 76,817 Long-term debt— 50,560 

24,374 — 74,934 
Total liabilities measured at fair value on a recurring basisTotal liabilities measured at fair value on a recurring basis$88,192 $926,189 

$41,510 $(618,264)$437,627 Total liabilities measured at fair value on a recurring basis$94,050 $752,480 

$41,471 $(484,928)$403,073 
(a)At June 30, 2021,March 31, 2022, and December 31, 2020,2021, included total U.S. GSE obligations of $68.5$72.8 billion and $117.6$73.9 billion, respectively, which were mortgage-related.
(b)Physical commodities inventories are generally accounted for at the lower of cost or net realizable value. “Net realizable value” is a term defined in U.S. GAAP as not exceeding fair value less costs to sell (“transaction costs”). Transaction costs for the Firm’s physical commodities inventories are either not applicable or immaterial to the value of the inventory. Therefore, net realizable value approximates fair value for the Firm’s physical commodities inventories. When fair value hedging has been applied (or when net realizable value is below cost), the carrying value of physical commodities approximates fair value, because under fair value hedge accounting, the cost basis is adjusted for changes in fair value. Refer to Note 4 for a further
97

discussion of the Firm’s hedge accounting relationships. To provide consistent fair value disclosure information, all physical commodities inventories have been included in each period presented.
88

(c)Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions).
(d)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) as a practical expedient are not required to be classified in the fair value hierarchy. At June 30, 2021,March 31, 2022, and December 31, 2020,2021, the fair values of these investments, which include certain hedge funds, private equity funds, real estate and other funds, were $688$845 million and $670$801 million, respectively. Included in these balances at June 30, 2021,March 31, 2022, and December 31, 2020,2021, were trading assets of $56$45 million and $52$51 million, respectively, and other assets of $632$800 million and $618$750 million, respectively.
(e)At June 30, 2021,March 31, 2022, and December 31, 2020,2021, included $29.8$15.1 billion and $15.1$26.2 billion, respectively, of residential first-lien mortgages, and $7.9$9.3 billion and $6.3$8.2 billion, respectively, of commercial first-lien mortgages. Residential mortgage loans include conforming mortgage loans originated with the intent to sell to U.S. GSEs and government agencies of $15.4$5.0 billion and $8.4$13.6 billion, respectively.
(f)As permitted under U.S. GAAP, the Firm has elected to net derivative receivables and derivative payables and the related cash collateral received and paid when a legally enforceable master netting agreement exists. The level 3 balances would be reduced if netting were applied, including the netting benefit associated with cash collateral.
(g)The prior-period amounts have been revised to conform with the current period presentation.
Level 3 valuations
Refer to Note 2 of JPMorgan Chase’s 20202021 Form 10-K for further information on the Firm’s valuation process and a detailed discussion of the determination of fair value for individual financial instruments.
The following table presents the Firm’s primary level 3 financial instruments, the valuation techniques used to measure the fair value of those financial instruments, the significant unobservable inputs, the range of values for those inputs and the weighted or arithmetic averages of such inputs. While the determination to classify an instrument within level 3 is based on the significance of the unobservable inputs to the overall fair value measurement, level 3 financial instruments typically include observable components (that is, components that are actively quoted and can be validated to external sources) in addition to the unobservable components. The level 1 and/or level 2 inputs are not included in the table. In addition, the Firm manages the risk of the observable components of level 3 financial instruments using securities and derivative positions that are classified within levels 1 or 2 of the fair value hierarchy.
The range of values presented in the table is representative of the highest and lowest level input used to value the significant groups of instruments within a product/instrument classification. Where provided, the weighted averages of the input values presented in the table are calculated based on the fair value of the instruments that the input is being used to value.
In the Firm’s view, the input range, weighted and arithmetic average values do not reflect the degree of input uncertainty or an assessment of the reasonableness of the Firm’s estimates and assumptions. Rather, they reflect the characteristics of the various instruments held by the Firm and the relative distribution of instruments within the range of characteristics. For example, two option contracts may have similar levels of market risk exposure and valuation uncertainty, but may have significantly different implied volatility levels because the option contracts have different underlyings, tenors, or strike prices. The input range and weighted average values will therefore vary from period-to-period and parameter-to-parameter based on the characteristics of the instruments held by the Firm at each balance sheet date.

9889

Level 3 inputs(a)
Level 3 inputs(a)
Level 3 inputs(a)
June 30, 2021
March 31, 2022March 31, 2022
Product/InstrumentProduct/Instrument
Fair value
(in millions)
Principal valuation technique
Unobservable inputs(g)
Range of input values
Average(i)
Product/Instrument
Fair value
(in millions)
Principal valuation technique
Unobservable inputs(g)
Range of input values
Average(i)
Residential mortgage-backed securities and loans(b)
Residential mortgage-backed securities and loans(b)
$1,044 Discounted cash flowsYield(3)%–18%5%
Residential mortgage-backed securities and loans(b)
$1,283 Discounted cash flowsYield0%–27%5%
Prepayment speed0%–100%11%Prepayment speed0%–15%13%
Conditional default rate0%–30%8%Conditional default rate0%–2%0%
Loss severity(11)%–108%5%Loss severity0%–107%3%
Commercial mortgage-backed securities and loans(c)
Commercial mortgage-backed securities and loans(c)
270 Market comparablesPrice$0–$102$86
Commercial mortgage-backed securities and loans(c)
395 Market comparablesPrice$0–$102$86
Corporate debt securitiesCorporate debt securities487 Market comparablesPrice$2–$114$92Corporate debt securities498 Market comparablesPrice$0–$233$95
Loans(d)
Loans(d)
1,570 Market comparablesPrice$5–$104$80
Loans(d)
1,749 Market comparablesPrice$0–$109$85
Asset-backed securities35 Market comparablesPrice$0–$99$51
Non-U.S. government debt securitiesNon-U.S. government debt securities133 Market comparablesPrice$5–$101$87
Net interest rate derivativesNet interest rate derivatives(33)Option pricingInterest rate volatility8 bps–654 bps125 bpsNet interest rate derivatives360 Option pricingInterest rate volatility11 bps–573 bps118 bps
Interest rate spread volatility11 bps–23 bps15 bpsInterest rate spread volatility11 bps–23 bps15 bps
Interest rate correlation(65)%–99%36%Interest rate correlation(91)%–99%18%
IR-FX correlation(35)%–50%(1)%IR-FX correlation(35)%–65%4%
11 Discounted cash flowsPrepayment speed0%–30%8%7 Discounted cash flowsPrepayment speed0%–30%6%
Net credit derivativesNet credit derivatives(52)Discounted cash flowsCredit correlation35%–62%47%Net credit derivatives(4)Discounted cash flowsCredit correlation30%–65%47%
Credit spread1bps–1,876 bps 405bpsCredit spread1 bps–3,827 bps429 bps
Recovery rate40%–70%54%Recovery rate25%–70%49%
Conditional default rate89%–100%94%48 Market comparablesPrice$0–$115$80
Net foreign exchange derivativesNet foreign exchange derivatives172 Option pricingIR-FX correlation(40)%–65%17%
Loss severity100%100%(96)Discounted cash flowsPrepayment speed9%9%
35 Market comparablesPrice$0–$115$81
Net foreign exchange derivatives(469)Option pricingIR-FX correlation(40)%–65%19%
(114)Discounted cash flowsPrepayment speed9%30%11%Interest rate curve1%–29%10%
Net equity derivativesNet equity derivatives(4,936)Option pricing
Forward equity price(h)
62%–109%99%Net equity derivatives(2,583)Option pricing
Forward equity price(h)
67%–131%99%
Equity volatility3%–146%29%Equity volatility4%–131%33%
Equity correlation12%–100%55%Equity correlation17%–100%55%
Equity-FX correlation(79)%–60%(27)%Equity-FX correlation(77)%–59%(27)%
Equity-IR correlation15%–50%27%Equity-IR correlation15%–50%29%
Net commodity derivativesNet commodity derivatives(1,167)Option pricingOil Commodity Forward$616 / MT–$670 / MT$643 / MTNet commodity derivatives(414)Option pricingOil Commodity Forward$85 / BBL–$96 / BBL$91 / BBL
Forward power price$15 / MWH–$76 / MWH$46 / MWHIndustrial metals commodity forward$3,363 / MT–$4,242 / MT$3,803 / MT
Commodity volatility2%–70%36%Commodity volatility4%–320%162%
Commodity correlation(50)%–98%24%Commodity correlation(50)%–98%24%
MSRsMSRs4,549 Discounted cash flowsRefer to Note 14MSRs7,294 Discounted cash flowsRefer to Note 14
Long-term debt, short-term borrowings, and deposits(e)
Long-term debt, short-term borrowings, and deposits(e)
28,306 Option pricingInterest rate volatility8 bps–654 bps125 bps
Long-term debt, short-term borrowings, and deposits(e)
27,612 Option pricingInterest rate volatility11 bps–573 bps118 bps
Interest rate correlation(65)%–99%36%Interest rate correlation(91)%–99%18%
IR-FX correlation(35)%–50%(1)%IR-FX correlation(35)%–65%4%
Equity correlation12%–100%55%Equity correlation17%–100%55%
Equity-FX correlation(79)%–60%(27)%Equity-FX correlation(77)%–59%(27)%
Equity-IR correlation15%–50%27%Equity-IR correlation15%–50%29%
980 Discounted cash flowsCredit correlation35%–62%47%1,049 Discounted cash flowsCredit correlation30%–65%47%
Other level 3 assets and liabilities, net(f)
Other level 3 assets and liabilities, net(f)
1,359 
Other level 3 assets and liabilities, net(f)
1,065 
(a)The categories presented in the table have been aggregated based upon the product type, which may differ from their classification on the Consolidated balance sheets. Furthermore, the inputs presented for each valuation technique in the table are, in some cases, not applicable to every instrument valued using the technique as the characteristics of the instruments can differ.
(b)Comprises U.S. GSE and government agency securities of $329$286 million, nonagency securities of $16$10 million and non-trading loans of $699$987 million.
(c)Comprises nonagency securities of $10 million, trading loans of $41$40 million and non-trading loans of $219$345 million.
(d)Comprises trading loans of $754 million$1.0 billion and non-trading loans of $816$740 million.
(e)Long-term debt, short-term borrowings and deposits include structured notes issued by the Firm that are financial instruments that typically contain embedded derivatives. The estimation of the fair value of structured notes includes the derivative features embedded within the instrument. The significant unobservable inputs are broadly consistent with those presented for derivative receivables.
(f)Includes equity securities of $1.3 billion$850 million including $564$187 million in Other Assets, for which quoted prices are not readily available and the fair value is generally based on internal valuation techniques such as EBITDA multiples and comparable analysis. All other level 3 assets and liabilities are insignificant both individually and in aggregate.
(g)Price is a significant unobservable input for certain instruments. When quoted market prices are not readily available, reliance is generally placed on price-based internal valuation techniques. The price input is expressed assuming a par value of $100.
(h)Forward equity price is expressed as a percentage of the current equity price.
(i)Amounts represent weighted averages except for derivative related inputs where arithmetic averages are used.
9990

Changes in and ranges of unobservable inputs
Refer to Note 2 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of the impact on fair value of changes in unobservable inputs and the relationships between unobservable inputs as well as a description of attributes of the underlying instruments and external market factors that affect the range of inputs used in the valuation of the Firm’s positions.
Changes in level 3 recurring fair value measurements
The following tables include a rollforward of the Consolidated balance sheets amounts (including changes in fair value) for financial instruments classified by the Firm within level 3 of the fair value hierarchy for the three and six months ended June 30, 2021March 31, 2022 and 2020.2021. When a determination is made to classify a financial instrument within level 3, the determination is based on the significance of the unobservable inputs to the overall fair value measurement. However, level 3 financial instruments typically include, in addition to the unobservable or level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources); accordingly, the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology. Also, the Firm risk-manages the observable components of level 3 financial instruments using securities and derivative positions that are classified within level 1 or 2 of the fair value hierarchy; as these level 1 and level 2 risk management instruments are not included below, the gains or losses in the following tables do not reflect the effect of the Firm’s risk management activities related to such level 3 instruments.




10091

Fair value measurements using significant unobservable inputsFair value measurements using significant unobservable inputs
Three months ended
June 30, 2021
(in millions)		Fair value at
  April 1,
2021		Total realized/unrealized gains/(losses)Transfers into
level 3		Transfers (out of) level 3Fair value at
June 30, 2021		Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2021
Purchases(f)(g)
Sales
Settlements(g)
Three months ended
March 31, 2022
(in millions)		Three months ended
March 31, 2022
(in millions)		Fair value at
  Jan 1,
2022		Total realized/unrealized gains/(losses)Transfers into
level 3		Transfers (out of) level 3Fair value at
March 31, 2022		Change in unrealized gains/(losses) related
to financial instruments held at March 31, 2022
Purchases(f)(g)
Sales
Settlements(h)
Assets:(a)
Assets:(a)
Assets:(a)
Trading assets:Trading assets:Trading assets:
Debt instruments:Debt instruments:Debt instruments:
Mortgage-backed securities:Mortgage-backed securities:Mortgage-backed securities:
U.S. GSEs and government agenciesU.S. GSEs and government agencies$397 $(33)$1 $(8)$(28)$1 $(1)$329 $(34)U.S. GSEs and government agencies$265 $27 $22 $(7)$(21)$— $— $286 $26 
Residential – nonagencyResidential – nonagency32 0 6 (21)(1)0 0 16 0 Residential – nonagency28 — — — (11)— (7)10 — 
Commercial – nonagencyCommercial – nonagency2 0 11 0 (3)0 0 10 1 Commercial – nonagency10 — — — — — — 10 — 
Total mortgage-backed securitiesTotal mortgage-backed securities431 (33)18 (29)(32)1 (1)355 (33)Total mortgage-backed securities303 27 22 (7)(32)— (7)306 26 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities8 0 0 0 0 0 0 8 0 Obligations of U.S. states and municipalities7 — — — — — — 7 — 
Non-U.S. government debt securitiesNon-U.S. government debt securities177 1 84 (79)0 0 0 183 (1)Non-U.S. government debt securities81 (33)228 (180)— 37 — 133 (33)
Corporate debt securitiesCorporate debt securities370 30 228 (154)0 28 (15)487 30 Corporate debt securities332 (19)61 (59)(37)41 (26)293 (20)
LoansLoans832 (1)294 (85)(125)85 (205)795 1 Loans708 (4)297 (98)(7)271 (118)1,049 (4)
Asset-backed securitiesAsset-backed securities54 8 10 (36)(1)0 0 35 1 Asset-backed securities26 — 1 — — 4 (3)28 — 
Total debt instrumentsTotal debt instruments1,872 5 634 (383)(158)114 (221)1,863 (2)Total debt instruments1,457 (29)609 (344)(76)353 (154)1,816 (31)
Equity securitiesEquity securities688 8 23 (27)0 24 (26)690 15 Equity securities662 (813)223 (240)— 853 (22)663 (760)
OtherOther122 7 36 0 (26)3 (95)47 19 Other160 1 20 — (5)— (1)175 16 
Total trading assets – debt and equity instrumentsTotal trading assets – debt and equity instruments2,682 20 (c)693 (410)(184)141 (342)2,600 32 (c)Total trading assets – debt and equity instruments2,279 (841)(c)852 (584)(81)1,206 (177)2,654 (775)(c)
Net derivative receivables:(b)
Net derivative receivables:(b)
Net derivative receivables:(b)
Interest rateInterest rate149 524 18 (9)(657)(2)(45)(22)198 Interest rate(16)233 126 (94)151 (27)(6)367 422 
CreditCredit(4)(34)1 (2)17 (6)11 (17)(13)Credit74 67 4 (4)(96)(3)2 44 66 
Foreign exchangeForeign exchange(539)2 37 (48)(12)1 (24)(583)(104)Foreign exchange(419)345 132 (24)70 (6)(22)76 364 
EquityEquity(3,834)(941)281 (407)600 (91)(544)(4,936)(942)Equity(3,626)730 498 (559)443 (331)262 (2,583)838 
CommodityCommodity(911)(347)6 (81)165 0 1 (1,167)(198)Commodity(907)422 50 (137)156 — 2 (414)467 
Total net derivative receivablesTotal net derivative receivables(5,139)(796)(c)343 (547)113 (98)(601)(6,725)(1,059)(c)Total net derivative receivables(4,894)1,797 (c)810 (818)724 (367)238 (2,510)2,157 (c)
Available-for-sale securities:Available-for-sale securities:
Mortgage-backed securitiesMortgage-backed securities— — — — — — — — — 
Corporate debt securitiesCorporate debt securities161 27 17 — — — — 205 27 
Total available-for-sale securitiesTotal available-for-sale securities161 27 (d)17 — — — — 205 27 (d)
LoansLoans1,823 7 (c)240 (135)(318)445 (328)1,734 (11)(c)Loans1,933 98 (c)121 (5)(281)390 (184)2,072 156 (c)
Mortgage servicing rightsMortgage servicing rights4,470 (528)(d)814 (25)(182)0 0 4,549 (528)(d)Mortgage servicing rights5,494 959 (e)1,130 (57)(232)— — 7,294 959 (e)
Other assetsOther assets511 31 (c)4 0 (27)0 (1)518 35 (c)Other assets306 9 (c)41 — (17)2 — 341 9 (c)
Fair value measurements using significant unobservable inputsFair value measurements using significant unobservable inputs
Three months ended
June 30, 2021
(in millions)		Fair value at
  April 1,
2021		Total realized/unrealized (gains)/lossesTransfers into
level 3		Transfers (out of) level 3Fair value at
June 30, 2021		Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2021
PurchasesSalesIssuances
Settlements(g)
Three months ended
March 31, 2022
(in millions)		Three months ended
March 31, 2022
(in millions)		Fair value at
  Jan 1,
2022		Total realized/unrealized (gains)/lossesTransfers into
level 3		Transfers (out of) level 3Fair value at
March 31, 2022		Change in unrealized (gains)/losses related
to financial instruments held at March 31, 2022
PurchasesSalesIssuances
Settlements(h)
Liabilities:(a)
Liabilities:(a)
Liabilities:(a)
DepositsDeposits$2,652 $47 (c)(e)$0 $0 $150 $(93)$1 $(73)$2,684 $47 (c)(e)Deposits$2,317 $(142)(c)(f)$— $— $108 $(48)$— $(114)$2,121 $(143)(c)(f)
Short-term borrowingsShort-term borrowings3,664 (283)(c)(e)0 0 1,395 (1,706)9 (4)3,075 35 (c)(e)Short-term borrowings2,481 (401)(c)(f)— — 1,423 (1,347)1 (11)2,146 (153)(c)(f)
Trading liabilities – debt and equity instrumentsTrading liabilities – debt and equity instruments60 (1)(c)(27)13 0 0 0 (9)36 0 

Trading liabilities – debt and equity instruments30 (17)(c)(14)30 — — 14 (2)41 31 (c)
Accounts payable and other liabilitiesAccounts payable and other liabilities61 (9)(c)0 0 0 0 0 (1)51 (8)(c)Accounts payable and other liabilities69 (4)(c)— 42 — — 1 — 108 (4)(c)
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs— — 

— — — — — — — — 

Long-term debtLong-term debt22,575 714 (c)(e)0 0 3,469 (3,089)7 (149)23,527 708 (c)(e)Long-term debt24,374 (1,668)(c)(f)— — 4,050 (2,476)263 (149)24,394 (1,575)(c)(f)
10192

Fair value measurements using significant unobservable inputs
Three months ended
June 30, 2020
(in millions)		Fair value at
April 1,
2020		Total realized/unrealized gains/(losses)Transfers into
level 3		Transfers (out of) level 3Fair value at
June 30, 2020		Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2020
Purchases(f)
Sales
Settlements(g)
Assets:(a)
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies$519 $(10)$5 $(5)$(40)$0 $0 $469 $(8)
Residential – nonagency24 0 2 (2)(1)0 0 23 0 
Commercial – nonagency3 0 0 0 0 0 (1)2 0 
Total mortgage-backed securities546 (10)7 (7)(41)0 (1)494 (8)
Obligations of U.S. states and municipalities9 0 0 0 (1)0 0 8 0 
Non-U.S. government debt securities175 16 49 (68)(5)0 0 167 14 
Corporate debt securities953 0 69 (56)(9)65 (76)946 3 
Loans1,386 4 92 (97)(93)39 (426)905 5 
Asset-backed securities52 (5)1 0 (2)0 (7)39 1 
Total debt instruments3,121 5 218 (228)(151)104 (510)2,559 15 
Equity securities213 (65)14 (1)0 73 (43)191 (44)
Other221 165 1 0 (9)2 (1)379 184 
Total trading assets – debt and equity instruments3,555 105 (c)233 (229)(160)179 (554)3,129 155 (c)
Net derivative receivables:(b)
Interest rate(136)753 21 (17)(622)

(180)77 (104)447 
Credit(111)(46)30 (6)16 11 (31)(137)(41)
Foreign exchange(927)182 1 (5)123 8 23 (595)(249)
Equity(826)(1,036)

530 (541)

(54)

99 (208)

(2,036)(1,215)
Commodity(425)140 7 (13)9 2 (17)(297)179 
Total net derivative receivables(2,425)(7)(c)589 (582)

(528)

(60)(156)

(3,169)(879)(c)
Available-for-sale securities:
Mortgage-backed securities0 0 

0 0 

0 

0 0 

0 0 
Total available-for-sale securities0 0 

0 0 0 0 0 0 0 

Loans2,085 (87)(c)62 (1)(345)482 (322)1,874 (86)(c)
Mortgage servicing rights3,267 (111)(d)169 2 (247)0 0 3,080 (111)(d)
Other assets582 57 (c)48 0 (26)40 0 701 57 (c)
Fair value measurements using significant unobservable inputs
Three months ended
June 30, 2020
(in millions)		Fair value at
April 1,
2020		Total realized/unrealized (gains)/lossesTransfers into
level 3		Transfers (out of) level 3Fair value at
June 30, 2020		Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2020
PurchasesSalesIssuances
Settlements(g)
Liabilities:(a)
Deposits$3,179 $194 (c)(e)$0 $0 $80 $(256)$261 $(241)$3,217 $160 (c)(e)
Short-term borrowings2,039 98 (c)(e)0 0 925 (747)12 (22)2,305 85 (c)(e)
Trading liabilities – debt and equity instruments61 0 

(1)0 0 (5)7 (3)59 0 

Accounts payable and other liabilities15 4 (c)0 32 0 0 40 0 91 3 (c)
Beneficial interests issued by consolidated VIEs0 0 

0 0 0 0 0 0 0 0 

Long-term debt20,141 2,705 (c)(e)0 0 1,600 (1,809)

608 (517)22,728 

2,194 (c)(e)
102

Fair value measurements using significant unobservable inputs
Six months ended
June 30, 2021
(in millions)		Fair value at
January 1,
2021		Total realized/unrealized gains/(losses)Transfers into
level 3		Transfers (out of) level 3Fair value at
June 30, 2021		Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2021
Purchases(f)
Sales
Settlements(g)
Assets:(a)
Trading assets:
Debt instruments:
Mortgage-backed securities:
U.S. GSEs and government agencies$449 $(10)$7 $(56)$(61)$1 $(1)$329 $(12)
Residential – nonagency28 1 15 (24)(3)0 (1)16 0 
Commercial – nonagency3 0 11 (1)(3)0 0 10 0 
Total mortgage-backed securities480 (9)33 (81)(67)1 (2)355 (12)
Obligations of U.S. states and municipalities8 0 0 0 0 0 0 8 0 
Non-U.S. government debt securities182 (8)202 (186)(7)0 0 183 (7)
Corporate debt securities507 15 319 (300)0 113 (167)487 14 
Loans893 6 566 (237)(126)175 (482)795 3 
Asset-backed securities28 7 38 (39)(1)2 0 35 7 
Total debt instruments2,098 11 1,158 (843)(201)291 (651)1,863 5 
Equity securities476 3 253 (70)0 78 (50)690 13 
Other49 48 101 0 (55)3 (99)47 28 
Total trading assets – debt and equity instruments2,623 62 (c)1,512 (913)(256)372 (800)2,600 46 (c)
Net derivative receivables:(b)
Interest rate258 969 71 (102)(1,191)

55 (82)(22)233 
Credit(224)149 2 (4)44 (9)25 (17)134 
Foreign exchange(434)(198)39 (54)99 11 (46)(583)32 
Equity(3,862)(918)

475 (1,245)

726 

19 (131)

(4,936)(1,258)
Commodity(731)(593)10 (294)444 (1)(2)(1,167)(554)
Total net derivative receivables(4,993)(591)(c)597 (1,699)

122 

75 (236)

(6,725)(1,413)(c)
Loans2,305 (66)(c)307 (325)(519)600 (568)1,734 (72)(c)
Mortgage servicing rights3,276 269 (d)1,397 (24)(369)0 0 4,549 269 (d)
Other assets538 44 (c)7 (18)(52)0 (1)518 63 (c)
Fair value measurements using significant unobservable inputs
Six months ended
June 30, 2021
(in millions)		Fair value at
January 1,
2021		Total realized/unrealized (gains)/lossesTransfers into
level 3		Transfers (out of) level 3Fair value at
June 30, 2021		Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2021
PurchasesSalesIssuances
Settlements(g)
Liabilities:(a)
Deposits$2,913 $(56)(c)(e)$0 $0 $219 $(188)$2 $(206)$2,684 $(56)(c)(e)
Short-term borrowings2,420 (396)(c)(e)0 0 4,313 (3,212)9 (59)3,075 18 (c)(e)
Trading liabilities – debt and equity instruments51 (4)(c)(92)34 0 0 59 (12)36 10 (c)
Accounts payable and other liabilities68 (10)(c)0 1 0 0 0 (8)51 (10)(c)
Long-term debt23,397 406 (c)(e)0 0 6,934 (6,738)

18 (490)23,527 

305 (c)(e)
103

Fair value measurements using significant unobservable inputsFair value measurements using significant unobservable inputs
Six months ended
June 30, 2020
(in millions)		Fair value at
January 1,
2020		Total realized/unrealized gains/(losses)Transfers into
level 3		Transfers (out of) level 3Fair value at
June 30, 2020		Change in unrealized gains/(losses) related
to financial instruments held at June 30, 2020
Purchases(f)(g)
Sales
Settlements(g)
Three months ended
March 31, 2021
(in millions)		Three months ended
March 31, 2021
(in millions)		Fair value at
Jan 1,
2021		Total realized/unrealized gains/(losses)Transfers into
level 3		Transfers (out of) level 3Fair value at
March 31, 2021		Change in unrealized gains/(losses) related
to financial instruments held at March 31, 2021
Purchases(f)(g)
Sales
Settlements(h)
Assets:(a)
Assets:(a)
Assets:(a)
Trading assets:Trading assets:Trading assets:
Debt instruments:Debt instruments:Debt instruments:
Mortgage-backed securities:Mortgage-backed securities:Mortgage-backed securities:
U.S. GSEs and government agenciesU.S. GSEs and government agencies$797 $(149)$24 $(121)$(82)$0 $0 $469 $(139)U.S. GSEs and government agencies$449 $23 $6 $(48)$(33)0$— $397 $22 
Residential – nonagencyResidential – nonagency23 (1)4 (2)(1)0 0 23 2 Residential – nonagency28 1 9 (3)(2)0(1)32 — 
Commercial – nonagencyCommercial – nonagency4 0 1 0 (1)1 (3)2 4 Commercial – nonagency3 — — (1)— 0— 2 — 
Total mortgage-backed securitiesTotal mortgage-backed securities824 (150)29 (123)(84)1 (3)494 (133)Total mortgage-backed securities480 24 15 (52)(35)— (1)431 22 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities10 0 0 (1)(1)0 0 8 0 Obligations of U.S. states and municipalities8 — — — — — — 8 — 
Non-U.S. government debt securitiesNon-U.S. government debt securities155 4 139 (125)(5)0 (1)167 (6)Non-U.S. government debt securities182 (9)118 (107)(7)— — 177 (9)
Corporate debt securitiesCorporate debt securities558 (55)361 (98)(9)292 (103)946 (11)Corporate debt securities507 (15)91 (146)— 85 (152)370 (14)
LoansLoans673 (94)589 (227)(109)607 (534)905 (67)Loans893 7 272 (152)(1)90 (277)832 8 
Asset-backed securitiesAsset-backed securities37 (7)37 (15)(3)0 (10)39 0 Asset-backed securities28 (1)28 (3)— 2 — 54 (1)
Total debt instrumentsTotal debt instruments2,257 (302)1,155 (589)(211)900 (651)2,559 (217)Total debt instruments2,098 6 524 (460)(43)177 (430)1,872 6 
Equity securitiesEquity securities196 (103)24 (5)0 155 (76)191 (79)Equity securities476 (5)230 (43)— 54 (24)688 3 
OtherOther232 164 10 (5)(21)2 (3)379 184 Other49 41 65 — (29)— (4)122 36 
Total trading assets – debt and equity instrumentsTotal trading assets – debt and equity instruments2,685 (241)(c)1,189 (599)(232)1,057 (730)3,129 (112)(c)Total trading assets – debt and equity instruments2,623 42 (c)819 (503)(72)231 (458)2,682 45 (c)
Net derivative receivables:(b)
Net derivative receivables:(b)
Net derivative receivables:(b)
Interest rateInterest rate(332)1,395 87 (67)(863)

(352)28 (104)286 Interest rate258 445 53 (93)(534)

57 (37)149 313 
CreditCredit(139)62 48 (134)(17)71 (28)(137)28 Credit(224)183 1 (2)27 (3)14 (4)168 
Foreign exchangeForeign exchange(607)(157)39 (9)109 8 22 (595)(118)Foreign exchange(434)(200)2 (6)111 10 (22)(539)(214)
EquityEquity(3,395)2,001 

589 (1,089)

529 

(557)(114)

(2,036)2,619 Equity(3,862)23 

194 (838)

126 

110 413 

(3,834)(213)
CommodityCommodity(16)(263)11 (28)18 (4)(15)(297)(276)Commodity(731)(246)4 (213)279 (1)(3)(911)(145)
Total net derivative receivablesTotal net derivative receivables(4,489)3,038 (c)774 (1,327)

(224)

(834)(107)

(3,169)2,539 (c)Total net derivative receivables(4,993)205 (c)254 (1,152)

9 

173 365 

(5,139)(91)(c)
Available-for-sale securities:Available-for-sale securities:Available-for-sale securities:
Mortgage-backed securitiesMortgage-backed securities1 0 

0 0 

(1)

0 0 

0 0 Mortgage-backed securities— — 

— — 

— 

— — 

— — 
Corporate debt securitiesCorporate debt securities— — — — — — — — — 
Total available-for-sale securitiesTotal available-for-sale securities1 0 

0 0 (1)0 0 0 0 

Total available-for-sale securities— — (d)— — — — — — — (d)
LoansLoans516 (151)(c)253 (33)(354)1,996 (353)1,874 (141)(c)Loans2,305 (73)(c)67 (190)(201)155 (240)1,823 (112)(c)
Mortgage servicing rightsMortgage servicing rights4,699 (1,493)(d)442 (73)(495)0 0 3,080 (1,493)(d)Mortgage servicing rights3,276 797 (e)583 1 (187)— — 4,470 797 (e)
Other assetsOther assets917 (35)(c)61 (28)(254)40 0 701 (37)(c)Other assets538 13 (c)3 (18)(25)— — 511 12 (c)
Fair value measurements using significant unobservable inputsFair value measurements using significant unobservable inputs
Six months ended
June 30, 2020
(in millions)		Fair value at
January 1,
2020		Total realized/unrealized (gains)/lossesTransfers into
level 3		Transfers (out of) level 3Fair value at
June 30, 2020		Change in unrealized (gains)/losses related
to financial instruments held at June 30, 2020
PurchasesSalesIssuances
Settlements(g)
Three months ended
March 31, 2021
(in millions)		Three months ended
March 31, 2021
(in millions)		Fair value at
Jan 1,
2021		Total realized/unrealized (gains)/lossesTransfers into
level 3		Transfers (out of) level 3Fair value at
March 31, 2021		Change in unrealized (gains)/losses related
to financial instruments held at March 31, 2021
PurchasesSalesIssuances
Settlements(h)
Liabilities:(a)
Liabilities:(a)
Liabilities:(a)
DepositsDeposits$3,360 $45 (c)(e)$0 $0 $466 $(428)$265 $(491)$3,217 $58 (c)(e)Deposits$2,913 $(103)(c)(f)$— $— $69 $(95)$1 $(133)$2,652 $(105)(c)(f)
Short-term borrowingsShort-term borrowings1,674 (247)(c)(e)0 0 2,540 (1,676)52 (38)2,305 (37)(c)(e)Short-term borrowings2,420 (113)(c)(f)— — 2,918 (1,506)— (55)3,664 (27)(c)(f)
Trading liabilities – debt and equity instrumentsTrading liabilities – debt and equity instruments41 3 (c)(76)7 0 (5)93 (4)59 2 (c)Trading liabilities – debt and equity instruments51 (3)(c)(65)21 — — 59 (3)60 — 

Accounts payable and other liabilitiesAccounts payable and other liabilities45 (4)(c)(23)33 0 0 40 0 91 (4)(c)Accounts payable and other liabilities68 (1)(c)— 1 — — — (7)61 (1)(c)
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs— — 

— — — — — — — — 

Long-term debtLong-term debt23,339 (1,405)(c)(e)0 0 6,207 (5,358)

978 (1,033)22,728 

(476)(c)(e)Long-term debt23,397 (308)(c)(f)— — 3,465 (3,649)

11 (341)22,575 

(324)(c)(f)
(a)Level 3 assets at fair value as a percentage of total Firm assets at fair value (including assets measured at fair value on a nonrecurring basis) were 1%2% and 2% at both June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively. Level 3 liabilities at fair value as a percentage of total Firm liabilities at fair value (including liabilities measured at fair value on a nonrecurring basis) were 8%9% and 9%10% at June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively.
93

(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.
104

(d)
Realized gains/(losses) on AFS securities 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 months ended March 31, 2022 and 2021, respectively. Unrealized gains/(losses) recorded on AFS securities in OCI were $27 million and zero for the three months ended March 31, 2022 and 2021, respectively.
(d)(e)Changes in fair value for MSRs are reported in mortgage fees and related income.
(e)(f)Realized (gains)/losses due to DVA for fair value option elected liabilities are reported in principal transactions revenue, and were not material for the three and six months ended June 30, 2021March 31, 2022 and 2020.2021. Unrealized (gains)/losses are reported in OCI, and were $5$(229) million and $940$(22) million for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $(17) million and $(199) million for the six months ended June 30, 2021 and 2020, respectively.
(f)(g)Loan originations are included in purchases.
(g)(h)Includes financial assets and liabilities that have matured, been partially or fully repaid, impacts of modifications, deconsolidations associated with beneficial interests in VIEs and other items.
Level 3 analysis
Consolidated balance sheets changes
The following describes significant changes to level 3 assets since December 31, 2020,2021, for those items measured at fair value on a recurring basis. Refer to Assets and liabilities measured at fair value on a nonrecurring basis on page 10795 for further information on changes impacting items measured at fair value on a nonrecurring basis.
Three and six months ended June 30, 2021March 31, 2022
Level 3 assets were $15.9$22.0 billion at June 30, 2021, reflecting a decrease of $1.5 billion from March 31, 2021 and a decrease2022, reflecting an increase of $526 million$4.5 billion from December 31, 2020.2021.
The decreaseincrease for the three months ended June 30, 2021March 31, 2022 was largely driven by a $979 million decrease in gross equity derivative receivables due to settlements and transfers net of gains.
The decrease for the six months ended June 30, 2021 was driven by:
•$458 million decrease1.0 billion increase in gross interest rate derivative receivables and $490 million decrease in gross equity derivative receivables due to settlements and transfers net of gains, andgains.
•$571 million decrease in non-trading loans predominantly due to settlements,
predominantly offset by
•$1.31.8 billion increase in MSRs.
Refer to Note 14 for information on MSRs.
Refer to the sections below for additional information.
Transfers between levels for instruments carried at fair value on a recurring basis
For the three and six months ended June 30, 2021, there were no significant transfers from level 2 into level 3.
For the three months ended June 30, 2021, significant transfers from level 3 into level 2 included the following:
•$1.0 billion of gross equity derivative receivables as a result of an increase in observability and a decrease in the significance of unobservable inputs.
For the six months ended June 30, 2021, significant transfers from level 3 into level 2 included the following:
•$800 million of total debt and equity instruments, largely trading loans, driven by an increase in observability.
•$1.3 billion and $1.1 billion of gross equity derivative receivables and gross equity derivative payables, respectively, as a result of an increase in observability and a decrease in the significance of unobservable inputs.
For the three months ended June 30, 2020,March 31, 2022, significant transfers from level 2 into level 3 included the following:
•$657 million1.2 billion of total debt and equity instruments, predominantly trading loans, driven by a decrease in observability.
•$802largely due to equity securities of $853 million of gross equity derivative receivables and $703 million of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.
•$608 million of long-term debt driven by a decrease in observability and an increase in the significanceas a result of unobservable inputs forrestricted access to certain structured notes.markets.
For the sixthree months ended June 30, 2020,March 31, 2022, there were no significant transfers from level 3 into level 2.
For the three months ended March 31, 2021, there were no significant transfers from level 2 into level 3 included the following:
•$2.8 billion of total debt and equity instruments, predominantly trading loans, driven by a decrease in observability.
•$1.8 billion of gross equity derivative receivables, $776 million of gross interest rate derivative payables and $2.4 billion of gross equity derivative payables as a result of a decrease in observability and an increase in the significance of unobservable inputs.
•$978 million of long-term debt driven by a decrease in observability and an increase in the significance of unobservable inputs for certain structured notes.
For the three and six months ended June 30, 2020, significant transfersor from level 3 into level 2 included the following:
•$876 million and $1.1 billion, respectively, of total debt and equity instruments, predominantly trading loans, driven by an increase in observability.
•$854 million and $1.1 billion, respectively, of gross equity derivative receivables and $646 million and $965 million, respectively, of gross equity derivative payables as a result of an increase in observability and a decrease in the significance of unobservable inputs.
•$517 million and $1.0 billion, respectively, of long-term debt driven by an increase in observability and a decrease in the significance of unobservable inputs for certain structured notes.2.
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.

105

Gains and losses
The following describes significant components of total realized/unrealized gains/(losses) for instruments measured at fair value on a recurring basis for the periods indicated. These amounts exclude any effects of the Firm’s risk management activities where the financial instruments are classified as level 1 and 2 of the fair value hierarchy. Refer to Changes in level 3 recurring fair value measurements rollforward tables on pages 100-10691-94 for further information on these instruments.
Three months ended June 30, 2021March 31, 2022
•$1.32.0 billion of net lossesgains on assets, predominantly driven by lossesgains in net equity derivative receivables due to market movements and losses in MSRs reflecting fasterlower prepayment speeds on lowerhigher rates. Refer to Note 14 for information on MSRs.
•$468 million2.2 billion of net lossesgains on liabilities, largely driven by losses in long-term debt partially offset by gains in short-term borrowings,long-term debt due to market movements.
Three months ended June 30, 2020March 31, 2021
•$43984 million of net lossesgains on assets, primarily driven by market movements in net derivative receivables.MSRs reflecting lower prepayment speeds on higher rates.
•$3.0 billion528 million of net lossesgains on liabilities, predominantlylargely driven by market movements in long-term debt.
Six months ended June 30, 2021
•$282 million of net losses on assets, driven by losses in net derivative receivables due to market movements largely offset by gains in MSRs reflecting lower prepayment speeds on higher rates. Refer to Note 14 for information on MSRs.
Six months ended June 30, 2020
•$1.1 billion of net gains on assets, driven by gains in net interest rate derivative receivables and net equity derivative receivables due to market movements largely offset by losses in MSRs reflecting faster prepayment speeds on lower rates. Refer to Note 14 for additional information on MSRs.
•$1.6 billion of net gains on liabilities, predominantly driven by market movements in long-term debt.
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,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
Credit and funding adjustments:Credit and funding adjustments:Credit and funding adjustments:
Derivatives CVADerivatives CVA$43 $207 $283 $(718)Derivatives CVA$(312)$240 
Derivatives FVADerivatives FVA(45)676 61 (345)Derivatives FVA(58)105 
Refer to Note 2 of JPMorgan Chase’s 20202021 Form 10-K for further information about both credit and funding adjustments, as well as information about valuation adjustments on fair value option elected liabilities.

10694

Assets and liabilities measured at fair value on a nonrecurring basis
The following tables present the assets and liabilities held as of June 30,March 31, 2022 and 2021 and 2020, for which nonrecurring fair value adjustments were recorded during the sixthree months ended June 30,March 31, 2022 and 2021 and 2020, by major product category and fair value hierarchy.
Fair value hierarchyTotal fair valueFair value hierarchyTotal fair value
June 30, 2021 (in millions)Level 1Level 2Level 3
March 31, 2022 (in millions)March 31, 2022 (in millions)Level 1Level 2Level 3Total fair value
LoansLoans$0 $2,048 

$329 (b)$2,377 Loans$— $874 

$417 (b)
Other assets(a)
Other assets(a)
0 11 831 842 
Other assets(a)
— 15 802 817 
Total assets measured at fair value on a nonrecurring basisTotal assets measured at fair value on a nonrecurring basis$0 $2,059 $1,160 $3,219 Total assets measured at fair value on a nonrecurring basis$— $889 $1,219 $2,108 
Accounts payable and other liabilitiesAccounts payable and other liabilities0 0 5  5 Accounts payable and other liabilities— — 28  28 
Total liabilities measured at fair value on a nonrecurring basisTotal liabilities measured at fair value on a nonrecurring basis$0 $0 $5 $5 Total liabilities measured at fair value on a nonrecurring basis$— $— $28 $28 
Fair value hierarchyTotal fair valueFair value hierarchyTotal fair value
June 30, 2020 (in millions)Level 1Level 2Level 3
March 31, 2021 (in millions)March 31, 2021 (in millions)Level 1Level 2Level 3Total fair value
LoansLoans$0 $1,793 

$823 $2,616 Loans$— $1,857 

$303 
Other assetsOther assets0 4 392 

396 Other assets— 12 370 

382 
Total assets measured at fair value on a nonrecurring basisTotal assets measured at fair value on a nonrecurring basis$0 $1,797 $1,215 $3,012 Total assets measured at fair value on a nonrecurring basis$— $1,869 $673 $2,542 
Accounts payable and other liabilitiesAccounts payable and other liabilities0 0 95 

95 Accounts payable and other liabilities— — 14 

14 
Total liabilities measured at fair value on a nonrecurring basisTotal liabilities measured at fair value on a nonrecurring basis$0 $0 $95 $95 Total liabilities measured at fair value on a nonrecurring basis$— $— $14 $14 
(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 $831$802 million in level 3 assets measured at fair value on a nonrecurring basis as of June 30, 2021,March 31, 2022, $754 million related to equity securities adjusted based on the measurement alternative. These equity securities are classified as level 3 due to the infrequency of the observable prices and/or the restrictions on the shares.
(b)Of the $329$417 million in level 3 assets measured at fair value on a nonrecurring basis as of June 30, 2021, $179March 31, 2022, $34 million related to residential real estate loans carried at the net realizable value of the underlying collateral (e.g., collateral-dependent loans). These amounts are classified as level 3 as they are valued using information from broker’s price opinions, appraisals and automated valuation models and discounted based upon the Firm’s experience with actual liquidation values. These discounts ranged from 12%13% to 45%51% with a weighted average of 26%24%.
Nonrecurring fair value changes
The following table presents the total change in value of assets and liabilities for which fair value adjustments have been recognized for the three and six months ended June 30,March 31, 2022 and 2021 and 2020, related to assets and liabilities held at those dates.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
LoansLoans$(11) $(39)

$(32)

$(303)

Loans$(18) $(33)
Other assets(a)
Other assets(a)
92  (39)

93 (206)
Other assets(a)
360  2 
Accounts payable and other liabilitiesAccounts payable and other liabilities7  465 

6 (95)Accounts payable and other liabilities(24) (3)
Total nonrecurring fair value gains/(losses)Total nonrecurring fair value gains/(losses)$88 $387 $67 $(604)Total nonrecurring fair value gains/(losses)$318 $(34)
(a)Included $102$376 million and $(4)$6 million for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $107 million and $(158) million for the six months ended June 30, 2021 and 2020, respectively, of net gains/(losses) as a result of the measurement alternative.
Refer to Note 11 for further information about the measurement of collateral-dependent loans.

10795

Equity securities without readily determinable fair values
The Firm measures certain equity securities without readily determinable fair values at cost less impairment (if any), plus or minus observable price changes from an identical or similar investment of the same issuer (i.e., measurement alternative), with such changes recognized in other income.
In its determination of the new carrying values upon observable price changes, the Firm may adjust the prices if deemed necessary to arrive at the Firm’s estimated fair values. Such adjustments may include adjustments to reflect the different rights and obligations of similar securities, and other adjustments that are consistent with the Firm’s valuation techniques for private equity direct investments.
The following table presents the carrying value of equity securities without readily determinable fair values held as of June 30,March 31, 2022 and 2021 and 2020, 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 endedSix months ended Three months ended
June 30June 30 March 31
As of or for the period ended,As of or for the period ended,As of or for the period ended,
(in millions)(in millions)2021202020212020(in millions)20222021
Other assetsOther assetsOther assets
Carrying value(a)
Carrying value(a)
$2,798 $2,620 $2,798 $2,620 
Carrying value(a)
$4,131 $2,302 
Upward carrying value changes(b)
Upward carrying value changes(b)
109 4 

116 13

Upward carrying value changes(b)
387 7 
Downward carrying value changes/impairment(c)
Downward carrying value changes/impairment(c)
(7)(9)(9)(171)
Downward carrying value changes/impairment(c)
(11)(1)
(a)The carrying value as of December 31, 20202021 was $2.4$3.6 billion. The period-end carrying values reflect cumulative purchases and sales in addition to upward and downward carrying value changes.
(b)The cumulative upward carrying value changes between January 1, 2018 and June 30, 2021March 31, 2022 were $727 million.$1.4 billion.
(c)The cumulative downward carrying value changes/impairment between January 1, 2018 and June 30, 2021March 31, 2022 were $(327)$(380) million.
Included in other assets above is the Firm’s interest in approximately 40 million Visa Class B common shares, recorded at a nominal carrying value. These shares are subject to certain transfer restrictions currently and will be convertible into Visa Class A common shares upon final resolution of certain litigation matters involving Visa. The conversion rate of Visa Class B common shares into Visa Class A common shares is 1.62281.6181 at June 30, 2021,March 31, 2022, and may be adjusted by Visa depending on developments related to the litigation matters.
10896

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, 2021,March 31, 2022, and December 31, 2020,2021, 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.
June 30, 2021December 31, 2020March 31, 2022December 31, 2021
Estimated fair value hierarchyEstimated fair value hierarchyEstimated fair value hierarchyEstimated fair value hierarchy
(in billions)(in billions)Carrying
value		Level 1Level 2Level 3Total estimated
fair value		Carrying
value		Level 1Level 2Level 3Total estimated
fair value		(in billions)Carrying
value		Level 1Level 2Level 3Total estimated
fair value		Carrying
value		Level 1Level 2Level 3Total estimated
fair value
Financial assetsFinancial assetsFinancial assets
Cash and due from banksCash and due from banks$26.6 $26.6 $0 $0 $26.6 $24.9 $24.9 $0 $0 $24.9 Cash and due from banks$26.2 $26.2 $— $— $26.2 $26.4 $26.4 $— $— $26.4 
Deposits with banksDeposits with banks678.8 678.8 0 0 678.8 502.7 502.7 0 0 502.7 Deposits with banks728.4 728.4 — — 728.4 714.4 714.4 — — 714.4 
Accrued interest and accounts receivableAccrued interest and accounts receivable124.3 0 124.2 0.1 124.3 89.4 0 89.3 0.1 89.4 Accrued interest and accounts receivable151.4 — 151.3 0.1 151.4 102.1 — 102.0 0.1 102.1 
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements6.4 0 6.4 0 6.4 58.3 0 58.3 0 58.3 Federal funds sold and securities purchased under resale agreements3.5 — 3.5 — 3.5 9.0 — 9.0 — 9.0 
Securities borrowedSecurities borrowed116.4 0 116.4 0 116.4 107.7 0 107.7 0 107.7 Securities borrowed137.6 — 137.6 — 137.6 124.6 — 124.6 — 124.6 
Investment securities, held-to-maturityInvestment securities, held-to-maturity341.5 181.9 161.0 0 342.9 201.8 53.2 152.3 0 205.5 Investment securities, held-to-maturity366.6 177.5 173.0 — 350.5 363.7 183.3 179.3 — 362.6 
Loans, net of allowance for loan losses(a)
Loans, net of allowance for loan losses(a)
959.7 0 208.9 772.8 981.7 940.1 0 210.9 755.6 966.5 
Loans, net of allowance for loan losses(a)
1,007.6 — 198.9 814.4 1,013.3 1,002.5 — 202.1 821.1 1,023.2 
OtherOther94.6 0 93.1 1.6 94.7 81.8 0 80.0 1.9 81.9 Other104.2 — 102.0 2.3 104.3 98.7 — 97.4 1.4 98.8 
Financial liabilitiesFinancial liabilitiesFinancial liabilities
DepositsDeposits$2,291.2 $0 $2,291.2 $0 $2,291.2 $2,129.8 $0 $2,128.9 $0 $2,128.9 Deposits$2,550.8 $— $2,550.8 $— $2,550.8 $2,451.0 $— $2,451.0 $— $2,451.0 
Federal funds purchased and securities loaned or sold under repurchase agreementsFederal funds purchased and securities loaned or sold under repurchase agreements69.6 0 69.6 0 69.6 59.5 0 59.5 0 59.5 Federal funds purchased and securities loaned or sold under repurchase agreements77.7 — 77.7 — 77.7 67.9 — 67.9 — 67.9 
Short-term borrowingsShort-term borrowings31.9 0 31.9 0 31.9 28.3 0 28.3 0 28.3 Short-term borrowings38.4 — 38.4 — 38.4 33.6 — 33.6 — 33.6 
Accounts payable and other liabilitiesAccounts payable and other liabilities214.5 0 210.3 3.9 214.2 186.6 0 181.9 4.3 186.2 Accounts payable and other liabilities283.6 — 278.0 5.0 283.0 217.6 — 212.1 4.9 217.0 
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs14.3 0 14.4 0 14.4 17.5 0 17.6 0 17.6 Beneficial interests issued by consolidated VIEs10.1 — 10.1 — 10.1 10.7 — 10.8 — 10.8 
Long-term debtLong-term debt224.1 0 228.1 3.3 231.4 204.8 0 209.2 3.2 212.4 Long-term debt222.5 — 221.7 3.1 224.8 226.0 — 229.5 3.1 232.6 
(a)Fair value is typically estimated using a discounted cash flow model that incorporates the characteristics of the underlying loans (including principal, contractual interest rate and contractual fees) and other key inputs, including expected lifetime credit losses, interest rates, prepayment rates, and primary origination or secondary market spreads. For certain loans, the fair value is measured based on the value of the underlying collateral. Carrying value of the loan takes into account the loan’s allowance for loan losses, which represents the loan’s expected credit losses over its remaining expected life. The difference between the estimated fair value and carrying value of a loan is generally attributable to changes in market interest rates, including credit spreads, market liquidity premiums and other factors that affect the fair value of a loan but do not affect its carrying value.
The majority of the Firm’s lending-related commitments are not carried at fair value on a recurring basis on the Consolidated balance sheets. The carrying value and the estimated fair value of these wholesale lending-related commitments were as follows for the periods indicated.
June 30, 2021December 31, 2020March 31, 2022December 31, 2021
Estimated fair value hierarchyEstimated fair value hierarchyEstimated fair value hierarchyEstimated fair value hierarchy
(in billions)(in billions)
Carrying value(a) (b)
Level 1Level 2Level 3Total estimated fair value
Carrying value(a) (b)
Level 1Level 2Level 3Total estimated fair value(in billions)
Carrying value(a) (b)
Level 1Level 2Level 3Total estimated fair value
Carrying value(a) (b)
Level 1Level 2Level 3Total estimated fair value
Wholesale lending-related commitmentsWholesale lending-related commitments$2.8 $0 $0 $3.1 $3.1 $2.2 $0 $0 $2.1 $2.1 Wholesale lending-related commitments$2.3 $— $— $2.9 $2.9 $2.1 $— $— $2.9 $2.9 
(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)Includes the wholesale allowance for lending-related commitments.
The Firm does not estimate the fair value of consumer off-balance sheet lending-related commitments. In many cases, the Firm can reduce or cancel these commitments by providing the borrower notice or, in some cases as permitted by law, without notice. Refer to page 173171 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion of the valuation of lending-related commitments.
10997

Note 3 – Fair value option
The fair value option provides an option to elect fair value as an alternative measurement for selected financial assets, financial liabilities, unrecognized firm commitments, and written loan commitments.
The Firm has elected to measure certain instruments at fair value for several reasons including to mitigate income statement volatility caused by the differences between the measurement basis of elected instruments (e.g., certain instruments that otherwise would be accounted for on an accrual basis) and the associated risk management arrangements that are accounted for on a fair value basis, as well as to better reflect those instruments that are managed on a fair value basis.
The Firm’s election of fair value includes the following instruments:
•Loans purchased or originated as part of securitization warehousing activity, subject to bifurcation accounting, or managed on a fair value basis, including lending-related commitments
•Certain securities financing agreements
•Owned beneficial interests in securitized financial assets that contain embedded credit derivatives, which would otherwise be required to be separately accounted for as a derivative instrument
•Structured notes and other hybrid instruments, which are predominantly financial instruments that contain embedded derivatives, that are issued or transacted as part of client-driven activities
•Certain long-term beneficial interests issued by CIB’s consolidated securitization trusts where the underlying assets are carried at fair value
Changes in fair value under the fair value option election
The following table presents the changes in fair value included in the Consolidated statements of income for the three and six months ended June 30,March 31, 2022 and 2021, and 2020, 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,
20212020
(in millions)Principal transactionsAll other income
Total changes in fair
value recorded (e)
Principal transactionsAll other income
Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreements$(2)$0 $(2)$(299)$0 $(299)
Securities borrowed(27)0 (27)(58)0 (58)
Trading assets:
Debt and equity instruments, excluding loans367 (1)(c)366 1,209 0  1,209 
Loans reported as trading assets:
Changes in instrument-specific credit risk72 0  72 401 0  401 
Other changes in fair value(7)0  (7)0 0  0 
Loans:
Changes in instrument-specific credit risk184 (3)(c)181 (33)38 (c)5 
Other changes in fair value(a)
143 784 (c)927 (4)754 (c)750 
Other assets9 (4)(d)5 17 25 (d)42 
Deposits(a)
(258)0 (258)(362)0 (362)
Federal funds purchased and securities loaned or sold under repurchase agreements(3)0 (3)181 0 181 
Short-term borrowings(a)
(489)0 (489)(631)0 (631)
Trading liabilities(1)0 (1)0 0 0 
Other liabilities1 0 1 (11)0 (11)
Long-term debt(a)(b)
(2,152)0 

(2,152)(3,581)(2)(c)(3,583)
110

Six months ended June 30,Three months ended March 31,
2021202020222021
(in millions)(in millions)Principal transactionsAll other income
Total changes in fair
value recorded (e)
Principal transactionsAll other income
Total changes in fair value recorded (e)
(in millions)Principal transactionsAll other income
Total changes in fair
value recorded (e)
Principal transactionsAll other income
Total changes in fair value recorded (e)
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements$(14)$0 $(14)$244 $0 $244 Federal funds sold and securities purchased under resale agreements$(230)$— $(230)$(12)$— $(12)
Securities borrowedSecurities borrowed(97)0 (97)168 0 168 Securities borrowed(198)— (198)(70)— (70)
Trading assets:Trading assets:Trading assets:
Debt and equity instruments, excluding loansDebt and equity instruments, excluding loans988 (1)(c)987 (1,229)(1)(c)(1,230)Debt and equity instruments, excluding loans344 — 

344 623 (f)— 

623 
Loans reported as trading assets:Loans reported as trading assets:Loans reported as trading assets:
Changes in instrument-specific credit riskChanges in instrument-specific credit risk276 0  276 (255)0  (255)Changes in instrument-specific credit risk(6)—  (6)204 —  204 
Other changes in fair valueOther changes in fair value(8)0  (8)1 0  1 Other changes in fair value(11)—  (11)(1)—  (1)
Loans:Loans:Loans:
Changes in instrument-specific credit riskChanges in instrument-specific credit risk421 (2)(c)419 31 15 (c)46 Changes in instrument-specific credit risk6 12 (c)18 237 1 (c)238 
Other changes in fair value(a)
Other changes in fair value(a)
(107)1,124 (c)1,017 264 1,495 (c)1,759 
Other changes in fair value(a)
(719)(514)(c)(1,233)(250)340 (c)90 
Other assetsOther assets28 (23)(d)5 102 8 (d)110 Other assets11 (3)(d)8 19 (19)(d)— 
Deposits(a)
Deposits(a)
(91)0 (91)(465)0 (465)
Deposits(a)
402 — 402 167 — 167 
Federal funds purchased and securities loaned or sold under repurchase agreementsFederal funds purchased and securities loaned or sold under repurchase agreements31 0 31 (78)0 (78)Federal funds purchased and securities loaned or sold under repurchase agreements82 — 82 34 — 34 
Short-term borrowings(a)
Short-term borrowings(a)
(611)0 (611)1,089 0 1,089 
Short-term borrowings(a)
302 — 302 (122)— (122)
Trading liabilitiesTrading liabilities(1)0 (1)0 0 0 Trading liabilities(66)— (66)— — — 
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs(1)— (1)— — — 
Other liabilitiesOther liabilities2 0 2 (46)0 (46)Other liabilities3 — 3 1 — 1 
Long-term debt(a)(b)
Long-term debt(a)(b)
(905)(5)(c)(d)(910)600 3 (c)603 
Long-term debt(a)(b)
3,960 19 (c)(d)3,979 1,247 (5)(c)(d)1,242 
(a)Unrealized gains/(losses) due to instrument-specific credit risk (DVA) for liabilities for which the fair value option has been elected are recorded in OCI, while realized gains/(losses) are recorded in principal transactions revenue. Realized gains/(losses) due to instrument-specific credit risk recorded in principal transactions revenue were 0t material$(8) million and $21$(2) million for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively and $(2) million and $19 million for the six months ended June 30, 2021 and 2020, 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 certain hybrid financial instruments recorded in CIB. Refer to Note 6 for further information regarding interest income and interest expense.
(f)Prior-period amounts have been revised to conform with the current presentation.
111
98

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, 2021,March 31, 2022, and December 31, 2020,2021, for loans, long-term debt and long-term beneficial interests for which the fair value option has been elected.
June 30, 2021December 31, 2020March 31, 2022December 31, 2021
(in millions)(in millions)Contractual principal outstandingFair valueFair value over/(under) contractual principal outstandingContractual principal outstandingFair valueFair value over/(under) contractual principal outstanding(in millions)Contractual principal outstandingFair valueFair value over/(under) contractual principal outstandingContractual principal outstandingFair valueFair value over/(under) contractual principal outstanding
LoansLoansLoans
Nonaccrual loansNonaccrual loansNonaccrual loans
Loans reported as trading assetsLoans reported as trading assets$3,104 $503 $(2,601)$3,386 $555 $(2,831)Loans reported as trading assets$2,988 $493 $(2,495)$3,263 $546 $(2,717)
LoansLoans1,246 1,105 (141)1,867 1,507 (360)Loans1,024 915 (109)918 797 (121)
SubtotalSubtotal4,350 1,608 (2,742)5,253 2,062 (3,191)Subtotal4,012 1,408 (2,604)4,181 1,343 (2,838)
90 or more days past due and government guaranteed90 or more days past due and government guaranteed90 or more days past due and government guaranteed
Loans(a)
Loans(a)
329 315 (14)328 317 (11)
Loans(a)
292 284 (8)293 281 (12)
All other performing loans(b)
All other performing loans(b)
All other performing loans(b)
Loans reported as trading assetsLoans reported as trading assets9,218 7,832 (1,386)7,917 6,439 (1,478)Loans reported as trading assets8,908 7,460 (1,448)8,594 7,528 (1,066)
LoansLoans59,581 60,356 775 42,022 42,650 628 Loans48,378 47,264 (1,114)57,695 57,742 47 
SubtotalSubtotal68,799 68,188 (611)49,939 49,089 (850)Subtotal57,286 54,724 (2,562)66,289 65,270 (1,019)
Total loansTotal loans$73,478 $70,111 $(3,367)$55,520 $51,468 $(4,052)Total loans$61,590 $56,416 $(5,174)$70,763 $66,894 $(3,869)
Long-term debtLong-term debtLong-term debt
Principal-protected debtPrincipal-protected debt$38,013 (d)$36,318 $(1,695)$40,560 (d)$40,526 $(34)Principal-protected debt$35,336 (d)$30,307 $(5,029)$35,957 (d)$33,799 $(2,158)
Nonprincipal-protected debt(c)
Nonprincipal-protected debt(c)
NA39,415 NANA36,291 NA
Nonprincipal-protected debt(c)
NA40,397 NANA41,135 NA
Total long-term debtTotal long-term debtNA$75,733 NANA$76,817 NATotal long-term debtNA$70,704 NANA$74,934 NA
Long-term beneficial interestsLong-term beneficial interestsLong-term beneficial interests
Nonprincipal-protected debt(c)
Nonprincipal-protected debt(c)
NA$84 NANA$41 NA
Nonprincipal-protected debt(c)
NA$11 NANA$12 NA
Total long-term beneficial interestsTotal long-term beneficial interestsNA$84 NANA$41 NATotal long-term beneficial interestsNA$11 NANA$12 NA
(a)These balances are excluded from nonaccrual loans as the loans are insured and/or guaranteed by U.S. government agencies.
(b)There were 0no performing loans that were ninety days or more past due as of June 30, 2021,March 31, 2022, and December 31, 2020,2021, respectively.
(c)Remaining contractual principal is not applicable to nonprincipal-protected structured notes and long-term beneficial interests. Unlike principal-protected structured notes and long-term beneficial interests, for which the Firm is obligated to return a stated amount of principal at maturity, nonprincipal-protected structured notes and long-term beneficial interests do not obligate the Firm to return a stated amount of principal at maturity, but for structured notes to return an amount based on the performance of an underlying variable or derivative feature embedded in the note. However, investors are exposed to the credit risk of the Firm as issuer for both nonprincipal-protected and principal-protected notes.
(d)Where the Firm issues principal-protected zero-coupon or discount notes, the balance reflects the contractual principal payment at maturity or, if applicable, the contractual principal payment at the Firm’s next call date.
At June 30, 2021,March 31, 2022, and December 31, 2020,2021, the contractual amount of lending-related commitments for which the fair value option was elected was $17.1$11.7 billion and $18.1$11.9 billion, respectively, with a corresponding fair value of $(29)$56 million and $(39)$10 million, respectively. Refer to Note 28 of JPMorgan Chase’s 20202021 Form 10-K, and Note 22 of this Form 10-Q for further information regarding off-balance sheet lending-related financial instruments.
11299

Structured note products by balance sheet classification and risk component
The following table presents the fair value of structured notes, by balance sheet classification and the primary risk type.
June 30, 2021December 31, 2020March 31, 2022December 31, 2021
(in millions)(in millions)Long-term debtShort-term borrowingsDepositsTotalLong-term debtShort-term borrowingsDepositsTotal(in millions)Long-term debtShort-term borrowingsDepositsTotalLong-term debtShort-term borrowingsDepositsTotal
Risk exposureRisk exposureRisk exposure
Interest rateInterest rate$34,655 $64 $5,656 $40,375 $38,129 $65 $5,057 $43,251 Interest rate$31,470 $99 $5,507 $37,076 $34,127 $1 $4,860 $38,988 
CreditCredit6,786 1,662 0 8,448 6,409 1,022 0 7,431 Credit5,756 638 — 6,394 6,352 858 — 7,210 
Foreign exchangeForeign exchange3,563 132 25 3,720 3,613 92 0 3,705 Foreign exchange3,152 297 200 3,649 3,386 315 1,066 4,767 
EquityEquity29,182 7,082 6,026 42,290 26,943 5,021 6,893 38,857 Equity28,422 6,761 4,476 39,659 29,317 6,827 5,125 41,269 
CommodityCommodity369 1 14 (a)384 250 13 232 (a)495 Commodity556 — 3 (a)559 405 — 3 (a)408 
Total structured notesTotal structured notes$74,555 $8,941 $11,721 $95,217 $75,344 $6,213 $12,182 $93,739 Total structured notes$69,356 $7,795 $10,186 $87,337 $73,587 $8,001 $11,054 $92,642 
(a)Excludes deposits linked to precious metals for which the fair value option has not been elected of $694$629 million and $739$692 million for the periods ended June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively.
113100

Note 4 – Derivative instruments
JPMorgan Chase makes markets in derivatives for clients and also uses derivatives to hedge or manage its own risk exposures. Refer to Note 5 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion of the Firm’s use of and accounting policies regarding derivative instruments.
The Firm’s disclosures are based on the accounting treatment and purpose of these derivatives. A limited number of the Firm’s derivatives are designated in hedge
accounting relationships and are disclosed according to the type of hedge (fair value hedge, cash flow hedge, or net investment hedge). Derivatives not designated in hedge accounting relationships include certain derivatives that are used to manage risks associated with specified assets and liabilities (“specified risk management” positions) as well as derivatives used in the Firm’s market-making businesses or for other purposes.

The following table outlines the Firm’s primary uses of derivatives and the related hedge accounting designation or disclosure category.
Type of DerivativeUse of DerivativeDesignation and disclosureAffected
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 hedgeCorporate120-121107-108
•Interest rate
Hedge floating-rate assets and liabilitiesCash flow hedgeCorporate122109
•Foreign exchange
Hedge foreign currency-denominated assets and liabilitiesFair value hedgeCorporate120-121107-108
•Foreign exchange
Hedge foreign currency-denominated forecasted revenue and expenseCash flow hedgeCorporate122109
•Foreign exchange
Hedge the value of the Firm’s investments in non-U.S. dollar functional currency entitiesNet investment hedgeCorporate123109
•Commodity
Hedge commodity inventoryFair value hedgeCIB, AWM120-121107-108
Manage specifically identified risk exposures not designated in qualifying hedge accounting relationships:
•Interest rate
Manage the risk associated with mortgage commitments, warehouse loans and MSRsSpecified risk managementCCB123110
•Credit
Manage the credit risk associated with wholesale lending exposuresSpecified risk managementCIB123110
•Interest rate and foreign exchange
Manage the risk associated with certain other specified assets and liabilitiesSpecified risk managementCorporate123110
Market-making derivatives and other activities:
•Various
Market-making and related risk managementMarket-making and otherCIB123110
•Various
Other derivativesMarket-making and otherCIB, AWM, Corporate123110
114101

Notional amount of derivative contracts
The following table summarizes the notional amount of free-standing derivative contracts outstanding as of June 30, 2021,March 31, 2022, and December 31, 2020.2021.
Notional amounts(b)
Notional amounts(b)
(in billions)(in billions)June 30, 2021December 31, 2020(in billions)March 31, 2022December 31, 2021
Interest rate contractsInterest rate contractsInterest rate contracts
SwapsSwaps$24,414 $20,990 (c)Swaps$31,216 $24,075 
Futures and forwardsFutures and forwards5,170 3,057 Futures and forwards3,906 2,520 
Written optionsWritten options3,354 3,375 Written options3,257 3,018 
Purchased optionsPurchased options3,604 3,675 Purchased options3,398 3,188 
Total interest rate contractsTotal interest rate contracts36,542 31,097 Total interest rate contracts41,777 32,801 
Credit derivatives(a)
Credit derivatives(a)
1,143 1,197 (c)
Credit derivatives(a)
1,504 1,053 
Foreign exchange contractsForeign exchange contractsForeign exchange contracts
Cross-currency swapsCross-currency swaps4,088 3,924 Cross-currency swaps4,124 4,112 
Spot, futures and forwardsSpot, futures and forwards7,465 6,871 Spot, futures and forwards8,649 7,679 
Written optionsWritten options805 830 Written options841 741 
Purchased optionsPurchased options782 825 Purchased options823 727 
Total foreign exchange contractsTotal foreign exchange contracts13,140 12,450 Total foreign exchange contracts14,437 13,259 
Equity contractsEquity contractsEquity contracts
SwapsSwaps549 448 Swaps656 612 
Futures and forwardsFutures and forwards158 140 Futures and forwards149 139 
Written optionsWritten options735 676 Written options705 654 
Purchased optionsPurchased options680 621 Purchased options657 598 
Total equity contractsTotal equity contracts2,122 1,885 Total equity contracts2,167 2,003 
Commodity contractsCommodity contractsCommodity contracts
SwapsSwaps175 138 Swaps221 185 
Spot, futures and forwardsSpot, futures and forwards196 198 Spot, futures and forwards260 188 
Written optionsWritten options152 124 Written options137 135 
Purchased optionsPurchased options119 105 Purchased options108 111 
Total commodity contractsTotal commodity contracts642 565 Total commodity contracts726 619 
Total derivative notional amountsTotal derivative notional amounts$53,589 $47,194 Total derivative notional amounts$60,611 $49,735 
(a)Refer to the Credit derivatives discussion on page 124111 for more information on volumes and types of credit derivative contracts.
(b)Represents the sum of gross long and gross short third-party notional derivative contracts.
(c)Prior-period amounts have been revised to conform with the current presentation.
While the notional amounts disclosed above give an indication of the volume of the Firm’s derivatives activity, the notional amounts significantly exceed, in the Firm’s view, the possible losses that could arise from such transactions. For most derivative contracts, the notional amount is not exchanged; it is simply a reference amount used to calculate payments.
115102

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, 2021,March 31, 2022, and December 31, 2020,2021, 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)
Free-standing derivative receivables and payables(a)
Free-standing derivative receivables and payables(a)
Gross derivative receivablesGross derivative payablesGross derivative receivablesGross derivative payables
June 30, 2021
(in millions)		Not designated as hedgesDesignated as hedgesTotal derivative receivables
Net derivative receivables(b)
Not designated as hedgesDesignated
as hedges		Total derivative payables
Net derivative payables(b)
March 31, 2022
(in millions)		March 31, 2022
(in millions)		Not designated as hedgesDesignated as hedgesTotal derivative receivables
Net derivative receivables(b)
Not designated as hedgesDesignated
as hedges		Total derivative payables
Net derivative payables(b)
Trading assets and liabilitiesTrading assets and liabilitiesTrading assets and liabilities
Interest rateInterest rate$303,469 $780 $304,249 $26,046 $270,175 $0 $270,175 $9,190 Interest rate$261,796 $13 $261,809 $23,318 $236,562 $— $236,562 $11,530 
CreditCredit10,104 0 10,104 948 11,515 0 11,515 1,184 Credit12,605 — 12,605 1,375 11,851 — 11,851 799 
Foreign exchangeForeign exchange156,349 1,068 157,417 14,507 155,369 1,382 156,751 13,715 Foreign exchange210,358 487 210,845 19,503 207,071 1,657 208,728 15,661 
EquityEquity73,104 0 73,104 16,861 84,557 0 84,557 21,100 Equity72,870 — 72,870 8,642 81,027 — 81,027 15,817 
CommodityCommodity26,017 3,113 29,130 12,349 25,467 4,416 29,883 10,856 Commodity53,042 4,480 57,522 20,798 47,621 6,055 53,676 13,996 
Total fair value of trading assets and liabilitiesTotal fair value of trading assets and liabilities$569,043 $4,961 $574,004 $70,711 $547,083 $5,798 $552,881 $56,045 Total fair value of trading assets and liabilities$610,671 $4,980 $615,651 $73,636 $584,132 $7,712 $591,844 $57,803 
Gross derivative receivablesGross derivative payablesGross derivative receivablesGross derivative payables
December 31, 2020
(in millions)		Not designated as hedgesDesignated as hedgesTotal derivative receivables
Net derivative receivables(b)
Not designated as hedgesDesignated
as hedges		Total derivative payables
Net derivative payables(b)
December 31, 2021
(in millions)		December 31, 2021
(in millions)		Not designated as hedgesDesignated as hedgesTotal derivative receivables
Net derivative receivables(b)
Not designated as hedgesDesignated
as hedges		Total derivative payables
Net derivative payables(b)
Trading assets and liabilitiesTrading assets and liabilitiesTrading assets and liabilities
Interest rateInterest rate$390,817 (c)$831 $391,648 $35,725 $353,987 (c)$0 $353,987 $13,012 Interest rate$270,562 

$23 $270,585 $21,974 $240,731 $— $240,731 $8,194 
CreditCredit13,345 (c)0 13,345 680 14,832 (c)0 14,832 1,995 Credit9,839 — 9,839 1,031 10,912 — 10,912 880 
Foreign exchangeForeign exchange205,359 901 206,260 15,781 214,229 1,697 215,926 21,433 Foreign exchange169,186 393 169,579 12,625 174,622 1,124 175,746 14,097 
EquityEquity74,798 0 74,798 20,673 81,413 0 81,413 25,898 Equity68,631 — 68,631 9,981 79,727 — 79,727 17,233 
CommodityCommodity20,579 924 21,503 6,771 20,834 1,895 22,729 8,285 Commodity21,233 5,420 26,653 11,470 20,837 7,091 27,928 9,712 
Total fair value of trading assets and liabilitiesTotal fair value of trading assets and liabilities$704,898 $2,656 $707,554 $79,630 $685,295 $3,592 $688,887 $70,623 Total fair value of trading assets and liabilities$539,451 $5,836 $545,287 $57,081 $526,829 $8,215 $535,044 $50,116 
(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)Prior-period amounts have been revised to conform with the current presentation.

116103

Derivatives netting
The following tables present, as of June 30, 2021,March 31, 2022, and December 31, 2020,2021, gross and net derivative receivables and payables by contract and settlement type. Derivative receivables and payables, as well as the related cash collateral from the same counterparty, have been netted on the Consolidated balance sheets where the Firm has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the Consolidated balance sheets, and those derivative receivables and payables are shown separately in the tables below.
In addition to the cash collateral received and transferred that is presented on a net basis with derivative receivables and payables, the Firm receives and transfers additional collateral (financial instruments and cash). These amounts mitigate counterparty credit risk associated with the Firm’s derivative instruments, but are not eligible for net presentation:
•collateral that consists of liquid securities and other cash collateral held at third-party custodians, which are shown separately as “Collateral"Collateral not nettable on the Consolidated balance sheets”sheets" in the tables below, up to the fair value exposure amount. For the purpose of this disclosure, the definition of liquid securities is consistent with the definition of high quality liquid assets as defined in the LCR rule;
•the amount of collateral held or transferred that exceeds the fair value exposure at the individual counterparty level, as of the date presented, which is excluded from the tables below; and
•collateral held or transferred that relates to derivative receivables or payables where an appropriate legal opinion has not been either sought or obtained with respect to the master netting agreement, which is excluded from the tables below.
June 30, 2021December 31, 2020March 31, 2022December 31, 2021
(in millions)(in millions)Gross derivative receivablesAmounts netted on the Consolidated balance sheetsNet derivative receivablesGross derivative receivablesAmounts netted on the Consolidated balance sheetsNet
derivative receivables		(in millions)Gross derivative receivablesAmounts netted on the Consolidated balance sheetsNet derivative receivablesGross derivative receivablesAmounts netted on the Consolidated balance sheetsNet
derivative receivables
U.S. GAAP nettable derivative receivablesU.S. GAAP nettable derivative receivablesU.S. GAAP nettable derivative receivables
Interest rate contracts:Interest rate contracts:Interest rate contracts:
Over-the-counter (“OTC”)Over-the-counter (“OTC”)$281,104 $(259,955)$21,149 $367,214 (e)$(337,609)(e)$29,605 Over-the-counter (“OTC”)$223,414 $(205,472)$17,942 $251,953 $(234,283)$17,670 
OTC–clearedOTC–cleared18,220 (17,997)223 18,340 (17,919)421 OTC–cleared32,056 (31,362)694 14,144 (13,839)305 
Exchange-traded(a)
Exchange-traded(a)
275 (251)24 554 (395)159 
Exchange-traded(a)
1,884 (1,657)227 498 (489)9 
Total interest rate contractsTotal interest rate contracts299,599 (278,203)21,396 386,108 (355,923)30,185 Total interest rate contracts257,354 (238,491)18,863 266,595 (248,611)17,984 
Credit contracts:Credit contracts:Credit contracts:
OTCOTC7,860 (7,134)726 8,894 (e)(8,356)(e)538 OTC9,881 (8,732)1,149 8,035 (7,177)858 
OTC–clearedOTC–cleared2,033 (2,022)11 4,326 (4,309)17 OTC–cleared2,559 (2,498)61 1,671 (1,631)40 
Total credit contractsTotal credit contracts9,893 (9,156)737 13,220 (12,665)555 Total credit contracts12,440 (11,230)1,210 9,706 (8,808)898 
Foreign exchange contracts:Foreign exchange contracts:Foreign exchange contracts:
OTCOTC153,517 (142,403)11,114 201,349 (189,655)11,694 OTC206,538 (190,877)15,661 166,185 (156,251)9,934 
OTC–clearedOTC–cleared574 (507)67 834 (819)15 OTC–cleared470 (463)7 789 (703)86 
Exchange-traded(a)
Exchange-traded(a)
23 0 23 35 (5)30 
Exchange-traded(a)
13 (2)11 6 — 6 
Total foreign exchange contractsTotal foreign exchange contracts154,114 (142,910)11,204 202,218 (190,479)11,739 Total foreign exchange contracts207,021 (191,342)15,679 166,980 (156,954)10,026 
Equity contracts:Equity contracts:Equity contracts:
OTCOTC29,092 (22,796)6,296 34,030 (27,374)6,656 OTC30,059 (28,272)1,787 25,704 (23,977)1,727 
Exchange-traded(a)
Exchange-traded(a)
33,993 (33,447)546 28,294 (26,751)1,543 
Exchange-traded(a)
37,223 (35,956)1,267 36,095 (34,673)1,422 
Total equity contractsTotal equity contracts63,085 (56,243)6,842 62,324 (54,125)8,199 Total equity contracts67,282 (64,228)3,054 61,799 (58,650)3,149 
Commodity contracts:Commodity contracts:Commodity contracts:
OTCOTC15,720 (6,911)8,809 10,924 (7,901)3,023 OTC31,841 (14,741)17,100 15,063 (6,868)8,195 
OTC–clearedOTC–cleared65 (65)0 20 (20)0 OTC–cleared78 (78)— 49 (49)— 
Exchange-traded(a)
Exchange-traded(a)
9,970 (9,805)165 6,833 (6,811)22 
Exchange-traded(a)
21,958 (21,905)53 8,279 (8,266)13 
Total commodity contractsTotal commodity contracts25,755 (16,781)8,974 17,777 (14,732)3,045 Total commodity contracts53,877 (36,724)17,153 23,391 (15,183)8,208 
Derivative receivables with appropriate legal opinionDerivative receivables with appropriate legal opinion552,446 (503,293)49,153 (d)681,647 (627,924)53,723 (d)Derivative receivables with appropriate legal opinion597,974 (542,015)55,959 (d)528,471 (488,206)40,265 (d)
Derivative receivables where an appropriate legal opinion has not been either sought or obtainedDerivative receivables where an appropriate legal opinion has not been either sought or obtained21,558 21,558 25,907 25,907 Derivative receivables where an appropriate legal opinion has not been either sought or obtained17,677 17,677 16,816 16,816 
Total derivative receivables recognized on the Consolidated balance sheetsTotal derivative receivables recognized on the Consolidated balance sheets$574,004 $70,711 $707,554 $79,630 Total derivative receivables recognized on the Consolidated balance sheets$615,651 $73,636 $545,287 $57,081 
Collateral not nettable on the Consolidated balance sheets(b)(c)
Collateral not nettable on the Consolidated balance sheets(b)(c)
(11,324)(14,806)
Collateral not nettable on the Consolidated balance sheets(b)(c)
(15,166)(10,102)
Net amountsNet amounts$59,387 $64,824 Net amounts$58,470 $46,979 
117104

June 30, 2021December 31, 2020March 31, 2022December 31, 2021
(in millions)(in millions)Gross derivative payablesAmounts netted on the Consolidated balance sheetsNet derivative payablesGross derivative payablesAmounts netted on the Consolidated balance sheetsNet
derivative payables		(in millions)Gross derivative payablesAmounts netted on the Consolidated balance sheetsNet derivative payablesGross derivative payablesAmounts netted on the Consolidated balance sheetsNet
derivative payables
U.S. GAAP nettable derivative payablesU.S. GAAP nettable derivative payablesU.S. GAAP nettable derivative payables
Interest rate contracts:Interest rate contracts:Interest rate contracts:
OTCOTC$248,575 $(241,070)$7,505 $332,214 (e)$(321,140)(e)$11,074 OTC$199,222 $(190,721)$8,501 $223,576 $(216,757)$6,819 
OTC–clearedOTC–cleared20,066 (19,739)327 19,710 (19,494)216 OTC–cleared34,473 (33,526)947 15,695 (15,492)203 
Exchange-traded(a)
Exchange-traded(a)
202 (176)26 358 (341)17 
Exchange-traded(a)
803 (785)18 292 (288)4 
Total interest rate contractsTotal interest rate contracts268,843 (260,985)7,858 352,282 (340,975)11,307 Total interest rate contracts234,498 (225,032)9,466 239,563 (232,537)7,026 
Credit contracts:Credit contracts:Credit contracts:
OTCOTC9,117 (8,516)601 10,311 (e)(8,781)(e)1,530 OTC9,179 (8,741)438 9,021 (8,421)600 
OTC–clearedOTC–cleared1,834 (1,815)19 4,075 (4,056)19 OTC–cleared2,375 (2,311)64 1,679 (1,611)68 
Total credit contractsTotal credit contracts10,951 (10,331)620 14,386 (12,837)1,549 Total credit contracts11,554 (11,052)502 10,700 (10,032)668 
Foreign exchange contracts:Foreign exchange contracts:Foreign exchange contracts:
OTCOTC152,578 (142,529)10,049 210,803 (193,672)17,131 OTC204,394 (192,598)11,796 171,610 (160,946)10,664 
OTC–clearedOTC–cleared533 (507)26 836 (819)17 OTC–cleared480 (468)12 706 (703)3 
Exchange-traded(a)
Exchange-traded(a)
22 0 22 34 (2)32 
Exchange-traded(a)
13 (1)12 7 — 7 
Total foreign exchange contractsTotal foreign exchange contracts153,133 (143,036)10,097 211,673 (194,493)17,180 Total foreign exchange contracts204,887 (193,067)11,820 172,323 (161,649)10,674 
Equity contracts:Equity contracts:Equity contracts:
OTCOTC34,459 (30,011)4,448 35,330 (28,763)6,567 OTC33,490 (29,263)4,227 31,379 (27,830)3,549 
Exchange-traded(a)
Exchange-traded(a)
40,777 (33,446)7,331 34,491 (26,752)7,739 
Exchange-traded(a)
40,460 (35,947)4,513 40,621 (34,664)5,957 
Total equity contractsTotal equity contracts75,236 (63,457)11,779 69,821 (55,515)14,306 Total equity contracts73,950 (65,210)8,740 72,000 (62,494)9,506 
Commodity contracts:Commodity contracts:Commodity contracts:
OTCOTC14,621 (9,066)5,555 10,365 (7,544)2,821 OTC24,898 (16,804)8,094 14,874 (9,667)5,207 
OTC–clearedOTC–cleared80 (80)0 32 (32)0 OTC–cleared89 (89)— 73 (73)— 
Exchange-traded(a)
Exchange-traded(a)
10,521 (9,881)640 7,391 (6,868)523 
Exchange-traded(a)
24,598 (22,787)1,811 8,954 (8,476)478 
Total commodity contractsTotal commodity contracts25,222 (19,027)6,195 17,788 (14,444)3,344 Total commodity contracts49,585 (39,680)9,905 23,901 (18,216)5,685 
Derivative payables with appropriate legal opinionDerivative payables with appropriate legal opinion533,385 (496,836)36,549 (d)665,950 (618,264)47,686 (d)Derivative payables with appropriate legal opinion574,474 (534,041)40,433 (d)518,487 (484,928)33,559 (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 obtained19,496 19,496 22,937 22,937 Derivative payables where an appropriate legal opinion has not been either sought or obtained17,370 17,370 16,557 16,557 
Total derivative payables recognized on the Consolidated balance sheetsTotal derivative payables recognized on the Consolidated balance sheets$552,881 $56,045 $688,887 $70,623 Total derivative payables recognized on the Consolidated balance sheets$591,844 $57,803 $535,044 $50,116 
Collateral not nettable on the Consolidated balance sheets(b)(c)
Collateral not nettable on the Consolidated balance sheets(b)(c)
(7,873)(11,964)
Collateral not nettable on the Consolidated balance sheets(b)(c)
(4,627)(5,872)
Net amountsNet amounts$48,172 $58,659 Net amounts$53,176 $44,244 
(a)Exchange-traded derivative balances that relate to futures contracts are settled daily.
(b)Includes liquid securities and other cash collateral held at third-party custodians related to derivative instruments where an appropriate legal opinion has been obtained. For some counterparties, the collateral amounts of financial instruments may exceed the derivative receivables and derivative payables balances. Where this is the case, the total amount reported is limited to the net derivative receivables and net derivative payables balances with that counterparty.
(c)Derivative collateral relates only to OTC and OTC-cleared derivative instruments.
(d)Net derivatives receivable included cash collateral netted of $70.0$68.5 billion and $88.0$67.6 billion at June 30, 2021,March 31, 2022, and December 31, 2020,2021, respectively. Net derivatives payable included cash collateral netted of $63.5$60.6 billion and $78.4$64.3 billion at June 30, 2021,March 31, 2022, and December 31, 2020,2021, respectively. Derivative cash collateral relates to OTC and OTC-cleared derivative instruments.
(e)Prior-period amounts have been revised to conform with the current presentation.
118105

Liquidity risk and credit-related contingent features
Refer to Note 5 of JPMorgan Chase’s 20202021 Form 10-K for a more detailed discussion of liquidity risk and credit-related contingent features related to the Firm’s derivative contracts.
The following table shows the aggregate fair value of net derivative payables related to OTC and OTC-cleared derivatives that contain contingent collateral or termination features that may be triggered upon a ratings downgrade, and the associated collateral the Firm has posted in the normal course of business, at June 30, 2021,March 31, 2022, and December 31, 2020.2021.
OTC and OTC-cleared derivative payables containing downgrade triggers
(in millions)June 30, 2021December 31, 2020
Aggregate fair value of net derivative payables$20,607 $26,945 (a)
Collateral posted19,146 26,289 
(a)Prior-period amount has been revised to conform with the current presentation.
OTC and OTC-cleared derivative payables containing downgrade triggers
(in millions)March 31, 2022December 31, 2021
Aggregate fair value of net derivative payables$19,101 $20,114 
Collateral posted18,539 19,402 
The following table shows the impact of a single-notch and two-notch downgrade of the long-term issuer ratings of JPMorgan Chase & Co. and its subsidiaries, predominantly JPMorgan Chase Bank, N.A., at June 30, 2021,March 31, 2022, and December 31, 2020,2021, 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 derivativesLiquidity impact of downgrade triggers on OTC and OTC-cleared derivatives
June 30, 2021December 31, 2020March 31, 2022December 31, 2021
(in millions)(in millions)Single-notch downgradeTwo-notch downgradeSingle-notch downgradeTwo-notch downgrade(in millions)Single-notch downgradeTwo-notch downgradeSingle-notch downgradeTwo-notch downgrade
Amount of additional collateral to be posted upon downgrade(a)
Amount of additional collateral to be posted upon downgrade(a)
$149 $1,427 $119 $1,243 
Amount of additional collateral to be posted upon downgrade(a)
$252 $1,645 $219 $1,577 
Amount required to settle contracts with termination triggers upon downgrade(b)
Amount required to settle contracts with termination triggers upon downgrade(b)
117 967 153 1,682 (c)
Amount required to settle contracts with termination triggers upon downgrade(b)
91 567 98 787 
(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.
(c)Prior-period amount has been revised to conform with the current presentation.
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 was not material at June 30, 2021March 31, 2022 and December 31, 2020.2021.
119106

Impact of derivatives on the Consolidated statements of income
The following tables provide information related to gains and losses recorded on derivatives based on their hedge accounting designation or purpose.
Fair value hedge gains and losses
The following tables present derivative instruments, by contract type, used in fair value hedge accounting relationships, as well as pre-tax gains/(losses) recorded on such derivatives and the related hedged items for the three and six months ended June 30,March 31, 2022 and 2021, and 2020, respectively. The Firm includes gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the related hedged item.
Gains/(losses) recorded in income
Income statement impact of
excluded components(e)
OCI impactGains/(losses) recorded in income
Income statement impact of
excluded components(f)
OCI impact
Three months ended June 30, 2021
(in millions)		DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair value
Derivatives - Gains/(losses) recorded in OCI(f)
Three months ended March 31, 2022
(in millions)		Three months ended March 31, 2022
(in millions)		DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair value
Derivatives - Gains/(losses) recorded in OCI(g)
Contract typeContract typeContract type
Interest rate(a)(b)
Interest rate(a)(b)
$2,184 $(1,630)$554 $0 $544 $0 
Interest rate(a)(b)
$(7,070)$6,981 $(89)$— $(66)$— 
Foreign exchange(c)
Foreign exchange(c)
230 (221)9 (72)9 (31)
Foreign exchange(c)
(690)688 (2)(65)(2)145 
Commodity(d)
Commodity(d)
(3,126)3,155 29 0 20 0 
Commodity(d)
(176)147 (29)0(37)— 
TotalTotal$(712)$1,304 $592 $(72)$573 $(31)Total$(7,936)$7,816 $(120)$(65)$(105)$145 
Gains/(losses) recorded in income
Income statement impact of
excluded components(e)
OCI impact
Three months ended June 30, 2020
(in millions)		DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair value
Derivatives - Gains/(losses) recorded in OCI(f)
Contract type
Interest rate(a)(b)
$464 $(288)$176 $0 $205 $0 
Foreign exchange(c)
(304)338 34 (121)34 21 
Commodity(d)
(1,730)1,771 41 0 44 0 
Total$(1,570)$1,821 $251 $(121)$283 $21 
Gains/(losses) recorded in income
Income statement impact of
excluded components(e)
OCI impact
Six months ended June 30, 2021
(in millions)		DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair value
Derivatives - Gains/(losses) recorded in OCI(f)
Contract type
Interest rate(a)(b)
$(2,937)$3,816 $879 $0 $980 $0 
Foreign exchange(c)
(499)526 27 (150)27 (68)
Commodity(d)
(4,387)4,443 56 0 32 0 
Total$(7,823)$8,785 $962 $(150)$1,039 $(68)
Gains/(losses) recorded in income
Income statement impact of
excluded components(e)
OCI impactGains/(losses) recorded in income
Income statement impact of
excluded components(f)
OCI impact
Six months ended June 30, 2020
(in millions)		DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair value
Derivatives - Gains/(losses) recorded in OCI(f)
Three months ended March 31, 2021
(in millions)		Three months ended March 31, 2021
(in millions)		DerivativesHedged itemsIncome statement impactAmortization approachChanges in fair value
Derivatives - Gains/(losses) recorded in OCI(g)
Contract typeContract typeContract type
Interest rate(a)(b)
Interest rate(a)(b)
$4,551 $(4,076)$475 $0 $419 $0 
Interest rate(a)(b)
$(5,121)$4,837 $(284)$— $(173)$— 
Foreign exchange(c)
Foreign exchange(c)
272 (150)122 (300)122 136 
Foreign exchange(c)
(782)(e)800 (e)18 (78)18 (37)
Commodity(d)
Commodity(d)
(202)289 87 0 93 0 
Commodity(d)
(1,261)1,288 27 — 12 — 
TotalTotal$4,621 $(3,937)$684 $(300)$634 $136 Total$(7,164)$6,925 $(239)$(78)$(143)$(37)
(a)Primarily consists of hedges of the benchmark (e.g., London Interbank Offered Rate ("LIBOR"), Secured Overnight Financing Rate (“LIBOR”SOFR”)) interest rate risk of fixed-rate long-term debt and AFS securities. Gains and losses were recorded in net interest income.
(b)ExcludesEffective January 1, 2022, the Firm updated its presentation in the table above to include the amortization of income/expense associated with the inception hedge accounting adjustment applied to the hedged item. This expense is recorded in net interest income and substantially offsetsitem; prior-period amounts have been revised to conform with the income statement impact of the excluded components. Also excludescurrent presentation. 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)Prior-period amounts have been revised to conform with the current presentation.
(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. Excluded components may impact earnings either through amortization of the initial amount over the life of the derivative, or through fair value changes recognized in the current period.
(f)(g)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.
120107

As of June 30, 2021March 31, 2022 and December 31, 2020,2021, the following amounts were recorded on the Consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the income statement in future periods as an adjustment to yield.
Carrying amount of the hedged items(a)(b)
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items:
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, 2021
(in millions)		Active hedging relationships
Discontinued hedging relationships(d)(e)
Total
March 31, 2022
(in millions)		March 31, 2022
(in millions)
Carrying amount of the hedged items(a)(b)
Active hedging relationships(d)
Discontinued hedging relationships(d)(e)
Total
AssetsAssetsAssets
Investment securities - AFSInvestment securities - AFS$81,335 (c)$1,420 $579 $1,999 Investment securities - AFS$62,197 (c)$(2,239)$636 $(1,603)
LiabilitiesLiabilitiesLiabilities
Long-term debtLong-term debt$193,441 $434 $8,916 $9,350 Long-term debt$191,109 $(11,782)$8,706 $(3,076)
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs747 0 (2)(2)Beneficial interests issued by consolidated VIEs749 — (1)(1)
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:
December 31, 2020
(in millions)		Active hedging relationships
Discontinued hedging relationships(d)(e)
Total
December 31, 2021
(in millions)		December 31, 2021
(in millions)
Carrying amount of the hedged items(a)(b)
Active hedging relationships(d)
Discontinued hedging relationships(d)(e)
Total
AssetsAssetsAssets
Investment securities - AFSInvestment securities - AFS$139,684 (c)$3,572 $847 $4,419 Investment securities - AFS$65,746 (c)$417 $661 $1,078 
LiabilitiesLiabilitiesLiabilities
Long-term debtLong-term debt$177,611 $3,194 $11,473 $14,667 Long-term debt$195,642 $(1,999)$8,834 $6,835 
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs746 0 (3)(3)Beneficial interests issued by consolidated VIEs749 — (1)(1)
(a)Excludes physical commodities with a carrying value of $20.1$24.9 billion and $11.5$25.7 billion at June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively, to which the Firm applies fair value hedge accounting. As a result of the application of hedge accounting, these inventories are carried at fair value, thus recognizing unrealized gains and losses in current periods. Since the Firm exits these positions at fair value, there is no incremental impact to net income in future periods.
(b)Excludes hedged items where only foreign currency risk is the designated hedged risk, as basis adjustments related to foreign currency hedges will not reverse through the income statement in future periods. At June 30, 2021March 31, 2022 and December 31, 2020,2021, the carrying amount excluded for AFS securities is $12.6$14.6 billion and $14.5$14.0 billion, respectively, and for long-term debt is $6.4$1.4 billion and $6.6$10.8 billion, respectively.
(c)Carrying amount represents the amortized cost, net of allowance if applicable. Refer to Note 9 for additional information.
(d)Represents basis adjustments existing on the balance sheet date associated with hedged items that have been de-designated from qualifying fair value hedging relationships.
(e)Positive amounts related to assets represent cumulative fair value hedge basis adjustments that will reduce net interest income in future periods. Positive (negative) amounts related to liabilities represent cumulative fair value hedge basis adjustments that will increase (reduce) net interest income in future periods.
(e)Represents basis adjustments existing on the balance sheet date associated with hedged items that have been de-designated from qualifying fair value hedging relationships.
121
108

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,March 31, 2022 and 2021, and 2020, respectively. The Firm includes the gains/(losses) on the hedging derivative in the same line item in the Consolidated statements of income as the change in cash flows on the related hedged item.
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Three months ended June 30, 2021
(in millions)		Amounts reclassified
from AOCI to income		Amounts recorded
in OCI		Total change
in OCI for period
Three months ended March 31, 2022
(in millions)		Three months ended March 31, 2022
(in millions)		Amounts reclassified
from AOCI to income		Amounts recorded
in OCI		Total change
in OCI for period
Contract typeContract typeContract type
Interest rate(a)
Interest rate(a)
$262 $1,122 $860 
Interest rate(a)
$243 $(3,361)$(3,604)
Foreign exchange(b)
Foreign exchange(b)
78 (4)(82)
Foreign exchange(b)
(6)(75)(69)
TotalTotal$340 $1,118 $778 Total$237 $(3,436)$(3,673)
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, 2020
(in millions)		Amounts reclassified
from AOCI to income		Amounts recorded
in OCI
Total change
in OCI for period
Three months ended March 31, 2021
(in millions)		Three months ended March 31, 2021
(in millions)		Amounts reclassified
from AOCI to income		Amounts recorded
in OCI
Total change
in OCI for period
Contract typeContract typeContract type
Interest rate(a)
Interest rate(a)
$127 $412 $285 
Interest rate(a)
$237 $(2,761)$(2,998)
Foreign exchange(b)
Foreign exchange(b)
(34)(10)24 
Foreign exchange(b)
27 66 39 
TotalTotal$93 $402 $309 Total$264 $(2,695)$(2,959)
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Six months ended June 30, 2021
(in millions)		Amounts reclassified
from AOCI to income		Amounts recorded
in OCI		Total change
in OCI for period
Contract type
Interest rate(a)
$499 $(1,639)$(2,138)
Foreign exchange(b)
105 62 (43)
Total$604 $(1,577)$(2,181)
Derivatives gains/(losses) recorded in income and other comprehensive income/(loss)
Six months ended June 30, 2020
(in millions)		Amounts reclassified
from AOCI to income		Amounts recorded
in OCI		Total change
in OCI for period
Contract type
Interest rate(a)
$118 $3,873 $3,755 
Foreign exchange(b)
(17)(220)(203)
Total$101 $3,653 $3,552 
(a)Primarily consists of 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.
The Firm did not experience any forecasted transactions that failed to occur for the three and six months ended June 30, 2021March 31, 2022 and 2020.2021.
Over the next 12 months, the Firm expects that approximately $885$139 million (after-tax) of net gains recorded in AOCI at June 30, 2021,March 31, 2022, related to cash flow hedges will be recognized in income. For cash flow hedges that have been terminated, the maximum length of time over which the derivative results recorded in AOCI will be recognized in earnings is approximately nineeight years, corresponding to the timing of the originally hedged forecasted cash flows. For open cash flow hedges, the maximum length of time over which forecasted transactions are hedged is approximately sevensix years. The Firm’s longer-dated forecasted transactions relate to core lending and borrowing activities.
122

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, 2021March 31, 2022 and 2020.2021.
Gains/(losses) recorded in income and other comprehensive income/(loss)Gains/(losses) recorded in income and other comprehensive income/(loss)
2021202020222021
Three months ended June 30,
(in millions)
Amounts recorded in
income(a)(b)
Amounts recorded in OCI
Amounts recorded in
income(a)(b)
Amounts recorded in OCI
Three months ended March 31,
(in millions)		Three months ended March 31,
(in millions)
Amounts recorded in
income(a)
Amounts recorded in OCI
Amounts recorded in
income(a)
Amounts recorded in OCI
Foreign exchange derivativesForeign exchange derivatives$(79)$(270)$(81)$(413)Foreign exchange derivatives$(131)$338 $(28)$1,200 
Gains/(losses) recorded in income and other comprehensive income/(loss)
20212020
Six months ended June 30,
(in millions)
Amounts recorded in
income(a)(b)
Amounts recorded in OCI
Amounts recorded in
income(a)(b)
Amounts recorded in OCI
Foreign exchange derivatives$(107)$930 $(71)$1,176 
(a)Certain components of hedging derivatives are permitted to be excluded from the assessment of hedge effectiveness, such as forward points on foreign exchange forward contracts. The Firm elects to record changes in fair value of these amounts directly in other income.
(b)Excludes amounts reclassified from AOCI to income on the sale or liquidation of hedged entities. The amount reclassified for the three and six months ended June 30, 2021 was 0t material. The Firm reclassified pre-tax losses of $8 million to other income related to the liquidation of certain legal entities during the three and six months ended June 30, 2020. Refer to Note 19 for further information.
109

Gains and losses on derivatives used for specified risk management purposes
The following table presents pre-tax gains/(losses) recorded on a limited number of derivatives, not designated in hedge accounting relationships, that are used to manage risks associated with certain specified assets and liabilities, including certain risks arising from mortgage commitments, warehouse loans, MSRs, wholesale lending exposures, and foreign currency-denominated assets and liabilities.
Derivatives gains/(losses)
recorded in income		Derivatives gains/(losses)
recorded in income
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
Contract typeContract typeContract type
Interest rate(a)
Interest rate(a)
$644 $644 $502 $1,936 
Interest rate(a)
$(229)$(142)
Credit(b)
Credit(b)
(27)(100)(67)(39)
Credit(b)
33 (40)
Foreign exchange(c)
Foreign exchange(c)
(30)(28)68 78 
Foreign exchange(c)
(82)98 
TotalTotal$587 $516 $503 $1,975 Total$(278)$(84)
(a)Primarily represents interest rate derivatives used to hedge the interest rate risk inherent in mortgage commitments, warehouse loans and MSRs, as well as written commitments to originate warehouse loans. Gains and losses were recorded predominantly in mortgage fees and related income.
(b)Relates to credit derivatives used to mitigate credit risk associated with lending exposures in the Firm’s wholesale businesses. These derivatives do not include credit derivatives used to mitigate counterparty credit risk arising from derivative receivables, which is included in gains and losses on derivatives related to market-making activities and other derivatives. Gains and losses were recorded in principal transactions revenue.
(c)Primarily relates to derivatives used to mitigate foreign exchange risk of specified foreign currency-denominated assets and liabilities. Gains and losses were recorded in principal transactions revenue.
Gains and losses on derivatives related to market-making activities and other derivatives
The Firm makes markets in derivatives in order to meet the needs of customers and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables. All derivatives not included in the hedge accounting or specified risk management categories above are included in this category. Gains and losses on these derivatives are primarily recorded in principal transactions revenue. Refer to Note 5 for information on principal transactions revenue.
123110

Credit derivatives
Refer to Note 5 of JPMorgan Chase’s 20202021 Form 10-K for a more detailed discussion of credit derivatives. The following tables present a summary of the notional amounts of credit derivatives and credit-related notes the Firm sold and purchased as of June 30, 2021March 31, 2022 and December 31, 2020.2021. 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, 2021 (in millions)Protection sold
Protection purchased with identical underlyings(b)
Net protection (sold)/purchased(c)
Other protection purchased(d)
March 31, 2022 (in millions)March 31, 2022 (in millions)Protection sold
Protection purchased with identical underlyings(c)
Net protection (sold)/purchased(d)
Other protection purchased(e)
Credit derivativesCredit derivativesCredit derivatives
Credit default swapsCredit default swaps$(495,229)$512,123 $16,894 $3,151 Credit default swaps$(640,702)$650,858 $10,156 $1,710 
Other credit derivatives(a)
Other credit derivatives(a)
(44,418)77,035 32,617 11,410 
Other credit derivatives(a)
(91,293)104,184 12,891 14,885 
Total credit derivativesTotal credit derivatives(539,647)589,158 49,511 14,561 Total credit derivatives(731,995)755,042 23,047 16,595 
Credit-related notes(b)Credit-related notes(b)0 0 0 11,703 Credit-related notes(b)— — — 8,844 
TotalTotal$(539,647)$589,158 $49,511 $26,264 Total$(731,995)$755,042 $23,047 $25,439 
Maximum payout/Notional amountMaximum payout/Notional amount
December 31, 2020 (in millions)Protection sold
Protection purchased with identical underlyings(b)
Net protection (sold)/purchased(c)
Other protection purchased(d)
December 31, 2021 (in millions)December 31, 2021 (in millions)Protection sold
Protection purchased with identical underlyings(c)
Net protection (sold)/purchased(d)
Other protection purchased(e)
Credit derivativesCredit derivativesCredit derivatives
Credit default swapsCredit default swaps$(533,900)(e)$552,021 (e)$18,121 $2,786 (e)Credit default swaps$(443,481)$458,180 $14,699 $2,269 
Other credit derivatives(a)
Other credit derivatives(a)
(40,084)57,344 17,260 

10,630 (e)
Other credit derivatives(a)
(56,130)79,586 23,456 

13,435 
Total credit derivativesTotal credit derivatives(573,984)609,365 35,381 13,416 Total credit derivatives(499,611)537,766 38,155 15,704 
Credit-related notes(b)Credit-related notes(b)0 0 0 10,248 Credit-related notes(b)— — — 9,437 
TotalTotal$(573,984)$609,365 $35,381 $23,664 Total$(499,611)$537,766 $38,155 $25,141 
(a)Other credit derivatives predominantly consist of credit swap options and total return swaps.
(b)Represents Other protection purchased by CIB, primarily in its market-making businesses.
(c)Represents the total notional amount of protection purchased where the underlying reference instrument is identical to the reference instrument on protection sold; the notional amount of protection purchased for each individual identical underlying reference instrument may be greater or lower than the notional amount of protection sold.
(c)(d)Does not take into account the fair value of the reference obligation at the time of settlement, which would generally reduce the amount the seller of protection pays to the buyer of protection in determining settlement value.
(d)(e)Represents protection purchased by the Firm on referenced instruments (single-name, portfolio or index) where the Firm has not sold any protection on the identical reference instrument.
(e)Prior-period amounts have been revised to conform with the current presentation.
The following tables summarize the notional amounts by the ratings, maturity profile, and total fair value, of credit derivatives as of June 30, 2021,March 31, 2022, and December 31, 2020,2021, where JPMorgan Chase is the seller of protection. The maturity profile is based on the remaining contractual maturity of the credit derivative contracts. The ratings profile is based on the rating of the reference entity on which the credit derivative contract is based. The ratings and maturity profile of credit derivatives where JPMorgan Chase is the purchaser of protection are comparable to the profile reflected below.
Protection sold — credit derivatives ratings(a)/maturity profile
Protection sold — credit derivatives ratings(a)/maturity profile
Protection sold — credit derivatives ratings(a)/maturity profile
June 30, 2021
(in millions)		<1 year1–5 years>5 yearsTotal
notional amount
Fair value of receivables(b)
Fair value of payables(b)
Net fair value
March 31, 2022
(in millions)		March 31, 2022
(in millions)		<1 year1–5 years>5 yearsTotal
notional amount
Fair value of receivables(b)
Fair value of payables(b)
Net fair value
Risk rating of reference entityRisk rating of reference entityRisk rating of reference entity
Investment-gradeInvestment-grade$(95,655)$(284,168)$(33,230)$(413,053)$3,842 $(552)$3,290 Investment-grade$(127,594)$(321,381)$(97,701)$(546,676)$3,464 $(871)$2,593 
Noninvestment-gradeNoninvestment-grade(27,656)(90,646)(8,292)(126,594)2,930 (1,978)952 Noninvestment-grade(32,074)(116,254)(36,991)(185,319)2,860 (3,337)(477)
TotalTotal$(123,311)$(374,814)$(41,522)$(539,647)$6,772 $(2,530)$4,242 Total$(159,668)$(437,635)$(134,692)$(731,995)$6,324 $(4,208)$2,116 
December 31, 2020
(in millions)		<1 year1–5 years>5 yearsTotal
notional amount
Fair value of receivables(b)
Fair value of payables(b)
Net fair value
December 31, 2021
(in millions)		December 31, 2021
(in millions)		<1 year1–5 years>5 yearsTotal
notional amount
Fair value of receivables(b)
Fair value of payables(b)
Net fair value
Risk rating of reference entityRisk rating of reference entityRisk rating of reference entity
Investment-gradeInvestment-grade$(93,529)(c)$(306,830)(c)$(35,326)$(435,685)$5,372 (c)$(834)(c)$4,538 Investment-grade$(91,155)$(255,106)$(29,035)$(375,296)$3,645 $(623)$3,022 
Noninvestment-gradeNoninvestment-grade(31,809)(97,337)(9,153)(138,299)3,953 (2,542)1,411 Noninvestment-grade(32,175)(84,851)(7,289)(124,315)2,630 (2,003)627 
TotalTotal$(125,338)$(404,167)$(44,479)$(573,984)$9,325 $(3,376)$5,949 Total$(123,330)$(339,957)$(36,324)$(499,611)$6,275 $(2,626)$3,649 
(a)The ratings scale is primarily based on external credit ratings defined by S&P and Moody’s.
(b)Amounts are shown on a gross basis, before the benefit of legally enforceable master netting agreements including cash collateral netting.
(c)Prior-period amounts have been revised to conform with the current presentation.
124111

Note 5 – Noninterest revenue and noninterest expense
Noninterest revenue
Refer to Note 6 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of the components of and accounting policies for the Firm’s noninterest revenue.
Investment banking fees
The following table presents the components of investment banking fees.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
UnderwritingUnderwritingUnderwriting
EquityEquity$1,073 $974 $2,135 $1,301 Equity$242 $1,062 
DebtDebt1,473 1,279 2,694 2,323 Debt974 1,221 
Total underwritingTotal underwriting2,546 2,253 4,829 3,624 Total underwriting1,216 2,283 
AdvisoryAdvisory924 597 1,611 1,092 Advisory792 687 
Total investment banking feesTotal investment banking fees$3,470 $2,850 $6,440 $4,716 Total investment banking fees$2,008 $2,970 
Principal transactions
The following table presents all realized and unrealized gains and losses recorded in principal transactions revenue. This table excludes interest income and interest expense on trading assets and liabilities, which are an integral part of the overall performance of the Firm’s client-driven market-making activities in CIB and fund deployment activities in Treasury and CIO. Refer to Note 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 LOB.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
Trading revenue by instrument typeTrading revenue by instrument typeTrading revenue by instrument type
Interest rate(a)
Interest rate(a)
$464 $1,519 

$1,387 $1,971 
Interest rate(a)
$469 $923 

Credit(b)
Credit(b)
759 1,953 (c)2,029 

1,251 (c)
Credit(b)
457 1,270 
Foreign exchangeForeign exchange641 1,425 1,639 2,892 Foreign exchange1,324 998 
EquityEquity1,929 2,058 4,586 3,406 Equity2,255 2,657 
CommodityCommodity301 591 850 1,028 Commodity747 549 
Total trading revenueTotal trading revenue4,094 7,546 10,491 10,548 Total trading revenue5,252 6,397 
Private equity gains/(losses)Private equity gains/(losses)(18)75 85 10 Private equity gains/(losses)(147)103 
Principal transactionsPrincipal transactions$4,076 $7,621 $10,576 $10,558 Principal transactions$5,105 $6,500 
(a)Includes the impact of changes in funding valuation adjustments on derivatives.
(b)Includes the impact of changes in credit valuation adjustments on derivatives, net of the associated hedging activities.
(c)
Includes marks on held-for-sale positions, including unfunded commitments, in the bridge financing portfolio.




Lending- and deposit-related fees
The following table presents the components of lending- and deposit-related fees.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
Lending-related feesLending-related fees$370 $288 $728 $579 Lending-related fees$362 $358 
Deposit-related feesDeposit-related fees1,390 1,143 2,719 2,558 Deposit-related fees1,477 1,329 
Total lending- and deposit-related feesTotal lending- and deposit-related fees$1,760 $1,431 $3,447 $3,137 Total lending- and deposit-related fees$1,839 $1,687 
Asset management, administration and commissions
The following table presents the components of asset management, administration and commissions.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
Asset management feesAsset management feesAsset management fees
Investment management fees(a)
Investment management fees(a)
$3,421 $2,717 $6,678 $5,502 
Investment management fees(a)
$3,562 $3,257 
All other asset management fees(b)
All other asset management fees(b)
95 75 189 168 
All other asset management fees(b)
90 94 
Total asset management feesTotal asset management fees3,516 2,792 6,867 5,670 Total asset management fees3,652 3,351 
Total administration fees(c)
Total administration fees(c)
650 546 1,283 1,100 
Total administration fees(c)
633 633 
Commissions and other feesCommissions and other feesCommissions and other fees
Brokerage commissions(d)
Brokerage commissions(d)
761 715 1,561 1,579 
Brokerage commissions(d)
810 800 
All other commissions and feesAll other commissions and fees267 213 512 457 All other commissions and fees267 245 
Total commissions and feesTotal commissions and fees1,028 928 2,073 2,036 Total commissions and fees1,077 1,045 
Total asset management, administration and commissionsTotal asset management, administration and commissions$5,194 $4,266 $10,223 $8,806 Total asset management, administration and commissions$5,362 $5,029 
(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.
(d)Represents commissions earned when the Firm acts as a broker, by facilitating its clients’ purchases and sales of securities and other financial instruments.

125

Card income
The following table presents the components of card income:income.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
Interchange and merchant processing incomeInterchange and merchant processing income$5,974 $3,940 $10,842 $8,722 Interchange and merchant processing income$6,235 $4,868 
Rewards costs and partner paymentsRewards costs and partner payments(4,282)(2,816)(7,816)(6,398)Rewards costs and partner payments(4,870)(3,534)
Other card income(a)
Other card income(a)
(45)(150)(29)(355)
Other card income(a)
(390)16 
Total card incomeTotal card income$1,647 $974 $2,997 $1,969 Total card income$975 $1,350 
(a)Predominantly represents the amortization of account origination costs and annual fees.
Refer to Note 14 for further information on mortgage servicing rights, including risk management activities.fees and related income.
Refer to Note 16 for information on operating lease income included within other income.income.

112

Noninterest expense
Other expense
Other expense on the Firm’s Consolidated statements of income includedincludes the following:
Three months ended June 30,Six months ended June 30,
(in millions)2021202020212020
Legal expense$185 $118 $213 $315 
FDIC-related expense177 218 378 317 
Three months ended March 31,
(in millions)20222021
Legal expense$119 $28 
Note 6 – Interest income and Interest expense
Refer to Note 7 of JPMorgan Chase’s 20202021 Form 10-K for a description of JPMorgan Chase’s accounting policies regarding interest income and interest expense.
The following table presents the components of interest income and interest expense.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
Interest incomeInterest incomeInterest income
Loans(a)
Loans(a)
$10,145 $10,889 $20,332 $23,194 
Loans(a)
$10,633 $10,187 
Taxable securitiesTaxable securities1,577 2,154 3,182 4,387 Taxable securities1,979 1,605 
Non-taxable securities(b)
Non-taxable securities(b)
270 307 547 607 
Non-taxable securities(b)
245 277 
Total investment securities(a)
Total investment securities(a)
1,847 2,461 3,729 4,994 
Total investment securities(a)
2,224 1,882 
Trading assets - debt instrumentsTrading assets - debt instruments1,711 2,066 3,493 4,130 Trading assets - debt instruments1,767 1,782 
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements175 601 408 1,696 Federal funds sold and securities purchased under resale agreements397 233 
Securities borrowed(c)
Securities borrowed(c)
(90)

(175)(167)(23)
Securities borrowed(c)
(87)

(77)
Deposits with banksDeposits with banks103 70 168 639 Deposits with banks238 65 
All other interest-earning assets(d)
All other interest-earning assets(d)
203 200 402 643 
All other interest-earning assets(d)
324 199 
Total interest incomeTotal interest income$14,094 $16,112 $28,365 $35,273 Total interest income$15,496 $14,271 
Interest expenseInterest expenseInterest expense
Interest-bearing depositsInterest-bearing deposits$132 $349 $278 $1,924 Interest-bearing deposits$182 $146 
Federal funds purchased and securities loaned or sold under repurchase agreementsFederal funds purchased and securities loaned or sold under repurchase agreements60 131 75 918 Federal funds purchased and securities loaned or sold under repurchase agreements117 15 
Short-term borrowings(e)
Short-term borrowings(e)
33 124 66 275 
Short-term borrowings(e)
40 33 
Trading liabilities – debt and all other interest-bearing liabilities(c)(f)
Trading liabilities – debt and all other interest-bearing liabilities(c)(f)
51 (43)78 329 
Trading liabilities – debt and all other interest-bearing liabilities(c)(f)
191 27 
Long-term debtLong-term debt1,056 1,639 2,190 3,386 Long-term debt1,076 1,134 
Beneficial interest issued by consolidated VIEsBeneficial interest issued by consolidated VIEs21 59 48 149 Beneficial interest issued by consolidated VIEs18 27 
Total interest expenseTotal interest expense$1,353 $2,259 $2,735 $6,981 Total interest expense$1,624 $1,382 
Net interest incomeNet interest income$12,741 $13,853 $25,630 $28,292 Net interest income$13,872 $12,889 
Provision for credit lossesProvision for credit losses(2,285)10,473 (6,441)18,758 Provision for credit losses1,463 (4,156)
Net interest income after provision for credit lossesNet interest income after provision for credit losses$15,026 $3,380 $32,071 $9,534 Net interest income after provision for credit losses$12,409 $17,045 
(a)Includes the amortization/accretion of unearned income (e.g., purchase premiums/discounts and net deferred fees/costs).
(b)Represents securities which are tax-exempt for U.S. federal income tax purposes.
(c)Negative interest income is related to the impact of current interest rates combined with the fees paid on client-driven securities borrowed balances. The negative interest expense related to prime brokerage customer payables is recognized in interest expense and reported within trading liabilities - debt and all other interest-bearing liabilities.
(d)Includes interest earned on brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets which are classified in other assets on the Consolidated balance sheets.
(e)Includes commercial paper.
(f)All other interest-bearing liabilities includes interest expense on brokerage-related customer payables.
126113

Note 7 – Pension and other postretirement employee benefit plans
Refer to Note 8 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of JPMorgan Chase’s pension and OPEB plans.
The following table presents the components of net periodic benefit costs reported in the Consolidated statements of income for the Firm’s defined benefit pension, defined contribution and OPEB plans.
(in millions)Three months ended June 30,Six months ended June 30,
2021202020212020
Pension and OPEB plansPension and OPEB plans
Components of net periodic benefit cost, U.S. defined benefit pension plans
Benefits earned during the period$1 $1 $1 $1 
Interest cost on benefit obligations86 106 171 211 
Expected return on plan assets(129)(159)(258)(317)
Amortization:
Net (gain)/loss2 1 5 3 
Net periodic defined benefit plan cost/(credit), U.S. defined benefit pension plans(40)(51)(81)(102)
Other defined benefit pension and OPEB plans(20)(21)(38)(42)
Total net periodic defined benefit plan cost/(credit)(60)(72)(119)(144)
Total defined contribution plans350 321 671 620 
Total pension and OPEB cost included in noninterest expense$290 $249 $552 $476 
(in millions)Three months ended March 31,
20222021
Pension and OPEB plans
Total net periodic defined benefit plan cost/(credit)(64)(59)
Total defined contribution plans344 321 
Total pension and OPEB cost included in noninterest expense$280 $262 
The following table presentsAt March 31, 2022 and December 31, 2021, the fair values of plan assets for the Firm'sFirm’s defined benefit pension and OPEB plans.
(in billions)June 30,
2021		December 31, 2020
Fair value of plan assets
U.S. defined benefit pension plans$17.6 $17.6 
Other defined benefit pension and OPEB plans7.9 7.8 
plans were $23.7 billion and $25.7 billion, respectively.
127114

Note 8 – Employee share-based incentives
Refer to Note 9 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of the accounting policies and other information relating to employee share-based incentives.
The Firm recognized the following noncash compensation expense related to its various employee share-based incentive plans in its Consolidated statements of income.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
Cost of prior grants of RSUs, performance share units (“PSUs”) and stock options that are amortized over their applicable vesting periods$280 $276 $636 $610 
Cost of prior grants of restricted stock units ("RSUs"), performance share units (“PSUs”) and stock appreciation rights ("SARs") that are amortized over their applicable vesting periodsCost of prior grants of restricted stock units ("RSUs"), performance share units (“PSUs”) and stock appreciation rights ("SARs") that are amortized over their applicable vesting periods$271 $356 
Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employeesAccrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees463 526 1,011 836 Accrual of estimated costs of share-based awards to be granted in future periods, predominantly those to full-career eligible employees535 548 
Total noncash compensation expense related to employee share-based incentive plansTotal noncash compensation expense related to employee share-based incentive plans$743 $802 $1,647 $1,446 Total noncash compensation expense related to employee share-based incentive plans$806 $904 
In the first quarter of 2021,2022, in connection with its annual incentive grant for the 20202021 performance year, the Firm granted 1719 million RSUs and 678720 thousand PSUs with weighted-average grant date fair values of $137.38$151.06 per RSU and $136.94$149.99 per PSU.
128115

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, 2021,March 31, 2022, the investment securities portfolio consisted of debt securities with an average credit rating of AA+ (based upon external ratings where available, and where not available, based primarily upon internal risk ratings).
During the second quarter of 2021,In April 2022, the Firm transferred $104.5$65.9 billion of investment securities from AFS to HTM for capital management purposes. AOCI included pretax unrealized gainslosses of $425 million$4.7 billion on the securities at the date of transfer.
Refer to Note 10 of JPMorgan Chase’s 20202021 Form 10-K for additional information regarding the investment securities portfolio.
The amortized costs and estimated fair values of the investment securities portfolio were as follows for the dates indicated.
June 30, 2021December 31, 2020March 31, 2022December 31, 2021
(in millions)(in millions)
Amortized cost(c)(d)
Gross unrealized gainsGross unrealized lossesFair value
Amortized cost(c)(d)
Gross unrealized gainsGross unrealized lossesFair value(in millions)
Amortized cost(b)(c)
Gross unrealized gainsGross unrealized lossesFair value
Amortized cost(b)(c)
Gross unrealized gainsGross unrealized lossesFair value
Available-for-sale securitiesAvailable-for-sale securitiesAvailable-for-sale securities
Mortgage-backed securities:Mortgage-backed securities:Mortgage-backed securities:
U.S. GSEs and government agencies(a)
$72,088 $1,168 $574 $72,682 $110,979 $2,372 $50 $113,301 
U.S. GSEs and government agenciesU.S. GSEs and government agencies$94,270 $311 $4,681 $89,900 $72,800 $736 $993 $72,543 
Residential:Residential:Residential:
U.S.U.S.2,526 73 0 2,599 6,246 224 3 6,467 U.S.1,970 3 39 1,934 2,128 38 2 2,164 
Non-U.S.Non-U.S.4,335 36 0 4,371 3,751 20 5 3,766 Non-U.S.3,572 15 6 3,581 3,882 25 1 3,906 
CommercialCommercial2,437 44 10 2,471 2,819 71 34 2,856 Commercial5,013 — 108 4,905 4,944 22 17 4,949 
Total mortgage-backed securitiesTotal mortgage-backed securities81,386 1,321 584 82,123 123,795 2,687 92 126,390 Total mortgage-backed securities104,825 329 4,834 100,320 83,754 821 1,013 83,562 
U.S. Treasury and government agenciesU.S. Treasury and government agencies99,905 713 771 99,847 199,910 2,141 100 201,951 U.S. Treasury and government agencies170,683 417 5,138 165,962 178,038 668 1,243 177,463 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities17,249 1,208 2 18,455 18,993 1,404 1 20,396 Obligations of U.S. states and municipalities14,561 377 152 14,786 14,890 972 2 15,860 
Non-U.S. government debt securitiesNon-U.S. government debt securities17,649 128 37 17,740 22,587 354 13 22,928 Non-U.S. government debt securities16,463 58 220 16,301 16,163 92 46 16,209 
Corporate debt securitiesCorporate debt securities214 9 7 216 215 4 3 216 Corporate debt securities376 — 20 356 332 8 19 321 
Asset-backed securities:Asset-backed securities:Asset-backed securities:
Collateralized loan obligationsCollateralized loan obligations8,808 12 4 8,816 10,055 24 31 10,048 Collateralized loan obligations10,554 4 85 10,473 9,674 6 18 9,662 
OtherOther4,899 67 2 4,964 6,174 91 16 6,249 Other4,660 35 18 4,677 5,403 47 2 5,448 
Total available-for-sale securitiesTotal available-for-sale securities230,110 3,458 1,407 232,161 381,729 6,705 256 388,178 Total available-for-sale securities322,122 1,220 10,467 312,875 308,254 2,614 2,343 308,525 
Held-to-maturity securities(b)(a)
Held-to-maturity securities(b)(a)
Held-to-maturity securities(b)(a)
Mortgage-backed securities:Mortgage-backed securities:Mortgage-backed securities:
U.S. GSEs and government agencies(a)
105,539 1,855 396 106,998 107,889 2,968 29 110,828 
U.S. GSEs and government agenciesU.S. GSEs and government agencies98,079 258 5,117 93,220 102,556 1,400 853 103,103 
U.S. ResidentialU.S. Residential6,805 5 35 6,775 4,345 8 30 4,323 U.S. Residential9,377 1 462 8,916 7,316 1 106 7,211 
CommercialCommercial3,582 28 5 3,605 2,602 77 0 2,679 Commercial5,378 6 278 5,106 3,730 11 54 3,687 
Total mortgage-backed securitiesTotal mortgage-backed securities115,926 1,888 436 117,378 114,836 3,053 59 117,830 Total mortgage-backed securities112,834 265 5,857 107,242 113,602 1,412 1,013 114,001 
U.S. Treasury and government agenciesU.S. Treasury and government agencies182,529 338 1,012 181,855 53,184 50 0 53,234 U.S. Treasury and government agencies187,240 — 9,750 177,490 185,204 169 2,103 183,270 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities13,515 493 0 14,008 12,751 519 0 13,270 Obligations of U.S. states and municipalities14,812 124 492 14,444 13,985 453 44 14,394 
Asset-backed securities:Asset-backed securities:Asset-backed securities:
Collateralized loan obligationsCollateralized loan obligations27,324 110 4 27,430 21,050 90 2 21,138 Collateralized loan obligations49,569 25 375 49,219 48,869 75 22 48,922 
OtherOther2,182 0 0 2,182 0 0 0 0 Other2,130 2 33 2,099 2,047 1 7 2,041 
Total held-to-maturity securitiesTotal held-to-maturity securities341,476 2,829 1,452 342,853 201,821 3,712 61 205,472 Total held-to-maturity securities366,585 416 16,507 350,494 363,707 2,110 3,189 362,628 
Total investment securities, net of allowance for credit lossesTotal investment securities, net of allowance for credit losses$571,586 $6,287 $2,859 $575,014 $583,550 $10,417 $317 $593,650 Total investment securities, net of allowance for credit losses$688,707 $1,636 $26,974 $663,369 $671,961 $4,724 $5,532 $671,153 
(a)Includes AFS U.S. GSE obligations with fair values of $46.4 billion and $65.8 billion, and HTM U.S. GSE obligations with amortized cost of $72.2 billion and $86.3 billion, at June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, 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 were $73.8 billion and $75.5 billion, and $44.3 billion and $44.5 billion, respectively.
(b)The Firm purchased $31.8$13.2 billion and $63.1$31.3 billion of HTM securities for the three and six months ended June 30,March 31, 2022 and 2021, respectively, and $4.8 billion and $5.0 billion for the three and six months ended June 30, 2020, respectively.
(c)(b)The amortized cost of investment securities is reported net of allowance for credit losses of $87$41 million and $78$42 million at June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively.
(d)(c)Excludes $1.8$2.0 billion and $2.1$1.9 billion of accrued interest receivables at June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively. The Firm did 0tnot reverse through interest income any accrued interest receivables for the three and six months ended June 30,March 31, 2022 and 2021. Refer to Note 10 of JPMorgan Chase’s 2021 and 2020.Form 10-K for further discussion of accounting policies for accrued interest receivables on investment securities.
129116

AFS securities impairment
The following tables present the fair value and gross unrealized losses by aging category for AFS securities at June 30, 2021March 31, 2022 and December 31, 2020.2021. The tables exclude U.S. Treasury and government agency securities and U.S. GSE and government agency MBS with unrealized losses of $1.3$9.8 billion and $150 million,$2.2 billion, at June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively; changes in the value of these securities are generally driven by changes in interest rates rather than changes in their credit profile given the explicit or implicit guarantees provided by the U.S. government.
Available-for-sale securities with gross unrealized lossesAvailable-for-sale securities with gross unrealized losses
Less than 12 months12 months or moreLess than 12 months12 months or more
June 30, 2021 (in millions)Fair valueGross
unrealized losses		Fair valueGross
unrealized losses		Total fair valueTotal gross unrealized losses
March 31, 2022 (in millions)March 31, 2022 (in millions)Fair valueGross
unrealized losses		Fair valueGross
unrealized losses		Total fair valueTotal gross unrealized losses
Available-for-sale securitiesAvailable-for-sale securitiesAvailable-for-sale securities
Mortgage-backed securities:Mortgage-backed securities:Mortgage-backed securities:
Residential:Residential:Residential:
U.S.
U.S.
$81 $0 $22 $0 $103 $0 
U.S.
$1,593 $38 $42 $1 $1,635 $39 
Non-U.S.Non-U.S.30 0 0 0 30 0 Non-U.S.2,349 6 — — 2,349 6 
CommercialCommercial186 4 367 6 553 10 Commercial4,406 86 336 22 4,742 108 
Total mortgage-backed securitiesTotal mortgage-backed securities297 4 389 6 686 10 Total mortgage-backed securities8,348 130 378 23 8,726 153 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities102 2 0 0 102 2 Obligations of U.S. states and municipalities1,456 152 — — 1,456 152 
Non-U.S. government debt securitiesNon-U.S. government debt securities6,084 32 388 5 6,472 37 Non-U.S. government debt securities8,631 157 916 63 9,547 220 
Corporate debt securitiesCorporate debt securities57 7 42 0 99 7 Corporate debt securities264 3 45 17 309 20 
Asset-backed securities:Asset-backed securities:Asset-backed securities:
Collateralized loan obligationsCollateralized loan obligations3,227 4 354 0 3,581 4 Collateralized loan obligations8,561 73 1,331 12 9,892 85 
OtherOther23 0 347 2 370 2 Other2,900 15 156 3 3,056 18 
Total available-for-sale securities with gross unrealized lossesTotal available-for-sale securities with gross unrealized losses$9,790 $49 $1,520 $13 $11,310 $62 Total available-for-sale securities with gross unrealized losses$30,160 $530 $2,826 $118 $32,986 $648 
Available-for-sale securities with gross unrealized lossesAvailable-for-sale securities with gross unrealized losses
Less than 12 months12 months or moreLess than 12 months12 months or more
December 31, 2020 (in millions)Fair valueGross
unrealized losses		Fair valueGross
unrealized losses		Total fair valueTotal gross unrealized losses
December 31, 2021 (in millions)December 31, 2021 (in millions)Fair valueGross
unrealized losses		Fair valueGross
unrealized losses		Total fair valueTotal gross unrealized losses
Available-for-sale securitiesAvailable-for-sale securitiesAvailable-for-sale securities
Mortgage-backed securities:Mortgage-backed securities:Mortgage-backed securities:
Residential:Residential:Residential:
U.S.U.S.$562 $3 $32 $0 $594 $3 U.S.$303 $1 $45 $1 $348 $2 
Non-U.S.Non-U.S.2,507 4 235 1 2,742 5 Non-U.S.133 1 — — 133 1 
CommercialCommercial699 18 124 16 823 34 Commercial2,557 5 349 12 2,906 17 
Total mortgage-backed securitiesTotal mortgage-backed securities3,768 25 391 17 4,159 42 Total mortgage-backed securities2,993 7 394 13 3,387 20 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities49 1 0 0 49 1 Obligations of U.S. states and municipalities120 2 — — 120 2 
Non-U.S. government debt securitiesNon-U.S. government debt securities2,709 9 968 4 3,677 13 Non-U.S. government debt securities5,060 37 510 9 5,570 46 
Corporate debt securitiesCorporate debt securities91 3 5 0 96 3 Corporate debt securities166 1 46 18 212 19 
Asset-backed securities:Asset-backed securities:Asset-backed securities:
Collateralized loan obligationsCollateralized loan obligations5,248 18 2,645 13 7,893 31 Collateralized loan obligations8,110 18 208 — 8,318 18 
OtherOther268 1 685 15 953 16 Other89 — 178 2 267 2 
Total available-for-sale securities with gross unrealized lossesTotal available-for-sale securities with gross unrealized losses$12,133 $57 $4,694 $49 $16,827 $106 Total available-for-sale securities with gross unrealized losses$16,538 $65 $1,336 $42 $17,874 $107 
130117

HTM securities – credit risk
Credit quality indicator
The primary credit quality indicator for HTM securities is the risk rating assigned to each security. At June 30, 2021both March 31, 2022 and December 31, 2020,2021, all HTM securities were rated investment grade and were current and accruing, with approximately 97% and 98% rated at least AA+, respectively..
Allowance for credit losses on investment securities
The allowance for credit losses on investment securities was $87$41 million and $23$94 million as of June 30,March 31, 2022 and 2021, and 2020, respectively.
Refer to Note 10 of JPMorgan Chase’s 20202021 Form 10-K for further discussion of accounting policies for AFS and HTM securities.

Selected impacts of investment securities on the Consolidated statements of income
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
Realized gainsRealized gains$184 $624 $421 $1,719 Realized gains$13 $237 
Realized lossesRealized losses(339)(598)(562)(1,460)Realized losses(407)(223)
Investment securities gains/(losses)Investment securities gains/(losses)$(155)$26 $(141)$259 Investment securities gains/(losses)$(394)$14 
Provision for credit lossesProvision for credit losses$(7)$4 $9 $13 Provision for credit losses$(1)$16 
131118

Contractual maturities and yields
The following table presents the amortized cost and estimated fair value at June 30, 2021,March 31, 2022, of JPMorgan Chase’s investment securities portfolio by contractual maturity.
By remaining maturity June 30, 2021 (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
By remaining maturity March 31, 2022 (in millions)By remaining maturity March 31, 2022 (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 securitiesAvailable-for-sale securitiesAvailable-for-sale securities
Mortgage-backed securitiesMortgage-backed securitiesMortgage-backed securities
Amortized costAmortized cost$1 $2,285 $5,712 $73,391 $81,389 Amortized cost$5 $3,740 $4,314 $96,768 $104,827 
Fair valueFair value1 2,315 6,050 73,757 82,123 Fair value5 3,599 4,467 92,249 100,320 
Average yield(a)
Average yield(a)
0 %1.43 %1.77 %2.36 %2.29 %
Average yield(a)
0.27 %1.61 %1.93 %2.49 %2.43 %
U.S. Treasury and government agenciesU.S. Treasury and government agenciesU.S. Treasury and government agencies
Amortized costAmortized cost$2,168 $60,911 $28,155 $8,671 $99,905 Amortized cost$11,814 $136,391 $14,640 $7,838 $170,683 
Fair valueFair value2,187 61,190 27,776 8,694 99,847 Fair value11,803 132,200 13,921 8,038 165,962 
Average yield(a)
Average yield(a)
1.47 %0.49 %0.67 %0.46 %0.56 %
Average yield(a)
0.83 %0.59 %1.20 %0.85 %0.67 %
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalitiesObligations of U.S. states and municipalities
Amortized costAmortized cost$35 $167 $1,217 $15,830 $17,249 Amortized cost$13 $144 $1,408 $12,996 $14,561 
Fair valueFair value35 173 1,283 16,964 18,455 Fair value13 145 1,439 13,189 14,786 
Average yield(a)
Average yield(a)
3.72 %4.40 %4.88 %5.01 %4.99 %
Average yield(a)
4.09 %4.58 %4.84 %4.90 %4.89 %
Non-U.S. government debt securitiesNon-U.S. government debt securitiesNon-U.S. government debt securities
Amortized costAmortized cost$5,894 $4,589 $3,506 $3,660 $17,649 Amortized cost$6,901 $5,305 $3,453 $804 $16,463 
Fair valueFair value5,905 4,668 3,509 3,658 17,740 Fair value6,907 5,276 3,313 805 16,301 
Average yield(a)
Average yield(a)
1.75 %2.15 %0.81 %0.19 %1.34 %
Average yield(a)
2.67 %2.58 %1.12 %1.09 %2.24 %
Corporate debt securitiesCorporate debt securitiesCorporate debt securities
Amortized costAmortized cost$0 $141 $73 $0 $214 Amortized cost$— $362 $14 $— $376 
Fair valueFair value0 140 76 0 216 Fair value— 342 14 — 356 
Average yield(a)
Average yield(a)
0 %1.16 %2.29 %0 %1.54 %
Average yield(a)
— %11.08 %1.25 %— %10.71 %
Asset-backed securitiesAsset-backed securitiesAsset-backed securities
Amortized costAmortized cost$1,010 $1,419 $3,813 $7,465 $13,707 Amortized cost$2,000 $881 $3,155 $9,178 $15,214 
Fair valueFair value1,010 1,430 3,820 7,520 13,780 Fair value1,999 875 3,145 9,131 15,150 
Average yield(a)
Average yield(a)
1.20 %1.94 %1.33 %1.24 %1.34 %
Average yield(a)
1.48 %1.89 %1.34 %1.59 %1.54 %
Total available-for-sale securitiesTotal available-for-sale securitiesTotal available-for-sale securities
Amortized costAmortized cost$9,108 $69,512 $42,476 $109,017 $230,113 Amortized cost$20,733 $146,823 $26,984 $127,584 $322,124 
Fair valueFair value9,138 69,916 42,514 110,593 232,161 Fair value20,727 142,437 26,299 123,412 312,875 
Average yield(a)
Average yield(a)
1.63 %0.67 %1.01 %2.44 %1.61 %
Average yield(a)
1.51 %0.73 %1.51 %2.56 %1.57 %
Held-to-maturity securitiesHeld-to-maturity securitiesHeld-to-maturity securities
Mortgage-backed securitiesMortgage-backed securitiesMortgage-backed securities
Amortized costAmortized cost$0 $422 $12,046 $103,470 $115,938 Amortized cost$— $1,435 $11,279 $100,127 $112,841 
Fair valueFair value0 423 12,595 104,360 117,378 Fair value— 1,379 10,774 95,089 107,242 
Average yield(a)
Average yield(a)
0 %1.13 %2.39 %2.90 %2.84 %
Average yield(a)
— %1.88 %2.38 %2.82 %2.77 %
U.S. Treasury and government agenciesU.S. Treasury and government agenciesU.S. Treasury and government agencies
Amortized costAmortized cost$6,486 $104,920 $71,123 $0 $182,529 Amortized cost$29,406 $91,162 $66,672 $— $187,240 
Fair valueFair value6,489 104,732 70,634 0 181,855 Fair value29,221 86,797 61,472 — 177,490 
Average yield(a)
Average yield(a)
0.24 %0.62 %1.30 %0 %0.87 %
Average yield(a)
0.58 %0.74 %1.26 %— %0.90 %
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalitiesObligations of U.S. states and municipalities
Amortized costAmortized cost$35 $30 $766 $12,756 $13,587 Amortized cost$34 $76 $1,519 $13,215 $14,844 
Fair valueFair value36 30 808 13,134 14,008 Fair value34 72 1,526 12,812 14,444 
Average yield(a)
Average yield(a)
4.28 %2.65 %3.81 %3.78 %3.78 %
Average yield(a)
3.75 %2.78 %3.79 %3.82 %3.81 %
Asset-backed securitiesAsset-backed securitiesAsset-backed securities
Amortized costAmortized cost$0 $0 $14,425 $15,081 $29,506 Amortized cost$— $— $13,503 $38,196 $51,699 
Fair valueFair value0 0 14,483 15,129 29,612 Fair value— — 13,475 37,843 51,318 
Average yield(a)
Average yield(a)
0 %0 %1.27 %1.30 %1.29 %
Average yield(a)
— %— %1.30 %1.37 %1.35 %
Total held-to-maturity securitiesTotal held-to-maturity securitiesTotal held-to-maturity securities
Amortized costAmortized cost$6,521 $105,372 $98,360 $131,307 $341,560 Amortized cost$29,440 $92,673 $92,973 $151,538 $366,624 
Fair valueFair value6,525 105,185 98,520 132,623 342,853 Fair value29,255 88,248 87,247 145,744 350,494 
Average yield(a)
Average yield(a)
0.26 %0.63 %1.45 %2.80 %1.69 %
Average yield(a)
0.59 %0.76 %1.44 %2.54 %1.66 %
(a)Average yield is computed using the effective yield of each security owned at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable. The effective yield excludes unscheduled principal prepayments; and accordingly, actual maturities of securities may differ from their contractual or expected maturities as certain securities may be prepaid. However, for certain callable debt securities, the average yield is calculated to the earliest call date.
(b)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 67 years for agency residential MBS, 4 years for agency residential collateralized mortgage obligations and 35 years for nonagency residential collateralized mortgage obligations.
132119

Note 10 – Securities financing activities
Refer to Note 11 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of accounting policies relating to securities financing activities. Refer to Note 3 for further information regarding securities borrowed and securities lending agreements for which the fair value option has been elected. Refer to Note 23 for further information regarding assets pledged and collateral received in securities financing agreements.
The table below summarizes the gross and net amounts of the Firm’s securities financing agreements as of June 30, 2021March 31, 2022 and December 31, 2020.2021. When the Firm has obtained an appropriate legal opinion with respect to a master netting agreement with a counterparty and where other relevant netting criteria under U.S. GAAP are met, the Firm nets, on the Consolidated balance sheets, the balances
outstanding under its securities financing agreements with the same counterparty. In addition, the Firm exchanges securities and/or cash collateral with its counterparty to reduce the economic exposure with the counterparty, but
such collateral is not eligible for net Consolidated balance sheet presentation. Where the Firm has obtained an appropriate legal opinion with respect to the counterparty master netting agreement, such collateral, along with securities financing balances that do not meet all these relevant netting criteria under U.S. GAAP, is presented in the table below as “Amounts not nettable on the Consolidated balance sheets,” and reduces the “Net amounts” presented. Where a legal opinion has not been either sought or obtained, the securities financing balances are presented gross in the “Net amounts” below.
June 30, 2021
(in millions)Gross amountsAmounts netted on the Consolidated balance sheetsAmounts presented on the Consolidated balance sheets
Amounts not nettable on the Consolidated balance sheets(b)
Net
amounts(c)
Assets
Securities purchased under resale agreements$567,378 $(306,391)$260,987 $(248,366)$12,621 
Securities borrowed189,212 (2,836)186,376 (132,533)53,843 
Liabilities
Securities sold under repurchase agreements$543,834 $(306,391)$237,443 $(214,872)$22,571 
Securities loaned and other(a)
54,042 (2,836)51,206 (50,960)246 
December 31, 2020
(in millions)Gross amountsAmounts netted on the Consolidated balance sheetsAmounts presented on the Consolidated balance sheets
Amounts not nettable on the Consolidated balance sheets(b)
Net
amounts(c)
Assets
Securities purchased under resale agreements$666,467 $(370,183)$296,284 $(273,206)$23,078 
Securities borrowed193,700 (33,065)160,635 (115,219)45,416 
Liabilities
Securities sold under repurchase agreements$578,060 $(370,183)$207,877 $(191,980)$15,897 
Securities loaned and other(a)
41,366 (33,065)8,301 (8,257)44 
(a)Includes securities-for-securities lending agreements of $45.5 billion and $3.4 billion at June 30, 2021 and December 31, 2020, respectively, accounted for at fair value, In transactions where the Firm is acting as lender. In the Consolidated balance sheets,lender in a securities-for-securities lending agreement and receives securities that can be pledged or sold as collateral, the Firm recognizes the securities received at fair value within other assets and the obligation to return those securities within accounts payable and other liabilities.liabilities on the Consolidated balance sheets.
March 31, 2022
(in millions)Gross amountsAmounts netted on the Consolidated balance sheetsAmounts presented on the Consolidated balance sheets
Amounts not nettable on the Consolidated balance sheets(b)
Net
amounts(c)
Assets
Securities purchased under resale agreements$637,234 $(335,359)$301,875 $(289,272)$12,603 
Securities borrowed269,303 (44,451)224,852 (168,087)56,765 
Liabilities
Securities sold under repurchase agreements$553,011 $(335,359)$217,652 $(189,969)$27,683 
Securities loaned and other(a)
57,991 (44,451)13,540 (13,209)331 
December 31, 2021
(in millions)Gross amountsAmounts netted on the Consolidated balance sheetsAmounts presented on the Consolidated balance sheets
Amounts not nettable on the Consolidated balance sheets(b)
Net
amounts(c)
Assets
Securities purchased under resale agreements$604,724 $(343,093)$261,631 $(245,588)$16,043 
Securities borrowed250,333 (44,262)206,071 (154,599)51,472 
Liabilities
Securities sold under repurchase agreements$532,899 $(343,093)$189,806 $(166,456)$23,350 
Securities loaned and other(a)
52,610 (44,262)8,348 (8,133)215 
(a)Includes securities-for-securities lending agreements of $8.0 billion and $5.6 billion at March 31, 2022 and December 31, 2021, respectively, accounted for at fair value, where the Firm is acting as lender.
(b)In some cases, collateral exchanged with a counterparty exceeds the net asset or liability balance with that counterparty. In such cases, the amounts reported in this column are limited to the related net asset or liability with that counterparty.
(c)Includes securities financing agreements that provide collateral rights, but where an appropriate legal opinion with respect to the master netting agreement has not been either sought or obtained. At June 30, 2021March 31, 2022 and December 31, 2020,2021, included $9.5$8.6 billion and $17.0$13.9 billion, respectively, of securities purchased under resale agreements; $49.7$50.6 billion and $42.1$46.4 billion, respectively, of securities borrowed; $21.2$26.0 billion and $14.5$21.6 billion, respectively, of securities sold under repurchase agreements; and $56$185 million and $8$198 million, respectively, of securities loaned and other.
133120

The tables below present as of June 30, 2021,March 31, 2022, and December 31, 20202021 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, 2021December 31, 2020March 31, 2022December 31, 2021
(in millions) (in millions)Securities sold under repurchase agreementsSecurities loaned and otherSecurities sold under repurchase agreementsSecurities loaned and other (in millions)Securities sold under repurchase agreementsSecurities loaned and otherSecurities sold under repurchase agreementsSecurities loaned and other
Mortgage-backed securitiesMortgage-backed securitiesMortgage-backed securities
U.S. GSEs and government agenciesU.S. GSEs and government agencies$21,735 $0 $56,744 $0 U.S. GSEs and government agencies$33,274 $— $37,046 $— 
Residential - nonagencyResidential - nonagency397 0 1,016 0 Residential - nonagency1,169 — 1,508 — 
Commercial - nonagencyCommercial - nonagency1,058 0 855 0 Commercial - nonagency1,443 — 1,463 — 
U.S. Treasury, GSEs and government agenciesU.S. Treasury, GSEs and government agencies267,937 79 315,834 143 U.S. Treasury, GSEs and government agencies240,145 2,193 241,578 358 
Obligations of U.S. states and municipalitiesObligations of U.S. states and municipalities1,739 1 1,525 2 Obligations of U.S. states and municipalities2,274 7 1,916 7 
Non-U.S. government debtNon-U.S. government debt174,777 2,984 157,563 1,730 Non-U.S. government debt189,535 2,134 174,971 1,572 
Corporate debt securitiesCorporate debt securities36,166 1,951 22,849 1,864 Corporate debt securities46,671 2,783 38,180 1,619 
Asset-backed securitiesAsset-backed securities550 230 694 0 Asset-backed securities1,345 5 1,211 — 
Equity securitiesEquity securities39,475 48,797 20,980 37,627 Equity securities37,155 50,869 35,026 49,054 
TotalTotal$543,834 $54,042 $578,060 $41,366 Total$553,011 $57,991 $532,899 $52,610 
Remaining contractual maturity of the agreementsRemaining contractual maturity of the agreements
Overnight and continuousGreater than
90 days		Overnight and continuousGreater than
90 days
June 30, 2021 (in millions)Up to 30 days30 – 90 daysTotal
March 31, 2022 (in millions)March 31, 2022 (in millions)Overnight and continuousUp to 30 days30 – 90 daysGreater than
90 days		Total
Total securities sold under repurchase agreementsTotal securities sold under repurchase agreements$233,090 $214,617 $38,442 $57,685 $543,834 Total securities sold under repurchase agreements$205,272 $57,245 $553,011 
Total securities loaned and otherTotal securities loaned and other52,547 117 1,001 377 54,042 Total securities loaned and other56,975 124 489 403 57,991 
Remaining contractual maturity of the agreementsRemaining contractual maturity of the agreements
Overnight and continuousGreater than
90 days		Overnight and continuousGreater than
90 days
December 31, 2020 (in millions)Up to 30 days30 – 90 daysTotal
December 31, 2021 (in millions)December 31, 2021 (in millions)Overnight and continuousUp to 30 days30 – 90 daysGreater than
90 days		Total
Total securities sold under repurchase agreementsTotal securities sold under repurchase agreements$238,667 $230,980 $70,777 $37,636 $578,060 Total securities sold under repurchase agreements$231,171 $47,201 $532,899 
Total securities loaned and otherTotal securities loaned and other37,887 1,647 500 1,332 41,366 Total securities loaned and other50,034 1,701 — 875 52,610 
Transfers not qualifying for sale accounting
At June 30, 2021,March 31, 2022, and December 31, 2020,2021, the Firm held $442$415 million and $598$440 million, 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.
134121

Note 11 – Loans
Loan accounting framework
The accounting for a loan depends on management’s strategy for the loan. The Firm accounts for loans based on the following categories:
•Originated or purchased loans held-for-investment (i.e., “retained”)
•Loans held-for-sale
•Loans at fair value
Refer to Note 12 of JPMorgan Chase's 20202021 Form 10-K for a detailed discussion of loans, including accounting policies. Refer to Note 3 of this Form 10-Q for further information on the Firm's elections of fair value accounting under the fair value option. Refer to Note 2 of this Form 10-Q for information on loans carried at fair value and classified as trading assets.
Loan portfolio
The Firm’s loan portfolio is divided into 3 portfolio segments, which are the same segments used by the Firm to determine the allowance for loan losses: Consumer, excluding credit card; Credit card; and Wholesale. Within each portfolio segment the Firm monitors and assesses the credit risk in the following classes of loans, based on the risk characteristics of each loan class.
Consumer, excluding
credit card		Credit card
Wholesale(c)(d)
• Residential real estate(a)
• Auto and other(b)
• Credit card loans
• Secured by real estate
• Commercial and industrial
• Other(e)
(a)Includes scored mortgage and home equity loans held in CCB and AWM,and scored mortgage loans held in CIB and Corporate.
(b)Includes scored auto and business banking loans and overdrafts.
(c)Includes loans held in CIB, CB, AWM, Corporate as well as risk-rated loans held in CCB, including business banking and auto dealer loans for which the wholesale methodology is applied when determining the allowance for loan losses.
(d)The wholesale portfolio segment's classes align with loan classifications as defined by the bank regulatory agencies, based on the loan's collateral, purpose, and type of borrower.
(e)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Global Private Bank clients within AWM). Refer to Note 14 of JPMorgan Chase’s 20202021 Form 10-K for more information on SPEs.
The following tables summarize the Firm’s loan balances by portfolio segment.
June 30, 2021Consumer, excluding credit cardCredit cardWholesale
Total(a)(b)
March 31, 2022March 31, 2022Consumer, excluding credit cardCredit cardWholesale
Total(a)(b)
(in millions)(in millions)Consumer, excluding credit cardCredit cardWholesale
Total(a)(b)
(in millions)
RetainedRetainedRetained$296,161 $152,283 $569,953 $1,018,397 
Held-for-saleHeld-for-sale1,075 723 13,715 15,513 Held-for-sale808 — 5,617 6,425 
At fair valueAt fair value30,879 0 30,897 61,776 At fair value15,520 — 32,943 48,463 
TotalTotal$329,685 $141,802 $569,467 $1,040,954 Total$312,489 $152,283 $608,513 $1,073,285 
December 31, 2020Consumer, excluding credit cardCredit cardWholesale
Total(a)(b)
December 31, 2021December 31, 2021Consumer, excluding credit cardCredit cardWholesale
Total(a)(b)
(in millions)(in millions)Consumer, excluding credit cardCredit cardWholesale
Total(a)(b)
(in millions)
RetainedRetainedRetained$295,556 $154,296 $560,354 $1,010,206 
Held-for-saleHeld-for-sale1,305 784 5,784 7,873 Held-for-sale1,287 — 7,401 8,688 
At fair valueAt fair value15,147 0 29,327 44,474 At fair value26,463 — 32,357 58,820 
TotalTotal$318,579 $144,216 $550,058 $1,012,853 Total$323,306 $154,296 $600,112 $1,077,714 
(a)Excludes $2.8 billion and $2.9$2.7 billion of accrued interest receivables at June 30, 2021,March 31, 2022, and December 31, 2020,2021, respectively. The Firm wrote off accrued interest receivables of $19$12 million and $34$13 million for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $32 million and $48 million for the six months ended June 30, 2021 and 2020, respectively.
(b)Loans (other than those for which the fair value option has been elected) are presented net of unamortized discounts and premiums and net deferred loan fees or costs. These amounts were not material as of June 30, 2021,March 31, 2022, and December 31, 2020.2021.


135122

The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-for-sale during the periods indicated. Loans that were reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of this table.
20212020
Three months ended June 30,
(in millions)		Consumer, excluding
credit card		Credit cardWholesaleTotalConsumer, excluding
credit card		Credit cardWholesaleTotal
Purchases$111 (b)(c)$0 $301 $412 $228 (b)(c)$0 $242 $470 
Sales0 0 8,751 8,751 24 0 3,549 3,573 
Retained loans reclassified to held-for-sale(a)
87 0 892 979 679 

0 282 961 
2021202020222021
Six months ended June 30,
(in millions)		Consumer, excluding
credit card		Credit cardWholesaleTotalConsumer, excluding
credit card		Credit cardWholesaleTotal
Three months ended March 31,
(in millions)		Three months ended March 31,
(in millions)		Consumer, excluding
credit card		Credit cardWholesaleTotalConsumer, excluding
credit card		Credit cardWholesaleTotal
PurchasesPurchases$302 (b)(c)$0 $527 $829 $1,400 (b)(c)$0 $628 $2,028 Purchases$119 (b)(c)$— $166 $285 $191 (b)(c)$— $226 $417 
SalesSales181 0 14,481 14,662 348 0 9,001 9,349 Sales47 — 9,707 9,754 181 — 5,730 5,911 
Retained loans reclassified to held-for-sale(a)
Retained loans reclassified to held-for-sale(a)
249 0 1,664 1,913 827 

0 751 1,578 
Retained loans reclassified to held-for-sale(a)
76 — 273 349 162 

— 772 934 
(a)Reclassifications of loans to held-for-sale are non-cash transactions.
(b)Predominantly includes purchases of residential real estate loans, including the Firm’s voluntary repurchases of certain delinquent loans from loan pools as permitted by Government National Mortgage Association (“Ginnie Mae”) guidelines for the three and six months ended June 30, 2021March 31, 2022 and 2020.2021. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, FHA, RHS, and/or VA.
(c)Excludes purchases of retained loans of $5.0$3.2 billion and $3.8$7.0 billion for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $12.0 billion and $7.4 billion for the six months ended June 30, 2021 and 2020, respectively, which are predominantly sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards.
Gains and losses on sales of loans
Net gains/(losses) on sales of loans and lending-related commitments (including adjustments to record loans and lending-related commitments held-for-sale at the lower of cost or fair value) recognized in noninterest revenue for the three and six months ended June 30, 2021March 31, 2022 was $62$38 million and $194 million, respectively, of which $47$34 million and $182 million, respectively, related to loans. Net gains/(losses)gains on sales of loans and lending-related commitments was $132 million for the three and six months ended June 30, 2020 was $725 million and $(188) million, respectively,March 31, 2021 of which $42$135 million and $(100) million, respectively, related to loans. In addition, the sale of loans may also result in write downs, recoveries or changes in the allowance recognized in the provision for credit losses.
Loan modifications
The Firm has granted various forms of assistance to customers and clients impacted by the COVID-19 pandemic, including payment deferrals and covenant modifications. The majority of the Firm’sFirm's COVID-19 related loan modifications havewere not been considered TDRs because:TDRs. Refer to Note 12 of JPMorgan Chase's 2021 Form 10-K for further information on the Firm's accounting policies for loan modifications.
•
they represent short-term or other insignificant modifications, whether under the Firm’s regular loan modification assessments or as permitted by regulatory guidance, or
•the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act.
To the extent that certain modifications do not meet any of the above criteria, the Firm accounts for them as TDRs.
As permitted by regulatory guidance, the Firm does not place loans with deferrals granted due to COVID-19 on nonaccrual status where such loans are not otherwise reportable as nonaccrual. The Firm considers expected losses of principal and accrued interest associated with all COVID-19 related loan modifications in its allowance for credit losses.
Assistance provided in response to the COVID-19 pandemic could delay the recognition of delinquencies, nonaccrual status, and net charge-offs for those customers who would have otherwise moved into past due or nonaccrual status.
136123

Consumer, excluding credit card loan portfolio
Consumer loans, excluding credit card loans, consist primarily of scored residential mortgages, home equity loans and lines of credit, auto and business banking loans, with a focus on serving the prime consumer credit market. The portfolio also includes home equity loans secured by junior liens, prime mortgage loans with an interest-only payment period and certain payment-option loans that may result in negative amortization.
The following table provides information about retained consumer loans, excluding credit card, by class.
(in millions)(in millions)June 30,
2021		December 31,
2020		(in millions)March 31,
2022		December 31,
2021
Residential real estateResidential real estate$218,031 $225,302 Residential real estate$227,926 $224,795 
Auto and other(a)
Auto and other(a)
79,700 76,825 
Auto and other(a)
68,235 70,761 
Total retained loansTotal retained loans$297,731 $302,127 Total retained loans$296,161 $295,556 
(a)At June 30, 2021March 31, 2022 and December 31, 2020,2021, included $16.7$2.9 billion and $19.2$5.4 billion of loans, respectively, in Business Banking under the PPP.
Delinquency rates are the primary credit quality indicator for consumer loans. Refer to Note 12 of JPMorgan Chase's 20202021 Form 10-K for further information on consumer credit quality indicators.



137124

Residential real estate
The following tables provide information on delinquency, which is the primary credit quality indicator for retained residential real estate loans.
(in millions, except ratios)(in millions, except ratios)June 30, 2021(in millions, except ratios)March 31, 2022
Term loans by origination year(d)
Revolving loansTotal
Term loans by origination year(d)
Revolving loansTotal
20212020201920182017Prior to 2017Within the revolving periodConverted to term loans20222021202020192018Prior to 2018Within the revolving periodConverted to term loans
Loan delinquency(a)(b)
Loan delinquency(a)(b)
Loan delinquency(a)(b)
CurrentCurrent$31,258$54,745$23,873$10,122$14,996$60,605$5,723$14,726$216,048Current$12,972$69,009$46,191$17,016$7,207$56,403$5,981$11,186$225,965
30–149 days past due30–149 days past due1141613539918579030–149 days past due—139132363012164864
150 or more days past due150 or more days past due02451889132701,193150 or more days past due—19171581282351,097
Total retained loansTotal retained loans$31,269$54,751$23,893$10,140$15,027$62,035$5,735$15,181$218,031Total retained loans$12,972$69,023$46,209$17,046$7,245$57,845$6,001$11,585$227,926
% of 30+ days past due to total retained loans(c)
% of 30+ days past due to total retained loans(c)
0.04 %0.01 %0.08 %0.18 %0.21 %2.25 %0.21 %3.00 %0.89 %
% of 30+ days past due to total retained loans(c)
— %0.02 %0.04 %0.18 %0.52 %2.43 %0.33 %3.44 %0.85 %
(in millions, except ratios)(in millions, except ratios)December 31, 2020(in millions, except ratios)December 31, 2021
Term loans by origination year(d)
Revolving loansTotal
Term loans by origination year(d)
Revolving loansTotal
20202019201820172016Prior to 2016Within the revolving periodConverted to term loans20212020201920182017Prior to 2017Within the revolving periodConverted to term loans
Loan delinquency(a)(b)
Loan delinquency(a)(b)
Loan delinquency(a)(b)
CurrentCurrent$56,576(e)$31,820$13,900$20,410$27,978$49,218(e)$7,370$15,792$223,064Current$68,742$48,334$18,428$7,929$11,684$49,147$6,392$11,807$222,463
30–149 days past due30–149 days past due925202229674212451,04530–149 days past due1323272257811182883
150 or more days past due150 or more days past due3141018844222641,193150 or more days past due—112125331,06962841,449
Total retained loansTotal retained loans$56,588$31,859$13,930$20,450$28,025$50,736$7,413$16,301$225,302Total retained loans$68,755$48,368$18,476$7,981$11,739$50,794$6,409$12,273$224,795
% of 30+ days past due to total retained loans(c)
% of 30+ days past due to total retained loans(c)
0.02 %0.12 %0.22 %0.20 %0.17 %2.91 %(e)0.58 %3.12 %0.98 %
% of 30+ days past due to total retained loans(c)
0.02 %0.07 %0.26 %0.65 %0.47 %3.18 %0.27 %3.80 %1.02 %
(a)Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $40$30 million and $36$35 million; 30–149 days past due included $11$13 million and $16$11 million; and 150 or more days past due included $21$22 million and $24$20 million at June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively.
(b)At June 30, 2021March 31, 2022 and December 31, 2020,2021, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent.
(c)At June 30, 2021March 31, 2022 and December 31, 2020,2021, residential real estate loans excluded mortgage loans insured by U.S. government agencies of $32$35 million and $40$31 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
(d)IncludesPurchased loans purchased based onare included in the year in which they were originated.
(e)Prior-period amounts have been revised to conform with the current presentation.
Approximately 36%37% of the total revolving loans are senior lien loans; the remaining balance are junior lien loans. The lien position the Firm holds is considered in the Firm’s allowance for credit losses. Revolving loans that have been converted to term loans have higher delinquency rates than those that are still within the revolving period. That is primarily because the fully-amortizing payment that is generally required for those products is higher than the minimum payment options available for revolving loans within the revolving period.
138125

Nonaccrual loans and other credit quality indicators
The following table provides information on nonaccrual and other credit quality indicators for retained residential real estate loans.
(in millions, except weighted-average data)(in millions, except weighted-average data)June 30, 2021December 31, 2020(in millions, except weighted-average data)March 31, 2022December 31, 2021
Nonaccrual loans(a)(b)(c)(d)
Nonaccrual loans(a)(b)(c)(d)
$5,060 $5,313 
Nonaccrual loans(a)(b)(c)(d)
$4,375 $4,759 
90 or more days past due and government guaranteed(e)
90 or more days past due and government guaranteed(e)
49 33 
90 or more days past due and government guaranteed(e)
27 24 
Current estimated LTV ratios(f)(g)(h)
Current estimated LTV ratios(f)(g)(h)
Current estimated LTV ratios(f)(g)(h)
Greater than 125% and refreshed FICO scores:Greater than 125% and refreshed FICO scores:Greater than 125% and refreshed FICO scores:
Equal to or greater than 660Equal to or greater than 660$4 $6 Equal to or greater than 660$3 $2 
Less than 660Less than 6607 12 Less than 6602 2 
101% to 125% and refreshed FICO scores:101% to 125% and refreshed FICO scores:101% to 125% and refreshed FICO scores:
Equal to or greater than 660Equal to or greater than 66024 38 Equal to or greater than 66024 37 
Less than 660Less than 66026 44 Less than 6609 15 
80% to 100% and refreshed FICO scores:80% to 100% and refreshed FICO scores:80% to 100% and refreshed FICO scores:
Equal to or greater than 660Equal to or greater than 6601,793 2,177 Equal to or greater than 6602,523 2,701 
Less than 660Less than 660132 239 Less than 66078 89 
Less than 80% and refreshed FICO scores:Less than 80% and refreshed FICO scores:Less than 80% and refreshed FICO scores:
Equal to or greater than 660Equal to or greater than 660200,924 208,238 Equal to or greater than 660214,298 209,295 
Less than 660Less than 66010,416 11,980 Less than 6609,201 9,658 
No FICO/LTV availableNo FICO/LTV available4,633 2,492 No FICO/LTV available1,723 2,930 
U.S. government-guaranteedU.S. government-guaranteed72 76 U.S. government-guaranteed65 66 
Total retained loansTotal retained loans$218,031 $225,302 Total retained loans$227,926 $224,795 
Weighted average LTV ratio(f)(i)
Weighted average LTV ratio(f)(i)
53 %54 %
Weighted average LTV ratio(f)(i)
50 %50 %
Weighted average FICO(g)(i)
Weighted average FICO(g)(i)
764 763 
Weighted average FICO(g)(i)
767 765 
Geographic region(j)
Geographic region(j)
Geographic region(j)
CaliforniaCalifornia$69,856 $73,444 California$71,174 $71,383 
New YorkNew York31,921 32,287 New York33,218 32,545 
FloridaFlorida14,655 13,981 Florida17,021 16,182 
TexasTexas13,284 13,773 Texas14,273 13,865 
IllinoisIllinois12,036 13,130 Illinois11,453 11,565 
ColoradoColorado8,113 8,235 Colorado9,159 8,885 
WashingtonWashington7,788 7,917 Washington8,392 8,292 
New JerseyNew Jersey6,864 7,227 New Jersey6,887 6,832 
MassachusettsMassachusetts5,829 5,784 Massachusetts6,230 6,105 
ConnecticutConnecticut5,010 5,024 Connecticut5,307 5,242 
All other(k)
All other(k)
42,675 44,500 
All other(k)
44,812 43,899 
Total retained loansTotal retained loans$218,031 $225,302 Total retained loans$227,926 $224,795 
(a)Includes collateral-dependent residential real estate loans that are charged down to the fair value of the underlying collateral less costs to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower (“Chapter 7 loans”) as collateral-dependent nonaccrual TDRs, regardless of their delinquency status. At June 30, 2021,March 31, 2022, approximately 7%5% of Chapter 7 residential real estate loans were 30 days or more past due.
(b)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral has subsequently improved,improves subsequent to charge down, the related allowance may be negative.
(c)Interest income on nonaccrual loans recognized on a cash basis was $41 million and $37 million and $86 million and $80$45 million for both the three and six months ended June 30,March 31, 2022 and 2021, and 2020, respectively.
(d)Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic. Includes loans to customers that have exited COVID-19 payment deferral programs and are 90 or more days past due, predominantly all of which were considered collateral-dependent at time of exit from COVID-19 payment deferral programs and charged down to the lower of amortized cost or fair value of the underlying collateral less costs to sell.
(e)These balances are 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, 2021March 31, 2022 and December 31, 2020,2021, these balances were no longer accruing interest based on the agreed-upon servicing guidelines. There were 0no 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, 2021March 31, 2022 and December 31, 2020.2021.
(f)Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.
(g)Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
(h)Prior-period amountsIncludes residential real estate loans, primarily held in LLCs in AWM that did not have a refreshed FICO score. These loans have been revised to conform withincluded in a FICO band based on management’s estimation of the current presentation.borrower’s credit quality.
(i)Excludes loans with no FICO and/or LTV data available.
(j)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at June 30, 2021.March 31, 2022.
(k)At June 30, 2021March 31, 2022 and December 31, 2020,2021, included mortgage loans insured by U.S. government agencies of $72$65 million and $76$66 million, respectively. These amounts have been excluded from the geographic regions presented based upon the government guarantee.
139126

Loan modifications
Modifications of residential real estate loans where the Firm grants concessions to borrowers who are experiencing financial difficulty are generally accounted for and reported as TDRs. Loans with short-term or other insignificant modifications that are not considered concessions are not TDRs nor are loans for which the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act.TDRs. The carrying value of new TDRs was $307$118 million and $196$251 million for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $558 million and $338 million for the six months ended June 30, 2021 and 2020, respectively. There were no additional commitments to lend to borrowers whose residential real estate loans have been modified in TDRs.
Nature and extent of modifications
The Firm’s proprietary modification programs as well as government programs, including U.S. GSE programs, generally provide various concessions to financially troubled borrowers including, but not limited to, interest rate reductions, term or payment extensions and delays of principal and/or interest payments that would otherwise have been required under the terms of the original agreement. The following table provides information about how residential real estate loans were modified in TDRs under the Firm’s loss mitigation programs described above during the periods presented. This table excludes Chapter 7 loans where the sole concession granted is the discharge of debt and loans with short-term or other insignificant modifications that are not considered concessions, and loans for which the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act.concessions.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
202120202021202020222021
Number of loans approved for a trial modificationNumber of loans approved for a trial modification1,165 849 2,566 2,845 Number of loans approved for a trial modification1,526 1,401 
Number of loans permanently modifiedNumber of loans permanently modified1,186 2,104 2,900 3,585 Number of loans permanently modified1,542 1,714 
Concession granted:(a)
Concession granted:(a)
Concession granted:(a)
Interest rate reductionInterest rate reduction78 %41 %74 %56 %Interest rate reduction64 %72 %
Term or payment extensionTerm or payment extension51 45 45 60 Term or payment extension77 40 
Principal and/or interest deferredPrincipal and/or interest deferred18 6 26 8 Principal and/or interest deferred13 31 
Principal forgivenessPrincipal forgiveness0 2 2 3 Principal forgiveness1 4 
Other(b)
Other(b)
34 72 44 65 
Other(b)
27 51 
(a)Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds 100% because predominantly all of the modifications include more than one type of concession. Concessions offered on trial modifications are generally consistent with those granted on permanent modifications.
(b)Includes variable interest rate to fixed interest rate modifications and payment delays that meet the definition of a TDR.
















140
127

Financial effects of modifications and redefaults
The following table provides information about the financial effects of the various concessions granted in modifications of residential real estate loans under the loss mitigation programs described above and about redefaults of certain loans modified in TDRs for the periods presented. The following table presents only the financial effects of permanent modifications and do not include temporary concessions offered through trial modifications. This table also excludes Chapter 7 loans where the sole concession granted is the discharge of debt and loans with short-term or other insignificant modifications that are not considered concessions, and loans for which the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act.concessions.
(in millions, except weighted-average data)(in millions, except weighted-average data)Three months ended June 30,Six months ended June 30,(in millions, except weighted-average data)Three months ended March 31,
202120202021202020222021
Weighted-average interest rate of loans with interest rate reductions – before TDRWeighted-average interest rate of loans with interest rate reductions – before TDR4.39 %5.00 %4.51 %5.13 %Weighted-average interest rate of loans with interest rate reductions – before TDR4.43 %4.57 %
Weighted-average interest rate of loans with interest rate reductions – after TDRWeighted-average interest rate of loans with interest rate reductions – after TDR2.85 3.36 2.90 3.42 Weighted-average interest rate of loans with interest rate reductions – after TDR3.31 2.91 
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDRWeighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR22212421Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR2324
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDRWeighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR36393839Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR3939
Charge-offs recognized upon permanent modificationCharge-offs recognized upon permanent modification$0 $2 $0 $2 Charge-offs recognized upon permanent modification$— $— 
Principal deferredPrincipal deferred6 4 18 9 Principal deferred7 12 
Principal forgivenPrincipal forgiven0 1 1 3 Principal forgiven1 1 
Balance of loans that redefaulted within one year of permanent modification(a)
Balance of loans that redefaulted within one year of permanent modification(a)
$21 $38 $45 $108 
Balance of loans that redefaulted within one year of permanent modification(a)
$43 $24 
(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 2 contractual payments past due. In the event that a modified loan redefaults, it will generally be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of loans modified within the last twelve months may not be representative of ultimate redefault levels.
At June 30, 2021,March 31, 2022, the weighted-average estimated remaining lives of residential real estate loans permanently modified in TDRs were 5 years. 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, 2021March 31, 2022 and December 31, 2020,2021, the Firm had residential real estate loans, excluding those insured by U.S. government agencies, with a carrying value of $743$767 million and $846$619 million, respectively, that were not included in REO, but were in the process of active or suspended foreclosure.
In response to the COVID-19 pandemic, the Firm has temporarily suspended certain foreclosure activities. This could delay recognition of foreclosed properties until the foreclosure moratoriums are lifted.


141128

Auto and other
The following tables provide information on delinquency, which is the primary credit quality indicator for retained auto and other consumer loans.
June 30, 2021March 31, 2022

(in millions, except ratios)
(in millions, except ratios)		Term Loans by origination yearRevolving loans
(in millions, except ratios)		Term Loans by origination yearRevolving loans
20212020201920182017Prior to 2017Within the revolving periodConverted to term loansTotal20222021202020192018Prior to 2018Within the revolving periodConverted to term loansTotal
Loan delinquency(a)
Loan delinquency(a)
Loan delinquency(a)
CurrentCurrent$28,153 (b)$29,038 (b)$9,968$5,361$2,972$1,444$2,300$134$79,370Current$7,272 $30,438 (b)$16,259(b)$6,435$3,009$1,800$2,223$117$67,553
30–119 days past due30–119 days past due56 59 694429141231230–119 days past due62 161 124684034116506
120 or more days past due120 or more days past due0 0 016918120 or more days past due— — 163—16176
Total retained loansTotal retained loans$28,209 $29,097 $10,037$5,406$3,002$1,474$2,320$155$79,700Total retained loans$7,334 $30,599 $16,546$6,503$3,049$1,835$2,240$129$68,235
% of 30+ days past due to total retained loans(a)% of 30+ days past due to total retained loans(a)0.20%0.20%0.69 %0.83 %1.00 %2.04 %0.86 %13.55 %0.41 %% of 30+ days past due to total retained loans(a)0.85 %0.52 %0.45 %1.05 %1.31 %1.91 %0.76 %9.30 %0.69 %
December 31, 2020December 31, 2021

(in millions, except ratios)
(in millions, except ratios)		Term Loans by origination yearRevolving loans
(in millions, except ratios)		Term Loans by origination yearRevolving loans
20202019201820172016Prior to 2016Within the revolving periodConverted to term loansTotal20212020201920182017Prior to 2017Within the revolving periodConverted to term loansTotal
Loan delinquency(a)
Loan delinquency(a)
Loan delinquency(a)
CurrentCurrent$46,169(c)$12,829$7,367$4,521$2,058$742$2,517$158$76,361Current$35,323(c)$18,324(c)$7,443$3,671$1,800$666$2,242$120$69,589
30–119 days past due30–119 days past due9710777534223301744630–119 days past due192720885331211261,123
120 or more days past due120 or more days past due000101818120 or more days past due—35—15749
Total retained loansTotal retained loans$46,266$12,936$7,444$4,575$2,100$766$2,555$183$76,825Total retained loans$35,515$19,079$7,531$3,724$1,832$688$2,259$133$70,761
% of 30+ days past due to total retained loans(a)% of 30+ days past due to total retained loans(a)0.21%0.83 %1.03 %1.18 %2.00 %3.13 %1.49 %13.66 %0.60 %% of 30+ days past due to total retained loans(a)0.54 %0.47 %1.17 %1.42 %1.75 %3.20 %0.75 %9.77 %0.71 %(d)
(a)At June 30, 2021March 31, 2022 and December 31, 2020,2021, auto and other loans under payment deferral programs offered in response toexcluded $213 million and $667 million, respectively, of PPP loans guaranteed by the COVID-19 pandemic whichSBA that are still within their deferral period and performing according to their modified terms are generally not considered delinquent.30 or more days past due. These amounts have been excluded based upon the SBA guarantee.
(b)At June 30, 2021, included $9.9Includes $2.5 billion of loans originated in 2021 and $6.8 billion$353 million of loans originated in 2020 in Business Banking under the PPP. PPP loans are guaranteed by the SBA. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans.
(c)At December 31, 2020, included $19.2Includes $4.4 billion of loans originated in 2021 and $1.0 billion of loans originated in 2020 in Business Banking under the PPP.
(d)Prior-period amount has been revised to conform with the current presentation.

142129

Nonaccrual and other credit quality indicators
The following table provides information on nonaccrual and other credit quality indicators for retained auto and other consumer loans.
(in millions, except ratios)(in millions, except ratios)Total Auto and other(in millions, except ratios)Total Auto and other
June 30, 2021December 31, 2020March 31, 2022December 31, 2021
Nonaccrual loans(a)(b)(c)
Nonaccrual loans(a)(b)(c)
123 151 
Nonaccrual loans(a)(b)(c)
110 119 
Geographic region(d)
Geographic region(d)
Geographic region(d)
CaliforniaCalifornia$12,728 $12,302 California$10,794 $11,163 
TexasTexas7,725 7,859 
New YorkNew York9,027 8,824 New York5,075 5,848 
Texas8,491 8,235 
FloridaFlorida5,064 4,668 Florida4,929 4,901 
IllinoisIllinois3,611 3,768 Illinois2,785 2,930 
New JerseyNew Jersey2,735 2,646 New Jersey2,274 2,355 
PennsylvaniaPennsylvania1,936 2,004 
ArizonaArizona2,332 2,465 Arizona1,789 1,887 
Ohio2,118 2,163 
Pennsylvania2,073 1,924 
Colorado1,935 1,910 
LouisianaLouisiana1,771 1,801 
GeorgiaGeorgia1,760 1,748 
All otherAll other29,586 27,920 All other27,397 28,265 
Total retained loansTotal retained loans$79,700 $76,825 Total retained loans$68,235 $70,761 
(a)At March 31, 2022 and December 31, 2021, nonaccrual loans excluded $179 million and $506 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA, of which $163 million and $35 million, respectively, were no longer accruing interest based on the guidelines set by the SBA. Typically the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting the guidelines set by the SBA. There were 0no loans that were not guaranteed by the SBA that are 90 or more days past due and still accruing interest at June 30, 2021March 31, 2022 and December 31, 2020.2021.
(b)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral has subsequently improved,improves subsequent to the charge down, the related allowance may be negative.
(c)Interest income on nonaccrual loans recognized on a cash basis was not material for the three and six months ended months ended June 30,March 31, 2022 and 2021 and 2020.
(d)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at June 30, 2021.March 31, 2022.
Loan modifications
Certain auto and other loan modifications are considered to be TDRs as they provide various concessions to borrowers who are experiencing financial difficulty. Loans with short-term or other insignificant modifications that are not considered concessions are not TDRs.
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, 2021March 31, 2022 and 2020.2021. Additional commitments to lend to borrowers whose loans have been modified in TDRs as of June 30, 2021March 31, 2022 and December 31, 20202021 were not material.


143130

Credit card loan portfolio
The credit card portfolio segment includes credit card loans originated and purchased by the Firm. Delinquency rates are the primary credit quality indicator for credit card loans.
Refer to Note 12 of JPMorgan Chase's 20202021 Form 10-K for further information on the credit card loan portfolio, including credit quality indicators.
The following tables provide information on delinquency, which is the primary credit quality indicator for retained credit card loans.

(in millions, except ratios)

(in millions, except ratios)
June 30, 2021

(in millions, except ratios)
March 31, 2022
Within the revolving period
Converted to term loans(b)
TotalWithin the revolving period
Converted to term loans(a)
Total
Loan delinquency(a)
Loan delinquency(a)
Loan delinquency(a)
Current and less than 30 days past due
and still accruing		Current and less than 30 days past due
and still accruing		$138,551 $1,100 $139,651 Current and less than 30 days past due
and still accruing		$149,811 $817 $150,628 
30–89 days past due and still accruing30–89 days past due and still accruing615 53 668 30–89 days past due and still accruing780 55 835 
90 or more days past due and still accruing90 or more days past due and still accruing733 27 760 90 or more days past due and still accruing791 29 820 
Total retained loansTotal retained loans$139,899 $1,180 $141,079 Total retained loans$151,382 $901 $152,283 
Loan delinquency ratiosLoan delinquency ratiosLoan delinquency ratios
% of 30+ days past due to total retained loans% of 30+ days past due to total retained loans0.96 %6.78 %1.01 %% of 30+ days past due to total retained loans1.04 %9.32 %1.09 %
% of 90+ days past due to total retained loans% of 90+ days past due to total retained loans0.52 2.29 0.54 % of 90+ days past due to total retained loans0.52 3.22 0.54 

(in millions, except ratios)

(in millions, except ratios)
December 31, 2020

(in millions, except ratios)
December 31, 2021
Within the revolving period
Converted to term loans(b)
TotalWithin the revolving period
Converted to term loans(a)
Total
Loan delinquency(a)
Loan delinquency(a)
Loan delinquency(a)
Current and less than 30 days past due
and still accruing		Current and less than 30 days past due
and still accruing		$139,783 $1,239 $141,022 Current and less than 30 days past due
and still accruing		$151,798 $901 $152,699 
30–89 days past due and still accruing30–89 days past due and still accruing997 94 1,091 30–89 days past due and still accruing770 59 829 
90 or more days past due and still accruing90 or more days past due and still accruing1,277 42 1,319 90 or more days past due and still accruing741 27 768 
Total retained loansTotal retained loans$142,057 $1,375 $143,432 Total retained loans$153,309 $987 $154,296 
Loan delinquency ratiosLoan delinquency ratiosLoan delinquency ratios
% of 30+ days past due to total retained loans% of 30+ days past due to total retained loans1.60 %9.89 %1.68 %% of 30+ days past due to total retained loans0.99 %8.71 %1.04 %
% of 90+ days past due to total retained loans% of 90+ days past due to total retained loans0.90 3.05 0.92 % of 90+ days past due to total retained loans0.48 2.74 0.50 
(a)At June 30, 2021 and December 31, 2020, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent.
(b)Represents TDRs.
Other credit quality indicators
The following table provides information on other credit quality indicators for retained credit card loans.
(in millions, except ratios)(in millions, except ratios)June 30, 2021December 31, 2020(in millions, except ratios)March 31, 2022December 31, 2021
Geographic region(a)
Geographic region(a)
Geographic region(a)
CaliforniaCalifornia$20,857 $20,921 California$22,865 $23,030 
TexasTexas14,535 14,544 Texas15,808 15,879 
New YorkNew York11,692 11,919 New York12,539 12,652 
FloridaFlorida9,299 9,562 Florida10,388 10,412 
IllinoisIllinois7,910 8,006 Illinois8,428 8,530 
New JerseyNew Jersey5,860 5,927 New Jersey6,273 6,367 
OhioOhio4,541 4,673 Ohio4,807 4,923 
ColoradoColorado4,562 4,573 
PennsylvaniaPennsylvania4,306 4,476 Pennsylvania4,548 4,708 
Colorado4,272 4,092 
MichiganMichigan3,426 3,553 Michigan3,682 3,773 
All otherAll other54,381 55,759 All other58,383 59,449 
Total retained loansTotal retained loans$141,079 $143,432 Total retained loans$152,283 $154,296 
Percentage of portfolio based on carrying value with estimated refreshed FICO scoresPercentage of portfolio based on carrying value with estimated refreshed FICO scoresPercentage of portfolio based on carrying value with estimated refreshed FICO scores
Equal to or greater than 660Equal to or greater than 66088.4 %85.9 %Equal to or greater than 66087.9 %88.5 %
Less than 660Less than 66011.4 13.9 Less than 66011.9 11.3 
No FICO availableNo FICO available0.2 0.2 No FICO available0.2 0.2 
(a)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at June 30, 2021.March 31, 2022.
144131

Loan modifications
The Firm may offer one of a number of loan modification programs granting concessions to credit card borrowers who are experiencing financial difficulty. The Firm grants concessions for most of the credit card loans under long-term programs. These modifications involve placing the customer on a fixed payment plan, generally for 60 months, and typically include reducing the interest rate on the credit card. Substantially all modifications under the Firm’s long-term programs are considered to be TDRs. Loans with short-term or other insignificant modifications that are not considered concessions are not TDRs.
If the cardholder does not comply with the modified payment terms, then the credit card loan continues to age and will ultimately be charged-off in accordance with the Firm’s standard charge-off policy. In most cases, the Firm does not reinstate the borrower’s line of credit.
Financial effects of 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. For all periods disclosed, new enrollments were less than 1% of total retained credit card loans.
(in millions, except
weighted-average data)		(in millions, except
weighted-average data)		Three months ended June 30,Six months ended June 30,(in millions, except
weighted-average data)		Three months ended March 31,
202120202021202020222021
Balance of new TDRs(a)
Balance of new TDRs(a)
$90$151$233$428
Balance of new TDRs(a)
$82$143
Weighted-average interest rate of loans – before TDRWeighted-average interest rate of loans – before TDR17.92 %17.93 %17.81 %18.50 %Weighted-average interest rate of loans – before TDR18.00 %17.74 %
Weighted-average interest rate of loans – after TDRWeighted-average interest rate of loans – after TDR5.15 5.16 5.20 4.42 Weighted-average interest rate of loans – after TDR4.87 5.23 
Balance of loans that redefaulted within one year of modification(b)
Balance of loans that redefaulted within one year of modification(b)
$13$25$32$61
Balance of loans that redefaulted within one year of modification(b)
$9$19
(a)Represents the outstanding balance prior to modification.
(b)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 2 consecutive contractual payments. Defaulted modified credit card loans remain in the modification program and continue to be charged off in accordance with the Firm’s standard charge-off policy.
145132

Wholesale loan portfolio
Wholesale loans include loans made to a variety of clients, ranging from large corporate and institutional clients, to small businesses and high-net-worth individuals. The primary credit quality indicator for wholesale loans is the
internal risk rating assigned to each loan. Refer to Note 12 of JPMorgan Chase’s 20202021 Form 10-K for further information on these risk ratings.
The following tables provide information on internal risk rating, which is the primary credit quality indicator for retained wholesale loans.
Secured by real estateCommercial and industrial
Other(a)
Total retained loansSecured by real estateCommercial and industrial
Other(b)
Total retained loans
(in millions, except ratios)(in millions, except ratios)Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		(in millions, except ratios)Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021
Loans by risk ratingsLoans by risk ratingsLoans by risk ratings
Investment-gradeInvestment-grade$88,617 $90,147 $71,509 $71,917 $226,874 $217,209 $387,000 $379,273 Investment-grade$94,158 $92,369 $77,254 $75,783 $239,775 $241,859 $411,187 $410,011 
Noninvestment-grade:Noninvestment-grade:Noninvestment-grade:
NoncriticizedNoncriticized24,840 26,129 53,017 57,870 43,896 33,053 121,753 117,052 Noncriticized21,982 22,495 68,923 62,039 52,679 52,440 143,584 136,974 
Criticized performingCriticized performing4,077 3,234 8,273 10,991 1,054 1,079 13,404 15,304 Criticized performing3,858 3,645 7,872 6,900 1,163 770 12,893 11,315 
Criticized nonaccrual(a)Criticized nonaccrual(a)489 483 1,413 1,931 796 904 2,698 3,318 Criticized nonaccrual(a)369 326 1,148 969 772 759 2,289 2,054 
Total noninvestment- grade29,406 29,846 62,703 70,792 45,746 35,036 137,855 135,674 
Total noninvestment-gradeTotal noninvestment-grade26,209 26,466 77,943 69,908 54,614 53,969 158,766 150,343 
Total retained loansTotal retained loans$118,023 $119,993 $134,212 $142,709 $272,620 $252,245 $524,855 $514,947 Total retained loans$120,367 $118,835 $155,197 $145,691 $294,389 $295,828 $569,953 $560,354 
% of investment-grade to total retained loans% of investment-grade to total retained loans75.08 %75.13 %53.28 %50.39 %83.22 %86.11 %73.73 %73.65 %% of investment-grade to total retained loans78.23 %77.73 %49.78 %52.02 %81.45 %81.76 %72.14 %73.17 %
% of total criticized to total retained loans% of total criticized to total retained loans3.87 3.10 7.22 9.05 0.68 0.79 3.07 3.62 % of total criticized to total retained loans3.51 3.34 5.81 5.40 0.66 0.52 2.66 2.39 
% of criticized nonaccrual to total retained loans% of criticized nonaccrual to total retained loans0.41 0.40 1.05 1.35 0.29 0.36 0.51 0.64 % of criticized nonaccrual to total retained loans0.31 0.27 0.74 0.67 0.26 0.26 0.40 0.37 
Secured by real estate

(in millions)		June 30, 2021
Term loans by origination yearRevolving loans
20212020201920182017Prior to 2017Within the revolving periodConverted to term loansTotal
Loans by risk ratings
Investment-grade$9,394 $15,951 $18,482 $10,350 $8,962 $24,226 $1,244 $8 $88,617 
Noninvestment-grade1,222 3,342 4,142 3,655 2,559 14,047 438 1 29,406 
Total retained loans$10,616 $19,293 $22,624 $14,005 $11,521 $38,273 $1,682 $9 $118,023 
(a)At March 31, 2022 and December 31, 2021 nonaccrual loans excluded $57 million and $127 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA, predominantly in commercial and industrial.
Secured by real estate

(in millions)		December 31, 2020
Term loans by origination yearRevolving loans
20202019201820172016Prior to 2016Within the revolving periodConverted to term loansTotal
Loans by risk ratings
Investment-grade$16,560 $19,575 $12,192 $11,017 $13,439 $16,266 $1,098 $0 $90,147 
Noninvestment-grade3,327 4,339 4,205 2,916 2,575 11,994 489 1 29,846 
Total retained loans$19,887 $23,914 $16,397 $13,933 $16,014 $28,260 $1,587 $1 $119,993 
(b)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Global Private Bank clients within AWM). Refer to Note 14 of JPMorgan Chase’s 2021 Form 10-K for more information on SPEs.
Commercial and industrialSecured by real estate

(in millions)
(in millions)		June 30, 2021
(in millions)		March 31, 2022
Term loans by origination yearRevolving loansTerm loans by origination yearRevolving loans
20212020201920182017Prior to 2017Within the revolving periodConverted to term loansTotal20222021202020192018Prior to 2018Within the revolving periodConverted to term loansTotal
Loans by risk ratingsLoans by risk ratingsLoans by risk ratings
Investment-gradeInvestment-grade$15,656 $10,269 $4,965 $2,266 $1,669 $1,413 $35,270 $1 $71,509 (b)Investment-grade$6,743 $23,613 $15,729 $16,493 $7,171 $23,201 $1,200 $8 $94,158 
Noninvestment-gradeNoninvestment-grade7,170 9,503 6,126 3,537 1,440 2,355 32,493 79 62,703 Noninvestment-grade1,527 5,149 3,534 4,299 3,250 7,973 476 1 26,209 
Total retained loansTotal retained loans$22,826 $19,772 $11,091 $5,803 $3,109 $3,768 $67,763 $80 $134,212 Total retained loans$8,270 $28,762 $19,263 $20,792 $10,421 $31,174 $1,676 $9 $120,367 
Secured by real estate

(in millions)		December 31, 2021
Term loans by origination yearRevolving loans
20212020201920182017Prior to 2017Within the revolving periodConverted to term loansTotal
Loans by risk ratings
Investment-grade$23,346 $16,030 $17,265 $8,103 $7,325 $19,066 $1,226 $8 $92,369 
Noninvestment-grade5,364 3,826 4,564 3,806 2,834 5,613 458 1 26,466 
Total retained loans$28,710 $19,856 $21,829 $11,909 $10,159 $24,679 $1,684 $9 $118,835 


146133

Commercial and industrialCommercial and industrial

(in millions)
(in millions)		December 31, 2020
(in millions)		March 31, 2022
Term loans by origination yearRevolving loansTerm loans by origination yearRevolving loans
20202019201820172016Prior to 2016Within the revolving periodConverted to term loansTotal20222021202020192018Prior to 2018Within the revolving periodConverted to term loansTotal
Loans by risk ratingsLoans by risk ratingsLoans by risk ratings
Investment-gradeInvestment-grade$21,211 $7,304 $2,934 $1,748 $1,032 $1,263 $36,424 $1 $71,917 (c)Investment-grade$9,027 $13,819 $5,909 $3,107 $1,125 $1,612 $42,654 $1 $77,254 (a)
Noninvestment-gradeNoninvestment-grade15,060 8,636 5,131 2,104 497 2,439 36,852 73 70,792 Noninvestment-grade7,209 17,555 6,003 3,819 1,707 1,069 40,505 76 77,943 
Total retained loansTotal retained loans$36,271 $15,940 $8,065 $3,852 $1,529 $3,702 $73,276 $74 $142,709 Total retained loans$16,236 $31,374 $11,912 $6,926 $2,832 $2,681 $83,159 $77 $155,197 
Other(a)
Commercial and industrial

(in millions)
(in millions)		June 30, 2021
(in millions)		December 31, 2021
Term loans by origination yearRevolving loansTerm loans by origination yearRevolving loans
20212020201920182017Prior to 2017Within the revolving periodConverted to term loansTotal20212020201920182017Prior to 2017Within the revolving periodConverted to term loansTotal
Loans by risk ratingsLoans by risk ratingsLoans by risk ratings
Investment-gradeInvestment-grade$16,199 $20,538 $7,530 $3,913 $5,159 $13,750 $159,224 $561 $226,874 Investment-grade$21,342 $6,268 $3,609 $1,269 $1,108 $819 $41,367 $1 $75,783 (b)
Noninvestment-gradeNoninvestment-grade9,844 3,369 1,991 1,340 441 891 27,845 25 45,746 Noninvestment-grade19,314 7,112 4,559 2,177 930 430 35,312 74 69,908 
Total retained loansTotal retained loans$26,043 $23,907 $9,521 $5,253 $5,600 $14,641 $187,069 $586 $272,620 Total retained loans$40,656 $13,380 $8,168 $3,446 $2,038 $1,249 $76,679 $75 $145,691 
Other(a)

(in millions)		December 31, 2020
Term loans by origination yearRevolving loans
20202019201820172016Prior to 2016Within the revolving periodConverted to term loansTotal
Loans by risk ratings
Investment-grade$31,389 $10,169 $6,994 $6,206 $3,553 $12,595 $145,524 $779 $217,209 
Noninvestment-grade5,009 2,220 1,641 550 146 636 24,710 124 35,036 
Total retained loans$36,398 $12,389 $8,635 $6,756 $3,699 $13,231 $170,234 $903 $252,245 
(a)At March 31, 2022, $608 million of the $704 million total PPP loans in the wholesale portfolio were commercial and industrial. Of the $608 million, $411 million were originated in 2021 and $197 million were originated in 2020. PPP loans are guaranteed by the SBA and considered investment-grade. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans.
(b)At December 31, 2021, $1.1 billion of the $1.3 billion total PPP loans in the wholesale portfolio were commercial and industrial. Of the $1.1 billion, $698 million were originated in 2021 and $396 million were originated in 2020.

Other(a)

(in millions)		March 31, 2022
Term loans by origination yearRevolving loans
20222021202020192018Prior to 2018Within the revolving periodConverted to term loansTotal
Loans by risk ratings
Investment-grade$14,015 $19,822 $16,545 $5,423 $2,723 $9,698 $168,991 $2,558 $239,775 
Noninvestment-grade6,264 11,273 2,559 1,519 847 649 31,498 5 54,614 
Total retained loans$20,279 $31,095 $19,104 $6,942 $3,570 $10,347 $200,489 $2,563 $294,389 
Other(a)

(in millions)		December 31, 2021
Term loans by origination yearRevolving loans
20212020201920182017Prior to 2017Within the revolving periodConverted to term loansTotal
Loans by risk ratings
Investment-grade$26,782 $17,829 $6,125 $2,885 $3,868 $7,651 $176,118 $601 $241,859 
Noninvestment-grade16,905 2,399 1,455 935 218 467 31,585 5 53,969 
Total retained loans$43,687 $20,228 $7,580 $3,820 $4,086 $8,118 $207,703 $606 $295,828 
(a)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Global Private Bank clients within AWM). Refer to Note 14 of JPMorgan Chase’s 20202021 Form 10-K for more information on SPEs.
(b)At June 30, 2021, $5.3 billion of the $5.8 billion total PPP loans in the wholesale portfolio were commercial and industrial. Of the $5.3 billion, $1.4 billion were originated in 2021 and $3.9 billion were originated in 2020. PPP loans are guaranteed by the SBA and considered investment-grade. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans.
(c)At December 31, 2020, $7.4 billion of the $8.0 billion total PPP loans in the wholesale portfolio were commercial and industrial.
134

The following table presents additional information on retained loans secured by real estate, which consists of loans secured wholly or substantially by a lien or liens on real property at origination.

(in millions, except ratios)		MultifamilyOther commercialTotal retained loans secured by real estate
Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020
Retained loans secured by real estate$72,341 $73,078 $45,682 $46,915 $118,023 $119,993 
Criticized1,594 1,144 2,972 2,573 4,566 3,717 
% of total criticized to total retained loans secured by real estate2.20 %1.57 %6.51 %5.48 %3.87 %3.10 %
Criticized nonaccrual$84 $56 $405 $427 $489 $483 
% of criticized nonaccrual loans to total retained loans secured by real estate0.12 %0.08 %0.89 %0.91 %0.41 %0.40 %

147


(in millions, except ratios)		MultifamilyOther commercialTotal retained loans secured by real estate
Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021
Retained loans secured by real estate$75,194 $73,801 $45,173 $45,034 $120,367 $118,835 
Criticized1,850 1,671 2,377 2,300 4,227 3,971 
% of criticized to total retained loans secured by real estate2.46 %2.26 %5.26 %5.11 %3.51 %3.34 %
Criticized nonaccrual$82 $91 $287 $235 $369 $326 
% of criticized nonaccrual loans to total retained loans secured by real estate0.11 %0.12 %0.64 %0.52 %0.31 %0.27 %
Geographic distribution and delinquency
The following table provides information on the geographic distribution and delinquency for retained wholesale loans.
Secured by real estateCommercial
 and industrial		OtherTotal
 retained loans		Secured by real estateCommercial
 and industrial		OtherTotal
 retained loans
(in millions,
except ratios)		(in millions,
except ratios)		Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		(in millions,
except ratios)		Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021
Loans by geographic distribution(a)
Loans by geographic distribution(a)
Loans by geographic distribution(a)
Total U.S.Total U.S.$115,043 $116,990 $98,570 $109,273 $192,922 $180,583 $406,535 $406,846 Total U.S.$117,246 $115,732 $112,021 $106,449 $209,556 $215,750 $438,823 $437,931 
Total non-U.S.Total non-U.S.2,980 3,003 35,642 33,436 79,698 71,662 118,320 108,101 Total non-U.S.3,121 3,103 43,176 39,242 84,833 80,078 131,130 122,423 
Total retained loansTotal retained loans$118,023 $119,993 $134,212 $142,709 $272,620 $252,245 

$524,855 $514,947 Total retained loans$120,367 $118,835 $155,197 $145,691 $294,389 $295,828 

$569,953 $560,354 
Loan delinquency(b)
Loan delinquency(b)
Loan delinquency(b)
Current and less than 30 days past due and still accruingCurrent and less than 30 days past due and still accruing$117,315 $118,894 $131,948 $140,100 $270,458 $249,713 

$519,721 $508,707 Current and less than 30 days past due and still accruing$119,596 $118,163 $152,687 $143,459 $292,146 $293,358 

$564,429 $554,980 
30–89 days past due and still accruing30–89 days past due and still accruing200 601 822 658 1,308 1,606 2,330 2,865 30–89 days past due and still accruing392 331 1,282 1,193 1,373 1,590 3,047 3,114 
90 or more days past due and still accruing(c)(b)
90 or more days past due and still accruing(c)(b)
19 15 29 20 58 22 106 57 
90 or more days past due and still accruing(c)(b)
10 15 80 70 98 121 188 206 
Criticized nonaccrual(c)Criticized nonaccrual(c)489 483 1,413 1,931 796 904 2,698 3,318 Criticized nonaccrual(c)369 326 1,148 969 772 759 2,289 2,054 
Total retained loansTotal retained loans$118,023 $119,993 $134,212 $142,709 $272,620 $252,245 

$524,855 $514,947 Total retained loans$120,367 $118,835 $155,197 $145,691 $294,389 $295,828 

$569,953 $560,354 
(a)The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.
(b)At June 30, 2021 and December 31, 2020, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent. 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.
(c)Represents loans that are considered well-collateralized and therefore still accruing interest.
The following tables provide information about net charge-offs on retained wholesale loans.
Wholesale net charge-offs/(recoveries)Secured by real estateCommercial
 and industrial		OtherTotal
 retained loans
Three months ended June 30,
(in millions)		20212020202120202021202020212020
Net charge-offs/(recoveries)$1 $12 $2 $268 $7 $19 $10 $299 
Secured by real estateCommercial
 and industrial		OtherTotal
 retained loans
Six months ended June 30,
(in millions)		20212020202120202021202020212020
Net charge-offs/(recoveries)$1 $12 $52 $436 $10 $13 $63 $461 
(c)At March 31, 2022 and December 31, 2021 nonaccrual loans excluded $57 million and $127 million, respectively, of PPP loans 90 or more days past due and guaranteed by the SBA, predominantly in commercial and industrial.
Nonaccrual loans
The following table provides information on retained wholesale nonaccrual loans.

(in millions)
(in millions)		Secured by real estateCommercial
and industrial		OtherTotal
retained loans
(in millions)		Secured by real estateCommercial
and industrial		OtherTotal
retained loans
Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021
Nonaccrual loans(a)
Nonaccrual loans(a)
Nonaccrual loans(a)
With an allowanceWith an allowance$419 $351 $986 $1,667 $586 $800 $1,991 $2,818 With an allowance$290 $254 $699 $604 $554 $286 $1,543 $1,144 
Without an allowance(b)
70 132 427 264 210 104 707 500 
Without an allowance(a)
Without an allowance(a)
79 72 449 365 218 473 746 910 
Total nonaccrual loans(c)(b)
Total nonaccrual loans(c)(b)
$489 $483 $1,413 $1,931 $796 $904 $2,698 $3,318 
Total nonaccrual loans(c)(b)
$369 $326 $1,148 $969 $772 $759 $2,289 $2,054 
(a)Loans that were modified in response to the COVID-19 pandemic continue to be risk-rated in accordance with the Firm’s overall credit risk management framework. As of June 30, 2021, predominantly all of these loans were considered performing.
(b)When the discounted cash flows or collateral value equals or exceeds the amortized cost of the loan, the loan does not require an allowance. This typically occurs when the loans have been partially charged off and/or there have been interest payments received and applied to the loan balance.
(c)(b)Interest income on nonaccrual loans recognized on a cash basis was not material for the three and six months ended June 30, 2021March 31, 2022 and 2020.2021.
Loan modifications
Certain loan modifications are considered to be TDRs as they provide various concessions to borrowers who are experiencing financial difficulty. Loans with short-term or other insignificant modifications that are not considered concessions are not TDRs. New TDRs nor are loans for which the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Actwere $418 million and extended by the Consolidated Appropriations Act. The carrying value of TDRs was $1.1 billion and $954$428 million as of June 30,March 31, 2022, and 2021, and December 31, 2020, respectively. The carrying value of new TDRs was $224 million and $88 million for the three months ended June 30, 2021 and
2020, respectively, and $652 million and $164 million for the six months ended June 30, 2021 and 2020, respectively. The newNew TDRs for the three months ended June 30,March 31, 2022 and 2021 were primarily from Commercial and Industrial and Other loan modifications that generally includedreflected extending maturity dates. The new TDRs for the six months ended June 30, 2021 were primarily from Commercial and Industrial loan modifications that included extending maturity dates, covenant waivers and the receipt of assets in partial satisfaction of the loan.loan predominantly in the Commercial and Industrial loan class. The impact of these modifications resulting in new TDRs was not material to the Firm for the three and six months ended June 30,March 31, 2022 and 2021.

The carrying value of TDRs was $906 million and $607 million as of March 31, 2022, and December 31, 2021, and 2020.
respectively.
148135

Note 12 – Allowance for credit losses
The Firm's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Firm's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments.
Refer to Note 13 of JPMorgan Chase's 20202021 Form 10-K for a detailed discussion of the allowance for credit losses and the related accounting policies.

149136

Allowance for credit losses and related information
The table below summarizes information about the allowances for loancredit losses, and lending-related commitments, and includes a breakdown of loans and lending-related commitments by impairment methodology. Refer to Note 10 of JPMorgan Chase’s 20202021 Form 10-K and Note 9 of this Form 10-Q for further information on the allowance for credit losses on investment securities.
2021202020222021
Six months ended June 30,
(in millions)		Consumer, excluding
credit card		Credit cardWholesaleTotalConsumer, excluding credit cardCredit cardWholesaleTotal
Three months ended March 31,
(in millions)		Three months ended March 31,
(in millions)		Consumer, excluding
credit card		Credit cardWholesaleTotalConsumer, excluding credit cardCredit cardWholesaleTotal
Allowance for loan lossesAllowance for loan lossesAllowance for loan losses
Beginning balance at January 1,Beginning balance at January 1,$3,636 $17,800 $6,892 $28,328 $2,538 $5,683 $4,902 $13,123 Beginning balance at January 1,$1,765 $10,250 $4,371 $16,386 $3,636 $17,800 $6,892 $28,328 
Cumulative effect of a change in accounting principleNANA297 5,517 (1,642)4,172 
Gross charge-offsGross charge-offs308 2,213 135 2,656 425 2,863 491 3,779 Gross charge-offs204 720 52 976 166 1,214 88 1,468 
Gross recoveries collectedGross recoveries collected(318)(475)(72)(865)(348)(372)(30)(750)Gross recoveries collected(158)(214)(22)(394)(145)(231)(35)(411)
Net charge-offs/(recoveries)Net charge-offs/(recoveries)(10)1,738 63 1,791 77 2,491 461 3,029 Net charge-offs/(recoveries)46 506 30 582 21 983 53 1,057 
Provision for loan lossesProvision for loan losses(1,746)(3,562)(1,730)(7,038)2,115 9,091 6,118 (e)17,324 Provision for loan losses175 506 687 1,368 (932)(2,517)(830)(4,279)
OtherOther(2)0 3 1 (1)0 2 1 Other— — 20 20 (1)— 10 9 
Ending balance at June 30,$1,898 $12,500 $5,102 $19,500 $4,872 $17,800 $8,919 $31,591 
Ending balance at March 31,Ending balance at March 31,$1,894 $10,250 $5,048 $17,192 $2,682 $14,300 $6,019 $23,001 
Allowance for lending-related commitmentsAllowance for lending-related commitmentsAllowance for lending-related commitments
Beginning balance at January 1,Beginning balance at January 1,$187 $0 $2,222 $2,409 $12 $0 $1,179 $1,191 Beginning balance at January 1,$113 $— $2,148 $2,261 $187 $— $2,222 $2,409 
Cumulative effect of a change in accounting principleNANA133 0 (35)98 
Provision for lending-related commitmentsProvision for lending-related commitments(46)0 634 588 95 0 1,326 (e)1,421 Provision for lending-related commitments(2)— 98 96 (52)— 159 107 
OtherOther1 0 0 1 1 0 (1)0 Other— — 1 1 — — — — 
Ending balance at June 30,$142 $0 $2,856 $2,998 $241 $0 $2,469 $2,710 
Total allowance for credit losses(a)
$2,040 $12,500 $7,958 $22,498 $5,113 $17,800 $11,388 $34,301 
Ending balance at March 31,Ending balance at March 31,$111 $— $2,247 $2,358 $135 $— $2,381 $2,516 
Total allowance for investment securitiesTotal allowance for investment securitiesNA41 NA94 
Total allowance for credit lossesTotal allowance for credit losses$2,005 $10,250 $7,295 $19,591 $2,817 $14,300 $8,400 $25,611 
Allowance for loan losses by impairment methodologyAllowance for loan losses by impairment methodologyAllowance for loan losses by impairment methodology
Asset-specific(b)
$(557)$443 $488 $374 $263 $642 $757 $1,662 
Asset-specific(a)
Asset-specific(a)
$(644)$262 $485 $103 $(348)$522 $529 $703 
Portfolio-basedPortfolio-based2,455 12,057 4,614 19,126 4,609 17,158 8,162 (e)29,929 Portfolio-based2,538 9,988 4,563 17,089 3,030 13,778 5,490 22,298 
Total allowance for loan lossesTotal allowance for loan losses$1,898 $12,500 $5,102 $19,500 $4,872 $17,800 $8,919 $31,591 Total allowance for loan losses$1,894 $10,250 $5,048 $17,192 $2,682 $14,300 $6,019 $23,001 
Loans by impairment methodologyLoans by impairment methodologyLoans by impairment methodology
Asset-specific(b)
$15,187 $1,180 $3,010 $19,377 $16,749 $1,422 $3,849 $22,020 
Asset-specific(a)
Asset-specific(a)
$13,186 $901 $2,823 $16,910 $16,008 $1,291 $3,394 $20,693 
Portfolio-basedPortfolio-based282,544 139,899 521,845 944,288 290,256 140,234 512,938 943,428 Portfolio-based282,975 151,382 567,130 1,001,487 286,384 130,481 511,084 927,949 
Total retained loansTotal retained loans$297,731 $141,079 $524,855 $963,665 $307,005 $141,656 $516,787 $965,448 Total retained loans$296,161 $152,283 $569,953 $1,018,397 $302,392 $131,772 $514,478 $948,642 
Collateral-dependent loansCollateral-dependent loansCollateral-dependent loans
Net charge-offsNet charge-offs$23 $0 $6 $29 $56 $0 $22 $78 Net charge-offs$(5)$— $7 $2 $20 $— $2 $22 
Loans measured at fair value of collateral less cost to sellLoans measured at fair value of collateral less cost to sell4,689 0 341 5,030 3,505 0 166 3,671 Loans measured at fair value of collateral less cost to sell4,144 — 665 4,809 4,790 — 354 5,144 
Allowance for lending-related commitments by impairment methodologyAllowance for lending-related commitments by impairment methodologyAllowance for lending-related commitments by impairment methodology
Asset-specificAsset-specific$0 $0 $150 $150 $0 $0 $115 $115 Asset-specific$— $— $139 $139 $— $— $144 $144 
Portfolio-basedPortfolio-based142 0 2,706 2,848 241 0 2,354 (e)2,595 Portfolio-based111 — 2,108 2,219 135 — 2,237 2,372 
Total allowance for lending-related commitments(c)
$142 $0 $2,856 $2,998 $241 $0 $2,469 $2,710 
Total allowance for lending-related commitments(b)
Total allowance for lending-related commitments(b)
$111 $— $2,247 $2,358 $135 $— $2,381 $2,516 
Lending-related commitments by impairment methodologyLending-related commitments by impairment methodologyLending-related commitments by impairment methodology
Asset-specificAsset-specific$0 $0 $851 $851 $0 $0 $762 $762 Asset-specific$— $— $767 $767 $— $— $800 $800 
Portfolio-based(d)
36,092 0 459,078 495,170 35,417 0 391,121 426,538 
Portfolio-based(c)
Portfolio-based(c)
31,847 — 463,570 495,417 34,468 — 440,830 475,298 
Total lending-related commitmentsTotal lending-related commitments$36,092 $0 $459,929 $496,021 $35,417 $0 $391,883 $427,300 Total lending-related commitments$31,847 $— $464,337 $496,184 $34,468 $— $441,630 $476,098 
(a)Excludes the allowance for credit losses on investment securities of $87 million and $23 million as of June 30, 2021 and 2020, respectively.
(b)Includes collateral dependent loans, including those considered TDRs and those for which foreclosure is deemed probable, modified PCD loans and non-collateral dependent loans that have been modified or are reasonably expected to be modified in a TDR. Also includes risk-rated loans that have been placed on nonaccrual status for the wholesale portfolio segment. The asset-specific allowance for credit card allowance for loans modified, or reasonably expected to be modified, in a TDR is calculated based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
(c)(b)The allowance for lending-related commitments is reported in accounts payable and other liabilities on the Consolidated balance sheets.
(d)(c)At June 30,March 31, 2022 and 2021, and 2020, lending-related commitments excluded $20.8$15.3 billion and $9.9$21.8 billion, respectively, for the consumer, excluding credit card portfolio segment; $682.5$757.3 billion and $673.8$674.4 billion, respectively, for the credit card portfolio segment; and $42.7$32.9 billion and $21.5$39.6 billion, respectively, for the wholesale portfolio segment, which were not subject to the allowance for lending-related commitments.
(e)Prior-period amounts have been revised to conform with the current presentation.


150137

Discussion of changes in the allowance
The allowance for credit losses as of June 30, 2021 decreased when compared toMarch 31, 2022 was $19.6 billion, an increase from $18.7 billion at December 31, 2020,2021, consisting of:
•a $7.1 billion reduction in consumer, predominantly in the credit card portfolio, reflecting improvements in the Firm's economic outlook; and in the residential real estate portfolio, primarily due to continued improvements in HPI expectations, and    
•a $1.1 billion net reduction $776 million in wholesale, across the LOBs, reflecting improvementsand $127 million in consumer, driven by the residential real estate portfolio.
The change in the Firm's economic outlook.allowance largely reflects an increased weight placed on the adverse scenarios, from the more balanced weighting placed on the adverse and upside scenarios at December 31, 2021, due to the potential effects associated with higher inflation, changes in monetary policy, as well as geopolitical risks, including the war in Ukraine. The increase in the allowance also included client-specific Russia and Russia-associated downgrades in CIB and AWM.
The COVID-19 pandemic has stressed many MEVs used in the Firm's allowance estimate which has created challenges in the usefor credit losses is estimated using a weighted average of modeled credit loss estimates, increased the reliance on management judgment, and resulted in adjustments to appropriately address the economic circumstances. These adjustments continued through the second quarter of 2021, although to a lesser extent than experienced during 2020.
The U.S. economy has continued to improve with the benefits of vaccination and as more businesses have reopened, thereby reducing certain pandemic-relatedfive internally developed macroeconomic uncertainties. However, uncertainties remain, including the pace of vaccination progress, the impact of additional waves and new virus strains, the health of underlying labor markets, and the potential for changes in consumer behavior that could have longer term impacts on certain sectors. As a result of these uncertainties, the Firm retained meaningful weighting on its adverse scenarios, albeit to a lesser extent than the first quarter of 2021 and fourth quarter of 2020.scenarios. The adverse scenarios incorporate more punitive macroeconomic factors than the central case assumptions outlinedprovided in the table below, resulting in weighted average U.S. unemployment rates rising above seven percent in 2021 and falling just below six percent throughout4% through the second quarter of 2022 with2023 and year over year growth in U.S. real GDP returning to pre-pandemic levelsof 2.5% in 4Q21.the second quarter of 2023.
The Firm’s central case assumptions reflected U.S. unemployment rates and U.S. real GDP as follows:follows:
Assumptions at June 30, 2021Assumptions at March 31, 2022
4Q212Q224Q222Q224Q222Q23
U.S. unemployment rate(a)
U.S. unemployment rate(a)
4.7 %4.0 %3.8 %
U.S. unemployment rate(a)
3.6 %3.3 %3.3 %
Cumulative change in U.S. real GDP from 12/31/20194.3 %6.0 %7.3 %
YoY growth in U.S. real GDP(b)
YoY growth in U.S. real GDP(b)
3.7 %2.9 %2.6 %
Assumptions at December 31, 2020Assumptions at December 31, 2021
2Q214Q212Q222Q224Q222Q23
U.S. unemployment rate(a)
U.S. unemployment rate(a)
6.8 %5.7 %5.1 %
U.S. unemployment rate(a)
4.2 %4.0 %3.9 %
Cumulative change in U.S. real GDP from 12/31/2019(1.9)%0.6 %2.0 %
YoY growth in U.S. real GDP(b)
YoY growth in U.S. real GDP(b)
3.1 %2.8 %2.1 %
(a)Reflects quarterly average of forecasted U.S. unemployment rate.
(b)As of March 31, 2022, the year over year growth in U.S. real GDP in the forecast horizon of the central scenario is calculated as the percent change in U.S. real GDP levels from the prior year.
Subsequent changes to this forecast and related estimates will be reflected in the provision for credit losses in future periods.
Refer to Note 13 and Note 10 of JPMorgan Chase's 2021 Form 10-K for a description of the policies, methodologies and judgments used to determine the Firm’s allowances for credit losses on loans, lending-related commitments, and investment securities.
Refer to Critical Accounting Estimates Used by the Firm on pages 75-77 for further information on the allowance for credit losses and related management judgments.
Refer to Consumer Credit Portfolio on pages 49-53, Wholesale Credit Portfolio on pages 54-62 and Note 11 for additional information on the consumer and wholesale credit portfolios.

151138

Note 13 – Variable interest entities
Refer to Note 1 of JPMorgan Chase’s 20202021 Form 10-K for a further description of JPMorgan Chase’s accounting policies regarding consolidation of VIEs. Refer to Note 14 of JPMorgan Chase's 20202021 Form 10-K for a detailed discussion of VIEs, including the Firm’s accounting policies regarding securitizations.
The following table summarizes the most significant types of Firm-sponsored VIEs by business segment. The Firm considers a “Firm-sponsored” VIE to include any entity where: (1) JPMorgan Chase is the primary beneficiary of the structure; (2) the VIE is used by JPMorgan Chase to securitize Firm assets; (3) the VIE issues financial instruments with the JPMorgan Chase name; or (4) the entity is a JPMorgan Chase–administered asset-backed commercial paper conduit.
Line of BusinessTransaction TypeActivityForm 10-Q page references
CCBCredit card securitization trustsSecuritization of originated credit card receivables152139
Mortgage securitization trustsServicing and securitization of both originated and purchased residential mortgages152-154139-141
CIBMortgage and other securitization trustsSecuritization of both originated and purchased residential and commercial mortgages, and other consumer loans152-154139-141
Multi-seller conduitsAssistAssisting clients in accessing the financial markets in a cost-efficient manner and structuresstructuring transactions to meet investor needs154141
Municipal bond vehiclesFinancing of municipal bond investments154141
The Firm also invests in and provides financing and other services to VIEs sponsored by third parties. Refer to pages 155–156142-144 of this Note for more information on consolidated VIE assets and liabilities as well as the VIEs sponsored by third parties.
Significant Firm-sponsored VIEs
Credit card securitizations
As a result of the Firm’s continuing involvement, the Firm is considered to be the primary beneficiary of its Firm-sponsored credit card securitization trust, the Chase Issuance Trust.
Firm-sponsored mortgage and other securitization trusts
The Firm securitizes (or has securitized) originated and purchased residential mortgages, commercial mortgages and other consumer loans primarily in its CCB and CIB businesses. Depending on the particular transaction, as well as the respective business involved, the Firm may act as the servicer of the loans and/or retain certain beneficial interests in the securitization trusts.
152139

The following tables present the total unpaid principal amount of assets held in Firm-sponsored private-label securitization entities, including those in which the Firm has continuing involvement, and those that are consolidated by the Firm. Continuing involvement includes servicing the loans, holding senior interests or subordinated interests (including amounts required to be held pursuant to credit
risk retention rules), recourse or guarantee arrangements, and derivative contracts. In certain instances, the Firm’s only continuing involvement is servicing the loans. The Firm’s maximum loss exposure from retained and purchased interests is the carrying value of these interests.
Principal amount outstanding
JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
Principal amount outstanding
JPMorgan Chase interest in securitized assets in nonconsolidated VIEs(c)(d)(e)
June 30, 2021 (in millions)Total assets held by securitization VIEsAssets
held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvementTrading assets Investment securitiesOther financial assetsTotal interests held by JPMorgan
Chase
March 31, 2022 (in millions)March 31, 2022 (in millions)Total assets held by securitization VIEsAssets
held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvementTrading assets Investment securitiesOther financial assetsTotal interests held by JPMorgan
Chase
Securitization-related(a)
Securitization-related(a)
Securitization-related(a)
Residential mortgage:Residential mortgage:Residential mortgage:
Prime/Alt-A and option ARMsPrime/Alt-A and option ARMs$48,866 $1,356 $40,906 $511 $449 $19 $979 Prime/Alt-A and option ARMs$57,739 $862 $50,727 $708 $1,263 $41 $2,012 
SubprimeSubprime11,923 30 10,982 1 0 0 1 Subprime10,563 7 9,764 2 — — 2 
Commercial and other(b)
Commercial and other(b)
128,614 0 91,039 867 1,901 294 3,062 
Commercial and other(b)
154,343 — 113,255 748 4,029 477 5,254 
TotalTotal$189,403 $1,386 $142,927 $1,379 $2,350 $313 $4,042 Total$222,645 $869 $173,746 $1,458 $5,292 $518 $7,268 
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, 2020 (in millions)Total assets held by securitization VIEsAssets
held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvementTrading assets Investment securitiesOther financial assetsTotal interests held by
JPMorgan
Chase
December 31, 2021 (in millions)December 31, 2021 (in millions)Total assets held by securitization VIEsAssets
held in consolidated securitization VIEs		Assets held in nonconsolidated securitization VIEs with continuing involvementTrading assets Investment securitiesOther financial assetsTotal interests held by
JPMorgan
Chase
Securitization-related(a)
Securitization-related(a)
Securitization-related(a)
Residential mortgage:Residential mortgage:Residential mortgage:
Prime/Alt-A and option ARMsPrime/Alt-A and option ARMs$49,644 $1,693 $41,265 $574 $724 $0 $1,298 Prime/Alt-A and option ARMs$55,085 $942 $47,029 $974 $684 $95 $1,753 
SubprimeSubprime12,896 46 12,154 9 0 0 9 Subprime10,966 27 10,115 2 — — 2 
Commercial and other(b)
Commercial and other(b)
119,732 0 92,351 955 1,549 262 2,766 
Commercial and other(b)
150,694 — 93,698 671 3,274 506 4,451 
TotalTotal$182,272 $1,739 $145,770 $1,538 $2,273 $262 $4,073 Total$216,745 $969 $150,842 $1,647 $3,958 $601 $6,206 
(a)Excludes U.S. GSEs and government agency securitizations and re-securitizations, which are not Firm-sponsored.
(b)Consists of securities backed by commercial real estate loans and non-mortgage-related consumer receivables purchased from third parties.
(c)Excludes the following: retained servicing; securities retained from loan sales and securitization activity related to U.S. GSEs and government agencies; interest rate and foreign exchange derivatives primarily used to manage interest rate and foreign exchange risks of securitization entities; senior and subordinated securities of $149$210 million and $81$91 million, respectively, at June 30, 2021,March 31, 2022, and $105$145 million and $40$36 million, respectively, at December 31, 2020,2021, 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, 2021,March 31, 2022 and December 31, 2020, 71%2021, 83% and 73%79%, 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 $933 million$1.9 billion and $1.3$1.6 billion of investment-grade retained interests, and $46$68 million and $41$131 million of noninvestment-grade retained interests at June 30, 2021,March 31, 2022, and December 31, 2020,2021, respectively. The retained interests in commercial and other securitization trusts consisted of $2.2$4.3 billion and $2.0$3.5 billion of investment-grade retained interests, and $824$931 million and $753$929 million of noninvestment-grade retained interests at June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively.
153140

Residential mortgage
The Firm securitizes residential mortgage loans originated by CCB, as well as residential mortgage loans purchased from third parties by either CCB or CIB.
Commercial mortgages and other consumer securitizations
CIB originates and securitizes commercial mortgage loans, and engages in underwriting and trading activities involving the securities issued by securitization trusts.
Re-securitizations
The following table presents the principal amount of securities transferred to re-securitization VIEs.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
Transfers of securities to VIEsTransfers of securities to VIEsTransfers of securities to VIEs
U.S. GSEs and government agenciesU.S. GSEs and government agencies$18,794 $12,505 $31,899 $15,222 U.S. GSEs and government agencies$6,076 $13,105 
The Firm did not transfer any private label securities to re-securitization VIEs during the three and six months ended June 30,March 31, 2022 and 2021, and 2020, respectively and retained interests in any such Firm-sponsored VIEs as of June 30, 2021March 31, 2022 and December 31, 20202021 were immaterial.not material.
The following table presents information on the Firm's interests in nonconsolidated re-securitization VIEs.
Nonconsolidated
re-securitization VIEs		Nonconsolidated
re-securitization VIEs
(in millions)(in millions)June 30, 2021December 31, 2020(in millions)March 31, 2022December 31, 2021
U.S. GSEs and government agenciesU.S. GSEs and government agenciesU.S. GSEs and government agencies
Interest in VIEsInterest in VIEs$3,068 $2,631 Interest in VIEs$2,295 $1,947 
As of June 30, 2021,March 31, 2022, and December 31, 2020,2021, the Firm did not consolidate any U.S. GSE and government agency re-securitization VIEs or any Firm-sponsored private-label re-securitization VIEs.
Multi-seller conduits
In the normal course of business, JPMorgan Chase makes markets in and invests in commercial paper issued by the Firm-administered multi-seller conduits. The Firm held $10.5$13.3 billion and $13.5$13.7 billion of the commercial paper issued by the Firm-administered multi-seller conduits at June 30, 2021,March 31, 2022, and December 31, 2020,2021, respectively, which have been eliminated in consolidation. The Firm’s investments reflect the Firm’s funding needs and capacity and were not driven by market illiquidity. Other than the amounts required to be held pursuant to credit risk retention rules, the Firm is not obligated under any agreement to purchase the commercial paper issued by the Firm-administered multi-seller conduits.
Deal-specific liquidity facilities, program-wide liquidity and credit enhancement provided by the Firm have been eliminated in consolidation. The Firm or the Firm-administered multi-seller conduits provide lending-related commitments to certain clients of the Firm-administered multi-seller conduits. The unfunded commitments were $13.6$13.8 billion and $12.2$13.4 billion at June 30, 2021,March 31, 2022, and December 31, 2020,2021, respectively, and are reported as off-balance sheet lending-related commitments in other unfunded commitments to extend credit. Refer to Note 22 for more information on off-balance sheet lending-related commitments.
Municipal bond vehicles
Municipal bond vehicles or tender option bond (“TOB”) trusts allow institutions to finance their municipal bond investments at short-term rates. TOB transactions are known as customer TOB trusts and non-customer TOB trusts. Customer TOB trusts are sponsored by a third party.
The Firm serves as sponsor for all non-customer TOB transactions.
154141

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, 2021,March 31, 2022, and December 31, 2020.2021.
AssetsLiabilitiesAssetsLiabilities
June 30, 2021 (in millions)Trading assetsLoans
Other(c)
 Total
assets(d)
Beneficial interests in
VIE assets(e)
Other(f)
Total
liabilities
March 31, 2022 (in millions)March 31, 2022 (in millions)Trading assetsLoans
Other(c)
 Total
assets(d)
Beneficial interests in
VIE assets(e)
Other(f)
Total
liabilities
VIE program typeVIE program typeVIE program type
Firm-sponsored credit card trustsFirm-sponsored credit card trusts$0$11,094$100$11,194$2,395$1$2,396Firm-sponsored credit card trusts$—$10,434$90$10,524$1,748$1$1,749
Firm-administered multi-seller conduitsFirm-administered multi-seller conduits420,00518120,1909,794419,835Firm-administered multi-seller conduits919,47811819,6056,250366,286
Municipal bond vehiclesMunicipal bond vehicles1,989021,9911,95701,957Municipal bond vehicles2,011—52,0161,97911,980
Mortgage securitization entities(a)
Mortgage securitization entities(a)
01,219551,27419996295
Mortgage securitization entities(a)
—8832590816778245
OtherOther22,966(b)2713,2395895153Other—1,171(b)2341,405—137
TotalTotal$1,995$35,284$609$37,888$14,403$233$14,636Total$2,020$31,966$472$34,458$10,144$253$10,397
AssetsLiabilitiesAssetsLiabilities
December 31, 2020 (in millions)Trading assetsLoans
Other(c)
 Total
assets(d)
Beneficial interests in
VIE assets(e)
Other(f)
Total
liabilities
December 31, 2021 (in millions)December 31, 2021 (in millions)Trading assetsLoans
Other(c)
 Total
assets(d)
Beneficial interests in
VIE assets(e)
Other(f)
Total
liabilities
VIE program typeVIE program typeVIE program type
Firm-sponsored credit card trustsFirm-sponsored credit card trusts$0$11,962$148$12,110$4,943$3$4,946Firm-sponsored credit card trusts$—$11,108$102$11,210$2,397$1$2,398
Firm-administered multi-seller conduitsFirm-administered multi-seller conduits223,78718823,97710,5233310,556Firm-administered multi-seller conduits119,8837119,9556,198416,239
Municipal bond vehiclesMunicipal bond vehicles1,930021,9321,90201,902Municipal bond vehicles2,009—22,0111,976—1,976
Mortgage securitization entities(a)
Mortgage securitization entities(a)
01,694941,788210108318
Mortgage securitization entities(a)
—9553298717985264
OtherOther2176249427089Other—1,078(b)2831,361—118
TotalTotal$1,934$37,619$681$40,234$17,578$233$17,811Total$2,010$33,024$490$35,524$10,750$245$10,995
(a)Includes residential and commercial mortgage securitizations.
(b)PredominantlyPrimarily includes purchased supply chain finance receivables and purchased auto loan securitizations in CIB.
(c)Includes assets classified as cash and other assets on the Consolidated balance sheets.
(d)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.
(e)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.”VIEs”. The holders of these beneficial interests generally do not have recourse to the general credit of JPMorgan Chase. Included in beneficial interests in VIE assets are long-term beneficial interests of $2.7$1.9 billion and $5.2$2.6 billion at June 30, 2021,March 31, 2022, and December 31, 2020,2021, respectively.
(f)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 own and operate affordable housing, energy, and other projects. These entities are primarily considered VIEs. A third party is typically the general partner or managing
member and has control over the significant activities of the tax credit vehicles, and accordingly the Firm does not consolidate tax credit vehicles. The Firm generally invests in these partnerships as a limited partner and earns a return primarily through the receipt of tax credits allocated to the projects. The maximum loss exposure, represented by equity investments and funding commitments, was $23.2$26.5 billion and $23.6$26.8 billion, of which $7.5$9.0 billion and $8.7$9.4 billion was unfunded at June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively. The prior-period maximum loss exposure amount has been revised to conform with the current presentation. The Firm assesses each project and to reduce the risk of loss, may withhold varying amounts of its capital investment until the project qualifies for tax credits. Refer to Note 25 of JPMorgan Chase’s 20202021 Form 10-K for further information on affordable housing tax credits and Note 22 of this Form 10-Q for more information on off-balance sheet lending-related commitments.
155142

Customer municipal bond vehicles (TOB trusts)
The Firm may provide various services to customer TOB trusts, including remarketing agent, liquidity or tender option provider. In certain customer TOB transactions, the Firm, as liquidity provider, has entered into a reimbursement agreement with the Residual holder.
In those transactions, upon the termination of the vehicle, the Firm has recourse to the third-party Residual holders for any shortfall. The Firm does not have any intent to protect Residual holders from potential losses on any of the underlying municipal bonds. The Firm does not consolidate customer TOB trusts, since the Firm does not have the
power to make decisions that significantly impact the economic performance of the municipal bond vehicle.
The Firm’s maximum exposure as a liquidity provider to customer TOB trusts at both June 30, 2021March 31, 2022 and December 31, 20202021 was $6.7 billion.$7.2 billion and $6.8 billion, respectively. The fair value of assets held by such VIEs at both June 30, 2021March 31, 2022 and December 31, 20202021 was $10.3 billion and $10.5 billion.billion, respectively.
Loan securitizations
The Firm has securitized and sold a variety of loans, including residential mortgages, credit card receivables, and commercial mortgages.
Securitization activity
The following table provides information related to the Firm’s securitization activities for the three and six months ended June 30,March 31, 2022 and 2021, and 2020, related to assets held in Firm-sponsored securitization entities that were not consolidated by the Firm, and where sale accounting was achieved at the time of the securitization.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
202120202021202020222021
(in millions)(in millions)
Residential mortgage(d)
Commercial and other(e)
Residential mortgage(d)
Commercial and other(e)
Residential mortgage(d)
Commercial and other(e)
Residential mortgage(d)
Commercial and other(e)
(in millions)
Residential mortgage(d)
Commercial and other(e)
Residential mortgage(d)
Commercial and other(e)
Principal securitizedPrincipal securitized$4,115 $2,876 $534 $861 $8,192 $4,788 $3,598 $4,049 Principal securitized$6,495 $3,108 $4,077 $1,912 
All cash flows during the period:(a)
All cash flows during the period:(a)
All cash flows during the period:(a)
Proceeds received from loan sales as financial instruments(b)(c)
Proceeds received from loan sales as financial instruments(b)(c)
$4,218 $2,909 $554 $912 $8,452 $4,879 $3,690 $4,185 
Proceeds received from loan sales as financial instruments(b)(c)
$6,375 $3,106 $4,234 $1,970 
Servicing fees collectedServicing fees collected41 0 49 0 82 0 111 0 Servicing fees collected24 — 41 — 
Cash flows received on interestsCash flows received on interests173 71 214 31 356 123 331 60 Cash flows received on interests155 71 183 52 
(a)Excludes re-securitization transactions.
(b)Predominantly includes Level 2 assets.
(c)The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.
(d)Represents prime mortgages. Excludes loan securitization activity related to U.S. GSEs and government agencies.
(e)Includes commercial mortgage and other consumer loans.
Loans and excess MSRs sold to U.S. government-sponsored
enterprises and loans in securitization transactions pursuant to
Ginnie Mae guidelines
In addition to the amounts reported in the securitization activity tables above, the Firm, in the normal course of business, sells originated and purchased mortgage loans and certain originated excess MSRs on a nonrecourse basis, predominantly to U.S. GSEs. These loans and excess MSRs are sold primarily for the purpose of securitization by the U.S. GSEs, who provide certain guarantee provisions (e.g., credit enhancement of the loans). The Firm also sells loans into securitization transactions pursuant to Ginnie Mae guidelines; these loans are typically insured or guaranteed by another U.S. government agency. The Firm does not consolidate the securitization vehicles underlying these transactions as it is not the primary beneficiary. For a limited number of loan sales, the Firm is obligated to share
a portion of the credit risk associated with the sold loans with the purchaser. Refer to Note 22 of this Form 10-Q for additional information about the Firm’s loan sales- and securitization-related indemnifications and Note 14 for additional information about the impact of the Firm’s sale of certain excess MSRs.
156143

The following table summarizes the activities related to loans sold to the U.S. GSEs, and loans in securitization transactions pursuant to Ginnie Mae guidelines.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
Carrying value of loans soldCarrying value of loans sold$24,459 $17,447 $47,606 $42,382 Carrying value of loans sold$23,668 $23,147 
Proceeds received from loan sales as cashProceeds received from loan sales as cash24 13 40 22 Proceeds received from loan sales as cash9 16 
Proceeds from loan sales as securities(a)(b)
Proceeds from loan sales as securities(a)(b)
24,033 17,274 46,782 41,937 
Proceeds from loan sales as securities(a)(b)
23,258 22,749 
Total proceeds received from loan sales(c)
Total proceeds received from loan sales(c)
$24,057 $17,287 $46,822 $41,959 
Total proceeds received from loan sales(c)
$23,267 $22,765 
Gains/(losses) on loan sales(d)(e)
Gains/(losses) on loan sales(d)(e)
$0 $2 $4 $6 
Gains/(losses) on loan sales(d)(e)
$— $4 
(a)Includes securities from U.S. GSEs and Ginnie Mae that are generally sold shortly after receipt or retained as part of the Firm’s investment securities portfolio.
(b)Included in level 2 assets.
(c)Excludes the value of MSRs retained upon the sale of loans.
(d)Gains/(losses) on loan sales include the value of MSRs.
(e)The carrying value of the loans accounted for at fair value approximated the proceeds received upon loan sale.
Options to repurchase delinquent loans
In addition to the Firm’s obligation to repurchase certain loans due to material breaches of representations and warranties as discussed in Note 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. The Firm typically elects to repurchase delinquent loans from Ginnie Mae loan
pools as it continues to service them and/or manage the foreclosure process in accordance with the applicable requirements, and such loans continue to be insured or guaranteed. When the Firm’s repurchase option becomes exercisable, such loans must be reported on the Consolidated balance sheets as a loan with a corresponding liability. Refer to Note 11 for additional information.
The following table presents loans the Firm repurchased or had an option to repurchase, real estate owned, and foreclosed government-guaranteed residential mortgage loans recognized on the Firm’s Consolidated balance sheets as of June 30, 2021March 31, 2022 and December 31, 2020.2021. Substantially all of these loans and real estate are insured or guaranteed by U.S. government agencies.
(in millions)(in millions)Jun 30,
2021		Dec 31,
2020		(in millions)Mar 31,
2022		Dec 31,
2021
Loans repurchased or option to repurchase(a)
Loans repurchased or option to repurchase(a)
$1,209 $1,413 
Loans repurchased or option to repurchase(a)
$896 $1,022 
Real estate ownedReal estate owned7 9 Real estate owned6 5 
Foreclosed government-guaranteed residential mortgage loans(b)
Foreclosed government-guaranteed residential mortgage loans(b)
52 64 
Foreclosed government-guaranteed residential mortgage loans(b)
31 36 
(a)Predominantly all of these amounts relate to loans that have been repurchased from Ginnie Mae loan pools.
(b)Relates to voluntary repurchases of loans, which are included in accrued interest and accounts receivable.

Loan delinquencies and liquidation losses
The table below includes information about components of and delinquencies related to nonconsolidated securitized financial assets held in Firm-sponsored private-label securitization entities, in which the Firm has continuing involvement as of June 30, 2021,March 31, 2022, and December 31, 2020.2021.
Net liquidation lossesNet liquidation losses/(recoveries)
Securitized assets90 days past dueThree months ended June 30,Six months ended June 30,Securitized assets90 days past dueThree months ended March 31,
(in millions)(in millions)Jun 30,
2021		Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		2021202020212020(in millions)Mar 31,
2022		Dec 31,
2021		Mar 31,
2022		Dec 31,
2021		20222021
Securitized loansSecuritized loansSecuritized loans
Residential mortgage:Residential mortgage:Residential mortgage:
Prime / Alt-A & option ARMsPrime / Alt-A & option ARMs$40,906 $41,265 $3,748 $4,988 $2 $76 $14 $175 Prime / Alt-A & option ARMs$50,727 $47,029 $2,236 $2,466 $(6)$12 
SubprimeSubprime10,982 12,154 1,994 2,406 0 49 18 135 Subprime9,764 10,115 1,537 1,609 — 18 
Commercial and otherCommercial and other91,039 92,351 3,596 5,958 0 1 21 11 Commercial and other113,255 93,698 1,320 1,456 6 21 
Total loans securitizedTotal loans securitized$142,927 $145,770 $9,338 $13,352 $2 $126 $53 $321 Total loans securitized$173,746 $150,842 $5,093 $5,531 $— $51 
157144

Note 14 – Goodwill and Mortgage servicing rights
Refer to Note 15 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of the accounting policies related to goodwill and mortgage servicing rights.
Goodwill
The following table presents goodwill attributed to the reportable business segments.segments and Corporate.
(in millions)(in millions)June 30,
2021		December 31,
2020		(in millions)March 31,
2022		December 31,
2021
Consumer & Community BankingConsumer & Community Banking$31,335 $31,311 Consumer & Community Banking$31,474 $31,474 
Corporate & Investment BankCorporate & Investment Bank7,915 7,913 Corporate & Investment Bank7,910 7,906 
Commercial BankingCommercial Banking2,985 2,985 Commercial Banking2,986 2,986 
Asset & Wealth ManagementAsset & Wealth Management7,021 7,039 Asset & Wealth Management7,224 7,222 
CorporateCorporate704 727 
Total goodwillTotal goodwill$49,256 $49,248 Total goodwill$50,298 $50,315 
The following table presents changes in the carrying amount of goodwill.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
Balance at beginning
of period
Balance at beginning
of period
$49,243 $47,800 $49,248 $47,823 
Balance at beginning
of period
$50,315 $49,248 
Changes during the period from:Changes during the period from:Changes during the period from:
Other(a)
Other(a)
13 11 8 (12)
Other(a)
(17)(5)
Balance at June 30,$49,256 $47,811 $49,256 $47,811 
Balance at March 31,Balance at March 31,$50,298 $49,243 
(a)Primarily foreign currency adjustments and, in the first quarter of 2021, adjustments to goodwill related to prior period acquisitions.

Goodwill impairment testing
Goodwill is tested for impairment during the fourth quarter of each fiscal year, or more often if events or circumstances, such as adverse changes in the business climate, indicate that there may be an impairment. Refer to Note 15 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion 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.  testing.
Unanticipated declines in business performance, increases in credit losses, increases in capital requirements, as well as deterioration in economic or market conditions, adverse regulatory or legislative changes or increases in the estimated market cost of equity, could cause the estimated fair values of the Firm’s reporting units to decline in the future, which could result in a material impairment charge to earnings in a future period related to some portion of the associated goodwill.
As of June 30, 2021,March 31, 2022, the Firm reviewed current economic conditions, including the potential impacts of the COVID-19 pandemic on business performance, estimated market cost of equity, as well as actual business results and projections of business performance for all its reporting units. Theperformance. Based on such reviews, the Firm has concluded that the goodwill allocated to its reporting units was 0tnot impaired as of June 30, 2021,March 31, 2022, or December 31, 2020,2021, nor was goodwill written off due to impairment during the sixthree months ended June 30, 2021March 31, 2022 or 2020.2021.
158145

Mortgage servicing rights
MSRs represent the fair value of expected future cash flows for performing servicing activities for others. The fair value considers estimated future servicing fees and ancillary revenue, offset by estimated costs to service the loans, and generally declines over time as net servicing cash flows are received, effectively amortizing the MSR asset against contractual servicing and ancillary fee income. MSRs are either purchased from third parties or recognized upon sale or securitization of mortgage loans if servicing is retained. Refer to Notes 2 and 15 of JPMorgan Chase’s 20202021 Form 10-K for a further description of the MSR asset, interest rate risk management, and the valuation of MSRs.
The following table summarizes MSR activity for the three and six months ended June 30, 2021March 31, 2022 and 2020.2021.
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 March 31,
(in millions, except where otherwise noted)(in millions, except where otherwise noted)2021202020212020(in millions, except where otherwise noted)20222021
Fair value at beginning of periodFair value at beginning of period$4,470 $3,267 $3,276 $4,699 Fair value at beginning of period$5,494 $3,276 
MSR activity:MSR activity:MSR activity:
Originations of MSRsOriginations of MSRs419 164 823 435 Originations of MSRs415 404 
Purchase of MSRsPurchase of MSRs395 5 574 7 Purchase of MSRs715 179 
Disposition of MSRs(a)
Disposition of MSRs(a)
(25)2 (24)(73)
Disposition of MSRs(a)
(57)1 
Net additions/(dispositions)Net additions/(dispositions)789 171 1,373 369 Net additions/(dispositions)1,073 584 
Changes due to collection/realization of expected cash flowsChanges due to collection/realization of expected cash flows(182)(247)(369)(495)Changes due to collection/realization of expected cash flows(232)(187)
Changes in valuation due to inputs and assumptions:Changes in valuation due to inputs and assumptions:Changes in valuation due to inputs and assumptions:
Changes due to market interest rates and other(b)(a)
Changes due to market interest rates and other(b)(a)
(500)(144)336 (1,514)
Changes due to market interest rates and other(b)(a)
894 836 
Changes in valuation due to other inputs and assumptions:Changes in valuation due to other inputs and assumptions:Changes in valuation due to other inputs and assumptions:
Projected cash flows (e.g., cost to service)Projected cash flows (e.g., cost to service)1 3 (23)2 Projected cash flows (e.g., cost to service)— (24)
Discount ratesDiscount rates0 0 0 0 Discount rates— — 
Prepayment model changes and other(c)(b)
Prepayment model changes and other(c)(b)
(29)30 (44)19 
Prepayment model changes and other(c)(b)
65 (15)
Total changes in valuation due to other inputs and assumptionsTotal changes in valuation due to other inputs and assumptions(28)33 (67)21 Total changes in valuation due to other inputs and assumptions65 (39)
Total changes in valuation due to inputs and assumptionsTotal changes in valuation due to inputs and assumptions(528)(111)269 (1,493)Total changes in valuation due to inputs and assumptions959 797 
Fair value at June 30,$4,549 $3,080 $4,549 $3,080 
Fair value at March 31Fair value at March 31$7,294 $4,470 
Changes in unrealized gains/(losses) included in income related to MSRs held at June 30,$(528)$(111)$269 $(1,493)
Changes in unrealized gains/(losses) included in income related to MSRs held at March 31Changes in unrealized gains/(losses) included in income related to MSRs held at March 31$959 $797 
Contractual service fees, late fees and other ancillary fees included in incomeContractual service fees, late fees and other ancillary fees included in income307 329 598 693 Contractual service fees, late fees and other ancillary fees included in income370 291 
Third-party mortgage loans serviced at June 30, (in billions)465 483 465 483 
Servicer advances, net of an allowance for uncollectible amounts, at June 30, (in billions)(d)
1.7 1.7 1.7 1.7 
Third-party mortgage loans serviced at March 31, (in billions)Third-party mortgage loans serviced at March 31, (in billions)576 444 
Servicer advances, net of an allowance for uncollectible amounts, at March 31, (in billions)(c)
Servicer advances, net of an allowance for uncollectible amounts, at March 31, (in billions)(c)
1.4 1.8 
(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)(b)Represents changes in prepayments other than those attributable to changes in market interest rates.
(d)(c)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.
159146

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, 2021March 31, 2022 and 2020.2021.
Three months ended June 30,Six months ended June 30,Three months ended March 31,
(in millions)(in millions)2021202020212020(in millions)20222021
CCB mortgage fees and related incomeCCB mortgage fees and related incomeCCB mortgage fees and related income
Production revenueProduction revenue$517 $742 $1,274 $1,061 Production revenue$211 $757 
Net mortgage servicing revenue:Net mortgage servicing revenue:Net mortgage servicing revenue:
Operating revenue:Operating revenue:Operating revenue:
Loan servicing revenueLoan servicing revenue316 343 564 682 Loan servicing revenue368 248 
Changes in MSR asset fair value due to collection/realization of expected cash flowsChanges in MSR asset fair value due to collection/realization of expected cash flows(182)(247)(369)(495)Changes in MSR asset fair value due to collection/realization of expected cash flows(232)(187)
Total operating revenueTotal operating revenue134 96 195 187 Total operating revenue136 61 
Risk management:Risk management:Risk management:
Changes in MSR asset fair value due to market interest rates and other(a)
Changes in MSR asset fair value due to market interest rates and other(a)
(500)(144)336 (1,514)
Changes in MSR asset fair value due to market interest rates and other(a)
894 836 
Other changes in MSR asset fair value due to other inputs and assumptions in model(b)
Other changes in MSR asset fair value due to other inputs and assumptions in model(b)
(28)33 (67)21 
Other changes in MSR asset fair value due to other inputs and assumptions in model(b)
65 (39)
Changes in derivative fair value and otherChanges in derivative fair value and other425 190 (487)1,482 Changes in derivative fair value and other(850)(912)
Total risk managementTotal risk management(103)79 (218)(11)Total risk management109 (115)
Total net mortgage servicing revenueTotal net mortgage servicing revenue31 175 (23)176 Total net mortgage servicing revenue245 (54)
Total CCB mortgage fees and related incomeTotal CCB mortgage fees and related income548 917 1,251 1,237 Total CCB mortgage fees and related income456 703 
All otherAll other3 0 4 0 All other4 1 
Mortgage fees and related incomeMortgage fees and related income$551 $917 $1,255 $1,237 Mortgage fees and related income$460 $704 
(a)Represents both the impact of changes in estimated future prepayments due to changes in market interest rates, and the difference between actual and expected prepayments.
(b)Represents the aggregate impact of changes in model inputs and assumptions such as projected cash flows (e.g., cost to service), discount rates and changes in prepayments other than those attributable to changes in market interest rates (e.g., changes in prepayments due to changes in home prices).
The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at June 30, 2021, and December 31, 2020, and outlines hypothetical sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.
(in millions, except rates)Jun 30,
2021		Dec 31,
2020
Weighted-average prepayment speed assumption (constant prepayment rate)10.72 %14.90 %
Impact on fair value of 10% adverse change$(195)$(206)
Impact on fair value of 20% adverse change(376)(392)
Weighted-average option adjusted spread(a)
6.70 %7.19 %
Impact on fair value of a 100 basis point adverse change$(191)$(134)
Impact on fair value of a 200 basis point adverse change(368)(258)
(a)Includes the impact of operational risk and regulatory capital.
Changes in fair value based on variations in assumptions generally cannot be easily extrapolated, because the relationship of the change in the assumptions to the change in fair value are often highly interrelated and may not be linear. In thisthe following table, the effect that a change in a particular assumption may have on the fair value is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which would either magnify or counteract the impact of the initial change.

The table below outlines the key economic assumptions used to determine the fair value of the Firm’s MSRs at March 31, 2022, and December 31, 2021, and outlines hypothetical sensitivities of those fair values to immediate adverse changes in those assumptions, as defined below.
(in millions, except rates)Mar 31,
2022		Dec 31,
2021
Weighted-average prepayment speed assumption (constant prepayment rate)7.68 %9.90 %
Impact on fair value of 10% adverse change$(206)$(210)
Impact on fair value of 20% adverse change(398)(404)
Weighted-average option adjusted spread(a)
5.99 %6.44 %
Impact on fair value of a 100 basis point adverse change$(300)$(225)
Impact on fair value of a 200 basis point adverse change(577)(433)
(a)Includes the impact of operational risk and regulatory capital.


160147

Note 15 – Deposits
Refer to Note 17 of JPMorgan Chase’s 20202021 Form 10-K for further information on deposits.
At June 30, 2021,March 31, 2022 and December 31, 2020,2021, noninterest-bearing and interest-bearing deposits were as follows.
(in millions)(in millions)June 30,
2021		December 31, 2020(in millions)March 31,
2022		December 31, 2021
U.S. officesU.S. officesU.S. offices
Noninterest-bearing (included $9,565 and $9,873 at fair value)(a)
$639,114 $572,711 
Noninterest-bearing (included $8,168 and $8,115 at fair value)(a)
Noninterest-bearing (included $8,168 and $8,115 at fair value)(a)
$721,401 $711,525 (b)
Interest-bearing (included $2,627 and $2,567 at fair value)(a)
1,281,432 1,197,032 
Interest-bearing (included $645 and $629 at fair value)(a)
Interest-bearing (included $645 and $629 at fair value)(a)
1,412,589 1,359,932 (b)
Total deposits in U.S. officesTotal deposits in U.S. offices1,920,546 1,769,743 Total deposits in U.S. offices2,133,990 2,071,457 
Non-U.S. officesNon-U.S. officesNon-U.S. offices
Noninterest-bearing (included $1,467 and $1,486 at fair value)(a)
24,723 23,435 
Noninterest-bearing (included $1,475 and $2,420 at fair value)(a)
Noninterest-bearing (included $1,475 and $2,420 at fair value)(a)
27,542 26,229 
Interest-bearing (included $364 and $558 at fair value)(a)
359,948 351,079 
Interest-bearing (included $155 and $169 at fair value)(a)
Interest-bearing (included $155 and $169 at fair value)(a)
399,675 364,617 
Total deposits in non-U.S. officesTotal deposits in non-U.S. offices384,671 374,514 Total deposits in non-U.S. offices427,217 390,846 
Total depositsTotal deposits$2,305,217 $2,144,257 Total deposits$2,561,207 $2,462,303 
(a)Includes structured notes classified as deposits for which the fair value option has been elected. Refer to Note 3 for further information.

(b)

Prior-period amount has been revised to conform with the current presentation.
Note 16 – Leases
Refer to Note 18 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion on leases.
Firm as lessee
At June 30, 2021,March 31, 2022, JPMorgan Chase and its subsidiaries were obligated under a number of noncancellable leases, predominantly operating leases for premises and equipment used primarily for business purposes.
Operating lease liabilities and right-of-use ("ROU") assets are recognized at the lease commencement date based on the present value of the future minimum lease payments over the lease term.
The following table provides information related to the Firm’s operating leases:
(in millions)(in millions)June 30, 2021December 31, 2020(in millions)March 31, 2022December 31, 2021
Right-of-use assetsRight-of-use assets$7,825 $8,006 Right-of-use assets$7,933 $7,888 
Lease liabilitiesLease liabilities8,286 8,508 Lease liabilities8,349 8,328 
The Firm’s net rental expense was $483$495 million and $475$490 million for the three months ended June 30,March 31, 2022 and 2021, and 2020, and $974 million and $949 million for the six months ended June 30, 2021 and 2020.respectively.
Firm as lessor
The Firm’s lease financings are generallypredominantly auto operating leases, and are included in other assets on the Firm’s Consolidated balance sheets.
The following table presents the Firm’s operating lease income, included within other income, and the related depreciation expense, included within technology, communications and equipment expense, on the Consolidated statements of income:
Three months ended June 30,Six months ended June 30,Three months ended March 31,

(in millions)
(in millions)		2021202020212020
(in millions)		20222021
Operating lease incomeOperating lease income$1,277 $1,413 $2,602 $2,810 Operating lease income$1,048 $1,325 
Depreciation expenseDepreciation expense876 1,084 1,809 2,224 Depreciation expense711 934 


161148

Note 17 - Preferred stock
Refer to Note 21 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion on preferred stock.
The following is a summary of JPMorgan Chase’s non-cumulative preferred stock outstanding as of June 30, 2021March 31, 2022 and December 31, 2020,2021, and the quarterly dividend declarations for the three and six months ended June 30, 2021March 31, 2022 and 2020.2021.
Shares
Carrying value
 (in millions)
Contractual rate in effect at June 30, 2021Earliest redemption date
Floating annualized rate(a)
Dividend declared
per share		Shares
Carrying value
 (in millions)
Contractual rate in effect at March 31, 2022Earliest redemption date
Floating annualized rate(a)
Dividend declared
per share
June 30, 2021December 31, 2020June 30, 2021December 31, 2020Issue dateThree months ended June 30,Six months ended June 30,March 31, 2022December 31, 2021March 31, 2022December 31, 2021Issue dateThree months ended March 31,
2020Contractual rate in effect at June 30, 2021Earliest redemption date
Floating annualized rate(a)
Contractual rate in effect at March 31, 2022Earliest redemption date
Floating annualized rate(a)
Fixed-rate:Fixed-rate:Fixed-rate:
Series Y0 0 $0 $0 2/12/20150 %3/1/2020NA$0$0$0$153.13
Series AASeries AA0 142,500 0 1,425 6/4/20156.100 9/1/2020NA152.50152.50305.00305.00Series AA— — $— $— 6/4/2015— %9/1/2020NA$—$152.50
Series BBSeries BB0 115,000 0 1,150 7/29/20156.150 9/1/2020NA153.75153.75307.50307.50Series BB— — — — 7/29/2015— 9/1/2020NA—153.75
Series DDSeries DD169,625 169,625 1,696 1,696 9/21/20185.750 12/1/2023NA143.75143.75287.50287.50Series DD169,625 169,625 1,696 1,696 9/21/20185.750 12/1/2023NA143.75143.75
Series EESeries EE185,000 185,000 1,850 1,850 1/24/20196.000 3/1/2024NA150.00150.00300.00300.00Series EE185,000 185,000 1,850 1,850 1/24/20196.000 3/1/2024NA150.00150.00
Series GGSeries GG90,000 90,000 900 900 11/7/20194.750 12/1/2024NA118.75118.75237.50269.17(b)Series GG90,000 90,000 900 900 11/7/20194.750 12/1/2024NA118.75118.75
Series JJSeries JJ150,000 0 1,500 0 3/17/20214.550 6/1/2026NA93.53NA93.53NA(c)Series JJ150,000 150,000 1,500 1,500 3/17/20214.550 6/1/2026NA113.75NA
Series LLSeries LL185,000 0 1,850 0 5/20/20214.625 6/1/2026NA0NA0NA(d)Series LL185,000 185,000 1,850 1,850 5/20/20214.625 6/1/2026NA115.63NA
Series MMSeries MM200,000 200,000 2,000 2,000 7/29/20214.200 9/1/2026NA105.00NA
Fixed-to-floating-rate:Fixed-to-floating-rate:Fixed-to-floating-rate:
Series ISeries I293,375 293,375 $2,934 $2,934 4/23/2008LIBOR + 3.47%4/30/2018LIBOR + 3.47%$92.40$106.93$185.46$239.37Series I293,375 293,375 $2,934 $2,934 4/23/2008LIBOR + 3.47%4/30/2018LIBOR + 3.47%$92.13$93.06
Series QSeries Q150,000 150,000 1,500 1,500 4/23/20135.150 5/1/2023LIBOR + 3.25128.75128.75257.50257.50Series Q150,000 150,000 1,500 1,500 4/23/20135.150 5/1/2023LIBOR + 3.25128.75128.75
Series RSeries R150,000 150,000 1,500 1,500 7/29/20136.000 8/1/2023LIBOR + 3.30150.00150.00300.00300.00Series R150,000 150,000 1,500 1,500 7/29/20136.000 8/1/2023LIBOR + 3.30150.00150.00
Series SSeries S200,000 200,000 2,000 2,000 1/22/20146.750 2/1/2024LIBOR + 3.78168.75168.75337.50337.50Series S200,000 200,000 2,000 2,000 1/22/20146.750 2/1/2024LIBOR + 3.78168.75168.75
Series USeries U100,000 100,000 1,000 1,000 3/10/20146.125 4/30/2024LIBOR + 3.33153.13153.13306.25306.25Series U100,000 100,000 1,000 1,000 3/10/20146.125 4/30/2024LIBOR + 3.33153.13153.13
Series VSeries V250,000 250,000 2,500 2,500 6/9/2014LIBOR + 3.32%7/1/2019LIBOR + 3.3289.02120.16174.99250.89Series V250,000 250,000 2,500 2,500 6/9/2014LIBOR + 3.32%7/1/2019LIBOR + 3.3286.4085.97
Series XSeries X160,000 160,000 1,600 1,600 9/23/20146.100 10/1/2024LIBOR + 3.33152.50152.50305.00305.00Series X160,000 160,000 1,600 1,600 9/23/20146.100 10/1/2024LIBOR + 3.33152.50152.50
Series ZSeries Z200,000 200,000 2,000 2,000 4/21/2015LIBOR + 3.80%5/1/2020LIBOR + 3.80100.50117.15201.74249.65(e)Series Z— 200,000 — 2,000 4/21/2015— 5/1/2020LIBOR + 3.80—101.24
Series CCSeries CC125,750 125,750 1,258 1,258 10/20/20174.625 11/1/2022LIBOR + 2.58115.63115.63231.25231.25Series CC125,750 125,750 1,258 1,258 10/20/20174.625 11/1/2022LIBOR + 2.58115.63115.63
Series FFSeries FF225,000 225,000 2,250 2,250 7/31/20195.000 8/1/2024SOFR + 3.38125.00125.00250.00250.00Series FF225,000 225,000 2,250 2,250 7/31/20195.000 8/1/2024SOFR + 3.38125.00125.00
Series HHSeries HH300,000 300,000 3,000 3,000 1/23/20204.600 2/1/2025SOFR + 3.125115.00115.00230.00240.22(f)Series HH300,000 300,000 3,000 3,000 1/23/20204.600 2/1/2025SOFR + 3.125115.00115.00
Series IISeries II150,000 150,000 1,500 1,500 2/24/20204.000 4/1/2025SOFR + 2.745100.00$141.11200.00141.11(g)Series II150,000 150,000 1,500 1,500 2/24/20204.000 4/1/2025SOFR + 2.745100.00100.00
Series KKSeries KK200,000 0 2,000 0 5/12/20213.650 6/1/2026CMT + 2.850NA0NA(h)Series KK200,000 200,000 2,000 2,000 5/12/20213.650 6/1/2026CMT + 2.8591.25NA
Total preferred stockTotal preferred stock3,283,750 3,006,250 $32,838 $30,063 Total preferred stock3,283,750 3,483,750 $32,838 $34,838 
(a)Floating annualized rate includes three-month LIBOR, three-month term SOFR or five-year Constant Maturity Treasury ("CMT") rate, as applicable, plus the spreads noted above.
(b)Dividends in the amount of $150.42 per share were declared on January 8, 2020 and include dividends from the original issue date of November 7, 2019 through February 29, 2020. Dividends in the amount of $118.75 per share were declared thereafter on April 13, 2020.
(c)Dividends in the amount of $93.53 per share were declared on April 9, 2021 and include dividends from the original issue date of March 17, 2021 though May 31, 2021.
(d)NaN dividends were declared for Series LL from the original issue date of May 20, 2021 though June 30, 2021.
(e)The dividend rate for Series Z preferred stock became floating and payable quarterly starting on May 1, 2020; prior to which the dividend rate was fixed at 5.3% or $265.00 per share payable semi annually.
(f)Dividends in the amount of $125.22 per share were declared on March 13, 2020 and include dividends from the original issue date of January 23, 2020 through April 30, 2020. Dividends in the amount of $115.00 per share were declared thereafter on June 9, 2020.
(g)Dividends in the amount of $141.11 per share were declared on May 15, 2020 and include dividends from the original issue date of February 24, 2020 through
June 30, 2020.
(h)NaN dividends were declared for Series KK from the original issue date of May 12, 2021 through June 30, 2021.
Each series of preferred stock has a liquidation value and redemption price per share of $10,000, plus accrued but unpaid dividends. The aggregate liquidation value was $33.2 billion at June 30, 2021.March 31, 2022.
Redemptions
On July 29, 2021,February 1, 2022, the Firm issuedredeemed all $2.0 billion of 4.20%its fixed-to-floating rate non-cumulative preferred stock, Series MM.
RedemptionsZ.
On June 1, 2021, the Firm redeemed all $1.4$1.43 billion of its 6.10% non-cumulative preferred stock, Series AA and all $1.2$1.15 billion of its 6.15% non-cumulative preferred stock, Series BB.
On March 1, 2020, the Firm redeemed all $1.43 billion of its 6.125% non-cumulative preferred stock, Series Y.

162149

Note 18 – Earnings per share
Refer to Note 23 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of the computation of basic and diluted earnings per share (“EPS”). The following table presents the calculation of basic and diluted EPS for the three and six months ended June 30, 2021March 31, 2022 and 2020.2021.
(in millions, except per share amounts)(in millions, except per share amounts)Three months ended June 30,Six months ended June 30,(in millions, except per share amounts)Three months ended March 31,
202120202021202020222021
Basic earnings per shareBasic earnings per shareBasic earnings per share
Net incomeNet income$11,948 $4,687 $26,248 $7,552 Net income$8,282 $14,300 
Less: Preferred stock dividendsLess: Preferred stock dividends393 401 772 822 Less: Preferred stock dividends397 379 
Net income applicable to common equityNet income applicable to common equity11,555 4,286 25,476 6,730 Net income applicable to common equity7,885 13,921 
Less: Dividends and undistributed earnings allocated to participating securitiesLess: Dividends and undistributed earnings allocated to participating securities59 21 130 32 Less: Dividends and undistributed earnings allocated to participating securities40 70 
Net income applicable to common stockholdersNet income applicable to common stockholders$11,496 $4,265 $25,346 $6,698 Net income applicable to common stockholders$7,845 $13,851 
Total weighted-average basic shares
outstanding
Total weighted-average basic shares
outstanding
3,036.6 3,076.3 3,054.9 3,086.1 
Total weighted-average basic shares
outstanding
2,977.0 3,073.5 
Net income per shareNet income per share$3.79 $1.39 $8.30 $2.17 Net income per share$2.64 $4.51 
Diluted earnings per shareDiluted earnings per shareDiluted earnings per share
Net income applicable to common stockholdersNet income applicable to common stockholders$11,496 $4,265 $25,346 $6,698 Net income applicable to common stockholders$7,845 $13,851 
Total weighted-average basic shares
outstanding
Total weighted-average basic shares
outstanding
3,036.6 3,076.3 3,054.9 3,086.1 
Total weighted-average basic shares
outstanding
2,977.0 3,073.5 
Add: Dilutive impact of SARs and employee stock options, unvested PSUs and nondividend-earning RSUsAdd: Dilutive impact of SARs and employee stock options, unvested PSUs and nondividend-earning RSUs5.3 4.7 5.4 4.7 Add: Dilutive impact of SARs and employee stock options, unvested PSUs and nondividend-earning RSUs4.0 5.4 
Total weighted-average diluted shares outstandingTotal weighted-average diluted shares outstanding3,041.9 3,081.0 3,060.3 3,090.8 Total weighted-average diluted shares outstanding2,981.0 3,078.9 
Net income per shareNet income per share$3.78 $1.38 $8.28 $2.17 Net income per share$2.63 $4.50 

163150

Note 19 – 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, and fair value option-elected liabilities arising from changes in the Firm’s own credit risk (DVA).
As of or for the three months ended
June 30, 2021
(in millions)		Unrealized
gains/(losses)
on investment securities		Translation adjustments, net of hedgesFair value hedgesCash flow hedgesDefined benefit
pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
Balance at April 1, 2021$3,841 $(723)$(140)$134 $(1,064)$(1,007)$1,041 
Net change674 64 (23)591 9 214 1,529 
Balance at June 30, 2021$4,515 (a)$(659)$(163)$725 $(1,055)$(793)$2,570 
As of or for the three months ended
June 30, 2020
(in millions)		Unrealized
gains/(losses)
on investment securities		Translation adjustments, net of hedgesFair value hedgesCash flow hedgesDefined benefit pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
Balance at April 1, 2020$5,176 $(1,037)$(43)$2,528 $(1,311)$2,105 $7,418 
Net change2,744 142 16 234 (7)(1,758)1,371 
Balance at June 30, 2020$7,920 (a)$(895)$(27)$2,762 $(1,318)$347 $8,789 
As of or for the six months ended
June 30, 2021
(in millions)		Unrealized
gains/(losses)
on investment securities		Translation adjustments, net of hedgesFair value hedgesCash flow hedgesDefined benefit
pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
Balance at January 1, 2021$8,180 $(473)$(112)$2,383 $(1,132)$(860)$7,986 
Net change(3,665)(186)(51)(1,658)77 67 (5,416)
Balance at June 30, 2021$4,515 (a)$(659)$(163)$725 $(1,055)$(793)$2,570 
As of or for the six months ended
June 30, 2020
(in millions)		Unrealized
gains/(losses)
on investment securities		Translation adjustments, net of hedgesFair value hedgesCash flow hedgesDefined benefit pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
Balance at January 1, 2020$4,057 $(707)$(131)$63 $(1,344)$(369)$1,569 
Net change3,863 (188)104 2,699 26 716 7,220 
Balance at June 30, 2020$7,920 (a)$(895)$(27)$2,762 $(1,318)$347 $8,789 
As of or for the three months ended
March 31, 2022
(in millions)		Unrealized
gains/(losses)
on investment securities		Translation adjustments, net of hedgesFair value hedgesCash flow hedgesDefined benefit
pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
Balance at January 1, 2022$2,640 $(934)$(131)$(296)$(210)$(1,153)$(84)
Net change(7,453)(62)110 (2,791)67 646 (9,483)
Balance at March 31, 2022$(4,813)(a)$(996)$(21)$(3,087)$(143)$(507)$(9,567)
As of or for the three months ended
March 31, 2021
(in millions)		Unrealized
gains/(losses)
on investment securities		Translation adjustments, net of hedgesFair value hedgesCash flow hedgesDefined benefit pension and
OPEB plans		DVA on fair value option elected liabilitiesAccumulated other comprehensive income/(loss)
Balance at January 1, 2021$8,180 $(473)$(112)$2,383 $(1,132)$(860)$7,986 
Net change(4,339)(250)(28)(2,249)68 (147)(6,945)
Balance at March 31, 2021$3,841 (a)$(723)$(140)$134 $(1,064)$(1,007)$1,041 
(a)As of June 30,March 31, 2022 and 2021 and 2020, includes after-tax net unamortized unrealized gains of $3.0$2.2 billion and $703 million$2.9 billion, related to AFS securities that have been transferred to HTM, respectively. Refer to Note 10 of JPMorgan Chase's 20202021 Form 10-K for further information.





















164

The following table presents the pre-tax and after-tax changes in the components of OCI.
2021202020222021
Three months ended June 30,
(in millions)		Pre-taxTax effectAfter-taxPre-taxTax effectAfter-tax
Three months ended March 31,
(in millions)		Three months ended March 31,
(in millions)		Pre-taxTax effectAfter-taxPre-taxTax effectAfter-tax
Unrealized gains/(losses) on investment securities:Unrealized gains/(losses) on investment securities:Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the periodNet unrealized gains/(losses) arising during the period$727 $(171)$556 $3,642 $(878)$2,764 Net unrealized gains/(losses) arising during the period$(10,202)$2,450 $(7,752)$(5,693)$1,365 $(4,328)
Reclassification adjustment for realized (gains)/losses included in net income(a)
Reclassification adjustment for realized (gains)/losses included in net income(a)
155 (37)118 (26)6 (20)
Reclassification adjustment for realized (gains)/losses included in net income(a)
394 (95)299 (14)3 (11)
Net changeNet change882 (208)674 3,616 (872)2,744 Net change(9,808)2,355 (7,453)(5,707)1,368 (4,339)
Translation adjustments(b):
Translation adjustments:Translation adjustments:
TranslationTranslation280 (10)270 405 46 451 Translation(341)24 (317)(1,200)39 (1,161)
HedgesHedges(270)64 (206)(405)96 (309)Hedges338 (83)255 1,200 (289)911 
Net changeNet change10 54 64 0 142 142 Net change(3)(59)(62)— (250)(250)
Fair value hedges, net change(c):
(31)8 (23)21 (5)16 
Fair value hedges, net change(b):
Fair value hedges, net change(b):
145 (35)110 (37)9 (28)
Cash flow hedges:Cash flow hedges:Cash flow hedges:
Net unrealized gains/(losses) arising during the periodNet unrealized gains/(losses) arising during the period1,118 (269)849 402 (97)305 Net unrealized gains/(losses) arising during the period(3,436)825 (2,611)(2,695)647 (2,048)
Reclassification adjustment for realized (gains)/losses included in net income(d)
(340)82 (258)(93)22 (71)
Reclassification adjustment for realized (gains)/losses included in net income(c)
Reclassification adjustment for realized (gains)/losses included in net income(c)
(237)57 (180)(264)63 (201)
Net changeNet change778 (187)591 309 (75)234 Net change(3,673)882 (2,791)(2,959)710 (2,249)
Defined benefit pension and OPEB plans, net change:Defined benefit pension and OPEB plans, net change:2 7 9 (4)(3)(7)Defined benefit pension and OPEB plans, net change:90 (23)67 91 (23)68 
DVA on fair value option elected liabilities, net change:DVA on fair value option elected liabilities, net change:276 (62)214 (2,314)556 (1,758)DVA on fair value option elected liabilities, net change:859 (213)646 (189)42 (147)
Total other comprehensive income/(loss)Total other comprehensive income/(loss)$1,917 $(388)$1,529 $1,628 $(257)$1,371 Total other comprehensive income/(loss)$(12,390)$2,907 $(9,483)$(8,801)$1,856 $(6,945)
20212020
Six months ended June 30,
(in millions)		Pre-taxTax effectAfter-taxPre-taxTax effectAfter-tax
Unrealized gains/(losses) on investment securities:
Net unrealized gains/(losses) arising during the period$(4,966)$1,194 $(3,772)$5,351 $(1,291)$4,060 
Reclassification adjustment for realized (gains)/losses included in net income(a)
141 (34)107 (259)62 (197)
Net change(4,825)1,160 (3,665)5,092 (1,229)3,863 
Translation adjustments(b):
Translation(920)29 (891)(1,187)101 (1,086)
Hedges930 (225)705 1,184 (286)898 
Net change10 (196)(186)(3)(185)(188)
Fair value hedges, net change(c):
(68)17 (51)136 (32)104 
Cash flow hedges:
Net unrealized gains/(losses) arising during the period(1,577)378 (1,199)3,653 (877)2,776 
Reclassification adjustment for realized (gains)/losses included in net income(d)
(604)145 (459)(101)24 (77)
Net change(2,181)523 (1,658)3,552 (853)2,699 
Defined benefit pension and OPEB plans, net change:93 (16)77 41 (15)26 
DVA on fair value option elected liabilities, net change:87 (20)67 941 (225)716 
Total other comprehensive income/(loss)$(6,884)$1,468 $(5,416)$9,759 $(2,539)$7,220 
(a)The pre-tax amount is reported in Investment securities gains/(losses) in the Consolidated statements of income.
(b)Reclassifications of pre-tax realized gains/(losses) on translation adjustments and related hedges are reported in other income/expense in the Consolidated statements of income. The amounts were not material for the three and six months ended June 30, 2021 and 2020.
(c)Represents changes in fair value of cross-currency swaps attributable to changes in cross-currency basis spreads, which are excluded from the assessment of hedge effectiveness and recorded in other comprehensive income. The initial cost of cross-currency basis spreads is recognized in earnings as part of the accrual of interest on the cross currency swaps.
(d)(c)The pre-tax amounts are primarily recorded in noninterest revenue, net interest income and compensation expense in the Consolidated statements of income.

165151

Note 20 – Restricted cash and other restricted
assets
Refer to Note 26 of JPMorgan Chase’s 20202021 Form 10-K for a detailed discussion of the Firm’s restricted cash and other restricted assets.
Certain of the Firm’s cash and other assets are restricted as to withdrawal or usage. These restrictions are imposed by various regulatory authorities based on the particular activities of the Firm’s subsidiaries.
The Firm is also subject to rules and regulations established by other U.S. and non U.S. regulators. As part of its compliance with the respective regulatory requirements, the Firm’s broker-dealer activities are subject to certain restrictions on cash and other assets.
The following table presents the components of the Firm’s restricted cash:
(in billions)(in billions)June 30,
2021		December 31, 2020(in billions)March 31,
2022		December 31, 2021
Segregated for the benefit of securities and cleared derivative customersSegregated for the benefit of securities and cleared derivative customers13.6 19.3 Segregated for the benefit of securities and cleared derivative customers23.4 14.6 
Cash reserves at non-U.S. central banks and held for other general purposesCash reserves at non-U.S. central banks and held for other general purposes5.4 5.1 Cash reserves at non-U.S. central banks and held for other general purposes7.4 5.1 
Total restricted cash(a)
Total restricted cash(a)
$19.0 $24.4 
Total restricted cash(a)
$30.8 $19.7 
(a)Comprises $17.4$29.6 billion and $22.7$18.4 billion in deposits with banks, and $1.6$1.2 billion and $1.7$1.3 billion in cash and due from banks on the Consolidated balance sheet as of June 30, 2021March 31, 2022 and December 31, 2020,2021, respectively.
Also, as of June 30, 2021March 31, 2022 and December 31, 2020,2021, the Firm had the following other restricted assets:
•Cash and securities pledged with clearing organizations for the benefit of customers of $42.9$41.5 billion and $37.2$47.5 billion, respectively.
•Securities with a fair value of $19.9$34.4 billion and $1.3$30.0 billion, respectively, were also restricted in relation to customer activity.



152

Note 21 – Regulatory capital
Refer to Note 27 of JPMorgan Chase’s 20202021 Form 10-K for a detailed discussion on regulatory capital.
The Federal Reserve establishes capital requirements, including well-capitalized requirements, for the consolidated financial holding company. The OCC establishes similar minimum capital requirements and standards for the Firm’s principal IDI subsidiary, JPMorgan Chase Bank, N.A.
Under the risk-based capital and leverage-based guidelines of the Federal Reserve, JPMorgan Chase is required to maintain minimum ratios for CET1 capital, Tier 1 capital, Total capital, Tier 1 leverage and the SLR. Failure to meet these minimum requirements could cause the Federal Reserve to take action. IDI subsidiaries are also subject to these capital requirements established by their respective primary regulators.
The following table presents the minimumrisk-based regulatory capital ratio requirements and well-capitalized ratios to which the Firm and its IDI subsidiaries were subject as of June 30, 2021March 31, 2022 and December 31, 2020.2021.
Standardized Minimum capital ratiosAdvanced Minimum capital ratiosWell-capitalized ratiosStandardized capital ratio requirementsAdvanced
capital ratio requirements		Well-capitalized ratios
BHC(a)
IDI(c)
BHC(a)(b)
IDI(b)(c)
BHC(d)
IDI(e)
BHC(a)
IDI(b)
BHC(a)
IDI(b)
BHC(c)
IDI(d)
Capital ratios
Risk-based capital ratiosRisk-based capital ratios
CET1 capitalCET1 capital11.3 %7.0 %10.5 %7.0 %NA6.5 %CET1 capital11.2 %7.0 %10.5 %7.0 %NA6.5 %
Tier 1 capitalTier 1 capital12.8 8.5 12.0 8.5 6.0 %8.0 Tier 1 capital12.7 8.5 12.0 8.5 6.0 %8.0 
Total capitalTotal capital14.8 10.5 14.0 10.5 10.0 10.0 Total capital14.7 10.5 14.0 10.5 10.0 10.0 
Tier 1 leverage4.0 4.0 4.0 4.0 NA5.0 
SLRNA5.0 6.0 NA6.0 
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 minimumregulatory capital ratiosratio requirements applicable to the Firm. The CET1, Tier 1 and Total capital minimum capital ratiosratio requirements each include a respective minimum requirement plus a GSIB surcharge of 3.5% as calculated under Method 2; plus a 3.3%3.2% SCB for Basel III Standardized ratios and a fixed 2.5% capital conservation buffer for Basel III Advanced ratios. The countercyclical buffer is currently set to 0% by the federal banking agencies.
(b)Represents minimum SLR requirement of 3.0%, as well as supplementary leverage buffer requirements of 2.0% and 3.0% for BHC and IDI subsidiaries, respectively.
(c)Represents requirements for JPMorgan Chase’s IDI subsidiaries. The CET1, Tier 1 and Total capital minimum capital ratiosratio requirements include a fixed capital conservation buffer requirement of 2.5% that is applicable to the IDI subsidiaries. The IDI subsidiaries are not subject to the GSIB surcharge.
(d)(c)Represents requirements for bank holding companies pursuant to regulations issued by the Federal Reserve.
(e)(d)Represents requirements for IDI subsidiaries pursuant to regulations issued under the FDIC Improvement Act.
The following table presents the leverage-based regulatory capital ratio requirements and well-capitalized ratios to which the Firm and its IDI subsidiaries were subject as of March 31, 2022 and December 31, 2021.
Capital ratio requirements(a)
Well-capitalized ratios
BHCIDI
BHC(b)
IDI
Leverage-based capital ratios
Tier 1 leverage4.0 %4.0 %NA5.0 %
SLR5.0 6.0 NA6.0 
Note: The table above is as defined by the regulations issued by the Federal Reserve, OCC and FDIC and to which the Firm and its IDI subsidiaries are subject.

(a)Represents minimum SLR requirement of 3.0%, as well as supplementary leverage buffer requirements of 2.0% and 3.0% for BHC and IDI subsidiaries, respectively.

(b)The Federal Reserve's regulations do not establish well-capitalized thresholds for these measures for BHCs.

166

CECL regulatory capital transition delay
As part of their response toOn December 31, 2021, the impact of the COVID-19 pandemic, the federal banking agencies issued a final rule that provided the option beginning January 1, 2020 to delayCECL capital transition provisions, which delayed the effects of CECL on regulatory capital for two years, followed byexpired. Beginning January 1, 2022, the $2.9 billion CECL capital benefit recognized as of December 31, 2021, will be phased out at 25% per year over a three-year transition period beginning January 1, 2022.
The Firm has elected to applyperiod. As of March 31, 2022, CET1 capital reflected the remaining 75%, or $2.2 billion, benefit associated with the CECL capital transition provisions, and accordingly, for the period ended June 30, 2021, the capital metrics ofprovisions.
Additionally, effective January 1, 2022, the Firm exclude $3.8 billion,
which is the $2.7 billion day 1 impact to retained earnings andphased out 25% of the $4.0 billion increase in the allowance for credit losses from January 1, 2020 (excluding allowances on PCD loans).
The impacts of theother relevant CECL capital transition provisions have also been incorporated intorecognized as of December 31, 2021, from Tier 2 capital, adjusted average assets, and total leverage exposure.
Refer to Note 27 of JPMorgan Chase’s 20202021 Form 10-K for further information on CECL capital transition provisions.
153

The following tables present risk-based capital metrics under both the Basel III Standardized and Basel III Advanced Approachesapproaches and leverage-based capital metrics for JPMorgan Chase and JPMorgan Chase Bank, N.A. As of June 30, 2021March 31, 2022 and December 31, 2020,2021, JPMorgan Chase and JPMorgan Chase Bank, N.A. were well-capitalized and met all capital requirements to which each was subject.
June 30, 2021
(in millions, except ratios)		Basel III StandardizedBasel III Advanced
JPMorgan
Chase & Co.(a)
JPMorgan
Chase Bank, N.A.(a)
JPMorgan
Chase & Co.(a)
JPMorgan
Chase Bank, N.A.(a)
March 31, 2022
(in millions, except ratios)		March 31, 2022
(in millions, except ratios)		Basel III StandardizedBasel III Advanced
JPMorgan
Chase & Co.(a)
JPMorgan
Chase Bank, N.A.		JPMorgan
Chase & Co.		JPMorgan
Chase Bank, N.A.
Risk-based capital metrics:(a)Risk-based capital metrics:(a)Risk-based capital metrics:(a)
CET1 capitalCET1 capital$209,010 $251,948 $209,010 $251,948 CET1 capital$207,903 $263,897 $207,903 $263,897 
Tier 1 capitalTier 1 capital241,356 251,951 241,356 251,951 Tier 1 capital240,076 263,900 240,076 263,900 
Total capitalTotal capital274,443 269,803 262,364 257,331 Total capital269,536 280,403 258,989 269,355 
Risk-weighted assetsRisk-weighted assets1,601,631 1,524,072 1,514,386 1,368,435 Risk-weighted assets1,750,678 1,660,498 1,643,453 1,475,342 
CET1 capital ratioCET1 capital ratio13.0 %16.5 %13.8 %18.4 %CET1 capital ratio11.9 %15.9 %12.7 %17.9 %
Tier 1 capital ratioTier 1 capital ratio15.1 16.5 15.9 18.4 Tier 1 capital ratio13.7 15.9 14.6 17.9 
Total capital ratioTotal capital ratio17.1 17.7 17.3 18.8 Total capital ratio15.4 16.9 15.8 18.3 
December 31, 2020
(in millions, except ratios)		Basel III StandardizedBasel III Advanced
JPMorgan
Chase & Co.(a)
JPMorgan
Chase Bank, N.A.(a)
JPMorgan
Chase & Co.(a)
JPMorgan
Chase Bank, N.A.(a)
December 31, 2021
(in millions, except ratios)		December 31, 2021
(in millions, except ratios)		Basel III StandardizedBasel III Advanced
JPMorgan
Chase & Co.(a)
JPMorgan
Chase Bank, N.A.
JPMorgan
Chase & Co.
JPMorgan
Chase Bank, N.A.
Risk-based capital metrics:(a)Risk-based capital metrics:(a)Risk-based capital metrics:(a)
CET1 capitalCET1 capital$205,078 $234,235 $205,078 $234,235 CET1 capital$213,942 $266,907 $213,942 $266,907 
Tier 1 capitalTier 1 capital234,844 234,237 234,844 234,237 Tier 1 capital246,162 266,910 246,162 266,910 
Total capitalTotal capital269,923 252,045 257,228 239,673 Total capital274,900 281,826 265,796 272,299 
Risk-weighted assetsRisk-weighted assets1,560,609 1,492,138 1,484,431 1,343,185 Risk-weighted assets1,638,900 1,582,280 1,547,920 1,392,847 
CET1 capital ratioCET1 capital ratio13.1 %15.7 %13.8 %17.4 %CET1 capital ratio13.1 %16.9 %13.8 %19.2 %
Tier 1 capital ratioTier 1 capital ratio15.0 15.7 15.8 17.4 Tier 1 capital ratio15.0 16.9 15.9 19.2 
Total capital ratioTotal capital ratio17.3 16.9 17.3 17.8 Total capital ratio16.8 17.8 17.2 19.5 
(a)The capital metrics reflect the CECL capital transition provisions. Additionally, loans originated under the PPP receive a zero percent risk weight.


(in millions, except ratios)		June 30, 2021December 31, 2020
JPMorgan
Chase & Co.(b)
JPMorgan
Chase Bank, N.A.(b)
JPMorgan
Chase & Co.(b)(c)
JPMorgan
Chase Bank, N.A.(b)(c)
Leverage-based capital metrics:
Three months ended
(in millions, except ratios)		Three months ended
(in millions, except ratios)		March 31, 2022December 31, 2021
JPMorgan
Chase & Co.(b)
JPMorgan
Chase Bank, N.A.		JPMorgan
Chase & Co.		JPMorgan
Chase Bank, N.A.
Leverage-based capital metrics:(a)
Leverage-based capital metrics:(a)
Adjusted average assets(a)(b)
Adjusted average assets(a)(b)
$3,680,830 $3,198,287 $3,353,319 $2,970,285 
Adjusted average assets(a)(b)
$3,857,783 $3,395,148 $3,782,035 $3,334,925 
Tier 1 leverage ratioTier 1 leverage ratio6.6 %7.9 %7.0 %7.9 %Tier 1 leverage ratio6.2 %7.8 %6.5 %8.0 %
Total leverage exposureTotal leverage exposure$4,456,557 $3,969,718 $3,401,542 $3,688,797 Total leverage exposure$4,586,537 $4,125,933 $4,571,789 $4,119,286 
SLRSLR5.4 %6.3 %6.9 %6.3 %SLR5.2 %6.4 %5.4 %6.5 %
(a)The capital metrics reflect the CECL capital transition provisions.
(b)Adjusted average assets, for purposes of calculating the leverage ratio,ratios, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill, inclusive of estimated equity method goodwill, and other intangible assets.
(b)The capital metrics reflect the CECL capital transition provisions.
(c)JPMorgan Chase’s total leverage exposure for purposes of calculating the SLR, excludes on-balance sheet amounts of U.S. Treasury securities and deposits at Federal Reserve Banks, as provided by the interim final rule issued by the Federal Reserve which became effective April 1, 2020 and remained in effect through March 31, 2021. On June 1, 2020, the Federal Reserve, OCC and FDIC issued an interim final rule which became effective April 1, 2020 and remained in effect through March 31, 2021 that provides IDI subsidiaries with an option to apply this temporary exclusion subject to certain restrictions. JPMorgan Chase Bank, N.A. did not elect to apply this exclusion.

167154

Note 22 – Off–balance sheet lending-related
financial instruments, guarantees, and other
commitments
JPMorgan Chase provides lending-related financial instruments (e.g., commitments and guarantees) to address the financing needs of its customers and clients. The contractual amount of these financial instruments represents the maximum possible credit risk to the Firm should the customer or client draw upon the commitment or the Firm be required to fulfill its obligation under the guarantee, and should the customer or client subsequently fail to perform according to the terms of the contract. Most of these commitments and guarantees have historically been refinanced, extended, cancelled, or expired without being drawn or a default occurring. As a result, the total contractual amount of these instruments is not, in the Firm’s view, representative of its expected future credit exposure or funding requirements. Refer to Note 28 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion of lending-related commitments and guarantees, and the Firm’s related accounting policies.
To provide for expected credit losses in wholesale and certain consumer lending-related commitments, an allowance for credit losses on lending-related commitments is maintained. Refer to Note 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, 2021,March 31, 2022, and December 31, 2020.2021. The amounts in the table below for credit card, home equity and certain scored business banking lending-related commitments represent the total available credit for these products. The Firm has not experienced, and does not anticipate, that all available lines of credit for these products will be utilized at the same time. The Firm can reduce or cancel credit card and certain scored business banking lines of credit by providing the borrower notice or, in some cases as permitted by law, without notice. In addition, the Firm typically closes credit card lines when the borrower is 60 days or more past due. The Firm may reduce or close HELOCs when there are significant decreases in the value of the underlying property, or when there has been a demonstrable decline in the creditworthiness of the borrower.
168155

Off–balance sheet lending-related financial instruments, guarantees and other commitmentsOff–balance sheet lending-related financial instruments, guarantees and other commitmentsOff–balance sheet lending-related financial instruments, guarantees and other commitments
Contractual amount
Carrying value(i)
Contractual amount
Carrying value(h)
June 30, 2021Dec 31,
2020		Jun 30,
2021		Dec 31,
2020		March 31, 2022Dec 31,
2021		Mar 31,
2022		Dec 31,
2021
By remaining maturity
(in millions)		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 yearsTotalTotalBy 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 yearsTotalTotal
Lending-relatedLending-relatedLending-related
Consumer, excluding credit card:Consumer, excluding credit card:Consumer, excluding credit card:
Residential real estate(a)
Residential real estate(a)
$26,071 $1,900 $4,789 $11,633 $44,393 $46,047 $103 $148 
Residential real estate(a)
$17,388 $2,404 $6,242 $8,465 $34,499 $32,996 $153 $100 
Auto and otherAuto and other11,660 0 0 822 12,482 11,272 0 0 Auto and other11,550 — — 1,054 12,604 12,338 — 2 
Total consumer, excluding credit cardTotal consumer, excluding credit card37,731 1,900 4,789 12,455 56,875 57,319 103 148 Total consumer, excluding credit card28,938 2,404 6,242 9,519 47,103 45,334 153 102 
Credit card(b)
Credit card(b)
682,531 0 0 0 682,531 658,506 0 0 
Credit card(b)
757,283 — — — 757,283 730,534 — — 
Total consumer(b)(c)
Total consumer(b)(c)
720,262 1,900 4,789 12,455 739,406 715,825 103 148 
Total consumer(b)(c)
786,221 2,404 6,242 9,519 804,386 775,868 153 102 
Wholesale:Wholesale:Wholesale:
Other unfunded commitments to extend credit(d)
Other unfunded commitments to extend credit(d)
116,310 186,067 138,839 22,357 463,573 415,828 2,796 2,148 
Other unfunded commitments to extend credit(d)
119,003 155,375 164,356 24,077 462,811 453,467 2,120 2,037 
Standby letters of credit and other financial guarantees(d)
Standby letters of credit and other financial guarantees(d)
17,489 7,622 8,471 1,294 34,876 30,982 663 443 
Standby letters of credit and other financial guarantees(d)
14,536 8,245 4,018 1,110 27,909 28,530 476 476 
Other letters of credit(d)
Other letters of credit(d)
3,753 164 249 1 4,167 3,053 8 14 
Other letters of credit(d)
5,943 491 78 — 6,512 4,448 11 9 
Total wholesale(c)
Total wholesale(c)
137,552 193,853 147,559 23,652 502,616 449,863 3,467 2,605 
Total wholesale(c)
139,482 164,111 168,452 25,187 497,232 486,445 2,607 2,522 
Total lending-relatedTotal lending-related$857,814 $195,753 $152,348 $36,107 $1,242,022 $1,165,688 $3,570 $2,753 Total lending-related$925,703 $166,515 $174,694 $34,706 $1,301,618 $1,262,313 $2,760 $2,624 
Other guarantees and commitmentsOther guarantees and commitmentsOther guarantees and commitments
Securities lending indemnification agreements and guarantees(e)
Securities lending indemnification agreements and guarantees(e)
$303,869 $0 $0 $0 $303,869 $250,418 $0 $0 
Securities lending indemnification agreements and guarantees(e)
$365,249 $— $— $— $365,249 $337,770 $— $— 
Derivatives qualifying as guaranteesDerivatives qualifying as guarantees5,509 130 11,603 39,859 57,101 54,415 308 322 Derivatives qualifying as guarantees3,012 292 12,491 41,779 57,574 55,730 486 475 
Unsettled resale and securities borrowed agreementsUnsettled resale and securities borrowed agreements173,862 2,129 0 0 175,991 102,355 (h)0 2 Unsettled resale and securities borrowed agreements216,026 2,121 50 — 218,197 103,681 

(45)1 
Unsettled repurchase and securities loaned agreementsUnsettled repurchase and securities loaned agreements109,014 596 0 0 109,610 104,901 0 (1)Unsettled repurchase and securities loaned agreements134,400 889 — — 135,289 74,263 (2)— 
Loan sale and securitization-related indemnifications:Loan sale and securitization-related indemnifications:Loan sale and securitization-related indemnifications:
Mortgage repurchase liabilityMortgage repurchase liabilityNANA72 84 Mortgage repurchase liabilityNANA57 61 
Loans sold with recourseLoans sold with recourseNA822 889 21 23 Loans sold with recourseNA846 827 18 19 
Exchange & clearing house guarantees and commitments(f)
Exchange & clearing house guarantees and commitments(f)
109,977 0 0 0 109,977 142,003 0 0 
Exchange & clearing house guarantees and commitments(f)
141,956 — — — 141,956 182,701 — — 
Other guarantees and commitments(g)
Other guarantees and commitments(g)
6,506 2,945 328 1,727 11,506 9,639 (h)51 52 
Other guarantees and commitments(g)
11,080 949 282 1,902 14,213 10,490 

65 69 
(a)Includes certain commitments to purchase loans from correspondents.
(b)Also includes commercial card lending-related commitments primarily in CB and CIB.
(c)Predominantly all consumer and wholesale lending-related commitments are in the U.S.
(d)At June 30, 2021,March 31, 2022, and December 31, 2020,2021, reflected the contractual amount net of risk participations totaling $70$51 million and $72$44 million, respectively, for other unfunded commitments to extend credit; $8.1$7.8 billion and $8.5$7.9 billion, respectively, for standby letters of credit and other financial guarantees; and $808$660 million and $357$451 million, respectively, for other letters of credit. In regulatory filings with the Federal Reserve these commitments are shown gross of risk participations.
(e)At June 30, 2021,March 31, 2022, and December 31, 2020,2021, collateral held by the Firm in support of securities lending indemnification agreements was $320.6$387.6 billion and $264.3$357.4 billion, respectively. Securities lending collateral primarily consists of cash, G7 government securities, and securities issued by U.S. GSEs and government agencies.
(f)At June 30, 2021,March 31, 2022, and December 31, 2020,2021, includes guarantees to the Fixed Income Clearing Corporation under the sponsored member repo program and commitments and guarantees associated with the Firm’s membership in certain clearing houses.
(g)At June 30, 2021,March 31, 2022, and December 31, 2020, 2021, primarily includes unfunded commitments to purchase secondary market loans, unfunded commitments related to certain tax-oriented equity investments, and other equity investment commitments,commitments.
(h)Prior-period amounts have been revised to conform with the current presentation.
(i)For lending-related products, the carrying value represents the allowance for lending-related commitments and the guarantee liability; for derivative-related products, and lending-related commitments for which the fair value option was elected, the carrying value represents the fair value.

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Other unfunded commitments to extend credit
Other unfunded commitments to extend credit generally consist of commitments for working capital and general corporate purposes, extensions of credit to support commercial paper facilities and bond financings in the event that those obligations cannot be remarketed to new investors, as well as committed liquidity facilities to clearing organizations. The Firm also issues commitments under multipurpose facilities which could be drawn upon in
several forms, including the issuance of a standby letter of credit.
Standby letters of credit and other financial guarantees
Standby letters of credit and other financial guarantees are conditional lending commitments issued by the Firm to guarantee the performance of a client or customer to a third party under certain arrangements, such as commercial paper facilities, bond financings, acquisition financings, trade financings and similar transactions.
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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, 2021,March 31, 2022, and December 31, 2020.2021.
Standby letters of credit, other financial guarantees and other letters of credit
June 30, 2021December 31, 2020March 31, 2022December 31, 2021
(in millions)(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		(in millions)Standby letters of
credit and other financial guarantees		Other letters
of credit		Standby letters of
credit and other financial guarantees		Other letters
of credit
Investment-grade(a)
Investment-grade(a)
$26,955 $3,072 $22,850 $2,263 
Investment-grade(a)
$19,186 $4,771 $19,998 $3,087 
Noninvestment-grade(a)
Noninvestment-grade(a)
7,921 1,095 8,132 790 
Noninvestment-grade(a)
8,723 1,741 8,532 1,361 
Total contractual amountTotal contractual amount$34,876 $4,167 $30,982 $3,053 Total contractual amount$27,909 $6,512 $28,530 $4,448 
Allowance for lending-related commitmentsAllowance for lending-related commitments$67 $8 $80 $14 Allowance for lending-related commitments$136 $11 $123 $9 
Guarantee liabilityGuarantee liability596 0 363 0 Guarantee liability340 — 353 — 
Total carrying valueTotal carrying value$663 $8 $443 $14 Total carrying value$476 $11 $476 $9 
Commitments with collateralCommitments with collateral$21,401 $886 $17,238 $498 Commitments with collateral$14,921 $782 $14,511 $999 
(a)The ratings scale is based on the Firm’s internal risk ratings. Refer to Note 11 for further information on internal risk ratings.
Derivatives qualifying as guarantees
The Firm transacts in certain derivative contracts that have the characteristics of a guarantee under U.S. GAAP. Refer to Note 28 of JPMorgan Chase’s 20202021 Form 10-K for further information on these derivatives.
The following table summarizes the derivatives qualifying as guarantees as of June 30, 2021,March 31, 2022, and December 31, 2020.2021.
(in millions)(in millions)June 30, 2021December 31, 2020(in millions)March 31, 2022December 31, 2021
Notional amountsNotional amountsNotional amounts
Derivative guaranteesDerivative guarantees$57,101 $54,415 Derivative guarantees$57,574 $55,730 
Stable value contracts with contractually limited exposureStable value contracts with contractually limited exposure29,410 27,752 Stable value contracts with contractually limited exposure31,632 29,778 
Maximum exposure of stable value contracts with contractually limited exposureMaximum exposure of stable value contracts with contractually limited exposure2,813 2,803 Maximum exposure of stable value contracts with contractually limited exposure2,888 2,882 
Fair valueFair valueFair value
Derivative payablesDerivative payables308 322 Derivative payables486 475 
In addition to derivative contracts that meet the characteristics of a guarantee, the Firm is both a purchaser and seller of credit protection in the credit derivatives market. Refer to Note 4 for a further discussion of credit derivatives.
Merchant charge-backs
Under the rules of payment networks, the Firm, in its role as a merchant acquirer, retains a contingent liability for disputed processed credit and debit card transactions that result in a charge-back to the merchant. If a dispute is resolved in the cardholder’s favor, Merchant Services will (through the cardholder’s issuing bank) credit or refund the amount to the cardholder and will charge back the transaction to the merchant. If Merchant Services is unable to collect the amount from the merchant, Merchant Services will bear the loss for the amount credited or refunded to the cardholder. Merchant Services mitigates this risk by withholding future settlements, retaining cash reserve accounts or obtaining other collateral. In addition, Merchant Services recognizes a valuation allowance that covers the payment or performance risk to the Firm related to charge-backs.
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Loan sales- and securitization-related indemnifications
In connection with the Firm’s mortgage loan sale and securitization activities with GSEs the Firm has made representations and warranties that the loans sold meet certain requirements, and that may require the Firm to repurchase mortgage loans and/or indemnify the loan purchaser if such representations and warranties are breached by the Firm.
The liability related to repurchase demands associated with private label securitizations is separately evaluated by the Firm in establishing its litigation reserves. Refer to Note 24 of this Form 10-Q and Note 30 of JPMorgan Chase’s 20202021 Form 10-K for additional information regarding litigation.
Sponsored member repo program
The Firm acts as a sponsoring member to clear eligible overnight and term 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 169.156. Refer to Note 11 of JPMorgan Chase’s 20202021 Form 10-K for additional information on credit risk mitigation practices on resale agreements and the types of collateral pledged under repurchase agreements.
Guarantees of subsidiaries
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 no other subsidiary of the Parent Company guarantees these securities. These guarantees, which rank on a parity with the Firm’s unsecured and unsubordinated indebtedness, are not included in the table on page 169156 of this Note. Refer to Note 20 of JPMorgan Chase’s 20202021 Form 10-K for additional information.

Note 23 – Pledged assets and collateral
Refer to Note 29 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of the Firm’s pledged assets and collateral.
Pledged assets
The Firm pledges financial assets that it owns to maintain potential borrowing capacity at discount windows with Federal Reserve banks, various other central banks and FHLBs. Additionally, the Firm pledges assets for other purposes, including to collateralize repurchase and other securities financing agreements, to cover short sales and 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’s pledged assets.
(in billions)(in billions)June 30, 2021December 31, 2020(in billions)March 31, 2022December 31, 2021
Assets that may be sold or repledged or otherwise used by secured partiesAssets that may be sold or repledged or otherwise used by secured parties$186.1 $166.6 Assets that may be sold or repledged or otherwise used by secured parties$149.0 $126.3 
Assets that may not be sold or repledged or otherwise used by secured partiesAssets that may not be sold or repledged or otherwise used by secured parties121.7 113.9 Assets that may not be sold or repledged or otherwise used by secured parties91.0 112.0 
Assets pledged at Federal Reserve banks and FHLBsAssets pledged at Federal Reserve banks and FHLBs447.5 455.3 Assets pledged at Federal Reserve banks and FHLBs486.5 476.4 
Total pledged assetsTotal pledged assets$755.3 $735.8 Total pledged assets$726.5 $714.7 
Total pledged assets 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. Refer to Note 10 for additional information on the Firm’s securities financing activities. Refer to Note 20 of JPMorgan Chase’s 20202021 Form 10-K for additional information on the Firm’s long-term debt.
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, prime brokerage-related held-for-investment customer receivables and derivative contracts. Collateral is generally used under repurchase and other securities financing agreements, to cover short sales and to collateralize derivative contracts and deposits.
The following table presents the fair value of collateral accepted.
(in billions)(in billions)June 30, 2021December 31, 2020(in billions)March 31, 2022December 31, 2021
Collateral permitted to be sold or repledged, delivered, or otherwise usedCollateral permitted to be sold or repledged, delivered, or otherwise used$1,368.8 $1,451.7 Collateral permitted to be sold or repledged, delivered, or otherwise used$1,542.6 $1,471.3 
Collateral sold, repledged, delivered or otherwise usedCollateral sold, repledged, delivered or otherwise used1,065.9 1,038.9 Collateral sold, repledged, delivered or otherwise used1,183.2 1,111.0 
171158

Note 24 – Litigation
Contingencies
As of June 30, 2021,March 31, 2022, the Firm and its subsidiaries and affiliates are defendants or respondents in numerous legal proceedings, including private, civil litigations, government investigations or regulatory enforcement matters. The litigations range from individual actions involving a single plaintiff to class action lawsuits with potentially millions of class members. Investigations and regulatory enforcement matters 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 $1.5$1.4 billion at June 30, 2021.March 31, 2022. This estimated aggregate range of reasonably possible losses was based upon information available as 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.
Amrapali. India’s Enforcement Directorate (“ED”) is investigating JPMorganJ.P. Morgan India Private Limited in connection with investments made in 2010 and 2012 by 2 offshore funds formerly managed by JPMorgan Chase entities into residential housing projects developed by the Amrapali Group (“Amrapali”). In 2017, numerous creditors filed civil claims against Amrapali, including petitions brought by home buyers relating to delays in delivering or failure to deliver residential units. The home buyers’ petitions have been overseen by the Supreme Court of India since 2017 pursuant to its jurisdiction over public interest litigation.and are ongoing. In August 2021, the ED issued an order fining J.P. Morgan India Private Limited approximately $31.5 million. The Firm is appealing the order and the fine. Relatedly, in July 2019, the Supreme Court of India issued an order making preliminary findings that Amrapali and other parties, including unspecified JPMorgan Chase entities and the offshore funds that had invested in the projects, violated certain currency control and money laundering provisions, and ordering the ED to conduct a further inquiry under India’s Prevention of Money Laundering Act (“PMLA”) and Foreign Exchange Management Act (“FEMA”). ApproximatelyIn May 2020, the ED attached approximately $25 million from JPMorganJ.P. Morgan India Private Limited was attached by the ED in May 2020 in connection with the criminal PMLA investigation. These funds were subsequently disbursed pursuant to an order by the Supreme Court of India for completing outstanding construction of the projects. A separate civil proceeding relating to alleged FEMA violations is ongoing. The Firm is responding to and cooperating with the PMLA investigation.
Federal Republic of Nigeria Litigation. JPMorgan Chase Bank, N.A. operated an escrow and depository account for the Federal Government of Nigeria (“FGN”) and two major international oil companies. The account held approximately $1.1 billion in connection with a dispute among the clients over rights to an oil field. Following the settlement of the dispute, JPMorgan Chase Bank, N.A. paid out the monies in the account in 2011 and 2013 in accordance with directions received from its clients. In November 2017, the Federal Republic of Nigeria (“FRN”) commenced a claim in the English High Court for approximately $875 million in payments made out of the accounts. The FRN, claiming to be the same entity as the FGN, alleges that the payments were instructed as part of a complex fraud not involving JPMorgan Chase Bank, N.A., but that JPMorgan Chase Bank, N.A. was or should have been on notice that the payments may be fraudulent. JPMorgan Chase Bank, N.A. applied for summary judgment and was unsuccessful. The claim is ongoingA trial was held between February and a trial has been scheduled to commence in February 2022.April 2022, and the parties are awaiting the Court's decision.
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. Among those resolutions, in May 2015, the Firm pleaded
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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 term of probation has concluded, with the Firm remaining in good standing throughout the probation period. The Department of Labor granted the Firm a five-year
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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 the Department of Labor to reapply in due course forapprove a further exemption to cover the remainder of the ten-year disqualification period. Aperiod following the antitrust plea. The only remaining FX-related governmental inquiry is a South Africa Competition Commission matter is the remaining FX-related governmental inquiry, andwhich is currently pending before the South Africa Competition Tribunal.
InWith respect to civil litigation matters, in 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 alleged violations of federal antitrust laws based on an alleged conspiracy to manipulate foreign exchange rates and also sought damages on behalf of persons who transacted in FX futures and options on futures. 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 other foreign exchange dealers in November 2018. A number of these actions remain pending. Further, a putative class action has been filed against the Firm and other foreign exchange dealers on behalf of certain consumers who purchased foreign currencies at allegedly inflated rates. Another putative class action was brought against the Firm and other foreign exchange dealers on behalf of purported indirect purchasers of FX instruments. In 2020, the Court approved a settlement by the Firm and 11 other defendants of that class action for a total of $10 million. In addition, some FX-related individual and putative class actions based on similar alleged underlying conduct have been filed outside the U.S., including in the U.K., Israel, the Netherlands, Brazil and Australia. In a putative class action pending before the U.K. Competition Appeal Tribunal, the tribunal has denied a request by the proposed class representatives for class certification on an opt-out basis.
Inquiries Concerning Preservation Requirements. In December 2021 certain of the Firm’s subsidiaries entered into resolutions with the U.S. Securities and Exchange Commission (“SEC”) and the U.S. Commodity Futures Trading Commission (“CFTC”) to resolve their respective civil investigations of compliance with records preservation requirements applicable to broker-dealer firms, swap dealers and futures commission merchants. The SEC and CFTC found that J.P. Morgan Securities LLC did not maintain copies of certain communications required to be maintained under their respective record keeping rules, where such communications were sent or received by employees over electronic messaging channels that had not been approved for employee use by the Firm. The CFTC resolution also included JPMorgan Chase Bank, N.A. and J.P. Morgan Securities plc as swap dealers. The SEC and CFTC also found related supervision failures. Under these resolutions, J.P. Morgan Securities LLC paid a $125 million civil monetary penalty to the SEC, and J.P. Morgan Securities LLC,
JPMorgan Chase Bank, N.A. and J.P. Morgan Securities plc paid a total $75 million civil monetary penalty to the CFTC. The Firm has been respondingcontinues to respond to requests for information and other material from certain of its regulatorsauthorities concerning its compliance with records preservation requirements in connection with business communications sent over electronic messaging channels that have not been approved by the Firm. The Firm is cooperating with these inquiriesinquiries.
In March 2022, a shareholder derivative action was filed in the United States District Court for the Eastern District of New York against the Firm’s Board of Directors asserting breaches of fiduciary duty and is currently engaged in certain resolution discussions. There is no assurance thatviolation of federal securities laws based on the discussions will result in a resolution.Board’s alleged failure to exercise adequate oversight over compliance with records preservation requirements. The complaint seeks damages, restitution, disgorgement and corporate governance reforms.
Interchange Litigation. Groups of merchants and retail associations filed a series of class action complaints alleging that Visa and Mastercard, as well as certain banks, conspired to set the price of credit and debit card interchange fees and enacted related rules in violation of antitrust laws. In 2012, the parties initially settled the cases for a cash payment, a temporary reduction of credit card
interchange, and modifications to certain credit card network rules. In 2017, after the approval of that settlement was reversed on appeal, the case was remanded to the United States District Court for the Eastern District of New York for further proceedings consistent with the appellate decision.
The original class action was divided into 2 separate actions, one seeking primarily monetary relief and the other seeking primarily injunctive relief. In September 2018, the parties to the monetary class action seeking monetary relief finalized an agreement which amends and supersedes the prior settlement agreement. Pursuant to this settlement, the defendants collectively contributed an additional $900 million to the approximately $5.3 billion previously held in escrow from the original settlement. In December 2019, the amended settlement agreement was approved by the District Court. Certain merchants appealed the District Court’s approval order, and those appeals are pending. Based on the percentage of merchants that opted out of the amended class settlement, $700 million has been returned to the defendants from the settlement escrow in accordance with the settlement agreement. The injunctive class action seeking primarily injunctive relief continues separately.separately, and in September 2021, the District Court granted plaintiffs’ motion for class certification in part, and denied the motion in part.
In addition, certain merchants have filed individual actions raising similar allegations against Visa and Mastercard, as well as against the Firm and other banks, and some of those actions remain pending.
LIBOR and Other Benchmark Rate Investigations and Litigation. JPMorgan Chase has responded to inquiries from various governmental agencies and entities around the
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world relating primarily to the British Bankers Association’s ("BBA") London Interbank Offered Rate (“LIBOR”) for various currencies and the European Banking Federation’s Euro Interbank Offered Rate (“EURIBOR”). The Swiss Competition Commission’s investigation relating to EURIBOR, to which the Firm and other banks are subject, continues. In December 2016, the European Commission 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 various individual and putative class actions related to benchmark rates, including U.S. dollar LIBOR. In actions related to U.S. dollar LIBOR during the period that it was administered by the BBA, the Firm has obtained dismissal of certain actions and resolved certain other actions, and others are in various stages of litigation. The United States District Court for the Southern District of New York has granted class certification of antitrust claims related to bonds and interest rate swaps sold directly by the defendants, including the Firm. In aA consolidated putative class action related to the period that U.S. dollar LIBOR was administered by ICE Benchmark Administration the District Court granted the motion by defendants, including the Firm, to dismiss plaintiffs’ complaint, and the plaintiffs have
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appealed.has been dismissed. In addition, in August 2020, a group of individual plaintiffs filed a lawsuit asserting antitrust claims, alleging that the Firm and other defendants were engaged in an unlawful agreement to set U.S. dollar LIBOR and conspired to monopolize the market for LIBOR-based consumer loans and credit cards. Defendants moved to dismiss plaintiffs’ complaint. In November 2020 and MayDecember 2021, plaintiffs filedthe court denied plaintiffs’ motions for a preliminary injunction each seeking to enjoin defendants from setting U.S. dollar LIBOR and to prohibit defendants from enforcing any financial instruments that rely on U.S. dollar LIBOR. The court has scheduled a hearing to address these motions in September 2021. The Firm’s settlements of putative class actions related to Swiss franc LIBOR, the Singapore Interbank Offered Rate and the Singapore Swap Offer Rate, and the Australian Bank Bill Swap Reference Rate remain subject to court approval.
Metals and U.S. Treasuries Investigations and Litigation and Related Inquiries. The Firm previously reported that it and/or certain of its subsidiaries had entered into resolutions with the U.S. Department of Justice (“DOJ”), the U.S. Commodity Futures Trading Commission (“CFTC”) and the U.S. Securities and Exchange Commission (“SEC”), which, collectively, resolved those agencies’ respective investigations relating to historical trading practices by former employees in the precious metals and U.S. treasuries markets and related conduct from 2008 to 2016.
The Firm entered into a Deferred Prosecution Agreement (“DPA”) with the DOJ in which it agreed to the filing of a criminal information charging JPMorgan Chase & Co. with 2 counts of wire fraud and agreed, along with JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC, to certain terms and obligations as set forth therein. Under the terms of the DPA, the criminal information will be dismissed after three years, provided that JPMorgan Chase & Co., JPMorgan
Chase Bank, N.A. and J.P. Morgan Securities LLC fully comply with all of their obligations.
Across the 3 resolutions with the DOJ, CFTC and SEC, JPMorgan Chase & Co., JPMorgan Chase Bank, N.A. and J.P. Morgan Securities LLC agreed to pay a total monetary amount of approximately $920 million. A portion of the total monetary amount includes victim compensation payments.
Several putative class action complaints have been filed in the United States District Court for the Southern District of New York against the Firm and certain 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, and, in February 2019, and the consolidated action is stayed through December 2021. In July 2021, the parties informed the Court that they have entered intopreliminarily approved a settlement to resolveamong the action. In Canada, plaintiffs have moved to commence putative class
action proceedings based on similar alleged underlying conduct for precious metals.parties. In addition, several putative class actions were filed in the United States District Courts for the Northern District of Illinois and Southern District of New York against the Firm, alleging manipulation of U.S. Treasury futures and options, and bringing claims under the Commodity Exchange Act. Some of the complaints also allege unjust enrichment. The actions in the Northern District of Illinois have beenwere transferred to the Southern District of New York. The Court consolidated these putative class actions, and, in October 2020 and plaintiffs filed their consolidated amended complaint in April 2021. In MayDecember 2021, the parties informed the Court that they have entered intopreliminarily approved a settlement among the parties. In Canada, plaintiffs have moved to resolve the action.commence putative class action proceedings based on similar alleged underlying conduct related to precious metals.
In October 2020, 2 putative class action complaints were filed under the Securities Exchange Act of 1934 in the United States District Court for the Eastern District of New York against the Firm and certain individual defendants on behalf of shareholders who acquired shares during the putative class period alleging that certain SEC filings of the Firm were materially false or misleading in that they did not disclose certain information relating to the above-referenced investigations. The Court consolidated these putative class actions in January 2021. Plaintiffs filed their second amended complaint in May 2021, which additionally alleged that certain orders in precious metals futures contracts placed by precious metals futures traders during the putative class period were materially false and misleading. Defendants have moved to dismiss.
Securities Lending Antitrust Litigation. JPMorgan Chase Bank, N.A., J.P. Morgan Securities LLC, J.P. Morgan Prime, Inc., and J.P. Morgan Strategic Securities Lending Corp. are named as defendants in a putative class action filed in the United States District Court for the Southern District of New York. The complaint asserts violations of federal antitrust law and New York State common law in connection with an alleged conspiracy to prevent the emergence of anonymous exchange trading for securities lending transactions. Defendants’ motion to dismiss the complaint was denied.
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Plaintiffs have moved to certify a class in this action, which defendants are opposing.
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 Bank, N.A. 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. In January 2018, the Paris Court of Appeal issued a decision cancelling the mise en examen of JPMorgan Chase Bank, N.A. The Court of Cassation, France’s highest court, ruled in September 2018 that a mise en examen is a
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prerequisite for an ordonnance de renvoi and in January 2020 ordered the annulment of the ordonnance de renvoi referring JPMorgan Chase Bank, N.A. to the French tribunal correctionnel. The Court of Appeal found in January 2021 that it had no power to take further action against JPMorgan Chase Bank, N.A. following the Court of Cassation’s ruling. At the opening of a trial of the managers of Wendel in January 2021, the tribunal correctionnel directed the criminal authorities to clarify whether a further investigation should be opened against JPMorgan Chase, pending which the trial was postponed. In April 2021, the Court of Cassation declined to hear JPMorgan Chase Bank, N.A.’s appeal of the January 2021 decision of the tribunal correctionnel at this stage of the proceedings. JPMorgan Chase Bank, N.A. continues to cooperate in this matter and is engaged with the French criminal authorities.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, upward or downward, as appropriate, based on management’s best judgment after consultation with counsel. The Firm’s legal expense was $185$119 million and $118$28 million for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and $213 million and $315 million for the six months ended June 30, 2021 and 2020.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.
175162

Note 25 – Business segments
The Firm is managed on an LOB basis. There are 4 major reportable business segments - Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking and Asset & Wealth Management. In addition, there is a Corporate segment. The business segments are determined based on the products and services provided, or the type of customer served, and they reflect the manner in which financial information is currently evaluated by the Firm’s Operating Committee. Segment results are presented on a managed basis. Refer to Segment results below, and Note 32 of JPMorgan Chase’s 20202021 Form 10-K for a further discussion of JPMorgan Chase’s business segments.
Segment results
The following table provides a summary of the Firm’s segment results as of or for the three and six months ended June 30,March 31, 2022 and 2021, and 2020, 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. Refer to Note 32 of JPMorgan Chase’s 20202021 Form 10-K for additional information on the Firm’s managed basis.
Capital allocation
The amount of capital assigned to each segment is referred to as equity. Periodically, the assumptions and methodologies used to allocate capital are reassessed and as a result, the capital allocated to the LOBs may change. Refer to Line of business equity on page 9893 of JPMorgan Chase’s 20202021 Form 10-K for additional information on capital allocation.


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 BankingAsset & Wealth Management
20212020202120202021202020212020
As of or for the three months
ended March 31,
(in millions, except ratios)		As of or for the three months
ended March 31,
(in millions, except ratios)		Consumer &
Community Banking		Corporate &
Investment Bank		Commercial BankingAsset & Wealth Management
20222021202220212022202120222021
Noninterest revenueNoninterest revenue$4,726$4,222$9,912$12,304$950$823$3,165$2,575Noninterest revenue$3,902$4,588$9,957$11,088$867$917$3,239$3,146
Net interest incomeNet interest income8,0348,1363,3024,0791,5331,577942855Net interest income8,3277,9293,5723,5171,5311,4761,076931
Total net revenueTotal net revenue12,76012,35813,21416,3832,4832,4004,1073,430Total net revenue12,22912,51713,52914,6052,3982,3934,3154,077
Provision for credit lossesProvision for credit losses(1,868)5,828(79)1,987(377)2,431(10)223Provision for credit losses678(3,602)445(331)157(118)154(121)
Noninterest expenseNoninterest expense7,0626,7676,5236,8129818932,5862,323Noninterest expense7,7207,2027,2987,1041,1299692,8602,574
Income/(loss) before income tax expense/(benefit)Income/(loss) before income tax expense/(benefit)7,566(237)6,7707,5841,879(924)1,531884Income/(loss) before income tax expense/(benefit)3,8318,9175,7867,8321,1121,5421,3011,624
Income tax expense/(benefit)Income tax expense/(benefit)1,932(61)1,7852,133459(243)378223Income tax expense/(benefit)9362,130(b)1,4011,908(b)262361(b)293364(b)
Net income/(loss)Net income/(loss)$5,634$(176)$4,985$5,451$1,420$(681)$1,153$661Net income/(loss)$2,895$6,787(b)$4,385$5,924(b)$850$1,181(b)$1,008$1,260(b)
Average equityAverage equity$50,000$52,000$83,000$80,000$24,000$22,000$14,000$10,500Average equity$50,000$50,000$103,000$83,000$25,000$24,000$17,000$14,000
Total assetsTotal assets494,305498,6581,363,9921,080,189(b)226,022235,034217,284176,782Total assets486,183487,9781,460,4631,355,123235,127223,583233,070213,088
ROEROE44 %(2)%23 %27 %23 %(13)%32 %24 %ROE23 %54 %17 %28 %(b)13 %19 %23 %36 %(b)
Overhead ratioOverhead ratio5555 49 42 40 37 63 68 Overhead ratio6358 54 49 47 40 66 63 
As of or for the three months ended June 30,
(in millions, except ratios)		Corporate
Reconciling Items(a)
Total
202120202021202020212020
As of or for the three months
ended March 31,
(in millions, except ratios)		As of or for the three months
ended March 31,
(in millions, except ratios)		Corporate
Reconciling Items(a)
Total
202220212022202120222021
Noninterest revenueNoninterest revenue$(208)$(67)$(807)$(635)(b)$17,738$19,222(b)Noninterest revenue$(345)$382$(775)$(744)$16,845$19,377
Net interest incomeNet interest income(961)(687)(109)(107)12,74113,853Net interest income(536)(855)(98)(109)13,87212,889
Total net revenueTotal net revenue(1,169)(754)(916)(742)30,47933,075Total net revenue(881)(473)(873)(853)30,71732,266
Provision for credit lossesProvision for credit losses49400(2,285)10,473Provision for credit losses2916——1,463(4,156)
Noninterest expenseNoninterest expense5151470017,66716,942Noninterest expense184876——19,19118,725
Income/(loss) before income tax expense/(benefit)Income/(loss) before income tax expense/(benefit)(1,733)(905)(916)(742)15,0975,660Income/(loss) before income tax expense/(benefit)(1,094)(1,365)(873)(853)10,06317,697
Income tax expense/(benefit)Income tax expense/(benefit)(489)(337)(916)(742)(b)3,149973(b)Income tax expense/(benefit)(238)(513)(b)(873)(853)1,7813,397
Net income/(loss)Net income/(loss)$(1,244)$(568)$0$0$11,948$4,687Net income/(loss)$(856)$(852)(b)$—$—$8,282$14,300
Average equityAverage equity$79,849$69,908$0$0$250,849$234,408Average equity$57,506$74,542$—$—$252,506$245,542
Total assetsTotal assets1,382,6531,221,980NANA3,684,2563,212,643(b)Total assets1,539,8441,409,564NANA3,954,6873,689,336
ROEROENMNMNMNM18 %7 %ROENMNMNMNM13 %23 %
Overhead ratioOverhead ratioNMNMNMNM58 51 (b)Overhead ratioNMNMNMNM62 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.
(b)In the first quarter of 2022, the Firm changed its methodology for allocating income taxes to the LOBs, with no impact to Firmwide net income. Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
176

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 BankingAsset & Wealth Management
20212020202120202021202020212020
Noninterest revenue$9,314$8,319$21,000$19,200$1,867$1,431$6,311$5,104
Net interest income15,96317,3266,8197,1863,0093,1341,8731,715
Total net revenue25,27725,64527,81926,3864,8764,5658,1846,819
Provision for credit losses(5,470)11,600(410)3,388(495)3,441(131)317
Noninterest expense14,26414,03613,62712,7671,9501,8795,1604,758
Income/(loss) before income tax expense/(benefit)16,483914,60210,2313,421(755)3,1551,744
Income tax expense/(benefit)4,121(12)3,8772,795833(213)758414
Net income/(loss)$12,362$21$10,725$7,436$2,588$(542)$2,397$1,330
Average equity$50,000$52,000$83,000$80,000$24,000$22,000$14,000$10,500
Total assets494,305498,6581,363,9921,080,189(b)226,022235,034217,284176,782
ROE49 %(1)%25 %18 %21 %(6)%34 %25 %
Overhead ratio56 55 49 48 40 41 63 70 
As of or for the six months ended June 30,
(in millions, except ratios)		Corporate
Reconciling Items(a)
Total
202120202021202020212020
Noninterest revenue$174$264$(1,551)$(1,249)(b)$37,115$33,069(b)
Net interest income(1,816)(852)(218)(217)25,63028,292
Total net revenue(1,642)(588)(1,769)(1,466)62,74561,361
Provision for credit losses651200(6,441)18,758
Noninterest expense1,3912930036,39233,733
Income/(loss) before income tax expense/(benefit)(3,098)(893)(1,769)(1,466)32,7948,870
Income tax expense/(benefit)(1,274)(200)(1,769)(1,466)(b)6,5461,318(b)
Net income/(loss)$(1,824)$(693)$0$0$26,248$7,552
Average equity$77,209$69,969$0$0$248,209$234,469
Total assets1,382,6531,221,980NANA3,684,2563,212,643(b)
ROENMNMNMNM21 %6 %
Overhead ratioNMNMNMNM58 55 (b)
(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.
(b) Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
177163

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Report of Independent Registered Public Accounting Firm


To the Board of Directors and Shareholders 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, 2021,March 31, 2022, and the related consolidated statements of income, comprehensive income and changes in stockholders’ equity for the three-month and six-month periods ended June 30,March 31, 2022 and March 31, 2021 and 2020 and the
consolidated statements of cash flows for the six-month
three-month periods ended June 30,March 31, 2022 and 2021, and 2020, 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, 2020,2021, 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 23, 2021,22, 2022, which included a paragraph describing a change in the manner of accounting for credit losses on certain financial instruments in the 2020, financial statements, 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, 2020,2021, 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.

jpm-20220331_g5.jpg

August 2, 2021May 3, 2022






















PricewaterhouseCoopers LLP, 300 Madison Avenue, New York, NY 10017
178164

JPMorgan Chase & Co.
Consolidated average balance sheets, interest and rates (unaudited)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)(Taxable-equivalent interest and rates; in millions, except rates)(Taxable-equivalent interest and rates; in millions, except rates)
Three months ended June 30, 2021Three months ended June 30, 2020Three months ended March 31, 2022Three months ended March 31, 2021
Average
balance
Interest(g)
Rate
(annualized)		Average
balance
Interest(g)
Rate
(annualized)		Average
balance
Interest(f)
Rate
(annualized)		Average
balance
Interest(f)
Rate
(annualized)
AssetsAssetsAssets
Deposits with banksDeposits with banks$721,214 $103 0.06 %$477,895 $70 0.06 %Deposits with banks$742,311 $238 0.13 %$631,606 $65 0.04 %
Federal funds sold and securities purchased under resale agreementsFederal funds sold and securities purchased under resale agreements255,831 175 0.27 244,306 601 0.99 Federal funds sold and securities purchased under resale agreements294,951 397 0.55 289,763 233 0.33 
Securities borrowedSecurities borrowed190,785 (90)(0.19)(h)141,328 (175)

(0.50)(h)Securities borrowed218,030 (87)(0.16)(g)175,019 (77)

(0.18)(g)
Trading assets – debt instrumentsTrading assets – debt instruments277,024 1,719 2.49 345,073 2,074 2.42 Trading assets – debt instruments272,116 1,775 2.65 322,648 1,790 2.25 
Taxable securitiesTaxable securities553,603 1,577 1.14 466,324 2,154 1.86 Taxable securities642,633 1,979 1.25 550,579 1,605 1.18 
Nontaxable securities(a)
Nontaxable securities(a)
31,481 339 4.32 33,930 373 4.42 
Nontaxable securities(a)
28,532 307 4.36 31,881 348 4.43 
Total investment securitiesTotal investment securities585,084 1,916 1.31 (i)500,254 2,527 2.03 (i)Total investment securities671,165 2,286 1.38 (h)582,460 1,953 1.36 (h)
LoansLoans1,024,633 10,177 3.98 1,029,513 10,922 4.27 Loans1,068,637 10,661 4.05 1,013,524 10,217 4.09 
All other interest-earning assets(b)
All other interest-earning assets(b)
122,624 203 0.66 81,320 200 0.99 
All other interest-earning assets(b)
134,741 324 0.97 111,549 199 0.72 
Total interest-earning assetsTotal interest-earning assets3,177,195 14,203 1.79 2,819,689 16,219 2.31 Total interest-earning assets3,401,951 15,594 1.86 3,126,569 14,380 1.87 
Allowance for loan lossesAllowance for loan losses(22,965)(23,287)Allowance for loan losses(16,415)(28,268)
Cash and due from banksCash and due from banks26,758 22,169 Cash and due from banks27,964 25,168 
Trading assets – equity and other instrumentsTrading assets – equity and other instruments195,038 99,115 Trading assets – equity and other instruments156,908 164,010 
Trading assets – derivative receivablesTrading assets – derivative receivables74,462 79,298 Trading assets – derivative receivables67,334 74,730 
Goodwill, MSRs and other intangible AssetsGoodwill, MSRs and other intangible Assets54,512 51,785 Goodwill, MSRs and other intangible Assets57,546 53,932 
All other noninterest-earning assets(c)
All other noninterest-earning assets(c)
223,687 179,560 
All other noninterest-earning assets(c)
211,500 196,700 
Total assetsTotal assets$3,728,687 $3,228,329 Total assets$3,906,788 $3,612,841 
LiabilitiesLiabilitiesLiabilities
Interest-bearing depositsInterest-bearing deposits$1,669,376 $132 0.03 %$1,375,213 $349 0.10 %Interest-bearing deposits$1,781,320 $182 0.04 %$1,610,467 $146 0.04 %
Federal funds purchased and securities loaned or sold under repurchase agreementsFederal funds purchased and securities loaned or sold under repurchase agreements261,343 60 0.09 276,815 131 0.19 Federal funds purchased and securities loaned or sold under repurchase agreements250,215 117 0.19 301,386 15 0.02 
Short-term borrowings(d)(c)
Short-term borrowings(d)(c)
46,185 33 0.30 45,297 124 1.11 
Short-term borrowings(d)(c)
47,871 40 0.32 42,031 33 0.31 
Trading liabilities – debt and all other interest-bearing
liabilities(f)(e)
Trading liabilities – debt and all other interest-bearing
liabilities(f)(e)
246,666 51 0.08 (h)207,322 (43)(0.08)(h)
Trading liabilities – debt and all other interest-bearing
liabilities(f)(e)
263,025 191 0.30 (g)230,922 27 0.05 (g)
Beneficial interests issued by consolidated VIEsBeneficial interests issued by consolidated VIEs15,117 21 0.55 20,331 59 1.15 Beneficial interests issued by consolidated VIEs10,891 18 0.69 17,185 27 0.64 
Long-term debtLong-term debt248,552 1,056 1.70 269,336 1,639 2.45 Long-term debt254,180 1,076 1.72 239,398 1,134 1.92 
Total interest-bearing liabilitiesTotal interest-bearing liabilities2,487,239 1,353 0.22 2,194,314 2,259 0.41 Total interest-bearing liabilities2,607,502 1,624 0.25 2,441,389 1,382 0.23 
Noninterest-bearing depositsNoninterest-bearing deposits654,419 515,304 Noninterest-bearing deposits734,233 614,165 
Trading liabilities – equity and other instruments(f)(e)
Trading liabilities – equity and other instruments(f)(e)
35,397 33,797 
Trading liabilities – equity and other instruments(f)(e)
43,394 35,029 
Trading liabilities – derivative payablesTrading liabilities – derivative payables62,533 63,178 Trading liabilities – derivative payables54,522 67,960 
All other liabilities, including the allowance for lending-related commitments(c)
All other liabilities, including the allowance for lending-related commitments(c)
205,584 157,265 
All other liabilities, including the allowance for lending-related commitments(c)
181,105 178,444 
Total liabilitiesTotal liabilities3,445,172 2,963,858 Total liabilities3,620,756 3,336,987 
Stockholders’ equityStockholders’ equityStockholders’ equity
Preferred stockPreferred stock32,666 30,063 Preferred stock33,526 30,312 
Common stockholders’ equityCommon stockholders’ equity250,849 234,408 Common stockholders’ equity252,506 245,542 
Total stockholders’ equityTotal stockholders’ equity283,515 264,471 Total stockholders’ equity286,032 275,854 
Total liabilities and stockholders’ equityTotal liabilities and stockholders’ equity$3,728,687 $3,228,329 Total liabilities and stockholders’ equity$3,906,788 $3,612,841 
Interest rate spreadInterest rate spread1.57 %1.90 %Interest rate spread1.61 %1.64 %
Net interest income and net yield on interest-earning assetsNet interest income and net yield on interest-earning assets$12,850 1.62 $13,960 1.99 Net interest income and net yield on interest-earning assets$13,970 1.67 $12,998 1.69 
(a)Represents securities which are tax-exempt for U.S. federal income tax purposes.
(b)Includes 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.
(c)Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
(d)Includes commercial paper.
(e)(d)All other interest-bearing liabilities include brokerage-related customer payables.
(f)(e)The combined balance of trading liabilities – debt and equity instruments was $135.6$140.1 billion and $108.9$126.3 billion for the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively.
(g)(f)Interest includes the effect of certain related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(h)(g)Negative interest income and yield are related to the impact of current interest rates combined with the fees paid on client-driven securities borrowed balances. The negative interest expense related to prime brokerage customer payables is recognized in interest expense and reported within trading liabilities - debt and all other interest-bearing liabilities.
(i)(h)The annualized rate for securities based on amortized cost was 1.33% and 2.07%1.38% for each of the three months ended June 30,March 31, 2022 and 2021, and 2020, respectively, and does not give effect to changes in fair value that are reflected in AOCI.
179

JPMorgan Chase & Co.
Consolidated average balance sheets, interest and rates (unaudited)
(Taxable-equivalent interest and rates; in millions, except rates)
 Six months ended June 30, 2021Six months ended June 30, 2020
Average
balance
Interest(g)
Rate
(annualized)		Average
balance
Interest(g)
Rate
(annualized)
Assets
Deposits with banks$676,658 $168 0.05 %$378,821 $639 0.34 %
Federal funds sold and securities purchased under resale agreements272,704 408 0.30 248,855 1,696 1.37 
Securities borrowed182,945 (167)(0.18)(h)138,728 (23)(0.03)(h)
Trading assets – debt instruments299,710 3,509 2.36 324,940 4,149 2.57 
Taxable securities552,097 3,182 1.16 427,270 4,387 2.06 
Nontaxable securities(a)
31,682 687 4.37 33,621 738 4.41 
Total investment securities583,779 3,869 1.34 (i)460,891 5,125 2.24 (i)
Loans1,019,109 20,394 4.04 1,015,509 23,261 4.61 
All other interest-earning assets(b)
117,117 402 0.69 74,875 643 1.73 
Total interest-earning assets3,152,022 28,583 1.83 2,642,619 35,490 2.70 
Allowance for loan losses(25,602)(20,322)
Cash and due from banks25,968 21,918 
Trading assets – equity and other instruments177,480 106,797 
Trading assets – derivative receivables76,725 72,803 
Goodwill, MSRs and other intangible Assets54,223 52,238 
All other noninterest-earning assets(c)
210,268 182,773 
Total assets$3,671,084 $3,058,826 
Liabilities
Interest-bearing deposits$1,640,085 $278 0.03 %$1,295,884 $1,924 0.30 %
Federal funds purchased and securities loaned or sold under repurchase agreements281,254 75 0.05 260,368 918 0.71 
Short-term borrowings(d)
44,120 66 0.31 41,292 275 1.34 
Trading liabilities – debt and all other interest-bearing
liabilities(e)(f)
238,836 78 0.07 (h)200,138 329 0.33 (h)
Beneficial interests issued by consolidated VIEs16,145 48 0.60 19,189 149 1.56 
Long-term debt244,000 2,190 1.81 256,666 3,386 2.65 
Total interest-bearing liabilities2,464,440 2,735 0.22 2,073,537 6,981 0.68 
Noninterest-bearing deposits634,403 467,467 
Trading liabilities – equity and other instruments(f)
35,214 32,259 
Trading liabilities – derivative payables65,231 59,084 
All other liabilities, including the allowance for lending-related commitments(c)
192,091 162,276 
Total liabilities3,391,379 2,794,623 
Stockholders’ equity
Preferred stock31,496 29,734 
Common stockholders’ equity248,209 234,469 
Total stockholders’ equity279,705 264,203 
Total liabilities and stockholders’ equity$3,671,084 $3,058,826 
Interest rate spread1.61 %2.02 %
Net interest income and net yield on interest-earning assets$25,848 1.65 $28,509 2.17 
(a)Represents securities which are tax-exempt for U.S. federal income tax purposes.
(b)Includes 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.
(c)Prior-period amounts have been revised to conform with the current presentation. Refer to Note 1 for further information.
(d)Includes commercial paper.
(e)All other interest-bearing liabilities include brokerage-related customer payables.
(f)The combined balance of trading liabilities – debt and equity instruments was $131.0 billion and $105.0 billion for the six months ended June 30, 2021 and 2020, respectively.
(g)Interest includes the effect of certain related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(h)Negative interest income and yield are related to the impact of current interest rates combined with the fees paid on client-driven securities borrowed balances. The negative interest expense related to prime brokerage customer payables is recognized in interest expense and reported within trading liabilities - debt and all other interest-bearing liabilities.
(i)The annualized rate for securities based on amortized cost was 1.35% and 2.27% for the six months ended June 30, 2021 and 2020, respectively, and does not give effect to changes in fair value that are reflected in AOCI.
180165

GLOSSARY OF TERMS AND ACRONYMS
20202021 Form 10-K: Annual report on Form 10-K for year ended December 31, 2020,2021, filed with the U.S. Securities and Exchange Commission.
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.
Amortized cost: Amount at which a financing receivable or investment is originated or acquired, adjusted for accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, charge-offs, foreign exchange, and fair value hedge accounting adjustments. For AFS securities, amortized cost is also reduced by any impairment losses recognized in earnings. Amortized cost is not reduced by the allowance for credit losses, except where explicitly presented net.
AOCI: Accumulated other comprehensive income/(loss)
ARM(s): Adjustable rate mortgage(s)
AUC: “Assets under custody”: Represents assets held directly or indirectly on behalf of clients under safekeeping, custody and servicing arrangements.
Auto loan and lease origination volume: Dollar amount of auto loans and leases originated.
AWM: Asset & Wealth Management
Beneficial interests issued by consolidated VIEs: represents the interest of third-party holders of debt, equity securities, or other obligations, issued by VIEs that JPMorgan Chase consolidates.
Benefit obligation: refers to the projected benefit obligation for pension plans and the accumulated postretirement benefit obligation for OPEB plans.
BHC: Bank holding company
Bridge Financing Portfolio: A portfolio of held-for-sale unfunded loan commitments and funded loans. The unfunded commitments include both short-term bridge loan commitments that will ultimately be replaced by longer term financing as well as term loan commitments. The funded loans include term loans and funded revolver facilities.
CB: Commercial Banking
CBB: Consumer & Business Banking
CCAR: Comprehensive Capital Analysis and Review
CCB: Consumer & Community Banking
CDS: Credit default swaps
CECL: Current Expected Credit Losses
CEO: Chief Executive Officer
CET1 capital: Common equity Tier 1 capital
CFO: Chief Financial Officer
CFTC: Commodity Futures Trading Commission
CFO: Chief Financial Officer
CIB: Corporate & Investment Bank
CIO: Chief Investment Office
Client assets: Represent assets under management as well as custody, brokerage, administration and deposit accounts.
Client deposits and other third-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.
CLTV: Combined loan-to-value
CMT: Constant Maturity Treasury
Collateral-dependent: A loan is considered to be collateral-dependent when repayment of the loan is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty, including when foreclosure is deemed probable based on borrower delinquency.
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.
Credit derivatives: Financial instruments whose value is derived from the credit risk associated with the debt of a third-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 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: CRR:Chief Risk Officer Capital Requirements Regulation
CVA: Credit valuation adjustment
DVA: Debit valuation adjustment
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EC: European Commission
Eligible HQLA: Eligible high-quality liquid assets, for purposes of calculating the LCR, is the amount of
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unencumbered HQLA that satisfy certain operational considerations as defined in the LCR rule.
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.
EPS: Earnings per share
ERISA: Employee Retirement Income Security Act of 1974
EPS: Earnings per share
ESG: Environmental, Social and Governance
ETD: “Exchange-traded derivatives”: Derivative contracts that are executed on an exchange and settled via a central clearing house.
EU: European Union
Exchange-traded derivatives: Derivative contracts that are executed on an exchange and settled via a central clearing house.
Expense categories:
•Volume- and/or revenue-related expenses generally correlate with changes in the related business/transaction volume or revenue. Examples of volume- and revenue-related expenses include commissions and incentive compensation, depreciation expense related to operating lease assets, and brokerage expense related to equities trading transaction volume.
•Investments include expenses associated with supporting medium- to longer-term strategic plans of the Firm. Examples of investments include initiatives in technology (including related compensation), marketing, and compensation for new bankers and client advisors.
•Structural expenses are those associated with the day-to-day cost of running the bank and are expenses not covered by the above two categories. Examples of structural expenses include employee salaries and benefits, as well as noncompensation costs such as real estate and all other expenses.
EU: European Union
Fannie Mae: Federal National Mortgage Association
FASB: Financial Accounting Standards Board
FCA: Financial Conduct Authority
FDIC: Federal Deposit Insurance Corporation
Federal Reserve: The Board of the Governors of the Federal Reserve System
FFIEC: Federal Financial Institutions Examination Council
FHA: Federal Housing Administration
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.
FICC: Fixed Income Clearing Corporation
FINRA: Financial Industry Regulatory Authority
Firm: JPMorgan Chase & Co.
Follow-on offering: An issuance of shares following a company's IPO.
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.
FRBB: Federal Reserve Bank of Boston
FRBNY: Federal Reserve Bank of New York
Freddie Mac: Federal Home Loan Mortgage Corporation
Free-standing 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.
FTE: Fully taxable-equivalent
FVA: Funding valuation adjustment
FX: Foreign exchange
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 issued by the government of one of the G7 nations.
Ginnie Mae: Government National Mortgage Association
GSIB: Global systemically important banks
HELOC: Home equity line of credit
Home equity – senior lien: represents loans and commitments where JPMorgan Chase holds the first security interest on the property.
Home equity – junior lien: represents loans and commitments where JPMorgan Chase holds a security interest that is subordinate in rank to other liens.
HQLA: High-quality liquid assets
HTM: Held-to-maturity
IBOR: Interbank Offered Rate
IDI: Insured depository institutions
IHC: JPMorgan Chase Holdings LLC, an intermediate holding company
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
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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
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JPMorgan Chase: JPMorgan Chase & Co.
JPMorgan Chase Bank, N.A.: JPMorgan Chase Bank, National Association
JPMorgan Chase Foundation or Foundation: a not-for-profit organization that makes contributions for charitable and educational purposes.
J.P. Morgan Securities: J.P. Morgan Securities LLC
JPMSE: J.P. Morgan SE
LCR: Liquidity coverage ratio
LGD: Loss given default
LIBOR: London Interbank Offered Rate
LLC: Limited Liability Company
LOB: Line of business
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.

Markets: consists of CIB's Fixed Income Markets and Equity Markets businesses.
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).
MBS: Mortgage-backed securities
MD&A: Management’s discussion and analysis
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.
Merchant Services: offers merchants payment processing capabilities, fraud and risk management, data and analytics, and other payments services. Through Merchant Services, merchants of all sizes can accept payments via credit and debit cards and payments in multiple currencies.
MEV: Macroeconomic variable
MBS: Mortgage-backed securities
MD&A: Management’s discussion and analysis
MMLF: Money Market Mutual Fund Liquidity Facility
MMMF: Money market mutual funds
Moody’s: Moody’s Investor Services
Mortgage product 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.

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Prime
Prime 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.

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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: Mortgage servicing rights
NA: Data is not applicable or available for the period presented.
NAV: Net Asset Value
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 generally tied to sales transactions.
•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.
NFA: National Futures Association
NM: Not meaningful
Nonaccrual 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.
NSFR: Net Stable Funding Ratio
OCC: Office of the Comptroller of the Currency
OCI: Other comprehensive income/(loss)
OPEB: Other postretirement employee benefit
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: “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.
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.
PCD: “Purchased credit deteriorated” assets represent acquired financial assets that as of the date of acquisition have experienced a more-than-insignificant deterioration in credit quality since origination, as determined by the Firm.
PD:Pillar 1: ProbabilityThe Basel framework consists of defaulta three “Pillar” approach. Pillar 1 establishes minimum capital requirements, defines eligible capital instruments, and prescribes rules for calculating RWA.
PhishingPillar 3:: The Basel framework consists of a typethree “Pillar” approach. Pillar 3 encourages market discipline through disclosure requirements which allow market participants to assess the risk and capital profiles of social engineering cyberattack received through email or online messages.banks.
PPP: Paycheck Protection Program under the Small Business Association ("SBA")
PRA: Prudential Regulation 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.

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Principal transactions 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
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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
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 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: 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: “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: Standard and Poors
SA-CCR: Standardized Approach for Counterparty Credit Risk
SAR as it pertains to Hong Kong: Special Administrative Region
SAR(s) as it pertains to employee stock awards: Stock appreciation rights
SCB:Stress capital buffer
Scored portfolios: Consumer loan portfolios that predominantly include residential real estate loans, credit card loans, auto loans to individuals and certain small business loans.
S&P: Standard and Poors
SAR(s): Stock appreciation rights
SCB:Stress capital buffer
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.
Shelf securities: Securities registered with the SEC under a
shelf registration statement that have not been issued,
offered or sold. These securities are not included in league
tables until they have actually been issued.
Single-name: Single reference-entities
SLR: Supplementary leverage ratio
SMBS: Stripped mortgage-backed securities
SOFR: Secured Overnight Financing Rate
SPEs: Special purpose entities
SPV: Special purpose vehicle
Structural interest rate risk: represents interest rate risk of the non-trading assets and liabilities of the Firm.
Structured notes: Structured notes are financial instruments whose cash flows are linked to the movement in one or more indexes, interest rates, foreign exchange rates, commodities prices, prepayment rates, underlying reference pool of loans or other market variables. The notes typically contain embedded (but not separable or detachable) derivatives. Contractual cash flows for principal, interest, or both can vary in amount and timing throughout the life of the note based on non-traditional indexes or non-traditional uses of 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
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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
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TDR: “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. Loans with short-term and other insignificant modifications that are not considered concessions are not TDRs.
TLAC: Total Loss Absorbing Capacity
U.K.: United Kingdom
Unaudited:Financial statements andand/or information that have not been subjectedsubject to auditing procedures sufficient to permitby an independent certifiedregistered public accountant to express an opinion.accounting firm.
U.S.: United States of America
U.S. GAAP:Accounting principles generally accepted in the United States of America.
U.S. government agencies: U.S. government agencies include, but are not limited to, agencies such as Ginnie Mae and FHA, and do not include Fannie Mae and Freddie Mac which are U.S. government-sponsored enterprises (“U.S. GSEs”). In general, obligations of U.S. government agencies are fully and explicitly guaranteed as to the timely payment of principal and interest by the full faith and credit of the U.S. government in the event of a default.
U.S. GAAP:Accounting principles generally accepted in the United States of America.
U.S. GSE(s): “U.S. government-sponsored enterprises” are quasi-governmental, privately-held entities established or chartered by the U.S. government to serve public purposes as specified by the U.S. 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 or FHA. 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: U.S. Department of the Treasury
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: Variable interest entities
Warehouse loans: consist of prime mortgages originated with the intent to sell that are accounted for at fair value and classified as loans.
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LINE OF BUSINESS METRICS
CONSUMER & COMMUNITY BANKING (“CCB”)
Debit and credit card sales volume: Dollar amount of card member 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 mortgage servicing revenue: Includes operating revenue earned from servicing third-party mortgage loans, which is recognized over the period in which the service is provided; changes in the fair value of MSRs; the impact of risk management activities associated with MSRs; and gains and losses on securitization of excess mortgage servicing. Net mortgage servicing revenue also includes gains and losses on sales and lower of cost or fair value adjustments of certain repurchased loans insured by U.S. government agencies.
Production revenue: Includes fees and income recognized as earned on mortgage loans originated with the intent to sell, and the impact of risk management activities associated with the mortgage pipeline and warehouse loans. Production revenue also includes gains and losses on sales and lower of cost or fair value adjustments on mortgage loans held-for-sale (excluding certain repurchased loans insured by U.S. government agencies), and changes in the fair value of financial instruments measured under the fair value option.
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.
Credit Card: is a business that primarily issues credit cards to consumers and small businesses.
Net revenue rate: represents Credit Card 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 LOBs.
Wholesale Payments is a full service provider of cash management solutions, which primarily includes the following:
•Treasury Services: offers a broad range of productsmerchant acquiring, cross border and domestic payments, liquidity and account services, that enable clients to manage payments and receipts, as well as investglobal trade for multinational corporations, e-commerce and manage funds. Products include U.S. dollarmarketplace operators, and multi-currency clearing, automated clearing house, lockbox, disbursement and reconciliation services, check deposits, and currency-related services;
•Merchant Services: primarily processes transactions for merchants; and
•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.financial institutions.
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.
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: primarily includes custody, fund accounting and administration, and securities lending products sold principally to asset managers, insurance companies and public and private investment funds. Also includes collateral management and depositary receipts businesses which 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.
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COMMERCIAL BANKING (“CB”)
Commercial Banking provides comprehensive financial solutions, including lending, wholesale payments, investment banking and asset management products across three primary client segments: Middle Market Banking, Corporate Client Banking and Commercial Real Estate Banking. Other includes amounts not aligned with a primary client segment.
Middle Market Banking: covers small and midsized companies, local governments and nonprofit clients.
Corporate Client Banking: covers large corporations.
Commercial Real Estate Banking: covers investors, developers, and owners of multifamily, office, retail, industrial and affordable housing properties.
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.
Wholesale payments:Payments: 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 incomeactivity derived from principal transactions.
ASSET & WEALTH MANAGEMENT (“AWM”)
Assets under management (“AUM”): represent assets managed by AWM on behalf of its Private Banking, Global Institutional and Global Funds clients. Includes "Committed capital not Called."
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: offers multi-asset investment management solutions across equities, fixed income, alternatives and money market funds to institutional and retail investors providing for a broad range of clients’ investment needs.
Global Private Bank: provides retirement products and services, brokerage, custody, trusts and estates, loans, mortgages, deposits and investment management to high net worth clients.
AWM’s client segments consist of the following:
Private Banking: clients include high- and ultra-high-net-worth individuals, families, money managers and business owners.
Global Institutional: clients include both corporate and public institutions, endowments, foundations, nonprofit organizations and governments worldwide.
Global Funds: 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 “overallAn overall Morningstar rating”rating is derived from a weighted average of the performance associated with a fund’s three-, five- and ten-yearten- year (if applicable) Morningstar Rating metrics. For U.S. domiciledU.S.-domiciled funds, separate star ratings are givenprovided 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 these rankings. All ratings, the assigned peer
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hence excluded from this analysis. All ratings, the assigned peer categories and the asset values used to derive this analysisthese rankings are sourced from thesethe applicable fund rating providers. The dataprovider. Where applicable, the fund rating providers re-denominate theredenominate asset values into U.S. dollars. This %The percentage of AUM is based on star ratings at the share class level for U.S. domiciledU.S.-domiciled funds, and at a “primary share class” level to represent the star rating of all other funds, except for Japan, wherefor which 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 couldmay have been different if all funds/accounts would haveshare classes had 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 analysisthese rankings are sourced from the fund rankingrating providers. Quartile rankings are donebased on the net-of-fee absolute return of each fund. The dataWhere applicable, the fund rating providers re-denominate theredenominate asset values into U.S. dollars. This %The percentage of AUM is based on fund performance and associated peer rankings at the share class level for U.S. domiciledU.S.-domiciled funds, at a “primary share class” level to represent the quartile ranking of thefor 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 couldmay have been different if all funds/accounts would haveshare classes had been included. Past performance is not indicative of future results.

“Primary share class” means the C share class for European funds and Acc share class for Hong Kong and Taiwan funds. If these share classes are not available, the oldest share class is used as the primary share class.
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Item 3.    Quantitative and Qualitative Disclosures About Market Risk.
Refer to the Market Risk Management section of Management’s discussion and analysis and pages 135–142133-140 of JPMorgan Chase’s 20202021 Form 10-K for a discussion of the quantitative and qualitative disclosures about market risk.
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 Certifications furnished by the Chairman and Chief Executive Officer and Chief Financial Officer, respectively.
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 all misstatements. Deficiencies or lapses in internal controls may 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 control in the future and collateral consequences therefrom. Refer to “Management’s report on internal control over financial reporting” on page 158156 of JPMorgan Chase’s 20202021 Form 10-K for further information. 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, 2021,March 31, 2022, 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.
Refer to the discussion of the Firm’s material legal proceedings in Note 24 of this Form 10-Q for information that updates the disclosures set forth under Part I, Item 3: Legal Proceedings, in JPMorgan Chase’s 20202021 Form 10-K.
Item 1A. Risk Factors.
The following discussion supplements the discussion of risk
factors affecting the Firm as set forth inRefer to Part I, Item 1A:
Risk Factors on pages 8-329-33 of JPMorgan Chase’s 20202021 Form 10-K. The10-K and Forward-Looking Statements on page 79 of this Form 10-Q for a discussion of certain risk factors as so supplemented, sets forthaffecting the material risk factors that could affect JPMorgan Chase’s financial condition and operations. Readers should not consider any descriptions of such factors to be a complete set of all potential risks that could affect the Firm.
The COVID-19 pandemic has caused and is causing significant harm to the global economy and could further negatively affect certain of JPMorgan Chase’s businesses.
On March 11, 2020, the World Health Organization declared the outbreak of a strain of novel coronavirus disease, COVID-19, to be a global pandemic. The COVID-19 pandemic and governmental responses to the pandemic led to the institution of social distancing and shelter-in-place requirements in certain areas of the U.S. and other countries resulting in ongoing severe impacts on global economic conditions, including:
•significant disruption and volatility in the financial markets
•significant disruption of global supply chains, and
•closures of many businesses, leading to loss of revenues and increased unemployment.
A prolongation or worsening of the pandemic, or the emergence of other diseases that give rise to similar effects, could deepen the adverse impact on the global economy.
The adverse economic conditions caused by the pandemic have had a negative impact on certain of JPMorgan Chase’s businesses and results of operations, including:
•reduction in demand for certain products and services from JPMorgan Chase’s clients and customers, resulting in lower revenue, and
•increases in the allowance for credit losses.
Certain models used by JPMorgan Chase in connection with the determination of the allowance for credit losses have heightened performance risk in the economic environment precipitated by the effects of the COVID-19 pandemic and government stimulus. There can be no assurance that, even after adjustments have been made to model outputs, JPMorgan Chase will not recognize unexpected losses arising from the model uncertainty that has resulted from these developments.
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A prolongation or worsening of the COVID-19 pandemic and the negative economic impacts of the pandemic could have other significant adverse effects on JPMorgan Chase’s businesses, results of operations and financial condition, including:
•recognition of credit losses and further increases in the allowance for credit losses, especially to the extent that businesses remain closed, unemployment continues at elevated levels, clients and customers draw on their lines of credit or significant numbers of people relocate from metropolitan areas
•material impacts on the value of securities, derivatives and other financial instruments which JPMorgan Chase owns or in which it makes markets
•downgrades in JPMorgan Chase’s credit ratings
•constraints on liquidity or capital due to elevated levels of deposits, increases in risk-weighted assets (“RWA”) related to supporting client activities, downgrades in client credit ratings, regulatory actions or other factors, any or all of which could require JPMorgan Chase to take or refrain from taking actions that it otherwise would under its liquidity and capital management strategies, and
•the possibility that significant portions of JPMorgan Chase’s workforce are unable to work effectively, including because of illness, quarantines, shelter-in-place arrangements, government actions or other restrictions in connection with the pandemic.
The extent to which the COVID-19 pandemic negatively affects JPMorgan Chase’s businesses, results of operations and financial condition, as well as its regulatory capital and liquidity ratios, will depend on future developments that are highly uncertain and cannot be predicted, including the ultimate scope and duration of the pandemic, the effectiveness of vaccination programs and actions taken by governmental authorities and other third parties in response to the pandemic. Those negative effects, including the possible recognition of charge-offs, may be delayed
because of the impact of prior and potential future government stimulus actions or payment assistance provided to clients and customers.
In addition, JPMorgan Chase’s participation directly or indirectly, including on behalf of customers and clients or by affiliated entities, in U.S. government programs designed to support individuals, households and businesses impacted by the economic disruptions caused by the COVID-19 pandemic could be criticized and subject JPMorgan Chase to:
•increased governmental and regulatory scrutiny
•negative publicity, and
•increased exposure to litigation,
any or all of which could increase JPMorgan Chase’s operational, legal and compliance costs and damage its reputation. To the extent that the COVID-19 pandemic adversely affects JPMorgan Chase’s business, results of operations and financial condition, it may also have the effect of heightening many of the other risks described in Risk Factors in the 2020 Form 10-K.
Supervision and regulation
Refer to the Supervision and regulation section on pages 3–74–8 of JPMorgan Chase’s 20202021 Form 10-K for information on Supervision and Regulation.
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, 2021.March 31, 2022.
Repurchases under the common share repurchase program
Refer to Capital Risk Management on pages 45-5035-40 of this Form 10-Q and pages 91-10186-96 of JPMorgan Chase’s 20202021 Form 10-K for information regarding repurchases under the Firm’s common share repurchase program.
On December 18, 2020, the Federal Reserve announced that all large banks, including the Firm, could resume share repurchases commencing in the first quarter of 2021. Subsequently,April 13, 2022, the Firm announced that its Board of Directors had authorized a new $30 billion common share repurchase program, foreffective May 1, 2022.
Through April 30, 2022, the Firm was authorized to repurchase up to $30 billion. As directed by the Federal Reserve, total net repurchases and common stock dividends in the first and second quartersbillion of 2021 were restricted and could not exceed the average of the Firm’s net income for the four preceding calendar quarters. On March 25, 2021, the Federal Reserve extended these restrictions through at least the second quarter of 2021.
On June 24, 2021, the Federal Reserve announced that the temporary restrictions on capital distributions would expire on June 30, 2021 as a result of the Firm remaining above its minimum risk-based capital requirements under the 2021 CCAR stress test. Effective July 1, 2021, the Firm is subject to the normal capital distribution restrictions provided under the regulatory capital framework. The Firm continues to be authorized to repurchase common shares under its existingpreviously approved common share repurchase program, previously approved by the Board of Directors.that was announced on December 18, 2020.



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Shares repurchased pursuant to the common share repurchase program during the sixthree months ended June 30, 2021,March 31, 2022 were as follows.
 Six months ended June 30, 2021Total number of shares of common stock repurchased
Average price paid per share of common stock(a)
Aggregate purchase price of common stock repurchases
 (in millions)(a)
Dollar value of remaining authorized repurchase
(in millions)(a)(b)
First quarter34,652,594 $144.25 $4,999 $25,001 
April12,599,276 $152.39 $1,920 $23,081 
May12,428,090 160.91 1,999 21,082 
June14,517,574 157.20 2,282 18,800 
Second quarter39,544,940 $156.83 $6,201 $18,800 
Year-to-date74,197,534 $150.95 $11,200 $18,800 
Three months ended March 31, 2022Total number of shares of common stock repurchased
Average price paid per share of common stock(a)
Aggregate purchase price of common stock repurchases
 (in millions)(a)
Dollar value of remaining authorized repurchase
(in millions)(a)(b)
January1,361,242 $146.91 $200 $11,352 
February2,240,240 151.74 340 11,012 
March14,505,509 135.09 1,960 9,052 
First quarter18,106,991 $138.04 $2,500 $9,052 
(a)Excludes commissions cost.
(b)Represents the amount remaining under the $30 billion repurchase program.
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
22
31.1
31.2
32
101.INS
The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.(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)
104Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).
(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, 2021,March 31, 2022, formatted in XBRL (eXtensible Business Reporting Language) interactive data files: (i) the Consolidated statements of income (unaudited) for the three and nine months ended June 30,March 31, 2022 and 2021, and 2020, (ii) the Consolidated statements of comprehensive income (unaudited) for the three and nine months ended June 30,March 31, 2022 and 2021, and 2020, (iii) the Consolidated balance sheets (unaudited) as of June 30, 2021,March 31, 2022, and December 31, 2020,2021, (iv) the Consolidated statements of changes in stockholders’ equity (unaudited) for the three and nine months ended June 30,March 31, 2022 and 2021, and 2020, (v) the Consolidated statements of cash flows (unaudited) for the three and nine months ended June 30,March 31, 2022 and 2021, and 2020, and (vi) the Notes to Consolidated Financial Statements (unaudited).
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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/ Elena Korablina
Elena Korablina
Managing Director and Firmwide Controller
(Principal Accounting Officer)

Date:August 2, 2021May 3, 2022





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